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PMP · LESSON 2

Process: Planning, execution and improvement41% · 18 topics

Predictive work governs changes against agreed scope and baselines; adaptive work delivers incrementally and reprioritizes using feedback. A hybrid approach separates fixed constraints from uncertain areas. Distinguish possible future risks from present issues. Plan acceptance, quality and operational handover, and verify the evidence behind AI-generated estimates or records.

2.1Process: Planning, execution and improvement

Concept

Predictive work governs changes against agreed scope and baselines; adaptive work delivers incrementally and reprioritizes using feedback. A hybrid approach separates fixed constraints from uncertain areas. Distinguish possible future risks from present issues. Plan acceptance, quality and operational handover, and verify the evidence behind AI-generated estimates or records.

How it works / steps

  1. Choose an approach and define acceptance and dependencies.
  2. Manage changes, risks and issues distinctly.
  3. Compare evidence with plans and assign improvement actions.

Workplace example

A rollout can retain a fixed approval gate while iterating on screens and prompts. Test small increments and retain required controls. CPI = EV/AC and SPI = EV/PV, but ratios alone do not establish root causes.

Common confusions and exam tips

Reference links

2.2Choosing an approach and integrating plans

ECO 2026 II · 1

Concept

Predictive work benefits from stable requirements and baselines; adaptive work uses feedback and reprioritization. Hybrid delivery needs explicit interfaces between fixed and exploratory work. Integrate scope, timing, resources, costs and quality to expose dependencies and conflicts.

How it works / steps

  1. Analyze uncertainty and mandatory constraints.
  2. Choose an approach and decision interfaces.
  3. Check dependencies, gaps and continuing value.

Workplace example

A fixed building approval can coexist with iterative user-interface discovery.

Common confusions and exam tips

Mini quiz

Q1. UI requirements are uncertain but equipment approval has a fixed date. What fits?

  1. Release weekly while ignoring approval
  2. Do not record dependencies between teams
  3. Define interfaces between fixed gates and iterative validation
  4. Plan the exploratory and approval work separately and proceed without reconciling their dependencies or handoff conditions
Show answer and explanation

Answer: C Define interfaces between fixed gates and iterative validation

Hybrid planning specifies interfaces and handoff conditions between fixed constraints and discovery.

Q2. Added scope needs equipment and training. What should integrated planning examine?

  1. Estimate only feature-development effort and leave training, equipment and operational dependencies to departments later
  2. Effects on resources, cost, schedule and acceptance
  3. Only the number of requirement lines
  4. Only developer convenience
Show answer and explanation

Answer: B Effects on resources, cost, schedule and acceptance

Scope changes can affect several plans, which need coordinated assessment.

Reference links

2.3Requirements and traceability

ECO 2026 II · 2

Concept

Elicit requirements from intended outcomes and connect rationale, ownership, acceptance and deliverables. Traceability supports impact analysis and test completeness. Use observation and prototypes as well as interviews so quieter users and implicit needs are represented.

How it works / steps

  1. Understand use and purpose.
  2. Specify requirements and acceptance.
  3. Link deliverables, tests and changes.

Workplace example

Link a regulatory-report requirement to fields, processing and test evidence to locate change impacts.

Common confusions and exam tips

Mini quiz

Q1. A reporting field is added. How does traceability help?

  1. Record staff attendance
  2. Automatically cancel all approvals
  3. Give every requirement equal priority
  4. Identify affected design and tests
Show answer and explanation

Answer: D Identify affected design and tests

Links reveal impacts from requirements through deliverables and validation.

Q2. Users struggle to explain workflow needs. Which technique helps?

  1. Copy the oldest screen unconditionally
  2. Have the sponsor define every interaction alone
  3. Observe work and validate prototypes
  4. Declare that no requirements exist
Show answer and explanation

Answer: C Observe work and validate prototypes

Concrete work and prototype feedback uncover implicit requirements.

Reference links

2.4Scope decomposition and acceptance

ECO 2026 II · 2

Concept

A WBS decomposes deliverables into manageable work packages and helps expose scope gaps and overlap. Scheduling determines sequence separately. Quality verification and formal acceptance serve related but different purposes.

How it works / steps

  1. Define deliverables and boundaries.
  2. Decompose to estimable manageable units.
  3. Link ownership and acceptance.

Workplace example

If training is in scope, include materials, delivery and acceptance, not just software development.

Common confusions and exam tips

Mini quiz

Q1. Training is included in delivery but absent from the WBS. What is the direct problem?

  1. Missing scope
  2. Excessive quality inspection
  3. A different payment currency
  4. Too many organizational levels
Show answer and explanation

Answer: A Missing scope

The breakdown omits agreed work, risking missing estimates and responsibility.

Q2. What distinguishes a WBS from a schedule?

  1. Both list only department headcount
  2. A WBS eliminates all approvals
  3. The WBS fixes chronological execution order while the schedule only defines cost categories and departmental responsibility
  4. Work decomposition versus timing and sequence
Show answer and explanation

Answer: D Work decomposition versus timing and sequence

The WBS describes the work breakdown; schedules add dependencies, durations and dates.

Reference links

2.5Prioritizing outcomes and increments

ECO 2026 II · 3

Concept

Priorities consider benefits, delay cost, risk, dependencies and learning cost. Deliver a useful small increment to test assumptions early. Financial comparisons such as NPV depend on assumptions and should be considered with strategic and mandatory constraints.

How it works / steps

  1. Define value and assumptions jointly.
  2. Compare alternatives including dependencies and cost.
  3. Deliver increments and measure outcomes.

Workplace example

An initial 100 and one-year 121 at 10% yield NPV ten; forecast value is not proof of customer adoption.

Common confusions and exam tips

Mini quiz

Q1. Initial cost is 100, net cash flow 121 in one year and discount rate 10%. What is NPV?

  1. 21
  2. 11
  3. −10
  4. 10
Show answer and explanation

Answer: D 10

121/1.1−100=10; compare cash flows on a consistent time basis.

Q2. A high-value feature cannot work until a dependency is ready. What matters in prioritization?

  1. Hide the dependency from reporting
  2. Permanently prioritize low-value tasks unconditionally
  3. Value together with enabling dependencies
  4. Start based only on headline value
Show answer and explanation

Answer: C Value together with enabling dependencies

Realizable value requires enabling work and dependency assessment.

Reference links

2.6Backlogs and iterative feedback

ECO 2026 II · 3

Concept

Adaptive delivery refines work by value and clarifies iteration goals and completion conditions. Reviews inspect outcomes; retrospectives inspect ways of working. New requests during an iteration require discussion of goal impacts rather than unlimited work injection.

How it works / steps

  1. Share the objective and ordering.
  2. Select work consistent with capacity.
  3. Inspect outcomes and process separately.

Workplace example

Feedback from a review is ordered against value, dependencies and capacity before the next iteration.

Common confusions and exam tips

Mini quiz

Q1. A customer requests urgent functionality mid-iteration. What is appropriate?

  1. Silently remove completion conditions
  2. Discuss goal impacts and coordinate with the owner
  3. Replace current work in the order customer requests arrive without checking value, iteration goals or existing commitments
  4. Reject every customer request forever
Show answer and explanation

Answer: B Discuss goal impacts and coordinate with the owner

Discuss value and impact while protecting the goal and adjusting work through the appropriate authority.

Q2. What is an iteration review mainly for?

  1. Inspecting outcomes with stakeholders and learning direction
  2. Ranking people for punishment
  3. Review only internal task allocation and interpersonal concerns while leaving stakeholder feedback on the product out
  4. Only reflecting on internal work methods
Show answer and explanation

Answer: A Inspecting outcomes with stakeholders and learning direction

Reviews inspect the product and direction; retrospectives focus on work processes.

Reference links

2.7Resource allocation and leveling

ECO 2026 II · 4

Concept

Resource planning checks skills, quantities and availability. Leveling adjusts dates to capacity constraints and may extend completion. Smoothing normally uses available float without extending completion. Extra staff can also add coordination and learning effort.

How it works / steps

  1. Compare demand and real capacity.
  2. Locate conflicts and bottlenecks.
  3. Assess schedule, scope and sourcing options.

Workplace example

A specialist assigned 100% to two concurrent tasks needs a capacity-aware adjustment.

Common confusions and exam tips

Mini quiz

Q1. One specialist has two full-day tasks on the same day. What is needed?

  1. Resolve the resource conflict and adjust the plan
  2. Confirm both at 100% allocation
  3. Rename the person for one task
  4. Halve effort without evidence
Show answer and explanation

Answer: A Resolve the resource conflict and adjust the plan

Time cannot be double-used; assess priority, float and capable alternatives.

Q2. What can resource leveling cause?

  1. Every resource constraint disappearing
  2. Every dependency disappearing
  3. Automatically lower quality standards
  4. A later finish date
Show answer and explanation

Answer: D A later finish date

Capacity-driven date adjustments may change the critical path and finish.

Reference links

2.8Sourcing and contract selection

ECO 2026 II · 5

Concept

Fixed price, cost reimbursement and time-and-materials allocate uncertainty differently. Select based on scope clarity, market conditions, oversight and change terms. Fixed price does not remove the buyer’s acceptance, scope or dependency risks.

How it works / steps

  1. Define sourcing scope and uncertainty.
  2. Choose contract, selection criteria and oversight.
  3. Agree change, acceptance and payment terms.

Workplace example

For exploratory analysis, assess outcome uncertainty and spending controls before fixing the contract structure.

Common confusions and exam tips

Mini quiz

Q1. Scope and acceptance are clear and price certainty matters. Which is a basic candidate?

  1. Daily payments with no deliverable definition
  2. Fixed-price contract
  3. Unlimited reimbursement of all costs
  4. An oral request with no terms
Show answer and explanation

Answer: B Fixed-price contract

Fixed price can fit clear scope, but buyer-side change and acceptance risks remain.

Q2. Experts are engaged short term on time-and-materials. What supports cost control?

  1. Check rates, caps and actual usage
  2. No oversight because rates exist
  3. Keep no work records
  4. Approve all overtime unconditionally
Show answer and explanation

Answer: A Check rates, caps and actual usage

Cost depends on actual quantities, so caps, records and output checks matter.

Reference links

2.9Supplier delivery and negotiation

ECO 2026 II · 5

Concept

After award, track outputs, payment, quality, timing and obligations. Address delays using evidence and terms rather than threats alone. Negotiations need authority, objectives and alternatives, followed by a formal record of agreement.

How it works / steps

  1. Compare performance with agreed terms.
  2. Evaluate causes and impacts together.
  3. Take suitable corrective, change or contractual action.

Workplace example

For supply delays, agree a recovery plan, downstream impacts and follow-up points rather than accepting a verbal date alone.

Common confusions and exam tips

Mini quiz

Q1. A supplier misses an interim delivery. What should the PM do first?

  1. Check terms and performance, then assess cause and impact
  2. Stop all payment without checking facts
  3. Wait until the overall contract due date before evaluating the missed interim obligation or discussing a recovery plan
  4. Advance all dates without evidence
Show answer and explanation

Answer: A Check terms and performance, then assess cause and impact

Establish obligations and evidence before selecting recovery or contractual action.

Q2. A procurement negotiation requests a guarantee beyond the PM’s authority. What is appropriate?

  1. Promise it unilaterally to preserve the deal
  2. Agree without records
  3. Accept the guarantee to keep the negotiation moving and seek the necessary authorization after the commitment is made
  4. Reserve the commitment and consult the authority
Show answer and explanation

Answer: D Reserve the commitment and consult the authority

Respect decision boundaries and obtain formal authority before committing.

Reference links

2.10Estimates, budgets and reserves

ECO 2026 II · 6

Concept

State estimate scope, assumptions, accuracy and basis. Distinguish contingency for identified risks from management reserve for unforeseen work. Contingency normally belongs in the cost baseline, management reserve outside it; check authority before use.

How it works / steps

  1. Estimate from work and assumptions.
  2. Separate risks and reserve types.
  3. Track approved budget and expenditure.

Workplace example

Work estimates 100, contingency ten and management reserve five give a baseline of 110 and total budget 115 in a conventional structure.

Common confusions and exam tips

Mini quiz

Q1. Work is estimated at 100, contingency ten and management reserve five. What is the conventional cost baseline?

  1. 115
  2. 105
  3. 110
  4. 100
Show answer and explanation

Answer: C 110

The baseline includes work and contingency, totaling 110; management reserve sits outside.

Q2. An estimate used one analogous project. More detail is now available. What should happen?

  1. Book all reserves as profit
  2. Refine accuracy and assumptions using new information
  3. Freeze the first number forever without basis
  4. Delete the estimate basis
Show answer and explanation

Answer: B Refine accuracy and assumptions using new information

Progressive information supports refinement, coordinated with applicable controls.

Reference links

2.11Earned value and forecast assumptions

ECO 2026 II · 6, 9

Concept

EV values completed work at budget rates, PV values planned work, and AC is actual cost. CPI=EV/AC and SPI=EV/PV; CV=EV−AC and SV=EV−PV. Forecast formulas depend on remaining-work assumptions; SPI alone does not determine calendar delay. Practice case: At one status date a data-platform project has PV150, EV120, AC160 and BAC400 in consistent monetary units. Scope is unchanged. The PM must explain performance and forecast cost.

How it works / steps

  1. Align PV, EV and AC to one status date.
  2. Calculate indicators and investigate causes.
  3. Choose forecasts consistent with remaining work.

Workplace example

If current cost efficiency continues, EAC=BAC/CPI. If remaining work returns to planned efficiency, EAC=AC+(BAC−EV).

Common confusions and exam tips

Mini quiz

Q1. What is CPI for this project?

  1. 0.80
  2. 1.25
  3. 1.33
  4. 0.75
Show answer and explanation

Answer: D 0.75

EV/AC=120/160=0.75, indicating cost exceeds the budgeted value of completed work.

Q2. What is SPI for this project?

  1. 1.25
  2. 1.33
  3. 0.80
  4. 0.75
Show answer and explanation

Answer: C 0.80

EV/PV=120/150=0.8, behind planned value but not a direct calendar-delay measure.

Reference links

2.12Quality costs and cause analysis

ECO 2026 II · 7

Concept

Separate prevention, appraisal and internal/external failure costs. Improve causes rather than relying only on extra inspection. Pareto charts help prioritize, fishbones organize hypotheses, and control charts assess stability.

How it works / steps

  1. Define quality needs and defect evidence.
  2. Form and test causal hypotheses.
  3. Measure corrections and update the process.

Workplace example

A repair after delivery is external failure cost; examine whether review or training can prevent recurrence.

Common confusions and exam tips

Mini quiz

Q1. A defect is repaired at the customer after delivery. What type of quality cost is it?

  1. Prevention
  2. Appraisal
  3. Internal failure
  4. External failure
Show answer and explanation

Answer: D External failure

Failure after delivery is external; rework before delivery is internal failure.

Q2. The same defect keeps recurring. What is needed beyond more inspection?

  1. Make the reported count look smaller
  2. Relax acceptance without approval
  3. Analyze causes and improve the process
  4. Only save defect records under new names
Show answer and explanation

Answer: C Analyze causes and improve the process

Address causes through prevention and process change instead of cosmetic reporting.

Reference links

2.13Testing and user acceptance

ECO 2026 II · 7

Concept

Link tests to requirements, conditions, evidence and decision owners. After a fix, check the corrected behavior and relevant regression effects. Agree business scenarios for user acceptance and keep failures visible even near deadlines.

How it works / steps

  1. Derive test conditions from requirements.
  2. Record evidence and correct defects.
  3. Have the authorized party decide acceptance.

Workplace example

After changing invoice calculation, check rounding and existing reports as well as the target rate.

Common confusions and exam tips

Mini quiz

Q1. Which test checks whether a fix broke related existing functions?

  1. Regression testing
  2. Requirements elicitation
  3. Supplier bidding
  4. Contract closure
Show answer and explanation

Answer: A Regression testing

Regression testing checks unintended effects on existing behavior.

Q2. No one owns the acceptance decision. What should be clarified?

  1. Only the PM’s preference
  2. The next advertisement owner
  3. A way to mark every result passed
  4. Acceptance authority and criteria
Show answer and explanation

Answer: D Acceptance authority and criteria

Define authority, criteria and required evidence so a valid decision is possible.

Reference links

2.14Dependency networks and critical paths

ECO 2026 II · 8

Concept

Schedules combine dependencies, durations, resources and constraints. The longest dependent path controls completion; total float is usually LS−ES or LF−EF. Multiple critical paths and changing constraints mean speeding only noncritical work may not shorten completion.

How it works / steps

  1. Map dependencies and durations.
  2. Calculate forward and backward passes.
  3. Review constraints and float as conditions change.

Workplace example

Paths of 3+5 and 4+2 days give completion in eight days, with two days’ float on the second in a simple model.

Common confusions and exam tips

Mini quiz

Q1. Two parallel paths take 3+5 days and 4+2 days; both must finish. What is duration?

  1. Six days
  2. 14 days
  3. Five days
  4. Eight days
Show answer and explanation

Answer: D Eight days

The longer path is eight days and controls completion.

Q2. Parallel paths take eight and six days and both must finish. What is the six-day path’s float with no other constraints?

  1. Six days
  2. Eight days
  3. Two days
  4. Zero days
Show answer and explanation

Answer: C Two days

Eight-day completion minus six-day path equals two days.

Reference links

2.15Three-point estimates and compression

ECO 2026 II · 8

Concept

Three-point estimates make uncertainty visible. The PERT mean is (O+4M+P)/6. Crashing adds cost to reduce duration; fast tracking overlaps suitable work. Both require assessment of quality, feasibility and rework risk.

How it works / steps

  1. Check estimate assumptions.
  2. Confirm the activity constrains completion.
  3. Compare incremental cost and risk.

Workplace example

Reducing five days/cost100 to three days/cost160 has a crash slope of 30 per day.

Common confusions and exam tips

Mini quiz

Q1. O=2, M=5 and P=8 days. What is the PERT mean?

  1. 15 days
  2. Five days
  3. Four days
  4. Six days
Show answer and explanation

Answer: B Five days

(2+4×5+8)/6=5.

Q2. Normal duration/cost are five/100 and crash values three/160. What is cost per day saved?

  1. 30
  2. 20
  3. 60
  4. 80
Show answer and explanation

Answer: A 30

(160−100)/(5−3)=30, assuming linear compression.

Reference links

2.16WIP, flow and forecasting

ECO 2026 II · 8, 9

Concept

WIP limits favor finishing rather than merely starting work. In a stable system, Little’s law relates average WIP, throughput and cycle time. Velocity uses team-specific estimation units and should not become a cross-team individual ranking. Practice case: A support-improvement workflow has average WIP12 and throughput four items/day within the same boundary. The observation period is stable with balanced average inflow/outflow. The PM also sees a developing inspection queue.

How it works / steps

  1. Align boundaries, periods and units.
  2. Inspect bottlenecks and variation.
  3. State forecast assumptions and update.

Workplace example

Helping downstream completion instead of starting more items can reduce waiting.

Common confusions and exam tips

Mini quiz

Q1. What is average cycle time in this stable system?

  1. Four days
  2. Eight days
  3. 48 days
  4. Three days
Show answer and explanation

Answer: D Three days

Average WIP12 divided by throughput four/day gives three days, using consistent boundaries.

Q2. If WIP falls to eight with unchanged stable throughput, what is modeled average cycle time?

  1. Four days
  2. Eight days
  3. Two days
  4. Three days
Show answer and explanation

Answer: C Two days

8/4=2 days, assuming the system stays stable and throughput holds.

Reference links

2.17Status metrics and trustworthy records

ECO 2026 II · 9

Concept

Align status dates, definitions and sources. Spending or starts alone do not demonstrate completion. Tailor artifacts and manage approved versions, history and access. Concealing unfavorable evidence prevents informed correction.

How it works / steps

  1. Define decisions and metrics.
  2. Verify source data and versions.
  3. Communicate variance, forecasts and decisions.

Workplace example

Do not equate 80% spent with 80% done; use verified output evidence.

Common confusions and exam tips

Mini quiz

Q1. 80% of the budget is spent. Can completion be declared 80%?

  1. Completion always equals spending
  2. Separate output evidence is needed
  3. Spending percentage alone is enough
  4. More spending always means ahead of schedule
Show answer and explanation

Answer: B Separate output evidence is needed

Expenditure is input; completion needs evidence such as earned work or acceptance.

Q2. Two departments report progress at different status dates. What is needed before combining?

  1. Align dates and metric definitions
  2. Only take the simple average
  3. Use only favorable numbers
  4. Hide dates and compare
Show answer and explanation

Answer: A Align dates and metric definitions

Different times or meanings can invalidate an integrated assessment.

Reference links

2.18Closure and operational readiness

ECO 2026 II · 10

Concept

Closure includes acceptance, contractual/financial reconciliation, knowledge transfer and resource release. Handover requires operational ownership, monitoring, support, recovery and training readiness, not just file transfer. Assign continuing benefit measurement explicitly.

How it works / steps

  1. Check completion and transition criteria.
  2. Transfer open items, evidence and ownership.
  3. Reconcile contracts, finances and resources.

Workplace example

Check incident ownership, contact and recovery with operations rather than treating go-live as sufficient handover.

Common confusions and exam tips

Mini quiz

Q1. Deliverables are complete but operators cannot handle incidents. What takes priority?

  1. Delete unresolved items
  2. Remove support contacts
  3. Check operational readiness and transfer
  4. Release everyone after sending files only
Show answer and explanation

Answer: C Check operational readiness and transfer

Handover requires operational capability, not just finished artifacts.

Q2. A project is terminated early. What is appropriate?

  1. Disband without notifying stakeholders
  2. Reconcile reasons, contracts, finances and lessons
  3. Delete all records immediately
  4. Falsely record acceptance and pay everything
Show answer and explanation

Answer: B Reconcile reasons, contracts, finances and lessons

Termination still requires handling obligations, preserving knowledge and formal closure.

Reference links

Lessons are written by this site based on public information and do not guarantee exam content. Product specifications change, so check the latest information at the reference links.

Notes (unofficial, original questions, no pass guarantee)