Project Management Professional (PMP) — PMI — Study guide

Project Management Professional (PMP) — PMI

Credential header

Credential: Project Management Professional (PMP)
Issuing body: Project Management Institute (PMI)
Jurisdiction: International/global
Level: Experienced professional — the de facto project-management credential for engineers running programs
Prerequisites: Four-year degree + 36 months of project leadership experience, or secondary diploma + 60 months of project leadership experience, plus 35 contact hours of formal project-management education (or CAPM certification)
Renewal: Every 3 years: 60 Professional Development Units (PDUs) under PMI's Continuing Certification Requirements (CCR) program, with talent-triangle minimums, plus a renewal fee

Exam format

180 questions (reported as 175 scored + 5 unscored pretest items; some sources report 170/10 — the unscored count is not officially published, so treat the exact split as unverified) in 230 minutes (3 hours 50 minutes), computer-based, with two 10-minute breaks.
Question types: multiple choice, multiple response, matching, hotspot, and limited fill-in-the-blank. Roughly half the exam is scenario-based.
Domains (current Examination Content Outline): People 42%, Process 50%, Business Environment 8%. About half the questions test predictive (waterfall) approaches and half test agile/hybrid — the exam deliberately mixes them, and many questions ask you to choose the right approach for the situation.
Passing score: PMI does not publish a fixed passing score; scoring is psychometrically set. Plan to be solidly above ~70% on quality practice exams.
⚠ Currency warning: some training providers report a PMI Examination Content Outline update effective July 2026 rebalancing the domains (reported ~33% People / 41% Process / 26% Business Environment) and adding sustainability and AI as examinable topics. This could not be confirmed against pmi.org in this pass — verify the current ECO on pmi.org before you build your study plan, and weight your effort toward the published split.

Domain 1 — People (42%): leading the team

Tasks: manage conflict, lead a team, support team performance, empower members and stakeholders, ensure adequate training, build the team, address impediments, negotiate agreements, collaborate with stakeholders, build shared understanding, engage virtual teams, define ground rules.

Core theories you must be able to apply, not just name:

Tuckman ladder: forming → storming → norming → performing → adjourning. A team in storming needs conflict management, not a new schedule.
Conflict resolution (in PMI's preferred order): collaborate/problem-solve (best, win-win) > compromise/reconcile > smooth/accommodate > withdraw/avoid > force/direct (worst, except in genuine emergencies).
Leadership styles: servant leadership is PMI's default ideal — the PM removes impediments and empowers the team. Know situational leadership (direct → coach → support → delegate as competence rises), and when each fits.
Motivation: Maslow's hierarchy, Herzberg's hygiene vs motivators (salary and working conditions are hygiene — their absence demotivates, their presence doesn't motivate; achievement and recognition are motivators), McGregor Theory X/Y, McClelland's achievement/affiliation/power.
Emotional intelligence: self-awareness, self-regulation, motivation, empathy, social skills. On situational questions, the emotionally intelligent answer is usually the collaborative, face-to-face one.

Domain 2 — Process (50%): delivering the work

The technical heart: scope, schedule, cost, quality, resources, communications, risk, procurement, stakeholder management, and integration — across predictive, agile, and hybrid life cycles.

Schedule. Critical path method (forward/backward pass, float), schedule compression (crashing = add resources, costs money; fast-tracking = overlap phases, adds risk), agile cadences (iterations, backlog refinement, velocity).

Cost — Earned Value Management. This is the most formula-dense area on the exam. Definitions first:

PV (Planned Value) = budgeted cost of work scheduled (BCWS). What you planned to have done.
EV (Earned Value) = budgeted cost of work performed (BCWP). What you've actually earned.
AC (Actual Cost) = actual cost of work performed (ACWP). What you actually spent.
BAC = Budget at Completion (total budget).

Variances and indices:

Cost Variance: CV = EV − AC (negative = over budget). Schedule Variance: SV = EV − PV (negative = behind schedule).
Cost Performance Index: CPI = EV / AC (<1 = over budget). Schedule Performance Index: SPI = EV / PV (<1 = behind schedule).
Estimate at Completion: EAC = BAC / CPI (typical: current variances continue) or EAC = AC + (BAC − EV) (atypical: variances were one-off) or EAC = AC + (BAC − EV)/(CPI × SPI) (both cost and schedule performance continue).
Estimate to Complete: ETC = EAC − AC. Variance at Completion: VAC = BAC − EAC. To-Complete Performance Index: TCPI = (BAC − EV) / (BAC − AC) — the efficiency you must achieve on remaining work to hit the budget.

Why the formulas work: EV is the common numeraire — it converts physical progress into budget dollars. Every index is just EV divided by the comparator (what you spent, or what you planned). Once you internalize "EV on top," the whole family is reconstructible under pressure.

Risk. Qualitative (probability/impact matrix) then quantitative: Expected Monetary Value EMV = P × I summed over risks; decision trees (fold back expected values); Monte Carlo for schedule/cost ranges. Risk responses: threats — avoid, transfer, mitigate, accept (escalate as needed); opportunities — exploit, share, enhance, accept.

Quality. Cost of quality (prevention + appraisal vs internal + external failure — prevention is cheapest); control charts (see the Six Sigma guide); the quality gurus at one line each: Deming (PDCA, 14 points), Juran (fitness for use, trilogy), Crosby (zero defects, conformance to requirements), Ishikawa (fishbone, 7 QC tools).

Procurement. Contract types by risk to buyer: Firm Fixed Price (FFP — seller bears cost risk) → Fixed Price Incentive Fee (FPIF) → Cost Plus Incentive Fee (CPIF) → Cost Plus Award Fee (CPAF) → Cost Plus Fixed Fee (CPFF) → Time & Materials (buyer bears most risk). Source selection, make-or-buy analysis.

Communications. Communication channels = n(n − 1)/2 for n stakeholders — the number of pairwise links, which is why adding people explodes coordination cost. Communication models (encode/transmit/decode, feedback, noise), methods (interactive/pull/push).

Agile specifics. Scrum roles (Product Owner owns the backlog and priorities; Scrum Master is a servant-leader; Developers build), events (sprint planning, daily scrum, sprint review, retrospective), artifacts (product backlog, sprint backlog, increment), Kanban (WIP limits, pull system), servant leadership, definition of done.

Domain 3 — Business Environment (8%): connecting to the organization

Compliance (regulatory, legal, ethical), benefits and value delivery (business case, benefits realization), organizational change management (Kotter's 8 steps; ADKAR: Awareness, Desire, Knowledge, Ability, Reinforcement), governance (phase gates, PMO types: supportive/controlling/directive), and external business environment factors.

Small domain, but it separates candidates on scenario questions about why the project exists — always tie decisions back to business value and compliance.

Key equations with units and assumptions

Communication channels: C = n(n − 1)/2, dimensionless; n = number of stakeholders. Assumes every pair is a potential channel.
CPI = EV / AC; SPI = EV / PV; both dimensionless. EVM assumes the baseline budget (BAC) was realistic and progress measurement (EV) is honest.
EAC (typical) = BAC / CPI, in currency units. Assumes current cost performance continues.
PERT expected duration: t_E = (t_O + 4·t_M + t_P) / 6, in time units; standard deviation σ = (t_P − t_O) / 6. Assumes beta-distributed activity times with the most-likely weighted 4×. (Note: PERT is a scheduling technique — do not confuse with the PTA formula below.)
Point of Total Assumption (FPIF contracts): PTA = [(Ceiling Price − Target Price) / share ratio] + Target Cost, currency units. Beyond PTA, the seller absorbs all overruns.
EMV = Σ (probability × impact), currency units; assumes risks are independent and probabilities are calibrated.

Worked examples

Example 1 — EVM full workup. A project has BAC = $500,000. At the status date: PV = $200,000, EV = $170,000, AC = $190,000.

CV = EV − AC = 170,000 − 190,000 = −$20,000 (over budget). SV = EV − PV = 170,000 − 200,000 = −$30,000 (behind schedule). CPI = 170/190 = 0.895. SPI = 170/200 = 0.85. The project is both over budget and behind schedule — the worst quadrant. EAC (typical) = BAC / CPI = 500,000 / 0.895 = $558,659. ETC = EAC − AC = 558,659 − 190,000 = $368,659. VAC = 500,000 − 558,659 = −$58,659 (forecast overrun). TCPI to hit BAC = (BAC − EV)/(BAC − AC) = (500,000 − 170,000)/(500,000 − 190,000) = 330,000/310,000 = 1.065 — the team must work at 106.5% cost efficiency from here on, which tells you the BAC is likely unachievable.

Example 2 — Communication channels. A project team grows from 8 to 12 stakeholders. Channels before: 8×7/2 = 28. After: 12×11/2 = 66. Adding 4 people (50% more stakeholders) more than doubles the communication paths (+136%). This is the quantitative argument for small teams and structured communication plans.

Example 3 — PERT. An activity has optimistic 4 days, most likely 7 days, pessimistic 16 days. t_E = (4 + 4×7 + 16)/6 = (4 + 28 + 16)/6 = 48/6 = 8 days. σ = (16 − 4)/6 = 2 days. So the activity is 8 ± 2 days (one sigma); there's roughly a 68% chance it finishes between 6 and 10 days, assuming the beta-distribution approximation holds.

Example 4 — Decision tree / EMV. You can build in-house (cost $80k, 70% chance of success worth $200k value, 30% chance of failure worth $0) or buy (cost $110k, 90% success at $200k value). In-house EMV = 0.7×200,000 + 0.3×0 − 80,000 = 140,000 − 80,000 = $60,000. Buy EMV = 0.9×200,000 − 110,000 = 180,000 − 110,000 = $70,000. Buy has the higher EMV — fold-back says buy, assuming the probabilities are honest.

Example 5 — Crashing decision. The critical path is 40 days; the contract penalty is $5,000/day beyond day 36. Crashing activity X costs $3,000/day crashed (max 3 days); crashing Y costs $6,000/day (max 5 days). Crash X first: 3 days × $3,000 = $9,000 to reach 37 days, then 1 more day needed — X is exhausted, so crash Y one day at $6,000. Total crash cost $15,000 vs penalty avoided 4 × $5,000 = $20,000. Net benefit $5,000 — crash. (Never crash non-critical activities; recheck the critical path after each crash.)

Standards cross-reference

PMBOK Guide (PMI) — the process framework reference; the exam is based on the ECO, not the PMBOK edition, but the vocabulary comes from it.
PMI Examination Content Outline (ECO) — the actual syllabus; verify the current version.
Agile Practice Guide (PMI) — the agile/hybrid source.
PMI Code of Ethics and Professional Conduct — aspirational and mandatory standards; tested in People-domain scenarios.
ISO 21500 / 21502 — international project-management guidance (context, not directly tested).

Pitfalls and exam strategy

Answer as the servant-leader, not the hero. When torn between "escalate to the sponsor" and "coach the team through it," the exam usually rewards empowering the team first — escalate only after direct action fails or for true governance issues.
Never choose the unethical shortcut. Any option involving hiding status, cutting safety/quality corners, or misrepresenting data is wrong, even if it "saves the project."
Predictive vs agile is a reading-comprehension test. "The customer cannot define requirements" → agile/hybrid. "Fixed-price government contract with full specs" → predictive. Match the approach to the situation described.
Memorize the EVM family by derivation, not rote. If you know EV/PV/AC and "EV on top," you can rebuild every formula in the exam. Rote memorizers blank on TCPI.
Time management: 230 minutes / 180 questions ≈ 77 seconds per question. Flag calculation questions and return to them; bank the fast situational ones first.
Change control is sacred. In predictive scenarios, the answer to an unauthorized change request is almost always "submit it through integrated change control" — never "just do it" or "reject it outright."
PDU talent triangle: 60 PDUs per cycle split across Ways of Working, Power Skills, and Business Acumen (minimum 8 per leg), plus up to 32 "Giving Back" — plan renewal from day one, not month 35.

Procurement math: contract types and the Point of Total Assumption

Contract-type questions reward knowing who bears cost risk. The spectrum, buyer-risk ascending: FFP (seller bears overruns) → FPIF → CPIF → CPAF → CPFF → T&M (buyer bears overruns). Two formulas matter:

FPIF final price: Final Price = Actual Cost + Target Fee + Share Ratio × (Target Cost − Actual Cost). If actual cost comes in below target, the seller keeps its share of the underrun as extra fee.
Point of Total Assumption (PTA): the cost at which the FPIF price hits the ceiling — beyond it, the seller absorbs every extra dollar (the contract behaves like FFP). PTA = [(Ceiling Price − Target Price) / buyer share] + Target Cost. Derivation: the price rises with the buyer's share of overruns: Price = Target Price + buyer_share × (Cost − Target Cost); set Price = Ceiling and solve for Cost.

Worked mini-example. Target cost $800,000, target fee $80,000 (target price $880,000), ceiling $1,000,000, 70/30 share (buyer/seller). PTA = [(1,000,000 − 880,000)/0.70] + 800,000 = (120,000/0.70) + 800,000 = 171,429 + 800,000 = $971,429. If actual cost lands at $950,000 (below PTA): final price = 950,000 + 80,000 + 0.30 × (800,000 − 950,000) = 1,030,000 − 45,000 = $985,000. If actual cost hits $990,000 (above PTA): price is capped at the $1,000,000 ceiling and the seller eats the rest.

Make-or-buy analysis: compare in-house cost (direct + indirect + opportunity cost) against purchase price plus procurement overhead and risk premium. The exam's trap: forgetting the risk side — buying transfers execution risk to the seller, which has a price.

Practice problems

BAC = $240,000; PV = $120,000; EV = $100,000; AC = $130,000. Compute CPI, SPI, and EAC (typical). Is the project over/under budget and ahead/behind schedule?
A project has 15 stakeholders. The sponsor adds 5 more. By how many channels does communication complexity increase?
Activity estimates: O = 6, M = 10, P = 20 weeks. Compute expected duration and standard deviation.
Contract: target cost $1,000,000, target price $1,150,000, ceiling price $1,300,000, 80/20 share ratio. Compute the Point of Total Assumption.
Risk A: 30% chance of $50,000 loss. Risk B: 10% chance of $200,000 loss. Which has the larger EMV, and what does that imply for prioritization?
A sprint team completes 32, 28, 35, and 33 story points in four sprints. What is the velocity to use for planning, and how many sprints for a 130-point backlog?

Answers: 1. CPI = 100/130 = 0.769 (over budget); SPI = 100/120 = 0.833 (behind schedule); EAC = 240,000/0.769 = $312,117. 2. Before: 15×14/2 = 105; after: 20×19/2 = 190; increase = 85 channels. 3. t_E = (6 + 40 + 20)/6 = 11 weeks; σ = (20 − 6)/6 = 2.33 weeks. 4. PTA = [(1,300,000 − 1,150,000)/0.8] + 1,000,000 = 187,500 + 1,000,000 = $1,187,500. 5. EMV_A = 0.3 × 50,000 = $15,000; EMV_B = 0.1 × 200,000 = $20,000 — B is larger; prioritize B's response plan despite its lower probability. 6. Average velocity = (32+28+35+33)/4 = 32 points/sprint; 130/32 = 4.06 → plan 5 sprints (or 4 with scope negotiation).

Original ETS reference writing, verified against public sources on 2026-09-30. Thin sourcing is flagged inline. Not legal advice — confirm current editions with the issuing body.

Project Management Professional (PMP) — PMI