thmbtg - Questions
What is value analysis?
Finding a less costly way to complete the work without affecting the quality.
What is Planning Package ?
A WBS component that is below the control account that has a well-defined work content but does not yet have a detailed schedule.
TT of Collect Requirements
F FIGO GPQ: - Focus Group - Facilitated Workshop - Interview - Group Creativity techniques - Observation (Job Shadowing) - Group Decision making technique - Prototypes - Questionnaire and Survey
1. What are the 2 key tools and techniques of Acquire Project Team?
Negotiating with Fn'l Manager and Pre-assignment
What is Secondary Risk ?
New risk created by the implementation of selected risk response strategies
24. What is Ouchi's Theory Z?
employees trust management (associated with quality circles)
4. When it comes to changes, the project manager's attention is BEST given to: A. Making changes B. Tracking and recording changes C. Informing the sponsor of changes D. Preventing unnecessary changes
Answer D Project managers should be proactive. The only proactive answer here is preventing unnecessary changes.
What is Crashing TT ?
- Add more resources (time, personnel) in order to decrease activity's duration (more personnel, over time, ...) - Increase costs
Type of risk ?
- Threat - Opportunity
Activity on Arrow (AOA)
...
Dictatorship
A decision method where only one individual makes the decision for the group.
Work Breakdown Structure (WBS)
A deliverables-oriented breakdown of the project scope.
What does the acronym RACI commonly stand for in project management? A. Responsible, Accountable, to be Consulted, to be Informed B. Remote, Attached, Connected, Integrated C. Risk Analysis and Caution Initiative D. Randomly Accessible Cashflow Information
A. Responsible, Accountable, to be Consulted, to be Informed PMBOK® Guide 4th Edition, p 221
EAC (Estimate at Completion -2)
AC + ETC (actual cost plus estimate to complete)
Corrective action
ANY action taken to bring the expected future project performance in line with the Project Management Plan (actual deviations from the plan)
Which Risk Response used for both threat and opportunity ?
Accept
44. If the buyer and seller cannot reach agreement on a claim it may be handled by:
Alternative dispute resolution (ADR)
What is Working Capital ?
Amount of money the company has available to invest (including investment in projects)
7. Who has the MOST power in a projectized organization? A. The project manager B. The functional manager C. The team D. They all share power
Answer A In a projectized organization, the entire company is organized by projects, giving the project manager the most power.
19. A market demand, a business need, and/or legal requirement are examples of: A. Reasons to hire a project manager B. Reasons projects are initiated C. Reasons people or businesses become stakeholders D. Reasons to sponsor a project
Answer B These are all reasons projects are initiated.
If earned value (EV) = 350, actual cost (AC) = 400, planned value (PV) = 325, what is cost variance(CV)? A. 350 B. -75 C. 400 D. -50
Answer D Explanation CV = EV - AC
Which is normally not regarded as an element of cost of quality? A. Prevention costs B. Maintenance cost C. Appraisal costs D. Failure costs
B. Maintenance cost PMBOK® Guide 4th Edition, p 195
Excuting ( Project Procurement Mgt) 12.2
Conduct Procurement
41. A Fax communication is considered to be ___________ and an e-mail is considered to be ___________?
Formal written and Informal Written
What is Risk Reassessment (TT) ?
In Monitor and Control Risk process: - Identify new risks - Reassess current risks - Close outdated risks
Nominal group technique
In this approach, participants are encouraged to generate as many ideas as possible which are then ranked by a voting process.
Monitoring Control ( Project Integration mgt ) 4.4
Monitor and control project work
Which is not a point used for three-point estimation? A. Optimistic estimate B. Most likely estimate C. Budget estimate D. Pessimistic estimate
Planning Answer: C. Budget estimate Reference: PMBOK® Guide 4th Edition, page 150.
What is OPA ?
Processes and Procedure: - Organizational standard process - Guidlines, Instructions, Criterias - Templates - Organization Communication requirements - Financial Control Procedures - Issue, defect, change, risk control/management procedures Corporate Knowledge Base - Database on Process measurement, Issue/defect management, finance - Project files - Historical information and lesson learned - Configuration Management
Who has the authority to change the contract ?
Procurement manager (contract administrator)
Fixed Price Incentive Fee (FPIF) ?
Profits (or financial incentives) can be adjusted based on the seller meeting specified performance criteria
39. What is Single Source?
Selecting a preferred Seller from several potential sellers
What is Stakeholder Management Strategy ?
define an approach to increase the support and minimize negative impacts of stakeholders throughout the entire project life cycle. Includes: - Key stakeholders who can significantly impact the project - Level of participation in the project desire for each identified stakeholder - Stakeholder groups and their management --> Stakeholder analysis matrix
Executing ( Project Integration Mgt) 4.3
Direct and managme Project excution
What is SWOT analysis (TT)?
- Strengths - Weaknesses - Opportunities - Threats
Type of Cost
- Variable vs Fixed - Direct vs Indirect
Monitoring control ( Project Procurement ) 12.3
Administer Procurement
What is a Management Reserve
An amount of time or money set aside to cover unforeseen risks
Project assumptions
Anything that is held to be true but not proven to be true.
VAC (Variance at Completion)
BAC - EAC (Budget at Completion - Estimate at Completion)
47. What is the key tool and technique of Verify Scope?
Inspection
Executing ( Project Human resource Mgt) 9.4
Manage project team
8. What % of cost of quality is management responsibility?
85%
WBS Dictionary
A WBS comparison document that defines all of the characteristics of each element within the WBS.
Unanimity
A group decision method where everyone must be in agreement.
Sunk Cost
Already spent. Do not consider sunk cost when making future project decisions
What does a finish-to-start relationship mean?
An activity must finish before it's successor can start
TT of Plan Quality ?
CCCB SPADF: - Cost-benefit analysis - Cost of quality - Control charts - Benchmarking - Statistical sampling - Proprietary quality management methodologies - Design of experiments - Additional quality planning tools - Flowcharting
Cost Performance Index (CPI)
CPI=EV/AC
48. Which Decision-Making or Leadership Style is also called random manager?
Coin Flip
SV (Schedule Variance)
EV - PV (earned value - planned value)
Gold Plating ?
Give customer extra out of project scope
19. What diagram shows visual display of frequency distribution at a point in time?
Histogram
16. Qualified sellers lists can be developed from where?
Organizational Process Assets
TT of Acquire Project Team ?
PravNAV: - Pre-assignment - Negotiation - Acquisition - Virtual Team
What is Requirement Management Plan ?
Requirement Management Plan documents how requirements will be analyzed, documented and managed throughout the project.
30. What are the 2 Key tools & techniques for Risk Monitoring and Control?
Risk Audits and Reassessments
What does a benefit cost ratio of 2.5 mean?
The benefits are 2.5 times the costs
Active observation
The observer interacts with the worker to ask questions and understand each step of the work being completed; in some instances the observer could serve as an assistant in doing the work.
50. What is war room?
The room the co-located team meets in is called a war room.
Cost Contract
The seller receives no fee (profit)
19. What is Parkinson's Law?
Work expands to fill the time available
9. What is the definition of Opportunity Cost?
economic value of next best alternative given up
Planning ( Project Risk Mgt) 11.4
perform Quantative Analysis
Who are stakeholders?
persons or organizations who are actively involved in the project or whose interests may be positively or negatively affected by the performance or completion of the project
What is Organization Breakdown Structure ?
shows responsibilities by department
Project scope management plan
A subsidiary of the Project Management Plan which controls how the scope will be defined, how the project scope will be created, how the WBS will be created, how scope verification will proceed, and how the project scope will be controlled throughout the project.
ITTOS of Estimate Cost ?
Inputs: - Scope baseline (what to be estimated) - Project Schedule (key input, activities, assigned resources and when activity to occur) - Risk Register - Human resource plan (reward system, labor rates) - OPA EEF Outputs: - Activity Cost estimates - Basis of Estimates - PD Updates TT: APE BP CR TV
Purpose of Procurement Management ?
includes the processes necessary to purchase or acquire products, services or results needed from outside the project team
What is Data Gathering and Representation Techniques (TT) ?
includes: - Interviewing - Probability distribution
What is project management
Application of knowledge, skills, tools, and techniques to project activities to meet project requirements. It is accomplished through five overarching process groups (Initiating, Planning, Executing, Monitoring and Controlling, and Closing)
13. What is an example of a Comparative Approach?
Benefit-Cost Ratio (BCR)
What is the benefit of portfolio management
Better alignment of projects and programs with organizational objectives, with the goal being to maximize the value of the entire portfolio
The types and quantities of resources required are calculated in what part of time management?
Estimate Activity Resources
16. What is the key input to Identify Stakeholders?
Project Charter
Who does the following description refer to: The person, or group, providing the financial resources for the project
Project Sponsor
What are the organizational characteristics of a projectized structure
Project manager authority: high to almost total Resource availability: high to almost total Budget controlled by: Project Manager Role of project manager: full-time Project management admin staff: full-time
What does the Estimate at Completion tell you?
What we currently expect the TOTAL project to cost.
The compilation of all the phases within a project equates to ____________________. A. Project life cycle B. Product life cycle C. Project completion D. Project processes
A. The project life cycle is comprised of all of the project phases within a project. B describes the life of many projects that create a unique product or service. C and D are incorrect since they do not accurately describe the project life cycle.
28. What are the leadership styles in the Leadership Table?
* Directing (Used during Initiating Phase) * Facilitating & Coaching (Used during Planning, Execution, Controlling) * Supporting (Used during Closing)
Vendor bid Analysis ?
- Analyze cost base on the responsive bids from qualified vendors
Terms in WBS
- Control account - Planning packages - Work packages - Code of account identifier
Other Project Selection Terms
- Economic Value Added (EVA) - Opportunity Cost - Sunk Costs - Law of Diminishing Returns - Working Capital - Depreciation
What is Strategies for positive risks or opportunities (TT) ?
- Exploit: add work or change PMP to make sure the opportunity will occur - Share: allocate some or all of the ownership of the opportunity to a third party who is best able to capture the opportunity - Enhance:increase the probability/impact of an opportunity - Accept: do nothing
Consequence of Excessive Decomposition ?
- Non-productive management effort - Inefficient use of resources - Decreased efficiency in performing the work
What is Contingent response strategies (TT) ?
- Responses used only if risk occurs
Which Roles undermining the Project Management Implementation ?
- The Aggressor: criticize everybody and everything - The Dominator: always try to take over - The Devil's Advocate: always find faults
TT of Conduct Procurement ?
APE BP II: - Advertising (search) - Proposal evaluation technique (evaluate) - EJ - Bidder conference (distribute) - Procurement negotiations (negotiate) - Internet search (search - Independent estimates (evaluate)
TT of Estimate Activity Resources
APE BP: - Alternative analysis - Published estimating data - EJ - Bottom-up estimate - Project Management Software
TT of Estimate Activity Durations ?
APE TR: - Analogous estimates - Parametric estimates - EJ - Three-points estimates (PERT) - Reserve analysis
24. Difference between agreement and contract?
Agreement is not legally binding but a contract is legally binding.
Acquire Project Team
An executing process focused on getting the right people to work on the project at the right time. Acquire Project Team is executed according to the human resource plan.
Company procedures require the creation of a lessons learned document. Which of the following is the BEST use of lessons learned? A. Historical records for future projects B. Planning record for the current project C. Informing the team about what the project manager has done D. Informing the team about the project management plan
Answer A Explanation Notice that this question asks about the use of a tool of project management. Many people can learn from a book what a lessons learned document is, but questions like this can more readily be answered if you actually use the tool and know from experience its value. Ask yourself about the other tools of project management. Why are they beneficial? The BEST use of lessons learned is choice A. There are other tools that are better for accomplishing the things listed in the other choices.
You have just discovered an error in the implementation plan that will prevent you from meeting a milestone date. The BEST thing you can do is: A. Develop options to meet the milestone date. B. Change the milestone date. C. Remove any discussion about due dates in the project status report. D. Educate the team about the need to meet milestone dates.
Answer A Explanation Only choice A solves the problem. Choice B is unethical. Choice C violates the rule to report honestly.
Which of the following is an example of a parametric estimate? A. Dollars per module B. Learning bend C. Bottom-up D. CPM
Answer A Explanation Parametric estimates use a mathematical model to predict project cost or time.
Which project management process group normally takes the MOST project time and resources? A. Planning B. Design C. Integration D. Executing
Answer D Explanation Doing the actual work will normally take the MOST project time and resources.
Project constraints
Anything that limits the project manager's options.
Of the following management skills, which will a project manager use most? A. Leading B. Communication C. Influencing the organization D. Negotiations
B. Communication is the key general management skill a project manager will use the most. Choices A, C, and D are necessary, but communication accounts for the majority of a project manager's time
You are assigned as the project manager to a project which had a one-time cost variance in the past caused by unexpected rework which has meanwhile been finished. You perform earned value analysis and get the following results: EV: 250,000; PV: 200,000; AC 275,000 BAC is 500,000. What is right? A. EAC = 550,000 B. EAC = 525,000 C. EAC = 500,000 D. EAC = 425,000
B. EAC = 525,000 PMBOK® Guide 4th Edition, p 184
EAC (Estimate at Completion)
BAC / CPI (budget at completion divided by cost performance index)
What is the formula for estimate at completion?
BAC/Cumulative CPI
What is Baseline ?
Baseline = Original Plan + Approved Changes
At which point is the risk of failure the least, but the consequence of failure the highest? A. During the early stages B. During the middle stages C. During the final stages D. Risk of failure is even across all project phases
C. As the project moves closer to completion, the likelihood of risk diminishes. Choices A, B, and D are incorrect in regard to risk assessment in a project.
Ron, the project manager, expects formal communications for change requests. Of the following, which is most likely not an example of formal communication? A. Reports B. Oral presentations C. E-mail D. Team meetings
C. Of all the choices presented, answer C is most likely not a formal communication. Choices A, B, and D are likely to be formal communications within a project.
What is defined by control limits? A. A measuring instrument solely used to describe process capability. The process is found capable if the ±3 sigma range is exceeded by not more than 0.3% of a tested sample lot. B. The limits of the six sigma area on either side of a control chart to plot measured values; data found outside the area are out of specification and can lead to rejection of an entire batch. C. The area consisting of typically three standard deviations on either side of a mean value of a control chart to plot measured values found in statistical quality control D. The area consisting of typically three standard deviations on either side of a mean value of a control chart to plot measured values found in quality assurance
C. The area consisting of typically three standard deviations on either side of a mean value of a control chart to plot measured values found in statistical quality control PMBOK® Guide 4th Edition, p 430
TT of Perform Quality Control ?
CCFRHPS SIA - CCFRHPS: Ishikawa's 7 basic tools of quality - Statistical sampling - Inspection - Approved change requests review
Closing ( Project integration Mgt) 4.6
Close project or phase
17. Proposals are often separated into technical (approach) and commercial (price) sections in which process?
Conduct Procurements
7. Bidder's Conference is a tool and technique of?
Conduct Procurements
Which Project Procurement Management process occurs in the Executing Process Group
Conduct Procurements
Purpose of Risk Management ?
Conduct: - Risk management planning - Risk identification - Risk analysis - Risk response planning - Risk Monitoring - Risk Control
39. What are different types of conflict management techniques?
Conflict management techniques are Withdrawing/Avoiding, Compromising, Smoothing, Forcing, Collaborating and Confronting/Problem Solving,
27. What does Attribute data measure?
Conformance or Non Conformance (Yes/No)
46. What conflict management technique is considered to the best method to use?
Confronting
2. What are Mathematical Models also known as?
Constrained Optimization Method
What is Business Case ?
Contains: - Business need - Why the project was selected - How it fits into the organization's strategic goals
48. In what process would you do EVM?
Control Costs
What schedule network analysis technique uses buffers?
Critical Chain
23. "Do it right the first time. The cost of nonconformance is high" is a quote from which quality expert?
Crosby
You are about to hold a bidder conference, and a potential seller offers you great tickets to a baseball game for your favorite team. What should you do? A. Go to the game with the seller but avoid talking about the contract B. Go to the game with seller and discuss the contract C. Go to the game, but make sure not to let him buy you anything because that would be a bribe D. Politely refuse the tickets
D You have to refuse the tickets even if the game sounds like a lot of fun. The tickets amount to a bribe, and you shouldn't do anything that might influence your decision in awarding your contract.
You overhear someone on your team using a racial slur. This person is a critical team member and you are worried that if they leave your company it will cause project problems. What should you do? A. Pretend you didn't hear it so that you don't cause problems B. Report the team member to his boss C. Bring it up at the next team meeting D. Meet in private with the team member and explain that racial slurs are unacceptable
D You should make sure that your team always respects other people.
During a project, earned value analysis is performed, resulting in the following numbers: EV: 523,000; PV: 623,000; AC: 643,000. Which results are correct? A. CV: +120,000; SV: +100,000 B. CV: +100,000; SV: +120,000 C. CV: -100,000; SV: -120,000 D. CV: -120,000; SV: -100,000
D. CV: -120,000; SV: -100,000 PMBOK® Guide 4th Edition, pp 181-183
What is the difference between a standard and a regulation? A. Standards are mandatory; regulations are not B. Standards are optional; regulations are not C. Regulations and standards are essentially the same D. Regulations are mandatory; standards may be seen as guidelines
D. Of all the choices presented, D is the best answer since regulations are mandatory requirements. Choice A is incorrect because it does not accurately describe regulations and standards. Choice B is incorrect since regulations are not optional, they are mandatory. C is incorrect standards and regulations are not the same.
An estimation has been made that the construction of a residential home will cost a certain amount per square foot of living area. This is an example of what type of estimating? A. Analogous estimating B. Bottom-up estimating C. Top-down estimating D. Parametric estimating
D. Parametric estimating PMBOK® Guide 4th Edition, p 439
18. Components of decision tree?
Decision tree components are square - decision node, circle- chance node and triangle - end of branch.
Just in Time (JIT)
Decreasing inventory to close to zero by have suppliers deliver raw materials just when needed --> must have high level of quality
Purpose of Define Activities process ?
Define Activities is the process of identifying the specific actions to be performed to produce the project deliverables.
22. Who was responsible for Plan-Do-Check-Act Cycle modification?
Deming
How would you best describe the aspirational requirement related to fairness
Demonstrating complete transparency in your decision making process
Which Project Integration Management process occurs in the Executing Process Group
Direct and Manage Project Execution
Which project management process involves doing the work outlined in the project management plan to achieve the project goal
Direct and Manage Project Execution
4. Project Records can use a file classification system and are used through out the project as part of?
Distribute Information
Responsibility for Quality
Entire organization has responsibilities relating to quality
Planning ( Project Time mgt) 6.3
Estimate Activity Resource
A difference between a statement of work and a scope statement is: A. The statement of work is prepared by the customer while the scope statement is developed by the project management team. B. The statement of work focuses on physical or technical matters, while the project scope statement focuses on a functional view. C. The project scope statement is in most projects developed before the statement of work is written. D. A project scope statement can become a contract document; a statement of work cannot.
Executing Answer: A. The statement of work is prepared by the customer while the scope statement is developed by the project management team. References: PMBOK® Guide 4th Edition, pages 75, 115.
What are sunk costs?
Expended costs. Not to be considered.
Present Value (PV)
FV / (1 + r) to the n-th power
3. What are the key outputs of Close Project or Phase?
Final product, service or result transition
What are outputs for the close project or phase process?
Final product, service or result transition Organizational process assets update
Total Quality Management (TQM)
Finding way to continuously improve quality at every level of organization
What do mandatory standards describe
Firm requirements (disciplinary action possible)
Value Analysis
Focus to find a less costly way to do the same work
58. What is force majeure?
Force majeure is a powerful and unexpected event, such as hurricane or other disaster.
36. What is the key output of Report Performance?
Forecasts
26. What is free float?
Free float is time that an activity can be delayed from it's early start date without delaying early start of any immediately following schedule activities.
What are 4 types of organizational structures
Functional (traditional) Matrix (weak, balanced, strong) Projectized Composite
Gold Plating
Give customers extra (e.g: extra functionality, higher-quality components, extra scope, or better performance)
48. What is gold plating?
Gold plating is when the team adds more work to the project that was not requested by the sponsor or client. It is not scope creep.
Difference between quality and grade ?
Grade is a category assigned to products or services having the same functional use but different technical characteristics. Ex: a product can have high quality (no defects, readable manual, ...) but low grade (poor features)
25. Distinguish Quality vs. Grade?
Grade is a rank or category measuring features or characteristics of product. Low Quality is always a problem while low grade may or may not be a problem
What does the schedule variance tell you?
How far you are behind or ahead of schedule
Initial project organization
Identification and documentation of the project team and the key stakeholders. May also note team organization and structure.
What is Root cause analysis (TT) ?
Identified risks are reorganized by their root causes to help identify more risks
Intiating ( Project Communication) 10.1
Identify Stakeholder
13. What Process is Control Scope part of?
Integrated Change Control
Integration Management CHAPTER FOUR
Integration Management CHAPTER FOUR
5. What are the 3 key tools and techniques of Develop Project Team?
Interpersonal skills, Team-building activities, and Co-Location
Different kinds of float ?
Kinds of float: - Total float: the amount of time that an activity can be delayed without delaying the project end date or an intermediary milestone - Free float: amount of time that an activity can be delayed without delaying the early start date of its successor - Project float: amount of time a project can delayed without delaying the external imposed project completion date required by customer or management or committed date by PM
Total float
LS - ES or LF - EF
49. Which Decision-Making or Leadership Style is also called free-rein or shareholder manager?
Laissez-Faire
9. What theory is Taguchi associated with?
Loss Function Theory
TT of Plan Procurement
MEC: - Make or buy analysis - EJ - Contract types
41. What process Involves monitoring / tracking team member work performance, resolving issues, managing conflicts, and providing feedback?
Manage Project Team
Executing ( Project Communication Mgt) 10.4
Manage stakeholder expetation
When to use Resource Leveling TT?
Meet constraints on: - Resources Availability - Limited amount of resource To keep resource at constant level
What is Communication Technology ?
Method used to transfer information
Monitoring Control ( Project Risk Mgt) 11.6
Monitor and control risk
A project was assessed and the following earned value data have been found: PV: $750,000 EV: $750,000 AC: $900,000 What is the burn rate of the project? A. 1.20 B. 1.10 C. 1.00 D. 0.83
Monitoring and controlling Answer: A. 1.20 Reference: Project Management, A Systems Approach to Planning, Scheduling and Controlling by H. Kerzner, 10th edition, page 647, pmi.books24x7.com/viewer.asp?bkid=32027&destid=1032#1032.
The term baseline is used in both disciplines project management and configuration management. Which statement is not true? A. Baselines in system configurations are often also referred to as deltas. B. In configuration management, baselines are used to control change. C. Project management baselines are used for performance measurement. D. In project management, baselines help assessing variance and trends.
Monitoring and controlling Answer: A. Baselines in system configurations are often also referred to as deltas. References: PMBOK® Guide 4th Edition, pages 59, 93.
A project manager reported the following earned value data: PV: $12,400,000 EV: $14,500,000 AC: $14,500,000 What does this mean? A. The project is over budget and on schedule. B. The project is under budget and on schedule C. The project is on budget, but behind schedule. D. The project is on budget and ahead of schedule.
Monitoring and controlling Answer: D. The project is on budget and ahead of schedule. Reference: PMBOK® Guide 4th Edition, page 181-182.
The "what-if" scenario method of schedule network analysis makes use of what technique?
Monte Carlo analysis
45. Which power is very effective?
Most effective power is Expert power.
55. What is murder board?
Murder board is a process where a committee asks questions from project representatives as part of the project selection process.
7. What is the key distinction between EPV and NPV?
NPV does not consider risk factors and EPV does consider risk factors
Formula of Net Present Value (NPV) ?
NPV=total benefits - costs over the period Project with greatest NPV is selected
What is the definition of a statement of work
Narrative description of the products or services to be supplied by the project
How many Knowledge Area's exists?
Nine (9)
TT of Manage Project Team ?
OCPII: - Observation and conversation - Conflict Management - Project Performance Appraisals - Interpersonal skills - Issue log
55. Main output of Manage Stakeholder Expectations?
OPA updates (causes of issues, lessons learned)
56. What is oligopoly?
Oligopoly - There are few sellers and action of one seller will have impact on other sellers prizes.
47. What is procurement audit?
Once you've closed out a procurement, it's important to conduct a procurement audit. This is where you go over everything that happened on the project to figure out the lessons learned, and look for anything that went right or wrong.
40. What is Sole Source?
Only one Qualified Seller
5. Project Records are considered to be part of?
Organizational Process Assets
What are the overall characteristics of matrix structures
Overall focus - operations and projects Authority - two bosses: functional manager and project manager Manager focus - project manager: control of projects Employee focus - split between projects and operations
Detailed Process of Making Changes
P125R 1. Prevent the root cause of changes 2. Identify change 3. Look at the impact of the change 4. Create a change request 5. Perform integrated change control: a. Assess the change b. Look for option c. The change is approved or rejected d. Update the status of the change in the change control system 6. Adjust the PMP, PD and Baselines 7. Manage stakeholders' expectation by communicating the change to stakeholders affected by the change 8. Manage the project to the revised PMP and PD
What estimating method would use optimistic time estimates?
PERT three-point estimate
TT of Close Procurement ?
PNR: - Procurement audits - Negotiated settlement - Records management system
What are the 5 inputs to Develop Project Charter
Project statement of work Business case Contract Enterprise environmental factors Organizational process assets
What are the inputs for the develop project charter process?
Project statement of work Business case Contracts Enterprise environmental factors Organizational process assets
Use of Internal Rate of Return (IRR) ?
Project with greatest IRR is selected
Marginal Analysis
Refers to looking for the point where the benefits or revenue to be received from improving quality equals the incremental cost to achieve that quality. Should stop trying to improve quality when that point is reached.
35. The process that involves collecting all baseline data and disseminating project performance information to stakeholders is known as?
Report Performance
Which Project Communications Management process occurs in the Monitoring and Controlling Process Group
Report Performance
What is Requirements Documentation ?
Requirement Documentation describes how individual requirements meet the business need for the project. - Business need, Business/Project Objectives - Funtional/non-Functional requirements - Quality requirements, Acceptance criteria - Assumption, constraint - Impact to other organization areas, entities inside or outside
19. What is critical chain?
Resource constrained critical path is critical chain.
31. What is resource histogram?
Resource histogram is part of staffing management plan. It describes the type and quantity of resources needed over a period of time.
What is Preassignment ?
Resources are assigned in advance to the project (in Project Charter for example) Can occur if: - Specific People being promised as part of a competitive proposal - Project is dependent upon expertise of particular persons - Some staff is assigned in Project Charter
What is RACI Chart ?
Responsible, Accountable, Consult, Inform
What is Risk-related Contract Decisions (O) ?
Results of mitigating/transfering threats, enhancing/sharing opportunities
What is Residual Risk ?
Risk remains after risk response planning
What is Status Meeting (TT) ?
Risk should be the major point in a status meeting
What are the 3 cost estimate ranges?
Rough Order of Magnitude: -50% to 50% or -25% to 75% Initiating (Start) Budget Est: -10 to 25% Early Planning Definitive (or Control) -10% to 10% or -5% to 10% End Planning (End)
TT of Develop Schedule
SCReWLoSS - Schedule Network Analysis - Critical Path method - Critical Chain Method - Resource Leveling - What-if Scenario - Applying Leads and Lags - Schedule Compression - Scheduling Tool
10. Which is the 2 key inputs to Develop Project Charter?
SOW and Business Case
13. Sensitivity analysis is a technique in which process?
Sensitivity analysis is a technique in Quantitative Risk Analysis
Planning ( Project Time mgt) 6.2
Sequence Activity
38. What are seven basic tools of quality?
Seven basic tools of quality are Cause and Effect (Fishbone or Ishikawa) Diagrams, Control Chart, Flowcharting, Histogram, Pareto Chart, Run chart and Scatter Diagram.
21. Who was responsible for defining Plan-Do-Check-Act Cycle?
Shewhart
Purchase Order
Simple type of contract, normally signed by one party, used for simple commodity procurements
Schedule milestones
Specific dates when phases of the project should be completed. Often treated as project constraints.
30. What is staffing management plan?
Staffing management plan adds time (schedule) component to Human Resource (HR) plan. It also includes rewards and recognitions, training requirements and release criteria.
20. What are the 2 key outputs of Identify Stakeholders?
Stakeholder Register and Stakeholder Management Strategy
17. What is the key tool of Identify Stakeholders?
Stakeholder analysis
4. Who are stakeholders?
Stakeholders are persons or organizations whose interests may be positively or negatively affected by the performance or completion of the project. Stakeholders include project team as well.
What is Fringe Benefits ?
Standard benefits formally given to all employees
Work performance information
Status of the deliverables: the work that's been started, finished, or has yet to begin.
7. What does a diagonal line that equally divides data points on a scatter diagram represent?
Strong Correlation between two variables
10. Procurement Audits are?
Structured reviews of the procurement process from Plan Procurements process through Administer Procurements Process
37. Define Time and Material contracts?
T&M contracts are hybrid type of contractual agreements that could contain aspects of both cost-reimbursable and fixed-price type arrangements.
To Complete Performance Index (TCPI)
TCPI = (BAC-EV)/(EAC-AC) Rate must be meet for the remaining work in order to stay within budget
TT of Develop Project Team /
TRIG TC: - Team-building activities - Recognition and rewards - Interpersonal skills - Ground rules - Training - Co-location (War room)
3. What is the main output of Develop Project Team?
Team Performance Assessment
Project Management Team
Team member may have project management responsibilities in addition to responsibilities for implementing the work
What is Virtual teams ?
Team that do not meet face to face
What is Schedule Network Analysis TT ?
Technique used to generate the final schedule. Can be one of following techniques: - Critical Path method - Critical Chain method - Resource Leveling - Schedule Compression - What-if scenario analysis
How many processes occur in the Monitoring and Controlling Process Group?
Ten (10)
What is Halo Effect ?
Tendency to rate team members high or low on all factors due to impression of a high or low rating on some specific factor
What does proper scope management mean
That you are staying within the scope leg of the triple constraint triangle
What is the primary output of the Define Activities process?
The Activity List
Fixed Price Award Fee (FPAF) ?
The buyers pays a fixed price plus an award amount (a bonus) based on performance. Total possible award amount is determined in advance and apportioned out based on performance (different than PFIF)
Actual Cost Means? Aka actual cost of work performed (ACWP)
The cost of the work that has been completed at a specific point in time, including any work started ahead of schedule
How would you best describe the aspirational requirement related to respect
The duty to inform yourself about norms and cusoms of others and avoid engaging in behavior that others might consider disrespectful
How would you best describe the aspirational requirement related to honesty
The duty to seek the truth
How would you best describe the mandatory requirement related to responsibility
The duty to take ownership for the decisions you make, or fail to make
Scope verification
The formal inspection of the project deliverables, which leads to project acceptance.
What are the organizational process assets
The organization's processes or knowledge base that describes how the organization manages projects
Purpose of Close Project or Phase process ?
The process of finalizing all activities across all of the Project Management Process Groups to formally complete the project or phase
Work package
The smallest item in the WBS.
5. Define stakeholder characteristics?
The stakeholders of a project typically have conflicting objectives. They have maximum influence during initial stages of the project.
Planned Value means? Aka budgeted cost of work scheduled (BCWS)
The value of the work that should be completed at a specific point of time, excluding any work started ahead of schedule
What does Present Value mean?
The value today of future cash flows
How do you define project scope
The work required to deliver the product, service, or result
What is Procurement Statement of Work ?
The work to be done on each procurement
What is Centralized contracting environment ?
There is one procurement department, a procurement manager may handle procurements on many projects
Which process group is not covered on the PMP Exam?
They all are included on the exam.
3. What do Project Selection Methods involve?
They involve measuring value or attractiveness to the project owner/organization
Brainstorming
This approach encourages participants to generate as many ideas as possible about the project requirements. No idea is judged or dismissed during the brainstorming session.
Value analysis
This approach examines the functions of the project's product in relation to the cost of the features and functions. This is where, to some extent, the grade of the product is in relationship to the cost of the product.
Delphi Technique
This approach uses rounds of anonymous surveys to build consensus. PM organizes the comments and inputs and then sends them back to the participant for another round of anonymous input.
42. What are the main objectives of a Performance Appraisals?
To ensure team members receive constructive feedback, resolve any unresolved issues, develop individual training plans, and specific goals
What is the responsibility of the change control board
To review, evaluate, and approve (or reject) change requests
Why would you want to crash a project?
To shorten the project duration.
Why would a project manager want to use resource leveling?
To smooth the peaks and valleys of monthly resource usage consumed by the project
Is expert judgement an input, tool and technique, or output
Tool and technique
What is analogous estimating?
Top-down estimating
What is total float? What's the formula for it?
Total float is the amount of time an activity can be delayed without delaying the project. Float = LS - ES Float = LF - EF
27. What is total float?
Total float is time that an activity can be delayed from it's early start date without delaying the project finish date.
How do you calculate Earned Value (EV)?
Total the EV amount multiplied by the completion amount of all activities even the ones that have not been started.
The project plan is the basis on which project work will be done and measured. True or false.
True
How many processes occur in the Planning Process Group?
Twenty (20)
How many process occur in the Closing Process Group
Two (2)
How many processes occur in the Initiating process group?
Two (2) Develop Project Charter Identify Stakeholders
Teaming Agreement (Joint Venture) ?
Two sellers sign a teaming agreement with each other to address the legal and business aspects of the arrangement
Weighted Milestone
Typically used for activities longer then two reporting periods. Each measurable output for each section of work.
Earned Value Rules (Fixed Formula Progress Reporting)
Typically used on shorter duration not exceeding two reporting periods. E.G. 25%
20. What is constructive change?
Undocumented change to contract is constructive change.
What is Workaround ?
Unplanned responses developed to deal with the occurrence of unanticipated events or problems on a project
Goal of Control Scope ?
Update Scope, Plan, Baseline and WBS Infor
What is parametric estimating?
Using mathematical relationships found in historical information to create estimates (e.g. Dollars per foot)
What is Expert Judgement
Using people that you have to develop and move the work along as well as specialized knowledge for your project - from inside or outside the organization - including paid consultants and industry experts.
What does scope creep not add to a project
Value
10. What is value engineering?
Value engineering is less costly method to deliver same scope without performance degradation
46. What tool is used in Control Scope, Control Schedule and Control Costs to assess the magnitude of performance variation?
Variance Analysis
11. Product Verification is:
Verification that all work and deliverables are acceptable
38. Process for obtaining formal acceptance of completed deliverables from stakeholders is known as?
Verify Scope
59. What is typical duration range for WBS activity?
WBS activity should be between 8 and 80 hours.
What is WBS directory ?
WBS directory provides a description of the work to be done for each WBS work packages and helps make sure the resulting work better matches what is needed
40. What are ways to handle negative risks?
Ways to handle negative risks are Avoid, Transfer, Mitigate and Accept.
41. What are ways to handle positive risks?
Ways to handle positive risks are Exploit, Share, Enhance and Accept.
Estimate at Completion - EAC
What do we currently expect the TOTAL project to cost ( a forecast) ? EAC = AC + Bottom-up ETC (new estimate for the remaining work) EAC = BAC/CPI (continue at same rate of spending) EAC = AC + (BAC-EV) (AC plus the remaining value of work to perform) EAC = AC + (BAC-EV)/(CPIxSPI) (AC plus remaining budget modified by performance)
51. What is the sequence of actions that should happen when an issue happens?
When an issue happens, analyze impact of issue -> submit change request -> if approved, update schedule and scope baselines -> implement the change.
When is a project complete
When formal acceptance is received
When is a project considered successful
When it meets stakeholders' expectations
52. What method retreats from the actual conflicting situation and does not resolve the conflict?
Withdrawal
32. An unplanned response to emerging risks, previously unidentified or accepted is known as
Workaround
What is Arbitration ?
a neutral party hears and resolves a dispute
What is a project?
a temporary endeavor undertaken to create a unique product, service, or result
What is Stakeholder ?
are persons and organizations such as customers, sponsors, the performing organization and the public that are actively involved in the project, or whose interests may be positively or negatively affected by the execution or completion of the project.
When is stakeholder influences, risk, and uncertainty greatest during a project?
at the start of a project
WBS created by whom ?
by entire Team
Cost Risk
cost-related risk
What is Herzberg's Theory ?
include Hygiene factors and Motivating agents - Hygiene factors: Poor hygiene factors may destroy motivation, but are not sufficient to motivate people (ex: working conditions, salary, personal life, relationships at work, security, status,...) - Motivating agents: what motivates people is the work itself (ex: responsibility, self-actualization, professional growth, recognition, ...). --> motivating people is best done by rewarding them and letting them grow. Giving raises is generally good news for Project Manager.
Purpose of HR ?
includes the processes that organize, manage and lead the project team
What are enterprise environmental factors?
internal or external environmental factors that surround or influence a project's success
What is Portfolio ?
is a group of programs/projects to achieve a specific strategic business goal
What is project scope ?
is all of the work that need to be done to make the product
Purpose of Distribute Information process ?
making relevant information available to project stakeholders as planned
22. What is theory X?
management does not trust employees
23. What is theory Y?
management trusts employees
What is the primary deliverable of the Develop Project Charter process
project charter
8. What is the definition of ROI?
return ratio that compares the net benefits of a project/product verses its total cost
Name the project mgmt constraints.
scope, time, cost, quality, human resources, communications, risk
What is project management
the application of knowledge, skills, tools and techniques to project activities to meet the project requirements
What is program management?
the centralized coordinated mgmt of a program to achieve the program's strategic objectives and benefits
What is a project manager?
the person assigned by the performing organization to achieve the project's objectives
When is the end of a project reached?
when project objectives have been achieved or when the project is terminated because its objective cannot be met or the need for the project no longer exists
What is a sequential relationship?
where a phase can only start once the previous phase is complete
What is an overlapping relationship?
where the phase starts prior to completion of the previous one
12. What is Juran's definition of Quality?
"Fitness for Use"
Expected Present Value
$ * Probability
PERT
(P + 4M + O) / 6
Standard Deviation of Activity
(P - O) / 6
What is the 3-point Estimation Formula (Triangulation)
(P+O+ML)/3
What is Project Integration Management
* Ensures that every part of the project is coordinated. * Focuses on the larger things to be performed for the project to work. * ONLY Knowledge Area that has Processes in EVERY Process Group * Changes made in one Process Group must be "integrated" into the rest of the project BOTTOM LINE: Look at everything constantly and how it all works together.
What is Six Sigma ?
+/- 1 sigma: 68.27% +/- 2 sigma: 95.45% +/- 3 sigma: 99.73% +/- 4 sigma: 99.9999998%
What is the range of accuracy with a definitive estimate?
+/- 10%
Definition of Lag
- A lag directs a delay in the successor activity - Lag time is entered as positive value
Definition of Lead
- A lead allows an acceleration of the successor activity - Lead time is entered as negative value
What is Delphi technique ?
- A request for information is sent to the experts, their responses are compiled, and the results are sent back to them for further review until consensus is reached. - Experts participate anonymously - is used to reach consensus between risk expert - is used in Estimating Cost and Time also
What are included in Activity attributes ?
- Activity ID - WBS ID - Activity Name - Activity codes - Activity description - Predecessor activities - Successor activities - Logical Relationships - Leads and Lags - Resources requirement - Imposed dates - Constraints - Assumptions .......
Differentiate PDM and ADM ?
- Arrow Diagramming Method --> Activity on Arrow (AOA) diagram - Precedence Diagramming Method --> Activity on Node (AON) diagram - ADM only shows FS relationship while PDM can show 4 different relationship - ADM use dummy activities wo show other type of relationship.
What is Project Schedule ?
- As a minimum, the project schedule includes a planned start date and planned finish date for each activity.. - When presented in summary form --> master schedule/milestone schedule/presented in detail - When presented in graphical form --> 3 kinds of format: + Milestone charts + Bar charts + Network diagram
What is Risk data quality assessment (TT) ?
- Assess the accuracy and integrity of the data used in risk qualitative analysis
Negotiation tatics ?
- Attacks - Personal insults - Good guy/Bad guy - Deadline - Lying - Limited authority - Missing man - Fair and reasonable - Delay - Extreme demands - Withdrawal - Fait accompli
Difference between Attribute Sampling and Variables Sampling ?
- Attribute Sampling: is binary, it either conforms to quality or it doesn't (YES or NO) - Variables Sampling: Measures how well something conform to quality (RANGES, SCALES of conformity degree)
What is Strategies for negative risks or threats (TT) ?
- Avoid: change PMP to eliminate the threat entirely - Transfer: shift some or all of the negative impact of a threat (with ownership of the response) to a third party - Mitigate:reduce probability and/or impact of an threat event to be within acceptable threshold limit - Accept: do nothing
Difference between bid and proposal ?
- Bid: seller is selected based solely on the price. Used in fixed contract. - Proposal: seller is selected based on price and proposal (how to do the work).
Difference between Single Source and Sole Source ?
- Both are noncompetitive procurements - Single Source: you contract directly with your preferred seller without going through the procurement process - Sole Source: There is only one seller (might be a company that owns a patent)
Information Gathering techniques (TT) contains ?
- Brainstorming - Delphi technique - Interviewing - Root cause analysis
Group Creativity techniques consist of
- Brainstorming: generate and collect multiple ideas - Nominal group technique: rank the most useful ideas (enhance brainstorming) - Delphi technique: Anonymous experts answer questionnaire and provide feedback. - Idea / Mind mapping: graphically present ideas created through Brainstorming - Affinity diagram: Sort large number of ideas into groups for review and analysis
What are 2 types of risk ? (risk categories, different than Threat and Opportunity type)
- Business risk: risk of a gain or loss - Pure (Insurable) risk: only a risk of loss (fire, theft, ...)
Cost Plus Fee (CPF) or Cost Plus Percentage of Cost (CPPC)
- Buyer pay all costs pus a percentage of costs as a fee - Bad for buyer
Cost Plus Fixed Fee (CPFF)
- Buyer pays actual costs plus a negotiated fee that is fixed before the work begins
Cost Plus Award Fee (CPAF)
- Buyer pays all costs and a base fee plus an award amount (a bonus) based on performance. -The award amount is determined in advance and apportioned out depending on performance
What is Variance and Trend Analysis (TT) ?
- Compare planned results to actual results - Review trend in project's execution using performance information - Used to forecast potential deviation from the baseline --> may indicate potential impact of threats or opportunities
What is Technical performance measurements (TT) ?
- Compare technical accomplishments during project execution to project management plan's schedule of technical achievement. - Deviation may exposes the degree of technical risks
Definition of Cost Benefit Analysis ?
- Compares the expected costs of the project to the potential benefits it could bring to organization - Benefit = revenue = payback - Project with higher Benefit Cost Ratio is selected
Purpose of Close Procurement process ?
- Complete each project procurement
What is difference between Configuration Control and Change Control ?
- Configuration Control: focus on the specification of both the deliverables and the processes - Change Control: focus on identifying, documenting and controlling changes to the project and the product baselines
What are Configuration Management activities included in Integrated Control Process ?
- Configuration Identification: select and identify configuration items - Configuration Status Accounting: provide status of proposed change and implementation status of approved change to the configuration - Configuration Verification and Audit: ensure the correctness of configuration items' composition, and that corresponding changes are registered, assessed, approved, tracked and correctly implemented
What Reserves is estimated in Estimate Cost and Determine Budget processes ?
- Contingency Reserve in Estimate Cost - Contingency Reserve and Management Reserve in Determine Budget
Types of reserve ?
- Contingency reserve - Management reserve Project Manager has control of cost baseline and can approve use of contingency reserves, but management approval is needed to use management reserves
What is Probability Distribution (TT) ?
- Continuous probability distribution - Discrete distribution - Uniform distribution
Change Request ?
- Corrective Action - Preventive Action - Defect Repair - Updates Can be initiated: direct or indirect, externally or internally, optional or legally/contractually mandated
What are categories of Cost of Quality ?
- Cost of Conformance: + Prevention cost (Build a quality product):Training, Document Processes, Equipment, Time to do it right + Appraisal costs (Assess the quality): Testing, Destructive Testing loss, Inspections - Cost of Non-Conformance: + Internal Failure Costs (failure found by the project): Rework, Scrap + External Failure Costs (failure found by the Customers): Liabilities, Warranty work, Lost business
Which contract type is the riskiest for buyer ?
- Cost plus percentage of cost (CPPC) - Time&Material (TM)
what is important in modern quality management (complement Project Management) ?
- Customer satisfaction (conformance to requirements and fitness for use) - Prevention over inspection - Continuous improvement (plan-do-check-act cycle Shewhart&Deming , Sig Sigma, TQM) - Management Responsibility (require participation of all members, remain the responsibility of management)
What is Scope Management Plan ?
- Define how scope will be planned, executed and controlled - is created as part of Develop Project Management Plan process
What are Management and Leadership Styles?
- Directing: tell others what to do - Facilitating: coordinate the input of others - Coaching: helps others achieve their goals - Supporting: provides assistance along the way - Autocratic (top-down approach): has the power to do whatever he or she wants - Consultative (bottom-up approach):obtain others' opinion and acts as the servant for the team - Consultative-Autocratic: solicit input from team members, but retains decision-making authority for himself - Consensus: problem solving in a group, making decisions based on group agreement - Delegating: establish goals and then gives the project team sufficient authority to complete the work - Bureaucratic: follow procedures exactly - Charismatic: energize and encourage team in performing project work - Democratic or Participative: encourage tam participation in the decision-making process - Laissez-faire: is not directly involved in the work of the team, but manages and consults as necessary - Analytical: often make the technical decisions for the project - Driver: constantly giving directions - Influencing: emphasizes teamwork, team building and team decision making
Projectized Organization Advantages
- Efficient project organization - Loyalty to the project - Duplication of facilities and job functions
Terms used in Forecasting TT:
- Estimate at Completion (EAC) - Budget at Completion (BAC) - Estimate to Completion (ETC)
What is Assumption Analysis (TT) ?
- Explore the validity of assumptions made on project to identify risks
Matrix Organization Disadvantages
- Extra administration is required - More than one boss for project teams - More complex to monitor and control - Resource allocation is more complex - Need extensive policies and proceedures - Functional manages may have different priorities than project managers - Higher potential for conflict.
Purpose of Negotiated Settlements ?
- Final settlement of all outstanding issues, claims, disputes using negotiation or alternative dispute solution (ADR) or litigation in the courts
Types of Activity Relationship in PDM ?
- Finish to Start (FS) (most common) - Start to Start (SS) - Finish to Finish (FF) - Start to Finish (SF) (rarely used)
Types of contracts ?
- Fixed price (FP, or Lump Sum, Firm Fixed Price) - Time and material (T&M or Unit Price) - Cost reimbursable (CR)
Primary difference between Focus Group and Facilitated Workshop ?
- Focus Groups are gathering of prequalified subject matter experts and stakeholders - Facilitated Workshop consists of cross-functional stakeholders --> define cross-functional requirements
Type of Power of Project Manager ? (Recognition and Reward TT)
- Formal (Legitimate) - Reward (best) - Penalty (Coercive - worst) - Expert (best) - Referent
What are Communication types ?
- Formal written (complex problems, PM Plan, Project Charter, Memos, Communication over long distances) - Formal verbal (Presentation. Speeches) - Informal written (Email, Handwritten notes, text messages, instant messaging) - Informal verbal (meetings, conversation)
How to handle change to Baseline ?
- Formally evaluated and approved in Perform Integrated Change Control process
What is Team formation and development stages ? (Team-building activities TT)
- Forming: People are bought together as a team - Storming: There are disagreements as people learn to work together - Norming: Team members begin to build good working relationships - Performing: The team becomes efficient and works effectively together. - Adjourning: The project ends, and the team is disbanded
Matrix Organization Advantages
- Highly viisible project objectives - Improved project manager control over resources - More support from functional areas - Maximum utilization of scarce resources - Better coordination - Better horizontal and vertical dissemination of information - Team members maintain a "home"
What is covered in the KNOWLEDGE AREA of Integration Management
- INITIATING Process Group: Develop Project Charter (Result: Project Charter) - PLANNING Process Group: Develop Project Management Plan (Result: Project Management Plan) - EXECUTING Process Group: Direct & Manage Project Execution (Result: Deliverables) - MONITORING/CONTROLLING Process Group: Monitor & Control Project Work (Result: Change Requests) - MONITORING/CONTROLLING Process Group: Perform Integrated Change Control (Result: Change Requests & Status Updates) - CLOSING Process Group: Close Project or Phase (Result: Final Product)
What do you do with stakeholders throughout the project ?
- Identify ALL Stakeholders - Identify ALL of their requirements - Determine their expectations - Determine their interests - Determine their level of influence - Plan how you will communicate with them - Communicate with them - Manage their expectations and influence
What are Communication Management's processes ?
- Identify Stakeholders (initiating) - Plan Communication (planning) - Distribute Information (executing) - Manage Stakeholder Expectation (executing) - Report Performance (mc)
Required characteristics of a PM ?
- Knowledge: know about Project management - Performance: know how to apply PM knowledge - Personal: How PM behaves when performing the project or related activity
Some important personal skills ?
- Leadership:focus the efforts of a group of people toward a common goal and enable them to work as a team - Team building: help a group of individual to work interdependently with each other, leader, external stakeholder --> teamwork - Motivation: relate to project's team commitment - Communication - Influencing: share power and rely on interpersonal skills to get others to cooperate towards common goals - Decision making - Political and Cultural Awareness - Negotiation: confer with parties of shared or opposed interests with a view to compromise or reach an agreement
Cost Management Plan can include ?
- Level of accuracy (rounding of data) - Units of measure - Organizational procedures link (link between control account and accounting system) - Control thresholds (agreed-upon amount of variation to be allowed before some action needs to be taken) - Rules of performance measurement - Reporting formats (format and frequency) - Process descriptions
Content of Risk Register after this process ? (O)
- List of identified risks (Cause, Event, Effect) - List of potential responses - Root cause of risks - Updated risk categories
What is Critical Path ?
- Longest duration path through a network diagram - Shortest time it could take to complete project
Curve of cost and staffing during project lifecycle ?
- Lowest early in lifecycle - Peak while project is underway - Drop-off when project nears completion
Purpose of Administer Procurements process ?
- Manage procurement relationships - Monitor contract performance - Make changes and correction as needed
what are primary functions of PMO ?
- Manage shared resources - Identify, develop PM methodology, best practices, standards - Coach,Mentor, Train, Oversight - Monitor compliance with PM standards, policies, procedures, templates via project audits - Develop, manage project policies, templates, OPA - Coordinate communication across projects
The Role of Functional Manager
- Manages and "owns" the resources in a specific department - Generally directs the technical work of individuals from that functional area who are working on the project
Types of Dependency ?
- Mandatory Dependency (Hard Logic) - Discretionary Dependency (Preferred, Preferential, Soft Logic) - External Dependency
A Project can begin from what kind of need ?
- Market demand - Strategic opportunity/Business need - Customer request - Technological advance - Legal requirements
In Exam, what kind of org is assumed ?
- Matrix - Project Manager is responsible for making budgets, assigning task to resources, resolving conflicts
What are 4 motivation theories ?
- McGregor's Theory of X and Y - Maslow's Hierarchy of Needs - David McClelland's Theory of Needs (Acquired Needs Theory) - Herzberg's Theory
What is Team Performance Assessments used for ?
- Measure the effectiveness of the overall team - Measure how well the Project Management Team is implementing the applicable components of the HR Plan
What are included in Risk Management Plan ?
- Methodology (approaches,tools, data sources) - Roles and Responsibilities - Budgeting - Timing (when, how often) - Risk categories (or sources of risk) (Risk Breakdown Structure - RBS)(technical, external, organizational, project management) - Definition of probability and impact (define probability levels and impact levels for use in Perform Qualitative Risk Analysis -->Probability and impact matrix) - Stakeholder tolerances - Reporting format - Tracking
When to use Milestone Chart/Barchart/Network diagram ?
- Milestone chart: only show major events, have no duration --> best used to report to senior management - Bar chart: Show only activities with start/end date and expected duration, no inter-dependencies --> to track progress and report to the team - Network diagram: to show inter-dependencies between activities
Purpose of Perform Quality Control ?
- Monitor and Record results of executing the quality activities to assess performance and recommend necessary changes
What is Modeling and Simulation (TT) ?
- Monte Carlo Analysis - used to stimulate cost or schedule results of project (in the form of probability distribution) - input values (cost estimates, activity duration) chosen at random for each iteration from probability distribution of these values
What is "What-if Scenario Analysis" ?
- Monte-Carlo analysis is the most popular - is a computer-driven simulation technique that applies different variables to the schedule , and the result can be used to identify high-risk and vulnerable areas within the schedule
Projectized Organization Disadvantages
- No "home" when project is completed - Lack of specialization in disciplines - Duplicaiton of facilites and job functions - May result in less efficient use of resources
Objectives of Negotiations ?
- Obtain a fair and reasonable price - Develop a good relationship with the seller
what can be EEF ?
- Organizational culture, structure, processes - Government or industry standards - Infrastructure - Existing human resources - Personnel administration - Company work authorization systems - Marketplace condition - Stakeholders risk tolerances - Political climate - Organization's established communication channels - Commercial databases - PM Information System
what is Risk Register Updates (O) ?
- Outcome of risk reassessments and risk audits - Update Risk Management (new risks) - Close risk - Detail of what happened when risks occurred - Lesson learned
What is Work Performance Information ?
- Output from Manage and Direct Work Execution process (executing, integration) - Any data relating to the work which produces the delivrables: schedule, progress status, cost status, quality status, ...
Difference between PMO and PM ?
- PM focus on specified project objectives vs PMO manage program scope changes - PM manage project resource >< PMO optimize uses of shared resources across project - PM manage constraints (scope, schedule, cost, ...) of individual project >< PMO manage methodologies, standards, overall risk/opportunities and interdependencies among projects
What are included in Contract Change Control System ?
- Paperwork - Tracking system - Dispute resolution procedures - Approval level necessary for authorizing changes
Functional Organization Disdvantages
- People place more emphasis on their functional specialty to the detriment of the project. - No career path in project management - The project manager has little or no authority
Difference between Perform Quality Control and Verify Scope ?
- Perform Quality Control: check for correct work results and assure that the quality requirements are met - Verify Scope: Accept work result
Contents of Project Management Plan
- Performance Measurement Baseline (Baseline) - Subsidiary plans
Project Scope Creep results from ?
- Poor initial requirements definition - Failure to involve users in early stages - A missing Scope Baseline - Poor Change Control - Project takes long therefore requirements also change - Weak Management - Failure to Manage User Expectation
What are different Stakeholders' classification models ?
- Power/Interest grid - Power/Influence grid - Influence/Impact grid - Salience model (power, urgency and legitimacy)
Types of Network Diagram ?
- Precedence Diagramming Method - PDM (most popular) - Arrow Diagramming Method - ADM - Graphical Evaluation and Review Technique (GERT)
Difference between precision and accuracy ?
- Precision is how close the measured values are to each other, how repeatable the measure is and how many significant digits it's measured in - Accuracy is how close a measured value is to the actual (true) value
Economics Models ?
- Present value (PV) - Net present value (NPV) - Internal Rate of Return (IRR) - Payback Period - Cost benefit analysis
Difference between Prevention and Inspection ?
- Prevention: look at process for factor that can potentially lead to defect - Inspection: Test, measure, review and examine deliverables to determine whether it's compliance with quality requirements
Purpose of Perform Qualitative Risk Analysis ?
- Prioritize risks for further analysis or action by assessing and combining their probability or occurrence and impact. - Compare risk of project to overall risk of other projects - Determine whether project should be selected, continued or terminated - Determine whether to proceed to the Perform Quantitative Risk Analysis or Plan Risk Responses processes
What are in Risk Register updates (O) ?
- Prioritized list of quantified risks - Amount of contingency time and cost reserves needed - Possible realistic and achievable completion dates and project cost, with confidence levels, versus the time and cost objectives for the project - Quantified probability of meeting project objectives - Trend in quantitative risk analysis
What to be determined in Quantitative Risk Analysis ?
- Probability - Impact --> Objective (Numerical) analysis
What to be determined in Qualitative Risk Analysis ?
- Probability - Impact --> Subjective analysis
Risk Factors ?
- Probability that risk event will occur (how likely) - Range of possible outcomes (impact or amount at stake) - Expected timing for it to occur in project life cycle (when) - Anticipated frequency of risk events from that source (how often)
What are included in Process Improvement Plan ?
- Process Boundaries: purpose of process, start and end, inputs/outputs, data required, owner, stakeholders - Process Configuration: graphic depiction of processes, with interfaces identified, used to facilitate analysis - Process metrics - Targets for improved performance: guide the process improvement activities
Activities in Procurement closure ?
- Product verification - Negotiated settlement - Financial closure - Procurement audit - Updates to records - Final contract performance reporting - Lessons learned - Procurement file - Other
Critical Chain Method terms ?
- Project Buffer - Feed Buffer - Resource Buffer
Contents of Project Charter:
- Project Title and Description - Project Manager Assigned and Authority Level - Business Case - Resourced Preassigned - Stakeholders - Stakeholder Requirement As Known - Product Description/Delivrables - Measurable Project Objectives - Project Approval Requirements - High-Level Project Risks - Project Sponsors Authorizing the Project
What are included in Scope Baseline ?
- Project scope statement - WBS - WBS Directory
What is Planning Meetings and Analysis (TT) ?
- Project team hold planning meetings to develop the risk management plan. - Attendees: anyone involved in the risk management process
Role of Project Sponsor/Initiator
- Provides the financial resources for the project
What is included in Change Request (O) ?
- Recommended Corrective Action: Contingency Plans and Workaround. Used when risk happens - Recommended Preventive Action
What is Documentation Review ? (TT)
- Review all project documents (charter, contract, planning documentation, ...) to uncover risk
Difference between Contingent Plan and Risk Response ?
- Risk Response occurs before the risk, try to change probability/impact - Contingent Plan occurs after the trigger (usually risk event), focus only on changing the impact
Risk tolerances and thresholds
- Risk tolerances is the degree or level of risk that is acceptable to a person or an organization - Risk threshold is the specific point at which risk becomes unacceptable
Full content of Risk Register ?
- Risk: name, description, UID - Risk owner - Risk category - Root cause - Potential response - Impact - Probability - Symptoms/Warning Signs - Risk Score - Risk Ranking/Priority - Risk Response - Risk Response Responsibilities - Residual Risk - Secondary Risk - Risk Response budget - Risk Response Schedule - Contingency Plan - Fallback plan
What is included in Roles and Responsibilities ?
- Roles - Authority - Responsibility - Competency
Human Resource Plan include ?
- Roles and Responsibilities - Project Organization Chart - Staffing Management Plan
What is Performance Measurement Baseline ?
- Scope Baseline - Schedule Baseline - Cost Performance Baseline
What is Scatter diagram ?
- Show relationship between 2 variables (dependent variables vs independent variables) - Study and identify possible relationship between changes observed in 2 variables - The closer the points are to diagonal line, the more closely they are related
What is Run Chart (TT)?
- Similar to Control Chart without displayed limits - show the history and pattern of variation - used in trend analysis to forecast future outcomes based on historical results
Difference between special cause and common cause ?
- Special cause: an unusual event outside of the process that leads to a measurable change in the process --> preventable - Common cause: a normal event within the process that leads to a measurable change in the process --> non-preventable
What are included in Staffing Management Plan ?
- Staff acquisition - Resource calendars (tool: Resource Histogram) - Staff release plan - Training needs - Recognition and rewards - Compliance - Safety
What are included in Communication MP ?
- Stakeholder communication requirements - Information to be communicated - Reason for the distribution of that information - Time frame and frequency of information distribution - Person responsible for communicating information - Person responsible for authorizing release of confidential information - Person or group receiving information - Method/Technology to convey information - Resources allocated for communication activities - Escalation process (time frame, management chain) - Method for updating and refining Communication MP - Glossary of common terminology - Information flow chart in project - Communication constraints
Different types of Performance Reports ?
- Status Report - Progress Report - Trend Report - Forecasting Report - Variance Report - Earned Value Report - Lesson Learned Report
Forms of Depreciation ?
- Straight Line Depreciation - Accelerated Depreciation: + Double Declining Balance + Sum of the Years Digits
What is Quality Audit ?
- Structured, independent review to determine whether project activities comply with organizational and project policies, processes and procedures
Basis of Estimates ?
- Supporting details that provides supplementary about activity estimates. - May include: + How basis of estimates is developed + Assumption made + Known constraints + Range of possible estimates + Confidence level of final estimate
What is Time And Material (T&M) contracts, when to use ?
- The buyer pays on a per-hour or per-item basis - Frequently used for service efforts in which the level of effort cannot be defined when the contract is awarded. - Has the elements of fixed price contract and cost reimbursable contract - Best used for work value at small dollar amounts and lasting a short amount of time
Definition of Payback Period ?
- The length of time it takes for the organization to recover its investment in the project before it starts accumulating profit - Project with lowest Payback Period is selected
What is McGregor's Theory of X and Y ?
- Theory X: Managers believe that people need to be watched every minute - Theory Y: Managers believe that people are willing to work without supervision, and want to achieve
Differences between project/phase closure and procurement closure ?
- There can be many procurement closure >< only 1 project closure - Procurement closure needs to happen before final project closure
Some notices concerning Critical Path Method
- There can be more than 1 critical path - More critical path, more risk - A critical path can be changed - A Negative float means you are behind - Critical path has zero float. During project execution, critical path can have positive or negative float. Negative float needs corrective actions. - When end date change, network diagram doesn't automatically change but through approved change performed by PM - Project with negative float need corrective action such as Schedule Compression
What is Cost Reimbursable (CR) contracts, when to use ?
- This type of contract provides buyer to pay the seller allowable incurred costs to the extent prescribed in the contract - Is used when the exact scope of work is uncertain and, therefore, costs cannot be estimated accurately enough to effectively use a fixed price contract
Categories of change
- Those that affect the PMP, baselines, policies and procedures, charter, contract or SOW --> require formal change request - Those that do not
Different categories of Forecasting methods ?
- Time series methods: use historical data as the basis for estimating - Causal/econometric methods: use the assumption - Judgmental methods: incorporate intuitive judgments, opinions and probability estimates - Other methods: simulation, probabilistic forecasting, ensemble forecasting
What is the purpose of a contract ?
- To define roles and responsibilities - To make things legally binding - To mitigate or allocate risk
What is Organization Charts and Position Descriptions TT ?
- To document team member roles and responsibilities - 3 types: + Hierarchical-type + Matrix-based + Text-oriented
Difference between Tolerances and Control Limits ?
- Tolerances: Specified Range used for product acceptance. Focus on Product - Control Limits: Standard Deviation above or below the mean con Control Chart. Focus on the process (in or out of control)
Purpose of Manage Project Team process ?
- Tracking team member performance - Providing feedback - Resolving issues - Managing changes to optimize project performance
Group Decision Making techniques consist of
- Unanimity - Majority - Plurality - Dictatorship
Different Formal Acceptance of Close Project or Phase and Verify Scope ?
- Verify Scope: formal acceptance from customer for many interim deliverables - Close Project or Phase: final formal acceptance of the project or phase as a whole from customer
Difference between Verify Scope and Perform Quality Control ?
- Verify Scope: primarily concerned with acceptance of the delivrables from customers. --> accepted delivrables - Perform Quality Control: primarily concerned with correctness of the deliverables and meeting the quality requirements specified for the delivrables. --> Validated deliverables - Perform Quality Control is generally performed before Verify Scope.
What are Communication Channels ?
- Vertical: up and down the levels of organization (Customers, Functional Managers, Sponsors, Team Members, ...) - Horizontal: among peers (other Project Managers, other Project)
Project Manager report to who ?
- Weak Matrix, Balanced Matrix: to Functional Manager - Strong Matrix, Composite: Manager of Project Manager - Projectized: Chief Executive
When to use EAC = AC + Bottom-up ETC ?
- When original estimate was fundamentally flawed (no longer valid) - Bottom-up ETC is predicted by team
Percentage of Words, Paralingual and Nonverbal elements in face-to-face communication ?
- Words: 7% - Paralingual elements: 38% - Nonverbal elements: 55%
Constructive change ?
- is Unauthorized change to contract - Occur when buyer, through actions or inactions, gets in the seller's way of performing the work according to the contract . (over-inspection, failing to cooperate, authorize something without going through the change process, directs a contractor to do something outside the scope of the SOW/contract)
What is Critical Chain Method TT ?
- is a Schedule Network analysis technique that modifies the project schedule to account for limited resources. - is Critical Path Method with the entering of resources availability.
What is Rolling wave planning ?
- is a form of progressive elaboration planning - where work to be accomplished in the near term is planned in detail - future work is planned at a higher level of the WBS
What is Project Organization Chart ?
- is a graphic display of project team members and their reporting relationships
What is Program ?
- is a group of related projects - program is organized around a shared benefit in managing them together
What is Resource Breakdown Structure ?
- is a hierarchical structure of the identified resources by resource category (labor, material, equipment, supplies, ...) and resource type.(skill level, grade level, ...)
What is Procurement Audits ?
- is a structured review of the procurement process to identify sccesses or failure in the preparation or administration of contract. - originating from Plan Procurement process through Administer Procurement
Definition of a project ?
- is a temporary endeavour with a beginning and an end - create an unique product, service or result
What is Schedule baseline ?
- is a version of Project Schedule - developed using Schedule Network Analysis - used to manage the project and that the project team's performance is measured against
What is Cost of Quality used for ? (TT)
- to make sure the project is not spending too much to achieve a particular level of quality - 2 components: Cost of Conformance (to quality) and Cost of Nonconformance (to quality) - Cost of Conformance < Cost of Nonconformance
Why do projects end ?
- when projects meet objectives - when it becomes clear when objectives can't be met -> premature cloture - need for project no longer exists
What are the 8 processes in the Executing Process Group
1) Direct and Manage Project Execution 2) Perform Quality Assurance 3) Acquire Project Team 4) Develop Project Team 5) Manage Project Team 6) Distribute Information 7) Manage Stakeholder Expectations 8) Conduct Procurements
4. What is Team Performance Assessment actually assessing?
1) Have individual skills improved, 2) Is team performing more cohesively as a team
How to calculate SD of overall project or a series of activities ?
1. Calculate AV for each activity 2. Add up all AV 3. Square root the total --> you can't add the SD
What are the processes that occur in the Closing Phase
1. Close Project or Phase (Integration) 2. Close Procurements (Procurements)
Activities in Close Project or Phase
1. Confirm work is done to requirements 2. Complete procurement closure 3. Gain final acceptance of the product 4. Complete financial closure 5. Hand off completed product 6. Solicit feedback from the customer about the project 7. Complete final performance reporting 8. Index and archive records 9. Update lessons learned knowledge base
Name the twenty processes that occur in the Planning Process Group.
1. Develop Project Management Plan 2. Collect Requirements 3. Define Scope 4. Create WBS 5. Define Activities 6. Sequency Activities 7. Estimate Activity Resources 8. Estimate Activity Durations 9. Develop Schedule 10. Estimate Costs 11. Determine Budget 12. Plan Quality 13. Develop Human Resources Plan 14. Plan Communications 15. Plan Risk Management 16. Identify Risks 17. Perform Quality Risk Analysis 18. Perform Quantatative Risk Analysis 19. Plan Risk Responses 20. Plan Procurements
What are the processes that occur in the Executing Process Group?
1. Direct and Manage Project Execution (Integration) 2. Perform Quality Assurance ( Project Quality Mangement) 3. Aquire Project Team (Human Resources) 4. Develop Project Team (Human Resources) 5. Manage Project Team (Human Resources) 6. Distribute Information (Communication) 7. Manage Stakeholder Expectations (Communication) 8. Conduct Procurements (Procurements)
What are the 3 processes involved in Cost Management?
1. Estimate Costs 2. Determine budget 3. Control costs
High-level process of Making Changes
1. Evaluate the impact 2. Create options 3. Get the change request approved internally 4. Get customer buy-in
Name the Knowledge Area's
1. Integration Mngmnt 2. Scope Mngmnt 3. Time Mngmnt 4. Cost Mngmnt 5. Quality Mngmnt 6. Human Resources 7. Communications 8. Risk 9. Procurement
What are the processes that occur in the Montior and Control Proces Group?
1. Monitor and Control Project Work ( Integration) 2. Perform Integrated Change Control (Integration) 3. Verify Scope (Scope) 4. Control Scope (Scope) 5. Control Schedule (Time) 6. Control Costs (Costs) 7. Perform Quality Control (Quality)' 8. Report Performance (Communication) 9. Monitor and Control Risks (Risk) 10. Administer Procurements (Procurements)
What is 6 phases decision-making model ?
1. Problem definition 2. Problem solution generation 3. Ideas to action (select best solution) 4. Solution action planning 5. Solution Evaluation planning (post implementation analysis) 6. Evaluation of the Outcome and Process
What are 7 sources of conflict in order of frequency ?
1. Schedules 2. Project priorities 3. Resources 4. Technical opinions 5. Administrative procedures 6. Cost 7. Personality
Terms used in Earned Value Management TT:
3 key dimensions: - Planned value (PV) - Earned value (EV) - Actual Cost (AC) Variance from baseline: - Schedule Variance (SV) - Cost Variance (CV) Performance index: - Schedule performance index (SPI) - Cost performance index (CPI)
What are 4 basic decision styles and 4 major factors affecting the decision style ?
4 basic decision styles: - Command - Consultation - Consensus - Coin flip (random) 4 major factors affecting the decision style: - Time constraints - Trust - Quality - Acceptance
TT of Plan Communication ?
4C: - Communication requirement analysis - Communication technology - Communication models - Communication methods
What are the 5 processes of Project Scope Management
5 Collect Requirements Define Scope Create WBS Verify Scope Control Scope
Which Project Time Management processes occur in the Planning Process Group
5 Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Durations Develop Schedule
8/80 Rule
A planning heuristic for creating WBS which states the work package in a WBS must take no more than 80 hours of labor to create and no fewer than 8 hours of labor to create.
WBS template
A prepopulated WBS for repetitive projects.
What is Decentralized contracting environment ?
A procurement manager is assigned to one project fulltime and reports directly to the project manager
What is a project management system
A project-based set of tools and techniques, processes and procedures, control systems, and methodologies that any project manager, PMO, or organization can take advantage of
You want to perform active risk acceptance. What should you do? A. Create contingency reserves in resources, money and time B. Develop a plan to minimize impact in case that an identified risk occurs. C. Develop a plan to minimize the probability of occurrence for identified risks. D. Make additional resources available to speed up the project.
A. Create contingency reserves in resources, money and time PMBOK® Guide 4th Edition, p 304
You are performing earned value technique on your project. After budget approval, an additional and unexpected cost item has been identified, which made the project more expensive some weeks ago. The item has meanwhile been paid by the project team, and it is expected that for the remaining duration of the project, costs will be as budgeted. In this case, which is the best formula to calculate EaC (Estimate at Completion)? A. EaC = BaC - CV B. EaC = BaC / CPI C. EaC = AC + BtC / CV D. You can not compute the EaC.
A. EaC = BaC - CV PMBOK® Guide 4th Edition, pp 182 (CV = EV - AC) and 184 (EAC = AC + BAC - EV)
Which of the following tools is used to create a risk management plan? A. Risk planning meetings B. Documentation reviews C. Data precision rankings D. Diagramming techniques
A. Risk planning meetings PMBOK® Guide 4th Edition, p 279
9. Your global project is sabotaged by rumors and gossip about the project deliverable. This is an example of: A. Cultural achievability B. Cultural influences with the project team C. Project team mutiny D. Ineffective planning
A. Rumors and gossip can sabotage a project. This is an example of cultural achievability. B and C are incorrect since rumors and gossip may happen internally and externally to the project team. D may be tempting, but the rumors and gossip could happen outside of the effective planning completed by the project manager and the project team.
The scope baseline consists of what? A. Scope statement, WBS, and WBS dictionary B. Cost baseline, quality baseline and schedule baseline C. Configuration management plan and configuration identification document D. Procurement statement of work and project scope statement
A. Scope statement, WBS, and WBS dictionary PMBOK® Guide 4th Edition, p 331
Your project management team includes two external consultants each from a different company. You found that repeated conflicts between the two consultants already slow down project progress and jeopardize achievement of objectives. Which stage of team development can be difficult to overcome in such a situation? A. Storming from Forming, Storming, Norming, Performing B. Panic from Enthusiasm, Panic, Hope, Solution C. Kickoff from Assignment, Kickoff, Training, Communicating D. Frustration from Direction, Frustration, Cooperation, Collaboration
A. Storming from Forming, Storming, Norming, Performing PMBOK® Guide 4th Edition, p 233
Network templates which contain only portions of a network are often referred to as A. Sub-networks or fragment networks B. Subprojects C. Programs D. WBS items
A. Sub-networks or fragment networks PMBOK® Guide 4th Edition, p 141 (6.2.2.4)
During a company event, you had the opportunity to talk to a colleague project manager. He told you that in his current project actual costs are 15% under cumulated costs budgeted for today. What do you think? A. The information given to you by the colleague is not sufficient to assess project performance. B. The project will probably be completed with total costs remaining under budget until the end. C. A significant cost increase during the further course of the project will probably bring the costs back to baseline level. D. Original cost forecasting and budgeting for the project must have been poor to allow this variance.
A. The information given to you by the colleague is not sufficient to assess project performance. PMBOK® Guide 4th Edition, pp 173-174
A project is handled by departments of an organization and expedited by a project coordinator. Which of the following statements is most likely to be true? A. The performing organization is a weak matrix. B. The performing organization is doing "management by projects". C. The performing organization is a strong matrix. D. The performing organization is projectized.
A. The performing organization is a weak matrix. PMBOK® Guide 4th Edition, p 29
You found the following earned value analysis information for a project that was recently closed-out: SPI = 0.7, CPI = 1.0 A. The project has been cancelled while it was executed. At that time the project was behind schedule and on budget. B. he project's deliverables have all been finished. The project came in behind schedule but on budget. C. The project's deliverables have all been finished. The project came in ahead of schedule but on budget. D. The project's deliverables have all been finished. The project came in on schedule but over budget.
A. The project has been cancelled while it was executed. At that time the project was behind schedule and on budget. PMBOK® Guide 4th Edition, p 183
Tracey is the project manager of the KHG Project. Her organization is a classic functional environment. Her level of authority as a project manager can be best described as which of the following? A. Low B. Moderate C. Balanced D. High
A. Tracey will most likely have a low amount of authority in a functional organization structure. Choices B and C are incorrect because they describe the matrix structures. Choice D is incorrect since it is relevant to a projectized structure.
You are project manager in a global project with a team consisting of people from various countries. What can you try to prevent misunderstandings due to cross-cultural differences? A. Use all communication methods available that are suitable for the team and follow up in writing when communicating verbally. Remember that cultural and individual diversity may help project teams solving unforeseen problems during the course of the project. B. When you are about to form a team for your project, keep in mind that some cultures are developed, others are more primitive. Some have values, some not. You should consequently avoid choosing members from countries with cultures that are not similar to your own. C. Cultural dilemmas can prevent any project from being successful. They should therefore be smoothed or suppressed so as to make sure that they cannot disrupt project work. Your effort should concentrate on communication that can help reach that goal. D. As norms regarding communication habits differ significantly across various cultures, communicating between people from different countries should only be done using language. The nonverbal dimension simply bears too many risks.
A. Use all communication methods available that are suitable for the team and follow up in writing when communicating verbally. Remember that cultural and individual diversity may help project teams solving unforeseen problems during the course of the project. Chapter 25 - Teamwork Process—Chapter 25 - Teamwork Process—Global Teams - Crosscultural Communication, in: The Project Management Tool Kit: 100 Tips and Techniques for Getting the Job Done Right by Tom Kendrick http://pmi.books24x7.com/viewer.asp?bookid=4546&chunkid=594080577
What is not the purpose of configuration control when configuration management is applied in a project? A. Verification that the configuration identification for a configuration item is accurate, complete, and will meet specified program needs. B. Ensuring that proposed and approved changes to configuration items are fully analyzed. C. Ensuring that proposed and approved changes to configuration items are fully documented. D. Managing and controlling the frequently requested changes to a project by applying agreed rules.
A. Verification that the configuration identification for a configuration item is accurate, complete, and will meet specified program needs. http://www.pmi.org/PDF/Members/Standards/PS_ProjectConfiguration.pdf pp. 29, 48, 56 ("Configuration control" and "Configuration identification")
Which of the following is generally not regarded to be a motivator according to Frederick Herzberg? A. Working conditions and interpersonal relations B. Responsibility for enlarged task C. Interest in the task D. Recognition for achievement
A. Working conditions and interpersonal relations Chapter 5 - Motivation, in: Management Skills for New Managers by Carol W. Ellis http://pmi.books24x7.com/viewer.asp?bookid=8854&chunkid=588141747
Executing ( Project Human resource Mgt) 9.2
Acquire project team
What are tools and techniques
Actions applied to the inputs to create outputs; examples of tools and techniques are measuring, planning, applying a skill, templates, software, etc.
What is the earned value name for "How much you have spent to date?"
Actual Cost
How do you calculate Planned Value (PV or BCWC)?
Add up the planned value amounts of each activities up to the time period.
Which 4 groups of people does the PMI Code of Ethics and Professional Conduct apply to
All PMI members Nonmembers who hold a PMI certification Nonmembers who apply for a PMI certification Nonmembers who serve PMI in a volunteer capacity
4. A project manager is trying to complete a software development project, but cannot get enough attention for the project. Resources are focused on completing process-related work and the project manager has little authority to properly assign resources. What form of organization must the project manager be working in? A. Functional B. Matrix C. Expediter D. Coordinator
Answer A In a functional organization, the project manager has the least support for the project and has little authority to assign resources. Choices C and D are roles in a weak matrix organization.
21. Company procedures require the creation of a lessons learned document. Which of the following is the BEST use of lessons learned? A. Historical records for future projects B. Planning record for the current project C. Informing the team about what the project manager has done D. Informing the team about the project management plan
Answer A Notice that this question asks about the use of a tool of project management. Many people can learn from a book what a lessons learned document is, but questions like this can more readily be answered if you actually use the tool and know from experience its value. Ask yourself about the other tools of project management. Why are they beneficial? The BEST use of lessons learned is choice A. There are other tools that are better for accomplishing the things listed in the other choices.
1. Four project managers are having lunch together and discussing their projects. Most of the time they are just complaining about how hard projects are to manage in their company. Some complain about the stakeholders and the number of changes they cause. Others talk about how hard it is to get people to cooperate and perform. One project manager wants to focus on the advantages of the matrix-type organization they all work in for their projects. Which of the following would he mention? A. Improved project manager control over resources B. More than one boss for project teams C. Communications are easier D. Reporting is easier
Answer A Remember that if the question doesn't state what it is comparing to, it is comparing to a functional organization.
14. Management by objectives works only if: A. It is supported by management B. The rules are written down C. The project does not impact the objectives D. The project includes the objectives in the project charter
Answer A The best answer is the need for management to support the objectives.
2. Two project managers have just realized that they are in a weak matrix organization and that their power as project managers is quite limited. One figures out that he is really a project expediter and the other realizes he is really a project coordinator. How is a project expediter diferent from a project coordinator? A. The project expediter cannot make decisions B. The project expediter can make more decisions C. The project expediter reports to a higher-level manager D. The project expediter has some authority
Answer A The project coordinator reports to a higher level manager and has authority to make some decisions. The project expediter has no authority to make decisions.
A new project manager is being mentored by a more experienced certified project management professional (PMP). The new project manager is having difficulty finding enough time to manage the project because the product and project scope are being progressively elaborated. The PMP- certified project manager mentions that the basic tools for project management, such as a work breakdown structure, can be used during project executing to assist the project manager. For which of the following can a work breakdown structure be used? A. Communicating with the customer B. Showing calendar dates for each work package C. Showing the functional managers for each team member D. Showing the business need for the project
Answer A Explanation A WBS does not show dates or responsibility assignments (choices B and C). Those are included on the bar chart and possibly in the communications management plan. The business need (choice D) is shown in the project charter. Never thought that a WBS could be shown to the customer? Made you think! Of course it could be used for that purpose. In this situation, the product and project scope are being fine tuned. It would save the project manager time to effectively manage progressive elaboration if the WBS was used to assist. The WBS helps ensure everyone understands the scope of the work.
Outputs of the Plan Risk Responses process include: A. Residual risks, fallback plans, and contingency reserves. B. Risk triggers, contracts, and a risk list. C. Secondary risks, process updates, and risk owners. D. Contingency plans, project management plan updates, and change requests.
Answer A Explanation A risk list (choice B), process updates (choice C), and change requests (choice D) are not outputs of the Plan Risk Responses process. The items in choice A are all outputs of the Plan Risk Responses process, making choice A the correct answer.
You have been assigned to manage the development of an organization's first Web site. The site will be highly complex and interactive, and neither your project team nor the client has much experience with Web site development. The timeline is extremely aggressive. Any delay will be costly for both your firm and the client. You have a project sponsor and have achieved agreement and Sign-off on both the project charter and the project management plan. Client personnel have been kept fully informed of the project's progress through status reports and regular meetings. The project is on schedule and within the budget, and a final perfunctory review has been scheduled. Suddenly you hear that the entire effort may be cancelled because the product developed is totally unacceptable. What is the MOST likely cause of this situation? A. A key stakeholder was not adequately involved in the project. B. The project charter and project management plan were not thoroughly explained or adequately reviewed by the client. C. Communications arrangements were inadequate and did not provide the required information to interested parties. D. The project sponsor failed to provide adequate support for the project.
Answer A Explanation A single high-level executive can end an entire project if he or she is not satisfied with the results, even if that person has, by choice, been only tangentially involved in the project. It is critical to ensure that all of the final decision makers have been identified early in a project in order to ensure that their concerns are addressed.
Your project has a medium amount of risk and is not very well defined. The sponsor hands you a project charter and asks you to confirm that the project can be completed within the project cost budget. What is the BEST method to handle this? A. Build the estimate in the form of a range of possible results. B. Ask the team members to help estimate the cost based on the project charter. C. Based on the information you have, calculate a parametric estimate. D. Provide an analogous estimate based on past history.
Answer A Explanation Accuracy is always important, but since the project charter has just been received, the project has not yet been planned. Therefore, although some of the choices are not blatantly wrong, it is best to estimate in a range.
During project executing, a team member comes to the project manager because he is not sure of what work he needs to accomplish on the project. Which of the following documents contain detailed descriptions of work packages? A. WBS dictionary B. Activity list C. Project scope statement D. Scope management plan
Answer A Explanation Activity lists (choice B) may list the work package they relate to, but they do not contain detailed descriptions of the work packages. The project scope statement (choice C) defines the project scope, but it does not describe the work a team member is assigned. The scope management plan (choice D) describes how scope will be planned, managed, and controlled. It does not include a description of each work package. The WBS dictionary defines each element in the WBS. Therefore, descriptions of the work packages are in the WBS dictionary.
Which of the following activities occurs during the Plan Procurements process? A. Make-or-buy decisions B. Answering sellers' questions about the bid documents C. Advertising D. Proposal evaluation
Answer A Explanation Answering sellers' questions (choice B), advertising (choice C), and proposal evaluation (choice D) occur during the Conduct Procurements process.
Which of the following leadership traits is MOST important for a project manager? A. Communication B. Team building C. Technical expertise D. Project control
Answer A Explanation As project managers spend 90 percent of their time communicating, the correct choice must be A.
Which of the following is a characteristic of project management processes? A. Iterative B. Unique C. Unnecessary D. Standardized
Answer A Explanation As the project life cycle progresses, more information becomes available, allowing the team to manage the project to a more detailed level.
During which project management process group are budget forecasts created? A. Monitoring and controlling B. Planning C. Initiating D. Executing
Answer A Explanation Budget forecasts are an output of Control Costs, which is part of monitoring and controlling.
Which of the following is an advantage of centralized contracting? A. Increased expertise B. Easier access C. No home D. More loyalty to the project
Answer A Explanation Centralized contracting usually means harder access and less loyalty. Therefore choices B and D are disadvantages. The fact that procurement managers have no home when they're not working on a project (choice C) is also a disadvantage.
Close Procurements is different from Close Project or Phase in that Close Procurements: A. Occurs before Close Project or Phase. B. Is the only one to involve the customer. C. Includes the return of property. D. May be done more than once for each contract.
Answer A Explanation Choice B cannot be correct since the customer may be involved in lessons learned and procurement audits and would certainly be involved in formal acceptance. Choice C cannot be correct since both Close Procurements and Close Project or Phase involve the return of property. Close Procurements is done only once for each contract, so choice D cannot be correct. Choice A is correct because contracts are closed out before the project is closed out with the Close Project or Phase process.
The project CPI is 1.02, the benefit cost ratio is 1.7, and the latest round of performance reviews identified few needed adjustments. The project team was co-located into a new building when the project started. Everyone commented on how excited they were to have all new facilities. The sponsor is providing adequate support for the project, and few unidentified risks have occurred. In an attempt to improve performance, the project manager spends part of the project budget on new chairs for the team members and adds the term senior to each team member's job title. Which of the following is the MOST correct thing that can be said of this project or the project manager? A. The project manager has misunderstood Herzberg's theory. B. The project is slowly spending more money than it should. The project manager should begin to watch cost more carefully. C. The performance review should be handled better to find more adjustments. D. The project manager should use good judgment to determine which variances are important.
Answer A Explanation Choice B includes the concept of cost to trick you into selecting it if you are unsure of the real answer. There is no indication that the costs are trending in any particular direction. There is no reason to think that performance reviews should turn up more adjustments (choice C). The project manager should always use good judgment (choice D), but nothing in this question talks about judgment regarding variances, so this cannot be the best choice. In this situation, the project manager is making great working conditions better. According to Herzberg's theory, fixing bad working conditions will help you to motivate, but making good working conditions better will not improve motivation. You need to focus on the motivating agents and not the hygiene factors.
A project manager gathered data to perform earned value calculations on his project. He used the results to report to management that the project is under budget and on schedule. After reporting this information, he discovered that the base figures he used in the calculations were incorrect, as they came from an old copy of the project file which had not been updated. What should he do now? A. He should contact management to make them aware of the error, give the correct information, and explain how he made the mistake. B. He should contact management and tell them to expect some changes in the next reporting period, and that things are starting to look gloomy. C. He should use the correct figures to calculate the information when it is time for the next report and ignore the fact the he reported incorrect information. D. He should tell management that the data he received from team members was incorrect and thus the report was not accurate.
Answer A Explanation Choice B is not the truth of the matter. Although things may be gloomy, this is not a new development, since the report was based on old data. Choice C is not right since he is not admitting his mistake, the ethical thing to do, and choice D is blaming someone else for his own error. Choice A is correct since the ethical thing to do is to acknowledge and take responsibility for the error.
The previous project manager for your project managed it without much project organization. There is a lack of management control and no clearly defined project deliverables. Which of the following would be the BEST choice for getting your project better organized? A. Adopt a life cycle approach to the project. B. Develop lessons learned for each phase. C. Develop specific work plans for each work package. D. Develop a description of the product of the project.
Answer A Explanation Choice B would help improve subsequent phases, but would do nothing for control and deliverables. Choice C would help control each phase, but would not control the integration of the phases into a cohesive whole. Choice D would help, but not help both control and deliverables for each phase. Effective project management requires a life cycle approach to running the project. Choice A is the only answer that covers both control and deliverables.
You have just joined the project management office after five years of working on projects. One of the things you want to introduce to your company is the need to create and utilize WBSs. Some of the project managers are angry that you are asking them to do extra work. Which of the following would be the BEST thing you could tell the project managers to convince them to use WBSs? A. Tell them it will prevent work from slipping through the cracks. B. Tell them that it is not needed. C. Tell them it is required only if the project involves contracts. D. Tell them it is the only way to identify risks.
Answer A Explanation Choice C is not generally true. Every project must have a WBS. Risks can be identified using various methods. Therefore, choice D is an incorrect statement and not the best answer. Choice A, preventing work from being forgotten (slipping through the cracks) is ONE of the reasons the tool is used.
Your employee is three days late with a report. Five minutes before the meeting where the topic of the report is to be discussed, she hands you the report. You notice some serious errors in it. What should you do? A. Cancel the meeting and reschedule when the report is fixed. B. Go to the meeting and tell the other attendees there are errors in the report. C. Force the employee to do the presentation and remain silent as the other attendees find the errors. D. Cancel the meeting and rewrite the report yourself.
Answer A Explanation Choice C is penalizing the employee and making her lose face. Choices B, C, and D all involve decreasing the employee's morale. Therefore, the best choice, and the one that does not waste everyone's time, is to cancel the meeting, get to the root cause of the problem, and then fix it and reschedule the meeting (partially mentioned in choice A).
A project manager is working with a vendor on a project when she learns that the vendor has bribed a subcontractor to work on this project instead of fulfilling previous commitments to other projects. What should the she do? A. She should report the offense to management and the project managers of the affected projects. B. She should not do anything because this is the vendor's problem. The project manager herself didn't do anything wrong. C. She should report this to other subcontractors so they know they could get more money from the vendor. D. She should resign from the project so as to remove herself from this type of activity, but keep it to herself rather than cause problems.
Answer A Explanation Choices Band C do not inform management and the other project managers affected, so are not the best way to deal with this. Not reporting this knowledge (choice D) to the appropriate people is unethical. Choice A is correct because it is the responsibility of the project manager to report unethical behavior to management and those affected.
What is one of the KEY objectives during contract negotiations? A. Obtain a fair and reasonable price. B. Negotiate a price under the seller's estimate. C. Ensure that all project risks are thoroughly delineated. D. Ensure that an effective communications management plan is established.
Answer A Explanation Choices C and D are good ideas, but not the key objective. Negotiations should be win/win, so choice B is not the best choice. A fair and equitable price (choice A) will create a good working atmosphere. Otherwise, you will pay later, on change orders.
Linear programming is an example of what type of project selection criteria? A. Constrained optimization B. Comparative approach C. Benefit measurement D. Impact analysis
Answer A Explanation Constrained optimization uses mathematical models. Linear programming is a mathematical model.
The difference between the cost baseline and the cost budget can be BEST described as: A. The management reserve. B. The contingency reserve. C. The project cost estimate. D. The cost account.
Answer A Explanation Cost accounts are included in the project cost estimate, and the contingency reserve is added to that to come up with the cost baseline. Thereafter the management reserve is added to come up with the cost budget. Therefore, only choice A is correct.
Which of the following risk events is MOST likely to interfere with attaining a project's schedule objective? A. Delays in obtaining required approvals B. Substantial increases in the cost of purchased materials C. Contract disputes that generate claims for increased payments D. Slippage of the planned post-implementation review meeting
Answer A Explanation Cost increases (choice B) and contract disputes (choice C) will not necessarily interfere with schedule. Notice the words post-implementation in choice D. It will not definitely interfere with the project schedule. Choice A is the only one that deals with a time delay.
All of the following occur during the planning process group EXCEPT: A. Develop Project Charter. B. Create WBS. C. Estimate Costs. D. Sequence Activities.
Answer A Explanation Develop Project Charter (choice A) occurs in the initiating process group.
A project manager for a small construction company has a project that was budgeted for US $130,000 over a six-week period. According to her schedule, the project should have cost US $60,000 to date. However, it has cost US $90,000 to date. The project is also behind schedule, because the original estimates were not accurate. Who has the PRIMARY responsibility to solve this problem? A. Project manager B. Senior management C. Project sponsor D. Manager of the project management office
Answer A Explanation Did you get lost looking at all the numbers presented in this question? Notice that there are no calculations required, simply an understanding of what the problem is. This question describes schedule management, which is a responsibility of the project manager.
You have just been assigned as the project manager for a new telecommunications project that is entering the second phase of the project. There appear to be many risks on this project, but no one has evaluated them to assess the range of possible project outcomes. What needs to be done? A. Plan Risk Management B. Perform Quantitative Risk Analysis C. Plan Risk Responses D. Monitor and Control Risks
Answer A Explanation Did you notice that this project has already begun? Risk management is a required element of project management. You must complete the risk management process, starting with the Plan Risk Management process, making choice A the correct choice.
A project manager is creating a risk response plan. However, every time a risk response is suggested, another risk is identified that is caused by the response. Which of the following is the BEST thing for the project manager to do? A. Document the new risks and continue the Plan Risk Responses process. B. Make sure the project work is better understood. C. Spend more time making sure the risk responses are clearly defined. D. Get more people involved in the Identify Risks process, since risks have been missed.
Answer A Explanation Did you realize this question describes secondary risks? Identifying secondary risks is good and expected while completing the Plan Risk Responses process. With that in mind, the best thing to do is choice A.
Earned value analysis is an example of: A. Performance reporting. B. Planning control. C. Ishikawa diagrams. D. Integrating the project components into a whole.
Answer A Explanation Earned value analysis is a great reporting tool. With it, you can show where you stand on budget and schedule as well as provide forecasts for the rest of the project.
The project is just starting out and consists of people from 14 different departments. The project charter was signed by one person and contains over 30 major requirements that must be met on the project. The sponsor has informed the project manager that the SPI must be kept between 0.95 and 1.1. A few minutes of investigation resulted in the identification of 34 stakeholders, and the schedule objectives on the project are constrained. A project manager has just been hired. Which of the following types of project management power will BEST help the project manager gain the cooperation of others? A. Formal B. Referent C. Penalty D. Expert
Answer A Explanation Generally, the best forms of power are reward or expert. The project manager has not had time to become a recognized expert in the company (choice D) and reward is not included as a choice here. This leaves formal power (choice A) as the only logical answer.
All of the following are parts of the team's stakeholder management effort EXCEPT: A. Giving stakeholders extras. B. Identifying stakeholders. C. Determining stakeholders' needs. D. Managing stakeholders' expectations.
Answer A Explanation Giving stakeholders extras is known as gold plating. This is not effective stakeholder or quality management.
The high-level project schedule constraints have just been determined. What project management process group are you in? A. Initiating B. Planning C. Executing D. Monitoring and controlling
Answer A Explanation High-level project constraints are determined during the initiating process group.
The engineering department has uncovered a problem with the cost accounting system and has asked the systems department to analyze what is wrong and fix the problem. You are a project manager working with the cost accounting programs on another project. Management has issued a change request to the change control board to add the new work to your project. Your existing project has a cost performance index (CPI) of 1.2 and a schedule performance index (SPI) of 1.3 so you have some room to add work without delaying your existing project or going over budget. However, you cannot see how the new work fits within the project charter for your existing project. After some analysis, you determine that the new work and existing work do not overlap and can be done concurrently. They also require different skill sets. Which of the following is the BEST thing to do? A. Develop a project charter. B. Reestimate the project schedule with input from the engineering department. C. Verify the scope of the new work with the help of the stakeholders. D. Identify specific changes to the existing work.
Answer A Explanation How long did it take you to read this question? Expect long-winded questions on the exam. Take another look at the choices before you continue reading. Did you notice that each of the choices occurs during a different part of the project management process? This question is essentially asking if the new work should be added to the existing project. There may be many business reasons to try to do this, but from a project management perspective, major additions to the project are generally discouraged. In this case, the question is trying to imply that the new work is a self-contained unit of work, has no overlap with the existing work and needs a different skill set. Therefore, it is generally best to make it a new project. The first step to answering this question is to realize that the work should be a separate project. The second step is to look at the choices and see which relates to initiating a new project. Choice B sounds like the best choice, but only if you did not realize that the new work should be a separate project. Choice C is done during project monitoring and controlling. Choice D is done during project executing. The project charter is developed in the initiating process group.
What type of contract do you NOT want to use if you do not have enough labor to audit invoices? A. Cost plus fixed fee (CPFF) B. Time & material (T&M) C. Fixed price (FP) D. Fixed price incentive fee (FPIF)
Answer A Explanation If you got this question wrong, reread it. You need to audit invoices in all contract types, so how do you choose? Look for the answer that is BEST. In this case, it would be the choice that requires the greatest effort. A T&M contract (choice B) should be for small dollars and short duration (remember that a T&M contract has no incentive to finish), so it does not have a great risk. Choices C and D cannot be best because the risk to the buyer is limited-they are still only going to pay the contract price. In a CPFF contract, the buyer pays all costs. The seller could be charging the buyer for costs that should not be allocated to the buyer. Because of the size and dollar amount of these type of contracts and because the risk to the buyer is great, CPFF contracts need the most auditing. Since this question asked for which one you do not want to use, the answer must be choice A.
The sponsor and the project manager are discussing what type of contract the project manager plans to use on the project. The buyer points out that the performing organization spent a lot of money hiring a design team to come up with the design. The project manager is concerned that the risk for the buyer be as small as possible. An advantage of a fixed price contract for the buyer is: A. Cost risk is lower. B. Cost risk is higher. C. There is little risk. D. Risk is shared by all parties.
Answer A Explanation If you had trouble with this one, you need to remember that the questions are asked from the buyer's perspective unless otherwise noted. In this case, the seller has the most cost risk, and the buyer's risk is lower.
Risk tolerances are determined in order to help: A. The team rank the project risks. B. The project manager estimate the project. C. The team schedule the project. D. Management know how other managers will act on the project.
Answer A Explanation If you know the tolerances of the stakeholders, you can determine how they might react to different situations and risk events. You use this information to help assign levels of risk on each work package or activity.
The installation project has a CPI of 1.03 and an SPI of 1.0. There are 14 team members, and each team member had input into the final project management plan. The customer has accepted the three deliverables completed so far without complaint and the responsibility assignment matrix has not changed since the project began. The project is being completed in a matrix environment and there are no contracts needed for the project. Though the sponsor is happy with the status of the project, one of the team members is always complaining about how much time his project work is taking. Which of the following would be the BEST thing for the project manager to do? A. Review the reward system for the project. B. Try to improve schedule performance of the project. C. Meet with the customer to try to extend the schedule. D. Gain formal acceptance in writing from the customer.
Answer A Explanation Improving schedule performance (choice B) relates to getting the project completed sooner. Though it would seem to always be a good idea to improve schedule performance, this project's performance is fine. The schedule has been approved as it is. It would be better for the project manager to spend more time controlling the project to make sure it finishes according to plan than to improve schedule performance. If you chose C, ask yourself why. There is nothing wrong with the schedule performance of the project that would require an extension. Did you think that the best way to deal with the complaining stakeholder was to give him more time? How do you know the team member's activities are on the critical path? It is always important to gain formal acceptance from the customer, as it provides an opportunity for the team to check if everything is going well. It is a good idea to get such acceptance in writing. Choice D could be done, but there is a more important problem that takes precedence here. Read on. The only thing glaringly wrong in this situation is that the team member is complaining. If you read the situation completely, you will notice that the team member was involved and approved the project management plan, including his own involvement in the project. Since the responsibility assignment matrix has not changed, the team member has not even been assigned different duties since the project began. There must be something else causing the team member to complain. The project manager should investigate and find out what part of the reward system is ineffective.
With which type of contract is the seller MOST concerned about project scope? A. Fixed price B. Cost plus fixed fee C. Time and material D. Purchase order
Answer A Explanation In a fixed price contract, the seller has the cost risk and therefore wants to completely understand the procurement statement of work before bidding.
A project manager is trying to complete a software development project, but cannot get enough attention for the project. Resources are focused on completing process-related work and the project manager has little authority to properly assign resources. What form of organization must the project manager be working in? A. Functional B. Matrix C. Expediter D. Coordinator
Answer A Explanation In a functional organization, the project manager has the least support for the project and has little authority to assign resources. Choices C and D are roles in a weak matrix organization.
Who has the MOST power in a projectized organization? A. The project manager B. The functional manager C. The team D. They all share power
Answer A Explanation In a projectized organization, the entire company is organized by projects, giving the project manager the most power.
Integration is done by the: A. Project manager. B. Team. C. Sponsor. D. Stakeholders.
Answer A Explanation Integration is a key responsibility of the project manager, so choice A is the best answer.
Which of the following represents the estimated value of the work actually accomplished? A. Earned value (EV) B. Planned value (PV) C. Actual cost (AC) D. Cost variance (CV)
Answer A Explanation It can be confusing to differentiate earned value terms from each other. The definition presented here is for EV or earned value, so choice A is the best choice.
The project manager and project sponsor are discussing the project costs and whether it is better to have their own company do part of the project or hire another company to do the work. If they asked for your opinion, you might say it would be better to do the work yourself if: A. There is a lot of proprietary data. B. You have the expertise but you do not have the available manpower. C. You do not need control over the work. D. Your company resources are limited.
Answer A Explanation It is generally better to do the work yourself if using an outside company means you have to turn over proprietary data to the other company.
The management theory that states that all people can direct their own efforts is: A. Theory Y. B. Herzberg's theory. C. Maslow's hierarchy. D. Theory X.
Answer A Explanation Know the difference between Theory X and Theory Y.
Your cost forecast shows that you will have a cost overrun at the end of the project. Which of the following should you do? A. Eliminate risks in estimates and reestimate. B. Meet with the sponsor to find out what work can be done sooner. C. Cut quality. D. Decrease scope.
Answer A Explanation Look for the choice that would have the least negative impact in this situation. You would not need to meet with the sponsor to do choice B. Choices C and D always have negative effects. The choice with the least negative impact is Choice A.
The purpose of status meetings is to: A. Exchange information about the project. B. Have team members report on what they are doing C. Issue work authorizations D. Confirm the accuracy of the costs submitted by the team.
Answer A Explanation Many people select choice B, but the question asks for the purpose of such meetings. Team members' reporting on what they are doing may best be done outside of meetings. The main purpose is choice A.
Which of the following can create the MOST misinterpretation in the project scope statement? A. Imprecise language B. Poor pattern, structure, and chronological order C. Small variation in size of work packages or detail of work D. Too much detail
Answer A Explanation Much of the work on the project is dictated by the project scope statement. Any imprecision in such a key document will lead to differing interpretations.
Monte Carlo analysis is used to: A. Get an indication of the risk involved in the project. B. Estimate an activity's length. C. Simulate the order in which activities occur. D. Prove to management that extra staff is needed.
Answer A Explanation Notice how many choices are half right? Monte Carlo could help you know that an estimate for an activity needs to change, but not what the activity estimate should be (choice B). Monte Carlo is a simulation (choice C), but it simulates time, not order of activities. Monte Carlo can be used to prove things to management (choice D), but its main focus deals with time, not staff. Risk can be assessed using Monte Carlo analysis (choice A). By considering the inputs to the PERT estimates and the network diagram, you can obtain a better overview of the overall project risk.
A routine audit of a cost reimbursable (CR) contract determines that overcharges are being made. If the contract does not specify corrective action, the buyer should: A. Continue to make project payments. B. Halt payments until the problem is corrected. C. Void the contract and start legal action to recover overpayments. D. Change the contract to require more frequent audits.
Answer A Explanation Notice that choice B is really saying halt ALL payments. Halting all payments would be a breach of contract on the buyer's part. Choice C is too severe and cannot be done unilaterally. Choice D does not solve the problem presented. A choice that said, Halt payments on the disputed amount would probably be the best answer, but it is not offered. The best answer is A.
During project executing, a major problem occurs that was not included in the risk register. What should you do FIRST? A. Create a workaround. B. Reevaluate the Identify Risks process. C. Look for any unexpected effects of the problem. D. Tell management.
Answer A Explanation Notice that this is a problem that has occurred, rather than a problem that has just been identified. Following the right process is part of professional and social responsibility. Because an unidentified problem or risk occurred, it is important to perform choices Band C. However, they are not your first choices. You might need to inform management (choice D) but this is reactive, not proactive, and not the first thing you should do.
All of the following statements concerning procurement documents are incorrect EXCEPT: A. Well-designed procurement documents can simplify comparison of responses. B. Procurement documents must be rigorous with no flexibility to allow consideration of seller suggestions. C. In general, bid documents should not include evaluation criteria. D. Well-designed procurement documents do not include a procurement statement of work.
Answer A Explanation Often the seller is required to inform the buyer of anything that is missing or unclear in the procurement documents (choice B). It is in the buyer's best interest to discover missing items, since it will save the buyer money and trouble to correct the problem early. Procurement documents must contain terms and conditions and evaluation criteria (choice C) as well as all the work that is to be done, including the procurement statement of work (choice D). This is so the seller can price the project and know what is most important to the buyer. Choice A is an important point for the real world and is the best answer.
A team member from research and development tells you that her work is too creative to provide you with a fixed single estimate for the activity. You both decide to use the labor hours per installation from past projects to predict the future. This is an example of which of the following? A. Parametric estimating B. Three-point estimating C. Analogous estimating D. Monte Carlo analysis
Answer A Explanation Past history is being used to calculate an estimate. Monte Carlo (choice D) relates to what-if analysis. Choice B uses three time estimates per activity. One could use past projects to come up with the estimate (choice C), but the best answer is choice A because an estimate such as hours per installation is a chief characteristic of parametric estimates.
Verify Scope is closely related to: A. Perform Quality Control. B. Sequence Activities. C. Perform Quality Assurance. D. Time Management.
Answer A Explanation Perform Quality Control checks for correctness, and Verify Scope checks for acceptance.
Closure includes all of the following EXCEPT: A. Determining performance measures. B. Turning over the product of the project. C. Documenting the degree to which each project phase was properly closed after its completion. D. Updating the company's organizational process assets.
Answer A Explanation Performance measures are determined earlier in the project so they can be used to measure progress during the project, making choice A the only correct answer to this question.
You are in the middle of a new product development for your publicly traded company when you discover that the previous project manager made a US $3,000,000 payment that was not approved in accordance with your company policies. Luckily, the project cost performance index (CPI) is 1.2. What should you do? A. Contact your manager. B. Put the payment in an escrow account. C. Bury the cost in the largest cost center available. D. Ignore the payment.
Answer A Explanation Project managers must deal with potentially unethical situations like the situation described. Choices Band C hide it. Choice D ignores it. Only choice A deals with it.
A team member is visiting the manufacturing plant of one of the suppliers. Which of the following is the MOST important thing to be done in any telephone calls the project manager might make to the team member? A. Ask the team member to repeat back what the project manager says. B. Review the list of contact information for all stakeholders. C. Ask the team member to look for change requests. D. Review the upcoming meeting schedule.
Answer A Explanation Questions like this can drive one crazy. Although it asks for the most important thing, there are many choices that are reasonably correct. In questions like this, look for the most immediate need. In this case, the team member is in a manufacturing environment. That means that communications will most likely be blocked by noise. In order to have the issue at hand taken care of, the communication, it is BEST for the project manager to use choice A.
Project performance appraisals are different from team performance assessments in that project performance appraisals focus on: A. How an individual team member is performing on the project. B. An evaluation of the project team's effectiveness. C. A team-building effort. D. Reducing the staff turnover rate.
Answer A Explanation Questions like this can drive you crazy on the exam because it is easy to get confused. The best thing to do is to look at the two terms used here (project performance appraisals and team performance assessment) and review in your mind what each means BEFORE looking at the choices. Choices B, C, and D list aspects of team performance assessments. Only choice A is correct. Project performance appraisals deal with how each team member is performing work, rather than how well the team is working together.
Four project managers are having lunch together and discussing their projects. Most of the time they are just complaining about how hard projects are to manage in their company. Some complain about the stakeholders and the number of changes they cause. Others talk about how hard it is to get people to cooperate and perform. One project manager wants to focus on the advantages of the matrix-type organization they all work in for their projects. Which of the following would he mention? A. Improved project manager control over resources B. More than one boss for project teams C. Communications are easier D. Reporting is easier
Answer A Explanation Remember that if the question doesn't state what it is comparing to, it is comparing to a functional organization.
The project manager is looking at the project's resource needs and lessons learned from past projects. This information causes the project manager to be concerned about the ability to acquire enough resources for the project in six months. Which of the following would be the LEAST effective preventive action? A. Make sure functional managers have a copy of the resource histogram. B. Show the sponsor the data, and explain the project manager's concern. C. Determine metrics to use as an early warning sign that resources will not be available. D. Ask functional managers for their opinions.
Answer A Explanation Sending data without pointing out the issue (choice A) does not mean the communication will be adequately decoded by the recipient. The other choices are more effective communication in this instance.
Stakeholders can be identified in which project management process groups? A. Initiating, planning, executing, monitoring and controlling, and closing B. Initiating and planning C. Planning and monitoring and controlling D. Monitoring and controlling and closing
Answer A Explanation Stakeholders can be identified throughout the project management process groups. However, the earlier stakeholders are identified, the better for the project. If all of the stakeholders' needs and requirements are taken into account before plans are finalized and project work is begun, fewer changes will be needed later in the project, when they will be more costly.
When do stakeholders have the MOST influence on a project? A. At the beginning of the project B. In the middle of the project C. At the end of the project D. Throughout the project
Answer A Explanation Stakeholders must be identified and involved at the beginning of the project, in order to determine their requirements and expectations. Remember that if this is not done early, the results may be expensive changes and/or dissatisfaction later in the project.
Which of the following sequences represents straight line depreciation? A. $100,$100,$100 B. $100,$120,$140 C. $100,$120,$160 D. $160, $140, $120
Answer A Explanation Straight line depreciation uses the same amount each time period.
The project charter for a project was approved for planning and you have just been assigned as project manager. Realizing that project planning is an ongoing effort throughout the project, which processes are you MOST likely to combine? A. Create WBS and Define Activities B. Estimate Activity Durations and Develop Schedule C. Develop Human Resource Plan and Estimate Costs D. Estimate Costs and Determine Budget
Answer A Explanation The Create WBS process consists of subdividing major project deliverables (scope) into smaller, more manageable work packages. The Define Activities process defines the activities that must take place to produce those deliverables.
The construction phase of a new software product is near completion. The next phases are testing and implementation. The project is two weeks ahead of schedule. What should the project manager be MOST concerned with before moving on to the final phase? A. Verify Scope B. Control Quality C. Create Performance Reports D. Control Costs
Answer A Explanation The Verify Scope process deals with acceptance by the customer. Without this acceptance, you will not be able to move into the next project phase.
Management by objectives works only if: A. It is supported by management. B. The rules are written down. C. The project does not impact the objectives. D. The project includes the objectives in the project charter.
Answer A Explanation The best answer is the need for management to support the objectives.
Management tells a project manager to subcontract part of the project to a company that management has worked with many times. Under these circumstances, the project manager should be MOST concerned about: A. Making sure the company has the qualifications to complete the project. B. Meeting management expectations of time. C. The cost of the subcontracted work. D. The contract terms and conditions.
Answer A Explanation The first thing that should come to mind is whether this is an ethical situation and whether it violates any company rules or laws. If it does not violate any of these, it would be best to check qualifications (choice A). There is no justification to rate choices B, C, or D higher than any other choice.
An output of the Close Project or Phase process is the creation of: A. Project archives. B. A project charter. C. A project management plan. D. A risk analysis plan.
Answer A Explanation The project charter (choice B) is created in initiating. The project management plan (choice C) is an output of the planning process group. You have not seen the term risk analysis plan (choice D) in this book, so it is unlikely to be the best answer.
Two project managers have just realized that they are in a weak matrix organization and that their power as project managers is quite limited. One figures out that he is really a project expediter and the other realizes he is really a project coordinator. How is a project expediter different from a project coordinator? A. The project expediter cannot make decisions. B. The project expediter can make more decisions. C. The project expediter reports to a higher-level manager. D. The project expediter has some authority.
Answer A Explanation The project coordinator reports to a higher-level manager and has authority to make some decisions. The project expediter has no authority to make decisions.
The person who should be in control of the project during project planning is the: A. Project manager. B. Team member. C. Functional manager. D. Sponsor.
Answer A Explanation The project manager should be named early in the project, during project initiating if possible.
Which of the following is an output of the Collect Requirements process? A. Requirements traceability matrix B. Project scope statement C. Work breakdown structure D. Change requests
Answer A Explanation The project scope statement (choice B) is an output of the Define Scope process. The work breakdown structure (choice C) is an output of the Create WBS process. Change requests (choice D) are an output of the Verify Scope and Control Scope processes.
The project status report is an example of which type of communication? A. Formal written communication B. Formal verbal communication C. Informal written communication D. Informal verbal communication
Answer A Explanation The project status needs to be known by many people. Therefore, it is best to make this type of communication in writing so that it can be transmitted to many people. It is also formal in that it is an official report of the project. Therefore, choice A is the best answer.
You are a project manager on a US $5,000,000 software development project. While working with your project team to develop a network diagram, you notice a series of activities that can be worked in parallel but must finish in a specific sequence. What type of activity sequencing method is required for these activities? A. Precedence diagramming method B. Arrow diagramming method C. Critical path method D. Operational diagramming method
Answer A Explanation The question implies a finish-to-finish relationship between activities. The arrow diagramming method (choice B) does not support these types of relationships. Choice C is not a diagramming method, and choice D is a made-up term.
You have just been assigned as project manager for a large telecommunications project. This one- year project is about halfway done. The project team consists of 5 sellers and 20 of your company's employees. You want to understand who is responsible for doing what on the project. Where would you find such information? A. Responsibility assignment matrix B. Resource histogram C. Bar chart D. Project organization chart
Answer A Explanation The responsibility assignment matrix maps who will do the work. The resource histogram (choice B) shows the number of resources used in each time period. In its pure form, a bar chart (choice C) shows only activity and calendar date. An organizational chart (choice D) shows who reports to whom.
All of the following are parts of the scope baseline EXCEPT the: A. Scope management plan. B. Project scope statement. C. Work breakdown structure. D. WBS dictionary.
Answer A Explanation The scope management plan is not part of the scope baseline.
If the optimistic estimate for an activity is 12 days, and the pessimistic estimate is 18 days, what is the standard deviation of this activity? A. 1 B. 1.3 C. 6 D. 3
Answer A Explanation The standard deviation is computed by (P - 0)/6. Therefore, the answer is (18 - 12)/6 = 6/6 = 1.
To control the schedule, a project manager is reanalyzing the project to predict project duration. She does this by analyzing the sequence of activities with the least amount of scheduling flexibility. What technique is she using? A. Critical path method B. Flowchart C. Precedence diagramming D. Work breakdown structure
Answer A Explanation There are only two choices related to scheduling: A and C. Choice C, however, is a diagramming technique that deals with the relationship between activities, not schedule flexibility.
A project has a tight budget when you begin negotiating with a seller for a piece of equipment. The seller has told you that the equipment price is fixed. Your manager has told you to negotiate the cost with the seller. What is your BEST course of action? A. Make a good faith effort to find a way to decrease the cost. B. Postpone negotiations until you can convince your manager to change his mind. C. Hold the negotiations, but only negotiate other aspects of the project. D. Cancel the negotiations.
Answer A Explanation There is always a way to decrease costs on the project. How about offering to feature the seller in your next television ad? The best choice is A.
Conflict resolution techniques that may be used on a project include confronting, smoothing, forcing, and: A. Withdrawing. B. Directing. C. Organizing. D. Controlling.
Answer A Explanation There is always the option to simply postpone dealing with the issue until later. This is withdrawing.
Early in the life of your project, you are having a discussion with the sponsor about what estimating techniques should be used. You want a form of expert judgment, but the sponsor argues for analogous estimating. It would be BEST to: A. Agree to analogous estimating, as it is a form of expert judgment. B. Suggest life cycle costing as a compromise. C. Determine why the sponsor wants such an accurate estimate. D. Try to convince the sponsor to allow expert judgment because it is typically more accurate.
Answer A Explanation This is a tricky question. In order to pick the best answer, you need to realize that analogous estimating is a form of expert judgment. Notice choice C, determine why;' sounds like a good idea, but look at the rest of the sentence. Analogous estimates are not accurate. Reading every word of this choice helps eliminate it.
You are about to take over a project from another project manager and find out the following information about the project. Activity Z has an early start (ES) of day 15 and a late start (LS) of day 20. Activity Z is a difficult activity. The cost performance index (CPI) is 1.1. The schedule performance index (SPI) is 0.8. There are 11 stakeholders on the project. Based on this information, which of the following would you be the MOST concerned about? A. Schedule B. Float C. Cost D. The number of available resources
Answer A Explanation This is one of those questions that combines topics from various knowledge areas. Did you fall into the trap of calculating the float for Z? The amount of float for one activity and the number of stakeholders does not tell you anything in this case, so choices Band D cannot be the best answers. The CPI is greater than one and the SPI is less than one. Therefore, the thing to be most worried about would be schedule.
The cost performance index (CPI) of a project is 0.6 and the schedule performance index (SPI) is 0.71. The project has 625 work packages and is being completed over a four-year period. The team members are very inexperienced, and the project received little support for proper planning. Which of the following is the BEST thing to do? A. Update risk identification and analysis. B. Spend more time improving the cost estimates. C. Remove as many work packages as possible. D. Reorganize the responsibility assignment matrix.
Answer A Explanation This project has deviated so far from the baseline that updated risk identification and risk analysis should be performed.
A project team is creating a project management plan when management asks them to identify project risks and provide some form of qualitative output as soon as possible. What should the project team provide? A. Prioritized list of project risks B. Risk triggers C. Contingency reserves D. Probability of achieving the time and cost objectives
Answer A Explanation This question essentially asks, What is an output of the Perform Qualitative Risk Analysis process? Only Choice A meets that criteria. Choices Band C are parts of the Plan Risk Responses process. Choice D occurs during the Perform Quantitative Risk Analysis process.
During the Plan Risk Management process, your team has come up with 434 risks and 16 major causes of those risks. The project is the last of a series of projects that the team has worked on together. The sponsor is very supportive, and a lot of time was invested in making sure the project work was complete and signed off by all key stakeholders. During project planning, the team cannot come up with an effective way to mitigate or insure against a risk. It is not work that can be outsourced, nor can it be deleted. What would be the BEST solution? A. Accept the risk. B. Continue to investigate ways to mitigate the risk. C. Look for ways to avoid the risk. D. Look for ways to transfer the risk.
Answer A Explanation This question relates real-world situations to risk types. Did you realize that the entire first paragraph is extraneous? Based on the question, you cannot delete the work to avoid it, nor can you insure or outsource to transfer the risk. This leaves acceptance as the only correct choice.
Which of the following is CORRECT? A. The critical path helps prove how long the project will take. B. There can be only one critical path. C. The network diagram will change every time the end date changes. D. A project can never have negative float.
Answer A Explanation This question tests your knowledge about a number of topics. There can often be more than one critical path (choice B) but you might adjust to decrease risk and have only one critical path. Choice C uses the word will. The network diagram may change or it may not, depending on the amount of schedule reserve and the reason for the change to the schedule. You can have negative float (choice D) if you are behind schedule. Only choice A is correct.
What does a resource histogram show that a responsibility assignment matrix does not? A. Time B. Activity C. Interrelationships D. The person in charge of each activity
Answer A Explanation Time is shown on a schedule or bar chart. The responsibility assignment matrix maps specific resources against the work packages from the WBS. On a resource histogram, the use of resources is shown individually or by groups over time.
In a fixed price (FP) contract, the fee or profit is: A. Unknown. B. Part of the negotiation involved in paying every invoice. C. Applied as a line item to every invoice. D. Determined with the other party at the end of the project.
Answer A Explanation To the seller, it is known, but this question is from the buyer's perspective. You do not know what profit the seller included in the contract.
A manager has responsibility for a project that has the support of a senior manager. From the beginning, you have disagreed with the manager as to how the project should proceed and what the deliverables should be. You and she have disagreed over many issues in the past. Your department has been tasked with providing some key work packages for the project. What should you do? A. Provide the manager with what she needs. B. Inform your manager of your concerns to get her support. C. Sit down with the manager at the beginning of the project and attempt to describe why you object to the project, and discover a way to solve the problem. D. Ask to be removed from the project.
Answer A Explanation We assume that proper project management was followed and your opinion was considered during project initiating. Therefore, the best choice would be choice A. You need to provide the work as approved by management.
Communications under a contract should tend toward: A. Formal written communication. B. Formal verbal communication. C. Informal written communication. D. Informal verbal communication.
Answer A Explanation When we talk about contracts, everything that we do is more formal than in other project activities. Records are also important, thus the need for written communication.
Which type of cost is team training? A. Direct B. NPV C. Indirect D. Fixed
Answer A Explanation You are training the team on skills required for the project. The cost is directly related to the project and thus a direct cost.
In attempting to complete the project faster, the project manager looks at the cost associated with crashing each activity. The BEST approach to crashing would also include looking at the: A. Risk impact of crashing each activity. B. Customer's opinion of which activities to crash. C. Boss's opinion of which activities to crash and in which order. D. Project life cycle phase in which the activity is due to occur.
Answer A Explanation You mayor may not need your customer's (choice B) or your boss's (choice C) input, but you will definitely need to include an analysis of risk. Choice A is broader than choice D and therefore is better.
22. You have been assigned to manage the development of an organization's first Web site. The site will be highly complex and interactive, and neither your project team nor the client has much experience with Web site development. The timeline is extremely aggressive. And delay will be costly for both your firm and the client. You have a project sponsor and have achieved agreement and sign-off on both the project charter and the project management plan. Client personnel have been kept fully informed of the project's progress through status reports and regular meetings. The project is on schedule and within the budget, and a final perfunctory review has been scheduled. Suddenly you hear that the entire effort may be cancelled because the product developed is totally unacceptable. What is the MOST likely cause of this situation? A. A key stakeholder was not adequately involved in the project B. The project charter and project management plan were not thoroughly explained or adequately reviewed by the client C. Communications arrangements were inadequate and did not provide the required information to interested parties D.The project sponsor failed to provide adequate support for the project
Answer A A single high-level executive can end an entire project if he or she is not satisfied with the results, even if that person has, by choice, been only tangentially involved in the project. It is critical to ensure that all of the final decision makers have been identified early in a project in order to ensure that their concerns are addressed.
39. Linear programming is an example of what type of project selection criteria? A. Constrained optimization B. Comparative approach C. Benefit measurement D. Impact analysis
Answer A Constrained optimization uses mathematical models. Linear programming is a mathematical model.
41. The engineering department has uncovered a problem with the cost accounting system and has asked the systems department to analyze what is wrong and fix the problem. You are a project managerr working with the cost accounting programs on another project. Management has issued a change request to the change control board to add the new work to your project. Your existing project has a cost performance index (CPI) of 1.2 and a schedule performance index (SPI) of 1.3, so you have some room to add work without delaying your existing project or going over budget. However, you cannot see how the new work fits within the project charter for your existing project. After some analysis, you determine that the new work and existing work do not overlap and can be done concurrently. They also require different skill sets. Which of the following is the BEST thing to do? A. Develop a project charter B. Reestimate the project schedule with input from the engineering department C. Verify the scope of the new work with the help of the stakeholders D. Identify specific changes to the existing work
Answer A How long did it take you to read this question? Expect long-winded questions on the exam. Take another look at the choices before you continue reading. Did you notice that each of the choices occurs du ring a different part of the project management process? This question is essentially asking if the new work should be added to the existing project. There may be many business reasons to try to do this, but from a project management perspective, major additions to the project are generally discouraged. In this case, the question is trying to imply that the new work is a self-contained unit of work, has no overlap with the existing work and needs a different skill set. Therefore, it is generally best to make it a new project. The first step to answering this question is to realize that the work should be aseparate project. The second step is to look at the choices and see which relates to initiating a new project. Choice B sounds like the best choice, but only if you did not realize that the new work should be aseparate project. Choice C is done during project monitoring and controlling. Choice D is done during project executing. The project charter is developed in the initiating process group.
9. Integration is done by the: A. Project manager B. Team C. Sponsor D. Stakeholders
Answer A Integration is a key responsibility of the project manager, so choice A is the best answer.
32. Which of the following sequences represents straight line depreciation? A. $100, $100, $100 B. $100, $120, $140 C. $100, $120, $160 D. $160, $140, $120
Answer A Straight line depreciation uses the same amount each time period.
18. The project charter for a project was approved for planning and you have just been assigned as project manager. Realizing that project planning is an ongoing effort throughout the project, which processes are you MOST likely to combine? A. Create WBS and Define Activities B. Estimate Activity Durations and Develop Schedule C. Develop Human Resource plan and Estimate Costs D. Estimate Costs and Determine Budget
Answer A The Create WBS process consists of subdividing major project deliverables (scope) into smaller, more manageable work packages. The Define Activities process defines the activities that must take place to produce those deliverables.
35. An output of the Close Project or Phase process is the creation of: A. Project archives B. A project charter C. A project management plan D. A risk analysis plan
Answer A The project charter (choice B) is created in initiating. The project management plan (choice C) is an output of the planning process group. You have not seen the term risk analysis plan (choice D) in this book, so it is unlikely to be the best answer.
24. What is a program? A. An initiative set up by management B. A means to gain benefits and control of related projects C. A group of unrelated projects managed in a coordinated way D. A government regulation
Answer B Did you select choice C? If so, you missed the word "unrelated". Programs are groups of related projects.
6. A project team member is talking to another team member and complaining that many people are asking him to do things. If he works in a functional organization, who has the power to give directions to the team member? A. The project manager B. The functional manager C. The team D. Tight matrix
Answer B In a functional organization, the functional manager is the team member's boss and probably also the project manager's boss.
25. A company is making an effort to improve its project performance and create historical records of past projects. What is the BEST way to accomplish this? A. Create project management plans B. Create lessons learned C. Create network diagrams D. Create status reports
Answer B Lessons learned help to avoid future pitfalls and use the good ideas of past projects. This leads to improvements in future projects.
13. The project life cycle differs from the product life cycle in that the project life cycle: A. Does not incorporate a methodology B. Is different for each industry C. Can spawn many projects D. Describes project management activities
Answer B The project life cycle does incorporate a methodology for doing the work - so choice A cannot be best. It is the product life cycle that spawns many projects, so choice C cannot be best. Project management activities are described in the project management process, so choice D cannot be best. The project life cycle is different for each industry, so choice B is the best answer.
12. A project manager is managing his second project. It started one month after the first and both are ongoing. Though his first project is small, this one seems to be growing in size every day. As each day passes, the project manager is beginning to feel more and more in need of help. The project manager has recently heard that there was another project in the company last year that is similar to his second project. What should he do? A. Contact the other project manager and ask for assistance B. Obtain historical records and guidance from the project management office (PMO) C. Wait to see if the project is impacted by the growth in scope D. Make sure the scope for the project is agreed to by all the stakeholders
Answer B There are many things the project manager could do. Choice A is not the best choice, as the other project manager might not be an experienced mentor. His advice might not be adequate to help this project manager. Choice C is reactive, while a project manager should be proactive. Choice D is not the best choice. It would be helpful, but does not specifically address the issues in this situation. If the PMO is contacted, the project manager can receive the knowledge of many project managers, historical information from many projects, and have the assistance of someone whose job it is to help.
17. A project team is working on manufacturing a new product, but they are having difficulty creating a project charter. What is the BEST description of the real problem? A. They have not identified the project objectives B. They are working on a process and not a project C. The end date has not been set D. They have not identified the product of the project
Answer B This work has entered the manufacturing stage. Manufacturing is generally considered a process, not a project, as it is not temporary. A project charter will not be appropriate here.
During project executing, a large number of changes are made to the project. The project manager should: A. Wait until all changes are known and print out a new schedule. B. Make approved changes as needed, but retain the schedule baseline. C. Make only the changes approved by management. D. Talk to management before any changes are made.
Answer B Explanation A project manager must be more in control of the project than choices C and D reflect. Choice A is a common error many project managers make. Instead, the project manager should be controlling the project throughout the completion of the project. Cost Management CHAPTER SEVEN
All of the following must be performed during project initiating EXCEPT: A. Identify and document business needs. B. Create a project scope statement. C. Divide large projects into phases. D. Accumulate and evaluate historical information.
Answer B Explanation A project scope statement (choice B) is generally created in project planning.
Who of the following are ALWAYS stakeholders? A. A person who does not want the project to be completed B. An assembly line worker that will use the product of the project C. A functional manager from the engineering department D. A person who might lose his or her position in the company because of the project
Answer B Explanation A user of the project's product is always a stakeholder, while the others mayor may not be.
The preparation of the scope baseline can BEST be described as involving: A. The functional managers. B. The project team. C. All the stakeholders. D. The project expediter.
Answer B Explanation After the customer's input, the performing organization's project team is responsible for scope baseline preparation. The scope baseline includes the WBS, WBS dictionary, and project scope statement.
A project performed under a cost reimbursable contract has finally entered the Close Procurements process. What MUST the buyer remember to do? A. Decrease the risk rating of the project. B. Audit seller's cost submittals. C. Evaluate the fee he is paying. D. Make sure that the seller is not adding resources.
Answer B Explanation Although a reserve might be decreased for the project overall when one of its contracts enters closure, the risk rating of the project (choice A) may not be affected. Choice C should have been done during the Conduct Procurements process. Although choice D may be a concern during the Administer Procurements process, it is not common during Close Procurements. Choice B, audit seller's cost submittals, is part of the procurement audit and is a required aspect of Close Procurements.
A decision has to be made regarding project selection. Several project managers have been asked to give their opinions to the executive committee. Each project manager has a personal interest because the project chosen will drive which project manager will be assigned. The project chosen will be high priority and high visibility, with substantial reward for success. How should the project managers make their recommendations? A. They should each explain why the project they would be in charge of would be the best to choose and provide documentation to substantiate it. B. They should recommend the project that would be best for the company in the long run, regardless of who is going to run it. C. They should make a chart that shows the pros and cons of each project making sure to list more pros for the one they would run and less cons to prove its value. D. They should not give an opinion since it would not be objective.
Answer B Explanation Although choice D sounds like a good option, it is not the best, since the project managers have been asked for their input. Choices A and C are incorrect because the project managers would be promoting their own interests, rather than that of the organization. Choice B is best since it suggests being objective and making impartial recommendations in the best interest of the organization.
Your project has just been fast tracked and you are looking to quickly bring in a subcontractor to complete networking. There is no time to issue a request for proposal (RFP), so you choose to use a company you have used many times before for software development. A PRIMARY concern in this situation is: A. Collusion between subcontractors. B. The subcontractor's qualifications. C. The subcontractor's evaluation criteria. D. Holding a bidder conference.
Answer B Explanation Although you have used this contractor before, how can you be sure the company is qualified to do the new work, since it is not exactly like the previous work? This is the risk you are taking.
The primary objective of contract negotiations is to: A. Get the most from the other side. B. Protect the relationship. C. Get the highest monetary return. D. Define objectives and stick to them.
Answer B Explanation As a project manager, you want to develop a relationship during negotiations that will last throughout the project.
Cost performance measurement is BEST done through which of the following? A. Asking for a percent complete from each team member and reporting that in the monthly progress report B. Calculating earned value and using the indexes and other calculations to report past performance and forecast future performance C. Using the 50/50 rule and making sure the life cycle cost is less than the project cost D. Focusing on the amount expended last month and what will be expended the following month
Answer B Explanation Asking percent complete (choice A) is not a best practice since it is usually a guess. Often the easiest work is done first on a project, throwing off any percentage calculations of work remaining. It may be a good thing to use the 50/50 rule, as in choice C. However, the 50/50 rule is not necessarily included in the progress report, and the second part of the sentence is incorrect. The life cycle cost cannot be lower than the project cost, as the life cycle cost includes the project cost. Choice D is often done by inexperienced project managers who know of nothing else. Not only does it provide little information, but also it cannot be used to predict the future. Choice B is the best answer since it looks at the past and uses this information to estimate future costs.
A project manager has a project team consisting of people in four countries. The project is very important to the company, and the project manager is concerned about its success. The length of the project schedule is acceptable. What type of communication should he use? A. Informal verbal communication B. Formal written communication C. Formal verbal communication D. Informal written communication
Answer B Explanation Because of the differences in culture and the distance between team members, formal written communication is needed.
You just found out that a major subcontractor for your project consistently provides deliverables late. The subcontractor approaches you and asks you to continue accepting late deliverables in exchange for a decrease in project costs. This offer is an example of: A. Confronting. B. Compromise. C. Smoothing. D. Forcing.
Answer B Explanation Both parties are giving up something. This is a compromise.
Which of the following processes includes asking team members about the time estimates for their activities and reaching agreement on the calendar date for each activity? A. Sequence Activities B. Develop Schedule C. Define Scope D. Develop Project Charter
Answer B Explanation By the time this process is taking place, Sequence Activities (choice A), Define Scope (choice C), and Develop Project Charter (choice D) would be completed.
The sponsor is worried about the seller deriving extra profit on the cost plus fixed fee (CPFF) contract. Each month he requires the project manager to submit CPI calculations and an analysis of the cost to complete. The project manager explains to the sponsor that extra profits should NOT be a worry on this project because: A. The team is making sure the seller does not cut scope. B. All costs invoiced are being audited. C. There can only be a maximum 10 percent increase if there is an unexpected cost overrun. D. The fee is only received by the seller when the project is completed.
Answer B Explanation Choice A cannot be best because cutting scope decreases profits on this type of contract. Choice C cannot be best, as CPFF contracts generally do not limit fee increases. Choice D cannot be best, as the fee in a CPFF contract is usually paid out on a continuous basis during the life of the project. One of the ways to change the profit in a cost plus fixed fee contract is to invoice for items not chargeable to the project (choice B).
This project is chartered to determine new ways to extend the product life of one of the company's medium-producing products. The project manager comes from the engineering department, and the team comes from product management and marketing departments. The project scope statement and project planning are completed when a stakeholder notifies the team that there is a better way to complete one of the work packages. They even supply a technical review letter from their department proving that the new way to complete the work package will actually be faster than the old way. The project manager has had similar experiences with this department on other projects, and was expecting this to happen on this project. What is the FIRST thing the project manager should do? A. Contact the department and complain again about their missing the deadline for submission of scope. B. Look for how this schedule change will impact the cost to complete the work package and the quality of the product of the work package. C. See if there is a way to change from a matrix environment to a functional organization so as to eliminate all the interference from other departments. D. Ask the department if they have any other changes.
Answer B Explanation Choice A could be done, but notice that it is not proactive? It would be helpful to get to the root cause of why this department always comes up with such ideas or changes after the project begins. However, this is not the immediate problem, the change is, and therefore choice A is not best. The type of project organization described is a matrix organization. There is not anything inherently wrong with such an organization, nor is there anything wrong in this particular situation that would require it to be changed, so choice C cannot be best. The department's history makes choice D something that should definitely be done, but the proposed change needs more immediate attention. Only choice B begins integrated change control by looking at the impact of one change on other project constraints.
Three students from another country are working as interns on a project. The project manager has arranged for some games to play as team-building activities to help create a close knit sense of team with the group members. At the event where the activities are taking place, the three students refuse to participate, claiming the behavior involved is unacceptable in their country and they would be very uncomfortable participating. What should the project manager do? A. He should tell the students that they need to become familiar with the how things are done in this country and that they must play along. B. He should excuse the students from playing and arrange to discuss with them alternative activities that they would be more comfortable with. C. He should report the students to their functional manager and request they be removed from the project since their attitude will have a negative impact on the project. D. He should tell the students they are excused from the activities and to not attend any team building activities in the future.
Answer B Explanation Choice A is forcing the team members to do something that is unacceptable in their culture. Choice C penalizes the team members for expressing their cultural preferences, which is not a valid reason to remove them from the team. Excluding them from all future team building (choice D) does not show respect for their culture, and would have a negative impact on the project. Choice B is best because it demonstrates respect for cultural ,differences.
Which of the following would be the MOST appropriate thing to do during the initiating process group? A. Create a detailed description of the project deliverables. B. Get familiar with the company culture and structure as it relates to the project. C. Identify the root cause of problems. D. Ensure all project management processes are complete.
Answer B Explanation Choice A occurs during the planning process group as part of creating the project scope statement. Since you must already have problems in order to determine their root cause, choice C must occur during the monitoring and controlling process group, not initiating. Choice D occurs during the closing process group.
You are in the middle of a project when you discover that a software seller for your project is having major difficulty keeping employees due to a labor dispute. Many other projects in your company are also using the company's services. What should you do? A. Attempt to keep the required people on your project. B. Tell the other project managers in your company about the labor problem. C. Contact the company and advise it that you will cancel its work on the project unless it settles its labor dispute. D. Cease doing business with the company.
Answer B Explanation Choice A puts your interests over those of your company so it cannot be the best choice. There is no indication that the labor dispute has caused any problems, so there is no need to cancel its work (choice C) or cease doing business with the company (choice D). The best choice would be to inform others in your company.
Approved corrective action is an input to: A. Verify Scope. B. Direct and Manage Project Execution. C. Develop Project Charter. D. Develop Schedule.
Answer B Explanation Choice B is the only correct response.
You've been assigned to take over managing a project that should be half complete according to the schedule. After an extensive evaluation, you discover that the project is running far behind schedule, and that the project will probably take twice the time originally estimated by the previous project manager. However, the sponsor has been told that the project is on schedule. What is the BEST course of action? A. Try to restructure the schedule to meet the project deadline. B. Report your assessment to the sponsor. C. Turn the project back to the previous project manager. D. Move forward with the schedule as planned by the previous project manager and report at the first missed milestone.
Answer B Explanation Choice C is not possible, as the previous project manager may have left the company or he may be busy with new projects. It is a form of withdrawal. Moving ahead (choice D) also withdraws from the problem, and withdrawal is not the best choice. There are two problems described here; the project is behind, and the sponsor does not know it. There seem to be two possible right answers, choices A and B. Which is the best thing to deal with? Certainly it would be to work to get the project on schedule, but look at what choice A says. It limits the effort to restructuring the schedule and does not consider other options, such as cutting scope, that might more effectively deal with the problem. Choice A is too limiting. What if the sponsor would agree to change the due date? The best choice in THIS situation is to inform the sponsor of the revised completion time estimate.
A certified PMP is contacted by PMI and asked to provide information regarding another project manager who has been reported to be involved in unethical activities. The PMP-certified project manager knows his information would support the accusations and the other project manager in question is a friend. He decides that the best thing to do would be to not respond, and therefore neither confirm nor deny the accusations. Would this be the right thing to do? A. Yes. It would be a safe thing to do to just ignore the request and stay out of it. B. No. If he knows something, he is required by the Code of Ethics and Professional Conduct conduct to cooperate. C. No. It would be better to deny the charges against his friend to maintain the relationship. D. Yes. It is expected that project managers will support each other in the field against outsiders.
Answer B Explanation Choices A and D do not support PMI's request for information. Choice C would be lying. Choice B is correct, as PMI's Code of Ethics and Professional Conduct requires PMP-certified project managers to report unethical behavior and violations of the code. The PMP-certified project manager is obligated to cooperate with PMI in collecting information.
Management has promised you part of the incentive fee from the customer if you complete the project early. While finalizing a major deliverable, your team informs you that the deliverable meets the requirements in the contract but will not provide the functionality the customer needs. If the deliverable is late, the project will not be completed early. What action should you take? A. Provide the deliverable as it is. B. Inform the customer of the situation and work out a mutually agreeable solution. C. Start to compile a list of delays caused by the customer to prepare for negotiations. D. Cut out other activities in a way that will be unnoticed to provide more time to fix the deliverable.
Answer B Explanation Choices A and D ignore the customer's best interests. Any delays would have already been resolved with other change orders, so choice C is not appropriate. The ethical solution is to talk with the customer (choice B). You might still be able to win the incentive fee and find a mutually agreeable solution. Think of the good will that will come from telling the customer.
The project is calculated to be completed four days after the desired completion date. You do not have access to additional resources. The project is low risk, the benefit cost ratio (BCR) is expected to be 1.6, and the dependencies are preferential. Under these circumstances, what would be the BEST thing to do? A. Cut resources from an activity. B. Make more activities concurrent. C. Move resources from the preferential dependencies to the external dependencies. D. Remove an activity from the project.
Answer B Explanation Cutting resources from an activity (choice A) would not save time, nor would moving resources in the way described (choice C). Removing an activity from the project (choice D) is a possibility, but since the dependencies are preferential and the risk is low, the best choice would be to make more activities concurrent (choice B), as this would have less impact on the project.
Communication is the key to the success of a project. As the project manager, you have three stakeholders with whom you need to communicate. As such, you have six channels of communication. A new stakeholder has been added that you also need to communicate with. How many communications channels do you have now? A. 7 B. 10 C. 12 D. 16
Answer B Explanation Did you realize that the project manager is part of the communication channels? Therefore, there are actually four stakeholders to begin with and six channels of communication. The question is asking how many total channels of communication you have with a team of five people. The formula is [N x (N-l)]12 or (5 x 4)/2 = 10.
What is a program? A. An initiative set up by management B. A means to gain benefits and control of related projects C. A group of unrelated projects managed in a coordinated way D. A government regulation
Answer B Explanation Did you select choice C? If so, you missed the word unrelated:' Programs are groups of related projects.
The project is mostly complete. The project has a schedule variance of 300 and a cost variance of -900. All but one of the quality control inspections have been completed and all have met the quality requirements. All items in the issue log have been resolved. Many of the resources have been released. The sponsor is about to call a meeting to obtain product verification when the customer notifies the project manager that they want to make a major change to the scope. The project manager should: A. Meet with the project team to determine if this change can be made. B. Ask the customer for a description of the change. C. Explain that the change cannot be made at this point in the process. D. Inform management.
Answer B Explanation Do not jump into the problem without thinking. The customer only notified the project manager that they want to make a change:' They did not describe the change. The project manager would need to understand the nature of the change and have time to evaluate the impact of the change before doing anything else. Of these choices, the first thing to do is to determine what the change is (choice B) and then meet with the team (choice A), but only if their input is required. The project manager should not just say no (choice C) until he knows more about the possible change. He also should not go to management (choice D) without more information.
If a risk has a 20 percent chance of happening in a given month, and the project is expected to last five months, what is the probability that this risk event will occur during the fourth month of the project? A. Less than 1 percent B. 20 percent C. 60 percent D. 80 percent
Answer B Explanation Don't feel too silly if you got this wrong. Many people miss this one. No calculation is needed. If there is a 20 percent chance in anyone month, the chance in the fourth month must therefore be 20 percent.
Which of the following are ALL items included in the cost management plan? A. The level of accuracy needed for estimates, rules for measuring cost performance, specifications for how duration estimates should be stated B. Specifications for how estimates should be stated, rules for measuring cost performance, the level of accuracy needed for estimates C. Rules for measuring team performance, the level of accuracy needed for estimates, specifications for how estimates should be stated D. Specifications for how estimates should be stated, the level of risk needed for estimates, rules for measuring cost performance
Answer B Explanation Every item in choice B accurately describes a part of the cost management plan. Notice how one word in each of the other options makes the entire choice incorrect. Choice A refers to duration estimates, which are created during the time management process, choice C includes measuring team performance, a part of human resource management, and choice D includes risk.
Formal written correspondence with the customer is required when: A. Defects are detected. B. The customer requests additional work not covered under contract. C. The project has a schedule slippage that includes changes to the critical path. D. The project has cost overruns.
Answer B Explanation Everything that we do is more formal in a procurement environment than in other project activities. Because choice B deals with contracts, it is the best answer.
A project team member is talking to another team member and complaining that many people are asking him to do things. If he works in a functional organization, who has the power to give direction to the team member? A. The project manager B. The functional manager C. The team D. Tight matrix
Answer B Explanation In a functional organization, the functional manager is the team member's boss and probably also the project manager's boss.
A project manager is in the middle of creating a request for proposal (RFP). What part of the procurement process is she in? A. Conduct Procurements B. Plan Procurements C. Administer Procurements D. Make-or- Buy Analysis
Answer B Explanation In the Plan Procurements process, we create the procurement documents. The request for proposal is one of those documents.
A detailed project schedule can be created only after creating the: A. Project budget. B. Work breakdown structure. C. Project management plan. D. Detailed risk assessment.
Answer B Explanation In the project management process, the project budget (choice A), project management plan (choice C), and detailed risk assessment (choice D) come after the schedule. The only answer that could be an input is the WBS.
Which of the following BEST describes the project manager's role as an integrator? A. Help team members become familiar with the project. B. Put all the pieces of a project into a cohesive whole. C. Put all the pieces of a project into a program. D. Get all team members together into a cohesive whole.
Answer B Explanation Integration refers to combining activities, not team members (choice D). Could the project manager smash two team members together and create one big team member? (I just wanted to see if you are still laughing about this PMP thing!)
The MOST common causes of conflict on a project are schedules, project priorities, and: A. Personality. B. Resources. C. Cost. D. Management.
Answer B Explanation Know the top four sources (schedule, project priorities, resources, and technical opinions) so you can answer questions such as this one. Don't be fooled because personality is on the list. It is last.
A company is making an effort to improve its project performance and create historical records of past projects. What is the BEST way to accomplish this? A. Create project management plans B. Create lessons learned. C. Create network diagrams D. Create status reports
Answer B Explanation Lessons learned help to avoid future pitfalls and use the good ideas of past projects. This leads to improvements in future projects. Project Management Processes CHAPTER THREE
The WBS and WBS dictionary are completed. The project team has begun working on identifying risks. The sponsor contacts the project manager, requesting that the responsibility assignment matrix be issued. The project has a budget of US $100,000 and is taking place in three countries using 14 human resources. There is little risk expected for the project, and the project manager has managed many projects similar to this one. What is the NEXT thing to do? A. Understand the experience of the sponsor on similar projects. B. Create an activity list. C. Make sure the project scope is defined. D. Complete risk management and issue the responsibility assignment matrix.
Answer B Explanation Look at the order of planning the project the team has chosen. Though understanding the experience of the sponsor (choice A) might sound like a good idea, the sponsor is a stakeholder and understanding the stakeholders is part of stakeholder analysis. That should have occurred before the creation of a WBS. In planning the project, the project scope is defined (choice C is another way of saying finalize the project scope statement) and would come before creating a WBS. Choice D cannot be best, as that work does not come next in the process. Other work, like creating a network diagram, should be completed before risk management can effectively be done. The only correct choice is the activity list (choice B).
The project has 13 team members and affects over 15 departments in the organization. Because the project is 20 percent complete to date and the team has had successful performance reports from five of the affected departments, the project manager holds a party to celebrate. The project manager invites key stakeholders from all of the departments to the party, in order to give those providing good reviews an informal opportunity to communicate good things to those departments that have not yet been affected by the project. At the party, the project manager walks around to try to discover any relevant information that would help the project be more successful. He happens to hear a manager of one of the departments talking about setting up more regular meetings on the project. The BEST thing for the project manager to do would be to FIRST: A. Record the effectiveness of the party in the project lessons learned. B. Review the information distribution methods on the project. C. Hold a meeting of all the stakeholders to discuss their concerns. D. Make sure the manager has a copy of the communications management plan so he is reminded that such concerns should be sent to the project manager.
Answer B Explanation Many of these choices could be done, but ask yourself, What is the most effective thing to do? The party may well generate lessons learned, and recording them (choice A) would certainly be a good idea, but the question asked what to do first. There is a more immediate issue- the manager. Choice C could also be useful, but it would require taking time of all the stakeholders when there is only one stakeholder, the manager, who definitely has an issue. Besides, a good project manager would be holding regular meetings with the stakeholders already. Choice D might be a good idea, as the manager apparently is not communicating with the project manager. However, this would not absolutely make sure the manager does communicate. The manager is, in effect, saying that he is not getting the information he needs. His lack of needed information is causing him to suggest more meetings. Too many meetings are a problem on projects. The concept of information distribution (choice B) is to determine who needs what information and plan how to get it to them. A great project manager does not just add meetings, but solves the real problem in the best way. That might take the form of changing a report or sending existing reports to different people rather than adding meetings. For these reasons, choice B is best.
When a project manager is engaged in negotiations, nonverbal communication skills are of: A. Little importance. B. Major importance. C. Importance only when cost and schedule objectives are involved. D. Importance only to ensure you win the negotiation.
Answer B Explanation Nonverbal communication carries 55 percent of the message you send. With this much at stake, nonverbal communication is of major importance.
The project team seems to like to argue; they have argued about everything. Luckily the project manager has set in place a reward system and team-building sessions that will help and encourage the team to cooperate more. The latest thing they are arguing about is whether they should complete a work package themselves or outsource the work to someone else. What part of the procurement process must they be in? A. Conduct Procurements B. Plan Procurements C. Administer Procurements D. Claims Administration
Answer B Explanation Notice that much of this question is irrelevant? Did you also notice that the words make-or-buy decision were not used in the question? Instead, the question used the definition of make-or-buy. Watch out for this on the exam. A make-or-buy decision is needed before the rest of the procurement process can occur. Therefore, the situation must be taking place in one of the early steps of the procurement process.
One of the stakeholders on the project contacts the project manager to discuss some additional scope they would like to add to the project. The project manager asks for details in writing and then works through the Control Scope process. What should the project manager do NEXT when the evaluation of the requested scope is complete? A. Ask the stakeholder if there are any more changes expected. B. Complete integrated change control. C. Make sure the impact of the change is understood by the stakeholder. D. Find out the root cause of why the scope was not discovered during project planning.
Answer B Explanation Notice that there are many things that the project manager could do listed in the choices. The question asks what is the BEST thing to do NEXT. Though they are great things to do, choices A, C, and D are not next. Management of the change is not complete when the Control Scope process is completed. It is important to look at the impact of the change on other parts of the project such as time and cost. Therefore, choice B is the best thing to do next, probably followed by C and then D and A.
A project manager had a complex problem to solve and made a decision about what needed to be done. A few months later, the problem resurfaced. What did the project manager MOST likely not do? A. Proper risk analysis B. Confirm that the decision solved the problem C. Have the project sponsor validate the decision D. Use an Ishikawa diagram
Answer B Explanation Notice the phrasing of this question, most likely NOT do:' Expect to see questions worded on the exam in ways that can cause you to misinterpret them. You will also see questions about things we forget to do in the real world. Who has time:' you might say, to determine if each problem is really solved? One could respond with, Who has time not to do this? Who has time to deal with the same problem twice? The final steps of problem solving include: implement a decision, review it, and confirm that the decision solved the problem.
A project manager is using weighted average duration estimates to perform schedule network analysis. Which type of mathematical analysis is being used? A. Critical path method B. PERT C. Monte Carlo D. Resource leveling
Answer B Explanation PERT uses a weighted average to compute activity durations.
You are halfway through a major network rollout. There are 300 locations in the United States with another another 20 in England. A software seller has just released a major software upgrade for some of the equipment being installed. The upgrade would provide the customer with functionality they requested that was not available at the time the project began. What is the BEST course of action under these circumstances? A. Continue as planned, your customer has not requested a change. B. Inform the customer of the upgrade and the impacts to the project's timeline and functionality if the upgrade is implemented. C. Implement the change and adjust the schedule as necessary because this supports the customer's original request. D. Implement the change to the remaining sites and continue with the schedule.
Answer B Explanation Professional and social responsibility includes looking after the customer's best interests. Therefore, choice A cannot be best. In this case, the schedule and scope are already approved and all changes must go through the change control process. Therefore, choices C and D cannot be best.
You are a project manager leading a cross-functional project team in a weak matrix environment. None of your project team members report to you functionally, and you do not have the ability to directly reward their performance. The project is difficult, involving tight date constraints and challenging quality standards. Which of the following types of project management power will likely be the MOST effective in this circumstance? A. Referent B. Expert C. Penalty D. Formal
Answer B Explanation Reward and expert are the best sources of power. Reward is not listed as a choice.
What should be done with risks on the watchlist? A. Document them for historical use on other projects. B. Document them and revisit during project monitoring and controlling. C. Document them and set them aside because they are already covered in your contingency plans. D. Document them and give them to the customer.
Answer B Explanation Risks change throughout the project. You need to review risks at intervals during the project to ensure that non-critical risks have not become critical.
During the middle of the project, things have been going well. The work authorization system has allowed people to know when to start work, and the issue log has helped keep track of stakeholders' needs. The benefit cost ratio has been improving, and the sponsor has expressed his appreciation for the team members' efforts by hosting a milestone party for the team. The project manager gets a call from a team member saying that the results from the completion of their activity's predecessor is two days late. Which of the following reasons would BEST describe why this occurred? A. The project manager was focusing on the sponsor's needs. B. Functional management was not included in the communications management plan. C. The successor activities should have been watched, not the predecessors. D. The right people were not invited to the milestone party.
Answer B Explanation Since there is no information about the sponsor or his needs in this situation and nothing presented here relates to sponsors, choice A cannot be best. Choice C cannot be best, as it is not a correct statement. One watches both predecessor and successor activities. Choice D cannot be best, as the attendance at the party and the issue at hand are not related. Often forgotten in communications management plans are the bosses of team members (functional management, since of course you remember that we are assuming a matrix organization). Including the bosses of team members in communications planning, requirements gathering, risk management, and other areas of project management helps make the project better. In addition, it helps the boss manage his own resources effectively. If the functional manager of the team member assigned to the predecessor activity had been included, he would have known when the team member was needed to do work for the project and the impact, if any, of delay. The communications management plan might also have included a method to communicate potential delays. For these reasons, choice B is best.
During the Identify Risks process, a project manager made a long list of risks identified by all the stakeholders using various methods. He then made sure that all the risks were understood and that triggers had been identified. Later, in the Plan Risk Responses process, he took all the risks identified by the stakeholders and determined ways to mitigate them. What has he done wrong? A. The project manager should have waited until the Perform Qualitative Risk Analysis process to get the stakeholders involved. B. More people should be involved in the Plan Risk Responses process. C. The project manager should have created workarounds. D. Triggers are not identified until the Identify Risks process.
Answer B Explanation Stakeholders (choice A) are involved in the Identify Risks process. Workarounds (choice C) are created later in the risk process. Plan Risk Responses must include the involvement of all risk response owners and possibly others. This makes choice B the correct answer.
You are asked to prepare a budget for completing a project that was started last year and then shelved for six months. All the following would be included in the budget EXCEPT: A. Fixed costs. B. Sunk costs. C. Direct costs. D. Variable costs.
Answer B Explanation Sunk costs (choice B) are expended costs. The rule is that they should not be considered when deciding whether to continue with a troubled project.
You have been appointed as the manager of a new, large, and complex project. Because this project is business-critical and very visible, senior management has told you to analyze the project's risks and prepare response strategies for them as soon as possible. The organization has risk management procedures that are seldom used or followed, and has had a history of handling risks badly. The project's first milestone is in two weeks. In preparing the risk response plan, input from which of the following is generally LEAST important? A. Project team members B. Project sponsor C. Individuals responsible for risk management policies and templates D. Key stakeholders
Answer B Explanation Team members (choice A) will have knowledge of the project and the product of the project and will thus have a lot to contribute to risk responses. Those responsible for risk templates (choice C) will be able to provide the templates from past projects (historical records) and therefore will be very important. Key stakeholders (choice D) will know more about the technical working of the project to help plan What are we going to do about it? so choice D is not likely to be the least important. The sponsor (choice B) may have the least knowledge of what will work to solve the problems. Sponsors need to be involved in the project and help identify risks. They may even approve the response plans created by others, but they would not generally be major contributors to response plans. This makes B the best choice.
Which of the following is a chief characteristic of the Delphi technique? A. Extrapolation from historical records from previous projects B. Expert opinion C. Analytical hierarchy process D. Bottom-up approach
Answer B Explanation The Delphi technique uses experts and builds to consensus; therefore, expert opinion is the chief characteristic.
A new project manager has asked you for advice on creating a work breakdown structure. After you explain the process to her, she asks you what software she should use to create the WBS and what she should do with it when she is finished creating it. You might respond that it is not the picture that is the most valuable result of creating a WBS. It is: A. A bar chart. B. Team buy-in. C. Activities. D. A list of risks.
Answer B Explanation The WBS is an input to all of these choices. However, team buy-in (choice B) is a direct result of the WBS creation process, while the other choices use the WBS to assist in their completion. The best answer is choice B.
A project manager has just found out that a major subcontractor for her project is consistently late delivering work. The project team member responsible for this part of the project does not get along with the subcontractor. To resolve the problem, the project manager says, "You both will have to give up something to solve this problem." What conflict resolution method is she using? A. Confrontation B. Compromise C. Smoothing D. Communicating
Answer B Explanation The act of both parties giving something defines compromise.
Which of the following is the BEST project management tool to use to determine the longest time the project will take? A. WBS B. Network diagram C. Bar chart D. Project charter
Answer B Explanation The bar chart (choice C) may show an end date, but it is not used to determine dates and show progress. The project charter (choice D) may include any required end dates, but not a logical determination of how long the project will take. The network diagram (choice B) takes the work packages from the work breakdown structure (choice A) and adds dependencies. The dependencies allow us to look at the various paths through the diagram. The longest duration path is the critical path. Choice B is the best answer.
You have created the project charter, but could not get it approved. Your manager and his boss have asked that the project begin immediately. Which of the following is the BEST thing to do? A. Set up an integrated change control process. B. Show your manager the impact of proceeding without approval. C. Focus on completing projects that have signed project charters. D. Start work on only the critical path activities.
Answer B Explanation The best thing to do would be to show the impact. This is the only choice that prevents future problems-always the best choice. The other choices just pretend the problem does not exist.
You have just been assigned as project manager for a large manufacturing project. This one-year project is about halfway done. It involves five different sellers and 20 members of your company on the project team. You want to quickly review where the project now stands. Which of the following reports would be the MOST helpful in finding such information? A. Work status B. Progress C. Forecast D. Communications
Answer B Explanation The key word is quickly. The status report (choice A) is too detailed for a quick look. The forecast report (choice C) only looks into the future. The progress report (choice B) will summarize project status.
Which of the following is a KEY output of the Verify Scope process? A. A more complete scope management plan B. Customer acceptance of project deliverables C. Improved schedule estimates D. An improved project management information system
Answer B Explanation The output of the Verify Scope process is customer acceptance of project deliverables. The other choices all happen during project planning, well before the time that the Verify Scope process takes place.
You have just completed the initiating processes of a small project and are moving into the planning processes when a project stakeholder asks you for the project's budget and cost baseline. What should you tell her? A. The project budget can be found in the project's charter, which has just been completed. B. The project budget and baseline will not be finalized and accepted until the planning processes are completed. C. The project management plan will not contain the project's budget and baseline; this is a small project. D. It is impossible to complete an estimate before the project management plan is created.
Answer B Explanation The overall project budget (choice A) may be included in the project charter but not the detailed costs. Even small projects (choice C) should have a budget and schedule. It is not impossible to create a project budget before the project management plan is created (choice D). It is just not wise, as the budget will not be accurate.
The project life cycle differs from the product life cycle in that the project life cycle: A. Does not incorporate a methodology. B. Is different for each industry. C. Can spawn many projects. D. Describes project management activities.
Answer B Explanation The project life cycle does incorporate a methodology-for doing the work-so choice A cannot be best. It is the product life cycle that spawns many projects, so choice C cannot be best. Project management activities are described in the project management process, so choice D cannot be best. The project life cycle is different for each industry, so choice B is the best answer.
During project executing, the project manager determines that a change is needed to material purchased for the project. The project manager calls a meeting of the team to plan how to make the change. This is an example of: A. Management by objectives. B. Lack of a change management plan. C. Good team relations. D. Lack of a clear work breakdown structure.
Answer B Explanation The project manager is asking how to make a change. The procedures, forms, sign- offs, and other similar requirements for handling changes should have already been defined in the change management plan (choice B). Because they weren't, the project manager will waste valuable work time trying to figure it out after the fact.
All of the following are the responsibility of a project manager EXCEPT: A. Maintain the confidentiality of customer confidential information. B. Determine the legality of company procedures. C. Ensure that a conflict of interest does not compromise the legitimate interest of the customer. D. Provide accurate and truthful representations in cost estimates.
Answer B Explanation The project manager is neither empowered nor competent to determine the legality of company procedures. NOTE: There is an important distinction between practices and procedures. All unethical practices should be reported. For example, a project manager must report an act of fraud. Fraud is not a company procedure (normally). However, a project manager is not in a position to determine whether company procedures comply with existing law.
A project manager must publish a project schedule. Activities, start/end times, and resources are identified. What should the project manager do NEXT? A. Distribute the project schedule according to the communications management plan. B. Confirm the availability of the resources. C. Refine the project management plan to reflect more accurate costing information. D. Publish a bar chart illustrating the timeline.
Answer B Explanation The project schedule remains preliminary until resource assignments are confirmed.
You are a project manager on a US $5,000,000 software development project. While working with your project team to develop a network diagram, your data architects suggest that quality could be improved if the data model is approved by senior management before moving on to other design elements. They support this suggestion with an article from a leading software development journal. Which of the following BEST describes what this type of input is called? A. Mandatory dependency B. Discretionary dependency C. External dependency D. Heuristic
Answer B Explanation The situation is neither mandatory (choice A), nor driven by an external source (choice C). A rule of thumb (choice D) is something that can be used consistently. This situation is a unique occurrence. The situation is a suggestion of a preferred method, so choice B is the best answer.
During a project team meeting, a team member suggests an enhancement to the scope that is beyond the scope of the project charter. The project manager points out that the team needs to concentrate on completing all the work and only the work required. This is an example of: A. Change management process. B. Scope management. C. Quality analysis. D. Scope decomposition.
Answer B Explanation The team member is suggesting an enhancement that is outside the scope of the project charter. Scope management involves focusing on doing the work and only the work in the project management plan that meets the objectives of the project charter. The project manager is performing scope management.
A project has had some problems, but now seems under control. In the last few months, almost all the reserve has been used up and most of the negative impacts of events that had been predicted have occurred. There are only four activities left, and two of them are on the critical path. Management now informs the project manager that it would be in the performing organization's best interest to finish the project two weeks earlier than scheduled in order to receive an additional profit. In response, the project manager sends out a request for proposal for some work that the team was going to do, in the hopes that another company might be able to do the work faster. The project manager can BEST be said to be attempting to work with: A. Reserve. B. Opportunities. C. Scope verification. D. Threats.
Answer B Explanation The wording of this question can be confusing. Reserve (choice A) is mentioned in the situation, but the project manager is not dealing with reserves in the actions he is taking. Choice C involves meeting with the customer to gain formal acceptance, so it cannot be the best choice. Choice D cannot be the best choice since the project manager is trying to make something good happen, not dealing with a negative impact, or threat, that mayor may not occur. The project manager is working to make a positive impact on the project more likely to occur. Therefore, choice B is best.
A project manager is managing his second project. It started one month after the first and both are ongoing. Though his first project is small, this one seems to be growing in size every day. As each day passes, the project manager is beginning to feel more and more in need of help. The project manager has recently heard that there was another project in the company last year that is similar to his second project. What should he do? A. Contact the other project manager and ask for assistance. B. Obtain historical records and guidance from the project management office (PMO). C. Wait to see if the project is impacted by the growth in scope. D. Make sure the scope for the project is agreed to by all the stakeholders.
Answer B Explanation There are many things the project manager could do. Choice A is not the best choice, as the other project manager might not be an experienced mentor. His advice might not be adequate to help this project manager. Choice C is reactive, while a project manager should be proactive. Choice D is not the best choice. It would be helpful, but does not specifically address the issues in this situation. If the PMO is contacted, the project manager can receive the knowledge of many project managers, historical information from many projects, and have the assistance of someone whose job it is to help.
A market demand, a business need, and/or legal requirement are examples of: A. Reasons to hire a project manager. B. Reasons projects are initiated. C. Reasons people or businesses become stakeholders. D. Reasons to sponsor a project.
Answer B Explanation These are all reasons projects are initiated.
Risks will be identified during which risk management process(es)? A. Perform Quantitative Risk Analysis and Identify Risks B. Identify Risks and Monitor and Control Risks C. Perform Qualitative Risk Analysis and Monitor and Control Risks D. Identify Risks
Answer B Explanation This is a tricky question. Risks are identified during the Identify Risk process, naturally, but newly emerging risks are identified in the Monitor and Control Risks process.
A project manager has just been assigned to a new project and has been given the project charter. The FIRST thing the project manager must do is: A. Create a project scope statement. B. Confirm that all the stakeholders have had input into the scope. C. Analyze project risk. D. Begin work on a project management plan.
Answer B Explanation This question can be tricky, especially if you have spent so much time studying that you have forgotten some good project management practices. A quick look at Rita's Process Chart in this book might draw you to conclude that the FIRST thing would be to start planning. Wouldn't it be smart to make sure what you have in the project charter is clear and complete before moving on? This is why choice B is the best choice.
A project manager does not have much time to spend planning before the mandatory start date arrives. He therefore wants to move through planning as effectively as possible. Which of the following would you recommend? A. Make sure you have a signed project charter and then start the WBS. B. Create an activity list before creating a network diagram. C. Document all the known risks before you document the high-level assumptions. D. Finalize the quality management plan before you determine quality metrics.
Answer B Explanation This question is asking which of the choices is the most effective way to move through the planning process. Choice A skips the important steps of defining the scope and other activities. High-level assumptions are determined prior to risk identification in the planning process, making choice C incorrect. Metrics are part of the quality management plan, making choice D incorrect. Choice B is best, as the activity list is created immediately before the network diagram.
All of the following are outputs of the Estimate Costs process EXCEPT: A. An understanding of the cost risk in the work that has been estimated. B. The prevention of inappropriate changes from being included in the cost baseline. C. An indication of the range of possible costs for the project. D. Documentation of any assumptions made during the Estimate Costs process.
Answer B Explanation This question is asking, When you finish estimating costs, what do you have? Many people who do not realize that estimates should be in a range pick choice C. Choice B is more correctly part of the cost management plan and the change control system.
You are taking over a project during the planning process group and discover that six individuals have signed the project charter. Which of the following should MOST concern you? A. Who will be a member of the change control board B. Spending more time on configuration management C. Getting a single project sponsor D. Determining the reporting structure
Answer B Explanation This situation implies that there are six areas concerned with this project. In addition to added communications requirements, you should be concerned with competing needs and requirements impacting your efforts on configuration management.
A project has three critical paths. Which of the following BEST describes how this affects the project? A. It makes it easier to manage. B. It increases the project risk. C. It requires more people. D. It makes it more expensive.
Answer B Explanation Though having three critical paths COULD require more people (choice C) or cost more (choice D), the answer that is definitely and always true is choice B. Because you need to manage three critical paths, there is more risk that something could happen to delay the project.
The sponsor's role on a project is BEST described as: A. Helping to plan activities. B. Helping to prevent unnecessary changes to project objectives. C. Identifying unnecessary project constraints. D. Helping to put the project management plan together.
Answer B Explanation Though the sponsor may help plan some of the activities (choice A) it is not the sponsor's exclusive duty. Some project constraints (choice C) come from the sponsor, but they should be considered necessary. The project management plan (choice D) is created by the team and approved by the sponsor and other management. Since the project objectives are stated in the project charter and it is the sponsor who issues the project charter, choice B is the correct answer.
During project planning, you estimate the time needed for each activity and then add the estimates to create the project estimate. You commit to completing the project by this date. What is wrong with this scenario? A. The team did not create the estimate, and estimating takes too long using that method. B. The team did not create the estimate, and a network diagram was not used. C. The estimate is too long and should be created by management. D. The project estimate should be the same as the customer's required completion date.
Answer B Explanation Time estimates for the activities should be created by the team and should not be added. Some activities may take place concurrently. Therefore, choice B must be the correct answer.
Purchasing insurance is BEST considered an example of risk: A. Mitigation. B. Transfer. C. Acceptance. D. Avoidance.
Answer B Explanation To mitigate risk (choice A), we either reduce the probability of the event happening or reduce its impact. Many people think of using insurance as a way of decreasing impact. However, mitigating risk is taking action before a risk event occurs. Buying insurance is not such an action. Acceptance of risk (choice C) does not involve such action as purchasing insurance. Avoidance of risk (choice D) means we change the way we will execute the project so the risk is no longer a factor. Transference is passing the risk off to another party.
A particular stakeholder has a reputation for making many changes on projects. What is the BEST approach a project manager can take at the beginning of the project to manage this situation? A. Say No to the stakeholder a few times to dissuade him from submitting more changes. B. Get the stakeholder involved in the project as early as possible. C. Talk to the stakeholder's boss to find ways to direct the stakeholder's activities to another project. D. Ask that the stakeholder not be included in the stakeholder listing.
Answer B Explanation We cannot avoid the stakeholder (choices C and D), because he has a stake in the project. A project manager can say "No" (choice A), but this does not solve the root cause. There may be some good ideas within those changes. The only choice that deals with the problem is choice B. Changes are not bad! Changes normally come from lack of input at the beginning of the project. If we begin effective communication with this stakeholder early (choice B), we stand a much better chance of discovering his changes during the planning process, when they will have less of an impact on the project. Risk Management CHAPTER ELEVEN
While preparing your risk responses, you identify additional risks. What should you do? A. Add reserves to the project to accommodate the new risks and notify management. B. Document the risk items, and calculate the expected monetary value based on probability and impact that result from the occurrences. C. Determine the risk events and the associated cost, then add the cost to the project budget as a reserve. D. Add a 10 percent contingency to the project budget and notify the customer.
Answer B Explanation When a new risk is identified, it should go through the risk management process. Choice A cannot be the best choice, as you first need to determine the probability and impact of the risk and then try to diminish impact through the Plan Risk Responses process. Only after these efforts should you add reserves. Choice C addresses only costs, when there could also be a time impact. This choice also ignores the work of Plan Risk Responses. Choice D cannot be the best choice because it is better to determine reserves based on a detailed analysis of risk. Therefore, the best choice is B.
A work authorization system can be used to: A. Manage who does each activity. B. Manage what time and in what sequence work is done. C. Manage when each activity is done. D. Manage who does each activity and when it is done.
Answer B Explanation Who does each activity (choices A and D) is managed with the schedule and responsibility assignment matrices. The project schedule manages when each activity is done (choice C). A work authorization system is used to coordinate when and in what order the work is performed so that work and people may properly interface with other work and other people.
Extensive use of ________ communication is most likely to aid in solving complex problems. A. Verbal B. Written C. Formal D. Nonverbal
Answer B Explanation Written communication allows your words to be documented, and they will go to everyone in the same form. When there are complex problems, you want everyone to receive the same thing.
A system development project is nearing project closing when a previously unidentified risk is discovered. This could potentially affect the project's overall ability to deliver. What should be done NEXT? A. Alert the project sponsor of potential impacts to cost, scope, or schedule. B. Qualify the risk. C. Mitigate this risk by developing a risk response plan. D. Develop a workaround.
Answer B Explanation You would need to analyze the problem before you would talk to the sponsor (choice A). You could not mitigate the risk (choice C) until you qualified the risk. A workaround (choice D) is an unplanned response to a risk that is occurring. This risk is identified, not occurring, so there is no need to take action by creating a workaround. Qualifying the risk (choice B) will give you an indication of how great the risk is. That information will help you determine how to proceed.
33. This project is chartered to determine new ways to extend the product life of one of the company's medium-producing products. The project manager comes from the engineering department, and the team comes from product management and marketing departments. The project scope statement and project planning are completed when a stakeholder notifies the team that there is a better way to complete one of the work packages. They even supply a technical review letter from their department proving that the new way to complete the work package will actually be faster than the old way. The project manager has had similar experiences with this department on other projects, and was expecting this to happen on this project. What is the FIRST thing the project manager should do? A. Contact the department and complain again about their missing the deadline for submission of scope B. Look for how this schedule change will impact the cost to complete the work package and the quality of the product of the work package C. See if there is a way to change from a matrix environment to a functional organization so as to eliminate all the interference from other departments D. Ask the department if they have any other changes
Answer B Choice A could be done, but notice that it is not proactive? It would be helpful to get to the root cause of why this department always comes up with such ideas or changes after the project begins. However, this is not the immediate problem: the change is, and therefore choice A is not best. The type of project organization described is a matrix organization. There is not anything inherently wrong with such an organization, nor is there anything wrong in this particular situation that would require it to be changed, so choice C cannot be best. The department's history makes choice D something that should definitely be done, but the proposed change needs more immediate attention. Only choice B begins integrated change control by looking at the impact of one change on other project constraints.
11. Approved corrective action is an input to: A. Verify Scope B. Direct and Manage Project Execution C. Develop Project Charter D. Develop Schedule
Answer B Choice B is the only correct response.
10. Which of the following BEST describes the project manager's role as an integrator? A. Help team members become familiar with the project B. Put all the pieces of a project into a cohesive whole C. Put all the pieces of a project into a program D. Get all team members together into a cohesive whole
Answer B Integration refers to combining activities, not team members (choice D). Could the project manager smash two team members together and create one big team member? (I just wanted to see if you are still laughing about this PMP thing!)
31. You are asked to prepare a budget for completing a project that was started last year and then shelved for six months. All the following would be included in the budget EXCEPT: A. Fixed costs B. Sunk costs C. Direct costs D. Variable costs
Answer B Sunk costs (choice B) are expended costs. The rule is that they should not be considered when deciding whether to continue with a troubled project.
40. You have created the project charter, but could not get it approved. Your manager and his boss have asked that the project begins immediately. Which of the following is the BEST thing to do? A. Set up an integrated change control process B. Show your manager the impact of proceeding without approval C. Focus on completing projects that have signed project charters D. Start work on only the critical path activities
Answer B The best thing to do would be to show the impact. This is the only choice that prevents future problems-always the best choice. The other choices just pretend the problem does not exist.
29. During project executing, the project manager determines that a change is needed to material purchased for the project. The project manager calls a meeting of the team to plan how to make the change. This is an example of: A. Management by objectives B. Lack of a change management plan C. Good team relations D. Lack of a clear work breakdown structure
Answer B The project manager is asking how to make a change. The procedures, forms, sign-offs, and other similar requirements for handling changes should have already been defined in the change management plan (choice B). Because they weren't, the project manager will waste valuable work time trying to figure it out after the fact.
17. You are taking over a project during the planning process group and discover that six individuals have signed the project charter. Which of the following should MOST concern you? A. Who will be a member of the change control board B. Spending more time on configuration management C. Getting a single project sponsor D. Determining the reporting structure
Answer B This situation implies that there are six areas concerned with this project. In addition to added communications requirements, you should be concerned with competing needs and requirements impacting your efforts on configuration management.
7. A work authorization system can be used to: A. Manage who does each activity B. Manage what time and in what sequence work is done C. Manage when each activity is done D. Manage who does each activity and when it is done
Answer B Who does each activity (choices A and D) is managed with the schedule and responsibility assignment matrices. The project schedule manages when each activity is done (choice C). A work authorization system is used to coordinate when and in what order the work is performed so that work and people may properly interface with other work and other people.
5. A project manager has very little project experience, but he has been assigned as the project manager of a new project. Because he will be working in a matrix organization to complete his project, he can expect communications to be: A. Simple B. Open and accurate C. Complex D. Hard to automate
Answer C Because a project done in a matrix organization involves people from across the organization, communications are more complex.
15. Your management has decided that all orders will be treated as "projects" and that project managers will be used to update orders daily to resolve issues, and to ensure that the customer formally accepts the product within 30 days of completion. Revenue from the individual orders can vary from $100 to $150,000. The project manager will not be required to perform planning or provide documentation other than daily status. How would you define this situation? A. Because each individual order is a "temporary endeavor" each order is a project B. This is program management since there are multiple projects involved C. This is a recurring process D. Orders incurring revenue over $100,000 would be considered projects and would involve project management
Answer C Because orders are numerous and of short duration, this situation is a process, not a project.
18. One of your team members informs you that he does not know which of the many projects he is working on is the most important. Who should determine the priorities among projects in a company? A. The project manager B. The project management team C. The project management office D. The team
Answer C Because the question talks about priorities among projects, this cannot be the role of the project manager (choice A), the project management team (choice B), or the project team (choice D).
20. Operational work is different from project work in that it is: A. Unique B. Temporary C. On-going and repetitive D. A part of every project activity
Answer C Operational work is that which is ongoing to sustain an organization.
23. Consideration of ongoing operations and maintenance is crucially important to products of projects. Ongoing operations and maintenance should: A. Be included as activities to be performed during project closure B. Have a separate phase in the project life cycle, because a large portion of life cycle costs is devoted to maintenance and operations C. Not be viewed as part of a project. A project is temporary with a definite beginning and end D. Be viewed as a separate project
Answer C Remember the definition of a project: temporary and unique. Operations and maintenance are considered on-going activities, not temporary. Therefore, such work is not considered a project or part of a project.
11. The project is in the planning process when three stakeholders come to the project manager asking for information on the company's new project management methodology. They want to know where it came from and why it is different from the way they currently manage projects. These stakeholders are also friends of the project manager, and the entire group has worked together for years. The project is using some new terms like "corrective action" that are making some stakeholders nervous, as they are unsure whether the way projects will be managed is going to change along with new terms. What should the project manager do? A. Advise the stakeholders that she will keep them in the communication loop for the project B. Supply a list of new terms and definitions C. Notify the project management office (PMO) D. Make sure she maintains her authority as the project manager even though the stakeholders are her friends
Answer C Some students may think this question has more than one right answer. It does not. There are many things the project manager can do, but what should be done? The company policies are managed by the project management office and the project manager should make sure the stakeholders have clear information by sending them directly to the authority on company policies for project management.
10. A manager and the head of engineering discuss a change to a major work package. After the meeting, the manager contacts you and tells you to complete the paper work to make the change. This is an example of: A. Management attention to scope management B. Management planning C. A project expediter position D. A change control system
Answer C This is an example of a project expediter position because you are not evaluating the change, looking for impacts, etc. You are merely implementing others' requests. In this case, you are acting as the project expediter.
A cost baseline is an output of which cost management process? A. Estimate Activity Resources B. Estimate Costs C. Determine Budget D. Control Costs
Answer C Explanation A cost baseline is an output of the Determine Budget process.
What is the duration of a milestone? A. Shorter than the duration of the longest activity B. Shorter than the activity it represents C. There is no duration D. Same length as the activity it represents
Answer C Explanation A milestone shows the completion of a series of activities or work packages. Therefore, it takes no time of its own. With this in mind, choice C is the best answer.
The first phase of your project has come to an end. What should you ensure is done BEFORE beginning the next phase? A. Verify that the resources are available for the next phase. B. Check the project's progress compared to its baselines. C. Confirm that the phase has reached its objectives, and have its deliverables formally accepted. D. Recommend corrective action to bring the project results in line with project expectations.
Answer C Explanation A phase or project must be formally closed and accepted.
A watchlist is an output of which risk management process? A. Plan Risk Responses B. Perform Quantitative Risk Analysis C. Perform Qualitative Risk Analysis D. Plan Risk Management
Answer C Explanation A watch list is made up of low priority risks that, in the Perform Qualitative Risk Analysis process, were determined to be of too low priority or low impact to move further in the risk process.
Although the stakeholders thought there was enough money in the budget, halfway through the project the cost performance index (CPI) is 0.7. To determine the root cause, several stakeholders audit the project and discover the project cost budget was estimated analogously. Although the activity estimates add up to the project estimate, the stakeholders think something was missing in how the estimate was completed. Which of the following describes what was missing? A. Estimated costs should be used to measure CPI. B. SPI should be used, not CPI. C. Bottom-up estimating should have been used. D. Past history was not taken into account.
Answer C Explanation Actual costs are used to measure CPI, and there is no reason to use SPI in this situation, so choices A and B are not correct. Using past history (choice D) is another way of saying analogous. The best way to estimate is bottom-up (choice C). Such estimating would have improved the overall quality of the estimate.
Which process groups must be included in every project? A. Planning, executing, and closing B. Initiating, planning, and executing C. Initiating, planning, executing, monitoring and controlling, and closing D. Planning, executing, and monitoring and controlling
Answer C Explanation All five process groups are addressed in each project. It is the responsibility of the project manager to determine the level of attention to give to each process group.
Analogous estimating: A. Uses bottom-up estimating techniques. B. Is used most frequently during the executing processes of the project. C. Uses top-down estimating techniques. D. Uses actual detailed historical costs.
Answer C Explanation Analogous estimating is used most frequently during the planning processes, not the executing processes (choice B). You do not need to use historical costs (choice D) for an analogous estimate. Therefore, choice C is the correct answer.
A seller is awarded a contract to build a pipeline. The contract terms and conditions require that a work plan be issued for the buyer's approval prior to commencing work, but the seller fails to provide one. Which of the following is the BEST thing for the buyer's project manager to do? A. File a letter of intent. B. Develop the work plan and issue it to the seller to move things along. C. Issue a default letter. D. Issue a stop work order to the seller until a work plan is prepared.
Answer C Explanation Any time that a seller does not perform according to the contract, the project manager must take action. The preferred choice might be to contact the seller and ask what is going on, but that choice is not available here. Therefore, the best choice is to let him know he is in default (choice C).
Which of the following BEST describes the project manager's role during the procurement process? A. The project manager has only minor involvement. B. The project manager should be the negotiator. C. The project manager should supply an understanding of the risks of the project. D. The project manager should tell the contract manager how the contracting process should be handled.
Answer C Explanation As the project manager, you know what the project risks are. You need to make sure that provisions are included in the contract to address these risks.
During a meeting with some of the project stakeholders, the project manager is asked to add work to the project scope. The project manager had access to correspondence about the project before the project charter was signed and remembers that the project sponsor specifically denied funding for the scope mentioned by these stakeholders. The BEST thing for the project manager to do is to: A. Let the sponsor know of the stakeholders' request. B. Evaluate the impact of adding the scope. C. Tell the stakeholders the scope cannot be added. D. Add the work if there is time available in the project schedule.
Answer C Explanation Based on the information presented, there is no reason to try to convince the sponsor to add the work (choices B and D). Though one could let the sponsor know (choice A) the best choice would be to say no. A better choice would be to find the root cause of the problem, but that choice is not listed here.
A project manager has very little project experience, but he has been assigned as the project manager of a new project. Because he will be working in a matrix organization to complete his project, he can expect communications to be: A. Simple. B. Open and accurate. C. Complex. D. Hard to automate.
Answer C Explanation Because a project done in a matrix organization involves people from across the organization, communications are more complex.
Your management has decided that all orders will be treated as projects and that project managers will be used to update orders daily, to resolve issues, and to ensure that the customer formally accepts the product within 30 days of completion. Revenue from the individual orders can vary from US $100 to US $150,000. The project manager will not be required to perform planning or provide documentation other than daily status. How would you define this situation? A. Because each individual order is a temporary endeavor:' each order is a project. B. This is program management since there are multiple projects involved. C. This is a recurring process. D. Orders incurring revenue over $100,000 would be considered projects and would involve project management.
Answer C Explanation Because orders are numerous and of short duration, this situation is a process, not a project.
One of your team members informs you that he does not know which of the many projects he is working on is the most important. Who should determine the priorities among projects in a company? A. The project manager B. The project management team C. The project management office D. The team
Answer C Explanation Because the question talks about priorities among projects, this cannot be the role of the project manager (choice A), the project management team (choice B), or the project team (choice D).
You are a new project manager who has never managed a project before. You have been asked to plan a new project. It would be BEST in this situation to rely on during planning in order to improve your chance of success. A. Your intuition and training B. Stakeholder analysis C. Historical information D. Configuration management
Answer C Explanation Because you have no experience, you will have to look at the experience of others. This information is captured in the historical records from previous projects.
You are a project manager who was just assigned to take over a project from another project manager who is leaving the company. The previous project manager tells you that the project is on schedule, but only because he has constantly pushed the team to perform. What is the FIRST thing you should do as the new project manager? A. Check risk status. B. Check cost performance. C. Determine a management strategy. D. Tell the team your objectives.
Answer C Explanation Before you can do anything else, you have to know what YOU are going to do. Developing the management strategy will provide the framework for all the rest of the choices presented and the other activities that need to be done.
Project information has been distributed according to the communications management plan. Some project deliverables have been changed in accordance with the project management plan. One stakeholder expressed surprise to the project manager upon hearing of a previously published change to a project deliverable. All stakeholders received the communication containing notification of the change. What should the project manager do? A. Determine why the stakeholder did not receive the information and let him know when it was published. B. Ask the functional manager why the stakeholder did not understand his responsibility. C. Review the communications management plan and make revisions if necessary. D. Address the situation in the next steering committee meeting so others do not miss published changes.
Answer C Explanation Choice A cannot be correct because the question states that all stakeholders received the information. Choices Band D do not address the root cause of the problem. The problem presented here shows that there is something missing in the communications management plan. The best answer is to review the communications management plan in order to prevent future problems and find any instances of similar problems.
A project manager discovers a defect in a deliverable due to the customer under contract today. The project manager knows the customer does not have the technical understanding to notice the defect. The deliverable meets the contract requirements, but it does not meet the project manager's quality standard. What should the project manager do in this situation? A. Issue the deliverable and get formal acceptance from the customer. B. Note the problem in the lessons learned so future projects do not encounter the same problem. C. Discuss the issue with the customer. D. Inform the customer that the deliverable will be late.
Answer C Explanation Choice A does not follow the rule to protect the best interests of the customer. Choice B does not solve the problem. Choice D will cause a default of contract. Although the deliverable meets the contractual requirements, it is best to bring the problem to the customer's attention (choice C) so an option that does no harm can be found.
Cost risk means: A. There are risks that will cost the project money. B. The project is too risky from a cost aspect. C. There is a risk that project costs could go higher than planned. D. There is a risk that the cost of the project will be lower than planned.
Answer C Explanation Choice A is a correct statement but it is not the definition of cost risk. Choice B refers to the overall cost risk on the project, and assumes that the risk is too great to do the project. The opposite of choice D is correct.
A project manager is being considered for a particular project that will deal exclusively with global virtual teams. He only has experience with local teams. What should he do when discussing the opportunity with the sponsor? A. Since he has led projects and teams, it does not make any difference that these are all global virtual teams, so he does not need to bring it up. B. He should avoid any conversation regarding the types of teams involved so the sponsor does not know he lacks experience in this area. C. The project manager should point out to the sponsor that he has not had experience with global virtual teams, but discuss why he thinks he is a good fit for the project anyway. D. The project manager should point out to the sponsor that he has not had experience with global virtual teams and therefore must decline the assignment.
Answer C Explanation Choice A is incorrect because there are many issues that will be different in this project than those the project manager has experience with. Choice B is unethical and constitutes lying about his qualifications. Choice D is not right because the project manager may have so many skills that would benefit the project that this might not be a major problem. We must make sure sponsors know of any gaps in our qualifications when taking on assignments.
Which of the following BEST describes the relationship between standard deviation and risk? A. Nothing B. Standard deviation tells you if the estimate is accurate. C. Standard deviation tells you how unsure the estimate is. D. Standard deviation tells you if the estimate includes a pad.
Answer C Explanation Choice A is not best, as the standard deviation tells you the amount of uncertainty or risk involved in the estimate for the activity. An estimate can have a wide range (choice B) and still be accurate if the item estimated includes risks. Choice D cannot be the best answer since there is no such thing as a pad in proper project management. An estimate might be inflated, but it is because of risks, not padding.
The WBS, estimates for each work package, and the network diagram are completed. Which of the following would be the NEXT thing for the project manager to do? A. Sequence the activities. B. Verify that they have the correct scope. C. Create a preliminary schedule and get the team's approval. D. Complete risk management.
Answer C Explanation Choice A is the same thing as create a network diagram. Choice B is another name for Verify Scope, which is done during the monitoring and controlling process group, not during project planning. Since a schedule is an input to risk management, choice D comes after choice C and so it is not the next thing to do: The only remaining choice is C.
The project manager is allocating overall cost estimates to individual activities to establish a baseline for measuring project performance. What process is this? A. Cost Management B. Estimate Costs C. Determine Budget D. Control Costs
Answer C Explanation Choice A is too general. The estimates are already created in this example, so the answer is not choice B. The answer is not D, Control Costs, because the baseline has not yet been created. The correct answer is choice C.
A project manager needs to analyze the project costs to find ways to decrease costs. It would be BEST if the project manager looks at: A. Variable costs and fixed costs. B. Fixed costs and indirect costs. C. Direct costs and variable costs. D. Indirect costs and direct costs.
Answer C Explanation Choice C describes costs that are directly attributable to the project or that vary with the amount of work accomplished. Human Resource Management CHAPTER NINE
You are managing a six-month project and have held biweekly meetings with your project stakeholders. After five-and-a-half months of work, the project is on schedule and budget, but the stakeholders are not satisfied with the deliverables. This situation will delay the project completion by one month. The MOST important process that could have prevented this situation is: A. Monitor and Control Risks. B. Control Schedule. C. Define Scope. D. Control Scope.
Answer C Explanation Choices A, B, and D are processes in the monitoring and controlling process group. This situation asks how to prevent the problem. This would have been done during the planning processes. The project deliverables are defined in the Define Scope process (choice C), which is a part of project planning. Good planning reduces the likelihood of a situation like the one described by including the right people and spending adequate time in clarifying the project scope.
You are in the middle of executing a major modification to an existing product when you learn that the resources promised at the beginning of the project are not available. The BEST thing to do is to: A. Show how the resources were originally promised to your project. B. Replan the project without the resources. C. Explain the impact if the promised resources are not made available. D. Crash the project.
Answer C Explanation Choices B and D are essentially delaying the situation. Instead, the project manager should try to prevent the situation by showing the consequences if the resources are not available (choice C). This is a more effective strategy than saying but you gave them to me:' as in choice A.
The project team has just completed the initial project schedule and budget. The NEXT thing to do is: A. Identify risks. B. Begin iterations. C. Determine communications requirements. D. Create a bar (Gantt) chart.
Answer C Explanation Communications requirements and quality standards are needed before risks (especially risks relating to communications and quality) can be determined (choice A). Iterations (choice B) cannot begin until the risks are identified, qualified, quantified, and responses developed. These then create the need to revise the WBS and other parts of the project management plan. A bar chart (choice D) would have been done during the creation of the schedule, so it cannot be the next thing. Of the choices listed, determine communications requirements (choice C) is the best.
In order to complete work on your projects, you have been provided confidential information from all of your clients. A university contacts you to help it in its research. Such assistance would require you to provide the university with some of the client data from your files. What should you do? A. Release the information, but remove all references to the clients' names. B. Provide high-level information only. C. Contact your clients and seek permission to disclose the information. D. Disclose the information.
Answer C Explanation Confidential information should be respected (not disclosed to third parties without the express approval of the client). If you picked choice A, remember that the clients own the confidential information. See, not all professional and social responsibility questions are tough!
The engineering department wants the project objective to be a 10 percent improvement in throughput. The information technology department wants no more than 5 percent of its resources to be used on the project. Management, who is also your boss, wants the project team to decrease tax liability. The BEST thing you can do is: A. Put a plan together that meets all the objectives. B. Have these people get together and agree on one objective. C. Include the engineering and information technology objectives but hold further meetings regarding management's objective. D. Include only management's objective.
Answer C Explanation Did this one catch you? All deliverables must be quantifiable. Management's objective cannot be measured and therefore, needs more work. That means choice A is not correct. All parties rarely agree on all objectives (choice B). All the objectives should be met, but they must be quantifiable, so choice D is not correct. You need to have more discussions with management so you can make their objective quantifiable.
You have a project with the following activities: Activity A takes 40 hours and can start after the project starts. Activity B takes 25 hours and should happen after the project starts. Activity C must happen after activity A and takes 35 hours. Activity D must happen after activities Band C and takes 30 hours. Activity E must take place after activity C and takes 10 hours. Activity F takes place after Activity E and takes 22 hours. Activities F and D are the last activities of the project. Which of the following is TRUE if activity B actually takes 37 hours? A. The critical path is 67 hours. B. The critical path changes to Start, B, D, End. C. The critical path is Start, A, C, E, F, End. D. The critical path increases by 12 hours.
Answer C Explanation Did you notice how difficult this question was to read? Such wording is intentional, to prepare you for interpreting questions on the real exam. Looking at this situation, you see that there are three paths through the network. They are Start, A, C, E, F, End with a duration of 40 + 35 + 10 + 22 = 107; Start, A, C, D, End with a duration of 40 + 35 + 30 = 105; and Start, B, D, End with a duration of 25 + 30 = 55. If the duration of activity B changes from 25 to 37, the activity will take 12 hours longer. As the activity is only on the third path, it will only change the duration of that path from 55 to 55 + 12 = 67 hours. Since the duration of the critical path is 107 hours, the delay with activity B will have no impact on the project timeline or the current critical path.
The new project is exciting to both the project manager and the team. This is the project manager's first assignment as project manager. The team has the feeling that they will be able to complete work that has never been tried before. There are 29 people contributing to the product description and the team consists of nine highly experienced experts in their field. Part of the way through planning, three highly technical team members are disagreeing about the scope of two of the deliverables. One is pointing to the draft WBS and saying that two additional work packages should be added. Another is saying that a particular work package should not even be done. The third team member agrees with both of them. How should the project manager BEST deal with the conflict? A. He should listen to the differences of opinion, determine the best choice, and implement that choice. B. He should postpone further discussions, meet with each individual, and determine the best approach. C. He should listen to the differences of opinions, encourage logical discussions, and facilitate an agreement. D. He should help the team focus on agreeable aspects of their opinions and build unity by using relaxation techniques and common focus team building.
Answer C Explanation Do not get confused by the wordiness of the question. Ask yourself what is the best way to resolve any conflict, and you can get the answer. Most of the situation is a distracter. Problem solving and compromising are the two most important conflict resolution techniques. Conflict management is a key general management skill.
The client demands changes to the product specification that will add only two weeks to the critical path. Which of the following is the BEST thing for the project manager to do? A. Compress the schedule to recover the two weeks. B. Cut scope to recover the two weeks. C. Consult with the sponsor about options. D. Advise the client of the impact of the change.
Answer C Explanation Do you remember what to do when there is a change? Evaluate first. You wouldn't take action before getting approval, so compressing the schedule (choice A) and cutting scope (choice B) would happen after choices C and/or D. You would not go to the customer before going to your internal management, so choice D is not the correct thing to do next. The next step is to discuss options with the sponsor (choice C).
In which process group does the team measure and analyze the work being done on the project? A. Initiating B. Executing C. Monitoring and controlling D. Closing
Answer C Explanation During the monitoring and controlling process group, project performance is measured, and needed changes are identified and approved.
A schedule performance index (SPI) of 0.76 means: A. You are over budget. B. You are ahead of schedule. C. You are only progressing at 76 percent of the rate originally planned. D. You are only progressing at 24 percent of the rate originally planned.
Answer C Explanation Earned value questions ask for a calculation or an interpretation of the results. See the tricks under this topic in this book.
A project manager gets a call from a team member notifying him that there is a variance between the speed of a system on the project and the desired or planned speed. The project manager is surprised because that performance measurement was not identified in planning. If the project manager then evaluates whether the variance warrants a response, he is in what project management process? A. Initiating B. Executing C. Monitoring and controlling D. Closing
Answer C Explanation Even though the measurement was not identified in planning, the project manager would still have to investigate the variance and determine if it is important. Therefore, the project manager is in the project monitoring and controlling process group.
Bidder conferences are part of: A. Plan Procurements. B. Administer Procurements. C. Conduct Procurements. D. Communications Management.
Answer C Explanation Expect many questions on the exam that require you to know in what part of the procurement process activities are done.
If a project has a 60 percent chance of a US $100,000 profit and a 40 percent chance of a US$100,000 loss, the expected monetary value for the project is: A. $100,000 profit. B. $60,000 loss. C. $20,000 profit. D. $40,000 loss.
Answer C Explanation Expected monetary value (EMV) is computed by EMV = Probability x Impact. We need to compute both positive and negative values and then add them. 0.6 x $100,000 = $60,000. 0.4 x ($100,000) = ($40,000) Expected Monetary Value = $60,000 - $40,000 = $20,000 profit
If a risk event has a 90 percent chance of occurring, and the consequences will be US $10,000, what does US $9,000 represent? A. Risk value B. Present value C. Expected monetary value D. Contingency budget
Answer C Explanation Expected monetary value is computed by multiplying the probability times the impact. In this case, EMV = 0.9 x $10,000 = $9,000.
If project time and cost are not as important as the number of resources used each month, which of the following is the BEST thing to do? A. Perform a Monte Carlo analysis. B. Fast track the project. C. Perform resource leveling. D. Analyze the life cycle costs.
Answer C Explanation Fast tracking (choice B) would affect time and cost. Monte Carlo analysis and life cycle costs (choices A and D) do not directly deal with resources. Leveling (choice C) is the only choice that will definitely affect resources.
The project has been challenging to manage. Everyone has been on edge due to pressure to complete the project on time. Unfortunately, the tension has grown to the point where team meetings have become shouting matches and little work is accomplished during the meetings. One team member asks to be excused from future team meetings, as all the shouting upsets him. Meanwhile, the sponsor has asked to attend team meetings in order to better understand how the project is going and the issues involved in completing the project, and the customer has started discussions about adding scope to the project. In this situation, it would be BEST for the project manager to: A. Ask the sponsor if the information needed could be sent in a report rather than have her attend the meeting. B. Inform the team member who asked to be excused from the meetings of the value of communication in such meetings. C. Create new ground rules for the meetings and introduce them to the team. D. Hold a team-building exercise that involves all the team members.
Answer C Explanation Here is a situation where all four choices could be done. Choice A does not solve the root cause of the problem described. Choice B merely dismisses the concerns of the team member and might cause anger. A team building exercise (choice D) would take planning and so could not be done right away. Remember, the sponsor might be attending the next meeting and at least one team member might not attend because of past problems. The best thing to do would be to set up new ground rules for the team governing behavior (choice C) and then plan a team-building exercise (choice D).
Who has the cost risk in a fixed price (FP) contract? A. The team B. The buyer C. The seller D. Management
Answer C Explanation If the costs are more than expected under a fixed price contract, the seller must pay those costs. As explained in the Procurement Management chapter, cost risk refers to the person who will have to pay for the added cost if costs escalate. Because the price is fixed, the seller will have to pay any increased costs out of their profit. Naturally, this does not include increased PRICE due to change orders. A fixed price contract and the PRICE could be changed with change orders.
With a clear contract statement of work, a seller completes work as specified, but the buyer is not pleased with the results. The contract is considered to be: A. Null and void. B. Incomplete. C. Complete. D. Waived.
Answer C Explanation If the seller completes the work specified in the procurement statement of work, the contract is considered complete. That does not mean the same thing as contract closed. The Close Procurements process must still occur. However, in this situation, the contract work is completed. Tricky!
You are finding it difficult to evaluate the exact cost impact of risks. You should evaluate on a(n): A. Quantitative basis. B. Numerical basis. C. Qualitative basis. D. Econometric basis.
Answer C Explanation If you cannot determine an exact cost impact to the event, use qualitative estimates such as Low, Medium, High, etc.
A team member notifies the project manager that the activities comprising a work package are no longer appropriate. It would be BEST for the project manager to be in what part of the project management process? A. Corrective action B. Integrated change control C. Monitoring and controlling D. Project closing
Answer C Explanation If you chose another part of the project management process, you probably forgot that the situation needs to be evaluated by the project manager before recommending a change or entering integrated change control.
Your company has an emergency and needs contracted work done as soon as possible. Under these circumstances, which of the following would be the MOST helpful to add to the contract? A. A clear procurement statement of work B. Requirements as to which subcontractors can be used C. Incentives D. A force majeure clause
Answer C Explanation If you follow the proper project management process, you ALWAYS have good definition of scope (choice A). In this situation, you are in a time crunch. Both good scope definition and incentives are required to make it happen. Which provides the better answer? Along with good scope definition, you need the seller to feel your need for speed. Incentives bring the seller's objectives in line with the buyer's and thus would be the MOST helpful. Good cope definition alone does not ensure speed.
During project executing, your project team member delivers a project deliverable to the buyer. However, the buyer refuses the deliverable, stating that it does not meet the requirement on page 300 of the technical specifications. You review the document and find that you agree. What is the BEST thing to do? A. Explain that the contract is wrong and should be changed. B. Issue a change order. C. Review the requirements and meet with the responsible team member to review the WBS dictionary. D. Call a meeting of the team to review the requirement on page 300.
Answer C Explanation In choice A, the contract could be wrong, or the customer could be wrong, but this would have/should have been discovered earlier if proper project management was followed. If you picked choice B, you have forgotten that a seller cannot issue a change order (although he could request one). Did you select choice D? If so, remember that project management is not about making every decision with ALL the team members. Choice C involves meeting with the appropriate team member. If such a problem has arisen, it could mean something was wrong in the WBS dictionary or in how the team member completed the work.
A project manager for the seller is told by her management that the project should do whatever possible to be awarded incentive money. The primary objective of incentive clauses in a contract is to: A. Reduce costs for the buyer. B. Help the seller control costs. C. Synchronize objectives. D. Reduce risk for the seller by shifting risk to the buyer.
Answer C Explanation Incentives are meant to bring the objectives of the seller in line with those of the buyer. That way both are progressing toward the same objective.
The halo effect refers to the tendency to: A. Promote from within. B. Hire the best. C. Move people into project management because they are good in their technical fields. D. Move people into project management because they have had project management training.
Answer C Explanation Just because a person is good in his technical field does not mean he or she will also be a good project manager.
Your project management plan results in a project schedule that is too long. If the project network diagram cannot change but you have extra personnel resources, what is the BEST thing to do? A. Fast track the project. B. Level the resources. C. Crash the project. D. Monte Carlo analysis.
Answer C Explanation Leveling resources (choice B) generally extends the schedule. Monte Carlo analysis (choice D) does not directly address the constraints of this situation. To compress the schedule, you could either crash or fast track. However, the situation says that the network diagram cannot change. This eliminates the fast tracking option (choice A), leaving choice C as the best answer.
All of the following MUST be present to have a contract EXCEPT: A. Procurement statement of work B. Acceptance C. Address of the seller D. Buyers' signatures
Answer C Explanation Many people miss the fact that a contract includes a procurement statement of work (choice A). To have a contract, you must also have acceptance (choice B). One set of signatures is not enough; you must have sign-off (i.e., acceptance) from both parties, so choice D is only partially correct. The address of the seller (choice C) is not required, and therefore is the exception.
It is the middle of the project when the project manager is informed by her scheduler that the project control limits are secure. That same morning she receives a note from a team member about a problem he is having. The note says, "This activity is driving me crazy, and the manager of the accounting department won't help me until the activity's float is in jeopardy." In addition, the project manager has e-mails from a minor stakeholder and 14 e-mails from team members. While she is reading the e-mails, a team member walks into the project manager's office to tell her a corrective action was implemented by a team member from the project management office, but was not documented. What should the project manager do NEXT? A. Report the documentation violation to the project management office, evaluate the security of the control limits, and review the e-mailing rules in the communications management plan. B. Clarify the reasoning behind documentation being a problem, get the accounting department to assist the team member, and respond to the minor stakeholder. C. Add the implemented corrective action to the historical records, discuss the value of documentation at the next team meeting, and smooth the team member with the accounting department problem. D. Find out who caused the problem with the accounting department, respond to the minor stakeholder before responding to the other e-mails, and review the process listed in the communications plan for reporting concerns with the team member having the documentation problem.
Answer C Explanation Notice how many situations are thrown at you in this question. It is important to practice reading through questions to discover what is important and what is just background information. In this question, the only thing relevant was the corrective action taken. Once you discover what the issue is, look at the choices to find out which is best for addressing the issue. What is the issue here? Did you realize that the team member's note is about a non-critical path activity? (Until the project float is in jeopardy means that there is float and, thus, it is not on the critical path.) So is the issue the non-critical path activity or the documentation? You might disagree with the logic, but in this case the answer is the documentation. In the real world, problems often repeat. Without a record of what was done, there is no opportunity to consider the same solution for future problems. Documentation is critical to projects. Because documentation becomes part of the historical records database, choice C is correct.
In which project management process group is the detailed project budget created? A. Initiating B. Before the project management process C. Planning D. Executing
Answer C Explanation Notice the use of the word "detailed." Such a budget is created during the planning process group.
Once signed, a contract is legally binding unless: A. One party is unable to perform. B. One party is unable to finance its part of the work. C. It is in violation of applicable law. D. It is declared null and void by either party's legal counsel.
Answer C Explanation Once signed, a contract is binding. Generally, the inability to perform, get financing, or one party's belief that the contract is null and void does not change the fact that the contract is binding. If, however, both sides agree to terminate the contract, the contract can move into closure. Once closure is completed, the project is considered completed.
A scope change has been suggested by one of the stakeholders on the project. After careful consideration and a lot of arguing, the change control board has decided to reject the change. What should the project manager do? A. Support the stakeholder by asking the board for the reason for the rejection. B. Suggest to the stakeholder that the next change they request will be approved. C. Record the change request and its result. D. Advise the change control board to make sure they create approval processes before the next change is proposed.
Answer C Explanation One could do choice A, but there is no reason to think that the board's rejection would not contain an explanation already, since providing that information is commonly done. Suggesting a change process that circumvents the change control board's authority (choice B) is not ethical. There is no reason to think that approval processes are not already in place (choice D). A rejected change should be recorded for historical purposes, in case the idea is resurrected later, and for other reasons.
Operational work is different from project work in that it is: A. Unique B. Temporary C. On-going and repetitive. D. A part of every project activity.
Answer C Explanation Operational work is that which is ongoing to sustain an organization.
Negotiations between two parties are becoming complex, so party A makes some notes that both parties sign. However, when the work is being done, party B claims that they are not required to provide an item they both agreed to during negotiations, because it was not included in the subsequent contract. In this case, party B is: A. Incorrect, because both parties must comply with what they agreed upon. B. Correct, because there was an offer. C. Generally correct, because both parties are only required to perform what is in the contract. D. Generally incorrect, because all agreements must be upheld.
Answer C Explanation Party B is only required to deliver what is defined in the contract.
A project manager discovers an urgent need for outsourced resources on the project. He knows he has the money to cover the cost of these resources. He goes to the procurement manager and explains the situation, insisting a contract be drawn up today so he can obtain resources and circumvent the standard procedure. Is this the correct process to follow? A. Yes, of course. For urgent needs, it is not necessary to follow the organization's procedure regarding procurement. B. Yes. Urgent needs from projects should always be dealt with immediately as directed by the project manager. C. No. The procurement manager has a process to follow when creating contracts that helps protect the company and its projects. D. No. The procurement manager should be checking in with the project manager to see if he is in need of a contract, rather than making the project manager come and ask for one.
Answer C Explanation Procrastination or a lack of planning on the part of the project manager does not create an emergency situation for the procurement manager. Circumventing the process (choice A) is not ethical. Choice B implies that projects always come first, and that the project manager has authority over the procurement manager. Choice D is not a common practice, nor is it logical. Choice C is the correct answer because it demonstrates respect for the procurement manager and the processes in place to protect the organization.
When would a milestone chart be used instead of a bar chart? A. Project planning B. Reporting to team members C. Reporting to management D. Risk analysis
Answer C Explanation Project planning (choice A) would use both types of charts. Team members (choice B) need to see details and so they need a bar chart rather than a milestone chart. Risk analysis (choice D) COULD make use of both charts. A milestone chart is used instead of a bar chart for any situation where you want to report in a less detailed way (choice C). Bar charts can scare people with their complexity and often show too much detail to be worthwhile on a management level. Milestone charts are more effective for reporting to management.
You are in the middle of a complex negotiation when the other party says, "We need to finish in one hour because I have to catch my plane." That person is using which of the following negotiation strategies? A. Good guy, bad guy B. Delay C. Deadline D. Extreme demands
Answer C Explanation Putting a time limit on the negotiation is an example of deadline.
Which of the following is a benefit of an analogous project estimate? A. The estimate will be closer to what the work will actually require. B. It is based on a detailed understanding of what the work requires. C. It gives the project team an understanding of management's expectations. D. It helps the project manager determine if the project will meet the schedule.
Answer C Explanation Remember for the exam that analogous estimates are considered to be top-down, high-level estimates, even though a high-level or even a definitive estimate can be estimated analogously. Therefore, choices A and B cannot be correct. The project manager needs more than an analogous (high-level) estimate to determine whether or not the project will meet the schedule (choice D). It is a benefit to know management's expectations of how much the project will cost so that any differences between the analogous estimate and the detailed bottom-up estimate can be reconciled in the planning processes. The best choice is C.
Consideration of ongoing operations and maintenance is crucially important to products of projects. Ongoing operations and maintenance should: A. Be included as activities to be performed during project closure. B. Have a separate phase in the project life cycle, because a large portion of life cycle costs is devoted to maintenance and operations. C. Not be viewed as part of a project. A project is temporary with a definite beginning and end. D. Be viewed as a separate project.
Answer C Explanation Remember the definition of a project: temporary and unique. Operations and maintenance are considered on-going activities, not temporary. Therefore, such work is not considered a project or part of a project.
Project A has an internal rate of return (IRR) of 21 percent. Project B has an IRR of 7 percent. Project C has an IRR of 31 percent. Project D has an IRR of 19 percent. Which of these would be the BEST project? A. Project A B. Project B C. Project C D. Project D
Answer C Explanation Remember, the internal rate of return is similar to the interest rate you get from the bank. The higher the rate is, the better the return.
During every project team meeting, the project manager asks each team member to describe the work he or she is doing, and the project manager assigns new activities to team members. The length of these meetings has increased because there are many different activities to assign. This could be happening for all the following reasons EXCEPT: A. Lack of a WBS. B. Lack of a responsibility assignment matrix. C. Lack of resource leveling. D. Lack of team involvement in project planning.
Answer C Explanation Resource leveling refers to maintaining the same number of resources on the project for each time period. Leveling has nothing to do with assigning activities or managing meetings.
A dependency requiring that design be completed before manufacturing can start is an example of a: A. Discretionary dependency. B. External dependency. C. Mandatory dependency. D. Scope dependency.
Answer C Explanation Since the dependency is required, it could not be discretionary (choice A) and therefore must be mandatory. No mention is made that the dependency comes from a source outside the project, so external (choice B) is not correct. Scope dependency (choice D) is not a defined term. The key word in this question is requires:' The question defines a mandatory dependency.
Which of the following BEST describes the Verify Scope process? A. It provides assurances that the deliverable meets the specifications, is an input to the project management plan, and is an output of Perform Quality Control. B. It ensures that the deliverable is completed on time, ensures customer acceptance, and shows that the deliverable meets specifications. C. It ensures customer acceptance, shows that the deliverable meets specifications, and provides a chance for differences of opinion to come to light. D. It is an output of Perform Quality Control, occurs before Define Scope, and ensures customer acceptance.
Answer C Explanation Since the project management plan is completed before the Verify Scope process, choice A cannot be best. Since Verify Scope does not deal with time, but rather acceptance, choice B cannot be best. Since the Verify Scope process does not occur before the Define Scope process, choice D cannot be best. Only the statements in choice C are completely correct, making that the best answer.
All the following statements about change control are incorrect EXCEPT: A. A fixed price contract will minimize the need for change control. B. Changes seldom provide real benefits to the project. C. Contracts should include procedures to accommodate changes. D. More detailed specifications eliminate the causes of changes.
Answer C Explanation Since there can be changes in any form of contract, choice A is not the best answer. There are always good ideas (changes) that can add benefit to the project, so choice B cannot be the best answer. In choice D, the word eliminate implies that changes will not occur. As that is not true, this cannot be the best answer.
Which of the following BEST describes product analysis? A. Working with the customer to determine the product description B. Mathematically analyzing the quality desired for the project C. Gaining a better understanding of the product of the project in order to create the project scope statement D. Determining if the quality standard on the project can be met
Answer C Explanation Since you need to have a product description before you can do product analysis, choice A cannot be best. Choice B is related to Plan Quality. Choice D is Perform Quality Assurance. Time Management CHAPTER SIX
The project is in the planning process group when three stakeholders come to the project manager asking for information on the company's new project management methodology. They want to know where it came from and why it is different from the way they currently manage projects. These stakeholders are also friends of the project manager, and the entire group has worked together for years. The project is using some new terms like corrective action that are making some stakeholders nervous, as they are unsure whether the way projects will be managed is going to change along with new terms. What should the project manager do? A. Advise the stakeholders that she will keep them in the communication loop for the project. B. Supply a list of new terms and their definitions. C. Notify the project management office (PMO). D. Make sure she maintains her authority as the project manager even though the stakeholders are her friends.
Answer C Explanation Some students may think this question has more than one right answer. It does not. There are many things the project manager can do, but what should be done? The company policies are managed by the project management office and the project manager should make sure the stakeholders have clear information by sending them directly to the authority on company policies for project management.
When should the Verify Scope process be done? A. At the end of the project B. At the beginning of the project C. At the end of each phase of the project D. During the planning processes
Answer C Explanation The Verify Scope process occurs during the monitoring and controlling process group, so choices A, B, and D cannot be correct. Verify Scope is done at the end of each phase (the end of design, implementation, etc.), making choice C the best answer.
A project manager asked various stakeholders to determine the probability and impact of a number of risks. He then analyzed assumptions. He is about to move to the next step of risk management. Based on this information, what has the project manager forgotten to do? A. Evaluate trends in risk analysis. B. Identify triggers. C. Provide a standardized risk rating matrix. D. Create a fallback plan.
Answer C Explanation The activities of the Perform Qualitative Risk Analysis process are probability and impact definition, assumptions testing (data quality assessment), and probability and impact matrix development.
The project team is arguing about the prospective sellers who have submitted proposals. One team member argues for a certain seller while another team member wants the project to be awarded to a different seller. The BEST thing the project manager should remind the team to focus on in order to make a selection is the: A. Procurement documents. B. Procurement audits. C. Evaluation criteria. D. Procurement management plan.
Answer C Explanation The evaluation criteria are the primary tools for evaluating potential sellers and should be used by the entire team in order to make a selection.
A project manager is trying to convince management to use more formal project management procedures and has decided to start improving the company's project management by obtaining a project charter. Which of the following BEST describes why the project charter would help the project manager? A. It describes the details of what needs to be done. B. It lists the names of all team members. C. It gives the project manager authority. D. It describes the project's history.
Answer C Explanation The exam will ask questions like this to make sure you know the benefits you should be getting out of the process and tools of project management. The details of what needs to be done (choice A) are found in the WBS dictionary. The names of team members (choice B) are included in the responsibility assignment matrix and other documents. Project history (choice D) is found in the lessons learned and other project documents.
Which process group focuses on completing the requirements of the project? A. Initiating B. Planning C. Executing D. Closing
Answer C Explanation The executing process group is where work is done to produce the product of the project.
A team member is not performing well on the project because she is inexperienced in system development work. There is no one else available who is better qualified to do the work. What is the BEST solution for the project manager? A. Consult with the functional manager to determine project completion incentives for the team member. B. Obtain a new resource more skilled in development work. C. Arrange for the team member to get training. D. Allocate some of the project schedule reserve.
Answer C Explanation The job of the project manager includes providing or obtaining project -specific training for team members. This kind of training is a direct cost of the project.
Rearranging resources so that a constant number of resources is used each month is called: A. Crashing. B. Floating. C. Leveling. D. Fast tracking.
Answer C Explanation The key to this question is the phrase constant number used each month. Only leveling, choice C, has such an effect on the schedule.
To manage a project effectively, work should be broken down into small pieces. Which of the following does NOT describe how far to decompose the work? A. Until it has a meaningful conclusion B. Until it cannot be logically subdivided further C. Until it can be done by one person D. Until it can be realistically estimated
Answer C Explanation The lowest level of the WBS is a work package, which can be performed by more than one person.
The MOST likely result of communication blockers is that: A. The project is delayed. B. Trust level is enhanced. C. Conflict occurs. D. Senior management is displeased.
Answer C Explanation The major result of communication blockers and miscommunication as a whole is conflict.
A work breakdown structure numbering system allows the project staff to: A. Systematically estimate costs of work breakdown structure elements. B. Provide project justification. C. Identify the level at which individual elements are found. D. Use it in project management software.
Answer C Explanation The numbering system allows you to quickly identify the level in the work breakdown structure where the specific element is found. It also helps to locate the element in the WBS dictionary.
Which of the following BEST describes a project management plan? A. A printout from project management software B. A bar chart C. Risk, staffing, process improvement, and other management plans D. The project scope
Answer C Explanation The project management plan contains more than just a bar or Gantt chart and the project manager's plan for completing the work. It includes all the management plans for the project.
The need for is one of the major driving forces for communication in a project. A. Optimization B. Integrity C. Integration D. Differentiation
Answer C Explanation The project manager is an integrator. This is a question about your role as an integrator and communicator.
The BEST time to assign a project manager to a project is during: A. Executing. B. Closing. C. Initiating. D. Planning.
Answer C Explanation The project manager must be assigned during initiating.
After much excitement and hard work, the procurement statement of work for the project is completed. Even after gaining agreement that the procurement statement of work is complete, the project manager is still concerned whether it actually addresses all the buyer's needs. The project manager is about to attend the bidder conference. He asks you for advice on what to do during the session. Which of the following is the BEST advice you can give him? A. You do not need to attend this session. The contract manager will hold it. B. Make sure you negotiate project scope. C. Make sure you give all the sellers enough time to ask questions. They may not want to ask questions while their competitors are in the room. D. Let the project sponsor handle the meeting so you can be the good guy in the negotiation session.
Answer C Explanation The project manager should attend the bidder conference, so choice A is incorrect. Did you select choice B because the question referred to a concern about scope? Then read the choice again. It talks about negotiation, and negotiation occurs after the seller is selected, not during the bidder conference. The procurement manager usually holds the bidder conference, so choice D is incorrect. Choice C describes one of the many challenges of a bidder conference and is therefore the best answer.
A project manager may use to make sure the team members clearly know what work is included in each of their work packages. A. The project scope statement B. The product scope C. A WBS dictionary D. A schedule
Answer C Explanation The project scope statement (choice A) describes work on a high-level basis. Work packages need to be specific to enable team members to complete their work with less gold plating. The product scope (choice B) would not tell team members what work is assigned to them. The team should have a copy of the schedule (choice D), but a schedule will not show them what work is included in each of their work packages. Work packages are described in the WBS dictionary (choice C). NOTE: Do not think of the WBS dictionary as a dictionary of terms.
You were in the middle of a two-year project to deploy new technology to field offices across the country. A hurricane caused power outages just when the upgrade was near completion. When the power was restored, all of the project reports and historical data were lost with no way of retrieving them. What should have been done to prevent this problem? A. Purchase insurance. B. Plan for a reserve fund. C. Monitor the weather and have a contingency plan. D. Schedule the installation outside of the hurricane season.
Answer C Explanation The risk is the loss of data due to a power outage. Choice A is not related to mitigating the problem. It transfers the risk. A reserve fund (choice B) is acceptance and would help address the cost factors after the power failure, but would not reduce the probability or impact of it. Avoiding the hurricane by scheduling the installation at a different time (choice D) mitigates the power outage risk but could have a large negative impact on the project schedule and so is not the best choice. The better choice of the mitigation options (choices C and D) is to monitor the weather and know when to implement the contingency plan.
A project is plagued by changes to the project charter. Who has the primary responsibility to decide if these changes are necessary? A. The project manager B. The project team C. The sponsor D. The stakeholders
Answer C Explanation The sponsor issues the project charter and so he or she should help the project manager control changes to the charter. The primary responsibility lies with the sponsor.
During the first half of the project, five team members left for other projects without being replaced, two team members went on vacation without informing you, and other team members expressed uncertainty about the work they were to complete. In this situation, it is BEST if you create a ______ for the second half of the project? A. Work breakdown structure B. Resource histogram C. Staffing management plan D. Responsibility assignment matrix
Answer C Explanation The staffing management plan describes when resources will be brought onto and taken off the project.
A project manager's scope management efforts are being audited. The cost performance index (CPI) on the project is 1.13, and the benefit cost ratio (BCR) is 1.2. The project scope was created by the team and stakeholders. Requirements on the project have been changing throughout the project. No matter what the project manager has tried to accomplish in managing the project, which of the following is he MOST likely to face in the future? A. Having to cut costs on the project and increase benefits B. Making sure the customer approved the project scope C. Not being able to measure completion of the product of the project D. Having to add resources to the project
Answer C Explanation There are many pieces of data in this question that are distracters from the real issue. Though it is common to have to cut costs (choice A) and add resources to a project (choice D), nothing in the question should lead you to think these will be required in this situation. Customers do not generally approve the project scope (what you are going to do to complete their requirements); instead, they approve the product scope (their requirements), so choice B cannot be best. Since the requirements are a measure of the completion of the product of the project (choice C), not having completed requirements makes such measurement impossible. This is why choice C is the best choice.
You have always been asked by your management to cut your project estimate by 10 percent after you have given it to them. The scope of your new project is unclear and there are over 30 stakeholders. Management expects a 25 percent reduction in downtime as a result of the project. Which of the following is the BEST course of action in this situation? A. Replan to achieve a 35 percent improvement in downtime. B. Reduce the estimates and note the changes in the risk response plan. C. Provide an accurate estimate of the actual costs and be able to support it. D. Meet with the team to identify where you can find 10 percent savings.
Answer C Explanation This is a common problem on projects that many inexperienced project managers handle by doing choice B or D. If your estimates are accurate, you are ethically bound to stand by them (choice C). Management's only option to cut cost is to support the project manager's looking for options related to the other project constraints. Choice A does not address costs, the issue at hand.
The seller tells you that your activities have resulted in an increase in their costs. You should: A. Recommend a change to the project costs. B. Have a meeting with management to find out what to do. C. Ask the seller for supporting information. D. Deny any wrongdoing.
Answer C Explanation This is a professional and social responsibility/procurement/cost question. The situation described involves a claim. The best thing to do would be to get supporting information to find out what happened and take corrective action for the future. After choice C and negotiation, choice A would most likely occur. Choice D is unethical. Choice B is a meeting with YOUR management and should not occur until you have all the information.
The customer requests a change to the project that would increase the project risk. Which of the following should you do before all the others? A. Include the expected monetary value of the risk in the new cost estimate. B. Talk to the customer about the impact of the change. C. Analyze the impacts of the change with the team. D. Change the risk management plan.
Answer C Explanation This is a recurring theme. First, you should evaluate the impact of the change. Next, determine options. Then go to management and the customer.
A project manager has managed four projects for the company and is being considered to join the project management office team. The following is discovered during the evaluation of his performance. The project manager's first project had an ending cost variance of -500, used two critical resources, needed to rework the project charter during project executing and was ranked 14th in priority within the company. The second project finished with a schedule variance of +100, was completed with a vastly compressed schedule, and received a letter of recommendation from the sponsor, but the product of the project was not used. The third project had 23 percent more changes than expected, had an SPI of 0.90, and 25 open items in the issue log when the project was completed. Each of these projects had a cost budget of US $1,000 and 20 to 28 percent more changes than others of its size. The project management office decided not to add this project manager to the team. Which of the following BEST describes why this might have happened? A. The project manager has only managed low-priority projects, and he had to compress the schedule, showing that he does not have the skill to work in the project management office. B. Issue logs should not be used on projects of this size, showing that the project manager does not have the knowledge to work in a project management office. C. The project manager did not effectively involve the stakeholders, showing that he does not have the knowledge to work in the project management office. D. The project manger had two critical resources on his team and still needed to rework the project charter, showing that he does not have the discipline to work in the project management office.
Answer C Explanation This is a very confusing question. Notice all the distracters that mayor may not be relevant? Since most project schedules are compressed by the project manager during project planning, choice A is not a logical reason and so cannot be the best choice. Issue logs can be used on smaller projects, which means choice B is not the best choice. The number of critical (or hard-to-get) resources noted in choice D has no bearing on the need to rework the project charter. Since it does not make logical sense, it cannot be the best choice. Take another look at the second and third projects. In the second project, the product of the project was not used. This implies many things, including the possibilities that either the project manager did not identify the requirements of all the stakeholders or that the business need of the project changed dramatically and the project manager did not notice. This indicates a major flaw in the project manager's abilities. In the third project, there were 25 concerns of the stakeholders that were not addressed before the project was completed. Again, this shows a major lack of project management knowledge. The needs of the stakeholders and not just the sponsor must be taken into account on all projects. This makes choice C the best choice.
A manager and the head of engineering discuss a change to a major work package. After the meeting, the manager contacts you and tells you to complete the paperwork to make the change. This is an example of: A. Management attention to scope management. B. Management planning. C. A project expediter position. D. A change control system.
Answer C Explanation This is an example of a project expediter position because you are not evaluating the change, looking for impacts, etc. You are merely implementing others' requests. In this case, you are acting as the project expediter.
Which of the following is the BEST thing to do to try to complete a project two days earlier? A. Tell senior management that the project's critical path does not allow the project to be finished earlier. B. Tell your boss. C. Meet with the team and look for options for crashing or fast tracking the critical path. D. Work hard and see what the project status is next month.
Answer C Explanation This is another question that asks about problem solving. Only choice C relates to evaluate:' Choices B and D do not try to solve the real problem. Choice A is just an untrue statement.
A large, complex construction project in a foreign country requires coordination to move the required equipment through crowded city streets. To ensure the equipment is transported successfully, your contact in that country informs you that you will have to pay the local police a fee for coordinating traffic. What should you do? A. Do not pay the fee because it is a bribe. B. Eliminate the work. C. Pay the fee. D. Do not pay the fee if it is not part of the project estimate.
Answer C Explanation This is fee for service paid to a government official and is therefore not a bribe.
Assuming that the ends of a range of estimates are +/- 3 sigma from the mean, which of the following range estimates involves the LEAST risk? A. 30 days, plus or minus 5 days B. 22 - 30 days C. Optimistic = 26 days, most likely = 30 days, pessimistic = 33 days D. Mean of 28 days
Answer C Explanation This one drove you crazy didn't it? Reread the question! When you look at the ranges of each choice, you will see that choice A is ten days, choice B is eight days, and choice C is seven days. The range of estimates with the smallest range is the least risky. Therefore, the answer is C. The words +/- 3 sigma are extraneous. Practice reading questions that are wordy and have extraneous data.
Effective project integration usually requires an emphasis on: A. The personal careers of the team members. B. Timely updates to the project management plan. C. Effective communications at key interface points. D. Product control.
Answer C Explanation This question is asking for the most important of the choices. Think about what is involved in integration: project management plan development, project management plan execution, and integrated change control. In order to integrate the project components into a cohesive whole, communication is key when one activity will interface with another, one team member will interface with another, and any other form of interfacing will occur. Choices Band D are parts of the monitoring and controlling process group, while integration includes more than control. Choice A falls under project management plan execution.
You provide a project cost estimate for the project to the project sponsor. He is unhappy with the estimate, because he thinks the price should be lower. He asks you to cut 15 percent off the project estimate. What should you do? A. Start the project and constantly look for cost savings. B. Tell all the team members to cut 15 percent from their estimates. C. Inform the sponsor of the activities to be cut. D. Add additional resources with low hourly rates.
Answer C Explanation This question is full of choices that are not correct project management actions. If you picked the wrong answer, look again at the choices and try to determine what you are missing. Whatever it is, it will show up more than once on the real exam! To answer the question, you must first realize that it is never appropriate for a project manager to just cut estimates across the board (choice B). The project manager should have created an estimate with realistic work package estimates that do not include padding. Then, if costs must be decreased, the project manager can look to cut quality, decrease risk, cut scope, or use cheaper resources (and at the same time closely monitor the impact of changes on the project schedule). One of the worst things a project manager can do is to start a project while knowing that the time or cost for the project is unrealistic. Therefore, choice A cannot be best. Notice that choice D suggests adding resources. That would cost more. Choice C involves evaluating, looking for alternatives, and then going to the sponsor to tell him the impact of the cost cutting.
During a team meeting, a team member asks about the measurements that will be used on the project to judge performance. The team member feels that some of the measures related to activities assigned him are not valid measurements. The project is BEST considered in what part of the project management process? A. Closing B. Monitoring and controlling C. Executing D. Initiating
Answer C Explanation This situation does not describe an actual measurement (a monitoring and controlling activity) but rather a meeting occurring during project executing talking about control issues.
A project manager has just finished the risk response plan for a us $387,000 engineering project. Which of the following should he probably do NEXT? A. Determine the overall risk rating of the project. B. Begin to analyze the risks that show up in the project drawings. C. Add work packages to the project work breakdown structure. D. Hold a project risk reassessment.
Answer C Explanation This situation is occurring during project planning. Planning must be completed before moving on. Determining the risk rating of the project (choice A) is done during the Perform Qualitative Risk Analysis process, and should have already been done. Choice B is work that is done during project executing. Project risk reassessment (choice D) occurs during Monitor and Control Risks, the next step in the risk process after Plan Risk Responses. But the question does not ask what is next in the risk management process, just what is next. Only choice C, as part of iterations, comes after risk in project planning. Do you know the order of planning yet?
Which of the following is CORRECT in regard to the Control Scope process? A. Effective scope definition can lead to a more complete project scope statement. B. The Control Scope process must be done before scope planning. C. The Scope Control process must be integrated with other control processes. D. Controlling the schedule is the most effective way of controlling scope.
Answer C Explanation Though it is a correct statement, choice A cannot be the answer because it does not deal with control. Since scope planning occurs before the Control Scope process, choice B cannot be the answer. Since controlling the schedule is not the best way to control scope, choice D is not the best answer. The control processes do not act in isolation. A change to one will most likely affect the others. Therefore, choice C is the best answer.
Lag means: A. The amount of time an activity can be delayed without delaying the project finish date. B. The amount of time an activity can be delayed without delaying the early start date of its successor. C. Waiting time. D. The product of a forward and backward pass.
Answer C Explanation Total float and free float (choices A and B) are the time an activity can be delayed without impacting the entire project or the next activity. Critical path method (choice D) is a network analysis technique, not waiting time. Choice C is the correct answer.
During which risk management process is a determination to transfer a risk made? A. Identify Risks B. Perform Quantitative Risk Analysis C. Plan Risk Responses D. Monitor and Control Risks
Answer C Explanation Transference is a risk response strategy.
Double declining balance is a form of: A. Decelerated depreciation. B. Straight line depreciation. C. Accelerated depreciation. D. Life cycle costing.
Answer C Explanation We need to know that double declining balance is a form of depreciation. That eliminates choice D. We also know that double declining balance is a form of accelerated depreciation, eliminating choices A and B. Therefore, C is the correct response.
Estimate at completion (EAC) is a periodic evaluation of: A. The cost of work completed. B. The value of work performed. C. The anticipated total cost at project completion. D. What it will cost to finish the job.
Answer C Explanation When you look at earned value, many of the terms have similar definitions. This could get you into trouble. Since the EAC means the estimate at completion, choice C is the best answer. Choice D is the definition of ETC, estimate to complete.
You are the project manager for a new international project, and your project team includes people from four countries. Most of the team members have not worked on similar projects before, but the project has strong support from senior management. What is the BEST thing to do to ensure that cultural differences do not interfere with the project? A. Spend a little more time creating the work breakdown structure and making sure it is complete. B. As the project manager, make sure you choose your words carefully whenever you communicate. C. Ask one person at each team meeting to describe something unique about their culture. D. Carefully encode all of the project manager's communications.
Answer C Explanation You should have noticed that only choices A and C involve more people than just the project manager. Since this is an issue involving everyone, everyone should be involved. Choice A may be a good idea in all cases; however, it does not specifically address cultural issues. Therefore, the answer must be C.
13. You are a new project manager who has never managed a project before. You have been asked to plan a new project. It would be BEST in this situation to rely on ____ during planning in order to improve your chance of success. A, Your intuition and training B. Stakeholder analysis C. Historical information D. Configuration management
Answer C Because you have no experience, you will have to look at the experience of others. This information is captured in the historical records from previous projects.
25. You are a project manager who was just assigned to take over a project from another project manager who is leaving the company. The previous project manager tells you that the project is on schedule, but only because he has constantly pushed the team to perform. What is the FIRST thing you should do as the new project manager? A. Check risk status B. Check cost performance C. Determine a management strategy D. Tell the team your objectives
Answer C Before you can do anything else, you have to know what YOU are going to do. Developing the management strategy will provide the framework for all the rest of the choices presented and the other activities that need to be done.
21. You are in the middle of executing a major modification to an existing product when you learn that the resources promised at the beginning of the project are not available. The BEST thing to do is to: A. Show how the resources were originally promised to your project B. Replan the project without the resources C. Explain the impact if the promised resources are not made available D. Crash the project
Answer C Choices B and D are essentially delaying the situation. Instead, the project manager should try to prevent the situation by showing the consequences if the resources are not available (choice C). This is a more effective strategy than saying "but you gave them to me," as in choice A.
28. The client demands changes to the product specification that will add only two weeks to the critical path. Which of the following is the BEST thing for the project manager to do? A. Compress the schedule to recover the two weeks B. Cut scope to recover the two weeks C. Consult with the sponsor about options D. Advise the client of the impact of the change
Answer C Do you remember what to do when there is a change? Evaluate first. You wouldn't take action before getting approval, so compressing the schedule (choice A) and cutting scope (choice B) would happen after choices C and/or D. You would not go to the customer before going to YOUR internal management, so choice D is not the correct thing to do next. The next step is to discuss options with the sponsor (choice C).
27. It is the middle of the project when the project manager is informed by her scheduler that the project control limits are secure. That same morning she receives a note from a team member about a problem he is having. The note says, "This activity is driving me crazy and the manager of the accounting department won't help me until the activity's float is in jeopardy." In addition, the project manager has e-mails from a minor stakeholder and 14 e-mails from team members. While she is reading the e-mails, a team member walks into the project manager's office to tell her a corrective action was implemented by a team member from the project management office, but was not documented. What should the project manager do NEXT? A. Report the documentation violation to the project management ofice, evaluate the security of the control limits, and review the e-mailing rules in the communications management plan B. Clarify the reasoning behind documentation being a problem, get the accounting department to assist the team member, and respond to the minor stakeholder C. Add the implemented corrective action to the historical records, discuss the value of documentation at the next team meeting, and smooth the team member with the accounting department problem D. Find out who caused the problem with the accounting department, respond to the minor stakeholder before responding to the other e-mails, and review the process listed in the communications management plan for reporting concerns with the team member having the documentation problem
Answer C Notice how many situations are thrown at you in this question. It is important to practice reading through questions to discover what is important and what is just background information. In this question, the only thing relevant was the corrective action taken. Once you discover what the issue is, look at the choices to find out which is best for addressing the issue. What is the issue here? Did you realize that the team member's note is about a non-critical path activity? ("Until the project float is in jeopardy" means that there is float and, thus, it is not on the critical path.) So is the issue the non-critical path activity or the documentation? You might disagree with the logic, but in this case, the answer is the documentation. In the real world, problems often repeat. Without a record of what was done, there is no opportunity to consider the same solution for future problems. Documentation is critical to projects. Because documentation becomes part of the historical records database, choice C is correct.
34. Project A has an internal rate of return (IRR) of 21 percent. Project B has an IRR of 7 percent. Project C has an IRR of 31 percent. Project D has an IRR of 19 percent. Which of these would be the BEST project? A. Project A B. Project B C. Project C D. Project D
Answer C Remember, the internal rate of return is similar to the interest rate you get from the bank. The higher the rate is, the better the return.
38. A project manager is trying to convince management to use more formal project management procedures and has decided to start improving the company's project management by obtaining a project charter. Wich of the following BEST describes why the project charter would help the project manager? A. It describes the details of what needs to be done B. It lists the names of all team members C. It gives the project manager authority D. It describes the project's history
Answer C The exam will ask questions like this to make sure you know the benefits you should be getting out of the process and tools of project management. The details of what needs to be done (choice A) are found in the WBS dictionary. The names of team members (choice B) are included in the responsibility assignment matrix and other documents. Project history (choice D) is found in the lessons learned and other project documents.
14. Which of the following BEST describes a project management plan? A. A printout from project management software B. A bar chart C. Risk, staffing, process improvement, and other management plans D. The project scope
Answer C The project management plan contains more than just a bar or Gantt chart and the project manager's plan for completing the work. It includes all the management plans for the project.
2. The need for ___ is one of the major driving forces for communication in a project. A. Optimization B. Integrity C. Integration D. Differentiation
Answer C The project manager is an integrator. This is a question about your role as an integrator and communicator.
8. A project is plagued by changes to the project charter. Who has the primary responsibility to decide if these changes are necessary? A. The project manager B. The project team C. The sponsor D. The stakeholders
Answer C The sponsor issues the project charter and so he or she should help the project manager control changes to the charter. The primary responsibility lies with the sponsor.
5. A project manager has managed four projects for the company and is being considered to join the project management office team. The following is discovered during the evaluation of his performance. The project manager's first project had an ending cost variance of -500, used two critical resources, needed to rework the project charter during project executing and was ranked 14th in priority within the company. The second project finished with a schedule variance of +100. was completed with a vastly compressed schedule, and received a letter of recommendation from the sponsor, but the product of the project was not used. The third project had 23 percent more changes than expected, had an SPI of 0.90, and 25 open items in the issue log when the project was completed. Each of these projects had a cost of $1,000 and 20 to 28 percent more changes than others of its size. The project management office decided to not add this project manager to the team. Which of the following BEST describes why this might have happened? A. The project manager has only managed low-priority projects, and he had to compress the schedule, showing that he does not have the skill to work in the project management office B. Issue logs should not be used on projects of this size, showing that the project manager does not have the knowledge to work in the project management office C. The project manager did not effectively involve the stakeholders, showing that he does not have the knowledge to work in the project management office D. The project manager had two critical resources on his team and still needed to rework the project charter, showing that he does not have the discipline to work in the project management office
Answer C This is a very confusing question. Notice all the distracters that may or may not be relevant? Since most project schedules are compressed by the project manager during project planning, choice A is not a logical reason and so cannot be the best choice. Issue logs can be used on smaller projects, which means choice B is not the best choice. The number of critical (or hard- to-get) resources noted in choice D has no bearing on the need to rework the project charter. Since it does not make logical sense, it cannot be the best choice. Take another look at the second and third projects. In the second project, the product of the project was not used. This implies many things, induding the possibilities that either the project manager did not identify the requirements of all the stakeholders or that the business need of the project changed dramatically and the project manager did not notice. This indicates a major flaw in the project manager's abilities. In the third project, there were 25 concerns of the stakeholders that were not addressed before the project was completed. Again, this shows a major lack of project management knowledge. The needs of the stakeholders and not just the sponsor must be taken into account on all projects. This makes choice C the best choice.
1. Effective project integration usually requires an emphasis on: A. The personal careers of the team members B. Timely updates to the project management plan C. Effective communications at key interface points D. Product control
Answer C This question is asking for the most important of the choices. Think about what is involved in integration: project management plan development, project management plan execution, and integrated change control. In order to integrate the project components into a cohesive whole, communication is key when one activity will interface with another, one team member will interface with another, and any other form of interfacing will occur. Choices B and D are parts of the monitoring and controlling process group, while integration indudes more than control. Choice A falls under project management plan execution.
12. Double declining balance is a form of: A. Decelerated depreciation B. Straight line depreciation C. Accelerated depreciation D. Life cycle costing
Answer C We need to know that double declining balance is a form of depreciation. That eliminates choice D. We also know that double declining balance is a form of accelerated depreciation, eliminating choices A and B. Therefore, C is the correct response.
22. Lessons learned are BEST completed by: A. The project manager B. The team C. The sponsor D. The stakeholders
Answer D The best answer is stakeholders, as their input is critical for collecting all the lessons learned on each project. The term "stakeholders" includes all the other groups.
3. In a projectized organization, the project team: A. Reports to many bosses B. Has no loyalty to the project C. Reports to the functional manager D. Will not always have a "home"
Answer D The main drawback of the projectized organization is that at the end of the project, the team is dispersed but they do not have a functional department ("home") to which to return.
Which of the following is NOT needed in order to come up with a project estimate? A. A WBS B. A network diagram C. Risks D. A change control system
Answer D Explanation A change control system is not required to obtain estimates, but without the other three choices, you cannot develop the estimates. You need the WBS to define the activities, the network diagram to see the dependencies, and the risks to determine contingencies. NOTE: These are high-level risks, not the detailed risks we identify later in the planning process group.
All of the following are parts of an effective change management plan EXCEPT: A. Procedures B. Standards for reports C. Meetings D. Lessons learned
Answer D Explanation A change management plan includes the processes and procedures that allow smooth evaluation and tracking of changes. Lessons learned (choice D) are reviews of the processes and procedures to improve them; they are not part of the system.
All of the following are common results of risk management EXCEPT: A. Contract terms and conditions are created. B. The project management plan is changed. C. The communications management plan is changed. D. The project charter is changed.
Answer D Explanation A change to the project charter is not always necessary. In fact, a change to the charter is a fundamental change to the project and may require a major adjustment to all aspects of the project management plan. There are many reasons the other choices could happen as a result of risk. Since a contract can only be created after risks are known (a contract is a tool to transfer risks), it is common sense that choice A cannot be the exception. The project management plan (choice B) could change to include a modified WBS and new work packages related to mitigating risk. The communications management plan (choice C) could change as a way to address a risk. Choice D is the best answer.
A heuristic is BEST described as a: A. Control tool. B. Scheduling method. C. Planning tool. D. Rule of thumb.
Answer D Explanation A heuristic is a rule of thumb. Examples are cost per line of code, cost per square foot of floor space, etc.
All of the following are parts of Direct and Manage Project Execution EXCEPT: A. Identifying changes. B. Using a work breakdown structure. C. Implementing corrective actions. D. Setting up a project control system.
Answer D Explanation A project control system (choice D) is set up during the planning process group, not during project executing. Did choice B confuse you? A WBS is created in project planning, but can be used to help manage the project during project executing. The wording here was not creating the WBS but using the WBS:'
A project manager is appointed to head a highly technical project in an area with which this person has limited familiarity. The project manager delegates the processes of Develop Schedule, Estimate Costs, Define Activities, and Estimate Activity Resources to various project team members, and basically serves as an occasional referee and coordinator of activities. The results of this approach are likely to be: A. A team functioning throughout the project at a very high level, demonstrating creativity and commitment. B. A team that initially experiences some amounts of confusion, but that after a period of time becomes a cohesive and effective unit. C. A team that is not highly productive, but that stays together because of the work environment created by the project manager. D. A team that is characterized by poor performance, low morale, high levels of conflict, and high turnover.
Answer D Explanation A project manager must manage a project. If all activities are delegated, chaos ensues and team members will spend more time jockeying for position than completing activities.
Workarounds are determined during which risk management process? A. Identify Risks B. Perform Quantitative Risk Analysis C. Plan Risk Responses D. Monitor and Control Risks
Answer D Explanation A workaround refers to determining how to handle a risk that occurs but is not included in the risk register. The project must be in the Monitor and Control Risks process if risks have occurred.
A large, one-year telecommunications project is about halfway done when you take the place of the previous project manager. The project involves three different sellers and a project team of 30 people. You would like to see the project's communications requirements and what technology is being used to aid in project communications. Where will you find this information? A. The project management plan B. The information distribution plan C. The bar chart D. The communications management plan
Answer D Explanation Although the information is found as a sub-plan to the project management plan (choice A), the communications management plan (choice D) is the best answer because it directly answers the question.
When checking the calendar of a team member to schedule a meeting, you see she has scheduled a meeting with a key stakeholder that you were not informed of. The BEST approach would be to: A. Avoid mentioning it to the team member but continue to watch her activities. B. Notify your boss about the problem. C. Address the concern with the team member's boss. D. Address the concern with the team member.
Answer D Explanation Always look for the choice that deals with and solves the problem. Choice A is withdrawal. Choices Band C would not be appropriate until you learn the root cause of the problem.
A project manager is taking over a project from another project manager during the planning process group. If the new project manager wants to see what the previous project manager planned for managing changes to the schedule, it would be BEST to look at the: A. Communications management plan. B. Update management plan. C. Staffing management plan D. Schedule management plan.
Answer D Explanation Answer D is the most correct answer. The schedule management plan is the repository for plans for schedule changes. Note that choice B is a made-up term.
Your company just won a major new project. It will begin in three months and is valued at US $2,000,000. You are the project manager for an existing project. What is the FIRST thing you should do once you hear of the new project? A. Ask management how the new project will use resources. B. Resource level your project. C. Crash your project. D. Ask management how the new project will affect your project.
Answer D Explanation As you work on a project, you need to constantly reevaluate the project objectives and how the project relates to other concurrent projects. Is your project still in line with corporate objectives? If the other project will impact yours, you need to be proactive and work on options now.
All of the following would occur during the Close Project or Phase process EXCEPT: A. Creating lessons learned. B. Formal acceptance. C. Reducing resource spending. D. Performing benefit cost analysis.
Answer D Explanation Benefit cost analysis (choice D) is done earlier in the project to help select between alternatives. All the other choices are done during closing. Therefore choice D must be the best answer.
Your employee is three days late with a report. She walks into a meeting where the report is to be discussed and hands you a copy five minutes before the topic is to be discussed. You notice some serious errors in the report. How could this have been prevented? A. Require periodic updates from the employee. B. Coach and mentor the employee. C. Make sure the employee was competent to do the work. D. Cancel the meeting earlier because you did not have a chance to review the report.
Answer D Explanation Both choices A and D could have prevented the outcome, but D is the only one that would ensure you were not sitting in a meeting with a document that had not been reviewed.
While testing the strength of concrete poured on your project, you discover that over 35 percent of the concrete does not meet your company's quality standards. You feel certain the concrete will function as it is, and you don't think the concrete needs to meet the quality level specified. What should you do? A. Change the quality standards to meet the level achieved. B. List in your reports that the concrete simply meets our quality needs:' C. Ensure the remaining concrete meets the standard. D. Report the lesser quality level and try to find a solution.
Answer D Explanation Can you explain why choices A and B are unethical? Choice C simply withdraws from the problem and is therefore not the best solution. The only possible choice is D. That choice would involve quality and other experts to find a resolution.
You are a project manager for the construction of a major new manufacturing plant that has never been done before. The project cost is estimated at US $30,000,000 and will make use of three sellers. Once begun, the project cannot be cancelled, as there will be a large expenditure on plant and equipment. As the project manager, it would be MOST important to carefully: A. Review all cost proposals from the sellers. B. Examine the budget reserves. C. Complete the project charter. D. Perform an identification of risks.
Answer D Explanation Choice A could be done, but it is not a pressing issue based on the situation provided. Choice B could also be done, but not until risk planning is completed. It is always important to carefully complete a project charter, choice C, but there are other issues needing detailed attention in this situation, so choice C cannot be best. Since this project has never been done before, and there will be a large cost outlay, it would be best for the project manager to spend more time on risk management. Risk identification is the most proactive response and would have the greatest positive impact on the project.
The cost contingency reserve should be: A. Hidden to prevent management from disallowing the reserve. B. Added to each activity to provide the customer with a shorter critical path. C. Maintained by management to cover cost overruns. D. Added to the base costs of the project to account for risks.
Answer D Explanation Choice A is an inappropriate action. Choice B is an incorrect statement. Choice C describes management reserves. During the risk management process, you determine appropriate cost contingency reserves for risk events. The sum of these reserves should be added to the total project estimate to cover the cost of risk events happening.
The performing organization is trying to decide whether to split the contracts department and assign procurement responsibilities to departments directly responsible for the projects. A procurement professional might not want this split to occur because they would lose __________ in a decentralized contracting environment. A. Standardized company project management practices B. Loyalty to the project C. Experience D. Access to others with similar expertise
Answer D Explanation Choice A is incorrect, as the change would not impact the entire project management process, only procurement. Loyalty to the project (choice B) would be gained, not lost, in a decentralized environment. In a decentralized procurement situation, there is less focus on maintaining the skill or expertise of the contracting function, making choice D the best answer.
The project status meeting is not going well. Everyone is talking at the same time, there are people who are not participating, and many topics are being discussed at random. Which of the following rules for effective meetings is NOT being adhered to? A. Demonstrate courtesy and consideration of each other, and control who is allowed to speak. B. Schedule meetings in advance. C. Have a purpose for the meeting with the right people in attendance. D. Create and publish an agenda and a set of rules for controlling the meeting.
Answer D Explanation Choice A is not a rule for effective meetings. Since there is no indication that the meeting was not scheduled in advance (choice B) or that there isn't a purpose (choice C), these cannot be the best answers. Discussed at random implies no agenda (choice D). If an agenda is issued beforehand, people will follow the outline and should not need random discussions.
All of the following are characteristics of a project EXCEPT: A. Temporary. B. Definite beginning and end. C. Interrelated activities. D. Repeats itself every month.
Answer D Explanation Choice D implies that the whole project repeats every month. Generally, the only things that might repeat in a project are some activities. The whole project does not repeat.
A project manager is trying to settle a dispute between two team members. One says the systems should be integrated before testing, and the other maintains each system should be tested before integration. The project involves over 30 people, and 12 systems need to be integrated. The sponsor is demanding that integration happens on time. What is the BEST statement the project manager can make to resolve the conflict? A. Do it my way. B. Let's calm down and get the job done. C. Let's deal with this again next week after we all calm down. D. Let's do limited testing before integration and finish testing after integration.
Answer D Explanation Choice D is an example of compromising.
A major negotiation with a potential subcontractor is scheduled for tomorrow when you discover there is a good chance the project will be cancelled. What should you do? A. Do not spend too much time preparing for the negotiations. B. Cut the negotiations short. C. Only negotiate major items. D. Postpone the negotiations.
Answer D Explanation Choice D is more ethical and demonstrates good faith. Why spend time in negotiations?
Two people are arguing about what needs to be done to complete a work package. If the project manager wants to know what is going on, she should pay MOST attention to: A. What is being said and when. B. What is being said, who is saying it, and the time of day. C. Physical mannerisms and what is being said. D. The pitch and tone of the voices, and physical mannerisms.
Answer D Explanation Choices C and D both include nonverbal communication, which represents 55 percent of communication. Choice D adds paralingual communication (pitch and tone) and is thus the best choice.
Senior management is complaining that they are not able to easily determine the status of ongoing projects in the organization. Which of the following types of reports would help provide summary information to senior management? A. Detailed cost estimates B. Project management plans C. Bar charts D. Milestone reports
Answer D Explanation Detailed estimates (choice A) have nothing to do with the situation described. Project management plans (choice B) will have more detail than is necessary for the situation described and may distract from the conversation if used in this situation. Bar charts (choice C) are usually only for the team. The best answer is choice D because milestone reports present the right level of detail for upper management.
A project manager has received activity duration estimates from his team. Which of the following does he need in order to complete the Develop Schedule process? A. Change requests B. Schedule change control system C. Recommended corrective actions D. Reserves
Answer D Explanation Develop Schedule includes all work and uses all inputs needed to come up with a finalized, realistic schedule. One would need time reserves (choice D) in order to complete a schedule. All of the other items are parts of Control Schedule and occur after Develop Schedule.
All technical work is completed on the project. Which of the following remains to be done? A. Verify Scope B. Plan Risk Responses C. Create a staffing management plan D. Complete lessons learned
Answer D Explanation Did you pick choice A? Then you may have forgotten that the Verify Scope process is done during the monitoring and controlling process group, not the closing process group. The other plans (choices Band C) are done earlier in the project. The lessons learned (choice D) can only be completed after the work is completed.
An experienced project manager has just begun working for a large information technology integrator. Her manager provides her with a draft project charter and immediately asks her to provide an analysis of the risks on the project. Which of the following would BEST help in this effort? A. An article from PM Network Magazine B. Her project scope statement from the project planning process C. Her resource plan from the project planning process D. A conversation with a team member from a similar project that failed in the past
Answer D Explanation Did you realize that this situation is taking place during the initiating process group? Choices Band C are created in the project planning process and so are not yet available. Therefore, we are left with deciding if choice A or choice D provides the greater value. Since the information gained in choice D is more specific to your company, it is the best choice.
Which of the following is the BEST thing for a project manager to do in the Conduct Procurements process of procurement management? A. Evaluate risks B. Select a contract type C. Update the project schedule D. Answer sellers' questions about bid documents
Answer D Explanation During the Conduct Procurements process, you normally answer questions submitted by the sellers. The risk analysis processes (choice A) are done before the procurement process begins, as procurement is a risk mitigation and transference tool. Selecting a contract type (choice B) is part of Plan Procurements. Changes to the project schedule (choice C) may be an output of the Administer Procurements process.
What theory proposes that employees' efforts will lead to effective performance and the employees will be rewarded for accomplishments? A. Conditional reinforcement B. Malsow's hierarchy C. McGregor's D. Expectancy
Answer D Explanation Employees who believe that their efforts will lead to effective performance and who expect to be rewarded for their accomplishments will stay productive as rewards meet their expectations. This is expectancy theory.
You are assigned as the project manager in the middle of the project. The project is within the baselines, but the customer is not happy with the performance of the project. What is the FIRST thing you should do? A. Discuss it with the project team. B. Recalculate baselines. C. Renegotiate the contract. D. Meet with the customer.
Answer D Explanation First, you need to find out why the customer is not happy. Then meet with the team and determine options.
During project executing, a team member identifies a risk that is not in the risk register. What should you do? A. Get further information on how the team member identified the risk, because you already performed a detailed analysis and did not identify this risk. B. Disregard the risk, because risks were identified during project planning. C. Inform the customer about the risk. D. Analyze the risk.
Answer D Explanation First, you want to determine what the risk entails and the impact to the project, then determine what actions you will take regarding the risk.
A project manager overhears a conversation between two stakeholders who are talking about how unhappy they are with the impacts of the project on their own departments. Stakeholder A asks if the project is on time, and stakeholder B replies that the SPI is 1.05. Stakeholder A asks if the project manager for the project knows of stakeholder B's concern. Stakeholder B responds that he is not sure. What is the BEST thing for the project manager to do? A. Make sure the stakeholders see that the project manager overheard and then ask them to direct any questions to the project manager in writing. B. Make a presentation to all the stakeholders regarding the status of the project. C. Send both stakeholders a copy of the issue log and ask for additional comments. D. Arrange a meeting with both stakeholders to allow them to voice any concerns they may have.
Answer D Explanation Here again is a question with more than one right answer. Would asking for something in writing be the best way to communicate? In this particular situation, asking for the concern to be in writing might alienate the stakeholders. Therefore, choice A cannot be best. The issue log (choice C) is where the issue should be listed, but the situation does not say if the project manager knows what the stakeholder's concern is. Therefore, C cannot be the best choice. Why not choice B? Notice the use of the words all stakeholders:' Why bother other stakeholders with this problem when the project manager already knows there may be some concern of stakeholders A and B to address, not all stakeholders. Choice B refers to making a presentation. Presentations are formal verbal. This problem would likely require informal verbal communication in order to discover the real problem. Choice D is therefore the best choice.
Which of the following describes the BEST use of historical records from previous projects: A. Estimating, life cycle costing, and project planning B. Risk management, estimating, and creating lessons learned C. Project planning, estimating, and creating a status report D. Estimating, risk management, and project planning
Answer D Explanation Historical records are not generally used for life cycle costing (choice A), lessons learned (choice B), or creating status reports (choice C).
You have just started administrating a contract when management decides to terminate the contract. What should you do FIRST? A. Go back to the Plan Procurements process. B. Go back to the Conduct Procurements process. C. Finish the Administer Procurements process. D. Go to the Close Procurements process.
Answer D Explanation If the contract is terminated, the project needs to enter closure. You need those results for historical purposes.
A project management plan should be realistic in order to be used to manage the project. Which of the following is the BEST method to achieve a realistic project management plan? A. Sponsor creates the project management plan based on input from the project manager. B. Functional manager creates the project management plan based on input from the project manager. C. Project manager creates the project management plan based on input from senior management. D. Project manager creates the project management plan based on input from the team.
Answer D Explanation If we were to rephrase the question, it is asking, Who creates the project management plan? The best answer is that project management plans are created by the project manager but require input from the team.
During the completion of project work, the sponsor asks the project manager to report on how the project is going. In order to prepare the report, the project manager asks all the team members what percent complete their work is. There is one team member who has been hard to manage from the beginning. In response to being asked what percent complete he is, the team member asks, Percent complete of what? Being tired of such comments, the project manager reports to the team member's boss that the team member is not cooperating. Which of the following is MOST likely the real problem? A. The project manager did not get buy-in from the manager for the resources on the project. B. The project manager did not create an adequate reward system for team members to improve their cooperation. C. The project manager should have had a meeting with the team member's boss the first time the team member caused trouble. D. The project manager does not have work packages.
Answer D Explanation Is this a hard question? The whole discussion of the team member and his actions is a distracter. The real problem is not that the team member is being uncooperative. He is asking a question that many team members want to ask in the real world. How can I tell you how things are going if I do not know what work I am being asked to do? The real problem is the lack of a WBS and work packages; otherwise the team member would not have to ask such a question. Choice A cannot be the answer because the project manager is not losing resources (what is implied by getting the manager's buy-in). Though a reward system (choice B) would help with cooperation, the real problem here is not cooperation. Choice C cannot be the answer because it does not solve the problem at hand (the team member not knowing what he is to do). It solves another problem. If you chose C, be very careful! You can get 10 to 20 questions wrong on the exam simply because you do not see the real problem!
The project has been going well, except for the number of changes being made. The project is being installed into seven different departments within the company and will greatly improve departmental performance when operational. There are 14 project management processes selected for use on this project. The project manager is a technical expert as well as having been trained in communications and managing people. Which of the following is the MOST likely cause of the project problems? A. The project manager was not trained in understanding the company environment. B. The project should have more management oversight since it will result in such great benefits to the company. C. The project should have used more of the project management processes. D. Some stakeholders were not identified.
Answer D Explanation It is important here to look for the choice that would solve the real problem. There is no reason to think that training (choice A), management oversight (choice B), or a need for more processes (choice C) are factors contributing to the number of changes. The root cause would be that stakeholders were missed and therefore their requirements were not found. Those stakeholders are now causing changes to accommodate their needs. The best choice is D.
A project is in the middle of the executing processes when a stakeholder suggests a major new change. This change will cause the third major overhaul of the project. At the same time, the project manager discovers that a major work package was not completed because a team member's boss moved him to another project that had a higher priority. Which of the following is the BEST person for the project manger to address these issues with? A. The team B. Senior management C. The customer D. The sponsor
Answer D Explanation It is the sponsor's role to prevent unnecessary changes and to set priorities between projects. The situation described in this question implies that such work is not being done, and the project manager must therefore go to the root of the problem: the sponsor.
The main focus of life cycle costing is to: A. Estimate installation costs. B. Estimate the cost of operations and maintenance. C. Consider installation costs when planning the project costs. D. Consider operations and maintenance costs in making project decisions.
Answer D Explanation Life cycle costing looks at operations and maintenance costs and balances them with the project costs to try to reduce the cost across the entire life of the project.
During what part of the procurement process does procurement negotiation occur? A. Plan Procurements B. Close Procurements C. Administer Procurements D. Conduct Procurements
Answer D Explanation Negotiation occurs during the Conduct Procurements process.
The program was planned years ago, before there was a massive introduction of new technology. While planning the next project in this program, the project manager has expanded the scope management plan because as a project becomes more complex, the level of uncertainty in the scope: A. Remains the same. B. Decreases. C. Decreases then increases. D. Increases.
Answer D Explanation Not all questions will be difficult. The level of uncertainty in scope increases based on the scale of effort required to identify all the scope. For larger projects it is more difficult to catch everything.
You are a project manager for a new product development project that has four levels in the work breakdown structure. A network diagram has been created, the duration estimates have been compressed, and a schedule has been developed. What time management activity should you do NEXT? A. Begin Control Schedule. B. Estimate Activity Resources. C. Analogously estimate the schedule. D. Gain approval.
Answer D Explanation Notice how this question and the previous one seem very similar. This is intended to prepare you for similar questions on the exam. Choices B and C should have already been completed. The situation described is within the Develop Schedule process of time management. Choice A is the next time management process after Develop Schedule, but the Develop Schedule process is not finished. Final approval (choice D) of the schedule by the stakeholders is needed before one has a project schedule.
The project was going well when all of a sudden there were changes to the project coming from multiple stakeholders. After all the changes were determined, the project manager spent time with all the stakeholders to find out why there were changes and to discover any more. The project work has quieted down when a team member casually mentions to the project manager that he added functionality to a product of the project. Do not worry he says, I did not impact time, cost, or quality! What should a project manager do FIRST? A. Ask the team member how the need for the functionality was determined. B. Hold a meeting to review the team member's completed work. C. Look for other added functionality. D. Ask the team member how he knows there is no time, cost, or quality impact.
Answer D Explanation Notice that the first paragraph is extraneous. Also notice that the question states that the change has already been made. Your actions will be different than if the change had not been made. It is the project manager's job to investigate impacts, as the project manager is the only one who can tell how a change impacts the project as a whole. Choices A, B, and C could all be done, but they do not address the immediate concern. Choice D is the best answer since it begins the project manager's analysis of the impacts to the project as a whole by finding out what analysis has already been done. He can then determine how he must finalize the analysis as it applies to the entire project. Can you see that?
A large project is underway when one of the team members reviews the project status report. He sees that the project is currently running late. As he looks at the report further, he notices that the delay will cause one of his activities to be scheduled during a time he will be out of the country and cannot work on the activity. This is of great concern because he is very committed to the project being successful and he does not want to be the cause of the project being further delayed. What is the BEST THING for him to do? A. Contact the project manager immediately to provide the project manager with his schedule. B. Include the information in his next report. C. Request that the issue be added to the project issue log. D. Recommend preventive action.
Answer D Explanation Notice that this question talks about what the team member should do? It is important for the project manager to understand the team member's role and possibly even instruct team members on how to work on projects and what is expected of them. Choices A, B, and C have one thing in common. They involve the team member asking the project manager to do something. In reality, it may very well be the team member who will come up with a solution (such as decreasing the scope of the activity, fast tracking, or specific suggestions about changes to predecessor activities). Therefore, choice D is the best choice. But ask yourself how you run your projects? Which is better, your way or this way? Lastly, please note that recommended corrective or preventive actions can come from the team or stakeholders in addition to the project manager.
Value analysis is performed to get: A. More value from the cost analysis. B. Management to buy into the project. C. The team to buy into the project. D. A less costly way of doing the same work.
Answer D Explanation Notice that you need to know the definition of value analysis to answer this question. Also notice that the other choices could be considered correct by someone who does not know the definition.
Which of the following is NOT an input to the initiating process group? A. Company processes B. Company culture C. Historical WBSs D. Project scope statement
Answer D Explanation Notice the question asks which is NOT an input to the initiating process group. Did you read it correctly? The project scope statement (choice D) is an output of the planning process group. Did you select choice A? Companies should have processes in place for hiring resources, reporting, and managing risks on projects (to name only a few). Does yours?
Your program manager has come to you, the project manager, for help with a bid for her newest project. You want to protect your company from financial risk. You have limited scope definition. What is the BEST type of contract to choose? A. Fixed price (FP) B. Cost plus percent of cost (CPPC) C. Time and material (T&M) D. Cost plus fixed fee (CPFF)
Answer D Explanation Of the options given, the only contract that limits fees for large projects with limited scope definition is cost plus fixed fee.
The customer responsible for overseeing your project asks you to provide a written cost estimate that is 30 percent higher than your estimate of the project's cost. He explains that the budgeting process requires managers to estimate pessimistically to ensure enough money is allocated for projects. What is the BEST way to handle this? A. Add the 30 percent as a lump sum contingency fund to handle project risks. B. Add the 30 percent to your cost estimate by spreading it evenly across all project activities. C. Create one cost baseline for budget allocation and a second one for the actual project management plan. D. Ask for information on risks that would cause your estimate to be too low.
Answer D Explanation Presenting anything besides your original estimate (allocating more to the budget) is inaccurate and calls into question your competence and integrity as a project manager. The customer should list potential changes and risks to your estimate. If the costs and risks are justified, you can increase the budget.
Which of the following conflict resolution techniques will generate the MOST lasting solution? A. Forcing B. Smoothing C. Compromise D. Problem solving
Answer D Explanation Problem solving normally takes more time, but it gets buy-in from everyone, generating a more lasting solution.
A new store development project requires the purchase of various equipment, machinery, and furniture. The department responsible for the development recently centralized its external purchasing process and standardized its new order system. In which document can these new procedures be found? A. Project scope statement B. WBS C. Staffing management plan D. Organizational policies
Answer D Explanation Procedures for the rental and purchase of supplies and equipment are found in the organizational policies, part of organizational process assets.
You are a project manager for one of many projects in a large and important program. At a high-level status meeting, you note that another project manager has reported her project on schedule. Looking back on your project over the last few weeks, you remember many deliverables from the other project that arrived late. What should you do? A. Meet with the program manager. B. Develop a risk control plan. C. Discuss the issue with your boss. D. Meet with the other project manager.
Answer D Explanation Professional and social responsibility dictates that you should confront the situation first with the other project manager (choice D) to find out if the other project is really on schedule and thereby confirm or deny your information. Choice A or C would be the second step if choice D validates your concern. Choice B would be a more likely choice if it referred to an earlier step in risk management. But choice D remains the best answer.
When it comes to changes, the project manager's attention is BEST given to: A. Making changes. B. Tracking and recording changes. C. Informing the sponsor of changes. D. Preventing unnecessary changes.
Answer D Explanation Project managers should be proactive. The only proactive answer here is preventing unnecessary changes.
All of the following are ALWAYS inputs to the risk management process EXCEPT: A. Historical information. B. Lessons learned. C. Work breakdown structure. D. Project status reports.
Answer D Explanation Project status reports (choice D) can be an input to risk management. However, when completing risk management for the first time, you would not have project status reports. Therefore, project status reports are not always an input to risk management.
Monitoring cost expended to date in order to detect variances from the plan occurs during: A. The creation of the cost change management plan. B. Recommending corrective actions . C. Updating the cost baseline. D. Product performance reviews.
Answer D Explanation Recommending corrective actions (choice B) and possible updates to the cost baseline (choice C) result from the activity described; they are not concurrent with it. Monitoring costs are part of change control, but not part of creating the change control system (choice A).
Your company can accept one of three possible projects. Project A has a net present value (NPV) of US $30,000 and will take six years to complete. Project B has an NPV of US $60,000 and will take three years to complete. Project C has an NPV of US $90,000 and will take four years to complete. Based on this information, which project would you pick? A. They all have the same value. B. Project A C. Project B D. Project C
Answer D Explanation Remember, project length is incorporated when computing NPV. You would choose the project that provides the most value, in this case the project with the highest NPV. Scope Management CHAPTER FIVE
The project team is arguing about the prospective sellers who have submitted proposals. One team member argues for a certain seller while another team member wants the project awarded to a different seller. What part of the procurement process is the team in? A. Plan Procurements B. Administer Procurements C. Negotiate Contract D. Conduct Procurements
Answer D Explanation Selected sellers are an output of the Conduct Procurement process.
There have been many work packages completed successfully on the project and the sponsor has made some recommendations for improvements. The project is on schedule to meet an aggressive deadline when the successor activity to a critical path activity suffers a major setback. The activity has 14 days of float and is being completed by four people. There are two other team members with the skill set to assist the troubled activity, if needed. The project manager receives a call that three other team members are attempting to be removed from the project because they do not feel the project can be successful. When the project manager pursues this, she discovers that those team members have issues that have not been addressed. Which of the following is the BEST thing to do to improve the project? A. Have the team members immediately assist the troubled activity. B. Investigate why the project schedule is aggressive. C. See who can replace the three team members. D. Create an issue log.
Answer D Explanation Sometimes complex problems are caused by not doing simple things. The data in the first paragraph, once you read the choices, is completely extraneous. The troubled activity has float and so does not need immediate attention. Choice A may not be necessary if the amount of float will not be exceeded by the problem. None of the choices suggest investigating if the amount of float is enough to cover any delay caused by the trouble, whatever it is. Rather, the choices take you in different directions. Choice B should have already been done before the project began. Choice C cannot be best, as replacing team members does not solve the root cause of the problem. Could there be something that the project manager is doing wrong, or could be doing that she is not, that would solve the problem without losing resources? Wouldn't it be more effective to discover the root cause of those team members' concerns so that the problem does not surface again later? The creation of an issue log will let the troubled team members know that their concerns have been heard, are noted, and will be resolved. This might be enough to stop them from leaving and avoid project delays and confusion if new team members must be added. This makes choice D the best answer. Communications Management CHAPTER TEN
A cost performance index (CPI) of 0.89 means: A. At this time, we expect the total project to cost 89 percent more than planned. B. When the project is completed we will have spent 89 percent more than planned. C. The project is only progressing at 89 percent of the rate planned. D. The project is only getting 89 cents out of every dollar invested.
Answer D Explanation The CPI is less than one, so the situation is bad. Choice D is the best answer.
A project manager is quantifying risk for her project. Several of her experts are offsite, but wish to be included. How can this be done? A. Use Monte Carlo analysis using the Internet as a tool. B. Apply the critical path method. C. Determine options for recommended corrective action. D. Apply the Delphi technique.
Answer D Explanation The Delphi technique is most commonly used to obtain expert opinions on technical issues, the necessary project or product scope, or the risks.
An activity has an early start (ES) of day 3, a late start (LS) of day 13, an early finish (EF) of day 9, and a late finish (LF) of day 19. The activity: A. Is on the critical path. B. Has a lag. C. Is progressing well. D. Is not on the critical path.
Answer D Explanation The activity described has float because there is a difference between the early start and late start. An activity that has float is probably not on the critical path. There is no information presented about lag (choice B) or progress (choice C), so choice D is the best answer.
Which of the following are GENERALLY illustrated BETTER by bar charts than network diagrams? A. Logical relationships B. Critical paths C. Resource trade-offs D. Progress or status
Answer D Explanation The bar chart (or Gantt chart) is designed to show a relationship to time. This is best used when demonstrating progress or status as a factor of time.
Lessons learned are BEST completed by: A. The project manager. B. The team. C. The sponsor. D. The stakeholders.
Answer D Explanation The best answer is stakeholders, as their input is critical for collecting all the lessons learned on each project. The term stakeholders includes all the other groups.
A project manager has a problem with a team member's performance. What is BEST form of communication for addressing this problem? A. Formal written communication B. Formal verbal communication C. Informal written communication D. Informal verbal communication
Answer D Explanation The best choice is D. If informal verbal communication does not solve the problem, choice A is the next best choice. This does not mean that you do not keep records of the problem, but this question is asking about communication between two parties.
A cost management plan contains a description of: A. The project costs. B. How resources are allocated. C. The budgets and how they were calculated. D. The WBS level at which earned value will be calculated.
Answer D Explanation The exam will ask you what the tools of project management contain in order to test whether you really understand them. This question is almost impossible to guess correctly.
In a projectized organization, the project team: A. Reports to many bosses. B. Has no loyalty to the project. C. Reports to the functional manager. D. Will not always have a home
Answer D Explanation The main drawback of the projectized organization is that at the end of the project, the team is dispersed but they do not have a functional department (home) to which to return.
The project manager has just received a change from the customer that does not affect the project schedule and is easy to complete. What should the project manager do FIRST? A. Make the change happen as soon as possible. B. Contact the project sponsor for permission. C. Go to the change control board. D. Evaluate the impacts on other project constraints.
Answer D Explanation The other impacts to the project should be evaluated first. Such impacts include scope, cost, quality, risk, resources, and customer satisfaction. Once these are evaluated, the change control board, if one exists, can approve or deny the change.
The project manager is expecting a deliverable to be submitted by e-mail from a team member today. At the end of the day, the project manager contacts the team member to notify him that it has not been received. The team member apologizes and says that he was not able to e-mail the deliverable, and it was sent through the mail instead. The team member goes on to explain that he notified the project manager that this would occur during a phone conversation they had while the project manager was traveling. Wasn't that the conversation we had when I told you I could not hear you well due to poor cell phone coverage? asks the project manager. Yes, replies the team member. What could have avoided this problem? A. Paralingual communication B. Adding to the issue log after the phone call C. Better attention to determining communications requirements D. Feedback during the communication
Answer D Explanation The pitch and tone of voice (choice A) is not relevant here, as the project manager could not even hear what was being said. There were no issues recognized after the conversation, so none could be added to the issue log (choice B). This issue is not related to communications requirements, so choice C cannot be best. Saying, I am not sure I properly heard what you said during the conversation or asking for the message to be repeated back to the sender would have prevented this problem. This makes choice D the best option.
A project manager has assembled the project team, identified 56 risks on the project, determined what would trigger the risks, rated them on a risk rating matrix, tested their assumptions, and assessed the quality of the data used. The team is continuing to move through the risk management process. What has the project manager forgotten to do? A. Simulation B. Risk mitigation C. Overall risk ranking for the project D. Involvement of other stakeholders
Answer D Explanation The process they have used so far is fine, except the input of other stakeholders is needed in order to identify more risks.
The project sponsor has just signed the project charter. What is the NEXT thing to do? A. Begin to complete work packages. B. Verify Scope. C. Start integrated change control. D. Start to create management plans.
Answer D Explanation The project charter is created during the initiating process group. Therefore the question is asking what is done next in either the initiating process group or the planning process group. For this type of question, you should look for the choice that occurs closest to the process group you are in. Choice A is done during the executing process group. Choices Band C are done during the monitoring and controlling process group. Choice D is the best choice, as it is part of the planning process group.
The project charter is created in which project management process group? A. Executing B. Planning C. Closing D. Initiating
Answer D Explanation The project charter is needed before planning and execution of the work can begin.
You are finalizing the monthly project status report due now to your manager when you discover that several project team members are not reporting actual hours spent on project activities. This results in skewed project statistics. What is the MOST appropriate action to be taken? A. Discuss the impacts of these actions with team members. B. Report the team members' actions to their functional managers. C. Continue reporting information as presented to you. D. Provide accurate and truthful representations in all project reports.
Answer D Explanation The project manager's responsibility is to provide truthful project information. The project manager should thereafter discuss the impacts of his or her actions with the team members. If that does not work, the next step is to report it to the functional managers.
A new product development project has four levels in the work breakdown structure and has been sequenced using the precedence diagramming method. The activity duration estimates have been received. What should be done NEXT? A. Create an activity list. B. Begin the work breakdown structure. C. Finalize the schedule. D. Compress the schedule.
Answer D Explanation The question is really asking, What is done after Estimate Activity Durations? Choices A and B are done before Estimate Activity Durations. Duration compression (choice D) occurs before finalizing the schedule (choice C) and is, therefore, the best answer.
A seller is working on a cost reimbursable (CR) contract when the buyer decides he would like to expand the scope of services and change to a fixed price (FP) contract. All of the following are the seller's options EXCEPT: A. Completing the original work on a cost reimbursable basis and then negotiating a fixed price for the additional work. B. Completing the original work and rejecting the additional work. C. Negotiating a fixed price contract that includes all the work. D. Starting over with a new contract.
Answer D Explanation The seller does not have the choice to start over. The contract that exists is binding. Both parties could agree to start over, but this is a drastic step.
The work breakdown structure can BEST be thought of as an effective aid for communications. A. Team B. Project manager C. Customer D. Stakeholder
Answer D Explanation The term stakeholder encompasses all the other choices. In this case, it is the best answer since the WBS can be used (but does not need to be used) as a communications tool for all stakeholders to see what is included in the project.
The work breakdown structure can be an effective aid for communication in which situation(s)? A. Internal within the project team B. Internal within the organization C. External with the customer D. Internal and external to the project
Answer D Explanation The work breakdown structure allows communication vertically and horizontally within the organization as well as outside the project.
A rough order of magnitude estimate is made during which project management process group? A. Planning B. Closing C. Executing D. Initiating
Answer D Explanation This estimate has a wide range. It is done during project initiating, when very little is known about the project.
Based on the following, if you needed to shorten the duration of the project, what activity would you try to shorten? Activity / Preceding Activity / Duration In Weeks Start ....... None ........ 0 A ............. Start ........ 1 B ............. Start ......... 2 C ............. Start ......... 6 D ............. A ............. 10 E ............. B,C ........... 1 F ............. C .............. 2 G ............ D .............. 3 H ............ E .............. 9 I ............. F .............. 1 End ........ G,H,I ......... 0 A. Activity B B. Activity D C. Activity H D. Activity C
Answer D Explanation This is one of the two-stage questions you will find on the exam. First you need to draw the network diagram and find the critical path, and then make a decision. The network diagram would be: Paths Duration in Weeks Start, A, D, G, End 14 Start, B, E, H, End 12 Start, C, E, H, End 16 Start, C, F, I, End 9 Many people immediately look for the longest duration activity on the project to cut. Here activity D is the longest, at 10 weeks. However, that activity is not on the critical path, and cutting it would not shorten the project's duration. You must change the critical path. In this case, both activity C and activity H are on the critical path. If you have a choice, all things being equal, choose the earlier option. Therefore, activity C (choice D) is the best answer.
The float of an activity is determined by: A. Performing a Monte Carlo analysis. B. Determining the waiting time between activities. C. Determining lag. D. Determining the amount of time the activity can be delayed before it delays the critical path.
Answer D Explanation This question does not specify what type of float. Total float is the amount of time an activity can be delayed without impacting the end date of the project. Free float is the amount of time an activity can be delayed without impacting the early start of the next activity. The only choice matching either of these definitions is choice D.
One common way to compute estimate at completion (EAC) is to take the budget at completion (BAC) and: A. Divide by SPI. B. Multiply by SPI. C. Multiply by CPI. D. Divide by CPI.
Answer D Explanation This question is asking for the formula for EAC, which is BAC/CPI. Notice how you will have to remember the formula to get the answer correct.
The highest point of Maslow's hierarchy of needs is called: A. Physiological satisfaction. B. Attainment of survival C. Need for association. D. Esteem.
Answer D Explanation This question is asking which of the FOLLOWING is the highest. Self-actualization is not listed, so the next best choice is esteem.
A project manager is in the middle of the executing process of a very large construction project when he discovers that the time needed to complete the project is longer than the time available. What is the BEST thing to do? A. Cut product scope. B. Meet with management and tell them that the required date cannot be met. C. Work overtime. D. Determine options for schedule compression and present management with his recommended option.
Answer D Explanation This question tests whether you know how to solve problems, especially if you are one of those project managers who has not realized that an unrealistic schedule is something you should deal with before beginning work. Since cutting product scope affects the customer, choice A has a great negative effect and is therefore not best. A project manager's job is to determine options for meeting any end date or time, therefore choice B cannot be correct. Working overtime (choice C) is expensive and unnecessary when there are so many other choices that could be selected first. Choice D could have the least negative effect on the project.
If a project manager wants to report on the actual project results vs. planned results, she should use a: A. Trend report. B. Forecasting report. C. Status report. D. Variance report.
Answer D Explanation This situation describes the need to "compare." A trend report (choice A) shows performance over time. A forecasting report (choice B) looks only to the future. A status report (choice C) is generally static (relating to a moment in time). The only choice that compares project results is a variance analysis (choice D).
A project has several teams. Team C has repeatedly missed deadlines in the past. This has caused team D to have to crash the critical path several times. As the team leader for team D, you should meet with the: A. Manager of team D. B. Project manager alone. C. Project manager and management. D. Project manager and the leader of team C.
Answer D Explanation Those having the problem should resolve the problem. Having had to crash the critical path several times implies that team D has already dealt with these problems. In this case, the two team leaders need to meet. The extent of this situation requires the project manager's involvement as well.
A manufacturing project has a schedule performance index (SPI) of 0.89 and a cost performance index (CPI) of 0.91. Generally, what is the BEST explanation for why this occurred? A. The scope was changed. B. A supplier went out of business and a new one needed to be found. C. Additional equipment needed to be purchased. D. A critical path activity took longer and needed more labor hours to complete.
Answer D Explanation To answer this question, you must look for a choice that would take longer and cost more. If you picked choice A, reread it. It says scope was changed, not necessarily added to. If the change was to reduce the scope, it might also have reduced cost. Though it would take time to handle the event described in choice B, the impacted activity might not be on the critical path and thus might not affect time. Choice C would definitely add cost, but not necessarily time. Only choice D would negatively affect both time and cost.
Communications are often enhanced when the sender the receiver. A. Speaks up to B. Uses more physical movements when talking to C. Talks slowly to D. Shows concern for the perspective of
Answer D Explanation Understanding the receiver's perspective allows you to direct the communication to meet his needs.
All of the following are forms of power derived from the project manager's position EXCEPT: A. Formal. B. Reward. C. Penalty. D. Expert.
Answer D Explanation When someone is given the job of project manager, they will have formal, reward, and penalty power. But just having the position does not make the project manager either a technical or project management expert.
A new project manager is about to begin creating the procurement statement of work. One stakeholder wants to add many items to the procurement statement of work. Another stakeholder only wants to describe the functional requirements. The project is important for the project manager's company, but a seller will do the work. How would you advise the project manager? A. The procurement statement of work should be general to allow the seller to make his own decisions. B. The procurement statement of work should be general to allow clarification later. C. The procurement statement of work should be detailed to allow clarification later. D. The procurement statement of work should be as detailed as necessary for the type of project.
Answer D Explanation When the seller has more expertise than the buyer, the procurement statement of work should describe performance or function rather than a complete list of work. In any case, the procurement statement of work should be as detailed as possible. Professional and Social Responsibility CHAPTER THIRTEEN
The requirements of many stakeholders were not approved for inclusion in your project. Therefore, you had a difficult time receiving formal approval of the project management plan for this project. The stakeholders argued and held up the project while they held meeting after meeting about their requirements. The project was finally approved and work began six months ago. All of the following would be good preventive actions to implement EXCEPT: A. Keep a file of what requirements were not included in the project. B. Make sure the change control process is not used as a vehicle to add back the requirements into the project. C. Maintain an issue log. D. Hold meetings with the stakeholders to go over the work that will not be added to the project.
Answer D Explanation Why would choice D be the action not to take? Isn't it similar to choice A? Yes and no. This issue should be over, but since there were so many meetings and arguments about the requirements being removed, it is unlikely that the issue will be dropped by the stakeholders. However, since it has not come up again, and the project was started six months ago, spending time in a meeting is excessive. The other choices are easier and have less impact on the project and are therefore things that could be done.
A project manager has just been assigned a team that comes from many countries, including Brazil, Japan, the US, and Britain. What is her BEST tool for success? A. The responsibility assignment matrix (RAM) B. The teleconference C. Team communication with the WBS D. Communication and well-developed people skills
Answer D Explanation Working with people from different cultures, with different cultural values and beliefs, necessitates an understanding of both basic definitions and the areas of cultural impact. As project managers, we need to have good communication skills and a willingness to adapt to other cultures.
You are taking over a project and determine the following: Activity B has an early finish (EF) of day 3, a late finish (LF) of day 6, and an early start (ES) of day 2. Activity L is being done by a hard-to-get resource. The cost performance index (CPI) is 1.1, and the schedule performance index (SPI) is 0.8. Based on this information, what would you be more concerned about? A. Float B. Resources C. Cost D. Schedule
Answer D Explanation You may not understand this question until you review the rest of the book. Come back to it. This question tries to integrate a lot of information and test your ability to discern what information is relevant to the question. Though some figures to calculate float are provided (choice A), there is no information to say that the float is a problem. Most projects have hard-to-get resources (choice B). The question does not give an indication that having hard-to-get resources is a problem. CPI (choice C) is greater than one, so cost is not something to worry about. SPI is less than one, so choice D is the best answer.
As part of the records management system, you are trying to make sure that all records from the procurement are documented and indexed. Which of the following do you NOT have to worry about? A. Proposal B. Procurement statement of work C. Terms and conditions D. Negotiation process
Answer D Explanation You will see long, wordy questions consisting of many paragraphs on the exam, but do not let them worry you. Sometimes the briefer questions are harder. To answer this question, you need to know what a records management system is and that it would not be used to keep track of negotiations. the negotiation process is not a document.
6. All of the following are parts of an effective change management plan EXCEPT: A. Procedures B. Standards for reports C. Meetings D. Lessons learned
Answer D A change management plan indudes the processes and procedures that allow smooth evaluation and tracking of changes. Lessons learned (choice D) are reviews of the processes and procedures to improve them; they are not part of the system.
19. All of the following are parts of Direct and Manage Project Execution EXCEPT: A. Identifying changes B. Using a work breakdown structure C. Implementing corrective actions D. Setting up a project control system
Answer D A project control system (choice D) is set up during the planning process group, not during project executing. Did choice B confuse you? A WBS is created in project planning, but can be used to help manage the project du ring project executing. The wording here was not "creating the WBS" but "using the WBS".
20. A project manager is appointed to head a highly technical project in an area with which this person has limited familiarity. The project manager delegates the processes of Develop schedule, Estimate Costs, Define Activities, and Estimate Activity Resources to various project team members, and basically serves as an occasional referee and coordinator of activities. The results of this approach are likely to be: A. A team functioning throughout the project at a very high level, demonstrating creativity and commitment B. A team that initially experiences some amounts of confusion, but that after a period of time becomes a cohesive and effective unit C. A team that is not highly productive, but that stays together because of the work environment created by the project manager D. A team that is characterized by poor performance, low morale, high levels of conflict and high turnover
Answer D A project manager must manage a project. If all activities are delegated, chaos ensues and team members will spend more time jockeying for position than completing activities.
24. Your company just won a major new project. It will begin in three months and is valued at $2,000,000. You are the project manager for an existing project. What is the FIRST thing you should do once you hear of the new project? A. Ask management how the new project will use resources B. Resource level your project C. Crash Your project D. Ask management how the new project will affect your project
Answer D As you work on a project, you need to constantly reevaluate the project objectives and how the project relates to other concurrent projects. Is your project still in line with corporate objectives? If the other project will impact yours, you need to be proactive and work on options now.
36. All of the following would occur during the Close Project or phase process EXCEPT: A. Creating lessons learned B. Formal acceptance C. Reducing resource spending D. Performing benefit cost analysis
Answer D Benefit cost analysis (choice D) is done earlier in the project to help select between alternatives. All the other choices are done during closing. Therefore, choice D must be the best answer.
42. All technical work is completed on the project. Which of the following remains to be done? A. Verify Scope B. Plan Risk Responses C. Create a staffing management plan D. Complete lessons learned
Answer D Did you pick choice A? Then you may have forgotten that the Verify Scope process is done during the monitoring and controlling process group, not the closing process group. The other plans (choices Band C) are done earlier in the project. The lessons learned (choice D) can only be completed after the work is completed.
26. You are assigned as the project manager in the middle of the project. The project is within the baselines, but the customer is not happy with the performance of the project. What is the FIRST thing you should do? A. Discuss it with the project team B. Recalculate baselines C. Renegotiate the contract D. Meet with the customer
Answer D First, you need to find out why the customer is not happy. Then meet with the team and determine options.
3. Which of the following describes the BEST use of historical records from previous projects: A. Estimating, life cycle costing, and project planning B. Risk management, estimating, and creating lessons learned C. Project planning, estimating, and creating a status report D. Estimating, risk management, and project planning
Answer D Historical records are not generally used for life cycle costing (choice A), lessons learned (choice B), or creating status reports (choice C).
16. A project management plan should be realistic in order to be used to manage the project. Which of the following is the BEST method to achieve a realistic project management plan? A. Sponsor creates the project management plan based on input from the project manager B. Functional manager creates the project management plan based on input from the project manager C. Project manager creates the project management plan based on input from senior management D. Project manager creates the project management plan based on input from the team
Answer D If we were to rephrase the question, it is asking, "Who creates the project management plan?" The best answer is that project management plans are created by the project manager but require input from the team.
30. The project was going well when all of a sudden there were changes to the project coming from multiple stakeholders. After all the changes were determined, the project manager spent time with all the stakeholders to find out why there were changes and to discover any more. The project work has quieted down when a team member casually mentions to the project manager that he added functionality to a product of the project. "Do not worry," he says, "I did not impact time, cost, or quality!" What should a project manager do FIRST? A. Ask the team member how the need for the functionality was determined B. Hold a meeting to review the team member's completed work C. Look for other added functionality D. Ask the team member how he knows there is no time, cost, or quality impact
Answer D Notice that the first paragraph is extraneous. Also notice that the question states that the change has already been made. Your actions will be different than if the change had not been made. It is the project managers job to investigate impacts, as the project manager is the only one who can tell how a change impacts the project as a whole. Choices A, B, and C could all be done, but they do not address the immediate concern. Choice D is the best answer since it begins the project managers analysis of the impacts to the project as a whole by finding out what analysis has already been done. He can then determine how he must finalize the analysis as it applies to the entire project. Can you see that?
43. Your company can accept one of the three posible projects. Project A has a net present value (NPV) of $30,000 and will take six years to complete. Project B has a net present value of $60,000 and will take three years to complete. Project C has an NPV of $90,000 and will take four years to complete. Based on this information, which project would you pick? A. They all have the same value B. Project A C. Project B D. Project C
Answer D Remember, project length is incorporated when computing NPV. You would choose the project that provides the most value, in this case the project with the highest NPV.
23. The project manager has just received a change from the customer that does not affect the project schedule and is easy to complete. What should the project manager do FIRST? A. Make the change happen as soon as possible B. Contact the project sponsor for permission C. Go to the change control board D. Evaluate the impacts on other project constraints
Answer D The other impacts to the project should be evaluated first. Such impacts include scope, cost, quality, risk, resources, and customer satisfaction. Once these are evaluated, the change control board, if one exists, can approve or deny the change.
37. Which of the following is included in a project charter? A. A risk management strategy B. Work package estimates C. Detailed resource estimates D. The business need for the project
Answer D This question may seem simple, but it is really testing if you know what is a correct project charter. Choices A and B do not come until project management planning, after the project charter. A project charter may include the names of some resources (the project manager, for example), but not detailed resources (choice C).
15. You are taking over a project and determine the following: Activity B has an early finish (EF) of day 3, a late finish (LF) of day 6 and an early start of day 2. Activity L is being done by a hard-to-get resource. The cost performance index (CPI) is 1.1, and the schedule performance index (SPI) is 0.8. Based on this information, what would you be more concerned about? A. Float B. Resources C. Cost D. Schedule
Answer D You may not understand this question until you review the rest of the book. Come back to it. This question tries to integrate a lot of information and test your ability to discern what information is relevant to the question. Though some figures to calculate float are provided (choice A), there is no information to say that the float is a problem. Most projects have hard-to-get resources (choice B). The question does not give an indication that having hard-to-get resources is a problem. CPI (choice C) is greater than one, so cost is not something to worry about. SPI is less than one, so choice D is the best answer.
You're a project manager at a construction company that's selling services to a client. You are working on a schedule and a budget when the CEO at the client demands that you do not produce those things. Instead, he wants you to begin work immediately. What the BEST thing that you can do? A. Meet with the CEO to explain why the budget and schedule are necessary B. Stop work immediately and go into claims administration C. Don't produce the schedule and budget D. Ask the buyer to find another company to work with
Answer: A This is a difficult situation for any project manager. But you can't cut corners on the project management processes, and you certainly can't tell the client that you're refusing their business. The best thing you can do is meet with the CEO to explain why you need to follow the rules.
You are working on one of the first financial projects your company has attempted, and you have learned a lot about how to manage the project along the way. Your company is targeting financial companies for new projects next year. What's the BEST thing for you to do? A. Talk to your company about setting up some training sessions so that you can teach others what you have learned on your project B. Keep the information you've learned to yourself so that you'll be more valuable to the company in the next year C. Decide to specialize in financial contracts D. Focus on your work with the project and don't worry about the helping other people to learn from the experience
Answer: A You should always try to help other people learn about managing projects.
You find out that you could save money by contracting with a seller in a country that has lax environmental protection rules. What should you do? A. Continue to pay higher rates for a environmentally safe solution B. Take advantage of the cost savings C. Ask your boss to make the decision for you D. Demand that your current contractor match the price
Answer: A You should never contract work to a seller who pollutes the environment. Even though it costs more to use machinery that doesn't damage the environment, it's the right thing to do.
33. What is Perform Quality Assurance?
Audit the quality requirements and the results from quality control measurements to ensure appropriate quality standards and metrics are used
You've given a presentation for your local PMI chapter meeting. This is an example of what? A. A PDU B. Contributing to the project management body of knowledge C. Donating to charity D. Volunteering
B Any time you help share your knowledge with others, you are contributing to the project management body of knowledge, and that's something you should do as a certified project manager!
An output of the process Estimate activity resources is a document called "activity resource requirements". It identifies the types and quantities of resources... A. ...while the term resources is limited to equipment and materials. B. ...required for each activity in a work package. C. ...while the term resources is limited to human resources. D. ...to be obtained solely from the performing organization.
B. ...required for each activity in a work package. PMBOK® Guide 4th Edition, p 145
A project management team wants to procure some customized products which are available in identical grade and quality from many vendors. What should be included in the procurement package to ensure that their offers will be comparable? A. A statement of work describing the needs of the project in sufficient detail to enable vendors to make suitable proposals B. A statement of work specifying attributes and metrics of the requested deliverables in detail to allow vendors submission of bids C. The approved project scope statement, the WBS which should be broken down to work package level and the WBS dictionary D. The risk management plan and the reports from those risk management reviews which have been made so far
B. A statement of work specifying attributes and metrics of the requested deliverables in detail to allow vendors submission of bids PMBOK® Guide 4th Edition, pp 325-326 (12.1.3.4 2nd phrase)
What is a trigger in project risk management? A. An expected situation causing an unidentified risk to occur B. A warning sign that a previously identified risk might be occurring or has occurred C. An unexpected situation causing an identified risk to occur D. An unexpected situation causing an unidentified risk to occur
B. A warning sign that a previously identified risk might be occurring or has occurred PMBOK® Guide 4th Edition, p 452
Which of the following becomes increasingly important in a virtual team environment? A. Requirements engineering B. Communication planning C. Formal procurements closure D. Network diagramming
B. Communication planning PMBOK® Guide 4th Edition, p 228
A project manager spent some days to create a multi-page document, which he called project charter. The document should have been issued by the project sponsor. The sponsor found the document outsized and asked for a condensed document. Which of the following is usually not an element of the project charter? A. The authority level of the project manager B. Detailed control account and work package descriptions C. The business need that the project was undertaken to address D. High-level risks
B. Detailed control account and work package descriptions PMBOK® Guide 4th Edition, pp 73-78
Which of the following is not a key stakeholder in a project that creates a service internal to an organization? A. Project manager B. External customers C. Project vendors D. Project team members
B. External customers are not key stakeholders in this instance as they are not actively involved in an internal project. A and D are actively involved in the project processes. Choice C, project vendors, is most likely a key stakeholder before an external customer since their ability to perform services and deliver goods may affect project schedule, budget, and completion.
Henry, the project manager of the MHB Project, has allowed a subsequent project phase to begin before the predecessor phase is complete. This is an example of which of the following? A. Crashing B. Fast tracking C. Risk management D. Tandem scheduling
B. Fast tracking is the process of allowing successor phases (or activities) to begin before predecessor phases (or activities) are complete. A is incorrect because crashing is the process of adding more resources to the project in an attempt to complete the project sooner. C, risk management, happens throughout the project, therefore it is wrong. D is also wrong because tandem scheduling is not a relevant term in this instance.
________ is typically not referred to as a buffer type in critical chain project management. A. Resource Buffer B. Free Buffer C. Feeding Buffer D. Project Buffer
B. Free Buffer Chapter 6 - Developing the (Single-Project) Critical-Chain Plan, in: Critical Chain Project Management, 2nd Edition by Lawrence P. Leach, http://pmi.books24x7.com/viewer.asp?bookid=10254&chunkid=424167694
Which of the following statements describes best the relationship between project phases and the project life cycle? A. The project life cycle includes the time when the project is performed and the expected product lifespan after that. B. In project management, the sequence of project phases and phase gates is often referred to as project life cycle. C. The project life cycle is regarded as a sequence of project activities while phases are defined to control overlapping activities. D. The project life cycle describes how iterations of project management processes are used when a project schedule is developed.
B. In project management, the sequence of project phases and phase gates is often referred to as project life cycle. PMBOK® Guide 4th Edition, p 15
Which should be included in a requirements management plan? A. The document should trace requirements to project scope / WBS deliverables. B. It should describe how requirements activities will be planned, tracked, and reported. C. It should trace high-level requirements to more detailed requirements. D. It should trace requirements to business needs, opportunities, goals, and objectives.
B. It should describe how requirements activities will be planned, tracked, and reported. PMBOK® Guide 4th Edition, pp 110-111
A project management team is evaluating the causes that might contribute to unsatisfactory performance and quality. Which of the following statements is not true? A. Normal process variation is attributable to random causes and sometimes also called "white noise". B. Special causes are easier to predict and handle than random causes (also called common causes). C. Special causes are unusual events which are difficult to foresee and often produce outliers. D. A process can be optimized to limit the bandwidth of variations due to random causes.
B. Special causes are easier to predict and handle than random causes (also called common causes). PMBOK® Guide 4th Edition, pp 429 and 449
Marcy, the project manager for the ERP Project, is about to complete the Project Phase Review. The completion of a project phase is also known as which of the following? A. Lessons learned B. Kill points C. Earned Value Management D. Conditional advancement
B. The completion of a project phase may also be known as a kill point. Lessons learned is a collection of information and knowledge gained through an experience, typically a phase, within the project, so A is wrong. EVM, earned value management, can happen at different times throughout the project, not just at the end of a project phase, therefore C is wrong. Choice D, conditional advancement, is a term that is used to describe the conditions that must be present for the work to continue on a project. Conditional advancement, however, does not have to happen only at the end of a project phase.
You are performing a project management audit in your company and find that most of the project plans are neither consistent nor up-to-date. Which of the following statements is not true? A. Projects should never be executed without a valid, updated and working project management plan. B. The consistency of the project management plan is secondary because it is only the results that matter. C. A great deal of effort is required to develop and update a project plan, but the benefits include less pressure on all stakeholders and a resulting product that will satisfy the requirements. D. Poor planning and insufficient updating of project management plans are common reasons for cost and time overruns.
B. The consistency of the project management plan is secondary because it is only the results that matter. Chapter 11 - Planning, in: Project Management: A Systems Approach to Planning, Scheduling, and Controlling, 10th Edition by Harold Kerzner http://pmi.books24x7.com/viewer.asp?bookid=32027&chunkid=254220570
Where can a project manager expect to receive templates? A. Commercial databases B. The project office C. The project sponsor D. PMIS
B. The project office is the best choice since its role is to support the project manager. Choice A, commercial databases, may be feasible, but it is not the best choice presented. Project Sponsors, Choice C, are not typically going to provide the project manager with templates. Choice D, project management information systems, may have project templates available, but the project office is the best choice presented.
What is true for prototypes? A. Prototyping causes significant costs and should be avoided wherever possible. B. They are tangible and allow for early feedback on requirements by stakeholders. C. Prototypes are mostly developed toward the end of a design or build phase. D. Prototypes increase the risk of misunderstandings between developers and users.
B. They are tangible and allow for early feedback on requirements by stakeholders. PMBOK® Guide 4th Edition, p 109
Which of the following statement(s) on whistleblowing is/are not true? a) It is a term used to define an employee's decision to disclose information on unethical, immoral or illegal actions at work to an authority figure. b) An employee should always discuss the matter with people external to the company before following the "chain of command" and discuss it with the immediate superior. c) The consequences of whistleblowing are often extreme and might include being branded as an owner of bad judgment, layoff, civil action and imprisonment. d) Carefully performed whistleblowing can lead to the end of unethical business practices. A. a B. b C. b, c D. c, d
B. b Chapter Seven - Nudge, Test, and Escalate Gradually, in: Leading Quietly: An Unorthodox Guide to Doing the Right Thing by Joseph L. Badaracco, Jr. http://pmi.books24x7.com/viewer.asp?bookid=5478&chunkid=305478503 Chapter 13 - Role of Corporate Governance, in: No Excuses: A Business Process Approach to Managing Operational Risk by Dennis I. Dickstein and Robert H. Flast http://pmi.books24x7.com/viewer.asp?bookid=29831&chunkid=339693288
What is Fallback Plan ?
Backup for Contingency Plan if it fails
1. There are 2 categories of Project Selection Methods, what are they?
Benefit Measurement Method and Mathematical Models
Project Selection Methods
Benefit measurement methods (Comparative Approach): Murder board, Peer Review, Scoring Models & Economic models Constrained Optimization methods (Mathematical approach): Linear programming, Integer Programming, Dynamic Programming & Multi-objective programming
Project Selection methods ?
Benefit measurement methods (Comparative approach): - Murder Board - Peer Review - Scoring Models - Economic Models Constrained optimization methods (Mathematical approach): - Linear programming - Integer programming - Dynamic programming - Multi-objective programming
Liquidated damages (LDs) are contractually agreed payments in order to... A. ...give the contractor an incentive to meet an aggressive schedule or challenging quality objectives. B. ...penalize the contractor for late completion of a project or failure to meet specifications. C. ...cover the customer's costs caused by late completion or failure to meet specifications by the contractor. D. ...make a bid or proposal binding for the offerer while the customer has time to select among various bidders.
C. ...cover the customer's costs caused by late completion or failure to meet specifications by the contractor. Chapter 7 - Project Contracts—(2) Ancillary Contracts, in: Principles of Project Finance by Edward Yescombe http://pmi.books24x7.com/viewer.asp?bkid=5680&destid=230#230
A project sponsor requested earned value data on two concurrent projects from the project managers. Both projects are regarded as equally important and strategically beneficial and have been finished by over 80%. He received the following information: Project A: PV: $1,800,000 EV: $2,300,000 AC: $2,100,000 Project B: PV: $2,000,000 EV: $1,500,000 AC: $1,600,000 The sponsor considers to shift some resources from project A to project B to speed up the second project which is currently behind schedule. What is the most likely outcome of such a measure? A. Changing team assignments during late course of a project typically increases cost efficiency. B. Changing team assignments during late course of a project typically increases time efficiency. C. According to the law of diminishing returns, the consolidated cost variance of the two projects will decrease. D. According to the law of diminishing returns, the consolidated cost variance of the two projects will increase.
C. According to the law of diminishing returns, the consolidated cost variance of the two projects will decrease. Chapter 3 - Project Estimating, in: The Project Management Question and Answer Book by Michael W. Newell and Marina N. Grashina http://pmi.books24x7.com/viewer.asp?bookid=5597&chunkid=518142829
You have used estimates made by your team members and applied the critical path method to compute a network logic diagram for your project. Then you found out that it cannot be sufficiently optimized for scarce resources and fast progress towards a given deadline. What should you do next? A. Apply resource leveling heuristics to uncritical activities only. B. Reduce estimates on duration and work efforts by an adequate percentage. C. Apply Three-point estimation and critical chain project management. D. Remove physical constraints and replace hard logic with soft logic.
C. Apply Three-point estimation and critical chain project management. PMBOK® Guide 4th Edition, pp 150 (Three-point estimation) and 155 (Critical chain) Chapter 1 - Begin in the Beginning, in: Critical Chain Project Management, Second Edition by Lawrence P. Leach http://pmi.books24x7.com/viewer.asp?bookid=10254&chunkid=0357832958
You are assigned as the project manager to a project which is executed for a customer under FP contract. Your customer informed you this morning that they insist on certain "refinements" of the project scope. You agree that the requested actions make really sense to the project, but believe that they constitute a major change increasing the project scope. What should you do next? A. Accept the request of the customer. Diligently document the additional costs and working hours spent by yourself and the team on the implementation of the change and invoice these to the customer at appropriate rates. B. Perform earned value analysis to assess the current status of the project and get all the numbers you need to communicate the case to the change control board which then will have to make the best decision regarding the customer request. C. Check the contract, the project charter, the scope statement and other documents related to the project and the contract. Implement ADR (alternative dispute resolution) procedures if the conflict cannot be resolved otherwise. D. Talk to the project sales department and find a joint solution with them how to best reject the request considering the commercial and strategic value of the customer to the organization you are working for.
C. Check the contract, the project charter, the scope statement and other documents related to the project and the contract. Implement ADR (alternative dispute resolution) procedures if the conflict cannot be resolved otherwise. PMBOK® Guide 4th Edition, p 339 (12.3.2.6)
What is the meaning of a concept called the "Journey to Abilene"? A. Project managers should visit their customers far more often than what is usual in order to avoid misunderstandings and bad emotions. B. International projects may have an increased need for traveling which can lead to additional costs and troubles with time zones. C. Committee decisions can have the paradox outcome, that a jointly made or approved decision is not desired by any individual group member. D. A project is a temporary endeavor undertaken to create a unique product, service or result. Repeating it would be similar to making the same journey twice.
C. Committee decisions can have the paradox outcome, that a jointly made or approved decision is not desired by any individual group member. Chapter 6 - Managing Project Conflict, in: People Skills for Project Managers by Steven W. Flannes and Ginger Levin http://pmi.books24x7.com/viewer.asp?bookid=6208&chunkid=202583813
You have recently been assigned as a project manager to a new B-O-T (build, operate, transfer) capital project. Reviewing the initial documentation you found out that it has been calculated with a very small margin during operations of its product for the shareholders. What should you do? A. As you are not responsible for lifecycle costing, you don't have to worry about operation profits. Focus on project costs from initiation through handover. B. Ensure maximum profits by buying the best and cheapest items, components and modules―potentially from a big number of different suppliers―and integrating them. C. Create a realistic plan broken down to a sufficient level of detail. Perform all risk management processes. Ensure real-time communications with all stakeholders. D. Try to get a second project manager assigned to share decision making and accountability to shareholders with the person.
C. Create a realistic plan broken down to a sufficient level of detail. Perform all risk management processes. Ensure real-time communications with all stakeholders. Chapter 2 - What Is Project Finance? in: Principles of Project Finance by Edward Yescombe http://pmi.books24x7.com/viewer.asp?bookid=5680&chunkid=905004848 (on BOT Projects) PMBOK® Guide of responsibility for unrealistic expectations by management)
With your team you are using judgment from subject matter experts to identify and analyze project risks. There is a small number of experts available, but some of them have long been in a teacher-student or manager-assistant relationship. Which of the following techniques can ensure best that there is no dominating opinion during an expert review? A. Peer review B. SWOT analysis C. Delphi technique D. Monetary value calculation
C. Delphi technique PMBOK® Guide 4th Edition, p 286
Of the following, which is not an exit criterion? A. Customer sign-offs B. Quality metrics C. Stakeholder expectations D. Regulatory inspections
C. Exit criterion are activities or evidence that allow a project to move forward. Stakeholder expectations are universal to the entire project, not just to one project phase. Choices A, B, and D are all examples of activities that can be considered exit criteria.
Which of the following is true regarding the code of accounts? A. It allows one to easily identify the breakdown level of the item in the resource structure. B. It describes the coding structure used by the performing organization to report financial information in its general ledger. C. It is the collection of unique identifiers generally assigned to WBS items. D. It defines ethical behavior in the project and the responsibilities to the customer and the profession.
C. It is the collection of unique identifiers generally assigned to WBS items. PMBOK® Guide 4th Edition, p 429
Managing is best described as which one of the following? A. Establishing direction B. Functional controls over the project team and stakeholders C. Consistently producing key results expected by stakeholders D. Motivating and inspiring the project team to produce results that are expected by project stakeholders
C. Managing has to do with consistently producing key results that are expected by stakeholders. Choices A and D describe the leadership processes a roject manager must possess, therefore they are wrong. Choice B is incorrect as it describes the functional management position over project team members.
A change request in a project has been rejected some weeks ago. Yesterday, the project manager found out that it nevertheless has been implemented by the team members, who knew of the change request, but not of the rejection. In order to avoid such a situation, rejected change requests should be consistently communicated to stakeholders through which process? A. Report performance B. Verify scope C. Perform integrated change control D. Monitor and control risks
C. Perform integrated change control PMBOK® Guide 4th Edition, p 94
When do bidder conferences normally take place? A. After the contract has been awarded to keep alternatives open. B. After submission of bid or proposal, but before contract award. C. Prior to the submission of a bid or proposal by the bidder. D. After technical meetings with bidders to discuss contract requirements.
C. Prior to the submission of a bid or proposal by the bidder. PMBOK® Guide 4th Edition, p 331
The project manager meets with the project team to review lessons learned from previous projects. In what activity is the team involved? A. Performance management B. Scope identification C. Risk identification D. Project team status meeting
C. Risk identification
You are the project manager of a project that spans the globe in its implementation. Your team is non-collocated and many of the project team members will need to travel between sites to complete the project work. Which of the following is least relevant to internationalization? A. Time zones B. Travel requirements C. Project schedule D. Teleconferences versus videoconferences
C. The project schedule is the least relevant when compared to the other factors of internationalization. Choices A, B, and D are all greatly affected by the geographical locale, difference in time zones, and availability of resources in these different countries.
8. You are the project manager for your organization. Influencing your organization requires which of the following? A. An understanding of the organizational budget B. Research and documentation of proven business cases C. An understanding of formal and informal organizational structures D. Positional power
C. To influence an organization (in order to get things done), a project manager must understand the explicit and implied organizational structures within an organization. Choice A is incorrect since the project manager may not even have access to an organizational budget. B is incorrect because a proven business case may not map to every scenario when influencing an organization. Finally, D is incorrect because positional power may relate to only a small portion of an organization, not to multiple facets of influence.
Which of the following statements is not true? A. Attribute sampling is the process of assessing whether results conform to specifications or not. B. Prevention means keeping errors out of the process by applying actions before the process starts changing its input. C. Variables sampling means that the result is classified into one of the 3 categories: "acceptable" - "acceptable after rework" - "rejected". D. Inspection is often mainly done to keep errors out of the hands of the customer instead of as a means of process control.
C. Variables sampling means that the result is classified into one of the 3 categories: "acceptable" - "acceptable after rework" - "rejected". PMBOK® Guide 4th Edition, p 206
A document called ____________ is created by decomposing the project scope into smaller, more manageable elements. A. Scope Statement B. Network Logic Diagram C. Work Breakdown Structure D. Requested Change
C. Work Breakdown Structure PMBOK® Guide 4th Edition, pp 116-122
According to the project plan, a contractor is scheduled to deliver some software components today afternoon. A regular payment is due to be made to this contractor tomorrow. You and your project team received a note this morning informing you that the software delivery will be delayed by 2 weeks. What should you do right now? A. You should delay the payment also for 2 weeks. B. You must immediately find a different contractor. C. You should conduct a meeting with the contractor to resolve the delivery issues before making the payment. D. You should make the payment and reschedule the project plan.
C. You should conduct a meeting with the contractor to resolve the delivery issues before making the payment. PMBOK® Guide 4th Edition, p 420
In a traditionally drawn decision tree, a circle represents ___________. A. a chance to which no expected monetary value can be assigned so that a likely pay-off can not be shown. B. a decision to which no expected monetary value can be assigned so that a likely pay-off can not be shown. C. a chance to which an expected monetary value may be assigned to calculate the most likely pay-off. D. a decision to which an expected monetary value may be assigned to calculate the most likely pay-off.
C. a chance to which an expected monetary value may be assigned to calculate the most likely pay-off. PMBOK® Guide 4th Edition, p 299
What are Ishikawa's 7 basic tools of quality ?
CCFRHPS: - Cause and Effect diagram - Control chart - Flowchart - Run chart - Histogram - Pareto chart - Scatter diagram
CHAPTER TWO Project Management Framework
CHAPTER TWO Project Management Framework
TT if Determine Budget process ?
CHEF R: - Cost aggregation - Historical relationship - EJ - Funding reconciliation - Reserve analysis
You are currently finishing a project under contract to develop and build some machining equipment for a customer. Your organization took over the obligation to solve certain problems if they come up during a contractual warranty period of one year after start of production. What do you not have to consider during the warranty period? A. Parts which were marked as-is must be held available for free replacement in case of failure. B. Incoming problems reported to the team must be handled immediately and with high priority. C. Some team members must be held available during the warranty period in case that they have to solve problems. D. At the end of the warranty period, the responsibility for the equipment will be turned over to the customer
Closing Answer: A. Parts which were marked as-is must be held available for free replacement in case of failure. Reference: Project Management JumpStart by Kim Heldman, page 268, pmi.books24x7.com/viewer.asp?bkid=10556&destid=611&term=in+Closing+process#6 11.
What is not the main purpose of a final project report? A. Preparing acceptance of the final product, service or result. B. Making stakeholders aware that the project has been closed out. C. Acknowledging what has been done and achieved by all contributors. D. If a project has been cancelled before completion: Explaining the causes.
Closing Answer: A. Preparing acceptance of the final product, service or result. References: PMBOK® Guide, 4th Edition, page 102; Tom Kendrick, Identifying and Managing Project Risk: Essential Tools for Failure-Proofing Your Project, page 323, pmi.books24x7.com/viewer.asp?bookid=5591&chunkid=0802978591&rowid=703.
Your project work has generally been finished and you want to commence a solid closing process for the project. What must have been attained to begin this process? A. The deliverables of the project must have been accepted. B. The organizational process assets must have been updated. C. The final product, service or result transition must have been finished. D. Lessons learned must have been organized into a data base.
Closing Answer: A. The deliverables of the project must have been accepted. Reference: PMBOK® Guide, 4th Edition, pages 101-102.
Post-mortem analysis after scheduled finish date of a project shows a CPI of 0.8 and an SPI of 1.25. What is a plausible explanation for that? A. The project was terminated early. At that time, it was over budget and ahead of schedule. B. The project has produced additional deliverables which were originally not required. C. The project has evidently been finished under budget and behind of schedule. D. The project has evidently been finished over budget and ahead of schedule.
Closing Answer: A. The project was terminated early. At that time, it was over budget and ahead of schedule. Reference: PMBOK® Guide 4th Edition, page 182.
What is the most important benefit of a 360 degree review? A. The reviewed person will regard the assessment process as fair and developmental. B. Assessments from different perspectives leave no weak spot of a person unaddressed. C. Managers will be assessed by their subordinates, enforcing a more participative style. D. One can use a simple standard questionnaire to gather data from the reviewers.
Closing Answer: A. The reviewed person will regard the assessment process as fair and developmental. Reference: Managing Project Quality by Timothy J. Kloppenborg and Joseph A. Petrick, page 66, pmi.books24x7.com/viewer.asp?bkid=6206&destid=171&destid=166&destid=166&term =project+quality+assurance#170.
You finished your project for a customer to implement a business software solution. All deliverables have been handed over and are already in use by the company. There is a minor last payment to be made by the customer on contract closure. You believe that it is now getting time to finally close the contract with the customer and then administratively close down the project. You approached the customer this morning and found that they are reluctant to finally close the contract. But you do not exactly understand why. What should you not do? A. Update all documents related to the project and the product so that they reflect the final specifications and the status of both the project and the product. Organize them in a fashion for easy access. B. Focus on your next project and leave the customer the time to get familiar with the software. They will come back to you anyway after some weeks to terminate the contract and make the last payment. C. Based on the contract and all documents which are relevant for the formal relationship with the customer, write a close-out report describing what was contractually required and what was obtained. D. Make sure that there are no active purchase orders against the contract or any other pending obligations, requests or claims from either party which need to be resolved. Then insist on formal contract closure.
Closing Answer: B. Focus on your next project and leave the customer the time to get familiar with the software. They will come back to you anyway after some weeks to terminate the contract and make the last payment. Reference: PMBOK® Guide 4th Edition, pages 99-102.
At the end of an internal project, you find several key stakeholders including the sponsor reluctant to finally accept all deliverables and then close the project. What should not be your next step in this situation? A. Identify any open issues and get them solved. Then be firm on formal closure. B. Formally close the project. Stakeholders will find a way by themselves to sort things out. C. Identify and openly discuss personal rationales underlying the reluctance. D. Invite earnest feedback from all sides and try to identify misunderstandings.
Closing Answer: B. Formally close the project. Stakeholders will find a way by themselves to sort things out. Reference: PMBOK® Guide 4th Edition, page 99.
What should you avoid when you are organizing documents as lessons learned? A. Devise the lessons learned documentation in a wording which is easy to understand for a reader who is not familiar with the project. B. Lessons learned must detail how certain groups or persons caused failures and delays, especially if they are inside the own organization. C. Writing lessons learned should be an exercise enhancing your personal learning experience. Make sure you grasp what you are writing down. D. Keep lessons learned documents at a place where they are easy to access and to retrieve for those who may later need the information.
Closing Answer: B. Lessons learned must detail how certain groups or persons caused failures and delays, especially if they are inside the own organization. Reference: PMBOK® Guide 4th Edition, page 214.
Your project, run for a customer, is coming to an end. The customer has been contractually granted a three years warranty period for the product of the project. What should you do first? A. Hand all relevant documentation over to the organizational unit responsible for handling the warranty. B. There is no additional work to be done. The contract should describe all processes in sufficient detail. C. Changes on the product can affect warranty clauses. Ensure that these clauses are aligned with the final specifications. D. According to many legislations, you cannot formally close a project before the end of the warranty period.
Closing Answer: C. Changes on the product can affect warranty clauses. Ensure that these clauses are aligned with the final specifications. Reference: PMBOK® Guide 4th Edition, page 340 ("Procurement documentation").
Post mortem earned value analysis of a project showed the following data: SPI: 0.78 CPI: 1.00 What is this telling you? A. The entire work of the project has been finished behind schedule and on budget. B. The entire work of the project has been finished ahead of schedule and on budget. C. The project has been terminated before completion. At that time it was behind schedule and on budget D. The project has been terminated before completion. At that time it was ahead of schedule and on budget.
Closing Answer: C. The project has been terminated before completion. At that time it was behind schedule and on budget Reference: PMBOK® Guide 4th Edition, page 183.
Your project team is on its way to finish work on the project, while you have the impression that a staff member is already negotiating the next assignment in another project. You are afraid that the person may come under pressure to start working on the other job before she has finished her work for your project. Her task is very complex, and it would be hard for someone else to take up the partial results and finish them. What action is most likely to resolve the situation? A. Have a private meeting with the person and discuss your observations. Make the person aware of the contract and of the legal consequences of unfinished work. B. Have a meeting with the entire team and discuss the person's expected early leave. Use team dynamics to buy in the commitment from the person to finish work orderly. C. Use your network of project managers to find another assignment for the person which allows for smooth transition and does not conflict with your needs. D. Ignore your observations and let the team member do her job. It is quite uncommon that staff drops work for a project before it is completely finished.
Closing Answer: C. Use your network of project managers to find another assignment for the person which allows for smooth transition and does not conflict with your needs. Reference: PMBOK® Guide 4th Edition, page 224 (last paragraph).
When finishing a project, which factors that influence customer satisfaction the most should you be aware of? A. Attractive price of the project and low running costs of the product B. Friendly project manager and effective after-project service C. Efficiency of the project and skills of the project manager D. Conformance to requirements of the project and fitness for use of the deliverables
Closing Answer: D. Conformance to requirements of the project and fitness for use of the deliverables Reference: PMBOK® Guide 4th Edition, page 190.
Which is not an example of a correctly handled contract closure procedure? A. Early termination of a contract because of a repudiatory breach B. Settling and finally closing the contract agreement C. Product verification by stakeholders and administrative closure D. Early termination of a contract because of an immaterial breach
Closing Answer: D. Early termination of a contract because of an immaterial breach Reference: PMP: Project Management Professional Study Guide, by Kim Heldman, Claudia Baca and Patti Jansen, Deluxe Edition, pages 449-452, pmi.books24x7.com/viewer.asp?bookid=13449&chunkid=602526344.
Monitoring Control ( Project Cost Mgt) 7.3
Control Cost
Your project is executed with a globally spread virtual team. The project progress has been found to be too slow. Which measure is most likely to immediately speed up the project? A. Technical training for all team members B. Daily phone conferences and detailed reporting C. A team meeting at a location convenient to all team members D. Collocation of team members at a suitable place
D. Collocation of team members at a suitable place PMBOK® Guide 4th Edition, p 234
What should not be covered by a risk management plan? A. Roles and responsibilities for handling project risks B. Timing of project risk management activities C. The methodological approach used for risk management D. Individual risks and potential responses to them
D. Individual risks and potential responses to them PMBOK® Guide 4th Edition, pp 279-282 and 288
You are the project manager in an engineering project and have recently signed a contract with a software vendor for the development of a complicated control solution. The software will be used to control machinery equipment which your project team is currently developing. The contract is a lump-sum contract. The contractor has target cost estimated which seem rather low to you. Which of the following statements is not true for this situation? A. It is the contractor's risk in this type of contract that their profit may vanish if costs have been underestimated. B. This form of contract should only be chosen when all the requirements for the building of the product are well-known by all parties involved. C. In a fixed-price contract, change requests can cause issues regarding additional time and extra costs for the changes to be applied. D. It is likely that your organization may have to assume any unexpected additional costs for the software development.
D. It is likely that your organization may have to assume any unexpected additional costs for the software development. Chapter 19.6 - Types of Contracts, in: Project Management: A Systems Approach to Planning, Scheduling, and Controlling, 10th Edition by Harold Kerzner http://pmi.books24x7.com/viewer.asp?bookid=32027&chunkid=0111429423
Which is not true in regard of RoI (return on investment) for a project? A. It defines the cumulated net income from an investment at a given point in time or during a defined period. B. It includes investment, direct and indirect costs and may include allowances for capital cost, depreciation, risk of loss, and/or inflation. C. It is most commonly stated as a percentage of the investment or as a dimensionless index figure. D. It is the time when cumulated net income is equal to the investment.
D. It is the time when cumulated net income is equal to the investment. Chapter 1 - Defining the Project Business Case and Getting Buy-in from Top Management, in: Maximizing Project Value: Defining, Managing, and Measuring for Optimal Return by Jeff Berman http://pmi.books24x7.com/viewer.asp?bkid=16115&destid=56&destid=42&destid=42&term=return+on+investment+(ROI)
Which of the following statements describes best the relationship of quality and grade? A. Low grade is always a problem; low quality may be overcome by a good rework and repair process. B. Grade is a category or rank given to entities having different functional requirements but the same need for quality. C. Both quality and grade can often be improved through intelligent measuring, testing and examining. D. Low quality is always a problem as it bears on the ability of an item to meet requirements; low grade may sometimes be acceptable.
D. Low quality is always a problem as it bears on the ability of an item to meet requirements; low grade may sometimes be acceptable. PMBOK® Guide 4th Edition, p 190
Management has asked Nancy to determine if a project concept is valid and can be completed using a reasonable amount of time and finances. Management is asking for which of the following? A. Kill points B. Cost and time estimates C. A project case study D. A feasibility study
D. Management is looking for a feasibility study to determine if it is feasible for a project to exist. Choice A is incorrect since kill points are within a project and typically don't prove project feasibility. Cost and time estimates, answer B, are not the elements Nancy or management needs at this juncture. Choice C, Project Case Study, may seem correct, but D is a superior answer since it is the formal name for the report documenting the project's feasibility.
You have been criticized that certain specifications in your scope statement do not pass the test for SMART objectives. What are SMART objectives? A. Objectives specified in far more detail than necessary for a execution of a successful project. B. Easily achievable objectives which help you reducing the pressure on yourself and the team. C. Objectives that should be achieved in order to attain formal recognition by both the customer and the project sponsor. D. Objectives that are described using specific, measurable, assignable, realistic and time-related specifications.
D. Objectives that are described using specific, measurable, assignable, realistic and time-related specifications. Chapter 3 - Performance Management, in: Management Skills for New Managers by Carol W. Ellis http://pmi.books24x7.com/viewer.asp?bookid=8854&chunkid=742856503
An estimation has been made that the construction of a residential home will cost a certain amount per square foot of living area. This is an example of what type of estimating? A. Analogous estimating B. Bottom-up estimating C. Top-down estimating D. Parametric estimating
D. Parametric estimating PMBOK® Guide 4th Edition, p 439 *Pagination of the PMBOK® Guide 4th Edition: PMI® has published two PMBOK® Guide 4th Ed. versions with different page numbering. One of them - 1st print - requires adjustments to some of the links above. Please check page 381 in your copy of the PMBOK® Guide 4th Edition: If page 381 is titled PMBOK® Guide—Third Edition Project Leadership Team: -No action is required. -This document uses the same page numbers. If page 381 is titled Appendix C (= PMBOK Guide 4th Edition, 1st print): - Deduct 8 from all page references beyond page 381. >Review PMBOK® Guide page 400 when this document references to page 408. >Leave all page references up to 380 unchanged.
Project team members are most likely to work full-time on a project in which of the following organizational structures? A. Functional B. Weak matrix C. Strong matrix D. Projectized
D. Projectized structures often have project team members assigned to the project on a full-time basis. Choices A, B, and C are incorrect since these structures have part-time project teams.
Which of the following describes the early stages of a project? A. High costs and high demand for resources B. A high demand for change C. A high demand for project team time D. Low costs and low demand for resources
D. Projects typically have low costs and low demand for resources early in their life cycle. Choices A, B, and C are incorrect statements in regard to projects.
Which of the following best describes a project deliverable? A. The resources used by the project to complete the necessary work B. The resources exported from the project as a result of the project work C. The end result of a project planning session D. The tangible good or service created by the project team
D. Recall that projects are temporary endeavors to create a unique product or service. A is incorrect because resources devoted to the project do not constitute a project deliverable. B and C are incorrect since project work is not a deliverable and there will be multiple planning sessions on most projects. The work of a project often will result in a deliverable, not resources or a work product.
In order to speed up a project, you made a decision to fast-track a phase currently performed with five team members, and another one which was planned to begin in four weeks time with another five team members. Which of the following activities should you do first? A. Make sure that all exit criteria of the consecutive phase have been met to ensure the flow of communications in a team situation which is more complex by a factor of 2. B. Make sure that all entry criteria of the previous phase have been met by planning and performing a phase gate meeting to assess technical aptness. C. Make sure that all exit criteria of the previous phase have been met by planning and performing a phase gate meeting to assess technical performance. D. Restructure your team and delegate tasks in order to ensure the flow of communications in a team with the number of communication channels increased by a factor of 4.5.
D. Restructure your team and delegate tasks in order to ensure the flow of communications in a team with the number of communication channels increased by a factor of 4.5. PMBOK® Guide 4th Edition, pp 21, 157, 253
During execution of a project which is performed for a customer on a T&M (time and material) contract base, a new project manager is taking over the assignment. He discovers that two members assigned to the project have charged time without performing any work for the project customer. Upon further investigation, he determines that this occurred because there have been no other project assignments open for these employees. The customer is unaware of these facts. What should the project manager do? A. Try to find some productive work for these staff members in the project and leave them on the team. B. The best thing is to do nothing. The customer will not realize the problem anyway. C. Try to find a responsible person for the over-assignment who can be made accountable. D. Take the two people off the team immediately and arrange for the refund of the excess charges to the customer.
D. Take the two people off the team immediately and arrange for the refund of the excess charges to the customer. Chapter 5 (Honesty) - PMI® Code of Ethics and Professional Conduct http://www.pmi.org/PDF/ap_pmicodeofethics.pdf
A company has to make a choice between two projects, because the available resources in money and kind are not sufficient to run both at the same time. Each project would take 9 months and would cost $250,000. The first project is a process optimization which would result in a cost reduction of $120,000 per year. This benefit would be achieved immediately after the end of the project. The second project would be the development of a new product which could produce the following net profits after the end of the project: 1. year: $ 15,000 2. year: $ 125,000 3. year: $ 220,000 Assumed is a discount rate of 5% per year. Looking at the present values of the benefits of these projects in the first 3 years, what is true? A. Both projects are equally attractive. B. The first project is more attractive by app. 7%. C. The second project is more attractive by app. 5%. D. The first project is more attractive by app. 3%.
D. The first project is more attractive by app. 3%. Chapter 14.24 - Net Present Value, in: Project Management: A Systems Approach to Planning, Scheduling, and Controlling, 10th Edition by Harold Kerzner, http://pmi.books24x7.com/viewer.asp?bookid=32027&chunkid=0192138754
What is the Statement of Work
Description of the projects deliverables
Planning ( Project Cost mgt) 7.2
Determine Budget
What is included in Budget Forecasts OUTPUT ?
EAC
ETC (Estimate to Complete)
EAC - AC (Estimate at Completion - Actual Cost)
Earned Value Forecast Table
EAC = BAC / CPI ETC = EAC - AC VAC = BAD - EAC
Cumulative CPI
EV (cume) - AC (cume)
CV (Cost Variance)
EV - AC (earned value - actual cost)
How do you calculate cost variance (CV) and what does it mean?
EV - AC - shows the differece in value of work completed and actual cost of that work 0 = project on track > 1.0 = project under budget < 1.0 = project is over budget
CPI (Cost Performance Index)
EV / AC (earned value divided by actual cost)
Schedule Variance (SV) formula and what does it mean
EV- PV - indicator the shows the difference between value of work completed and value of what should have been completed 0 = on track > 0 = Project under budget < 0 = project over budget
How many processes occur in the Executing Process Group?
Eight (8)
Planning ( Project Time mgt) 6.4
Estimate Activity durations
Planning ( Project Cost mgt) 7.1
Estimate cost
During which process group do you perform the Acquire Project Team?
Executing
When control charts are used, outliers are... A. ...singular measurements outside the bandwidth between an upper and lower control limit. B. ...a typical result of a rare random cause which is difficult to replicate and to verify. C. ...insignificant results, often measurement errors, the causes of which should not be further investigated. D. ...measurements inconsistent with a run of 7 results over or under a mean value.
Executing Answer: A. ...singular measurements outside the bandwidth between an upper and lower control limit. Reference: Managing Project Quality by Timothy J. Kloppenborg and Joseph A. Petrick, page 70, pmi.books24x7.com/viewer.asp?bookid=6206&chunkid=0324731767&rowid=185.
During the execution of a project to build a complex defense system, your team has run into a deep crisis. The project's goal and objectives have been challenging right from the start, but now you have discovered that your team members have become increasingly unaware of them. Being busy solving detail problems, they often fail to understand the overall requirements. Then they develop solutions which resolve issues in their area of limited responsibility, while causing new problems at the interfaces with other system components. Meanwhile, the team members show signs of growing frustration, and time is running away. How can you help your team in this situation? A. Accompany your team members along a sequence of maturity levels from dependence through independence to interdependence. B. Ignore the low-level issues and focus on achieving the overall requirements, details can be sorted out during test and handover. C. If everybody simply does their jobs, then there should be no problem. Make sure that team members are fully aware of their accountability. D. Problems of this dimension have their origin in fundamental personal incompatibilities between team members. You should replace them all.
Executing Answer: A. Accompany your team members along a sequence of maturity levels from dependence through independence to interdependence. Reference: The Human Aspects of Project Management: Managing the Project Team by Vijay K. Verma, Volume Three, page 70, pmi.books24x7.com/viewer.asp?bookid=3028&chunkid=489211702.
You are in the process of contacting sellers to obtain bids and proposals. You found out that it might become a time-consuming procedure to ensure that the sellers get a clear and common understanding of the procurement process and of the needs of your project. Which technique may help you save time? A. Bidder conferences B. Advertising C. Qualified sellers list D. Four-eyes meetings
Executing Answer: A. Bidder conferences Reference: PMBOK® Guide 4th Edition, page 331
A request, demand or assertion of a contract partner for consideration, compensation or payment under a legally binding contract, such as a disputed change, is often referred to as a____. A. Claim B. Trial C. Refinement D. Audit
Executing Answer: A. Claim Reference: PMBOK® Guide 4th Edition, page 428.
Which concept of locating team members can help them best to enhance their performance as a team? A. Co-location B. Cross-functional dispersion C. Virtual e-teams D. Global team dispersion
Executing Answer: A. Co-location Reference: PMBOK® Guide 4th Edition, page 234.
When should lessons learned be organized? A. During the project lifecycle and at the end. B. At the end of the project during closing. C. After the end of the project at a project post-mortem meeting. D. Lessons learned can be organized when there is time available.
Executing Answer: A. During the project lifecycle and at the end. Reference: PMBOK® Guide 4th Edition, page 214.
During execution in a project to build a major road bridge, your team found a major flaw in the technical drawings. On an ad-hoc base, they had to find and implement a workaround to avoid delays and mitigate technical problems. What should you do next? A. Meticulously document the problem and the workaround to create a requested change to the project management plan, which will then be passed to the body responsible for the change control decision. B. The workaround was performed on a technical level only. As long as it does not influence the function of the bridge or the organizational configuration of the project, a change request will not be necessary. C. A retroactive formal change request side is not reasonable. Create some additional documents describing the workaround and sign them by yourself, you can present them during the next regular CCB meeting. D. It is normal in projects that during project execution inconsistencies arise between planning documents and actual implementation. This is no problem as long as the functional status of the product is maintained.
Executing Answer: A. Meticulously document the problem and the workaround to create a requested change to the project management plan, which will then be passed to the body responsible for the change control decision. Reference: PMBOK® Guide 4th Edition, page 312 (11.6.3.3).
During execution of your project you have observed that a team member is getting isolated by other team members. Which is a wrong approach in such a situation? A. The interpersonal relationships between team members are their private issue. You should not interfere. B. You should apply team building measures to improve the team's effectiveness. C. You should try to get feedback from the isolated team member to understand the situation. D. You should try to get feedback from the other team members to understand the situation.
Executing Answer: A. The interpersonal relationships between team members are their private issue. You should not interfere. Reference: Project Management, A Systems Approach to Planning, Scheduling and Controlling by H. Kerzner, 10th edition, page 211, pmi.books24x7.com/viewer.asp?bookid=32027&chunkid=485616045.
You are the manager of a project for a company that is known to make heavy use of extrinsic motivators in order to boost morale and team performance. What does that mean? The motivators used... A. ...are tailored to the needs of individual team members. B. ...are incentives such as rewards, gifts, or money. C. ...are derived from within individual team members. D. ...include the improvement of hygiene factors of the work environment.
Executing Answer: B. ...are incentives such as rewards, gifts, or money. Reference: Project Management JumpStart by Kim Heldman, page 222, pmi.books24x7.com/viewer.asp?bookid=10556&chunkid=404199992.
A Pareto chart helps focusing on... A. ...causes which create a repeating and often seasonal pattern of problems. B. ...the minority of causes, which create the majority of problems and defects. C. ...special causes of process variations which should be investigated to avoid type 1 errors. D. ...the standard deviation of process variation which should not be investigated.
Executing Answer: B. ...the minority of causes, which create the majority of problems and defects. Reference: PMBOK® Guide, 4th Edition, pages 210-211.
What is the meaning of the acronym CSOW? A. A statement of work that is part of a contingency plan; it is commonly linked with Contingency reserves. B. A statement of work that has been formally agreed upon by both parties and is therefore part of a Contract. C. A statement of work that is currently valid; this contrasts with the scope baseline, a formerly valid SOW. D. A statement of work on project level that cumulates statements of work on cost account level
Executing Answer: B. A statement of work that has been formally agreed upon by both parties and is therefore part of a Contract. Reference: Delivering Project Excellence with the Statement of Work by Michael G. Martin, page 37, pmi.books24x7.com/viewer.asp?bkid=6197&destid=98&term=definition#98.
A project manager tracks the work of team members using a network logic diagram. Which effect will the presence of an actual finish date have on the calculation of float for the finished activity? A. Finished activities have only float left when they have been completed on schedule. B. Calculating free float and total float is generally not reasonable for finished activities. C. When an activity has been finished, total float gets often converted to become free float. D. When an activity has been finished, float gets often converted to become slack.
Executing Answer: B. Calculating free float and total float is generally not reasonable for finished activities. References: PMBOK® Guide, 4th Edition, pages 155, 435.
The _______ can be used to assess outlays and funding requirements. A. Cost assignment matrix B. Cost performance baseline C. Cost variance analysis D. Control account plan
Executing Answer: B. Cost performance baseline Reference: PMBOK® Guide 4th Edition, page 178.
During human resource planning you identified that your team members are not sufficiently qualified for their tasks. Which may be an appropriate solution to this problem? A. Reduce level of effort B. Develop a training plan C. Plan quality audits D. Plan quality inspections
Executing Answer: B. Develop a training plan Reference: PMBOK® Guide 4th Edition, page 225 ("Training needs").
You are performing quality control on your project. How can a process flow chart help you? A. It may help identify outliers. B. It may help anticipate problems. C. It may help spot accountable staff. D. It may help react later.
Executing Answer: B. It may help anticipate problems. Reference: PMBOK® Guide 4th Edition, page 198.
What do you expect when you are submitting an invitation for bid to sellers? A. Offers which will differ significantly in solution approach and price. B. Offers which are similar enough to allow a selection based on price. C. Offers which are not primarily written to win against competition. D. General information on a seller's ability to provide the goods or services.
Executing Answer: B. Offers which are similar enough to allow a selection based on price. Reference: PMBOK® Guide 4th Edition, page 326.
The ________ is a document which describes how the project management team will implement the performing organization's quality policy. A. Quality assurance plan B. Quality management plan C. Quality commitment D. Quality audit
Executing Answer: B. Quality management plan Reference: PMBOK® Guide 4th Edition, page 445.
What should you focus on when managing the stakeholders of your project? A. Ensure the order of phases. B. Resolve issues. C. Identify the stakeholders. D. Ensure stakeholder value.
Executing Answer: B. Resolve issues. Reference: PMBOK® Guide 4th Edition, page 261-262.
The members of your project team have been assigned to your project with general availability levels of 50%. Yesterday, they reported to you that significant variances occurred during project execution. You have noted that the team members have been spending less than 50% of their time working on your project. Your project schedule is about to become heavily delayed, and deadlines are in jeopardy. What should you do? A. Talk to your sponsor and try to get more resources assigned on similar conditions as the existing ones. B. Talk with functional managers. Negotiate clear and written assignments with reliable scheduling priorities. C. Ignore the difficulties, adjust your schedule and negotiate new deadlines according to the slower progress. D. Focus on internal charges. Make sure that your project is not getting charged for more than the actual work.
Executing Answer: B. Talk with functional managers. Negotiate clear and written assignments with reliable scheduling priorities. Reference: PMBOK® Guide 4th Edition, page 239.
While executing a project, you sense a slightly negative attitude in your team. Which type of document do you now need, among others, to better understand and then be able to improve the situation? A. Project charter B. Team performance assessments C. Cost baseline D. Statement of work
Executing Answer: B. Team performance assessments Reference: PMBOK® Guide 4th Edition, page 236.
The situational leadership model as defined by Paul Hersey and Ken Blanchard consists of the stages A. Must-be requirements, one-dimensional requirements, attractive requirements. B. Telling, selling, participating, delegating. C. Direct style, instrumental style, relational style. D. Acquisition stage, learning stage, performance stage, exhaustion stage.
Executing Answer: B. Telling, selling, participating, delegating. References: Deborah S. Kezsbom and Katherine A. Edward , The New Dynamic Project Management: Winning Through the Competitive Advantage, Second Edition, pages 266-275, pmi.books24x7.com/viewer.asp?bookid=8645&chunkid=0921290582&rowid=566; H. Kerzner, Project Management, A Systems Approach to Planning, Scheduling and Controlling, 10th edition, page 221, pmi.books24x7.com/viewer.asp?bkid=32027&destid=349#349.
While applying procurement management processes in your project you have identified the need to gain a more objective understanding of sellers' capabilities in order to rank proposals and develop a negotiating sequence. Which technique may help avoid bias and subjective decisions best? A. Bidder conference B. Weighting system C. Oral contract D. Letter of intent
Executing Answer: B. Weighting system Reference: PMBOK® Guide 4th Edition, pages 328-329.
When should a time and material contract with a contractor been chosen instead of a fixed price contract? A. When cost risks for the customer should be limited but not schedule risks. B. When project scope includes the progressive elaboration of the scope of deliverables. C. When subcontractors are being used and the customer will reimburse their invoices. D. When only a limited amount of money can be made available to fund the project.
Executing Answer: B. When project scope includes the progressive elaboration of the scope of deliverables. Reference: Program Management: A Comprehensive Overview of the Discipline by Mitchell L. Springer, page 34, pmi.books24x7.com/viewer.asp?bookid=3584&chunkid=533168870.
In a project, a cost incentive contract has been awarded to a contractor with the following parameters: Target cost: $1,000,000 Target contractor fee: $100,000 Cost benefit sharing ratio: 80%/20% Price ceiling: $1,200,000 What is the point of total assumption (PTA, breakpoint) of the project? A. $1,000,000 B. $1,100,000 C. $1,125,000 D. $1,200,000
Executing Answer: C. $1,125,000 Reference: Quantitative Methods in Project Management by John Goodpasture, pages 250-251, pmi.books24x7.com/viewer.asp?bkid=8442&destid=670&term=Point+of+total+assump tion+(PTA)#670. Breakpoint costs: $1,125,000 Variance:$125,000 80% customer share:$100,000 Customer price: Target price $1,100,000 Share on variance $100,000 Breakpoint price $1,200,000
Being assigned as a project manager, you noticed during project execution that conflicts arise in the team on both technical and interpersonal levels. What is an appropriate way of handling conflicts? A. Conflicts distract the team and disrupt the work rhythm. You should always smooth them when they surface. B. A conflict should be handled in a meeting so that the entire team can participate in finding a solution. C. Conflicts should be addressed early and usually in private, using a direct, collaborative approach. D. You should use your coercive power to quickly resolve conflicts and then focus on goal achievement.
Executing Answer: C. Conflicts should be addressed early and usually in private, using a direct, collaborative approach. Reference: PMBOK® Guide 4th Edition, page 239, 2nd paragraph.
At the beginning of project execution, you notice different opinions between team members relating to project work and deliverables and to the level of overall complexity. What should you do right now? A. Give your team members some time to develop a common understanding of the project scope and product scope. Upcoming interface problems may be resolved later. B. Use the risk management processes to identify and assess risks caused by misunderstandings and develop a plan with measures in order to respond to them. C. Organize meetings to identify and resolve misunderstandings between team members in order to avoid interface problems, disintegration and costly rework early in the project. D. Use interviews in private with each individual team member to inform them of your expectations and your requirements in an atmosphere of confidence.
Executing Answer: C. Organize meetings to identify and resolve misunderstandings between team members in order to avoid interface problems, disintegration and costly rework early in the project. Reference: PMBOK® Guide 4th Edition, page 232.
In an organization, project managers report directly to the head of a project management office (PMO). In this case, which statement is probably not true? A. The head of the project management office can strengthen the matrix as a manager of project managers. B. The project management office will actually be responsible for direct management of the projects. C. Projects will be run by the functional organization and project managers expedite change control. D. It will be easier for the PMO to ensure that the organizational process assets provided are used.
Executing Answer: C. Projects will be run by the functional organization and project managers expedite change control. Reference: PMBOK® Guide 4th Edition, pages 25, 443.
A project customer and a contractor agreed on regular quality audits during execution by a third party audit team, which is working on an assignment for the customer. What should the contractor have prepared for the audits? A. Work results B. Measurements and test results C. Quality documentation D. Contract-related correspondence
Executing Answer: C. Quality documentation Reference: PMBOK® Guide 4th Edition, pages 204.
Which statement describes best the purpose of the communications management plan? A. The project management plan is a subsidiary document of the overall communications management plan. B. The communications management plan describes rules of behavior and respect for communications in cross-cultural teams. C. The communications management plan describes the information delivery needs including format and level of detail. D. The communications management plan focuses on the use of communications technologies by the project management team
Executing Answer: C. The communications management plan describes the information delivery needs including format and level of detail. Reference: PMBOK® Guide 4th Edition, page 429.
What is true for statistical sampling? A. Statistical sampling can be used to verify for each individual item in a lot, whether it can be accepted or must be rejected. B. Attribute sampling means collection of quantitative data showing the level of conformity for each item of a sample. C. Variables sampling includes collection of quantitative data on the degree of conformity for each item of a sample. D. Statistical sampling is commonly used in quality assurance to examine if items of a lot conform to quality standards.
Executing Answer: C. Variables sampling includes collection of quantitative data on the degree of conformity for each item of a sample. Reference: PMBOK® Guide 4th Edition, page 206.
When is passive risk acceptance an appropriate approach? A. When the likeliness of risk occurrence is very low. B. When the risk occurrence is hard to identify. C. When it is best to deal with a risk as it occurs. D. When the risk cannot be assessed or analyzed.
Executing Answer: C. When it is best to deal with a risk as it occurs. Reference: PMBOK® Guide 4th Edition, page 304.
In project management, work authorization is normally not... A. ...a permission written by the project manager to begin work on a specific activity. B. ...a permission written by the project manager to begin work on a specific work package. C. ...a written direction used by a project manager to ensure work is done properly and correctly. D. ...a document issued by a sponsor authorizing the project manager to apply resources to project activities.
Executing Answer: D. ...a document issued by a sponsor authorizing the project manager to apply resources to project activities. Reference: PMBOK® Guide 4th Edition, page 452.
What does the term best practice often refer to? A. A standardized set of deliverables, like plans, reports, and checklists. B. A set of tools and techniques that a project manager should master. C. The concept of state of the art applied to project management. D. A specific sequence of work, described in terms of soft logic.
Executing Answer: D. A specific sequence of work, described in terms of soft logic. Reference: PMBOK® Guide 4th Edition, page 140
You identified a technical risk in your project and assigned a contingency for that. Planning contingency reserves is part of which risk response strategy? A. Active risk mitigation B. Passive risk avoidance C. Passive risk acceptance D. Active risk acceptance
Executing Answer: D. Active risk acceptance Reference: PMBOK® Guide 4th Edition, page 304 ("accept").
What is not true for change requests? A. Change requests should always be handled in a controlled and integrative fashion. B. Change requests surpassing the formal change control processes can lead to scope creep. C. Professionally managed, change requests can help improving a project and resolving emerging problems. D. Change requests are always a sign of bad planning and should be avoided therefore.
Executing Answer: D. Change requests are always a sign of bad planning and should be avoided therefore. References: PMBOK® Guide 4th Edition, pages 93, 125 (5.5).
Which statement describes best the meaning of leadership? A. Ensuring predictability in an uncertain environment B. Sustaining an ongoing business over a long period of time C. Adhering to publicized standards and procedures D. Developing a vision and strategy and motivating people
Executing Answer: D. Developing a vision and strategy and motivating people Reference: PMBOK® Guide 4th Edition, page 240.
Which question is not appropriate for a weighting system to evaluate seller's performance according to weighted criteria? A. What is the yearly investment in development of personnel per year and employee? B. How many reference customers have been verified by the seller in the specific field? C. What financial status and reputation in the market place could be assessed? D. Has a CV of the prospective project manager been sent with the proposal?
Executing Answer: D. Has a CV of the prospective project manager been sent with the proposal? Reference: PMBOK® Guide 4th Edition, page 331-333.
What is important for quality auditors? A. They must be in-house personnel. B. They must be third-party staff. C. They must be mandated by the auditee. D. They must be properly trained.
Executing Answer: D. They must be properly trained. Reference: PMBOK® Guide 4th Edition, page 204.
Which is not a goal in both project management and quality management? A. Prevention over inspection B. Customer satisfaction C. Management responsibility D. Triple constraint
Executing Answer: D. Triple constraint Reference: PMBOK® Guide 4th Edition, pages 190-191.
The scope baseline includes____. A. The various management plans of the project B. Schedule baseline and cost baseline C. Product configuration ID and statement of work D. WBS dictionary, WBS, scope statement
Executing Answer: D. WBS dictionary, WBS, scope statement Reference: PMBOK® Guide 4th Edition, pages 122, 124, 319.
During project execution you found out that work is often not performed at the right time and in the right order. Deliverables are made by one team member that cannot be processed by another one. This already leads to timely rework and bad morale among team members. Which project management tool is most appropriate to deal with problems like this? A. Organization chart B. RACI matrix C. Communications management plan D. Work authorization system
Executing Answer: D. Work authorization system Reference: PMBOK® Guide 4th Edition, page 452.
How does a project management team stay in touch with the work and the attitudes of project team members? A. By observation and communication B. Using closed questions during team meetings C. Through third-party assessments D. Through the team members' functional managers
Executing Answer: A. By observation and communication Reference: PMBOK® Guide 4th Edition, page 238.
The concept of (the) _________ states that changes related to one requirement—scope, time, or cost—will at least influence one other element. A. Three-point estimation B. Triple constraint C. Three wise men D. Three needs theory
Executing Answer: B. Triple constraint Reference: Sponsoring a Project by Paula K. Martin, pmi.books24x7.com/viewer.asp?bookid=12615&chunkid=514195683.
In most jurisdictions, a legally required order of formal statements establishing a contract is: A. Invitation to treat, offer, PO B. Inquiry, bid, order C. Offer, acceptance D. MoU, LoI, final agreement
Executing Answer: 3 Reference: Project Management, A Systems Approach to Planning, Scheduling and Controlling by H. Kerzner, 10th edition, page 850, pmi.books24x7.com/viewer.asp?bkid=32027&destid=1360#1360.
What are organizational process assets
Existing info you have on hand Templates, Examples Software tools Historical information from similar projects, such as lessons learned
What are the tools and techniques used during the monitor and control project work process?
Expert judgement
What is Project Lifecycle ?
Feasibility, Planning, Design, Coding, Testing, Installation, Conversion, Turnover to operation - Project phase can be overlapped
51. Choosing one's viewpoint in favor of another, also known as win - lose is called?
Forcing
32. What is Referent power?
Form of personal power obtained through association or personal charisma
Estimate to Complete - ETC
Form this point on, how much MORE do we expect it to cost to finish the project (a forecast) ? - ETC = EAC - AC - Reestimate from the bottom up
Budget at Completion - BAC
How much did we BUDGET for the TOTAL project effort ?
What is Cost Budget ?
How much money the company should have available for the project = Cost Baseline + Management Reserves
18. What are the three steps of Stakeholder Analysis?
Identify Stakeholders, Identify Impact, Assess Response
11. Kaizen is best defined as?
Incremental Continuous Improvement
36. List some information gathering techniques used in identifying risk?
Information gathering techniques used in identifying risk are Brainstorming, Interviewing, Delphi technique and root cause analysis.
Which process group and knowledge are does Identify Stakeholders occur?
Initating/ Project Communications Mngmt.
As the project manager in a software project which is currently initiated, you want to assess high-level risks. What should you do? A. Develop the project charter and a risk management plan to start identifying risks based on those and other documents. B. Identify and analyze risk events using qualitative and quantitative techniques. C. Develop contingency plans and fallback plans in case the original plan proves wrong. D. Discuss the risks documented in your Risk register with the project key stakeholders.
Initiating Answer: A. Develop the project charter and a risk management plan to start identifying risks based on those and other documents. References: PMBOK® Guide 4th Edition, pages 73 and 284.
You are going to take over a new project as the project manager in an enterprise unknown to you. What should you investigate during the chartering process? A. Enterprise environmental factors B. Project management plan C. Project risk register D. Team performance reports
Initiating Answer: A. Enterprise environmental factors References: PMBOK® Guide 4th Edition, pages 14 and 76.
A project charter is a document that... A. ...describes both the project scope and the product scope at detail level. B. ...authorizes the project and the use of organizational resources to meet project requirements. C. ...breaks down the project scope over several steps to describe the project on work package level. D. ...describes all activities which are necessary to create the project deliverables.
Initiating Answer: B. ...authorizes the project and the use of organizational resources to meet project requirements. Reference: PMBOK® Guide 4th Edition, page 442.
Who should always issue the project charter? A. A person internal to the project organization B. A project initiator or sponsor C. A low-level manager of the performing organization D. A high-level manager of the performing organization
Initiating Answer: B. A project initiator or sponsor Reference: PMBOK® Guide 4th Edition, page 74.
Your management applies the 10 percent solution: It has requested that you reduce the budget for the project which you are currently initiating by 10%. What will this probably mean for your project? A. If the budget is cut by 10%, then the project will have an accompanying degradation of quality by 10%. B. If the project budget is an honest one, then a reduction in budget must be accompanied by a trade-off in either time or performance. C. A 10% reduction in budget will be accompanied by a loss of performance much less than the target reduction in cost. D. Most projects have "padded" estimates, and the budgetary reduction will force out the padding from the project.
Initiating Answer: B. If the project budget is an honest one, then a reduction in budget must be accompanied by a trade-off in either time or performance. Reference: Project Management, A Systems Approach to Planning, Scheduling and Controlling by H. Kerzner, 10th edition, page 603, pmi.books24x7.com/viewer.asp?bkid=32027&destid=958#958.
What is not a reason for companies to organize lessons learned? A. Lessons learned databases are an essential element of the organizational process assets. B. Lessons learned should focus on identifying those accountable for errors and failures. C. Lessons learned sessions should bring about recommendations to improve future performance on projects. D. Phase-end lessons learned sessions provide a good team building exercise for project staff members.
Initiating Answer: B. Lessons learned should focus on identifying those accountable for errors and failures. Reference: PMBOK® Guide 4th Edition, page 429.
_______ is normally not a method of RoI (return on investment) analysis. A. Net present value projection B. Sunk cost analysis C. Simple payback calculation D. Internal rate of return
Initiating Answer: B. Sunk cost analysis Reference: The Project Management Tool Kit: 100 Tips and Techniques for Getting the Job Done Right by Tom Kendrick, pages 164-165, pmi.books24x7.com/viewer.asp?bkid=4546&destid=582&destid=583&term=Return+on +investment+analysis#582.
Following the cultural approach of the corporation for which you are starting to manage a project, you are guiding your project team through the first life-cycle phase of conceptualization. Your next step is to call for a team meeting to let ideas emerge in an unrestricted creative process. What exactly should that look like? A. You write down the ideas of team members and structure them into categories of strengths, weaknesses, opportunities and threats during the session. B. You creatively gather thoughts and ideas without any discussion or frowning. These ideas are only filtered and structured after the end of the brainstorming session. C. Your team members wear hats with different colors, each of which stands for a way of thinking. Each member discusses topics from the viewpoint of their thinking. D. You try to eradicate deviating ideas and concepts of team members during the meeting, so that the entire project team follows your principles.
Initiating Answer: B. You creatively gather thoughts and ideas without any discussion or frowning. These ideas are only filtered and structured after the end of the brainstorming session. Reference: Project Management, A Systems Approach to Planning, Scheduling and Controlling by H. Kerzner, 10th edition, page 418, pmi.books24x7.com/viewer.asp?bkid=32027&destid=635#635.
Which statement describes best handling of assumptions during the initiating processes? A. It is the responsibility of the sales person in charge to identify all risks related to a customer project. B. Managing and organizing assumptions means avoiding risks right from the start of the project. C. Organizational, environmental and external assumptions should be addressed by the project charter. D. Risks are a sign of uncertainty. Avoiding all uncertainties means that a project should have no risks at all.
Initiating Answer: C. Organizational, environmental and external assumptions should be addressed by the project charter. Reference: PMBOK® Guide 4th Edition, pages 77 and 78 (outputs of process Develop project charter).
You have recently been named as the manager of a new project under contract. The sponsor of the project gave you the contract signed by the customer and a statement of work. He asked you to go on with initiation. Which document should you develop next? A. Project management plan B. Milestone schedule C. Project charter D. Scope statement
Initiating Answer: C. Project charter References: PMBOK® Guide 4th Edition, pages 73, 78.
You have just taken over as manager of a project which will create many benefits for the performing organization, but you sense a high level of resistance in various stakeholders right from the start. What is the most appropriate action to resolve the problem? A. Develop a responsibility assignment matrix (RAM) which clearly shows the responsibility of each stakeholder for the various project activities and who needs to be consulted and informed. B. Develop an organization diagram, which places each of the stakeholders at an appropriate position inside the project and allows for certain lines of communication while disallowing others. C. Schedule a meeting with these stakeholders to present the project, discuss and establish ground rules, ensure their involvement and identify initial personal and organizational issues. D. Do not talk to these stakeholders too much at this time, instead create faits accomplis, which will later force the stakeholders to support the project due to a lack of alternatives for them.
Initiating Answer: C. Schedule a meeting with these stakeholders to present the project, discuss and establish ground rules, ensure their involvement and identify initial personal and organizational issues. References: PMBOK® Guide 4th Edition, pages 215 and 233 (9.2.3.4).
You are identifying key stakeholders for your project. Which of the following is not included in any case? A. Project manager and project team B. Customer and users C. Sponsor D. Media representatives
Initiating Answer: D. Media representatives Reference: PMBOK® Guide 4th Edition, page 25-27.
Your organization considers running a project which will entail an investment of $1,000,000. The product from the project is forecasted to create revenues of $250,000 in the first year after the end of the project and of $420,000 in each of the two following years. What is true for the net present value of the project over the three years cycle at a discount rate of 10%? A. The net present value is positive, which makes the project attractive. B. The net present value is positive, which makes the project unattractive. C. The net present value is negative, which makes the project attractive. D. The net present value is negative, which makes the project unattractive.
Initiating Answer: D. The net present value is negative, which makes the project unattractive. Reference: Project Management, A Systems Approach to Planning, Scheduling and Controlling by H. Kerzner, 10th edition, page 616, pmi.books24x7.com/viewer.asp?bkid=32027&destid=978#978:
What is the purpose of a project charter? A. To formally authorize a project or a phase and document initial requirements which satisfy the stakeholder's needs and expectations. B. To document how the project will be planned, executed, monitored/controlled, and closed. C. To link the project, which is going to be planned, executed, and monitored/controlled to the ongoing work of the organization. D. To describe the process of performing the work defined in the project management plan in order to achieve the project's objectives.
Initiating Answer: A. To formally authorize a project or a phase and document initial requirements which satisfy the stakeholder's needs and expectations. Reference: PMBOK® Guide 4th Edition, page 45.
Which Process Group do these processes belong to: Develop Project Charter Identify Stakeholders
Initiating Process Group
Name the 5 Process Groups
Initiating, Planning, Executing, Montitoring and Control, and Closing
30. Define Bureaucratic?
Input is solicited from selected team members, but PM still sole decision maker
List Inputs, tools & techniques and outputs for the Process of Develop Project Management Plan
Input: Project Charter, Outputs from other Planning Processes; Enterprise Environmental Factors; Organizational Process Assets Tools/Techniques: Expert Judgement Outputs: Project Management Plan
List Inputs, tools & techniques and outputs for the Process of Monitor and Control Project Work Process
Input: Project Management Plan (constant look back); Performance Reports (what level are we performing at - measure status against baseline for cost, time, scope & quality); Enterprise Environmental Factors; Organizational Process Assets Tools/Techniques: Expert Judgement Outputs: Change Request (main output); Project Management Plan Updates; Project Document Updates
List Inputs, tools & techniques and outputs for the Process of Direct and Manage Project Execution
Input: Project Management Plan; Approved Change Requests; Enterprise Environmental Factors; Organizational Process Assets Tools/Techniques: Expert Judgement & Project Management Information System(s) Outputs: Deliverables (product / result completed to complete project); Work Performance Information (status updates, quality audits); Change Requests; Project Management Plan Updates; Project Document Updates (updates to issues log, stakeholder register, etc)
List Inputs, tools & techniques and outputs for the Process of Close Project or Phase
Input: Project Management Plan; Organizational Process Assets (templates for close); Accepted Deliverables (must be approved) Tools/Techniques: Expert Judgement Outputs: Final Product Service or Result Transition; Organization Process Assets Updates (ALL documents updated & finalized & Lessons Learned). The project has a stop date & this moves it to an Operational Area or somewhere after close (doesn't stay w the project manager!)
List Inputs, tools & techniques and outputs for the Process of Integrated Change Control Process
Input: Project Management Plan; WOrk Performance Information; Change Requests; Enterprise Environmental Factors; Organizational Process Assets Tools/Techniques: Expert Judgement; Change Control Meetings (Change Control Board - manager has to review it and see who all it impacts - then they approve/deny) Outputs: Change Request Status Updates; Project Management Plan Updates; Project Document Updates
List Inputs, tools & techniques and outputs for the Process of Develop Project Charter
Input: Project Statement of Work; Business Case; Contract (if vendors); Enterprise Environmental Factors; Organizational Process Assets Tools/Techniques: Expert Judgement Outputs: Project Charter
ITTOS of Develop Human Resource Plan ?
Inputs: - Activity Resource Requirements - EEF OPA Outputs: - Human Resource Plan TT: POON
ITTOS of Estimate Activity Durations ?
Inputs: - Activity list - Activity attribute - Activity resource requirement - Project scope statement - Resource Calendar - OPA EEF Outputs: - Activity duration estimates - PD updates TT: APE TR
ITTOS of Integrated Change Control ?
Inputs: - PMP - Change request - Work Performance Information - OPA EEF Outputs: - Change Request status updates - PMP Updates - PD updates TT: - Expert Judgment - Change Control Meeting
ITTOS of Distribute Information ?
Inputs: - PMP - Performance Report - OPA Outputs: - OPA updates TT: - Communication methods - Information Distribution Tools
ITTOS of Close Procurement process ?
Inputs: - PMP - Procurement documentation Outputs: - Closed procurement - OPA updates TT: PNR
ITTOS of Administer Procurements process ?
Inputs: - PMP - Procurement documents - Contract - Work Performance Information - Performance Report - Approved Change Requests Outputs: - Procurement documentation - Change Request - OPA updates - PMP updates TT: CRIP PPC
ITTOS of Conduct Procurement ?
Inputs: - PMP - Procurement documents - Source selection criteria - Make or buy decision - Teaming agreement - Qualified seller list - Seller proposal - OPA Outputs: - Selected sellers - Procurement contract award - Resource calendars - Change request - PMP PD updates TT: APE BP II
ITTOS of Verify Scope
Inputs: - PMP - Requirements Documentation - Requirement Traceability Matrix - Validated Deliverables Outputs: - Accepted Deliverables - Change Requests - PD updates TT: Inspection
ITTOS of Control Scope ?
Inputs: - PMP - Requirements Documentation - Requirement Traceability Matrix - Work Performance Information - OPA Outputs: - Work Performance Measurements - Change Requests - PMP PD updates TT: Variance Analysis
ITTOS of Control Cost process ?
Inputs: - PMP - Work Performance Information - Cost Funding Requirements - OPA Outputs: - Change request - Budget Forecast - Work Performance Measurements - PMP updates - OPA updates - PD updates TT:PVP EFT
ITTOS of Report Performance ?
Inputs: - PMP - Work Performance Information (from Direct&Manage Prj Exe) - Work Performance Measurement (from Control/Scope/Schedule/Cost) - Budget Forecasts - OPA Outputs: - Performance Report - Change requests - OPA updates TT: - Variance analysis - Forecasting methods - Communication methods - Reporting systems
ITTOS of Acquire Project Team ?
Inputs: - PMP (HR plan) - OPA EEF Outputs: - Project Staff assignment - Resource calendar - PMP updates TT: PravNAV
ITTOS of Manage Project Team ?
Inputs: - PMP (HR plan) - Project Staff Assignments - Team performance assessments - Performance report - OPA Outputs: - Change requests - OPA EEF PMP updates TT: OCPII
ITTOS of Perform Quality Assurance ?
Inputs: - PMP (Quality MP, Process Improvement Plan) - Quality Metrics - Work Performance Information - Quality Control measurements (f. Perform Quality Control) Outputs: - Change requests - OPA PMP PD updates TT: PPPQ
ITTOS of Perform Quality Control ?
Inputs: - PMP (Quality Plan) - Quality metrics - Quality checklists - Work Performance Measurements (from Control Cost/Schedule/Cost) - Approved change requests (Perform ICC) - Delivrables (Direct and Manage Project Execution) - OPA Outputs: - Quality Control Measurements - Validated Changes - Validated Deliverables (to Verify Scope) - Change request - PMP PD OPA updates TT: CCFRHPS SIA
ITTOS of Develop Project Management Plan
Inputs: - Project Charter - Output from Planning Processes - EEF OPA Outputs: - Project Management Plan TT: EJ
ITTOS of Identify Stakeholder
Inputs: - Project Charter - Procurement documents - OPA EEF Outputs: - Stakeholder Register - Stakeholder Management Strategy TT: - Stakeholder Analysis - EJ
ITTOS of Define Scope
Inputs: - Project Charter - Requirements Documentation - OPA Outputs; - Project scope statement - PD updates TT: APEF
ITTOS of Collect Requirements ?
Inputs: - Project Charter - Stakeholders register Outputs: - Requirements documentation (why + how to validate) - Requirement Management Plan (how to manage) - Requirement traceability matrix (where) TT: F FIGO GPQ
ITTOS of Direct and Manage Project Execution
Inputs: - Project Management Plan - Approved Change Request - OPA EEF Outputs: - Delivrables - Work Performance Information - Change Request - PMP updates - PD updates TT: - Expert Judgment - Information Systems
ITTOS of Monitor and Control Project Work process ?
Inputs: - Project Management Plan - Performance Report - OPA EEF Outputs: - Change Requests - PMP updates - PD updates TT: - Expert Judgment
ITTOS of Control Scope ?
Inputs: - Project Schedule - Schedule Baseline - Work Performance Information - OPA Outputs: - Work Performance Measurements - Change Requests - PMP PD updates - OPA updates TT: PVPR WLoSS
ITTOS of Develop Schedule ?
Inputs: - Project Scope Statement - Resources Calendar - OPA EEF - Activity List - Activity Attributes - Project Schedule Network Diagram - Activity Resource Requirement - Activity Duration Estimate Outputs: - Project Schedule - Schedule Data - Schedule baseline - PD updates TT: SCReWLoSS
ITTOS of Develop Project Charter
Inputs: - Project Statement of Work - Business Case - Contract - EEF OPA Outputs: - Project Charter TT: EJ
ITTOS of Create WBS
Inputs: - Project scope statement - Requirements documentation - OPA Outputs: - WBS - WBS directory - Scope baseline - PD updates TT: Decomposition
ITTOS of Plan Risk Management ?
Inputs: - Project scope statement (fr. Define Scope) - Cost Management Plan - Schedule Management Plan - Communication Management Plan (fr. Plan Communication) - OPA EEF Outputs: - Risk Management Plan TT: Planning meetings and analysis
ITTOS of Develop Project Team ?
Inputs: - Project staff assignment - Resource calendars - PMP Outputs: - Team performance assessments - EEF updates TT: TRIG TC
ITTOS of Plan Procurement ?
Inputs: - Requirement documentation - Scope baseline - Activity Resource Requirement - Project Schedule - Activity Cost Estimates - Cost Performance Baseline - Risk Register - Risk-related contract decisions - Teaming agreement - OPA EEF Outputs: - Procurement Management Plan - Procurement Documents - Make or buy decisions - Procurement Statement of Work - Source selection criteria - Change request TT: MEC
ITTOS of Identify Risks ?
Inputs: - Risk Management Plan (fr. Plan Risk Management) - Activity cost estimates (fr. Estimate Cost) - Activity duration estimates (fr. Estimate Activity Duration) - Scope baseline (fr. create WBS) - Stakeholder register (fr. Identify Stakeholder) - Cost&Schedule MP - Quality Management Plan (fr. Plan Quality) - PD OPA EEF Outputs: - Risk Register (to Estimate Costs, Plan Quality & Plan Procurements) TT: DICE ADS
ITTOS of Perform Quantitative Risk Analysis ?
Inputs: - Risk Register - Risk MP - Cost MP - Schedule MP - OPA Outputs: - Risk Register updates (loop to Identify Risk) TT:DQE
ITTOS of Perform Qualitative Risk Analysis
Inputs: - Risk Register (fr. Identify Risk) - Risk Management Plan (fr. Plan Risk Management) - Project scope statement (fr. Define Scope) - OPA Outputs; - Risk register updates (loop to Identify Risks) TT: R4PE
ITTOS of Monitor and Control Risks ?
Inputs: - Risk register - PMP - Work Performance Information (fr. Direct and Manage Project Execution) - Performance Report (fr. Report Performance) Outputs: - Risk register updates - Change Request (to Perform ICC) - OPA PMP PD updates TT: R3 VeST
ITTOS of Plan Risk Responses ?
Inputs: - Risk register - Risk MP Outputs: - Risk register updates - Risk-related contract decisions (to Plan Procurements) - PMP updates - PD updates TT: CSS E
ITTOS of Define Activities
Inputs: - Scope baseline - OPA EEF Outputs: - Activity list - Activity attributes - Milestone list TT: DERT
ITTOS of Determine Budget process ?
Inputs: - Scope baseline - Project schedule - Resource calendars - Contracts - OPA - Activity cost estimates - Basis of estimates Outputs: - Cost performance baseline - Project funding requirements - PD updates TT: CHEF R
ITTOS of Plan Quality ?
Inputs: - Scope baseline - Stakeholder register - Cost performance baseline - Schedule baseline - Risk register - OPA EEF Outputs: - Quality Management Plan - Process Improvement Plan - Quality metrics - Quality checklists - PD updates TT: CCCB SPADF
ITTOS of Plan Communication ?
Inputs: - Stakeholder Register - Stakeholder Management Strategy - OPA EEF Outputs: - Communication management plan - PD updates TT: 4C
ITTOS of Manage Stakeholders Expectation ?
Inputs: - Stakeholder register - Stakeholder Management Strategy - PMP - Issue log - Change log - OPA Outputs: - OPA updates - Change requests - PMP PD updates TT: - Communication methods - Interpersonal skills - Management skills
What are the ittos for Determine Budget?
Inputs: Activity Cost Estimates, Basis of Est., Scope Baseline, Project Schedule, Resource Calendars, Contracts, Organizational Process Assets. TT: Cost Aggregation, Reserve Analysis, Historical Relationships, Funding limit Reconciliation, Expert Judgement Outputs: Cost Performance Baseline, Project Funding Requirements, Project Document Updates
8. What is last step in project closing?
Last step in project closing is gather lessons learned and archive project info (Organization Process Assets updates) for future use
What is Project Staff Assignment ?
List of Whom is fulfilling What project roles
21. Who developed Theory X and theory Y
Mcgregor
29. What process contains identifying, analyzing, and planning for newly arising risks and keeping track of identified risks, residual(after) risk and secondary(while) risks?
Monitor and Control Risks
You are assigned as a project manager for an internal project. During cost planning and budgeting you discovered that there are peak times of costs during the project and other times when costs are fairly low. What could this mean for the project? A. The fiscal budget mechanism which is used by the performing organization may not allow for cost peaks in your project, and you may have to level out expenditures over time. B. You can silently create budget contingencies during low-cost periods and re- use them later during those periods when you have to cover peak levels in project costs. C. You may find another project manager with a project that has a different rhythm of high and low costs. Then, you may be able to move budget during one project's low cost periods to the other project. D. You are a project manager and work with a lifecycle budget for your project. Fiscal budgets are a matter of the functional organization, and you have generally not to care about them.
Monitoring and controlling Answer: A. The fiscal budget mechanism which is used by the performing organization may not allow for cost peaks in your project, and you may have to level out expenditures over time. Reference: PMBOK® Guide 4th Edition, page 178 ("Funding limit reconciliation...").
The sales representative of your company recently contacted you. You made some estimates on direct costs for an offer on a firm fixed-price contract. According to company policies, indirect costs (overheads) are to be calculated as a percentage of the direct costs, the sum of both cost types caused him to calculate a far too high price. How should you not react? A. You reduce your direct cost estimates by reducing the amount of work and the rates allocated to them. This allows a reduction of the overhead costs and a lower price. B. Calculating overheads as a percentage of direct costs is just a model to simplify calculations. A more specific analysis of these costs may lead to a more realistic project price. C. Cost estimates are quantitative assessments of the probable costs required to complete project work. These are made by the project team. It is the sales person's job to make the price. D. You make the sales person aware that a reduction of direct costs may reduce the numbers for overhead cost allocation, but will not influence the actual overheads.
Monitoring and controlling Answer: A. You reduce your direct cost estimates by reducing the amount of work and the rates allocated to them. This allows a reduction of the overhead costs and a lower price. References: PMBOK® Guide 4th Edition, pages 169, 174.
For a project, the following earned value data have been assessed: AC: $4,000,000 CV: $-500,000 SPI: 1.12 BaC: $9,650,000 What is the earned value of the project? A. $3,000,000 B. $3,500,000 C. $4,480,000 D. $5,650,000
Monitoring and controlling Answer: B. $3,500,000 Reference: PMBOK® Guide 4th Edition, pages 181-183.
Together with your team, you applied three-point estimation on a critical path which consists of two activities. The following duration uncertainties are all calculated assuming a ±3sigma confidence interval. The duration uncertainty—defined as pessimistic minus optimistic estimate—of the first activity is 18 days; the second estimate has an uncertainty of 24 days. Applying the PERT formula for paths, what is the duration uncertainty of the entire path? A. 21 days B. 30 days C. 42 days D. No statement is possible from the information given.
Monitoring and controlling Answer: B. 30 days References: Project Management JumpStart by Kim Heldman, page 171, pmi.books24x7.com/viewer.asp?bkid=10556&destid=398&destid=389&destid=389&ter m=standard+deviation+in#398; Project Management: A Systems Approach to Planning, Scheduling, and Controlling by H. Kerzner, 10th Edition, page 513, pmi.books24x7.com/viewer.asp?bkid=32027&destid=788#788.
You are running a project which was budgeted based on some rough order of magnitude (ROM) estimates with a precision of -50% /+100%. Meanwhile, with new estimates made on detail level and some work already finished, you found out that these estimates were consistently too low and the budget will not be sufficient to successfully run and finish the project. What should you do? A. You shouldn't worry too much, It is quite normal that early estimates are too optimistic, later estimates are too pessimistic and the project costs will finally settle somewhere in between. So relax! B. Bring the issue to your sponsor and discuss how this should be handled. Together with the sponsor adhere to the guidelines which describe how budgets will be reviewed and refined. C. Try to reduce scope or quality in areas where it cannot create difficulties for you and the team. Finally, it is not your responsibility that an insufficient budget has been created for the project. D. Find a contractor who can run the project for you. Set the budget as a price limit during the bidding process and accept only firm fixed price (FFP) offers which do not exceed this price.
Monitoring and controlling Answer: B. Bring the issue to your sponsor and discuss how this should be handled. Together with the sponsor adhere to the guidelines which describe how budgets will be reviewed and refined. Reference: PMBOK® Guide 4th Edition, page 168.
Which statement on constructive changes is false? A. Constructive changes are contract changes which are construed from actions taken by either party, not from a change document. B. Changes in projects under contract are called Constructive changes if they yield benefits for both parties. C. Constructive changes are a frequent cause of disputes and claims of one contract party against the other. D. Field changes should be meticulously documented to avoid an interpretation as constructive change.
Monitoring and controlling Answer: B. Changes in projects under contract are called Constructive changes if they yield benefits for both parties. Reference: PMBOK® Guide 4th Edition, page 341.
You need a batch of 100 identical valves which will be custom made for your project to build a food processing plant. There is a risk of deterioration of victuals during processing; therefore you placed requirements on the quality of the raw materials for the valves, which will make production very costly. Unfortunately, in order to test the valves against these requirements, you would have to destroy them. And you have no experience with the vendors at all. What should you do? A. Do 0% inspection. You have to trust the selected supplier that they will use the materials according to your specification. B. Negotiate a contract over more than 100 items and perform acceptance sampling for the surplus of the batch on delivery. C. Require the seller to supply the valves together with appropriate certificates from their raw materials suppliers. D. Do 100% inspection on delivery to your premises, then order another batch of 100 valves.
Monitoring and controlling Answer: B. Negotiate a contract over more than 100 items and perform acceptance sampling for the surplus of the batch on deliv Reference: Project Management, A Systems Approach to Planning, Scheduling and Controlling by H. Kerzner, 10th edition, page 912, pmi.books24x7.com/viewer.asp?bkid=32027&destid=1479#1479.
In configuration management, which of the following is necessary to maintain the integrity of baselines? A. Analyzing variances by comparing baseline information with actual project data. B. Releasing only approved changes for incorporation into products or services. C. Ensuring that team members adhere to a code of ethical conduct and behavior. D. Ensuring transparency across all project management processes and activities.
Monitoring and controlling Answer: B. Releasing only approved changes for incorporation into products or services. Reference: PMBOK® Guide 4th Edition, page 93.
Being the project manager in a high-risk electronics project with a lot of new technologies, you developed a risk management plan and identified risks which you documented in a risk register. Then, the risks were analyzed and response planned. It is getting obvious during risk monitoring and control meetings that the documents you created are not very helpful. What have you probably done wrong? A. You failed to use an RBS. B. You did the first processes alone. C. You did not identify Triggers. D. You did not calculate EMVs.
Monitoring and controlling Answer: B. You did the first processes alone. References: PMBOK® Guide 4th Edition, page 279, 282.
A project was budgeted at $1,000,000. Meanwhile, the project is executed, and the following current figures have been assessed: PV: $500,000 EV: $450,000 AC: $550,000 Assuming that the cost variance was caused by one-time cost drivers, which are no more effective, what estimate at completion (EaC) can you derive from these figures? A. $900,000 B. $1,000,000 C. $1,100,000 D. $1,222,222
Monitoring and controlling Answer: C. $1,100,000 Reference: PMBOK® Guide 4th Edition, page 184 ("EAC forecast for ETC work performed at the budgeted rate").
Which statement is false? Progressive elaboration of project scope... A. ...is a characteristic of projects that accompanies the concepts of temporary and unique. B. ... means developing in steps. It not should be confused with scope creep. C. ...signals a weak spot in the scope definition process, caused by incomplete contracts and specifications. D. ...when properly managed, integrates elaboration of project and deliverable specifications.
Monitoring and controlling Answer: C. ...signals a weak spot in the scope definition process, caused by incomplete contracts and specifications. Reference: PMBOK® Guide 4th Edition, page 7.
Processes of configuration management commonly include all of the following except: A. Configuration identification B. Configuration status accounting C. Configuration chartering D. Configuration audit
Monitoring and controlling Answer: C. Configuration chartering References: PMBOK® Guide, 4th Edition, page 95, Practice Standard for Project Configuration Management (https://drm.pmi.org/Default.aspx?doc=Practice_Standard_Project_Configuration_Management.pdf&r=http://www.pmi.org/PMBOK-Guide-and-Standards/Standards-Library-of-PMI-Global-Standards.aspx)
You are running a project to engineer and implement a set of business processes and a software solution for customer relationship management. The project involves a big number of performing organizations―a major corporation and many suppliers of different sizes. During the project you observed a restraining effect of differences between the companies' corporate cultures. This leads to different expectations on how such a project should be handled and to frequent misunderstandings between stakeholders. Another effect is a growing degree of distrust and skepticism. What should you try first to integrate the diverse stakeholder groups? A. Focus on project work. As a project manager you should not get distracted by big egos. B. Let the problems grow further until they are obvious for all. Then escalate them. C. Develop a joint quality policy for the project and seek commitment by all organizations. D. Analyze probability and impact of the risks linked with the situation and plan how to respond to them.
Monitoring and controlling Answer: C. Develop a joint quality policy for the project and seek commitment by all organizations. Reference: PMBOK® Guide 4th Edition, page 194 (last paragraph).
What should managers consider before conducting a performance-evaluation interview with a project team member? A. Which management fallacies can most easily be delegated to the worker? B. How can discussion of the manager's leadership style be avoided? C. Has the employee been provided with sufficient instructions and work tools? D. How can dispute related to unsatisfactory performance be avoided?
Monitoring and controlling Answer: C. Has the employee been provided with sufficient instructions and work tools? References: PMBOK® Guide 4th Edition, page 417; Diane Arthur, Successful Interviewing, page 154, pmi.books24x7.com/viewer.asp?bookid=1874&chunkid=0719493349&rowid=322.
What is true for the process of scope verification? A. Insufficient documentation is not a reason to reject deliverables, as long as in all other respects they are built according to specifications agreed upon. B. The project team members must achieve acceptance of the deliverables. This process is coordinated and documented by the project management team. C. It is the project management team's responsibility to obtain stakeholder's formal acceptance of the completed project scope and deliverables. D. Formal acceptance will finally reconcile all inconsistencies among deliverables and documents that where caused by bad change control and scope creep.
Monitoring and controlling Answer: C. It is the project management team's responsibility to obtain stakeholder's formal acceptance of the completed project scope and deliverables. Reference: PMBOK® Guide 4th Edition, page 130.
You are performing integrated change control. Which of the following will not be part of what you do? A. Reviewing and approving change requests B. Maintaining the integrity of baselines C. Performing milestone trend analysis (MTA) D. Documenting the allover impact of requested changes
Monitoring and controlling Answer: C. Performing milestone trend analysis (MTA) Reference: PMBOK® Guide 4th Edition, page 93.
You created a baseline of your system configuration and added several changes to that as amendments. Meanwhile you are afraid that the big number of Deltas may cause inconsistencies and make you unable to understand the current system configuration. What should you do? A. Proclaim a design freeze. B. Go on with amendments. C. Revise the baseline. D. Create an entirely new configuration.
Monitoring and controlling Answer: C. Revise the baseline. Reference: PMBOK® Guide 4th Edition, page 93.
Your project had a cost overrun in the past and you tried to obtain funding on top of the original budget at completion (BAC). Management has told you that they cannot make additional funding available. You have to increase cost performance so that the project will be finished with costs not exceeding the original BAC. Which metric describes the future performance to meet this objective? A. TCPI calculated as BAC / CPI B. TCPI calculated as (BAC-EV) / (EAC - AC) C. TCPI calculated as (BAC-EV) / (BAC-AC) D. TCPI cannot be calculated in this situation.
Monitoring and controlling Answer: C. TCPI calculated as (BAC-EV) / (BAC-AC) Reference: PMBOK® Guide 4th Edition, page 185-186.
You monitored figures on cost and planned/earned value for each individual project week until the data date at the end of the sixth week. What is the status of this project at this date? Prj week - Actual Costs - Earned Value - Planned Value 1 - $65,000 - $61,000 - $67,000 2 - $85,000 - $79,000 - $89,000 3 - $100,000 - $102,000 - $110,000 4 - $125,000 - $124,000 - $121,000 5 - $135,000 - $133,000 - $139,000 6 - $125,000 - $120,000 - $131,000 A. The project is ahead of schedule and over budget. B. The project is ahead of schedule and under budget. C. The project is behind schedule and over budget. D. The project is behind schedule and under budget.
Monitoring and controlling Answer: C. The project is behind schedule and over budget. Reference: PMBOK® Guide 4th Edition, pages 181-187. Project week 1 2 3 4 5 6 At data date SV = EV - CV = EV - Actual costs $65,000 $85,000 $100,000 $125,000 $135,000 $125,000 $635,000 Earned value $61,000 $79,000 $102,000 $124,000 $133,000 $120,000 $619,000 Planned value $67,000 $89,000 $110,000 $121,000 $139,000 $131,000 $657,000 PV = -$38,000 (behind schedule) AC = -$16,000 (over budget)
You are project manager for a strategic project with a multi-million dollars value assigned by a company that is listed at a US stock exchange. Recent earned value analysis after app. 25% completion told you that your project has a CPI of 0.76. What should you do right now? A. The variance is a signal of a sound project which is well under budget. There is no need for action. B. A project that much under budget may be a problem for negotiating future budgets. Try to spend money somewhere else. C. You should immediately inform your management, which should then assess whether this CPI constitutes a material financial issue. D. It is still early in the project and data are yet inaccurate. Wait a while and allow numbers from the project to stabilize.
Monitoring and controlling Answer: C. You should immediately inform your management, which should then assess whether this CPI constitutes a material financial issue. Reference: Earned Value Project Management by Quentin W. Fleming and Joel M. Koppelman, Third Edition, page 183, pmi.books24x7.com/viewer.asp?bookid=13236&chunkid=0240496937&rowid=409.
Your project exceeded costs in the past caused by an underestimation of resource costs in the cost baseline: PV: $1,200,000, EV: $1,000,000, AC: $1,200,000 You expect the underestimation to influence the future as much as it did in the past. If the value of the remaining work (BAC - EV) is at $1,000,000, what should be your new EAC (estimate at completion)? A. $1,800,000 B. $2,000,000 C. $2,200,000 D. $2,400,000
Monitoring and controlling Answer: D. $2,400,000 Reference: PMBOK® Guide 4th Edition, page 185 ("EAC forecast for ETC work considering both SPI and CPI factors").
What is the purpose of control limits? A. Identifying "rule of seven" patterns in control charts. B. Increasing process quality from 3σ to 6σ. C. Specifying the range of acceptable results. D. Identifying whether the process is in control or not.
Monitoring and controlling Answer: D. Identifying whether the process is in control or not. Reference: PMBOK® Guide, 4th Edition, page 206.
A review of your project team member's most recent performance reports shows a major drop in output. Which is the best approach to raise team productivity in a project? A. Increase the frequency of team review meetings and status reports. B. Increase the pressure on each team member to adhere to deadlines. C. Post a special reward for the best performing team member. D. Improve feelings of trust and cohesiveness among team members.
Monitoring and controlling Answer: D. Improve feelings of trust and cohesiveness among team members. Reference: PMBOK® Guide 4th Edition, pages 229-230.
What are the cost types in modern quality management? A. Costs of good quality - costs of bad quality B. Planning costs - assurance costs - control costs C. Planning costs - doing costs - checking costs - acting costs D. Prevention costs - appraisal costs - failure costs
Monitoring and controlling Answer: D. Prevention costs - appraisal costs - failure costs Reference: PMBOK® Guide 4th Edition, page 195 (figure 8-4).
You are running a project to develop the production process for a future electronic component. Evaluating some first test batches, you found out that the precision is generally very good, but that you have some irregular outliers in a completely unpredictable pattern. What should you do? A. Ignore the outliers; they are not relevant as long as the yield from the production is sufficiently high. B. Try to increase the accuracy of the process by adjustments, thus reducing the number of outliers. C. Inform the designated production manager of your observations and ask him to take care after handover. D. Research outliers, they may give you important insights into problems which may trouble later production.
Monitoring and controlling Answer: D. Research outliers, they may give you important insights into problems which may trouble later production. Reference: Managing Project Quality by Timothy J. Kloppenborg and Joseph A. Petrick, page 70, pmi.books24x7.com/viewer.asp?bkid=6206&destid=185&destid=182&term=statistical+ quality+control+charts#184.
Which of the following documents is not used as input for the verify scope process? A. The project management plan, containing the scope baseline consisting of the project scope statement and its associated WBS and WBS dictionary. B. The validated deliverables, completed and checked for correctness by the Perform quality control process. C. The requirements traceability matrix, linking requirements to their origin and tracing them throughout the project lifecycle. D. The RACI matrix, describing accountabilities in case of product rejection.
Monitoring and controlling Answer: D. The RACI matrix, describing accountabilities in case of product rejection. Reference: PMBOK® Guide 4th Edition, page 123.
Present Value Formula
PV=FV/(1+r)^n
TT of Control Cost process ?
PVP EFT - Project Management Software - Variance Analysis - Performance review - Earned Value Management (EVM) - Forecasting - To-complete Performance index (TCPI)
TT of Control Scope
PVPR WLoSS - Performance Review - Variance Analysis - Project Management Software - Resource Leveling - What-if Analysis - Adjusting Leads and Lags - Schedule Compression - Scheduling Tools
You are in the process of planning a project and found that stakeholders often have varying objectives and requirements. This makes it hard to come up with a plan with which all objectives will be met. What is probably most helpful to ensure common understanding? A. Ask the project stakeholders to build focus groups in order to discuss and remedy conflicting interests. B. Create an exhaustive document describing your point of view and ask stakeholders to review it. C. Let each stakeholder write a statement of work, merge the documents to a project scope statement. D. Use your authorization as the project manager to clearly prioritize the different objectives.
Planning Answer: A. Ask the project stakeholders to build focus groups in order to discuss and remedy conflicting interests. Reference: PMBOK® Guide 4th Edition, page 24.
What is typical for critical chain project management? A. Management of buffers B. Management of total floats and free floats C. Management of leads and lags D. Management of resource over-allocations
Planning Answer: A. Management of buffers Reference: PMBOK® Guide 4th Edition, page 155.
Product acceptance criteria should be laid down in which document? A. Project scope statement B. Work breakdown structure C. Resource assignments D. Project scope management plan
Planning Answer: A. Project scope statement Reference: PMBOK® Guide 4th Edition, page 115.
You are using a phase gate approach for your project. What do you need to consider? A. The order of phases must be strictly consecutive without overlapping in order to allow for gates. B. Gates are often called kill points, when they are used to eliminate weak team members. C. Phase gates are often used to verify entry criteria of a previous phase and exit criteria of the next one. D. Approaching phase gates early is a common signal that project planning has been poor.
Planning Answer: A. The order of phases must be strictly consecutive without overlapping in order to allow for gates. Reference: PMBOK® Guide 4th Edition, page 19 (first paragraph).
A WBS dictionary is a document which... A. ... describes technical terms used for scope management. B. ... describes the details for each component in the WBS. C. ... translates essential WBS terms for global project teams. D. ... helps translate functional into technical requirements.
Planning Answer: B. ... describes the details for each component in the WBS. Reference: PMBOK® Guide 4th Edition, page 453.
You took over a customer project for your company. From the inputs available, including contract, statement of work and project charter, you have developed a project management plan. You already presented that plan in a meeting with key stakeholders including your project sponsor and some representatives from the customer organization. During the meeting you sensed a high level of dissatisfaction by the customer executives, who signalled that the project might not produce the results that their company had expected. In your understanding, all necessary actions have been planned to meet the customer's requirements. What should you do next? A. Request a written statement from the customer detailing the requirements which they believe are not addressed by your plan. Use this statement to update the project plan. B. Arrange meetings with the customer to identify their needs, wants and expectations for the project. Then create a narrative Scope statement from this information to document the agreed upon project scope. C. Request a formal meeting on top executive level to get the misunderstandings sorted out, then arrange a change request, re-plan your project where necessary and go ahead with the project work. D. Do not over-react. Performed according to your plan, the project will produce a convincing product for the customer. As soon as the executives will see it, they will probably change their opinion and accept it.
Planning Answer: B. Arrange meetings with the customer to identify their needs, wants and expectations for the project. Then create a narrative Scope statement from this information to document the agreed upon project scope. Reference: PMBOK® Guide 4th Edition, page 112.
The use of scarce resources must be decided upon with functional managers before it causes delays in your project. Which is probably your most important skill right now? A. Planning B. Negotiating C. Facilitating D. Documenting
Planning Answer: B. Negotiating Reference: PMBOK® Guide 4th Edition, page 421.
You are defining evaluation criteria for your project. The procurement item is readily available from a number of acceptable sellers. Which criterion can you focus on in such a situation? A. Seller's management approach B. Price offered by the seller C. Seller's financial capacity D. Understanding of your need
Planning Answer: B. Price offered by the seller Reference: PMBOK® Guide 4th Edition, page 327.
During risk identification sessions, you and your team identified more than 150 risks for your project. You are afraid that evaluating each of these risks quantitatively will cost you an enormous amount of time, while not all of them are really relevant and important enough to justify such a measure. What should you do next? A. Identify risk triggers where possible. Analyze only those risks quantitatively for which no trigger could be found. B. Use qualitative risk analysis in order to prioritize risks for further action, such as quantitative risk analysis. C. Assess the probability of each risk qualitatively and further analyze only those risks with high probability. D. Assess the potential impact of each risk qualitatively and further analyze only those risks with high impact.
Planning Answer: B. Use qualitative risk analysis in order to prioritize risks for further action, such as quantitative risk analysis. Reference: PMBOK® Guide 4th Edition, page 289.
While planning a project, you are defining activities. Which of the following is not a result of that process? A. Activity list B. Work breakdown structure C. Activity attributes D. Milestone list
Planning Answer: B. Work breakdown structure Reference: PMBOK® Guide 4th Edition, page 133.
You scheduled a kick-off meeting in order to announce the start of your project, present the plan and develop consensus on it. Another topic will be explanation of each team member's role. In addition, you planned some time for discussions. You published the agenda of the kick-off meeting some weeks ago to all invited attendees. Now, short term before the event, you receive various cancellations by team members, who say that they cannot join the meeting. But they will be with you when project work will start. A. The kick-off meeting is secondary, you are happy if the team members will do their jobs. B. You should insist on the presence of the team members to the appointed date. C. If you force team members' presence, they would anyway be distracted by their current problems. D. It is probably a good idea to reschedule the meeting to a day, when all team members can attend.
Planning Answer: B. You should insist on the presence of the team members to the appointed date. Reference: Management JumpStart by Kim Heldman, page 78, pmi.books24x7.com/viewer.asp?bookid=10556&chunkid=113181901.
How should change management be planned for? A. Changes are generally not predictable, therefore planning for change management cannot be reasonable. B. Planning for change management should be done while the various change control processes are being applied. C. Change management can be planned in a set of management plans or a specific change management plan. D. Changes are a sign of bad planning. One should avoid changes during a project, thus eliminating the need to manage them.
Planning Answer: C. Change management can be planned in a set of management plans or a specific change management plan. Reference: PMBOK® Guide 4th Edition, page 93.
You recently took over the assignment for a project. The project charter has been developed. What is an appropriate next step for you? A. Develop the risk register. B. Develop the project milestone schedule. C. Develop management plans. D. Get approval for the project management plan.
Planning Answer: C. Develop management plans. Reference: PMBOK® Guide 4th Edition, page 77.
What is not true for project deliverables? A. Project deliverables should be identified, described and agreed upon as early in the project as possible. B. Project deliverables may be products, capabilities for services or other kinds of results. C. Once project deliverables have been identified, their description should not be changed any more. D. The acceptance process for deliverables and how rejection will be addressed should be described in the contract.
Planning Answer: C. Once project deliverables have been identified, their description should not be changed any more. References: PMBOK® Guide 4th Edition, pages 87, 109.
In general, processes of configuration management do not include... A. ...identification and documentation of system or item characteristics. B. ...controlling changes to these characteristics in an integrative fashion. C. ...documenting and auditing changes and the implementation status. D. ...assigning responsibilities for change control and documentation.
Planning Answer: D. ...assigning responsibilities for change control and documentation. Reference: PMBOK® Guide 4th Edition, page 429.
A facilitator should... A. ...be in full control of the discussion and its outcomes. B. ...always take notes by herself. C. ...avoid a flip chart parking lot. D. ...give guidance as required without interfering.
Planning Answer: D. ...give guidance as required without interfering. Reference: Project Management, A Systems Approach to Planning, Scheduling and Controlling by H. Kerzner, 10th edition, page 240, 3rd bullet in the list of communication styles, pmi.books24x7.com/viewer.asp?bkid=32027&destid=368#368.
The cost baseline is developed during which process? A. Perform integrated change control B. Estimate costs C. Develop schedule D. Determine budget
Planning Answer: D. Determine budget Reference: PMBOK® Guide 4th Edition, page 178.
Which of the following is generally not regarded as an element of active listening? A. Making eye contact B. Paraphrasing C. Interpreting the information D. Interrupting when appropriate
Planning Answer: D. Interrupting when appropriate Reference: Project Management JumpStart by Kim Heldman, page 47, pmi.books24x7.com/viewer.asp?bookid=10556&chunkid=0419956291&rowid=113.
Your organization has the choice between several internal projects it could run. In order to select projects, the organization assessed their strategic importance, investment requirements, and expected cash inflow from the projects' products, services and results. What should the organization assess in addition? A. The probability of changes to strategic goals. B. The frequency of changes to strategic goals. C. The assessments done should be sufficient. D. The probability of the expected cash inflows.
Planning Answer: D. The probability of the expected cash inflows. Reference: Project Management, A Systems Approach to Planning, Scheduling and Controlling by H. Kerzner, 10th edition, page 618, pmi.books24x7.com/viewer.asp?bkid=32027&destid=989#989.
Which of the following is not a forecasting method? A. Scenario building B. Regression analysis C. Time series method D. Variance analysis
Planning Answer: D. Variance analysis Reference: PMBOK® Guide, 4th Edition, page 269.
When should the project schedule be developed? A. As early into the project as possible. A committed schedule should be there before any initiating or planning processes are applied for the project. B. During initiating. The definite project schedule should be developed concurrently with the project contract (if applicable) and the project charter. C. Scheduling should be avoided. Agile approaches with a backlog and a weekly to 4-weekly meeting cycle are sufficient for modern project management. D. When most planning processes from time, scope, and procurement management have been finished. These will then be iterated when necessary.
Planning Answer: D. When most planning processes from time, scope, and procurement management have been finished. These will then be iterated when necessary. Reference: PMBOK® Guide, 4th Edition, page 153.
Which document is developed along the risk management processes from identify risks through plan risk responses to monitor and control risks? A. List of risk triggers B. Risk register C. Risk mitigation D. Decision tree
Planning Answer: B. Risk register References: PMBOK® Guide 4th Edition, page 54, 55, and 63.
The communications management plan is a document which includes descriptions of A. Project level performance reports B. Activity level status reports C. Stakeholder communication requirements D. Responsibility assignments
Planning Answer: C. Stakeholder communication requirements Reference: PMBOK® Guide 4th Ed. Page 257
What is not a major benefit of co-locating team members from different cultures in one place instead of having a team dispersed over many countries? A. Short distance to the customer markets B. Reduced burden from travelling and international meetings C. Enhanced communications and a sense of community D. Identical working hours without time zone difference
Professional and social responsibility Answer: A. Short distance to the customer markets Reference: PMBOK® Guide 4th Edition, page 232
As a project manager you can assign any one of two team members to a highly coveted task. Both are equally capable, but one of them is a member of your in- group. To the other one, you have far more distance. How should you behave? A. You disclose the situation to stakeholders and solicit a joint decision. B. You take the person not in your in-group to avoid misunderstandings. C. Chose the in-group person. The trustful relation will benefit the project. D. You delegate the decision to a third team member to avoid the conflict.
Professional and social responsibility Answer: A. You disclose the situation to stakeholders and solicit a joint decision. Reference: PMI Code of Ethics and Professional Conduct, page 4 (www.pmi.org/About- Us/Ethics/~/media/PDF/Ethics/ap_pmicodeofethics.ashx).
Your management announced that they want to put you on a stretch assignment. In this situation, you should consider that... A. ...a stretch assignment is going beyond your qualifications right from the start. Whatever your education, knowledge and skills are, you cannot fail personally. Congratulations. B. ...key stakeholders must have timely and complete information regarding your qualifications to make decisions regarding your suitability for the assignment. C. ...stretch assignments bear an increased risk of failure, and this is rarely outweighed by the learning and development experience expected to come with the assignment. D. ...you should avoid the increased hassle coming with the assignment. It will not be enough for you to simply satisfy requirements and achieve objectives. You will have to learn a lot.
Professional and social responsibility Answer: B. ...key stakeholders must have timely and complete information regarding your qualifications to make decisions regarding your suitability for the assignment. Reference: PMI Code of Ethics and Professional Conduct, page 2 (http://www.pmi.org/About-Us/Ethics/~/media/PDF/Ethics/ap_pmicodeofethics.ashx).
Geert Hofstede's cultural dimension of individualism refers to... A. ...the degree of dependence relationships between individuals. B. ...the significance of the person versus that of the group. C. ...the identification with the gender role of an individual. D. ...the tolerance for ambiguity or uncertainty in the workplace.
Professional and social responsibility Answer: B. ...the significance of the person versus that of the group. Reference: Vijay K. Verma, The Human Aspects of Project Management: Managing the Project Team, Volume Three, page 94, pmi.books24x7.com/viewer.asp?bookid=3030&chunkid=418979454.
In a country with high level of violence in public, a local police officer requires a private money transfer to ensure the safety of your team. How do you react? A. You regard this as bribery or at least as palm greasing and do not pay. B. You do not pay, but follow the chain of command and solicit a decision. C. You regard it as a facilitation payment and pay the person. D. You regard the situation as a gray area and pay through an agent.
Professional and social responsibility Answer: B. You do not pay, but follow the chain of command and solicit a decision. Reference: Mastering Virtual Teams: Strategies, Tools, and Techniques That Succeed by Deborah L. Duarte and Nancy Tennant Snyder, Second Edition, page 70.
You are managing an internationally dispersed project team. The members of your team have different cultural backgrounds and primary languages, but all are educated and able to communicate eloquently in English. You should nevertheless bear in mind that... A. ...there are cultural differences. You should write one code of conduct for each nationality. You should then limit access to these codes. B. ...you may have to accept that team members from one country may not be prepared to work with colleagues from certain other countries. C. ...spoken communications can cause misunderstandings you may not find in written communications. These may be hard to identify. D. ...certain groups will be happy to stay awake over night to join telephone and video conferences during other members' working time.
Professional and social responsibility Answer: C. ...spoken communications can cause misunderstandings you may not find in written communications. These may be hard to identify. Reference: The Project Management Tool Kit: 100 Tips and Techniques for Getting the Job Done Right by Tom Kendrick, page 51, pmi.books24x7.com/viewer.asp?bookid=4546&chunkid=987509635.
What is typical for high-context cultures? A. Technical means for communications can focus on transfer of spoken and written language. B. Communication is preferred which avoids passing over a great deal of additional information. C. A message has little meaning without an understanding of the surrounding context. D. To understand a message, no information on history or personal opinions is needed.
Professional and social responsibility Answer: C. A message has little meaning without an understanding of the surrounding context. Reference: Mastering Virtual Teams: Strategies, Tools, and Techniques That Succeed by Deborah L. Duarte and Nancy Tennant Snyder, Second Edition, page 56, pmi.books24x7.com/viewer.asp?bookid=8104&chunkid=761438925.
You are the manager of a major project to develop a system of barriers to prevent a seaside city from flooding. Together with your team you created a code of conduct stating that the change control board must be immediately notified of gifts when the value exceeds $90. The same applies to invitations when the value exceeds $150. Today, a contractor executive sent you an invitation for a night at an opera with a value of $95. It is a one-time event and you tried to obtain tickets by yourself without success. The person told you that he would so much wish to join you, but he will not be available on that day, and he could get hold of only one ticket anyway. What do you have to do? A. You are allowed to accept invitations with a value of up to $150, so there should be no problem. B. One may regard the ticket as a gift, but it is just at the limit: You do not have to notify the CCB. C. The ticket is a gift and over of the limit. You have to notify the CCB who will make the decision. D. You are the project manager. The rules are in place to strengthen your position. They do not apply to you.
Professional and social responsibility Answer: C. The ticket is a gift and over of the limit. You have to notify the CCB who will make the decision. Reference: PMI Code of Ethics and Professional Conduct, page 5, 5.3.1 and 5.3.2, pmi.org/About-Us/Ethics/~/media/PDF/Ethics/ap_pmicodeofethics.ashx.
What is the primary output of the Develop Project Charter Process?
Project Charter
What are the outputs for the develop project charter process?
Project charter
What are the inputs for the develop project managment plan process?
Project charter Outputs from the planning process Enterprise environmental factors Organizational process assets
What are the Initiation process outputs?
Project charter, project manager identification and assignment, constraints, and assumptions
1. What is a project?
Project is temporary endeavor undertaken to create unique product, service or result (has defined start and end date)
_________ are usually not a manifestation of unique organizational cultures and styles. A. Shared visions, values, norms, beliefs, and expectations B. Individual traits and attitudes of co-workers C. Views of authority relationships D. Policies, methods, and procedures
Project life cycle and organization Answer: B. Individual traits and attitudes of co-workers Reference: PMBOK® Guide 4th Edition, page 27.
What are the outputs for the develop project managment plan process?
Project management plan
What are the inputs for the close project or phase process?
Project management plan Accepted deliverables Organizational porcess assets
What are the inputs for the direct and manage project execution?
Project management plan Approved change requests Enterprise environmental factors Organizational process assets
What are the inputs of the monitor and control project work process?
Project management plan Performance reports Enterprise environmental factors Organizational process assets
What are the inputs for the perform integrated change control process?
Project management plan Work performance information Change request Enterprise environmental factors Organizational process assets
28. What is project scope statement?
Project scope statement contains deliverables and also the work required to create those deliverables.
What is Project Scope Statement ?
Project scope statement describes, in detail, the project's delivrables and the work required to create those delivrables. Include: - Product scope description - Product acceptance criteria - Project deliverables - Project exclusions - Project constraints - Project assumptions
Tools and techniques used in the Initiation process?
Project selection methods and expert judgment
11. Who issues project charter?
Project sponsor issues project charter
What is included in a project charter
Project title, description, high level requirements, high level schedule, high level costs & benefits as well as the project manager authority & what they have authority for
Definition of Activity ?
Project work packages are typically decomposed into smaller components called activities that represent the work necessary to complete the work package. Activities should be smaller enough to estimate, schedule, monitor and manage.
14. Name some techniques in Perform Quality Assurance?
Quality audits, process analysis (includes root cause analysis) are some techniques in Perform Quality Assurance
20. What tool shows pattern of relationships between variables that exit when one variable depends on the other, so changing one variable will affect the other?
Scatter Diagram
What schedule network analysis technique involves crashing?
Schedule compression
43. What are the top two Sources of Conflict on projects?
Schedules, Project Prioritization
Describe the importance of sign-off of the project charter
Sign-off assures all parties have read the charter, agree to its contents, and endorse the project. Participation early on by the key stakeholders will likely ensure their participation in the project as it progresses.
What is Perquisites (Perks)?
Some employees receive special rewards
How do you calculate Budget at Completion (BAC)?
Total the amounts of all planned activities.
How do you calculate Actual Costs (AC)?
Total what you has been spent to date.
Purpose of Monitor and Control Project Work Process ?
Tracking, reviewing and regulating the progress to meet the performance objectives defined in the Project Management Plan
Which Project Scope Management Processes occur in the Monitoring and Controlling Process Group
Verify Scope Control Scope
40. What process should be used to document the level and extent of completion if the project is cancelled/terminated early?
Verify Scope Process
Purpose of Verify Scope Process ?
Verify Scope is the process of formalizing acceptance of the completed project delivrables
31. What does a Risk Audit do?
Verify effectiveness of Risk Response Plan and Execution of Risk Response Plan
Monitoring control ( Project scope Mgt) 5.4
Verify scope
What is the project life cycle?
a collection of generally sequential and sometimes overlapping project phases whose name and number are determined by the mgmt and control needs of the organization or organizations involved in the project, the nature of the project itself and its area of application
What is Change Management Plan ?
defines the process for managing change on the project
What is Configuration Management Plan ?
defines those items that are configurable, those items require formal change control, and the process for controlling changes to such items
What is Quantitative risk analysis and modeling techniques (TT) ?
includes: - Sensitivity Analysis - Expected Monetary Value (EMV) analysis - Modeling and Simulation
What is Quality Policy ?
set the intended direction of a performing organization with regard to quality
What is the product life cycle?
this life cycle lasts from the creation of a new product to its withdrawal. a product life cycle can have many projects over its life
Corrective Action ?
to bring expected future project performance in line with the PMP
Percentage of Communication in Project Manager's work ?
up to 90%
What is Benchmarking ? (TT)
use the results of quality planning of other projects to set goals for your own
What is Design of Experiments (DOE) ? (TT)
uses experimentation to statistically determine what variables will improve quality
Formula of Present Value (PV) ?
PV=FV/(1+r)^n
How do you calculate Present Value (PV)?
PV=FV/(1+r)^n
1. The project life cycle is comprised of which of the following? A. Phases B. Milestones C. Estimates D. Activities
A. The project life cycle is comprised of phases. B is incorrect since milestones may exist within the project plan, but they do not comprise the project life cycle. C is wrong because estimates are not directly related to the project life cycle. Choice D, activities, comprise the phases within the project life cycle, but not the project life cycle itself.
You are the project manager for the ERP Project. Your organization uses a project office. The primary purpose of a project office is to: A. Support the project managers B. Support the Project Sponsor C. Support the project team D. Identify the stakeholders
A. The project office supports the project manager. B and C are incorrect because the project office does not support the Project Sponsor and project team. Choice D is incorrect because stakeholder objectives may vary from stakeholder to stakeholder.
At what point in a project would a kill point be acceptable? A. When a project team member is not performing as planned B. When a project reaches the end of a project phase C. When a project reaches the end of its budget D. When a project manager determines the project cannot continue
B. Kill points are typically at the end of a project phase. A kill point does not mean the project is killed, just that the potential for termination exists. Choices A, C, and D may appear to be correct, but they do not adequately describe a kill point.
Meaning of PTA ?
- At or above PTA, Buyer pays the Ceiling price, Contract Price is fixed and equal to the Ceiling Price. - At or above PTA, seller bears all the loss of a cost overrun - Reason of cost beyond PTA is often due to mis-management
Cost Plus Incentive Fee (CPIF)
- Buyer pays the actual cost plus a fee that will be adjusted based on whether the specific performance objectives stated in the contract are met - Buyer and seller can share any cost shavings or overruns
Types of Termination ?
- Buyer terminates a contract for cause if the seller breaches the contract - Termination for convenience
What is Critical Path Method ?
- Calculates the theoretical early start and finish dates, and late start and finish dates, for all activities without regard for any resource limitations - By performing a forward and backward pass analysis through the schedule network
Purpose of Procurement audits ?
- Capture Lesson Learned
What is Diagramming Techniques (TT) ?
- Cause and effect diagram - Flow chart - Influence diagrams
Funding Limit Reconciliation includes ?
- Check Cash Flow - Check Cost Constraints in the Charter (PM propose options to decrease costs)
What is Statistical Sampling ? (TT)
- Choose part of a population of interest for inspection - Frequency and size be determined in Plan Quality
Contents of WBS directory ?
- Code of account identifier - Description of work - Responsible organization - List of schedule milestones - Associated schedule activities - Resources required - Cost estimates - Quality requirements - Acceptance criteria - Technical references - Contract information
Scope Management processes ?
- Collect Requirements (planning) - Define Scope (planning) - Create WBS (planning) - Verify Scope (mc) - Control Scope (mc)
Purpose of Monitor and Control Risks ?
- Implement risk response plan - Track identified risks - Monitor residual risk - Identify new risk - Evaluate risk process effectiveness
What are 5 characteristics of conflict and conflict management process ?
- Conflict is natural and forces a search for alternatives - Conflict is a team issue - Openness resolves conflict - Conflict resolution should focus on issues, not personalities - Conflict resolution should focus on the present, not the past
What are 6 techniques for conflict management ?
- Confronting (Problem solving - best ): solve the real problem so that the problem go away. Win-win situation - Compromising: finding solutions that bring some degree of satisfaction to both parties. Lose-lose situation - Withdrawal (Avoidance): the parties retreat or postpone a decision on a problem. Lose-Leave solution (worst) - Smoothing (Accommodating): emphasizes agreement rather than differences of opinion. Lose-Yield, doesn't produce a solution - Collaborating: parties try to incorporate multiple viewpoints in order to lead to consensus - Forcing: involves pushing on viewpoint at the expense of another. Win-Lose solution
Project Time Management Processes ?
- Define Activities (planning) - Sequence Activities (planning) - Estimate Activity Resources (planning) - Estimate Activity Duration (planning) - Develop Schedule (planning) - Control Schedule (mc)
What is Communication Model and key components ?
- Demonstrate how information is sent and received between 2 parties - Key components: + Encode: translate thought/idea into language understood by other + Message and feedback message: output of encoding + Medium: method to convey message (telephone, mail, speech, ...) + Noise: Anything can interfere with transmission and understanding of message + Decode: translate message back into meaningful thoughts/ideas
What is text-oriented formats ?
- Detailed descriptions of team member responsibilities - Other name: Position Description, Role-Responsibility-Authority forms
What is Risk Urgency Assessment (TT) ?
- Determine risk that may occur soon (should be moved quickly to Plan Risk Response) or require a long time to Plan Response - Can be used to determine final risk severity rating
Processes in HR Management ?
- Develop Human Resource Plan (planning) - Acquire Project Team (executing) - Develop Project Team (executing) - Manage Project Team (executing)
Project Integration Management's processes
- Develop Project Charter (initiating) - Develop Project Management Plan (planning) - Direct and Manage Project Execution (executing) - Monitor and Control Project Work (mc) - Perform Integrated Change Control (mc) - Close Project or Phase (closing)
Differences between Report Performance and Distribute Information ?
- Distribute Information: is concerned with general project information (meeting minutes, issues, ...) - Report Performance: performance report against baseline, use time, cost and related work performance information. Normally pushed to stakeholders
What is Fast Tracking TT ?
- Doing phases or activities (normally critical path activities) in parallel instead of sequence - Increase risk
What is Expected Monetary Value analysis (TT) ?
- EMV = P x I - P: Probability (%) - I: Impact (cost) - EMV of Opportunity: >0 - EMV of Threat: <0 - Used in Decision tree - Can used to calculate contingency reserve by aggregating for each known risk
Functional Organization Advantages
- Easier management of specialists - Team Members report to only one supervisor - Similar resources are centralized, as the company is grouped by specialties - Clearly defined career paths in areas of work specialization
Critical Path Method terms
- Forward/Backward pass analysis - Critical Path - Near Critical Path - Float (Slack)
Type of Organization Structure ?
- Functional - Projectized - Matrix
What is Risk categorization (TT) ?
- Group risk by common root for example: + Source of risk (RBS) + Area or project (WBS) + Project phase, .... - Effective Risk response planning: Eliminate many risks at once by eliminating one cause
Role of Team
- Help plan what needs to be done by creating the WBS and creating time estimates for their work packages or activities - Help look for deviations from the project management plan during monitoring&controlling
Curve of Stakeholder influence during Project Lifecycle ?
- Highest early in lifecycle - Diminish as project proceeds
Curve of Risk during Project Lifecycle ?
- Highest early in lifecycle since uncertainty is high at this point
Purpose of Identify Stakeholders ?
- Identify all people and organization impacted by the project. - Document relevant information regarding their interests, involvement and impact on project success.
Purpose of Sequence Activities process ?
- Identify and document relationships among project activities - Involve determining the dependencies and relationship between activities, and apply leads and lags.
Purpose of Plan Quality ?
- Identify quality requirements and/or standards for the project and product - Document how the project will demonstrate compliance
In which processes are risk responses documented ?
- Identify risk (potential risk response) - Plan risk responses
Purpose of Identify Risks process ?
- Identify which risks may affect the project - Document their characteristics - Is an iterative process
Purpose of Develop Human Resource Plan ?
- Identifying, documenting project roles, responsibilities and required skills - Reporting relationships - Creating a Staffing managemenent plan
When to use EAC = BAC/CPI ?
- If there is no variances from the BAC have occurred - prj will continue at the same rate of spending (same CPI for the rest of Prj)
Difference between Reserve Analysis and Padding ?
- In Reserve Analysis, Estimator has the information necessary to reliably calculate what additional time or fund the project may need (through Risk Management processes) - In Padding, Estimator arbitrarily determine how much of a pad they want to attach to their estimates.
Impact of Poor Quality
- Increased costs - Low morale - Low customer satisfaction - Increased risk - Rework - Schedule delays
What are different communication methods ?
- Interactive communication: multidirectional exchange of information - Push communication: Sent to specific recipients who need to know the information - Pull communication: Recipients required to access the communication content at their own discretion (large volumes of information, for very large audiences, ...)
The Role of Stakeholders
- Is anyone who can positively or negatively influence the project
Role of Project Manager
- Is responsible for managing the project to meet project objectives
Other names of Facilitated Workshop ?
- Joint Application Development (JAD) - Quality Function Deployment (QFD) Customer need = Voice of Customer (VOC)
Activities included in Plan Procurement ?
- Perform make-or-buy analysis - Creating a procurement management plan - Creating a procurement statement of work for each procurement - Selecting a contract type for each procurement - Creating the procurement documents - Determining the source selection criteria
Types of Procurement Statement of Work ?
- Performance (convey what the final product should be able to accomplish) - Functional (convey the end purpose or result) - Design (convey precisely what work is to be done)
Other name of Project Phase end ?
- Phases exit - Milestone - Phase gate - Decision gate - Stage Gate - Kill Point
Procurement Management Processes ?
- Plan Procurements (planning) - Conduct Procurements (executing) - Administer Procurements (monitoring and controlling) - Close Procurements (closing)
Processes in Quality Management ?
- Plan Quality (planning) - Perform Quality Assurance (executing) - Perform Quality Control (mc)
Difference between Plan Quality, Perform Quality Assurance, Perform Quality Control
- Plan Quality (planning): focus on defining quality for the project and identifying how it will be achieved - Perform Quality Assurance (executing): focus on work being done on the project to ensure the team is following the processes as planned to produce the project's deliverables. - Perform Quality Control (monitoring&controlling): examines actual deliverables to ensure they are correct and that they meet the planned level of quality
Processes in Risk Management ?
- Plan Risk Management (planning) - Identify Risk (planning) - Perform Qualitative Risk Analysis (planning) - Perform Quantitative Risk Analysis (planning) - Plan Risk Responses (planning) - Monitor and Control Risk (mc)
What are 4 factors that influence conflict resolution methods ?
- Relative importance and intensity of the conflict - Time pressure for resolving the conflict - Positions taken by players involved - Motivation to resolve conflict on a long-term or a short-term basis
What are in Risk Register updates ? (O)
- Relative ranking or priority list of project risks - Risks grouped by categories (Risk categorization TT) - Causes of risk or project areas requiring particular attention - List of risk requiring response in the near-term (Risk urgency assessment TT) - List of risks for additional analysis and response - Watchlist of low-priority risks - Trend in qualitative risk analysis results
What are Risk Register Updates ? (O)
- Residual Risk - Contingency plans - Risk Response owners - Secondary Risks - Risk triggers - Contracts - Fallback plans - Reserves (contingency)
Cost estimating range (Accuracy of estimates)
- Rough Order of Magnitude Estimate: initiating, +-50% - Budget Estimate: planning, -10% -> +25% - Definitive Estimate: -5% --> +10%
What is difference between Project Schedule and Schedule Baseline ?
- Schedule Baseline is an "approved version" of Project Schedule - Project Schedule is updated as project is executed >< Schedule Baseline is only updated as a result of an approved change - Project Schedule is "actual" >< Schedule Baseline is the "plan" - Schedule Performance = compare Project Schedule with Schedule Baseline - Project Schedule is in Project Documents >< Schedule Baseline is in Project Management Plan
Main items to negotiate ?
- Scope - Schedule - Price
What is subsidiary plans ?
- Scope/Requirement/Schedule/Cost/Quality/Process/Human Resource/Communications/Risk/Procurement Management Plan - Configuration/Change Management Plan
Types of Project Phase relationship ?
- Sequential - Overlapping - Iterative
What is Matrix Org ?
- Shared responsibility and authority between Project Manager and Functional Manager - Strong Matrix: PM > FM - Balance Matrix: PM = FM - Weak Matrix: FM > PM. PM=expediter/coordinator. PM isn't in charge of the resource of project
What is Performance Report ?
- Show how project is progressing against the various baselines (Scope, Time, Cost and Quality)
Scope Creep ?
- Uncontrolled Change - Incomplete assessment of the change's impact --> Implementation a change leads to another changes .... --> Until it's hard to tell what the scope of project is
How to describe Roles and Responsibilities ?
- Use Organization Charts and Position Description TT - Three types: Hierarchical, matrix, text-oriented
When to used Fixed Price Contract ?
- Used for acquiring goods or services with well-defined specifications or requirements - There is enough competition to determine a fair and reasonable fixed price before the work begins - Most widely used: Firm Fixed Price Contract (FFPC)
What is Probability and Impact Matrix ? (TT)
- Used results from Risk Probability and Impact Assessment to rate&sort risk - Determine which one warrant an immediate response and which ones should be put on watchlist
What is Matrix-based charts ?
- Used to illustrate the connections between work packages or activities and project team members - named Responsibility Assignment Matrix (RAM) - Example type of RAM: RACI
What is Hierarchical-type charts ?
- Used to show positions and relationships in a graphic, top-down format - Examples of type: + Organization Breakdown Structure + Resource Breakdown Structure
What is Rule of Seven ?
- a group of series of nonrandom data points that total seven on side of the mean. - Process may be out of control (although non of these points are outside of the control limits)
What is Cause and Effect diagram (TT) ?
- also called Ishikawa diagram, fishbone diagram - show how various factors might be linked to potential problems and effects - Help identifying quality problem - Uncover the underlying cause - Classic causes: Time, Machine, Method, Material, Energy, Measurement, Personnel, Environment
What is Project Objectives ?
- are contained in the Project Charter - Projects are considered complete when objectives are met
Source Selection Criteria ?
- are included in the procurement documents to give the seller an understanding of the buyer's needs and to help the seller decide whether to bid or make a proposal on the work - help buyer to choose among sellers
Purpose of Acquire Project Team process ?
- confirm human resource availability - obtain the team necessary to complete project assignments
What is Project Funding Requirements ?
- describe the need of funding over the course of project - derived from Cost Performance baseline - include management reserve
What is Quality Management Plan ? (O)
- describes how the project management team will implement the performing organization's quality policy - is the main tool for preventing defect
What is Process Improvement Plan ? (O)
- details the steps for analyzing processes to identify activities which enhance their value - improves the processes that are currently on the project
What is Sensitivity analysis (TT) ?
- determine which risks have the most potential impact on the project's objectives. - ex: Tornado diagram
Purpose of Conduct Procurement process ?
- distribute procurement document to sellers - obtain seller responses - select a seller - award a contract
What is Projectized Organization ?
- entire org is organized by project - Authority is with Project Manager (Resource, Project, ..)
What is Management by Objectives ?
- establish unambiguous and realistic objectives - periodically observe if objectives are met - implement corrective action
What is Project Performance Appraisals ?
- evaluation of employees' performance by those who supervise them - feedback about individual's team members contribution to project (for recognition and improvement)
What is Process Analysis ?
- examine project's process - looking for non-value added activities (inefficiencies) - implement the continuous improvement plan
What is Inspection (TT) ?
- includes activities such as: measuring, examining, verifying to determine whether work and deliverable meet requirement and product acceptance criteria - sometimes called Review, Product Review, Audit, Walkthrough
What is Interviewing (TT) ?
- interview to quantify the probability and impact of risks on project objectives
What is Histogram (TT) ?
- is Column Chart - show How often something occur, its Frequency (no ranking)
What is Cost Performance Baseline ?
- is Cost Baseline presented under time-phase form - is used to measure, monitor and control overall cost performance on the project
What is Pareto chart (TT) ?
- is a Histogram - show defects ranked from Greatest to Least - Pareto rule: 80% of problems come from 20% of causes - help to determine Few root causes behind Majority of problem
What is Quality checklists ? (O)
- is a list of items to inspect, a list of steps to be performed or a picture of the item to be inspected, with spec to note any defects found - is used in Perform Quality Control
What is Control Account ?
- is a management control point where scope, cost and schedule are integrated and compared to the earned value for performance measurement
What is Quality metrics ? (O)
- is an operational definition that describes a project or product attribute and how the quality control process will measure it - have to be determined in advance
Purpose of Perform Quantitative Risk Analysis ?
- is the process of numerically analyzing the effect of identified risks on overall project objectives - is performed on risks prioritized by Perform Qualitative Risk Analysis
What is Resource Leveling TT?
- is used to produce a resource-limited schedule - applied to schedule that has already been analyzed by the critical path method
What is Project Expediter ?
- keeps track of prj status - keep everybody informed of project progress - has no decision-making authority on the project at all
What is Checklist (O) ?
- list of non-critical or non-top risks - for later review during risk monitoring and controlling
What is Brainstorming (TT) ?
- meeting where one idea helps generate other - is to obtain a comprehensive list of project lists
What is Functional Organization ?
- org is grouped by areas of specialization within different functional area - Authority is with Functional Manager
What is Prototype ?
- provide a working model of expected product before actually building it - Support Progressive elaboration: iteration - Mock-up creation, user experimentation, feedback generation, prototype revision
What is Organization Theory ?
- provides information regarding the way in which people, teams and organizational units behave. - can be used to facilitate the creation of HR planning outputs, improve the likelihood that the planning will be effective.
What is Project Coordinator?
- same as Expediter - can make some of the minor decisions
What is Flow Charting ? (TT)
- show how a process of system flows from beginning to end and how the elements interrelate - can be used to "see" process and find potential quality problems
What is Resource Calendar ?
- specify WHEN and HOW LONG identified project resources will be available during the project - Output from Acquire Project Team process and Conduct Procurement process
What is Schedule Compression TT ?
- this method shortens the project schedule without changing the project scope. - Includes: + Crashing + Fast tracking
What is issue log (action item log) ?
- used to document and monitor the resolution of issues. - used to facilitate communication and ensure a common understanding of issue - issue is stated and categorized based on urgency and potential impact. - owner and target date is assigned - Unresolved issue can be a major source of conflict and project delays - is a TT of Manage Project Team
What is change log ?
- used to document changes that occur during a project
What is Contingency Reserve ?
- used to manage identified risks - estimated based on Expected Monitory Value (EMV) (decision tree method) - project manager has authority to use this reserve - included in Cost Baseline - should be return to company if identified risks do not occur
What is Management Reserve ?
- used to manage unidentified risks - calculated as a percentage of cost, or time of project - required management approval to use this reserve. - excluded from Cost Baseline, but included in Project Budget
Parametric estimating ?
- uses a statistical relationship between historical data and other variables (cost, budget, duration, ...) to calculate an estimate for activity parameters - Ex: Cost = Quantity in units x Unit Rate
What is Parametric estimating ?
- uses a statistical relationship between historical data and other variables (cost, budget, duration, ...) to calculate an estimate for activity parameters - Ex: Cost = Quantity in units x Unit Rate
Project Manager's role during bidding and proposals process ?
- very important - make sure contract contains all scope of work and PM requirements - help tailor the contract - identify risk - be involved during contract negotiation - make sure that contract is realistic in term on time, cost constraint - answer technical and PM questions arising during bidder conference
When to use EAC=AC+(BAC-EV)/(CPIxSPI)
- when current variances are thought to be a typical of the future - Assumes poor cost performance and a need to hit a firm completion date (prj has to be delivered by a certain date)
When to use EAC = AC+(BAC-EV) ?
- when current variances are thought to be atypical of the future (future spending speed will be the same as initial estimates) (current CPI is abnormal and doesn't reflect how proj progress) - is the AC plus the remaining value of work to perform
54. What is zero sum reward system?
A Zero Sum reward system is a win-lose recognition program. For example, with an employee of the month program their will only be one or two team members who will win the award each month. Reward programs should be more win-win.
According to PMBOK, what is a portfolio
A collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives
What is a portfolio?
A collection of projects or programs and other work that are grouped together to facilitate effective mgmt of that work to meet strategic business objectives
Funding limit
A determined budget in relation to the project scope.
Majority
A group decision method where more than 50 percent of the group must be in agreement.
Plurality
A group-decision method where the largest part of the group makes the decision even if it's not more than 50 percent of the total. (Consider three or four factions within the stakeholders.)
Code of accounts
A hierarchical numbering system for each item in the WBS.
Earned Value (EV) Means? Aka budgeted cost of work performed (BCWP)
A measurement of the progress of a project and the basis of cost analysis, including any work started ahead of schedule.
What is Milestone ?
A milestone is a significant point or event in the project Length = 0 - Can be Mandatory (if specified by contract), or Optional (ex: based on Historical Information)
Prototype
A model of the finished deliverable that allows the stakeholder to see how the final project deliverable may operate.
Focus groups
A moderator-led requirements collection method to elicit requirements from stakeholders.
What is padding ?
A pad is extra time or cost added to an estimate because the estimator does not have enough information --> must be avoided
Interviews
A requirements collection method used to elicit requirements from stakeholders in a one-on-one conversation.
Definition of Risk event ?
A risk event is something identified in advance that may or may not happen
Systems analysis
A scope definition approach that studies and analyzes a system, it components, and the relationship of the components within the system.
Alternative identification
A scope definition process of finding alternative solutions for the project customer while considering the customer's satisfaction, the cost of the solution, and how the customer may use the product in operations.
Stakeholder analysis
A scope definition process where the project management team interviews the stakeholders and categorizes, prioritizes, and documents what the project client wants and needs. Demands QUANTIFICATION of the stakeholders' objectives.
Product breakdown
A scope definition technique that breaks down a product into a hierarchical structure.
What is a process
A set of interrelated actions and activities performed to achieve a pre-specified product, result, or service.
Define decision models
A tool and technique in the Initiation process; include benefit measurement methods and constrained optimization methods.
You are the manager of your company's project management office. The company is running many concurrent projects; most of them share a resource pool of technical staff. Understanding how resources are utilized across projects has been found essential to overall project performance, including cost effectiveness and profitability. This morning you received a message that the resource pool members will be unable to perform as planned for the next months because the overall work load has grown too high and while delays are adding up, the morale of the staff is going down. What should you do next? A. Ensure that quantitative information for all projects is being made available in a uniform and reliable fashion and verify that the project management methodology is adhered to. Then consolidate the information to get an understanding of the problems related with the use of shared resources. B. Implement an enterprise project management software solution which is able to level the human resources across the various projects and which has the capability to model resource assignment on a percentage level thus optimizing resource utilization for the overall organization. C. Do nothing related to the described problem unless you are explicitly requested by the organizations upper management. Supporting decision making on the level on which project portfolio management is done, is not the project management office's business. D. Evaluate project management software which supports planning and scheduling across enterprise-wide project portfolios. Avoid managing the availability of shared enterprise resources for the projects run by an organization because this is not the business of a project management office.
A. Ensure that quantitative information for all projects is being made available in a uniform and reliable fashion and verify that the project management methodology is adhered to. Then consolidate the information to get an understanding of the problems related with the use of shared resources. PMBOK® Guide 4th Edition, p 11
Which is an appropriate order in most project situations for the development of scope-related documents? A. 1. Project SOW (statement of work), 2. Project charter, 3. Project scope management plan, 4. Project scope statement, 5. WBS (work breakdown structure) and WBS dictionary. B. 1. Work breakdown structure, 2. Scope statement, 3. Project charter, 4. CSOW (contractual statement of work), 5. Contractual work breakdown structure C. 1. Feasibility study 3. Contract, 4. CWBS (contractual work breakdown structure), 5. Scope of work descriptions, 6. PID (project initiation document). D. 1. BOM (Bill of materials), 2. CAP (control account plan), 3. Project charter 4. Change management plan, 5. Scope baseline.
A. 1. Project SOW (statement of work), 2. Project charter, 3. Project scope management plan, 4. Project scope statement, 5. WBS (work breakdown structure) and WBS dictionary. PMBOK® Guide 4th Edition, p 43 (overview), 74 (Project charter input: SOW), 104 (scope management plan), 112 (define scope process output: scope statement), 116 (create WBS process)
Which of the following is an example of negotiation? A. Arbitration B. Formal communications C. Conferring D. Scope creep
A. Arbitration (sự phân xử, sự làm trọng tài phân xử) is a form of negotiation. Technically, it is a form of assisted negotiation. B is not a negotiation technique. Choice C, conferring, is not negotiating, but a process to seek consensus on a decision. D is incorrect as scope creep is the process of allowing additional activities into the project scope.
A project with much risk and reward is most likely to be accepted in which of the following? A. An entrepreneurial company B. A heavily regulated company C. A non-profit organization D. A community
A. Projects with much risk and reward are most likely to be accepted within an entrepreneurial organization. Choices B, C, and D are typically more adverse to risk and likely wouldn't accept a project with a large amount of risk.
A project management team has subcontracted work to a service company. Which of the following tools is the best choice to assure that this company will be able to meet the quality requirements of the project? A. Quality audit B. Deliverable inspection C. Fixed price contract D. Service level agreement
A. Quality audit PMBOK® Guide 4th Edition, p 204
A review to determine whether of project activities comply with organizational and project policies, processes, and procedures is commonly called A. Quality auditing B. Inspection C. Quality testing D. Reject screening
A. Quality auditing PMBOK® Guide 4th Edition, p 204
EAC (Estimate at Complete - typical variance)
AC + (BAC - EV) (actual cost plus the total of budget at completion minus earned value)
EAC (Eastimate at Completion 4)
AC +( (BAC-EV)/CPI )
TT of Estimate Cost
APE BP CR TV - Analogous Estimating - Parametric Estimating - EJ - Bottom-up Estimating - Project Management Software - Cost of Quality - Reserve Analysis - Three-point estimating - Vendor bid analysis
TT of Define Scope
APEF: - Alternatives Identification - Product Analysis - EJ - Facilitated Workshop
14. What are the top three characteristic of a project charter?
Business needs, Justification, Requirements
What is Incentive ?
Additional fee provided by buyer if seller meets some cost, performance, or schedule objectives.
Activity
Also called a scheduled activity. An activity is a task that must be performed in order to complete work on the project. Activities are created by further decomposing work packages. Under current guidelines, the primary difference between a work package and an activity is that a work package is a component of the scope and describes some aspect of the deliverable, while an activity describes the work that must be done in order to complete the work package. Schedule activities are first defined, then sequenced and estimated for duration.
Purpose of Product Analysis ?
Analyze the objectives and description of the product stated by the customer or sponsor and turn them into tangible delivrables
Reserve Analysis ?
Analyze the uncertainty (through Risk Management Processes), set aside Contingency reserves (buffer - time reserve in Estimate Activity Duration case, or Contingency Allowances in Estimate Cost process) to account for uncertainty.
What is reserve analysis ?
Analyze the uncertainty (through Risk Management Processes), set aside Contingency reserves (buffer - time reserve in Estimate Activity Duration case, or Contingency Allowances in Estimate Cost process) to account for uncertainty.
16. The previous project manager for your project managed it without much project organization. There is a lack of management control and no clearly defined project deliverables. Which of the following would be the BEST choice for getting your project better organized? A. Adopt a life cycle approach to the project B. Develop lessons learned for each phase C. Develop specific work plans for each work package D. Develop a description of the product of the project
Answer A Choice B would help improve subsequent phases, but would do nothing for control and deliverables. Choice C would help control each phase, but would not control the integration of the phases into a cohesive whole. Choice D would help, but not help both control and deliverables for each phase. Effective project management requires a life cycle approach to running the project. Choice A is the only answer that covers both control and deliverables.
9. All of the following are parts of the team's stakeholder management effort EXCEPT: A. Giving stakeholders extras B. Identifying stakeholders C. Determining stakeholders' needs D. Managing stakeholders' expectations
Answer A Giving stakeholders extras is known as gold plating. This is not effective stakeholder or quality management.
Which of the following MUST be an agenda item at all team meetings? A. Discussion of project risks B. Status of current activities C. Identification of new activities D. Review of project problems
Answer A Explanation Risk is so important that it must be discussed at all team meetings. Procurement Management CHAPTER TWELVE
During project planning in a matrix organization, the project manager determines that additional human resources are needed. From whom would he request these resources? A. Project manager B. Functional manager C. Team D. Project sponsor
Answer B Explanation Did you remember that in a matrix organization, the functional manager controls the resources?
Project setup costs are an example of: A. Variable costs. B. Fixed costs. C. Overhead costs. D. Opportunity costs.
Answer B Explanation Setup costs do not change as production on the project changes. Therefore, they are fixed costs.
During what part of the project management process is the project scope statement created? A. Initiating B. Planning C. Executing D. Monitoring and controlling
Answer B Explanation The project scope statement is an output of the Define Scope process, which occurs during project planning.
What conflict resolution technique is a project manager using when he says, I cannot deal with this issue now! A. Problem solving B. Forcing C. Withdrawal D. Compromising
Answer C Explanation Delaying the issue is called withdrawal.
8. All of the following are characteristics of a project EXCEPT: A. Temporary B. Definite beginning and end C. Interrelated activities D. Repeats itself every month
Answer D Choice D implies that the whole project repeats every month. Generally the only things that might repeat in a project are some activities. The whole project does not repeat.
Control Schedule, Report Performance, and Administer Procurements are parts of which process group? A. Initiating B. Planning C. Executing D. Monitoring and controlling
Answer D Explanation All of these processes are part of monitoring and controlling.
All of the following are factors in the assessment of project risk EXCEPT: A. Risk event. B. Risk probability. C. Amount at stake. D. Insurance premiums.
Answer D Explanation Insurance premiums come into play when you determine which risk response strategy you will use.
Which of the following is included in a project charter? A. A risk management strategy B. Work package estimates C. Detailed resource estimates D. The business need for the project
Answer D Explanation This question may seem simple, but it is really testing if you know what is a correct project charter. Choices A and B do not come until project management planning, after the project charter. A project charter may include the names of some resources (the project manager, for example), but not detailed resources (choice C).
A project team is working on manufacturing a new product, but they are having difficulty creating a project charter. What is the BEST description of the real problem? A. They have not identified the project objectives. B. They are working on a process and not a project. C. The end date has not been set. D. They have not identified the product of the project.
Answer: B Explanation This work has entered the manufacturing stage. Manufacturing is generally considered a process, not a project, as it is not temporary. A project charter will not be appropriate here.
You find out that a contractor that you're working with discriminates against women. The contractor is in another country, and it's normal in that country. What should you do? A. Respect the contractor's culture and allow the discrimination to continue B. Refuse to work with the contractor, and find a new seller C. Submit a written request that the contractor no longer discriminates D. Meet with your boss and explain the situation
Answer: B It's never okay to discriminate against women, minorities, or others. You should avoid doing business with anyone who does.
You're working on a project, when the client demands that you take him out to lunch every week if you want to keep his business. What's the BEST thing to do? A. Take the client out to lunch and charge it to your company B. Refuse to take the client out to lunch because it's a bribe C. Take the client out to lunch, but report him to his manager D. Report the incident to PMI
Answer: B The client is demanding a bribe, and paying bribes is unethical. You should not do it. If your project requires you to bribe someone, then you shouldn't do business with that person.
You read a great article over the weekend, and you think your team could really benefit from it. What should you do? A. Photocopy the article and give it to the team members B. Type up parts of the article and email it to the team C. Tell everyone that you thought of the ideas in the article yourself D. Buy a copy of the magazine for everyone
Answer: D You should never copy anything that's copyrighted. Make sure you always respect other people's intellectual property!
What are Project Documents ?
Any project-related documents that are not part of the Project Management Plan. (P.350)
What is a constraint
Any restriction or limitation that will affect the performance of the project, or even affect when an activity can be scheduled
Variance at Completion - VAC
As of today, how much over or under budget do we expect to be at the end of the project ? VAC = BAC - EAC
Actual Cost - AC
As of today, what is the actual cost incurred for the work accomplished ?
Planned Value - PV
As of today, what is the estimated value of the work planned to be done ?
Earned Value - EV
As of today, what is the estimated value of work actually accomplished ?
What is Risk Probability and Impact Assessment ? (TT)
Assess risk by Probability and Impact - Risk Probability: likehood that each specific risk will occur (normally percentage) - Risk Impact: potential effect on project objectives (measured in cost, time, quality, performance, ...)
5. Data points that fall outside the upper and lower control limits are called?
Assignable or Special Causes
6. What type of causes on a control chart require investigation?
Assignable or Special Causes
When does the life cycle of a product or service begin
At its conception; it ends with its closure. This cycle can begin with an assessment of the product or service from a business perspective (business need and benefit), continue with the hand off to operations, and end with the discontinuation or completion of the product or service.
Your company has sent out an RFP, and your brother wants to bid on it. What's the BEST thing for you to do? A. Give your brother inside information to make sure that he has the best chance at getting the project B. Publicly disclose your relationship with him and excuse yourself from the selection process C. Recommend your brother but don't inform anyone of your relationship D. Don't tell anyone about your relationship but be careful not to give your brother any advantage when evaluating all of the potential sellers
B You have to disclose the relationship. It's important to be up front and honest about any conflict of interest that could occur on your projects.
What are the tools & techniques for teh close project or phase process?
Expert judgement
What are the tools & techniques for the develop project charter process?
Expert judgement
Which statement describes best the meaning of the term cost baseline? A. A cost baseline is always created by translating time-phased cost information into cost data on activity or work-package level. B. A cost baseline is an approved time-phased budget that will be used to measure and monitor cost performance on the project. C. Data to draw a cost baseline can be easily generated and updated as necessary from information related to actual project cost. D. A cost baseline is usually displayed in the form of an inverse S-curve drawn from the beginning of the project until data date.
B. A cost baseline is an approved time-phased budget that will be used to measure and monitor cost performance on the project. PMBOK® Guide 4th Edition, p 178
What is a constructive change? A. A change request that helps improving the project and its product, service or result and is discussed generally in a friendly style. B. A direction by the buyer or an action taken by the seller that the other party considers an undocumented change to the contract. C. A field change or ad-hoc change mandated by the project customer in a public construction project. D. A change request which will lead to the re-construction of an older version of the project performance baseline by the contractor.
B. A direction by the buyer or an action taken by the seller that the other party considers an undocumented change to the contract. PMBOK® Guide 4th Edition, p 341
A production process has been defined as part of an industrial equipment manufacturing project. The process is intended to produce steel bolts with a length of 20 cm. The control limits are 19.955cm and 20.045cm. The measurements made at the end of the process yielded the following results: 20.033cm, 19.982cm, 19,995cm, 20.006cm, 19.970cm, 19.968cm, 19.963cm, 19.958cm, 19.962cm, 19.979cm, 19.959cm. What should be done? A. The process is under control. It should not be adjusted. B. A special cause should be investigated, the process should be adjusted. C. The control limits should be adjusted. D. The measuring equipment should be recalibrated.
B. A special cause should be investigated, the process should be adjusted. PMBOK® Guide 4th Edition, pp 196, 209
Which statement describes best why you should document assumptions? A. Assumptions might prove to be wrong. Knowing which assumptions were incorrect allows baseline adjustments in case of project crisis. B. Assumption analysis is a valuable tool and technique to explore the validity of assumptions during risk identification. C. Assumptions limit the project management team's options for decision making because they can not be controlled by the team. D. In case of schedule or budget overruns, the documentation of assumptions supports a clear assignment of responsibility.
B. Assumption analysis is a valuable tool and technique to explore the validity of assumptions during risk identification. PMBOK® Guide 4th Edition, p 286
Which statement on conflicts is true? A. Conflict resolution should focus on people, not issues. B. Conflict is natural and forces a search for alternatives. C. Conflict should always be handled in private and not in the team. D. Too much openness is a common cause of conflict.
B. Conflict is natural and forces a search for alternatives. PMBOK® Guide 4th Edition, p 239
The project manager develops a process improvement plan to encourage continuous process improvement during the life of the project. Which of the following is a valid tool or technique to assist the project manager to assure the success of the process improvement plan? A. Change control system B. Process analysis C. Benchmarking D. Configuration management system
B. Process analysis
12. Which of the following is an example of a deliverable at the end of the requirements gathering phase in a software design project? A. Responsibility matrix creation B. Detail design document C. Business needs D. Project team assembled
B. The detail design document is an output of the requirements gathering phase. Choice A is incorrect because the responsibility matrix creation is a process, not an output of itself. C is incorrect because business needs may prompt the project to begin, not an output of a phase. D is also wrong because the project team assembled is part of the project process; it is not an output.
You have been asked to calculate the internal rate of return (IRR) of a project? What will you assess? A. The time period needed to pay back the investment from a project when future income is discounted. B. The inherent discount rate or investment yield rate produced by the project's deliverables over a pre-defined period of time. C. The rate of negative risk that can be accepted for a project without turning the expected net present value negative. D. The expected benefit from a project's deliverable calculated as a percentage of the original investment over a specified time period.
B. The inherent discount rate or investment yield rate produced by the project's deliverables over a pre-defined period of time. Chapter 1 - Defining the Project Business Case and Getting Buy-in from Top Management, in: Maximizing Project Value: Defining, Managing, and Measuring for Optimal Return by Jeff Berman http://pmi.books24x7.com/viewer.asp?bkid=16115&destid=56&destid=42&destid=42&term=return+on+investment+(ROI)
What are the tools & techniques used for the develop project managment plan process?
Expert judgement
9. Which tool is used to ensure that all prospective sellers have a common understanding of the procurement document?
Bidders Conference
Project Charter in Project where there are buyers and sellers ?
Both would create project charters that have different points of view
Determining Earned Value Includes?
Budget to completion (BAC), Planned Value (PV), Actual Cost (AC), Earned Value (EV)
11. What are the top 3 characteristics of SOW?
Business Needs, Product Description, Strategic Plan
Which project document identifies why the project should be funded and how the project meets the business needs described in the SOW?
Business case
Resolve competing requirements ?
By accepting those that best comply with: - Business case (reason the project was initiated) - Project Charter - Project Scope Statement (if available at the time of conflict) - Project Constraints
What is true for modern project management? Project managers need... A. ... to have a strict standing in negotiating B. ... to show experience in tricking business partners C. ... to be team players and facilitators instead of "bosses" D. ... to be strongly linked to local traditions
C. ... to be team players and facilitators instead of "bosses" Chapter 1 - Importance of People Skills in Project Management, in: People Skills for Project Managers by Steven W. Flannes and Ginger Levin http://pmi.books24x7.com/viewer.asp?bookid=6208&chunkid=108499407
What is Reserve Analysis (TT) ?
Compare amount for contingency reserves remaining to amount of risk remaining in order to determine if the remaining reserve is adequate
TT of Administer Procurements process ?
CRIP PPC: - Contract Change Control system - Record Management system - Inspection and Audit - Procurement Performance Review - Performance Reporting - Payment system - Claims Adminisration
TT of Plan Risk Responses ?
CSS E: - Contingent response strategies - Strategies for negative risks or threats - Strategies for positive risks or opportunities - EJ
What is the Cost Variance formula? How do you interpret the result?
CV = EV - AC Negative = over budget Positive = under budget
What is included in Work Performance Measurement OUTPUT ?
CV,SV, CPI, SPI for WBS components (workpackages, control accounts, ...)
Cost Variance (CV)
CV=EV-AC Negative: Over Budget Positive: Under Budget
4. Which one of the 7 basic tools of quality stimulates thinking?
Cause and Effect Diagram
2. What are the 7 Basic Tools of Quality?
Cause and Effect diagram, Control charts, Flowcharting, Histogram, Pareto chart, Run chart, Scatter diagram
Who approved the change beside Project Manager ?
Change Control Board: review, analyze change request then approve or reject the change
34. What is the key output for Monitor and Control Project Work?
Change Requests
What are the outputs for the monitor and control project work process?
Change request Project managment plan updates Project document updates
What are the outputs for the perform integrated change control process?
Change request status updates Project managment plan updates Project document updates
What are the 3 outputs of the Monitor and Control Project Work process
Change requests Project management plan updates Project document updates
What is the difference between Chart of Accounts and Code of Accounts?
Chart of accounts is used by accounting and PM system to establish and track budgets Code of accounts is a numbering system that identifies pieces of work to the WBS.
9. How will you choose a project given NPV of many projects?
Choose project with high NPV (i.e high net present value)
43. What is it called when a dispute arises between the buyer and the seller?
Claim, handled by negotiation - claims administration
Project boundaries
Clearly states what is included with the project and what's excluded. Helps to eliminate assumptions between the project mgmt team and the project client.
8. Process to verify that all work and deliverables are acceptable to complete each procurement is?
Close Procurements
9. Procurement Audits are a tool and technique of?
Close Procurements
1. Process for documenting and finalizing all activities across all project management process groups to formalize acceptance by the customer is?
Close Project or Phase
6. Project Record documentation is in which process?
Close Project or Phase
Which Project Integration Management process occurs in the Closing Process Group?
Close Project or Phase
What are the 2 processes in the Closing Process Group
Close Project or Phase Close Procurements
What is least important when it comes to archiving project records? A. A well-designed records management system B. Integration of the archive with business software C. Updated records reflecting final results D. Easy availability of information for future use
Closing Answer: 2 References: PMBOK® Guide 4th Edition, pages 102, 339, 342.
During a post-mortem meeting, discussion arises about who has to take responsibility for some major failures. It has become obvious that the attendees of the meeting will not come to a jointly accepted conclusion. What is not an appropriate strategy for such a situation? A. Separate the people from the problem B. Focus on interests, not positions C. Insist on objective criteria and standards D. Suspend the discussion and schedule another meeting
Closing Answer: D. Suspend the discussion and schedule another meeting Reference: The Human Aspects of Project Management: Human Resources Skills for the Project Manager by Vijay K. Verma, Volume Two, page 152, pmi.books24x7.com/viewer.asp?bookid=3030&chunkid=893060287.
closing ( Project procurement Mgt) 12.4
Closing Project Procurement
21. What is code of accounts?
Code of accounts is numbering system used to uniquely identify each component of the Work Breakdown Structure (WBS).
44. What conflict management technique gives a long term solution incorporating consensus and commitment?
Collaborating
Planning ( Project scope mgt) 5.1
Collect requirment
26. Points varying but still within control limits and have no need to be investigated are known as?
Common or Random Causes
54. What Knowledge Area is Manage Stakeholder Expectations?
Communications KA
What are Enterprise Environmental Factors
Company Culture Laws & regulations where the work is performed Risk tolerance of stakeholders or organization MarketPlace
What is the purpose of Cost Management?
Completing the project within the approve budget.
Product acceptance criteria
Component of the project scope statement that works with the project requirements, but focuses specifically on the product and what the conditions and processes are for formal acceptance of the product.
47. A method that may provide and acceptable resolution and is also known as lose - lose is?
Compromising
What is Product Lifecyle ?
Concept, Growth, Maturity, Decline, Withdrawal - consists of generally sequential/non-overlapping product phases
10. Application of evaluation criteria occurs in which process?
Conduct Procurements
12. A contract is an output of which process?
Conduct Procurements
13. Weighting system, independent estimates, and procurement negotiations are tools & techniques of?
Conduct Procurements
8. Proposals are outputs of which process?
Conduct Procurements
Procurement Documents (Bid Documents) ?
Contains collection of written materials that provide potential seller all information they need to develop and submit a bid or proposal: - Request for Information (RFI): looking for information - Request for Proposal (RFP, Request for Tender): request a detailed proposal on how the work will be accomplished (CR, Performance or Functional) - Invitation for Bid (IFB, or Request for Bid, RFB): request a total price to do all the work (FP, Design) - Request for Quotation (RFQ): request a price quote per item, hour, meter or other unit or mesure (T&M, any)
6. What is contingency reserve?
Contingency Reserve is to cover known unknowns (known risks)
What is Continuous Improvement (Kaizen) ?
Continuously looking for small improvements in quality
Which Project Cost Management process occurs in the Monitoring and Controlling Process Group
Control Costs
Monitoring Control ( Project time Mgt) 6.6
Control Schedule
49. In what process would you use SV and SPI?
Control Schedule (they are tools used in Variance Analysis)
Monitoring control ( Project scope Mgt) 5.5
Control Scope
Purpose of Control Scope ?
Control Scope is the process of monitoring the status of the project and product scope and managing changes to the scope baseline.
34. What is control account?
Control account is management control point where scope, cost and schedule are integrated and compared to the earned value for performance measurement.
What are the tools & techniques used during the perform integrated change control process?
Expert judgement Change control meeting
What are the tools & techniques for the direct and manage project execution process?
Expert judgement Project management information system
Planning ( Project time mgt) 6.1
Define Activity
Planning ( Project scope mgt) 5.2
Define Scope
Purpose of Define Scope Process ?
Define Scope is the process of developing a detailed description of the project and product
What is the term for "activities performed to bring future performance into compliance with the project management plan
Corrective actions
37. S Curve is used in what baseline?
Cost Baseline
What is Cost Baseline ?
Cost Baseline = Project costs + Contingency Reserves
Cost risk is greater for the buyer in what type of contract?
Cost Reimbursable
Earned Value Table
Cost Start Here Time AC (ACWP) EV (BCWP) PV (BCWS) CPI = / <---- ----> / = SPI CV $ = - <---- ----> - = SV $
14. What should Control Scope be tightly integrated with?
Cost and Time processes
Opportunity Cost
Cost of chosing one project over another. If project A has an NPV of 45,000 & project B has an NPV of 85,000 what is the opportunity cost of selecting project B - ANSWER: 45,000
Concept of Life Cycle Costing
Cost of the whole life of the product, not just the cost of the project
Cost of Quality ?
Cost of work added to accommodate quality efforts
What are direct costs?
Costs incurred directly by the project
What are fixed costs?
Costs that do not change with project activity
Planning ( Project scope mgt) 5.3
Create WBS
Purpose of Create WBS process ?
Create WBS is the process of subdividing project delivrables and project work into smaller, more manageable components
You are running a project for a customer based on a cost-reimbursable contract with the following terms: Target costs: $1,000,000 Fixed fee: $100,000 Benefit/cost sharing: 80% / 20% Price ceiling: $1,200,000 Which is the PTA (= point of total assumption, break point) of the project? A. $1,300,000 B. $1,500,000 C. $80,000 D. $1,125,000
D. $1,125,000 Chapter 9 - Quantitative Methods in Project Contracts, in: Quantitative Methods in Project Management by John Goodpasture http://pmi.books24x7.com/viewer.asp?bookid=8442&chunkid=845042298
You have been assigned as a project manager to a software project. While you and your team are working on a WBS (work breakdown structure), estimations for activity durations based on the activity list vary significantly. Which additional documents may help you clarify this situation? A. Milestone list and scope baseline. B. Project schedule network diagrams and human resource plan. C. Activity cost estimates and scope baseline. D. Activity attributes and project scope statement.
D. Activity attributes and project scope statement. PMBOK® Guide 4th Edition, p 51
A prime contractor in a customer project under CPFF contract has run into unexpected technical problems. Fixing them will require a lot of additional work to be done. The company made a decision to book more staff and equipment from their subcontractors in order to adhere to the agreed timeline. The customer agreed to this decision. What will most likely happen? A. The contractor's indirect costs will increase and the customer's payment for them will increase, too. B. The contractor's indirect costs will increase, but the customer's payment for them will not increase. C. The contractor's indirect costs will not increase, but the customer's payment for them will. D. Both the contractor's indirect costs and the customer's payment for them will not increase.
D. Both the contractor's indirect costs and the customer's payment for them will not increase. PMBOK® Guide 4th Edition, p 323
An accepted deadline for a project approaches. However, the project manager realizes only 75% percent of the work has been completed. The project manager then issues a change request. What should the change request authorize? A. Additional resources using the contingency fund B. Escalation approval to use contingency funding C. Team overtime to meet schedule D. Corrective action based on causes
D. Corrective action based on causes
Which tool and technique is used in the processes Create WBS and Define activities? A. Nominal group technique B. Human resource assignment C. Brainstorming D. Decomposition
D. Decomposition PMBOK® Guide 4th Edition, pp 116 and 133
A project manager has been asked to support an internal project request by developing a business case. What kind of information is the person expected to provide in the document? A. The detailed information from a business standpoint to determine whether bidding for the customer project will be successful. B. The detailed information from a project management standpoint to determine whether the project will be successful. C. The detailed information from a technical standpoint to determine whether the project will be successful. D. The necessary information from a business standpoint to determine whether the project is worth the investment.
D. The necessary information from a business standpoint to determine whether the project is worth the investment. Chapter 5 - Crafting Insightful Metrics, in: Managing Six Sigma: A Practical Guide to Understanding, Assessing, and Implementing the Strategy That Yields Bottom-Line Success by Forrest W. Breyfogle III, James M. Cupello and Becki Meadows http://pmi.books24x7.com/viewer.asp?bookid=7255&chunkid=0788075441
TT of Define Activities
DERT: - Decomposition - EJ - Rolling wave planning - Templates
TT of Identify Risks ?
DICE ADS: - Document reviews - Information Gathering techniques - Checklist analysis - EJ - Assumptions analysis - Diagramming techniques - SWOT analysis
TT of Sequence Activities ?
DPSA - Dependency determination - Precedence diagramming (PDM) - Schedule network template - Applying leads and lags
TT of Perform Quantitative Risk Analysis ?
DQE: - Data gathering and presentation techniques - Quantitative risk analysis and modeling techniques - EJ
What does a milestone chart show?
Dates of significant events on the project
Preventive Action
Dealing with anticipated or possible deviations. Preventive changes that change the project management plan or baselines, etc - would require a formal change request
Purpose of Plan Risk Management process ?
Define how to conduct risk management activities for a project
Project scope
Defines all of the work, and only the required work, to complete the project objectives.
Product scope
Defines the product or service that will come about as a result of completing the project.
28. What does Variable data measure?
Degree of Conformance or Degree of Non Conformance (range of possible values)
What are the outputs for the direct and manage projection execution process?
Deliverables Work performance information Change request Project management plan updates Project documents update
38. What are the key outputs of Direct & Manage Project Execution?
Deliverables, Work Performance Information
Project requirements
Demands set by the client, regulations, or the performing organization that must exist for the project deliverables to be acceptable.
Which Project Human Resource Management process occurs in the Planning Process Group
Develop Human Resource Plan
Which Project Integration Management process occurs in the Initiating Process Group
Develop Project Charter
What are the Project Integration Management processes
Develop Project Charter Develop Project Management Plan Direct and Manage Project Execution Monitor and Control Project Work Perform Integrated Change Control Close Project or Phase
In which Process Group does each Project Integration Management process fit
Develop Project Charter - Initiating Develop Project Management Plan - Planning Direct and Manage Project Execution - Executing Monitor and Control Project Work - Monitoring and Controlling Perform Integrated Change Control - Monitoring and Controlling Close Project or Phase - Closing
Planning ( Project Integration)
Develop Project managment plan
Executing ( Project Human resource Mgt) 9.3
Develop Project team
Planning ( Project Time mgt) 6.5
Develop Schedule
Intiating ( Project integration) 4.1
Develop a Project charter
Planning ( Project Human Resource mgt)
Develop human resource plan
What is Checklist analysis (TT)?
Develop/Look at checklist from/in: - RBS (fr. Plan Risk Management) - Similar projects
12. What is Life Cycle Cost?
Developmental Cost + Maintenance & Operational Cost
Variance at Completion (VAC)
Difference of the Budget to Completion (BAC) and the Estimate at Completion (EAC). Will show how much projected over or under budget VAC = BAC - EAC
42. What are different stages of team development?
Different stages of team development are Forming, Storming, Norming, Performing and Adjourning.
35. What are types of contracts?
Different types of contracts are Fixed Price, Cost-Reimbursable, Time and material.
44. List different types of power?
Different types of power are Reward power, Coercive (penalty) power, Legitimate power, Referent power and Expert power.
What are the 4 different types of costs?
Direct Cost, Indirect Cost, Fixed Cost, Variable cost
What is the difference between the 4 types of costs?
Direct costs are spent only on project work Indirect Costs are needed for the project but not restricted to it Fixed Costs is consistent on a project regardless of how many are used Variable Costs fluctuates with what is produced.
Excuting ( Project Communication Mgt) 10.3
Distribute communication
Requirements documentation
Documentation of what the stakeholders expected in the project defines all of the requirements that must be present for the work to be accepted by the stakeholders.
Change control system (CSS)
Documented in the scope management plan, this system defines how changes to the project scope may be allowed.
How would you best describe the aspirational requirement related to responsibility
Doing what you say you will do
To Complete Performance Index (TCPI)
Effiency indicator that shows how much effiency is needed from remaining resources to meet cost goals and finish on budget TCPI = (Budget at Completion (BAC) - Earned Value (EV)) / (Budget at Completion (BAC) - Actual Cost (AC))
What is the Cost Performance Index (CPI) formula and what does it mean?
EV/AC - indicator that shows how much was returned for every dollar spent at a current point in time 1.0 = On track or dollar for dollar > 1.0 = Under budget and getting more for ever dollar spent < 1.0 = Over budget and getting less for every dollar spent
Schedule Performance Index (SPI) formula and what does it mean
EV/PV - indicator that shows the amount of work done at single point in time 1.0 = On track >1.0 = better then expected <1.0 = Less then expected
What is Risk Audit (TT)?
Examine, document the effectiveness of risk responses and Risk management process
What is Expectancy Theory ?
Employees who believe their effort will lead to effective performance and who expect to be rewarded for their accomplishments will remain productive as rewards meet their expectations
2. When should Close Project or Phase be conducted?
End of project; End of each phase, and at project termination
What are the 3 processes of Project Cost Management
Estimate Costs Determine Budget Control Costs
Processes in Cost Management Knowledge Area
Estimate Costs - Planning Determine Budget - Planning Control Costs - Monitoring&Controlling
Estimate to Complete (ETC)
Estimate on what is needed to finish the project based on the current spending ETC = Estimate at Completion (EAC) - Actual Cost (AV)
Who will be the estimators ?
Estimators should be those who will be doing the work, when possible
Ethics and professional responsibility questions make up 10%
Ethics and professional responsibility questions make up 10%
57. What is Ethnocentrism?
Ethnocentrism refers to belief that ones culture is superior to other cultures.
What is Alternative Analysis ?
Evaluation of different resource types, financial comparison between staffing or outsourcing, renting versus leasing, and building versus buying ,...
How does PMBOK define verification
Evaluation of whether or not a product, service, or system complies with a regulation, requirement, specification, or imposed condition
60. What are responsibilities of risk owner?
Every risk should have a risk owner listed in the register. That person is responsible for keeping the response plan up to date and make sure the right actions are taken if the risk does occur.
Participants in Identify Risks process ?
Everyone
When running a project as a project manager, what should you focus on during the executing process? A. Doing project work B. Coordinating people and resources C. Ensuring accountability for errors D. Avoid third-party influence
Executing Answer: B. Coordinating people and resources Reference: PMBOK® Guide 4th Edition, page 55.
Which is not a type of project review meeting? A. Team review meetings B. Project status meetings C. Executive management review meetings D. Customer review meetings
Executing Answer: B. Project status meetings Reference: Project Management, A Systems Approach to Planning, Scheduling and Controlling by H. Kerzner, 10th edition, page 243, pmi.books24x7.com/viewer.asp?bookid=32027&chunkid=0771148236.
When you perform quality assurance in your project, which technique could you typically use? A. Code review B. Quality audit C. Inspection D. Scope verification
Executing Answer: B. Quality audit References: PMBOK® Guide 4th Edition, pages 204, 440.
During execution of a project, you observe that the performance of some of your team members is dropping, while others are doing a consistently good job. What should you try first to bring the team as a whole back to performance? A. Organize a team meeting and discuss openly the bad performance of the weak team members. Try to find a joint solution during the meeting. B. Introduce a competitive incentive system with a bonus for the 20% of your team which is performing better than the other 80%. C. Do not interfere, but give the team some time to organize, and sort the problem out by low-level conflict management. D. Introduce a system of formal and informal performance appraisals, research causes for bad performance and solicit mutual feedback.
Executing Answer: D. Introduce a system of formal and informal performance appraisals, research causes for bad performance and solicit mutual feedback. Reference: PMBOK® Guide 4th Edition, page 238.
During a meeting, a discussion came up: To which degree does your project have to be compliant to the processes enumerated in the PMBOK® Guide? What should be the guiding principle to answer this question? A. The processes are meant as rough guidelines to which a team should only adhere if there is enough consensus. B. The more processes the project team follows, the better the project's performance will be. C. The project manager must follow all 42 processes for project management without alterations. D. The project team must select appropriate processes required to meet the project requirements.
Executing Answer: D. The project team must select appropriate processes required to meet the project requirements. Reference: PMBOK® Guide 4th Edition, page 37.
What is important for quality auditors? A. They must be in-house personnel. B. They must be third-party staff. C. They must be mandated by the auditee. D. They must be properly trained.
Executing Answer: D. They must be properly trained. Reference: PMBOK® Guide 4th Edition, page 204.
27. What is Halo Effect?
Extending the impression of a particular outstanding trait to influence the total judgment of a person. Ex: Tech Architect to project manager
How do you calculate Future Value (FV)?
FV= PV * (1+r)^n
Future Value Formula
FV=PV*(1+r)^n
What are the most effective means of communication and resolving issues with stakeholder ?
Face to Face meeting
18. The PM's leadership role in the middle of a project could be described as 1 of these 2 roles?
Facilitating and Coaching
How many Process Groups exists?
Five (5)
Which contract type is the riskiest for Seller?
Fixed price
What is the Project Management Plan
Formal, written communication that requires formal approval. It is a single document covering MULTIPLE component areas that can be improved individually and then combined into a single artifact. It defines how the project is managed and controlled. All components are not require and most components are developed in other processes. This incorporates scope & timing and how changes are handled. Components include: Change Management Plan (who approves changes, how they are routed, how that change impacts deliverables); Configuration Management Plan (what versions are the latest versions); Scope Management Plan; Schedule Management Plan; Cost Management Plan; Quality Management Plan; Process Improvement Plan; Human Resources Plan; Communications Management Plan; Risk Management Plan; Procurement Management Plan; Requirements Management Plan; Scope Baseline; Cost Performance Baseline; Schedule Baseline
6. What are the stages of Team Development?
Forming, Storming, Norming, Performing followed by adjourning
How many processes exist?
Forty Two (42)
Which knowledge area do you Acquire the Project Team?
Human Resources
Planning ( Project Risk Mgt) 11.2
Identify Risk
Why is the composite organizational structure considered somewhat of a hybrid
In this type of structure, one project may be organized in a functional manner, another using matrix or projectized type of structure. In addition, composite structure could have a separate silo for proj mgmt working alongside resources from other silos who are also managing projects
Deviation from Baseline are often due to what ?
Incomplete identification of Risk and Risk Management --> Review the Project Risk Management Processes
ITTOS of Sequence Activities
Inputs: - Activity list - Activity attributes - Milestone list - Project Scope Statement - OPA Output: - Project Schedule Network diagram - PD updates TT: DPSA
ITTOS of Estimate Activity Resource ?
Inputs: - Activity list - Activity attributes - Resource calendar - OPA EEF Outputs: - Activity resource requirement - Resource breakdown structure - PD updates TT: APE BP
You are just leaving a meeting during which you have been assigned as the manager of a project to build a sub-station that is part of a major electric power distribution system. The decision to run the project has been made before your assignment and without your involvement. Some basic decisions on deliverables, staffing, budgeting and on the completion date have already been made as well. What should you do first? A. Obtain a project charter which links the project to the strategy and ongoing work of the organization and documents the initial decisions. B. Create a project schedule for your project which shows all major milestones and deadlines linked with them. Then try to obtain approval for the schedule. C. Start developing a detailed risk register which includes identified risks with their qualitative and quantitative assessments and a response plan. D. Start the quality assurance process by developing test procedures for the final deliverable and defining metrics against which the tests will be performed.
Initiating Answer: A. Obtain a project charter which links the project to the strategy and ongoing work of the organization and documents the initial decisions Reference: PMBOK® Guide 4th Edition, pages 74-77.
Some colleagues told you that they are planning, executing, monitoring and controlling a project by use of milestones only with durations between 1 and 4 weeks. What do you think? A. The approach is erroneous. A milestone is a significant point with zero duration to highlight achievements. B. It is a good approach as long as the milestones reflect fixed or imposed dates during the project lifecycle only. C. It is a good approach if the milestones are used for reviews between consecutive project phases only. D. It is a good approach because it saves from progress measurement on activities and work packages.
Initiating Answer: A. The approach is erroneous. A milestone is a significant point with zero duration to highlight achievements. Reference: PMBOK® Guide 4th Edition, page 136, 158, 438.
When identifying the basis of the business need for a project all of the following can be considered except____, A. regular plant maintenance B. market demands C. technological advances D. legal requirements
Initiating Answer: A. regular plant maintenance Reference: PMBOK® Guide 4th Edition, page 75.
Projects may be authorized by all of the following except____. A. the project team B. a sponsor C. a PMO D. a portfolio review board
Initiating Answer: A. the project team Reference: PMBOK® Guide 4th Edition, page 74.
ITTOS of Close Project or Phase ?
Inputs: - PMP - Accepted Delivrables - OPA Outputs: - Final product, service or result transition - OPA updates TT: EJ
Projects frequently do not meet customer expectations for which of the following reasons? A. Poor risk management by the contractor running the project B. Poor technical ability of the contractor running the project for the customer C. Technical inability and poor risk management by the contractor D. Unclear scope definition by the customer for whom the project is performed
Initiating Answer: C. Technical inability and poor risk management by the contractor Reference: Project Management, A Systems Approach to Planning, Scheduling and Controlling by H. Kerzner, 10th edition, page 65, pmi.books24x7.com/viewer.asp?bkid=32027&destid=118#118.
What are the ittos for Control Costs?
Inputs: Project management plan, project funding requirements, work performance information TT: Earned Value Measurement, Forecasting, T0-Complete Performance Index (TCPI), Performance reviews, Variance analysis, PM Software Outputs: Work Performance Measurement, Budget Forecasts, Change Requests, Project Managment Plan updates, Organizational Process Assets Updates, Project Document Updates
what are the ittos for Estimate Cost?
Inputs: Scope baseline, project schedule, human resource plan, risk register TT: Expert judgement, Parametric Est., 3-point Est, Analogous Est. Bottom-up Est, Reserve Analysis, Vendor Bid Analysis, Cost of Quality, PM Estimate Software Outputs: Activity cost est., Basis of est.
What are the ittos for Estimate Costs?
Inputs: Scope baseline, project schedule, human resource plan, risk register, enterprise environmental factos, organizational process assets TT: Expert Judgement, Analogous estimating, Parametric estimating, Bottom-up estimating, Three-point estimating, Reserve Analysis, Cost of quality, Project management estimating software, Vendor bid analysis Output: Activity cost estimates, Basis of estimates, Project document updates
What is Interviewing (TT) ?
Interview project participants, stakeholders, experts to identify risk
What are the 4 phases of the product life cycle
Introduction Growth Maturity Decline
Role of Portfolio Manager
Is responsible for governance at an executive level of the projects or programs that make up a portfolio
Role of Program Manager
Is responsible for managing a group of related projects
16. Does the Performance Measurement Baseline change?
It is never expected to change unless there is an approved change request
37. What is the role of the Distribute Information Process?
It is the implementation of the communications management plan. Make relevant information available to stakeholders.
35. What is the objective of a Quality Audit?
It is to identify inefficient & ineffective processes.
Describe the importance of the project charter
It officially starts the project (project doesn't exist without it). It is VERY important because it is one of the first processes performed and it gives the PM their authority on the project. ON TEST It is signed by senior management. It names the project manager and gives the PM authority to direct the project. It includes high-level requirements and milestones of the schedule as well as a preliminary budget. The project charter is the document that officially recognizes and acknowledges that a project exists. It dedicates the organization's resources to the project, names the project manager, and describes the goals and deliverables of the project.
24. Utilizing minimum Inventory that allows an organization to produce only what is needed, when it is needed, to satisfy immediate customer requirements is called?
Just in Time (JIT)
15. What is Kaizen approach?
Kaizen approach is Continuous improvement
6. What are examples of Mathematical Models?
Linear, Multi-objective, integer and dynamic programming (recent interpretations by PMI have also added decision trees as examples of mathematical models)
31. What is Laissez Faire?
Little or no information exchange takes place between PM and the project group. Team has ultimate authority on final decision, hand - off attitude on the part of the PM
What is Acquisition ?
Looking outside of the organization for resources when they cannot be provided by your organization (Ex: Hire individual consultants, subcontract work to other organization, ...)
Management Framework
Management Framework
7. What is management reserve?
Management Reserve to cover unknown unknowns (unknown risks)
Who approve Project Management Plan ?
Management, Sponsor, Project team and other Key Stakeholders
53. What is marginal analysis?
Marginal analysis - The best level of the quality is reached at the point where the incremental revenue being gained from improvements equals the incremental cost being spent to secure it.
43. What is Maslow's hierarchy of needs (from bottom to top)?
Maslow's hierarchy of needs from bottom to top are Physiological needs, safety needs, social needs, self esteem needs and self actualization needs.
Project objectives
Measurable goals that determine a project's acceptability to the project client and the overall success of the project.
A run chart is a useful tool to show... A. ...patterns and trends in a row of data points. B. ...behavior of data points against control criteria. C. ...behavior of data points against specifications. D. ...the error margin of a sample versus a whole population.
Monitoring and controlling Answer: A. ...patterns and trends in a row of data points. Reference: PMBOK® Guide 4th Edition, page 211.
You are the project manager for the development of a new type of power plant. Your project is making fast progress, and it is getting nearer to the day of product acceptance. Which technique will be most important for product acceptance? A. Inspection B. Quality audit C. Impact analysis D. Team review
Monitoring and controlling Answer: A. Inspection Reference: PMBOK® Guide 4th Edition, page 436.
What is the five whys method used for? A. Root cause analysis B. Identification of random causes C. Identification of special causes D. Identification of causes of conflicts
Monitoring and controlling Answer: A. Root cause analysis Reference: Managing Six Sigma: A Practical Guide to Understanding, Assessing, and Implementing the Strategy That Yields Bottom-Line Success by Forrest W. Breyfogle III, James M. Cupello and Becki Meadows, page 112, pmi.books24x7.com/viewer.asp?bkid=7255&destid=276&term=%22Five+whys+%22#276.
A project has undergone a major scope change, which increased cost and work levels. What does this mean for earned value data? A. The cost baseline will be updated and the new baseline will be the basis for future earned value analysis. B. As baselines should generally not be adjusted, the project is due to exceed its budget from now on. C. There are several reasons to change a baseline, but not scope changes. The project will exceed its budget. D. Earned value analysis becomes useless after a scope change, the technique should not be used any more.
Monitoring and controlling Answer: A. The cost baseline will be updated and the new baseline will be the basis for future earned value analysis. Reference: PMBOK® Guide 4th Edition, page 188.
Which of the following are not common barriers to project team building? A. Differing outlooks, priorities, and interests B. Role conflicts C. Excessive team member commitment D. Unclear project objectives/outcomes
Monitoring and controlling Answer: C. Excessive team member commitment Reference: Project Management, A Systems Approach to Planning, Scheduling and Controlling by H. Kerzner, 10th edition, page 206, pmi.books24x7.com/viewer.asp?bkid=32027&destid=335#335.
During Planning processes, you used Monte Carlo simulation to quantitatively assess cost and schedule risks of your project. Now, during Risk monitoring and control, you repeat the technique, and it leads to different results. What should not be the reason for that? A. Some assumptions during planning have meanwhile become fact-based knowledge, so that the risks related to them have vanished or have become certain problems. B. New risks may have been identified. These influence the input data used for Monte Carlo simulation in a way which was not predictable at the time when the simulation was run. C. Some constraints have been identified originally, but their influence on the project was unclear when the simulation was run for the first time. By now, the team understands these constraints much better and has been able to adjust the simulation. D. Some dummy activities in the network logic have an element of uncertainty, which gets bigger over time. While the project proceeds, it is getting even harder to predict how the team members assigned to them will perform.
Monitoring and controlling Answer: D. Some dummy activities in the network logic have an element of uncertainty, which gets bigger over time. While the project proceeds, it is getting even harder to predict how the team members assigned to them will perform. Reference: PMBOK® Guide 4th Edition, page 308.
A customer is requiring a minor scope change and expects you to do this without delays and additional costs. You believe that you have adequate authorization to make the decision by yourself, but you are not quite sure. What should be your next steps? A. A requested change is always an opportunity to get more money paid by the customer and to secretly solve schedule and quality problems. You should make some reasonable estimates on time, costs, risks etc. and then add a nice margin on top of that to calculate the new price. B. Customer satisfaction is your top priority. The customer gives you an opportunity to increase their satisfaction, which you should use to the maximum benefit. Most project managers have contingencies to cover risks; these can be used to pay the additional costs. C. Before making a decision you should have a look at the customer's parking lot. If you find there many expensive, new models, it is likely that you can use the requested change to increase the profit from the contract. Otherwise you should reject the request. D. Handle the request according to the integrated change control processes described in your management plans. Then make a decision together with the appropriate change control body, whether the increased customer satisfaction will be worth the extra costs, work, risks etc.
Monitoring and controlling Answer: D. Handle the request according to the integrated change control processes described in your management plans. Then make a decision together with the appropriate change control body, whether the increased customer satisfaction will be worth the extra costs, work, risks etc. Reference: PMBOK® Guide 4th Edition, page 93.
How to Calculate Communication Channels ?
N(N-1)/2 N=number of people
25. What is David McClelland Theory/Achievement Theory?
N-ACH, Need Achievement = Desire to do a good job; N-Power; Need Affiliation (at least 1 need should be met)
TT of Develop Human Resource Plan ?
POON: - Position description - Organizational Chart - Organization Theory - Networking
TT of Perform Quality Assurance ?
PPPQ: - Plan Quality TT - Perform Quality Control TT - Process Analysis - Quality Audits
Formula of Point of Total Assumption ?
PTA=(Ceiling price - Target price)/Buyer's share ratio + Target cost - Used in fixed price incentive fee contract (FPIF) - Ceiling price: highest price buyer will pay - Target price = Target cost + Target fee, is the expected price (from buyer's point of view) - Sharing ratio: describe how the cost saving or cost overrun will be shared (buyer/seller)
3. Which one of the 7 basic tools of quality rank orders to guide corrective action?
Pareto Chart
32. What is pareto chart?
Pareto chart is type of histogram ordered by frequency of occurrence. It shows how many defects were generated by type of category of identified cause.
33. What are the 3 key tools & techniques for Administer Procurements?
Payment System, Contract Change Control and Procurement Performance Reviews
What is Project Charter ?
Project Charter documents: - Business Needs - Current Understanding if customer's needs - Description of product/service/result that it is intended to satisfy
What is DavidMcClelland's Theory of Needs (Acquired Needs Theory) ?
People are most motivated by one of three needs (Achievement, Affiliation, Power) and would be managed differently according to the list they fall into - Achievement: like recognition, should be given project that are challenging but are reachable - Affiliation: seek approval rather then recognition, work best when cooperating with others - Power: like organize and influence others, is socially oriented, are effective leaders and should be allowed to manage others
Monitoring Control ( Project Integration mgt ) 4.5
Perform Integrated change control
Planning ( Project Risk Mgt) 11.3
Perform Qualitative analysis
36. Process Analysis & Continuous improvement is part of?
Perform Quality Assurance
1. Monitoring specific project results to determine if they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory results is the definition of?
Perform Quality Control
Which Project Quality Management process occurs in the Monitoring and Controlling Process Group
Perform Quality Control
Executing ( Project Quality Mgt) 8.2
Perform Quality assurance
Monitoring Control ( Perform Quality Control ) 8.3
Perform Quality control
42. The approved plan for project work that is used in EVM is:
Performance Measurement Baseline
26. What are Maslow Hierarchy of needs?
Physiological, Safety, Social, Self Esteem, Self Actualization
Which Project Communications Management processes occur in the Planning Process Group?
Plan Communications
Planning ( Project Procurement ) 12.1
Plan Procurement
11. Development of evaluation criteria occurs in which process?
Plan Procurements
What are the 4 processes of Project Procurement Management
Plan Procurements Conduct Procurements Administer Procurements Close Procurements
Planning ( Project Quality Mgt) 8.1
Plan Quality
Which Project Quality Management process occurs in the Planning Process Group
Plan Quality
Which Project Risk Management processes occur in the Planning Process Group
Plan Risk Management Identify Risks Perform Qualitative Risk Analysis Perform Quantitative Risk Analysis Plan Risk Responses
PLanning ( Project Risk Mgt) 11.5
Plan Risk response
Planning ( Project communication Plan Mgt)
Plan communication
Planning ( Project risk Mgt) 11.1
Plan risk Mgt
What is Contingency Plan ?
Plan to be executed if Risk Response fails, means if Opportunity or Threat occurs
"How much work should be done" has what earned value name?
Planned value
What is Work Performance Measurements ?
Planned vs Actual performance --> input for Report Performance and communicated to stakeholders
Which Process group is conducted in order?
Planning
Which process group is performed in order?
Planning
Which process group represents 50% of the project managment processes?
Planning
Crashing describes a technique to speed up a project by... A. ...reallocating existing resources or assigning additional resources to the project. B. ...overlapping activities which were originally planned to be done in sequence. C. ...reducing the number of features of the product in order to reduce development work. D. ...reducing the duration estimates for activities to increase the pressure applied to the staff.
Planning Answer: A. ...reallocating existing resources or assigning additional resources to the project. Reference: PMBOK® Guide 4th Edition, page 431.
A management point in a work breakdown structure (WBS) used to consolidate and process work package data and forward the results to the project manager is called A. Control account B. Chart of accounts C. Control limit D. Account limit
Planning Answer: A. Control account Reference: PMBOK® Guide 4th Edition, page 121.
Which statement describes best the term sink node? A. It is a node in a WBS, where several branches are brought back together. B. It is a node in a conditional network diagram, at which it becomes deterministic. C. It is a node in a decision tree, showing various branches with the same chance. D. It is a node in a network logic diagram which has multiple predecessors.
Planning Answer: D. It is a node in a network logic diagram which has multiple predecessors. Reference: Larry Richman, Improving Your Project Management Skills, page 92, pmi.books24x7.com/viewer.asp?bkid=11941&destid=216&term=sink+node#216.
An organization is considering various contract types in order to motivate sellers and to ensure preferential treatment. What should they consider before deciding to use an award fee contract? A. Payment of an award fee would be linked to the achievement of objective performance criteria. B. Any unresolved dispute over the payment of an award fee would be subject to remedy in court. C. Payment of an award fee would be agreed upon by both the customer and the contractor. D. Payment of an award fee is decided upon by the customer based on the degree of satisfaction.
Planning Answer: D. Payment of an award fee is decided upon by the customer based on the degree of satisfaction. Reference: PMBOK® Guide 4th Edition, page 324.
Which is typically not specified in a document referred to as activity attributes? A. The person executing the work in a schedule activity B. Schedule activity identifiers, codes and descriptions C. Schedule activity predecessors and successors D. The cost baseline assigned to the schedule activity
Planning Answer: D. The cost baseline assigned to the schedule activity Reference: PMBOK® Guide 4th Edition, page 136.
_______ are not necessarily used to establish the cost baseline of a project. A. Schedule activity or work package cost estimates B. The work breakdown structure and WBS dictionary C. The project schedule and resource calendars D. The risk breakdown structure and the risk register
Planning Answer: D. The risk breakdown structure and the risk register Reference: PMBOK® Guide 4th Edition, page 175.
3. What is a portfolio?
Portfolio is group of projects or programs (may or may not be dependent). They are grouped together for effective management.
19. What are the two most important tools used to identify stakeholder impact?
Power/Interest Grid and Salience Model (power, urgency, and legitimacy)
10. What is the key distinction between precision and accuracy?
Precision is consistency and Accuracy is correctness
22. Difference between precision and accuracy?
Precision is values of repeated measurements are clustered and have little cluster. Accuracy is measured value is close to true value.
Economic Models
Present Value (PV) - present value of money is less than it WILL be Net Present Value (NPV) - present value of total benefits minus cost over many time periods Internal Rate of Return (IRR) - rate at which the inflows & outflows are equal Payback Method - time to recoup investment Cost Benefit Analysis - CBA
Detailed Process to make change
Prevent root cause of changes Identify change Look at the impact of the change Create a change request Perform Integrated Change Control (assess by change BOARD, look for options, approve/reject & update the status) Adjust project management plan, project documents & baselines Manage expectation by communication to the stakeholders of the change
45. What conflict management technique is known as a Win-Win method; and is considered to be the best method to use?
Problem Solving or Confronting?
29. How to interpret control chart?
Process is considered out of control when a data point in control chart exceeds control limit or if seven consecutive points in control chart are above or below (i.e on one side) of the mean.
What is Develop Project Management Plan ?
Process of documenting the actions necessary to define, prepare, integrate and coordinate all subsidiary plans
List Process, Process Group & Knowledge Area for Close Project or Phase
Process: Close Project or Phase Process Group: Closing Knowledge Area: Integration Management
List Process, Process Group & Knowledge Area for Develop Project Charter
Process: Develop Project Charter Process Group: Initiating Knowledge Area: Integration Management
List Process, Process Group & Knowledge Area for Develop Project Management Plan
Process: Develop Project Management Plan Process Group: Planning Knowledge Area: Integration Management
List Process, Process Group & Knowledge Area for Direct & Manage Project Execution
Process: Direct & Manage Project Execution Process Group: Executing Knowledge Area: Integration Management
List Process, Process Group & Knowledge Area for Monitor & Control Work
Process: Monitor & Control Work Process Group: Monitoring & Controlling Knowledge Area: Integration Management
List Process, Process Group & Knowledge Area for Perform Integration Change Control
Process: Perform Integration Change Control Process Group: Monitoring & Controlling Knowledge Area: Integration Management
25. Difference between product scope and project scope?
Product scope means the features and functions of the product or service being built. Project scope means the work that's needed to build the product.
Which is generally not regarded as one of the three categories of culture that managers should master? A. National culture B. Organizational culture C. Project culture D. Functional culture
Professional and social responsibility Answer: 3 Reference: Mastering Virtual Teams: Strategies, Tools, and Techniques That Succeed by Deborah L. Duarte and Nancy Tennant Snyder, Second Edition, page 55, pmi.books24x7.com/viewer.asp?bookid=8104&chunkid=761438925.
Respect is... A. ...a duty to show a high regard for oneself, others, and the resources entrusted. B. ...a limitation to trust, confidence and performance excellence through cooperation. C. ...accepting a level of information which may lead to disrespectful behavior. D. ...limited to respecting the physical and intellectual property rights of others.
Professional and social responsibility Answer: A. ...a duty to show a high regard for oneself, others, and the resources entrusted. Reference: PMI Code of Ethics and Professional Conduct, page 3 (pmi.org/About-Us/Ethics/~/media/PDF/Ethics/ap_pmicodeofethics.ashx).
Understanding cultural key similarities and differences is especially important for... A. ...globally dispersed, cross-cultural and virtual teams. B. ...culturally homogeneous, co-located teams. C. ...project sub-teams and work cells. D. ...teams under high budget and schedule pressure.
Professional and social responsibility Answer: A. ...globally dispersed, cross-cultural and virtual teams. Reference: Mastering Virtual Teams: Strategies, Tools, and Techniques That Succeed by Deborah L. Duarte and Nancy Tennant Snyder, Second Edition, page 68, pmi.books24x7.com/viewer.asp?bookid=8104&chunkid=0221949223.
You gathered a lot of knowledge on project management in your business life. What is an appropriate use for that? A. Share your knowledge with the professional community in form of books, articles, lectures, seminars etc. B. It is your knowledge, and it has a high market value. You may consider it your intellectual property, which you keep secret. C. There are better project managers somewhere in this world. They should help developing the professional community. D. Your job is managing projects for your customers. You should not worry about other project managers.
Professional and social responsibility Answer: A. Share your knowledge with the professional community in form of books, articles, lectures, seminars etc. Reference: PMP Handbook, pages 27-29, chapter: Professional Development Units (PDUs), categories 2-5 (pmi.org/Certification/~/media/PDF/Certifications/pdc_pmphandbook.ashx).
What are the organizational characteristics of a functional structure
Proj mgr authority - little or none Resource availability - little or none Budget controlled by - functional manager Role of the project manager - part-time Project management administrative staff - part-time
As a leader, how should you deem ethical conduct? A. You should ensure ethical conduct throughout the team by use of means including recognition and awards and in tight cooperation with the team members' line managers. B. Ethical conduct is all right as long as it does not impact the achievement of objectives and does not damage the performing organization's immediate options for profits. C. You are the role model for the team. Your personal integrity demonstrates the desired skills, behavior, and attitudes whose adoption may benefit team members. D. There are often dilemma situations in business. Then you may have to suspend your integrity and do what is appropriate. There may be long term negative effects, but these are not your responsibility
Professional and social responsibility Answer: C. You are the role model for the team. Your personal integrity demonstrates the desired skills, behavior, and attitudes whose adoption may benefit team members. Reference: Leadership Skills for Managers, Fourth Edition by Charles M. Cadwell, page 11, pmi.books24x7.com/assetviewer.aspx?bkid=11513&destid=58&term=}as+challenge+of +leadership#58.
As a project manager, you must demonstrate transparency regarding... A. ...confidential information. B. ...proprietary information. C. ...distribution of unproven information and gossip. D. ...your decision-making processes.
Professional and social responsibility Answer: D. ...your decision-making processes. Reference: PMI Code of Ethics and Professional Conduct, page 4 (pmi.org/About- Us/Ethics/~/media/PDF/Ethics/ap_pmicodeofethics.ashx).
As a project manager, when should you especially consider cultural differences? A. When you break down scope to create a work breakdown structure (WBS). B. When you assign a human resources to do the work in a schedule activity. C. When you develop acceptance criteria for work results to be achieved by the team members. D. When you decide upon recognition and awards during team development.
Professional and social responsibility Answer: D. When you decide upon recognition and awards during team development. Reference: PMBOK® Guide 4th Edition, page 234.
Three-point estimates (PERT) ?
Program Evaluation and Review Technique - Expected Activity Duration EAD = (P +4M +O)/6 - Activity Standard Deviation SD = (P-O)/6 - Activity Variance AV = SD^2
What is Three-point estimates (PERT) ?
Program Evaluation and Review Technique - Expected Activity Duration EAD = (P +4M +O)/6 - Activity Standard Deviation SD = (P-O)/6 - Activity Variance AV = SD^2
2. What is a program?
Program is group of related projects
15. What links the project to the ongoing work of the organization?
Project Charter
What is Project Integration Management's objective ?
Project Integration Management includes the processes and activities needed to identify, define, combine, unify, and coordinate the various processes and project management activities within the Project Management Process Group
What are the 9 project management Knowledge Areas
Project Integration Mgmt Project Scope Mgmt Project Time Mgmt Project Cost Mgmt Project Quality Mgmt Project Human Resource Mgmt Project Communications Mgmt Project Risk Mgmt Project Procurement Mgmt
7. Inputs to Close Project or Phase include these 3:
Project Management Plan, Accepted Deliverables, and OPA's
2. Whose responsibility is it to Develop the Project Team?
Project Manager
53. Who is responsible for Managing Stakeholder Expectations?
Project Manager
Who is responsible for delivering the required levels of both quality and grade ?
Project Manager and Project Management Team
56. What are the 3 key tools & techniques of Manage Project Team?
Project Performance Appraisals, Conflict Management, Issue Logs
What is EAC (Estimate at Completion) and what does it mean?
Projected final cost on current current spending efficency (CPI) EAC = Budget at Completion (BAC)/ Cost Performance Index (CPI)
Denote the decision criteria for NPV
Projects with an NPV greater than zero should be accepted, and those with an NPV less than zero should be rejected.
Denote the decision criteria for IRR
Projects with high IRR values should be accepted over projects with lower IRR values. IRR is the discount rate when NPV is equal to zero, and IRR assumes reinvestment at the IRR rate.
15. Who bears most of the actual effort in the Conduct Procurements process?
Prospective Sellers
14. Project Managers role in Procurement Negotiations is to?
Protect the Relationship between buyer and seller
12. What type of contract is purchase order?
Purchase order is fixed price type contract
What is Maslow's Hierarchy of Needs ?
Pyramid of need showing how people are motivated and that one cannot ascend to the next level until the levels below are fulfilled. - Self actualization (self-fulfillment, growth, learning) - Esteem (accomplishment, respect, attention, appreciation) - Social (Love, affection, approval, friends, association) - Safety (Security, stability, freedom from harm) - Physiological (Need for air, water, food, housing, clothing)
34. What is the key tool and technique in Perform Quality Assurance?
Quality Audit
What is quality ?
Quality is defined as the degree to which the project fulfills requirements
23. Difference between quality and grade?
Quality is degree to which a set of inherent characteristics fulfill requirements. Grade is category assigned to products or services that have the same functional use but different technical characteristics. Low quality is not acceptable, but low grade may be acceptable.
16. Quality is management problem is mentioned by?
Quality is management problem is mentioned by Deming
Definition of Quality Management ?
Quality management includes creating and following policies and procedures to ensure that a project meets the defined needs it was intended to meet from the customer's perspective
What is Prevention over Inspection ?
Quality must be planned in, not inspected in
TT of Monitor and Control Risks ?
R3 VeST: - Risk reassessment - Risk audits - Reserve analysis - Variance and trend analysis - Status meetings - Technical performance measurements
TT of Perform Qualitative Risk Analysis ?
R4PE: - Risk Probability and Impact assessment - Probability and Impact matrix - Risk data quality assessment - Risk categorization - Risk urgency assessment - EJ
5. What are examples of Benefit Measurement methods?
ROI, IRR, Payback Period, Opportunity Cost etc
Monitoring Control ( Project Communication Mgt) 10.5
Reporting Performance
46. Mention some sources of conflicts?
Resources, schedules and priorities cause 50% of project problems and conflicts. Schedule is the biggest source of conflict.
What are the 4 values that the PMI considers most important for the project management profession
Responsibility Respect Fairness Honesty
Project Statement of Work purpose and content ?
SOW is a narrative description of products or services to be delivered by the project. Internal Project: provided by Prj sponsors/initiators External Project: provided by Customer (procurement documents) Content: - Business need - Product Scope description - Strategic Plan
Schedule Performance Index (SPI)
SPI=EV/PV
What is the Schedule Variance formula? How do you interpret the result?
SV = EV - PV Negative = Behind schedule Positive = Ahead of schedule
Schedule Variance (SV)
SV=EV-PV Negative: Behind Schedule Positive: Ahead Schedule
Baselines (Performance Measurement Baseline)
Scope Baseline: Project Scope Statement, WBS & WBS Dictionary Schedule Baseline: Agreed on schedule w/ start & stop dates Cost baseline: Time-phased cost budget & when the funds are available
Purpose of Scope Management ?
Scope management is the process of defining what work is required and then making sure all of that work - and only that work - is done
What are Project Constraints ?
Scope, Time, Cost, Quality, Resource, Risk, Customer Sastifaction
4. What are types of Benefit Measurement methods?
Scoring Models, Economic Models, Comparative Approaches
You are given added scope to your project. You determine it will add two weeks to the project duration. What do you do next
See how the proposed change impacts the prject cost, quality, risks, resources and possible customer satisfaction. A change to one of the project constraints should be evaluated against impacts on all of the other constraints.
50. A conflict management method that emphasizes commonalties and de-emphasized differences and is also known as lose - yield is called?
Smoothing
Risk averse
Some one who does not want to take risk >< risk prone
Marginal Analysis
Spend time on improvement if it improves revenues or productivity
What are Stakeholder analysis steps ?
Step 1: Identify all potential project stakeholders and relevant information (roles, departments, interests, knowledge levels, expectations, influence levels) Step 2: Identify the potential impact or support each stakeholder could generate, and classify them so as to define an approach strategy (classificiation models) Step 3: Assess how key stakeholders are likely to react or respond in various situations (develop strategy)
Fixed Price Economic Price Adjustment (PFEPA)
Take in account economic factor for contracts that exist for a multi-year period and there are uncertainties about future economic conditions
29. Define Autocratic?
The PM solicits little or no information from team. PM is sole decision maker
Acceptance
The act of approving the deliverables. Acceptance is usually performed by the project manager and the customer or sponsor at the end of the project, project phase, or at predefined milestones. Acceptance of the product, service or result is formal.
Describe and calculate payback period
The amount of time it will take the company to recoup its initial investment in the product of the project. It's calculated by adding up the expected cash inflows and comparing them to the initial investment to determine how many periods it takes for the cash inflows to equal the initial investment.
Budget to Completion means?
The amount you expect the project to cost
Value engineering
The approach to project scope statement creation attempts to find the correct level of quality in relations to a reasonable budget for the project deliverable while still achieving an acceptable level of performance.
Activity Attributes
The informational components that accompany each schedule activity. These may include information on dependencies, lead and lags, assignments, accountability, requirements, constraints and assumptions.
Activity List
The list of all scheduled activities to be performed, derived by decomposing the work packages into their schedule components. The activity list is a primary output of the Define Activities process.
What is the critical path?
The longest path in the network; the shortest time to complete the project
Passive observation
The observer records information about the work being completed without interrupting the process; sometimes called the invisible observer.
What is "initiator"
The person (or organization) with the ability to authorize the project
49. What is point of total assumption?
The point of total assumption is the point at which the seller assumes the costs. In a firm fixed price contract, this is the point where the costs have gotten so large that the seller basically runs out of money from the contract and has to start paying the costs.
Purpose of Integrated Change Control ?
The process of reviewing all change requests, approving changes and managing changes to: - the delivrables - OPA - Project Documents - PMP
What is Cost-Benefit Analysis ? (TT)
The project manager weights the benefits versus the cost of quality to determine the appropriate quality level and requirements for the project
45. If the claim extends to the end of the project what may result?
The project may be closed after agreeing to take the claim to litigation
52. What is scope baseline?
The scope baseline is made up of Project Scope Statement, WBS and the WBS Dictionary.
Mind mapping
This approach maps ideas to show the relationship among requirements and the differences between requirements.
Product scope description
This is a narrative on what the project is creating as deliverable for the project client.
Requirements Traceability Matrix (RTM)
This is a table that maps the requirements throughout the project all the way to their completion.
Functional analysis
This is the study of the functions within a system, project, or, what's more likely in the project scope statement, the product the project will be creating. It studies the goals of the product, how it will be used, and the expectations the client has of the product once it leaves the project and moves into operations.
what is Law of Diminishing Returns ?
This law states that after a certain point, adding more input will not produce a proportional increase in productivity
Systems engineering
This project scope statement-creation process studies how a system SHOULD WORK, designs and creates a system model, and then enacts the working systems based on the project's goals and the client's expectations. Aims to balance the time and cost of the project in relation to the scope of the project.
Configuration management plan
This subsidiary plan defines how changes to the features and functions of the project deliverables will be monitored and controlled within the project.
Requirements management plan
This subsidiary plan defines how changes to the project requirements will be permitted,, how requirements will be tracked, and how changes to the requirements will be approved.
Change management plan
This subsidiary plan defines how changes will be allowed and managed within the project.
What is the difference between tools and inputs
Tools are tangible items used in the performance of an activity to produce a result. Inputs are those items required by a process in order for that process to proceed.
Analogous estimating ?
Top down estimates - Calculate Activity duration based on previous similar activities. - Use Expert Judgment and Historical Information to predict the future - Less costly, less time consuming and less accurate - is used early in project when there is not much detail known about activities
What is Analogous estimating ?
Top down estimates - Calculate Activity duration based on previous similar activities. - Use Expert Judgment and Historical Information to predict the future - Less costly, less time consuming and less accurate - is used early in project when there is not much detail known about activities
How to calculate float ?
Total Float = LS - ES = LF - EF Free Float = EF (predecessor) - ES (successor)
What is Control Charts ?
UTILIZED in Perform Quality Control to help determine if the results of a process are within acceptable limits. - Upper & Lower Control Limit - Mean (Average) - Specification Limits (customer's expectation or contractual requirements) - Out of Control - Rule of Seven - Assignable Cause / Special Cause Variation
What is Uncertainty ?
Uncertainty is a lack of knowledge about an event that reduces confidence in conclusions drawn from the data. Investigation of uncertainties may help identify risks
Scope creep
Undocumented, unapproved changes to the project scope.
Affinity diagrams
When stakeholders create a large number of ideas, you can use this to cluster similar ideas for further analysis.
When does Close Project or Phase occur
When the work of the project or phase is complete When the work stops (before the work is complete)
17. A formal procedure for sanctioning project work to ensure that work is done at the right time and in the power sequence and helps the project manager control scope on the project is called:
Work Authorization System
18. The decomposition for the work to be executed by the project team, in order to accomplish the project deliverables and create the required deliverables is called:
Work Breakdown Structure
33. What is workaround?
Workaround is response to negative risk event. Differs from contingency plan in that workaround is not planned in advance.
A critical path activity will generally have how much float?
Zero
What is the duration of a milestone?
Zero
17. Zero defects/Do it first time is mentioned by?
Zero defects/Do it first time is mentioned by CrosbySquare - Decision node, Circle- Chance node, Triangle - end of branch.
Variance of an Activity
[ ( P - O) / 6 ] squared (standard deviation squared)
Communication Channels
[N * (N-1) ] / 2
What is a program?
a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually
39. Verify Scope is concerned with ______ of work results. Perform Quality Control is concerned with _______ of work results?
acceptance, correctness
What is a project management office?
an organizational body or entity assigned various responsibilities related to the centralized and coordinated mgmt of those projects under its domain
What is operations?
an organizational function performing the ongoing execution of activities that produce the same product or provide a repetitive service
What is Quality Control Measurements ?
are all the results of your inspection: the number of defects found, number of tests that passed or failed, ...
What is Resource Breakdown Structure ?
breaks the work down by type of resource
What is Stakeholder Register ?
contains all details related to the identified stakeholders including: - Identification Information (name, position, location, role, contact infor) - Assessment Information (requirement, expectation, potential influence, ...) - Stakeholder classification (internal/external, supporter/neutral/resistor, ...)
Name 10 types of stakeholders
customers/users, sponsor, portfolio mgr/review board, program managers, PMO, project mgrs, project team, functional mgrs, operations mgmt, sellers/business partners
What is Staffing Management Plan ?
describe when and how human resource requirements will be met
20. What is Herzberg's Theory?
differentiating between short term motivators (e.g. fancy office, stripes on sleeves, big salary) and long term motivators (e.g. accomplishment of work itself, recognition and continued learning)
Purpose of Quality Management ?
includes the processes and activities of the performing organization that determine quality policies, objectives and responsibilities so that the project will satisfy the need for which it was undertaken
What is Schedule Data ?
includes at least: - Milestone - Activities - Activity attributes - Documentation of all identified assumptions and constraints...
Fill in the blanks. Ability to influence the final characteristics of the product, w/o significantly impacting cost is ____ at the start of the project, and _____ as the project progresses towards completion
highest, decreases
Purpose of Communication Management ?
includes the process required to ensure timely and appropriate generation, collection, distribution, storage, retrieval and ultimate disposition of project information.
What are the five process groups and their definitions?
initiating-those processes performed to define a new project or a new phase of an existing project by obtaining authorization to start the project or phase planning-those processes required to establish the scope of the project, refine the objectives and define the course of action required to attain the objectives that the project was undertaken to achieve executing-those processes performed to complete the work defined in the project management plan to satisfy the project specifications monitoring and controlling-those processes required to track, review, and regulate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes closing-those processes performed to finalize all activities across all process groups to formally close the project of phase
What is Risk Breakdown Structure (RBS) ?
is a hierarchically organized depiction of the identified project risks arranged by risk category and subcategory that identifies the various areas and causes of potential risks.
What is Requirement Traceability Matrix (RAM) ?
is a table that links requirements to their origin (prj scope, objectives, test strategy) and traces them throughout the project life-cycle.
What is Variance Analysis TT ?
is an after the fact look at what caused a difference between the baseline and the actual performance. Steps are: - Verify quality of the information collected - Determine variances - Determine impact of the variances
Purpose of Report Performance process ?
is the process of collecting and distributing performance information including: - status report - progress measurement - forecasts
Purpose of Manage Stakeholders Expectation ?
is the process of communicating and working with stakeholders to meet their needs and addressing issues as they occur
Purpose of Estimate Costs ?
is the process of developing an approximation of the monetary resources needed to complete project activities
What is Operational Work ?
is ongoing work and repetitive
Purpose of Plan Communication ?
is the process of - determining the project stakeholder information needs - defining a communication approach
Purpose of Determine Budget process ?
is the process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline
Purpose of Develop Schedule ?
is the process of analyzing sequences, durations, resource requirements and schedule constraints to create the project schedule.
Purpose of Estimate Activity Durations ?
is the process of approximating the number of work periods needed to complete individual activities with estimated resources.
Purpose of Perform Quality Assurance ?
is the process of auditing the quality requirements and the results from quality control measurements to ensure appropriate quality standards and operational definitions are used.
Purpose of Plan Risk Responses ?
is the process of developing options and actions to enhance opportunities and to reduce threats to project objectives
Purpose of Estimate Activity Resources process ?
is the process of estimating the type and quantities of material, people, equipment,or supplies required to perform each activity.
What is Stakeholder analysis ?
is the process of gathering/analyzing quantitative/qualitative information to determine whose interest should be taken care throughout the project
Purpose of Develop Project Team ?
is the process of improving the competencies, team interaction and the overall team environment to enhance project performance
Purpose of Control Scope process ?
is the process of monitoring the status of the project to update project progress and manage changes to the schedule baseline.
Purpose of Control Cost process ?
is the process of monitoring the status of the project to update the project budget and managing changes to the cost baseline
Purpose of Direct and Manage Project Execution process ?
is the process of performing the work defined in the project management plan to achieve the project's objectives
Purpose of Plan Procurement process ?
is the process of: - documenting project purchase decisions - specifying the approach - identifying potential sellers
What is SMART ?
is the set of objectives that becomes the agreement for work between the manager and the direct report. - S: Specific: Exactly what is expected - M: Measurable: How will the individual know that he or she has achieved the desired outcome - A: Attainable: Is the objective realistic, attainable, and appropriate for the individual in that position? - R: Relevant: Are the desired results relevant for the individual, given knowledge, skills, experience, internal and external conditions, and so forth? - T: Trackable : How will progress be tracked? (or Timebound: By when must the objective be completed?)
Fill in the blanks. cost and staffing levels are _____ at the start, _____ as the work is carried out, and ______ rapidly as the project draws to a close.
low, peak, drop
Defect Repair ?
means "Rework", when a component of project does not meet specification
Which important project document is described by the following statement: A document, or collection of documents, created by the project manager based on input from the project team, stakeholders, management, and others, that is used to manage the project
project management plan
What is Cost of Quality ?
refers to the total cost of all efforts related to quality throughout the product life cycle
What is Resource Histogram ?
shows number of resources used per time period and where there is a spike in the need for resources. (for resource leveling)
What is product scope ?
the features and functions of the product or service that you and your team are building
What is Communication Requirement Analysis TT?
to determines the information needs of the project stakeholders
Preventive Action ?
to reduce the probability of negative consequences associated with project risks
What is Observation and Conversation ?
used to stay in touch with the work and attitudes of project team member
15. Control charts are a time-based display of the results of a repetitive process and can also be called?
voice of the process
What is an iterative relationship
where only one phase is planned at any given time and planning for the next is carried our as work progresses on the current phase and deliverables
What is portfolio management?
refers to the centralized mgmt of one or more portfolios which includes identifying, prioritizing, authorizing, managing and controlling projects, programs, and other related work to achieve specific strategic objectives
