thmbtg - Questions 2

What does honesty in project management mean?

Professional and Social Responsibility Try to understand the truth Be truthful in all communications Create an environment where other tell the truth

What is defect repair?

Quality Management Rework required when a component of the project does not meet specifications

What is risk tolerance?

Risk management The degree or level of acceptable risk

What is a management reserve?

Risk management Time or cost allocated to cover unknown unknowns It is included in the cost budget

Someone who is risk averse is:

Risk management Unwilling to take risks

What is the near-critical path?

Time Management The path closest in length to the critical path

11-9 The enterprise environmental factors that can influence the Identify Risk Process include all of the following except: A. Assumptions analysis B. Risk attitudes C. Industry studies D. Commercial data bases

11-9 Answer A - Assumptions analysis is associated with the tools and techniques of risk identification.

69. Your client has terminated your project before it is complete. Which of the following is true? A. You must stop all work and release the team immediately B. You must work with the team to document the lessons learned C. You must keep the team working on the project to give your senior management time to talk to the client D. You must update the project management plan to reflect this change

69. Answer: B Even if a project is shut down before the work is completed, you still need to document the lessons learned and add them to the organizational process assets. In fact, if a project is terminated early, that's probably the best time to do that! When a project goes seriously wrong, then there are always important lessons that you can learn - even if it wasn't your fault!

7-1 All of the following are inputs to the determine budget process except: A. Scope Baseline B. Project Schedule C. Activity cost estimates D. Reserve Analysis

7-1 Answer D. Reserve analysis is a tool or technique of the determine budget process

e.g.- Do it my way

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if it happens- it happens

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if it happens- it happens Active acceptance - develop contingency plans Transfer: Make another party responsible for a risk

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may include outsourcing- insurance- warranties- bonds- and guarantees

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the desired project end date minus the actual end date

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7-16 As projects progress through their life cycles, a graph of project cost expenditures will follow a characteristic "S" shape. Typically the information provided in this type of graph indicates that: A. Projects run in "cycles" B. Problems often occur near the beginning and the end of projects C. Projects inherently are prone to experiencing "ups and downs" D. Project costs start at low levels, rapidly increase, plateau and then decline

7-16 Answer D. The typical project life cycle begins with low cost and staffing. As the project progresses, costs increase. The project will reach a point when maximum resources are applied and then resources will be systematically released as the project reaches closure. Refer to pages 16 and 17 PMBOK Guide

7-7 Which of the following is not generally an example of direct cost? A. Materials B. Subcontractor expenses C. Employee benefits D. Project manager salary

7-7 Answer C. Employee benefits, taxes, rent, maintenance are generally considered indirect project costs.

1. Which of the following is NOT true of obtaining project plan approval? A. Until you obtain plan approval, you don't need to put changes to it through change control. B. Change control makes sure that only approved changes can make it into the approved plan. C. Only one person needs to approve the Project Management Plan and that's the Project Manager. D. It's important for the entire team to buy into the Project Management Plan for it to be successful.

1. Answer: C It's not enough that the Project Manager approves of the Project Management Plan; it needs to be approved by all of the stakeholders in the project. Everyone on the team should feel comfortable with the processes that are going to be used to do the work.

10. You are the project manager for a railroad construction project. Your sponsor has asked you for a forecast for the cost of project completion. The project has a total budget of $80,000 and CPI of .95. The project has spent $25,000 of its budget so far. How much more money do you plan to spend on the project? A. $59,210 B. $80,000 C. $84,210 D. $109,210

10. Answer: A CPI to project how much money is likely to be spent for the rest of the project. The first step is to plug the numbers into the formula EAC = BAC / CPI, which yields EAC = $80,000 / .95 = $84,210. That's how much money you're likely to spend on the project. Now you can figure out ETC = EAC -AC = $84,210 - $25,000 = $59,210.

100. Which of the following is NOT found in a project charter? A. The business case for the project B. Constraints and limitations on the project work C. Procedures for managing changes to contracts D. Assumptions that have been made about the project

100. Answer: C The procedure for managing changes to a contract is found in the contract management plan. The other three answers - the business case, constraints and assumptions - are all things you typically find in a project charter.

101. Which of the following best describes the triple constraint? A. Cost, schedule, and quality B. Cost, resources, and schedule C. Cost, schedule, and scope D. Cost, schedule, and product

101. Answer: C The triple constraint is cost, schedule, and scope. Any change to one of those constraints affects the other two. It's important to balance all three constraints as a project manager.

102. What is a risk owner? A. The person who monitors the watchlist that contains the risk. B. The person who meets with stakeholders to explain the risk. C. The person who makes a risk happen. D. The person who is responsible for the response plan for the risk.

102. Answer: D 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.

103. You are managing a software engineering project, when two team members come to you with a conflict. The lead developer has identified an important project risk: you have a subcontractor that may not deliver on time. Another developer doesn't believe that the risk is likely to happen; however, you consult the lessons learned from previous projects and discover that subcontractors failed to deliver their work on two previous projects. The lead developer suggests that you have two team members take three weeks to research the component being built by the subcontractor, and come up some initial work that you can fall back on in case that subcontractor does not deliver. You decide to follow the lead developer's advice over the objections of the other team member. Which of the following BEST describes this scenario? A. Transferrence B. Mitigation C. Avoidance D. Acceptance

103. Answer: B Risk mitigation means taking some sort of action that will cause a risk, if it materializes, to do as little damage to your project as possible. Having team members spend time doing work to prepare for the risk is a good example of risk mitigation. Having a little trouble with the risk management? Download the risk management chapter of "Head First PMP" for free from the Head First Labs website! http://www.headfirstlabs.com/PMP

104. You are managing a project with AC = $25,100, ETC = $45,600, VAC = -$2,600, BAC = $90,000 and EAC = $92,100. Your sponsor asks you to forecast how much money you expect to spend on the remainder of the project. Which is the BEST estimate to use for this forecast? A. $45,600 B. $87,400 C. $90,000 D. $92,100

104. Answer: A Sometimes you don't need to do any calculations when you run across a question like this. The question asked you which number to use for a forecast of how much money you expect to spend on the rest of the project. Well, isn't that the definition of ETC? Since you were given the value of ETC, you could just use that number!

105. Which is the BEST description of project scope? A. All of the features and deliverables your project will deliver B. All of the products your project will make C. All of the people involved in your project D. All of the work you will do to build the product

105. Answer: D 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.

106. Given this portion of the network diagram to the right, what's the LF of activity F? A. 10 B. 11 C. 16 D. 17

106. Answer: A It's just easy to calculate the late finish (LF) of an activity in a network diagram. Look at the following activity, take its LS (late start), and subtract one. If there's more than one following activity, use the one with the lowest LS. So for activity F in the question, the following activities are G, with an LS of 17, and H, with an LS of 11. So the LF of F is 11 - 1 = 10.

108. You are managing an accounting project when a new CFO is hired at your company. He'll be affected by all accounting projects in your company. What's the BEST thing for you to do? A. Show him the Project Charter so that he knows that you are in charge of the project. B. Work with him to understand the current requirements and determine if he has new ones to add to the project. C. Keep working on the project and get his feedback when he can review the finished product. D. Add him to the communications plan.

108. Answer: B Since the CFO is affected by your project, that means he's a stakeholder. The best thing you can do in this situation is get the new stakeholder's opinion incorporated in the project up front. It's important that all of the project stakeholders understand the needs and objectives that the project is meant to address. The worst case is to have the stakeholder's opinion incorporated at the end of the project -- that could mean a lot of re-work or even an entirely unacceptable product.

109. You're managing an industrial design project. Your project is currently in the Initiating phase. The project charter has been created, and you are working on developing the preliminary scope statement. Which of the following is NOT something that you should do? A. Document initial project risks B. Identify internal and external constraints C. Write down any assumptions that you have made D. Create the change control system

109. Answer: D An important part of initiating the project is identifying any constraints on the project, creating a list of initial project risks, and documenting assumptions that you've made so far. If you do this, it will make it much easier to plan your project later on. However, you don't create the change control system in the Initiating phase - that's something that you do as part of your project planning activities.

11-1 All of the following are inputs to the process of Risk Management Planning except: A. Project Scope Statement B. Project Management Plan C. Organizational Process Assets D. Risk Register

11-1 Answer D - The risk register is an output of the Identify Risks process. Refer to page 278 and 279,PMBOK guide

11-10 Your team is using a probability impact matrix. The scales on each axis of the matrix are labeled Very High, High, Moderate, Low, and Very Low. Your team is using: A. A cardinal scale B. An ordinal scale C. SWOT analysis D. Quantitative risk analysis

11-10 Answer B - Ordinal scales utilize a narrative description when rating or ranking items that require attention. A cardinal scale utilizes a numeric system such as .1 to .90. The ordinal rating system may be used with the Probability / Impact matrix. Refer to pages 291 and 292 PMBOK Guide.

11-15 All of the following are tools and techniques for Risk Monitoring and Control except: A. Earned value analysis B. Project risk audits C. Technical performance measurements D. Exploitation

11-15 Answer D - Exploit Risk is considered a tool or technique of the Plan Risk Responses process and is associated with managing opportunity or risks that may have a positive impact on a project. Refer to page 304. PMBOK Guide

11. Which of the following best describes decomposition? A. Waiting for a task to expire so that it can break down into smaller tasks B. Taking a deliverable and breaking it down into the smaller work packages so that it can be organized and planned C. Categorizing work packages D. Dividing work packages into deliverables that can be planned for.

11. Answer: B Decomposition is the main tool for creating the WBS. It just means breaking the work down into smaller and smaller pieces based on how your company does the work until it is small enough to categorize and organize hierarchically.

111. Rekha is a project manager on a large construction project. Late in the project, her client demands a big change. She assesses the impact of the change and tells the client how much time and money it will cost. But the client says that he doesn't have the time or budget to allow the change. What's the BEST way for Rekha to handle this situation? A. Have her senior managers meet with the client to explain the situation B. Hold a meeting with the client to figure out why he's asking for the change C. Do nothing; she's the project manager, so she sets the rules D. Have the client find more money for the budget

111. Answer: B This project is not in good shape. The client has needs that aren't being met, but there may not be enough time or money to meet them. What's the project manager going to do? Well, the first thing that you should do any time you have a problem is try to figure out what's causing it. All of the other answers involved taking some sort of action, and you should never take action until you've figured out the root cause of the problem.

113. Rekha is a project manager on a large construction project. Late in the project, her client demands a big change. She assesses the impact of the change and tells the client how much time and money it will cost. But the client won't allow any change to the schedule and won't pay anything more for change. Rekha explains that the proposed change is well outside the documented scope of the original work. The client tells Rekha that he doesn't care what was in the original scope and that she needs to implement the change with no impact to schedule or budget. What conflict resolution technique is he the client using? A. Confronting B. Withdrawal C. Smoothing D. Forcing

113. Answer: D The client is trying to command Rekha to do what he says even though she has good reasons for not doing it. He isn't working to solve the problem, he's just forcing the resolution to go his way.

114. Which of the following is NOT a tool of the Scope Definition process? A. Stakeholder Analysis B. Constrained Optimization C. Alternatives Identification D. Product Analysis

114. Answer: B Constrained Optimization doesn't have anything to do with Scope Definition - it's a kind of benefit selection method. Tthe other answers are all tools of the Scope Definition process.

115. Which of the following BEST describes the records management system? A. A system to store contracts and project records for future project managers to reference B. A library that stores the lessons learned for past projects C. A filing system to store paid invoices D. A system to store human resource records, salary information and work performance history

115. Answer: A The records management system is one of the tools that you use in the Contract Closure process. It's what you use to store your contracts and any related documents, so that future project managers can refer to them in future projects.

116. A project manager is negotiating with a contractor. Neither has a good idea of how long the project will take, or how much the materials will cost. Which contract type is MOST appropriate for this project? A. Cost plus fixed fee (CPFF) B. Time and Materials (T&M) C. Cost plus percentage of costs (CPPC) D. Fixed price (FP)

116. Answer: B Time and Materials (T&M) contracts are used in labor contracts. In a T&M contract, the seller pays a rate for each of the people working on the team plus their material costs. The "Time" part means that the buyer pays a fixed rate for labor - usually a certain number of dollars per hour. And the "Materials" part means that the buyer also pays for materials, equipment, office space, administrative overhead costs, and anything else that has to be paid for.

117. Which is NOT an example of cost of quality? A. The cost of inspecting your product to be sure that it meets requirements. B. The cost of reviewing documents used to produce your product to be sure that they do not have defects. C. The cost of training your team on techniques that will help them avoid defects. D. The cost of contracting another company to build part of the product.

117. Answer: D Any activity that helps you find, prevent or fix defects in your product is included in the cost of quality. The activities you do to build the product don't count towards that number.

118. Which of the following is NOT a stakeholder? A. A project team member B. An attorney from your company's competitor C. A representative from your project team's union D. The project sponsors

118. Answer: B A stakeholder is anyone who is affected by the cost, time, or scope of your project. And that includes unions - if you have team members who are in a union, then you always need to consider that union as a stakeholder and make sure their needs are met. However, you don't need to consider the needs of your company's competitors.

119. What is the main output of the Scope Definition process? A. Preliminary Scope Statement B. Scope Definition C. Scope Dictionary D. Project Scope Statement

119. Answer: D The Project Scope Statement builds on the Preliminary Scope Statement to define the scope of work for the project. The Project Scope Statement is where everyone comes to a common understanding about the work that needs to be accomplished on the project.

12. Which is the BEST definition of quality? A. A product made of very expensive materials. B. A product made with a lot of care by the team who built it. C. A product that satisfies the requirements of the people who pay for it. D. A product that passes all of its tests.

12. Answer: C Quality management is all about making sure that the product you are building conforms to your customer's requirements. If you have done a good job of gathering and understanding those requirements, all of the measurements you take on your project should help you see if what you are building will make your clients satisfied in the end.

121. The project manager for a construction project discovers that the local city council will vote on a zoning change that would open up a new neighborhood to commercial building. She contacts other construction companies in the area that would benefit from the change to ask them to attend the council meeting in order to convince the city council to vote for the change. A "Yes" vote will benefit all of the companies. This is an example of which risk response strategy? A. Mitigate B. Share C. Exploit D. Enhance

121. Answer: B The project manager is asking the other companies to help her make this opportunity happen and they can all share in the benefits of it.

122. You are interviewing new project managers for your company. One of the candidates claims to be a PMP-certified project manager, but you discover that she has never taken the PMP exam. What is the BEST way to handle this situation? A. Do nothing B. Report the person to your manager C. Report the person to PMI D. Call the police

122. Answer: C If you discover that someone claims to have the PMP credential but is not actually certified, you must contact PMI immediately so that they can take action.

123. Which of the following types of power is the most effective in leading teams? A. Expert B. Referent C. Reward D. Punishment

123. Answer: A The most effective type of power for a project manager is Expert power. That's when your team respects you because they know that you know what you are talking about.

124. You are being hired to manage a highway construction project for a contractor working for Smith County. The sponsor is a project officer who works for the Smith County municipal government. You have three separate teams working all three shifts, with a separate foreman for each team. Each team has members from two different unions, and each union has its own representative. Who is the BEST person to approve the project charter? A. The project manager B. The Smith County project officer C. The team foreman D. The two union representatives

124. Answer: B Since the Smith County project officer is the sponsor, he's the person who is best suited to signing the charter. A project charter is typically approved and signed by the sponsor. Some projects are approved by key stakeholders, but they are never approved by project managers (since the project manager is only granted authority once the project is signed) or team members.

128. As you are executing your project you are constantly checking your risk register to be sure that you have planned responses for all of your risks. At one team status meeting, you find that a lower priority risk has suddenly become more likely. Where do you keep information about low priority risks? A. Triggers B. The watchlist C. Risk Management Plan D. Qualitative analysis documents

128. Answer: B Sometimes you'll find that some risks have obviously low probability and impact, so you won't put them in your register. Instead, you can add them to a watchlist, which is just a list of risks that you don't want to forget about, but you don't need to track as closely. You'll check your watchlist from time to time to keep an eye on things.

130. You're managing a project with a schedule performance index (SPI) of 1.07 and a cost performance index (CPI) of 0.94. How would you BEST describe this project? A. The project is ahead of schedule and within its budget B. The project is behind schedule and within its budget C. The project is ahead of schedule and over its budget D. The project is behind schedule and over its budget

130. Answer: C When you're looking at CPI and SPI numbers, remember: lower = loser. If your CPI is below 1.0, then your project is over its budget. If the SPI is below 1.0, then the project is behind schedule. In this case, the project is ahead of schedule, since its SPI is above 1.0. But it's over its budget, because it's got a CPI that's below 1.0.

133. Which of the following project selection methods is NOT a comparative approach (or benefit measurement model)? A. Linear programming B. Murder boards C. Benefit-to-cost ratios D. Peer review

133. Answer: A There are two kinds of project selection methods. Benefit measurement models, or comparative methods, are used to compare the benefits and features of projects. Mathematical models use complex formulas to determine which project has the most value to the company. You should get familiar with some of the more common comparative approaches to project selection, like murder boards, benefit-to-cost ratios and peer reviews.

134. You're holding a PMP study group so that you and your coworkers can work together to study for the exam. One person recently took and passed the exam, and has offered to give you all of the questions he can remember. How should you respond? A. Accept the questions, but to be fair to everyone in the study group you should make sure everyone gets a copy B. Refuse the offer, but encourage other study group members to make up their own minds C. Refuse the offer, and report the person to your manager D. Refuse the offer, and report the person to PMI

134. Answer: D If you find out that someone is cheating on the PMP exam by distributing questions that are on it, you must report that person to PMI immediately. If that person is a PMP certified project manager, he or she will be stripped of his certification.

135. The project charter is typically approved by the project sponsor, although some charters can be approved by key stakeholders instead. Which of the following BEST describes the role of the project sponsor on the project? A. The sponsor manages the project B. The sponsor provides funding for the project C. The sponsor verifies that all of the work was completed D. The sponsor negotiates all contracts

135. Answer: B The project sponsor is the person (or people) that pays for the project. Sometimes this means the sponsor directly provides funding; other times, it means the sponsor is the person who signs the organizational approval to assign resources. Either way, you can usually tell who the sponsor is by finding the person who can approve or deny the budget.

14. Which enterprise environmental factor defines how work is assigned to people? A. RACI matrix B. Project Management Information System (PMIS) C. Resource histogram D. Work authorization system

14. Answer: D The work authorization system is a part of your company's Enterprise Environmental Factors, and it's generally part of any change control system. It defines how work is assigned to people. If work needs to be approved by specific managers, the work authorization system will make sure that the right people are notified when a staff member's work assignments change.

140. Which of the following helps you identify the root cause of 80% of the defects in your project using the 80/20 rule? A. Scatter chart B. Control chart C. Cause-and-effect diagram D. Pareto chart

140. Answer: D Pareto charts plot out the frequency of defects and sort them in descending order. The right axis on the chart shows the cumulative percentage. This helps you figure out which root cause is responsible for the largest number of defects. The 80/20 rule states that 80% of defects are caused by 20% of the root causes you can identify. So if you do something about that small number of causes, you can have a big impact on your project.

142. You are managing a project where you work with 7 other team members and two sponsors. How many lines of communications are there between stakeholders on this project? A. 21 B. 36 C. 45 D. 54

142. Answer: C This is a simple application of the lines of communication formula: # lines = n x (n - 1) / 2. Don't forget to count yourself! There are a total of 10 people - 7 team members, two sponsors and the project manager. So the number of lines is 10 x 9 / 2 = 45.

143. Joe is an excellent programmer. He was promoted to a role of Project Manager because he understands technology better than anyone else in the company. Unfortunately, he is having trouble doing the project management job and his projects are failing. What is this an example of? A. Gold plating B. Halo effect C. Pre-assignment D. Ground rules

143. Answer: B The halo effect is when you put someone in a position they can't handle, just because they're good at another job. Just because Joe is a great programmer, that doesn't mean he'll be a good Project Manager.

144. Which of the following describes the contents of a staffing management plan? A. Organizational Chart, Training needs, Estimated Labor Cost, and Release Criteria B. Sponsor, Organizational Chart, Scope Verification Plan, and Schedule C. RACI Matrix, Organizational Chart, Performance Improvement Plan, and Budget D. Resource Histogram, Training Needs, Recognition and Rewards, and Release Criteria

144. Answer: D The Staffing Management Plan always includes a Resource Histogram, so that should be your first clue about which one of these answers is right. The Resource Histogram shows what kind of resource is needed through each week of your project and how many staff members you need. When planning out your staffing needs, you need take into account the training it will take to get them up to speed as well as the kinds of incentives you are going to offer for a job well done. Release criteria are important too, but they might not be familiar to you if you don't work in a consulting organization. You need to think about what each staff member needs to get done before they are released to work on other projects.

145. Which of the following is NOT a part of the preliminary scope statement? A. A list of requested changes B. A list of project deliverables C. The project objectives D. A rough order of magnitude cost estimate

145. Answer: A The preliminary scope statement contains a preliminary version of the things you see in the scope statement. It shows you an initial description of the work that needs to be done, so that you can begin planning. It does not contain any changes yet, because when you write it, you haven't created any deliverables yet, so there's nothing to change. Another way to think about it is that you build the preliminary scope statement at the very start of the project - that's why it's in the Initiating process group. You don't run into any requested changes until you start planning the project, so that's an easy way to know that your requested changes aren't part of the preliminary scope statement.

151. There have been several rounds of layoffs at your company. Now your project team is worried about their job security, and you've noticed that their performance has decreased significantly because of it. This is predicted by which motivational theory? A. McGregor's Theory of X and Y B. Maslow's Hierarchy of Needs C. McLellands Achievement Theory D. Herzberg's Motivation-Hygiene Theory

151. Answer: B Maslow's Hierarchy of Needs says that people have needs, and until the lower ones (like acceptance on the team, job safety or job security) are satisfied they won't even begin to think about the higher ones (fulfilling their potential and making a contribution).

152. Which of the following is NOT included in a cost of quality calculation? A. Team members' time spent finding and repairing defects B. Quality managers' time spent writing quality standards C. Project managers' time spent creating the project management plan D. Team members' time spent reviewing specifications, plans and other documents

152. Answer: C Cost of quality is what you get when you add up the cost of all of the prevention and inspection activities you are going to do on your project. It doesn't just include the testing. It includes any time spent writing standards, reviewing documents, meeting to analyze the root causes of defects, rework to fix the defects once they're found by the team - absolutely everything you do to ensure quality on the project. Cost of quality doesn't include the time the project manager spends putting together the project management plan - except for the time spent on the quality portions

155. A project manager on a construction project includes a line item in the budget for insurance for the equipment and job site. This is an example of: A. Transference B. Mitigation C. Avoidance D. Acceptance

155. Answer: A One effective way to deal with a risk is to pay someone else to accept it for you. This is called transference. The most common way to do this is to buy insurance.

157. A project manager is creating a report of the final status of a closed project to the stakeholders. Which of the following is NOT used in a final project report to communicate the status of a project? A. Variance information B. Lessons learned C. Scope baseline D. Status of deliverables

157. Answer: C The scope baseline is not a particularly useful thing once a project's done. A baseline is what you use to measure any changes to the project - whenever there's a change, you always want to compare it against the baseline. But once the project is done, the baseline isn't necessary any more.

162. Mike is a project manager for an IT technology implementation project. He is using an ishikawa diagram to figure out what could cause potential risks on his project. Which process is he doing? A. Risk Identification B. Qualitative Analysis C. Quality Control D. Risk Response Planning

162. Answer: A Diagramming Techniques (including Ishikawa diagrams and Flowcharts) are a tool of the Risk Identification process. You use them to find the root cause of defects in Quality Management processes but they can also be useful in finding the risks that can lead to trouble in Risk Management.

164. You're holding a PMP training seminar for people in your company to help them obtain enough hours to qualify to take the PMP exam. This is an example of: A. Organizational process assets B. Contributing to the project management body of knowledge C. Cheating, which should be reported to PMI D. Lessons learned

164. Answer: B Any time you hold a seminar, give a talk, write an article or help others learn about project management, you're contributing to the project management body of knowledge.

167. What are the 5 kinds of power? A. Legitimate, expert, reward, political, and bargaining B. Legitimate, expert, reward, political, and punishment C. Legitimate, expert, reward, economic, and bargaining D. Legitimate, expert, reward, referent, and punishment

167. Answer: D Legitimate power is the kind of power you have when you tell someone who reports to you to do something. Expert power is when your opinion carries weight because people know that you know what you're talking about. Reward power is when you promise a reward for doing as you ask. Referent power is when people do what you say because of your association with somebody else. Punishment power is when people do what you say because they are afraid of the consequences.

169. Which of the following is NOT part of the Contract Closure process? A. An audit to verify that all of the legal obligations have been met B. Obtaining formal acceptance of all deliverables from all stakeholders C. Making sure all invoices have been paid D. Writing down lessons learned

169. Answer: B to be paid, and you can't close out the contract until you get the money! By the time the Contract Closure procedure happens, you should have already gotten formal written acceptance for the deliverables. That's what the Scope Verification process is for, and you verify that formal acceptance in the Close Project process.

170. Which of the following are valid ways to breakdown the work in a WBS? A. By risk or quality metric B. By product feature or unit of work C. By project phase or project deliverable D. By charge code or initial estimate

170. Answer: C The WBS work packages can be displayed by project phase or by project deliverable. It depends on how your company needs to see the work organized. If you use the same phased lifecycle for all projects, it can be easier to show all of the work as it breaks down within each phase. If you have various teams depending on the deliverables your team will produce, it can make sense to break the work down by project deliverable.

171. Which of the following is an output of Direct and Manage Project Execution? A. Work Performance Information B. Statement of Work C. Preliminary Scope Statement D. Contract

171. Answer: A The two main outputs of Direct and Manage Project Execution are Deliverables and Work Performance Information. Deliverables are the documents and other work products your project produces, and Work Performance Information is a name for all of the performance metrics and reports you can generate to track how your project is doing versus your plan.

173. Which of the following tools is used to document the lessons that were learned when the contract was administered? A. Quality audit B. Buyer-conducted performance review C. Contract review D. Procurement audit

173. Answer: D Once you've closed out a contract, 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.

174. You are managing a project to build a new wing onto a local school building over a summer break. One night, the school and your construction site are destroyed by a tornado. Your client demands that you continue work despite the disaster, but you consult the contract, and find a clause that states that you are not responsible for any more work. This is referred to as: A. A force majeure clause B. An "act of God" clause C. Mitigation D. An ex parte communication

174. Answer: A "Force majeure" is a kind of clause that you'll see in a contract. It says that if something like a war, riot, or natural disaster happens, you're excused from the terms of the contract.

176. Which of the following BEST describes when you perform the Monitor and Control Project Work process? A. Continuously throughout the project B. As soon as every deliverable is completed C. At scheduled milestones or intervals during the project D. At the end of every project phase

176. Answer: A One of the most important things that you do as a project manager is to constantly monitor the project for changes, and take the appropriate action whenever you make a change. But changes don't happen on any sort of schedule - if they did, it would make project management a whole lot easier! That means you need to continuously monitor your project to figure out whether or not its plans and scope need to change.

177. Which of the following is NOT an output of Monitor & Control Project Work? A. Approved changes B. Requested changes C. Recommended defect repair D. Recommended preventive and corrective actions

177. Answer: A The purpose of the Monitor & Control Project Work process is to look for potential problems and recommend responses. They don't get approved until the Integrated Change Control process.

178. You are the project manger of a software project. Two developers, Bill and Alfredo, are having an argument about how to implement a feature. Bill thinks that it's more important that the project get done quickly, so he's suggesting that you re-use some work that's been done on a previous project to get started. Alfredo thinks that that work doesn't apply to this project and will just waste time. Bill is almost always right about these things and he's very influential on the team, so it's important that you keep him happy. What should you do? A. Since you do want to get the project done quickly, you side with Bill. B. Side with Alfredo. It could end up taking longer in the end. C. Call a meeting to hear both sides of the situation and decide in favor of the solution that is best supported by objective evidence. D. Call a meeting in private with Bill to hear more about his position.

178. Answer: C You can't know the answer to technical questions as well as your team. So, while it's important to understand both sides of the issue, your job is to make sure that problems are confronted and fairly evaluated.

179. Which of the following is NOT an example of a deliverable? A. Project Management Plan B. Project Schedule C. Work Breakdown Structure D. Parametric Estimation

179. Answer: D Parametric estimation is a tool for creating estimates. It's not a deliverable.

18. Which conflict resolution technique is most effective? A. Withdrawal B. Compromise C. Smoothing D. Confronting

18. Answer: D Confronting means figuring out the cause of the problem and fixing it. That's the best way to be sure that the right decision is made.

180. Which is NOT an input to the Create WBS process? A. Project Scope Statement B. Organizational Process Assets C. Scope Management Plan D. WBS Dictionary

180. Answer: D The WBS Dictionary is an output of the Create WBS process. It is created along with the WBS and gives all of the details about each work package in the WBS.

184. You have been asked to select between three projects. Project A has a net present value of $54,750 and will take six months to complete. Project B has a net present value of $85,100 and will take two years to complete. Project C has a net present value of $15,000 and a benefit-cost ratio of 5:2. Which project should you choose? A. Project A B. Project B C. Project C D. There is not enough information to decide

184. Answer: B The idea behind net present value (or NPV) is that you can compare potential projects by figuring out how much each one is worth to your company right now. A project's NPV is figured out by coming up with how much the project is worth, and then subtracting how much it will cost. If you're asked to choose between projects and given the NPV of each of them, choose the one with the biggest NPV. That means you're choosing the one with the most value!

185. Which of the following is a defect? A. A mistake made by a team member on the job B. A change that the team needs to make in how they do the work C. A project management plan that does not meet its requirements D. A change request that's been rejected by the change control board

185. Answer: C It's easy to get change, defects and corrective actions mixed up - they're all words that sound suspiciously similar! Just remember: a defect is any deliverable that does not meet its requirements. A defect is NOT always caused by a mistake - defects can come from lots of sources, and team members' errors only cause some defects. For example, plenty of defects are caused by equipment problems.

187. As you determine the requirements, constraints and assumptions for the project you record them in which document? A. Project Management Plan B. Project Scope Statement C. Project Charter D. Communications Management Plan

187. Answer: B The Project Scope Statement is where you figure out exactly what your stakeholders need, and turn those needs into exactly what work the team will do to give them a great product. Any constraints or assumptions that need to be made to determine the work need to be written down in the scope statement as well.

188. You've been hired by a large consulting firm to evaluate a software project for them. You have access to the CPI and EV for the project, but not the AC. The CPI is .92, and the EV is $172,500. How much money has actually been spent on the project? A. $158,700 B. $172,500 C. $187,500 D. There is not enough information to calculate the actual cost

188. Answer: C You can figure out the actual cost that was spent on a project, even if all you're given are some of the project metrics. In this case, if you only have CPI and EV, you can figure out the AC by writing down the formula that has all three of them: CPI = EV / AC. Now flip the formula around: AC = EV / CPI = $172,500 / .92 = $187,500.

189. Approved changes are implemented in which process? A. Direct and Manage Project Execution B. Monitor and Control Project Work C. Integrated Change Control D. Develop Project Management Plan

189. Answer: A Changes are found in Monitor and Control Project Work, they are approved in Integrated Change Control and implemented in Direct and Manage Project Execution. When you are monitoring and controlling the project work, you are always looking for changes that might need to be made to your plan and assessing their impact. Then you present those changes to the change control board for approval. If they approve, you implement them in the Direct and Manage Project Execution process - that's where all the work gets done.

19. Which of the following is NOT an input to Perform Quality Control? A. Deliverables B. Work Performance Information C. Checklists D. Recommended Defect Repairs

19. Answer: D The most important part of the Perform Quality Control process is that your team has to inspect each deliverable in order to verify that it meets its requirements. So what do you need to do that? Well, obviously you need the deliverables! And checklists are really useful too, because they help output!

191. Over half of conflicts on projects are caused by: A. Bad habits, defects, technology B. Resources, priorities, schedules C. Budget, carelessness, personalities D. Technology, money, personalities

191. Answer: B Over half of the conflicts on projects come from resources, priorities, and schedules. It can be tough to get resources assigned to projects, especially if they have skills that are in high demand. Sometimes multiple projects (and even roles within projects) are vying to get top priority. Finally, you probably don't need to think too hard to remember a conflict about schedules on a project you've worked on - many projects start with overly aggressive deadlines that cause conflicts from the very beginning.

198. A project manager discovers that a project problem has occurred. The problem was never discussed during risk planning activities or added to the risk register, and it will now cost the project money. What is the BEST response? A. Don't take any action, just accept that there's a problem that the team did not plan for B. Stop all project activity and approach senior management for advice C. Add the risk to the risk register and gather information about its probability and impact D. Use the management reserve to cover the costs of the problem

198. Answer: D This is a tough situation for any project manager. You've got a problem that's happened, and you didn't plan for it. Now it's going to cost you money. What do you do? Well, you can't just accept it and move on - that's only something you do with risks that have no other option. You have options with a problem that happens during your project. And you can't just go to the boss, because you're the project manager and it's your job to figure out what to do. There's no use in doing risk planning, because you already know the probability (100%) and impact (the cost of fixing the problem). So what do you do? That's where your reserve comes in. There are two kinds of reserves: a contingency reserve and a management reserve. The contingency reserve is what you use for "known unknowns" - you use it to pay for risks that you've planned for. But this situation isn't like that. That's why you tap into the management reserve. That's the money in the budget you set aside for "unknown unknowns" - problems that you didn't plan for but which came up anyway.

29. Which of the following is the correct order of the Monitoring & Controlling processes for Scope Management? A. First Scope Verification, then Scope Control B. First Scope Control, then Scope Verification C. Both happen simultaneously D. There is not enough information to decide

29. Answer: D Sometimes Scope Verification happens before Scope Control, and sometimes it happens afterwards -- and sometimes it happens both before AND afterwards. That actually makes a lot of sense when you look at what those two processes do, and how they interact with each other. You always perform some Scope Verification activities at the end of your project, because you need to verify that the last deliverable produced includes all of the work laid out for it in the Scope Statement. Most projects will almost certainly have gone through Scope Control before then. So it might seem like Scope Control always happens before Scope Verification. But you don't just perform Scope Verification at the end -- you actually do it after every deliverable is created, to make sure that all the work for that deliverable was done. Not only that, but sometimes Scope Verification fails because your team didn't do all of the work that was needed -- that's why Requested Changes are an output of Scope Verification. And if those changes include scope changes, then your project will end up going through Scope Control again -- possibly for the first time in the project, if this is the first scope change you've had to make. So Scope Control can happen before Scope Verification, but it can also happen afterward as well. That's why there's no prescribed order for those two processes: they can happen in any order.

3. Which of the following shows roles and responsibilities on your project? A. Bar chart B. Resource histogram C. RACI matrix D. Human Resource Management Plan

3. Answer: C The RACI matrix shows roles and responsibilities on your project. RACI stands for Responsible, Accountable, Consult, Inform. Some people on your project will be responsible for activities, others might be accountable for them. The RACI matrix is a table that shows people and how they relate to the work that is being done. .

30. You are working on a construction project. You, your team, and your senior manager all feel that the work is complete. However, one of your stakeholders disagrees, and feels that one deliverable is not acceptable. What is the BEST way to handle this conflict? A. Consult the contract and follow its claims administration procedure B. Renegotiate the contract C. File a lawsuit to force the stakeholder to accept the deliverable D. Follow the administrative and contract closure procedures

30. Answer: A When there's a dispute between a buyer and a seller, that's called a claim. Most contracts have some language that explains exactly how claims should be resolved - and since it's in the contract, it's legally binding, and both the buyer and seller need to follow it. Usually it's not an option to renegotiate a contract, especially at the end of the project after the work is complete, and lawsuits should only be filed if there are absolutely, positively no other options.

31. One way contract closure differs from administrative closure is: A. Administrative closure involves the stakeholders and the team; contract closure involves only the team but not the stakeholders B. Administrative closure defines actions the team must take; contract closure defines legal commitments C. Administrative closure means verifying that the project is complete or terminated; contract closure means verifying that the contract terms were satisfied D. Administrative closure is performed by the seller; contract closure is performed by the buyer

31. Answer: C When you close out a project, there are two main things you need to do: administrative closure and project's exit criteria are met. If the project was successful, then you need to make sure you have formal acceptance from the stakeholders, and that the product meets its requirements. If the project was terminated early, you still need to store the project documents. And in both cases you need to is what you do to make sure that your contract's terms are Contract closurewrite lessons learned! satisfied. If your project went well, then this means making sure that payment was made and all of the clauses of the contract were adhered to. But even if the project got terminated, there may still be some contractual obligations that need to be met.

33. You are managing a software project. During a walkthrough of newly implemented functionality, your team shows you a new feature that they have added to help make the workflow in the product easier for your client. The client didn't ask for the feature, but it does look like it will make the product easier to use. The team developed it on their own time because they wanted to make the client happy. You know this change would never have made it through change control. What is this an example of? A. Gold plating B. Scope creep C. Alternatives Analysis D. Schedule Variance

33. Answer: A Gold plating is when you or your team add more work to the project that was not requested by the sponsor or client. It is always a bad idea to gold plate a project because the impact is sometimes not immediately known. Sometimes, a feature that might seem really useful to your team is actually a detriment to the client. Gold plated features can also introduce bugs that slow down later development.

35. You are managing a construction project. During your risk identification interviews you learn that there has been a string of construction site thefts over the past few months in the area where your will be building your project. The team agrees that it's unlikely that people will be able to steal from your site. Even if thieves could get around your security, it's even more unlikely that your project will lose a significant amount of material if a theft does occur. You decide to monitor the risk from time to time to be sure that it continues to have a low probability and impact. Where do you record the risk so that you don't lose track of it? A. In a trigger B. On a watchlist C. In the Probability and Impact Matrix D. In the Monte Carlo analysis report

35. Answer: B A watchlist is where you keep risks that don't have a high enough probability or impact to make it into the risk register but still need to be monitored. By recording the risk in a watchlist, you will have a reminder to check to be sure that circumstances haven't changed as your project goes on. That should give you enough time to come up with a risk response strategy if circumstances change as time goes on.

37. You are developing the project scope statement for a new project. Which of the following is NOT part of creating a project scope statement? A. Scope verification B. Using the Preliminary Scope Statement C. Alternatives identification D. Obtaining plan approval

37. Answer: A Scope Verification is the Monitoring & Controlling process for the Scope Management knowledge area. It doesn't have anything to do with planning out the scope of the project - you do it as you complete each project phase to make sure that your team has completed all of the project work. Stakeholder analysis and alternatives identification are both tools used in the Scope Definition process to write the Project Scope Statement. Of course, your Scope Statement will need to be approved before you can get to work as well.

38. Which of the following is NOT a cost estimation tool or technique? A. Bottom-up B. Parametric C. Cost aggregation D. Analogous

38. Answer: C Cost Aggregation is used to build your budget, but it is not a tool for cost estimation. Bottom-up, Parametric, and Analogous estimation techniques are used for both cost and time estimates.

39. You're managing a construction project to install several hundred air conditioner panels in a new office building. Every floor has identical panels. The customer, a construction contracting company, has provided specifications for the installations. The team is using a process to install and verify each panel. As the team completes each panel, your team's quality control inspector measures it and adds the data point to a control chart. You examine the control chart, and discover that the process is out of control and you need to take close look at it immediately. Which of the following BEST describes what you found on the control chart? A. At least seven consecutive measurements are either above or below the mean but within the control limits B. At least one point is inside of the control limits C. At least seven consecutive measurements are inside of the control limits D. At least one point is above or below the mean

39. Answer: A A control chart is a really valuable tool for visualizing how a process is doing over time. By taking one measurement after another and plotting them on a line chart, you can get a lot of great information about the process. Every control chart has three important lines on it: the mean (or the average of all data points), an upper control limit and a lower control limit. There's an important rule called the Rule of Seven that helps you interpret control charts. That rule tells you that if you find seven consecutive measurements that are on the same side of the mean, there's something wrong. That's because it's extremely unlikely for seven measurements like that to occur - it's much more likely that there's a problem with your process. If you can figure out an improvement to fix that, you'll have a lot fewer defects to repair later!

4-15 _________________ is the primary process for carrying out the project plan. A. Configuration management B. Direct and manage project execution C. Administrative management D. Expert judgment

4-15 Answer B. As described in the PMBOK Guide, Direct and Manage Project Execution is the major process for carrying out the plan. Refer to page 43 of the PMBOK Guide to review the 5 major process groups and the 42 supporting process groups.

4-6 A _________________ consists of the data sources, tools and techniques used to gather, integrate, analyze and disseminate the results of the combined outputs of the project management processes. A. Project management planning system B. Project controls system C. Project communication system D. Project management information system

4-6 Answer D. The Project management information system can be a combination of systems that are used to track project performance. These systems may include the tracking of time worked, project costs, and other factors that would be communicated to project stakeholders

4. Brandi is a project manager on a software project. About halfway through development, her team found that they had not estimated enough time for some of the technical work they needed to do. She requested that the new work be added to the scope statement and that the time to do the work be added to the schedule. The change control board approved her change. What's her next step? A. Update the scope and schedule baselines to reflect the approved change. B. Start doing the work C. Gather performance metrics on the team's work so far. D. Perform Quality Assurance

4. Answer: A When a change has been approved you always need to update the baseline and then implement the change. That way, you will be sure to track your performance versus new scope and schedule expectations and not the old ones.

79. You are managing a project with an EV of $15,000, PV of $12,000 and AC of $11,000. How would you BEST describe this project? A. The project is ahead of schedule and within its budget B. The project is behind schedule and within its budget C. The project is ahead of schedule and over its budget D. The project is behind schedule and over its budget

79. Answer: A This is a calculation question that's asking you to use SPI and CPI to evaluate your project. Luckily, it's easy to do that! First calculate SPI = EV / PV = $15,000 / $12,000 = 1.25 - so your project is ahead of schedule. Then calculate CPI = EV / AC = $15,000 / $11,000 = 1.36 - so your project is within its budget.

41. You are planning a project that uses the same team as a project that is currently being performed by your company. What should you consult to find information about when those people will be available for your project? A. The project schedule for your project B. The project manager for the project that the team is working on C. The staffing management plan for the project that the team is working on D. The communications management plan for your project

41. Answer: C The staffing management plan tells you everything that you need to know about when resources will be released from a project. Since the team you need for your project is currently on another project, that project's staffing management plan will tell you when they will be released from that project and available for yours.

42. When is the BEST time to have project kickoff meetings? A. At the beginning of the project B. When each deliverable is created C. At the start of each phase D. When the Communications Management plan is approved

42. Answer: C If your project is broken up into phases, you should have a Kickoff meeting at the start of each phase. You use that meeting to talk about lessons learned from past projects and establish the way people will communicate as the project work goes on.

43. You have been hired by a contractor, who wants you to manage a construction project for one of their clients. The project team has been working for six weeks. You need to determine whether the team is ahead of or behind schedule. Which of the following tools and techniques is the BEST one for you to consult? A. Performance Measurement B. Project Management Software C. Schedule Change Control System D. Bottom-Up Estimating

43. Answer: A Performance measurement is what you're doing when you look at the work that the team is performing in order to determine whether the project is ahead or behind schedule. A really good way to do that is to use schedule variance (SV) and schedule performance index (SPI) calculations.

44. You are a project manager for a software project. Your team buys a component for a web page but they run into defects when they use it. Those defects slow your progress down considerably. Fixing the bugs in the component will double your development schedule and building your own component will take even longer. You work with your team to evaluate the cost and impact of all of your options and recommend hiring developers at the company that built the component to help you address problems in it. That will cost more but it will reduce your delay by a month. What is your next step? A. Fix the component B. Write up the change request and take it to the change control board C. Start Procurement Planning so you can get the contract ready for the vendor. D. Change the Scope Baseline to include your recommendation

44. Answer: B Once you've figured out the impact of the change to your schedule, budget, and scope, the next step is to take the change request to the Change Control Board. If they approve your recommendation, then the request will be approved and you can update your baseline and implement the change.

45. The terms of union contracts are considered ______________ in your project plan. A. Assumptions B. Constraints C. Requirements D. Collective bargaining agreements

45. Answer: B When you work with a union then the union contract can have an impact on your project. That means you need to consider the union itself a stakeholder, and when you do your planning you need to make sure any union rules and agreements are considered as constraints.

47. You are managing a design project. You find that bringing all of your team members into a single room to work increases their communication, and helps build a sense of community. This is referred to as a: A. War room B. Virtual team C. Socially active team D. Common area

47. Answer: A Co-location means that you have all of your team located in the same room. When you do this, you can increase communication and help them build a sense of community. Sometimes the room the co-located team meets in is called a war room.

48. You are a project manager on a construction project. You have just prepared an RFP to send around to electrical contractors. You get a call from your uncle who owns an electrical contracting company. He wants to bid on your project. You know he's done good work before, and it may be a good fit for your company. How do you proceed? A. You disclose the conflict of interest to your company, and disqualify your uncle's company B. You disclose the conflict of interest to your company, and make the selection based on objective criteria C. You disclose the conflict of interest to your company, and provide your uncle with information that the other bidders don't have so that he has a better chance of winning the contract D. You do not disclose the conflict of interest, and give your uncle the bid

48. Answer: B Any time there's a conflict of interest, it's your duty to disclose it to your company. After that, you should always proceed based on your company's policies. If there are no specific policies about that, then make sure that the conflict does not affect your decisions.

49. You are managing a software project. You are partway through the project, and your team has just delivered a preliminary version of part of the software. Your team gives a demonstration to the project sponsor and key stakeholders. Later, the sponsor informs you that there is an important client who will be using the software your team is building, and whose needs are not being met. As a result, you must now make a large and expensive change to accommodate that client. What is the BEST explanation for this? A. The sponsor is being unreasonable B. Stakeholder analysis was not performed adequately C. The team made a serious mistake and you need to use punishment power to correct it D. You do not have enough budget to perform the project

49. Answer: B Stakeholder analysis means talking to the stakeholders and figuring out their needs, and it's something that you do when you're defining the project scope. If there's an important client who has needs that your project is supposed to fulfill, that client is always a stakeholder. And if your project is not meeting that client's needs, then you didn't do a good enough job when you were performing stakeholder analysis!

5-10A work package is: A. A task with a unique identifier B. The first level of the WBS C. A deliverable oriented grouping of project components D. A deliverable at the lowest level of a branch of the WBS

5-10 Answer D: Answers A, B are associated with components of a WBS. The WBS is a deliverable oriented grouping of components but the work package is the lowest level deliverable in a branch of the WBS and contains several activities or an activity list.

8-10 Your project quality team is reviewing the outputs of a specific process. During the review, the team is following rigid pass/fail guidelines and is approving only a small portion of the outputs. Your team is involved in the process of: a) Variable sampling b) Prevention analysis c) Attribute sampling d) Project monitoring

8-10 Answer C. Attribute sampling refers to the process of determining if an output either conforms or does not conform to required specification

53. Which of the following processes is in the Initiating process group? A. Develop preliminary scope statement B. Develop project management plan C. Scope Definition D. Activity Definition

53. Answer: A It's pretty easy to remember which processes are in the Initiating group, because there are only two of them! But more importantly, it's useful to know what you need to do when you initiate a project. First the project charter needs to be created, which authorizes the project manager to do the work. And then you need to develop the preliminary scope statement, which gives an initial overview of the work that needs to be done so that you can start planning.

56. At the close of your project, you measure the customer satisfaction and find that some customer needs were not fully met. Your supervisor asks you what steps you took on your project to improve customer satisfaction. Which subsidiary plan would you consult to determine this information? A. Quality management plan B. Communications management plan C. Staffing management plan D. Risk management plan

56. Answer: A Customer satisfaction is an important part of modern quality management. Remember, customer satisfaction is about making sure that the people who are paying for the end product are happy with what they get. But the way that you make sure that your customers are happy is by meeting their needs - and you do that by ensuring the product the team builds meets the customer's requirements. That's what quality management is all about, and it's an important reason that you do quality management.

6-10 The technique used to modify the project schedule to account for limited resources or to develop a "resource limited" schedule is known as: A. PDM B. Critical Path Method C. Critical Chain Method D. Schedule network analysis

6-10 Answer C. Critical chain method identifies the "weak links" in the project schedule and utilizes buffers to manage the schedule. Refer to page 155 of the PMBOK Guide.

6-16 You are working on a software development project, and are about to enter the testing phase. The project requires the installation of specific hardware which is associated with another project that has been delayed. This is an example of : A. Mandatory dependency B. External dependency C. Internal dependency D. Discretionary dependency

6-16 Answer: B. An external dependency is related to a non-project activity and are considered outside the control of the project team.

6-17 The tools and techniques of the process "Define activities" include all of the following except: A. Decomposition B. Rolling wave planning C. Scope baseline D. Templates

6-17 Answer C. The scope baseline is an input to the define activities process. Page 134 PMBOK Guide.

6-19 What is the duration of this project? A. 12 B. 13 C. 14 D. 15

6-19 Answer D

6-20 What is the critical path for this project? A. ABCDEH B. ACDEGH C. ABDEGH D. ABDEFH

6-20 Answer C

6-21 What is the earliest that activity G can start? A. 9 B. 10 C. 13 D. 15

6-21 Answer B

6. Which of the following is NOT a source of information about specific project constraints and assumptions? A. The project scope management plan B. The project charter C. The preliminary scope statement D. The project stakeholders

6. Answer: A The project scope management plan is a really important tool in your project. It tells you exactly how you'll create the project scope, define the WBS, verify that the work has been done, and make changes to the scope. But it doesn't tell you about specific assumptions that you and the team have made, or constraints on your project. To find those, you should look in the charter and preliminary scope statement - and talk to the stakeholders, because they'll definitely tell you about constraints on your project.

64. You are managing a construction project to install new door frames in an office building. You planned on spending $12,500 on the project, but your costs are higher than expected, and now you're afraid that your project is spending too much money. What number tells you the difference between the amount of money you planned on spending and what you've actually spent so far on the project? A. AC B. SV C. CV D. VAC

64. Answer: C The cost variance (CV) is the difference between the amount of money you planned on spending and the total that you've spent so far. This should make sense - if your CV is negative, it means that you've blown your budget.

66. Which of the following is NOT one of the most common sources of project conflict? A. Schedules B. Priorities C. Resources D. Costs

66. Answer: D It's important to know that resources, schedules and priorities cause 50% of project problems and conflicts. Sure, it's important for the PMP exam. But even more importantly, if you're trying to confront a problem by looking for the root cause of a conflict, the odds are that you'll find that cause in one of those three areas!

8-6 All of the following are tools and techniques used in performing quality control except: a) Pareto analysis b) Quality metrics c) Control charts d) Scatter diagram

8-6 Answer B. Metrics are an output of Plan quality and an input to Perform Quality Assurance and Perform Quality Control. Refer to pages 191 and200, PMBOK Guide.

8-9 The total cost of all efforts including prevention, appraisal and defect repair to achieve product or service quality is known as: a) The Quality Plan b) Cost of quality c) Cost Baseline d) TQM

8-9 Answer B - The quality plan defines the approach to managing quality and may include costs that will include in the project budget. The cost baseline is the final approved project budget. TQM is total quality management and is an approach to manage quality within an organization. Cost of quality includes all costs associated with preventing and correcting quality problems. Refer to page 195 PMBOK Guide

How much of communication is nonverbal?

Communications Management About 55%

What is the key output of the Plan Communications process?

Communications Management Communications management plan

What are examples of communication technology?

Communications Management Face-to-face interactions Telephone Fax E-mail The project manager must determine the appropriate technology to use in each situation

Describe the communications model and its components.

Communications Management Messages are encoded- transmitted- received- and encoded- and must include attention to: nonverbal communication Paralingual communication Effective listening (including using active listening and giving feedback) Noise

What is the range for a budget estimate?

Cost Management -10 % to +25 % from actual

What are key outputs of the Estimate Costs process?

Cost Management Activity cost estimates Updates to the project management plan and project documents

Describe a variable cost and a fixed cost chargeable to the project.

Cost Management Variable Cost: A cost that varies with the amount of work done on the project Fixed Cost: A cost that does not vary with the amount of work done on the project

What is assumptions analysis? When is it done?

Exploring the validity of project assumptions It is done during the Identify Risks process

What is the definition of a program?

Integration Management A Group of interrelated projects- managed in a coordinated way.

What is a matrix organization?

Integration Management A blend of functional and projectized organization where the team members have two bosses (the project manager and functional manager)

What is a project management office?

Integration Management A department that centralizes the management of projects Provides the policies- methodologies- and templates for managing projects within the organization or Provides support- guidance- and training to others in the organization on how to manage projects or Provides project managers for different projects- and is responsible for the results of those projects

What is a project charter? How does it help the project?

Integration Management A document issue by the sponsor during project initiating that: Formally recognizes the existence of the project. Gives the project manager authority. Documents the business need- justification- customer requirements and the product or service to satisfy those requirements'

What is a balanced matrix organization?

Integration Management A matrix organization where power is equally balanced between the project manger and the functional manager This is the preferred form of matrix

What is a weak matrix organization?

Integration Management A matrix organization where the balance of power rests with the functional manger instead of the project manager. The project manger's role may include Project expediter Project coordinator

What is a strong matrix organization?

Integration Management A matrix organization where the balance of power rests with the project manager instead of the functional manager.

What is the kickoff meeting? When does it occur?

Integration Management A meeting of all parties to the project (project stakeholders- including sellers) to make sure everyone is on the same page It is held at the end of the planning process group

What occurs during the closing process group?

Integration Management Acceptance of the final product of the project is obtained and documented Lessons learned are completed Files are indexed and archived

What are corrective actions

Integration Management Actions taken to bring expected future project performance in line with the project management plan

What are preventive actions?

Integration Management Actions taken to deal with anticipated or possible deviations from the performance measurement baseline

What are project documents?

Integration Management Any documents used to manage a project that are not part of the project management plan. They include: Project charter Statement of work Contracts Stakeholder register Requirements documentation Activity list Quality metrics Risk register Issue log Change log And any other such documentation

Who are stakeholders?

Integration Management Anyone whose interests may be positively or negatively impact by the project- including: Project manager Customer Sponsor Performing organization Team Funding sources End user Society PMO

What are key outputs of the Perform Integrated Change Control Process?

Integration Management Change request status updates (approved or rejected changes)

What are key outputs of the Monitor and Control Project Work process?

Integration Management Change requests Updates to the project management plan and project documents.

What are organizational process assets? When are they used?

Integration Management Company processes and procedures Historical information Lessons learned They are used throughout the project management process

Define cost benefit analysis

Integration Management Compares the expected costs to the potential benefits Results in a benefit cost ration (BCR) The higher the BCR number the better

What are project constraints?

Integration Management Cost Time Scope Quality Risk Resources Customer satisfaction Constraints are used to help evaluate competing demands

Define working capital

Integration Management Current assets minus current liabilities The amount of funds available to spend on projects

What are the key outputs of the Direct and Manage Project Execution process?

Integration Management Deliverables Work performance Information Change requests Updates to the project management plan and project documents Implemented changes

What is the project statement of work?

Integration Management Describes need- product scope- and how the project fits into the strategic plan Created by the customer/sponsor prior to the beginning of the project Later refined in the project scope statement

What is the process of integration management?

Integration Management 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

Explain the project manager's role as an integrator.

Integration Management Making sure all the pieces of the project are properly coordinated and put together into one cohesive whole

What are baselines?

Integration Management Parts of the project management plan used to measure performance against These baselines are combined to create the performance measurement baseline: Schedule baseline Scope baseline Cost baseline Baselines can change with approved changes

What is included in a project management plan?

Integration Management Project management processes for the project Management plans for knowledge areas Scope- schedule- and cost baselines Requirements management plan Change management plan Configuration management plan Process improvement plan

What is a work authorization system?

Integration Management The project manager's system for authorizing the start of work packages or activities It ensures work is done at the right time and in the proper sequence

What is a purchase order?

Procurement management A unilateral contract

What are key outputs of the Conduct Procurements process?

Procurement management Selected sellers Procurement contract

Describe the project manager's role in procurement.

Procurement management Understand the procurement process Make sure the work described in the contract is complete Be involved in the whole procurement process Help tailor the contract to the project Incorporate mitigation and allocation of risks into the contract

What are key outputs of the Perform Quality Control process?

Quality Management Quality control measurements Validated changes Validated deliverables Change requests Updates to the project management plan and project documents

Who is a risk response owner?

Risk management The person assigned to execute risk responses for each critical risk

What is a decision tree?

Risk management A model of a decision to be made that includes the probabilities and impacts of future events

What are fallback plans?

Risk management Actions that will be taken if the contingency plan is not effective

What are risk triggers?

Risk management Early warning signs that a risk event has occurred or is about to occur

What is the Verify Scope process? When is it done?

Scope Management The process of formalizing acceptance of the project scope by the stakeholders/customer It is done during project monitoring and controlling and at the end of each phase of the project life cycle

What are key outputs of the Control Schedule process?

Time Management Work performance measurements Change requests

What are key outputs of the Estimate Activity Durations process?

Time Management Activity duration estimates Project document updates

Define free float and project float.

Time Management Free Float: The amount of time an activity can be delayed without delaying the early start date of its successor Project Float: The amount of time the project can be delayed without affecting the project's require end date

What do milestone charts show?

Time Management High-level project status

What are mandatory dependencies and discretionary dependencies?

Time Management Mandatory: One activity MUST be done after or before another may also be called hard logic Discretionary: When you PREFER activities to be accomplished in a certain may also be called preferred- preferential- or soft logic

Define total float and the formula for total float

Time Management The amount of time and activity can be delayed without delaying the project Formula: Late start - Early start OR Late finish - Early finish

What is the schedule baseline?

Time Management The approved schedule with any approved changes- used to measure project schedule performance

What is the critical path? How does it help the project?

Time Management The longest path through the network diagram It shows the project manager the shortest time in which the project can be completed It shows the project manager where to focus his or her time It is used in compressing or adjusting the schedule

In which process is the schedule management plan created?

Time Management The schedule management plan is created in integration management- as par of the Develop Project management Plan process

Define interactive

push and pull communication. , Communications Management Interactive: The sender provides information and recipients receive and respond to that information Push: The sender provides information but does not expect feedback on that information Pull: The sender places information in a central location and recipients are responsible for retrieving that information

8. A team member approaches you with a change that could cut your schedule down by a month. What is the first thing you should do? A. Write up a change request and see if you can get it approved. B. Make the change. It's going to save time and nobody will want the project to take longer than it should. C. Figure out the impact on the scope of the work and the cost before you write up the change request. D. Tell the team member that you've already communicated the deadline for the project, so you can't make any changes now.

8. Answer: C Just because the change will help the project's timeline doesn't mean that it will be an overall benefit to the project. It's important to check how the project will impact the other two constraints as part of your change request. Once you know all the facts about the change, the change control board can make an informed decision about how to proceed.

85. A new project management software tool has come onto the market. You spend the weekend taking an online tutorial to learn about it. This is an example of: A. Lessons learned B. Not paying for copyrighted software C. Contributing to the project management body of knowledge D. Enhancing personal professional competence

85. Answer: D The PMP Code of Professional Condut tells us that an important part of any project manager's career is enhancing personal professional competence. This means increasing your knowledge and applying it so that you can improve your ability to manage projects.

88. Your project team has completed the project work. All of the following must be done before the project can be closed EXCEPT: A. Ensure that the schedule baseline has been updated B. Get formal acceptance of the deliverables from the customer C. Make sure the scope of the project was completed D. Verify that the product acceptance criteria have been met

88. Answer: A Before you can close your project, there are a few things you need to do. Remember the acceptance criteria in the scope statement? Well, those criteria need to be met. And you need to get formal written acceptance from the customer. And every work item in the WBS needs to be completed.

9. When are the most expensive defects most likely to be introduced into a product? A. When the product is being assembled B. When the product is being designed C. When the quality management plan is being written D. When the product is being reviewed by the customers

9. Answer: B The most expensive defects are the ones introduced when the product is being designed. This is a little counterintuitive at first, but it really makes sense once you think about how projects are run. If your team introduces a defect into a product while it's being assembled, then they have to go back and fix it. But if there's a flaw in the design, then you have to halt production and go back and figure out all the things that flaw affected. You may have to order new parts, reassemble components, and maybe even go back and redesign the product from the ground up. This question is asking you to create a forecast using estimate to complete (ETC), which uses

90. You are reviewing performance goals to figure out how much bonus to pay to your team members. What document would you consult to find your team's bonus plan? A. The reward and recognition plan B. The staffing management plan C. The human resource management plan D. The project's budget

90. Answer: B The Staffing Management plan includes a "Reward and Recognition" section that describes how you'll reward your team for good performance. It also contains training requirements and release criteria.

92. Your team has identified a risk with some of the chemicals you are using on your highway construction project. It is really difficult to mix them just right and, based on past projects, you've figured out that there's a high probability that about 14% of the chemical supply will be lost in mixing problems. You decide to buy an extra 15% of the chemicals up front so that you will be prepared for those losses and your project won't be delayed. Which response strategy are you using? A. Avoid B. Accept C. Mitigate D. Transfer

92. Answer: C By buying the extra chemical stock, you are mitigating the risk.

94. Which of the following is NOT part of a typical change control system? A. Approval B. Change control board C. Project management information system D. Stakeholder analysis

94. Answer: D Change control is how you deal with changes to your project management plan. And a change control system is the set of procedures that lets you make those changes in an organized way. A typical change control system includes a change control board, utilizes a project management information system, and ends with either approval or rejection.

97. Which of the following is NOT a type of communication ? A. Formal Written B. Paralingual C. Nonverbal D. Noise

97. Answer: D Noise is something that interferes with communication. It's not a communication type.

99. The customer has reviewed the deliverables of a project and finds that they are acceptable, and must now communicate that acceptance to the project manager. Which form of communication is appropriate? A. Informal written B. Informal verbal C. Formal written D. Formal verbal

99. Answer: C Once your project team is done with the work, it's time to check the deliverables against the scope statement, WBS and scope management plan. If your deliverables have everything in those documents, then they should be acceptable to stakeholders. When all of the deliverables in the scope are done to their satisfaction, then you're done with the project! What comes next? Formal acceptance, which means you have written confirmation from the stakeholders that the deliverables match the requirements and the project management plan. Since this communication is a project document, it's formal written communication.

How does a contract relate to risk response planning?

A contract helps allocate and mitigate risks A risk analysis is done before a contract is signed

71. A project manager uses a facilitator to gather opinions from experts anonymously. What tool or technique of Risk Identification is being performed? A. Brainstorming B. Delphi Technique C. Interviews D. SWOT Analysis

71. Answer: B The Delphi technique is a way to get opinions and ideas from experts. This is a technique that uses a facilitator who uses questionnaires to ask experts about important project risks. They take those answers and circulate them - but each expert is kept anonymous so they can give honest feedback.

8-2 Quality planning involves documenting how the project will demonstrate compliance in meeting requirements and should be performed: a) In parallel with the other planning processes b) During the initial phase of the project c) After the WBS has been developed d) By the organization prior to the approval of the project charter

8-2 Answer A. Quality management is integrated with many other project planning processes especially cost and time management. Initiation and WBS development are included in other planning processes. Refer to page 192 PMBOK Guide

5-19 Typically, during the project planning process, a detailed project network schedule can be created after: A. A scope statement is approved B. WBS is created C. An escalation process is agreed upon D. A project control plan is created

5-19 Answer B. Generally, after a WBS has been developed and the work packages fully defined, the project team will develop a network diagram as predecessor and successor relationships are established.

5-6 You and your team are working together and subdividing the major deliverables of the project into smaller components. You are involved in the process of A. Scope Planning B. Decomposition C. Initiation D. Scope statement development

5-6 Answer B. Decomposition is the specific process used to develop a detailed WBS

55. An important part of performing stakeholder analysis is documenting quantifiable expectations. Which of the following expectations is quantifiable? A. The project must improve customer satisfaction B. The project should be higher quality C. The project must yield a 15% reduction in part cost D. All stakeholders' needs must be satisfied

55. Answer: C It's very hard to figure out whether or not your project is successful unless you can measure that success. That's why you need to come up with goals that have numbers attached to them - which is what quantifiable means. Of all four answers, only answer C has a goal that you can actually measure.

6-1 Determining activity sequences, developing activity duration estimates and estimating resource requirements are necessary to: A. Define the project B. Develop the WBS C. Develop the schedule D. Initiate the project

6-1 Answer: C. Sequence activities, activity duration estimates, and estimating resources provide the inputs to the develop schedule process. Page 131 PMBOK Guide Time management overview.

9-19 The project manager of a project that you have been observing appears to remain distant from his team and often places one of his team members in charge for days at a time. This style of management is generally considered to be: a. Motivational b. Participatory c. Laissez Fair d. Conciliatory

9-19 Answer C - A manager with a "hand off" attitude toward the project work and the team is considered "Laissez Fair."

9-2 The totality of socially transmitted behavior patterns, arts, beliefs, institutions and other products of human work and thought is associated with: a. Culture b. Organizational structure c. Internationalization d. Standards and regulations

9-2 Answer A - Over a period of time, organizations develop a specific set of values and norms that shape the way employees and managers view the organization, the behaviors of personnel and how the organization operates.

How much time do project managers spend communicating?

Communications Management 90%

What is the formula for TCPI?

Cost Management (BAC - EV) / BAC - AC)

What are key outputs of the Determine Budget process?

Cost Management Cost baseline Funding requirements

Describe a direct cost and an indirect cost chargeable to the project.ÿ

Cost Management Direct Cost: A cost directly attributable to the project Indirect Cost: Overhead costs

10-15 In the communication process, the basic communications model includes all of the following except: A. Noise B. Medium C. Urgency D. Message

10-15 Answer C - Urgency is not included in the basic communications model but should be considered when determining the method of communications to be used. Refer to page 255,PMBOK Guide

132. There are 17 people on a project. How many lines of communication are there? A. 136 B. 105 C. 112 D. 68

132. Answer: A The formula for lines of communication is n x (n-1) / 2. So the answer to this one is (17 x 16) / 2 = 136

12-18 Under which type of contract does the seller accept all liability for poor workmanship, engineering errors, and consequential damages? A. Incentive fee B. Fixed price C. Cost plus D. Cost plus fixed fee

12-18 Answer B - Fixed price. The Fixed price or lump-sum contract places the risk on the seller. The seller will generally include a contingency in the contract to assist in minimizing the risk of reduced profits.

What is the range from a rough order of magnitude estimate?

Cost Management +/- 50 % from actual

Name common terms and conditions that may be in a contract.

Procurement management Please review the long list of terms and conditions and what they mean in the Procurement Management chapter of CAPM Exam Prep or PMP Exam Prep

Name the guidelines for interpreting what is or is not included in the contract

Procurement management Please see Contract Interpretation discussion and exercise in the _..

What does gold plating mean?

Quality Management Adding extra items and services that do not necessarily contribute added value or quality to customer deliverables

What is a cause and effect diagram?

Quality Management An illustration that helps determine the possible causes of a problem It is also called a fishbone or Ishikawa diagram

Name the seven basic tools of quality.

Quality Management Cause and effect diagram Flowchart Histogram Pareto chart Run chart Scatter diagram Control chart

Define cost benefit analysis.

Quality Management Comparing the costs of an effort to the benefits of that effort

Who has responsibility for quality on a project?

Quality Management The project manager is ultimately responsible- but the team members must inspect their own work

What does out of control mean?

Quality Management There is a lack of consistency and predictability in the process- due to the existence of assignable causes

What is a WBS dictionary?

Scope Management A description of the work to be done for each package

What are the main tools for displaying a schedule?

Time Management Network diagrams Bar charts Milestone charts

When is a work breakdown structure (WBS) created

and what is it used for? , Scope Management Created during project planning by the team and used to define or decompose the project into smaller- more manageable pieces Used to help determine project staffing- estimating- scheduling- and risk management.

What is the definition of a project?

Integration Management Temporary Create a unique product- service- or result

Define opportunity cost

Integration Management The opportunity given up by selecting one project over another

5-17 The _________ contains detailed descriptions of work packages. A. WBS dictionary B. Scope of work statement C. Task-level budget estimates D. Activity cost estimates

5-17 Answer: A. The WBS dictionary provides the project team with more detailed information about components of the WBS. Page 122 PMBOK Guide

5-5 The scope statement includes all of the following except: A. Project business objectives B. Project deliverables C. Detailed WBS D. Product summary

5-5 Answer C. The WBS is generally developed after the project scope statement has been defined and accepted.

10-10 The cost performance index or CPI is used to indicate: a) The sum of individual earned value budgets b) Cost efficiency c) The variance between EV and PV d) The variance between actual cost and budgeted cost

10-10 Answer B. CPI is a calculation associated with Earned Value Analysis that compares the efficiency is which project monetary resources are expended. Refer to page 183. PMBOK Guide

10-4 As a project manager for a new and highly complex project it is important for you to develop your communications plan: a) During execution b) At the earliest stages of the project c) Upon completion of the project plan d) Evenly throughout each project phase

10-4 Answer B - Communications planning is including in the planning process which is generally completed before execution. Updates to the project plan, including the communications plan will occur during the entire project life cycle. Refer to page 252 PMBOK Guide

12-1 When you decide to give up your rights under contract to expedite an activity by circumventing a process you have decided to: A. Enter into contract default B. Terminate the contract C. Execute a waiver D. Submit an informal change request

12-1 Answer C - A waiver is a voluntary relinquishment of a right or an entitlement.

12-2 The tools and techniques of Administer Procurements includes all of the following except: A. Performance reporting B. Payment systems C. Inspections and audits D. Change requests

12-2 Answer D - Change requests are generally an output of a process.

129. Which of the following is NOT one of the triple constraints? A. Scope B. Time C. Quality D. Cost

129. Answer: C Every project, regardless of what is being produced or who is doing the work, is affected by the triple constraint of time, scope, and cost. Any time you make a change to one or more of these constraints, it can also affect the other two - and the change can also affect quality, which is NOT one of the constraints. That's why you need to pay attention to all three constraints if you want your project to do well.

175. A project manager is running into problems with the team. People are repeatedly running into trouble over seemingly small problems: who takes notes at meetings, what dress is appropriate for the office, who people need to notify when they take a day off. The problems started out small, but as more people run into more problems the situation is rapidly escalating. This situation is most likely caused by a lack of: A. Sensitivity training B. Common courtesy C. A reward system D. Ground rules

175. Answer: D Ground rules help you prevent problems between team members, and let you establish working conditions that everyone on the team can live with. You set up the ground rules for a project to help guide people in their interactions with each other. Make sure you discuss the ground rules with the team during the kick-off meeting!

2/3-1 Each project management knowledge area is subdivided into _______________. a) Methods b) Processes c) Categories d) Best practices

2/3-1 Answer: B - Processes. Each project management knowledge area is subdivided into specific processes, each of which are further define by categories of inputs, tools and techniques, and outputs.

2/3-15 The initiating process group includes all of the following except: a) Stakeholder identification b) Business case development and review c) A contract or statement of work d) Project scope statement

2/3-15 Answer D - the project scope statement is an output of the Define Scope process and is part of the Planning process group.

4-10 ______________ is a collection of formal, documented procedures that defines how project performance will be monitored and evaluated. A. Concurrent engineering process B. Lessons learned documentation C. Change control system D. Project Selection process

4-10 Answer C. The change control system is defined in the PMBOK Guide as a collection of formal, documented procedures that defines how project performance will be monitored and evaluated and how changes will be approved.

4-13 ___________________ is a formal, approved document that includes the collection of outputs of the planning process and is used to manage and control project execution. A. The Project Management plan B. The Organizational process asset document C. The Organizational procedures document D. The Work authorization system

4-13 Answer A. The project management plan is a document that combines the results of all planning processes. Subsidiary plans, such as Time Management and Cost management are the outputs or results the planning processes.

4-4 _____________________ is any documented procedure used to apply technical and administrative direction and surveillance for the purpose of identifying, recording, and controlling any changes to product characteristics. A. Scope Change Control B. Schedule Change Control C. Quality Control D. Configuration Management

4-4 Answer D. Configuration management is considered a component of change control and is specifically associated with changes to features, functions and physical characteristics of a product or deliverable.

4-7 Assumptions are factors used for planning purposes and may be communicated to a project team by several different stakeholders. These factors, when stated, are generally considered to be true real or certain and are : A. Absolute and non-negotiable B. Not always based on factual information C. Estimates D. Easy to understand and communicate

4-7 Answer B. Assumptions documented during the project planning process are generally considered to be non-factual and require validation.

6-13 Your sponsor has informed you that a major project activity must be scheduled with a date to start no earlier than June 1. This is an example of: A. a major milestone B. a lag C. a constraint D. an activity duration estimate

6-13 Answer C. A constraint is a limitation. Predetermined dates limit options and eliminate alternatives.

6-9 Which of the following is not a tool or technique in the control schedule process? A. Variance analysis B. Performance reviews C. Resource leveling D. Change requests

6-9 Answer D. Change requests are an output of the control schedule process.

150. You are a project manager for a software project. As you are defining the scope of the work you need to do, you sit down with all of the project's stakeholders and record all of the requirements you can get from them. Which of the following is NOT a valid requirement from stakeholder analysis? A. The work the team does must be better than they did on their last project. B. There can be no more than 5% schedule variance on the project C. The quality of the product must fit within organizational metrics for software quality. D. The budget must be within 10% of our projected cost.

150. Answer: A Saying that the work must be "better" is subjective. Requirements gathered in stakeholder analysis need to be quantifiable. That way, the team has a goal they can shoot for and you can always tell how close or far from it you are.

153. Which of the following contracts has the MOST risk for the seller? A. Cost plus fixed fee (CPFF) B. Time and Materials (T&M) C. Cost plus percentage of costs (CPPC) D. Fixed price (FP)

153. Answer: D A Fixed price (FP) contract means that the buyer pays one amount regardless of how much it costs the seller to do the work. A fixed price contract only makes sense in cases where the doesn't get paid any more to do it.

154. You are managing an industrial design project for an important client. Two of your team members have a disagreement on project priorities. One person wants to do certain activities first, while the other feels they should be left until the end of the project. You work with both people to forge a compromise where those activities are neither first nor last, but instead done in the middle of the project. Nobody is particularly unhappy with this solution. Another name for a compromise is a: A. Win-win solution B. Win-lose solution C. Lose-lose solution D. Standoff solution

154. Answer: C A lot of people think compromise is a great way to handle conflicts. But any time there's a compromise, it means that everyone needs to give up something. That's why compromise is often called a lose-lose solution. It's always better to confront the problem and fix the root cause of the conflict. You should only force people to compromise if that's the only option.

156. What is the order of the Procurement Management processes? A. Plan Purchases and Acquisitions, Plan Contracting, Request Seller Responses, Select Sellers, Contract Administration, Contract Closure B. Plan Purchases and Acquisitions, Plan Contracting, Select Sellers, Request Seller Responses, Contract Administration, Contract Closure C. Plan Purchases and Acquisitions, Plan Contracting, Contract Administration, Request Seller Responses, Select Sellers, Contract Closure D. Plan Contracting, Plan Purchases and Acquisitions, Request Seller Responses, Select Sellers, Contract Administration, Contract Closure

156. Answer: A The Procurement Management processes build on each other. First you need to plan out all of your procurement activities (Plan Purchases and Acquisitions). Then you go through several processes for each of the contracts: planning, finding potential sellers, figuring out which sellers will actually do the work, making sure the contract is performed, and then closing it out.

158. You are the project manager for a railroad construction project. Your sponsor has asked you for a forecast for the cost of project completion. Which of the following is the BEST metric to use for forecasting? A. EV and AC B. SV and CV C. ETC and VAC D. SPI and CPI

158. Answer: C Forecasting is a cost monitoring tool that helps you predict how much more money you'll need to spend on the project. So which of the cost metrics would you use to do that? There are two useful numbers that you can use for forecasting. One of them is called Estimate to Complete (ETC), which tells you how much more money you'll probably spend on your project. And the other one, Variance at Completion (VAC), predicts what your variance will be when the project is done. You create one of the most important outputs of your entire project when the team is doing the

159. Information about the project must be distributed to all stakeholders. Which of the following process outputs is used to report the status and cost of project activities? A. Work performance information B. Issue logs C. Status reports D. Project records

159. Answer: A You create one of the most important outputs of your entire project when the team is doing the project work. Work Performance Information tells you the status of each deliverable in the project, what the team's accomplished, and all of the information you need to know in order to figure out how your project's going. But you're not the only one who needs this - your team members and stakeholders need to know what's going on, so they can adjust their work and correct problems early on. Did you think the answer was "Status reports"? You generally won't see that as a valid answer on the exam. The PMBOK® Guide is clear on this: a PM's job is to plan the work and control the project, not just gather and report status.

16. Which of the following is not a tool or technique of the Perform Quality Control process? A. Inspection B. Quality audits C. Pareto charts D. Statistical sampling

16. Answer: B Quality audits are when your company reviews your project to make sure that you are following all of the processes in your company correctly. They are a tool of the Perform Quality Assurance process.

160. A company uses a management technique that employs quality assurance techniques to continuously improve all processes. This is called: A. Just In Time Management B. Kaizen C. Ishikawa Diagrams D. Inspection

160. Answer: B Kaizen is a Japanese word that means "improvement" - and it's also a management technique that helps your company use problem-solving to constantly find new ways to improve. Kaizen focuses on making small improvements and measuring their impact. It's is a philosophy that guides management, rather than a particular way of doing quality assurance.

161. Your project has a virtual team. Half of your team members are located in another country, where they are working for a subcontractor. The subcontractor's team members speak a different dialect of English than your team does. After a conference call, two of your team members make jokes about the way your subcontractor's team members speak. What is the BEST way to handle this situation? A. Correct the team members individually, and hold a training session for your team to help remove communications barriers B. Immediately correct the two people in front of the rest of the team C. Report the team members to senior management and recommend that they be punished D. Remove noise from the communication by contacting the subcontractor and requesting that the team adjust the way they speak

161. Answer: A The PMP Code of Professional Conduct requires cultural sensitivity to others. It's unacceptable to belittle anyone based on how they speak, the way they dress, or any other aspect of their cultural background. If you see a member of your team doing this, it's your responsibility to do what's necessary to correct the behavior and prevent it from happening in the future.

163. Amit is the manager of a software project. His client has agreed on a Project Scope Statement at the beginning of the project, but whenever the client verifies deliverables, he comes up with features that he would like to add into the product. Amit is working with the client to find what requirements were missed in the planning stages of the project and how to plan better in the future. What is the BEST description of his project's current situation? A. Gold plating B. Scope creep C. Alternatives analysis D. Schedule variance

163. Answer: B The project's scope is changing every time the client is asked to verify the product - that's scope creep. The best way to avoid that is to be sure that the Project Scope Statement that is written in the planning stages of the project is understood and agreed to by everyone on the project. Scope changes should never come late in the project; that's when they cost the most and will jeopardize the team's ability to deliver.

165. You are managing a construction project to install wiring in an office building. You discover that one of your team members has taken a box of cable from the job site so he can wire his attic. What is the BEST way to respond? A. Do nothing B. Report the team member to your manager C. Report the team member to PMI D. Call the police

165. Answer: D If you discover that someone has broken the law, it is your duty to call the authorities and report that person. You need to do this, even if it seems like the offense is minor.

166. You are working with potential sponsors to determine which project your company will pursue. Based on the benefit-to-cost (BCR) ratios, which of the following four projects should you recommend? A. Project A has a BCR of 5:2 B. Project B has a BCR of 5:4 C. Project C has a BCR of 3:1 D. Project D has a BCR of 2:1

166. Answer: C When you're asked to use benefit-to-cost (BCR) ratios to select a project, always choose the project with the highest BCR because that's the project that gives you the most benefit for the least cost. An easy way to do it is to divide: Project A has a BCR of 5:2, and 5 / 2 is 2.5. Do that with all four projects, and you find that project C has the highest BCR.

168. You're managing a software project. Your team has discovered a problem, and as a result you've requested a change. The change will cost the project an extra three weeks, but without it several stakeholders might have problems with the final product. What's the NEXT thing that you should do? A. Instruct the team to make the change B. Call a meeting with each stakeholder to figure out whether or not to make the change C. Document the change and its impact, and put it through the change control system D. Don't make the change because it will delay the project

168. Answer: C Every change request needs to be evaluated to determine whether or not it should be made. That's what we do in the Integrated Change Control process - every change is analyzed to determine its impact. It's then documented as a change request and put into the change control system. That's where the stakeholders on the CCB determine if the change should be made. One way to remember this is to think about how a company bills for its services. If you've finished the work and delivered the product, the product is done and you can close it out. But it may take some time for your invoice

17. A project manager is working in a country where it is customary to pay the police for private protection services. The project manager's supervisor tells him that in another country, that would be considered a bribe. What is the BEST way for the project manager to proceed? A. Do not pay the police for private protection services, because that would be a bribe B. Pay the police for private protection services, because it is customary in the country they are operating in C. Consult the Cost Management Plan about payment D. Ask the supervisor for guidance

17. Answer: B Some questions on the exam might ask you about how to operate in another country. In this case, the question is about whether or not something is a bribe. Clearly, if it's a bribe, you can't pay it. But is it? If a payment to a government official (or anyone else) is customary, then it's not a bribe. You should go ahead and pay the police - as long as it's acceptable and legal in that country.

172. You are working on a construction project. You, your team, and your senior manager all feel that the work is complete. Your stakeholders have communicated their final acceptance of the project. You are now meeting with your team to update the organizational process assets with a record of knowledge gained about the project to help future project managers with their projects. This is BEST described as: A. Lessons learned B. Project records C. Project management information system (PMIS) D. Work performance information

172. Answer: A Lessons learned are some of your most important organizational process assets. At the end of every project, you sit down with the project team and write down everything you learned about you learned on this one.

181. Which of the following is the correct order of actions that you take during the Closing processes? A. Get formal acceptance, release the team, write lessons learned, close the contract B. Write lessons learned, release the team, get formal acceptance, close the contract C. Get formal acceptance, write lessons learned, release the team, close the contract D. Get formal acceptance, close the contract, write lessons learned, release the team

181. Answer: C This question isn't hard if you remember one really important fact: you need your team's help when you're writing the lessons learned. That's why you can't release the team until the lessons learned are documented and added to the organizational process assets. Also, the last thing you do on the project is close the contract. The reason for this is that you don't want to have to wait for payment before releasing the team, because most contracts have payment terms that allow for some period of time before full payment is required.

182. At the beginning of the project, you hold a meeting with all of the stakeholders in your project in order to figure out how everyone will communicate as the work goes on. Which of the following terms best describes that meeting? A. Qualitative Analysis B. Status meeting C. Communication Plan meeting D. Kick-off meeting

182. Answer: D The Kick-off meeting gets all of the stakeholders together to explain how communication will go. That way, everyone knows who to talk to if things go wrong or they run into any questions.

183. You are managing a project with 23 team members and six key stakeholders. Two team members identify a problem with the current approach. Addressing that problem will require changes to the project plan and its subsidiary plans. One of the stakeholders previously indicated that any delays are unacceptable, and your team members tell you that it's possible the change could cause the team to miss at least one critical deadline. What is the BEST way to deal with this situation? A. Analyze the impact that the change will have on the work to be done, the schedule and the budget. B. Deny the change because any delays are unacceptable. C. Gather consensus among the team that you should make the change before approaching the stakeholders, so that they can see the team supports making the change. D. Make the change to the project plan and subsidiary plans, and ask the team to implement the change.

183. Answer: A Not every change needs to be made. Before you make any change, you always need to evaluate its impact on the triple constraint - time, cost and scope - and how those changes will affect the quality of the deliverables. Until you analyze that impact, there's no way to know whether or not it makes sense to make the change.

186. A project manager is faced with two team members who have conflicting opinions. One team member explains her side of the conflict, and presents a possible solution. But before the other team member starts to explain his side of things, the project manager says, "I've heard enough, and I've decided to go with the solution I've heard." This is an example of: A. Withdrawal B. Compromise C. Smoothing D. Forcing

186. Answer: D Forcing means putting your foot down and making a decision. One person wins, one person loses, and that's the end of that.

190. You've been hired by a large consulting firm to lead an accounting project. You determine the needs of the project and divide the work up into work packages so that you can show how all of it fits into categories. What are you creating? A. A WBS B. A schedule C. A Project Scope Statement D. A contract

190. Answer: A A Work Breakdown Structure is the best way to visualize all of the work that will be done on your project. It divides all of the work up into work packages and shows how it fits into higher-level categories. By looking at the WBS, you can communicate to other people just how much work is involved in your project.

192. Which of the following is NOT a tool or technique of Risk Monitoring and Control? A. Bringing in an outside party to review your risk response strategies B. Revisitng your risk register to review and reassess risks C. Using Earned Value analysis to find variances that point to potential project problems D. Gathering information about how the work is being performed

192. Answer: D When do you gather work performance information? You do it when you're reporting on the performance of the team - that's why it's a tool and technique of the Performance Reporting process. But that's not something you do during Risk Monitoring and Control - Work Performance Information is an input to that process, which means it needs to be gathered BEFORE you start monitoring and controlling your risks.

193. You work for a consulting company and your team has implemented an approved scope change on your project. You need to inform your client that the change has been made. What's the best form of communication to use for this? A. Formal verbal B. Formal written C. Informal written D. Informal verbal

193. Answer: B You should always use formal written communication when you are communicating with clients about changes in your project.

194. Which of the following is NOT typically found in a project charter? A. Project requirements B. Authorization for a project manager to work on a project C. Work packages decomposed into activities D. An initial set of schedule milestones

194. Answer: C The project charter is created long before you start identifying work packages and activities. Those things are done as part of the project planning, which only happens after the project charter is completed.

195. What are the strategies for dealing with positive risks? A. Avoid, mitigate, transfer, accept B. Transfer, mitigate, avoid, exploit C. Exploit, share, enhance, accept D. Mitigate, enhance, exploit, accept

195. Answer: C Positive risks are opportunities that could happen on your project. The strategies for dealing with them are all about making sure that your project is in a position to take advantage of them or at least share in them with other projects if possible.

196. In which process do you create the Risk Breakdown Structure? A. Risk Identification B. Risk Response Planning C. Qualitative Analysis D. Risk Management Planning

196. Answer: D The RBS is part of the Risk Management Plan. It's structured very similarly to an WBS. The RBS helps you to see how risks fit into categories so you can organize your risk analysis and response planning.

197. Your project just completed, and one of your subcontractors has sent you floor seats to the next big hockey game to thank you for your business. What is the BEST way to respond? A. Thank the subcontractor, but do not give him preference in the next RFP B. Thank the subcontractor, but politely refuse the gift C. Ask for tickets for the entire team, so that it is fair to everyone D. Report the subcontractor to PMI

197. Answer: B The PMP Code of Professional Conduct says that you're not allowed to accept any kind of gift, not even if it's after the project has finished. That would be the same thing as taking a bribe.

199. You are managing a large construction project that's been broken down into sub-projects (or phases). Each of these sub-projects is scheduled to take between three and six months to complete. At the end of each sub.project, you plan to go through the closing processes and document lessons learned. Which of the following BEST describes what you must do at the beginning of each sub-project or phase? A. Make sure you don't involve the team, to avoid introducing too much project management overhead B. Develop the preliminary scope statement for the phase C. Use the Earned Value Technique to decide whether or not to finish the project D. Release all resources from the project and contact sellers to renegotiate all contracts

199. Answer: B When you have a project that's broken up into sub-projects or phases, it's important that you perform the Initiating processes at the beginning of the project. Answer B is the one that best describes something that happens during the processes in the Initiating group - developing the preliminary project scope statement.

2. Joe is a project manager on an industrial design project. He has found a pattern of defects occurring in all of his projects over the past few years and he thinks there might be a problem in the process his company is using that is causing it. He uses Ishikawa diagrams to come up with the root cause for this trend over projects so that he can make recommendations for process changes to avoid this problem in the future. What process is he doing? A. Perform Quality Planning B. Perform Quality Assurance C. Perform Quality Control D. Qualitative Risk Analysis

2. Answer: B Joe is doing root-cause analysis on process problems, that's Quality Assurance. Remember, Quality control is when you are trying to find problems in your work products through inspection. Quality Assurance is when you are looking at the way your process affects the quality of the work you are doing.

2/3-10 Your company is introducing a new product to be available in the first quarter of the next business cycle. The product will support an existing product as an add-on optional feature. Which of the following is true? a) This is an ongoing operation because the previous product is already in use by customers b) This is a project because it involves a new product that has not been previously developed and sold by the company c) This is an operation because it adding a feature will be part of an ongoing sales effort d) This is a program that supports the operations of the company

2/3-10 Answer B - This is a project to develop something new and unique and will have a defined end date. It is not an operation or a program. The new product is separate from the existing product. Refer to page 5 and 6 of the PMBOK ® Guide

2/3-11 Generally, a project manager's level of authority during his or her project assignment can be directly related to which of the following? a) The project manager's relationship with the project sponsor b) The organizational structure c) The project manager's communications skills d) The project manager's technical competency

2/3-11 Answer B - The project manager's level of authority usually depends on the type of organizational structure. These structures include Functional, Matrix, and Projectized. Communications skills and technical ability may affect level of authority in some organizations but managerial structure is generally the major factor. Refer to page 27 -28 of the PMBOK Guide 4th edition.

2/3-12 A significant advantage of the functional organizational structure is: a) All employees are grouped by expertise and assigned to one clear manager and chain of command b) Communication between the elements of each functional group is fast and efficient c) Project work is considered to be priority work in all functional groups d) Resources are easily shared across functional groups

2/3-12 Answer A - In a functional organizational structure, people are grouped by technical expertise and are a assigned to one clearly defined manager. This establishes efficient internal operations and communications. The functional structure can create difficulties in communicating between groups,technical skills are not generally shared with other functional groups and operations and functional work are generally priorities.

2/3-13 You have been assigned as project manager in a balanced matrix organizational structure. This presents a challenge to you in obtaining and assigning project resources because a) The project manager has minimal authority in a balanced matrix b) The project manager has an equal level of authority with the functional managers and this may lead to conflict is the assignment of resources c) In a balanced matrix the project budget is controlled by the functional managers d) The project manager is assigned to the project on a part time basis.

2/3-13 Answer B - In the balanced matrix, the project managers authority is low to moderate and usually at an equal level with the functional managers. This can result in conflicts regarding resource assignments, priorities, and in the general management of the project. The project manager is assigned full time and control of the budget is shared between project manager and functional manager.

2/3-14 Generally, projects are panned by developing phases that are performed sequentially. In some cases, it is necessary to accelerate the project life cycle by overlapping project phases. Which of the following best describes this technique? a) The technique of overlapping requires the elimination of many project activities b) Overlapping project phases will compress the schedule but will not generally have an effect on project risk c) This technique is known as fast tracking and the risks should be determined to be acceptable before it is implemented d) This technique is known as crashing and can increase the cost of the project but will not affect project risk

2/3-14 Answer C - Overlapping is referred to as fast tracking and can introduce risk into the project. Generally, activities are not removed and the scope is not changed. Crashing involves the addition of resources or the use of overtime and will usually increase project cost.

2/3-16 Which of the following process groups is specifically targeted to complete the project work and to satisfy project requirements? a) Planning process group b) Executing process group c) Monitoring and Controlling process group d) Closing process group

2/3-16 Answer B - The executing process group is intended to ensure that the work defined in the project plan is performed. Refer to page 39 of the PMBOK Guide 4th edition.

2/3-17 During the execution of a project the project manager should communicate the need for a change control process mainly because a) The cost of project changes will not change significantly as the project progresses but it is important to maintain a record of all changes for budget tracking purposes b) The cost of project changes will likely increase through the project lifecycle and a process should be in place to ensure that only necessary changes are considered and implemented c) This will minimize the number if changes that can be introduced into the project d) The change control process will ensure that only stakeholders with significant authority can submit change requests.

2/3-17 Answer B - As a project proceeds, the cost of change will, in most cases increase. This requires project managers and team members to control changes effectively and to emphasize the need for proper and well organized planning. A change control process is not designed to minimize change, it is intended to manage change and prevent unauthorized changes.

2/3-18 Success in portfolio management is generally defined as: a) Compliance with schedule, budget, and specifications requirements b) Benefits realization c) Aggregate performance of all components d) Control of changes to specific products and services

2/3-18 Answer C- Portfolio management is generally associated with the relationships between components in the portfolio, effective resource management to protect priority components, and the aggregate results of the portfolio as they relate to strategic performance. Refer to page 9 of the PMBOK Guide ® 4th edition.

2/3-2 The application of knowledge, skills, tools and techniques to project activities to meet the project requirements is referred to as: a) Project initiation b) Project coordination c) Project administration d) Project management

2/3-2 Answer: D - Project management. Refer to page 6 PMBOK ® Guide. The question refers to the specific definition of project management as provided in the PMBON ® Guide 4th edition.

2/3-3 All of the following are examples of Enterprise Environmental Factors except: a) Organizational culture b) Political climate c) Performance measurement criteria d) Existing facilities and infrastructure

2/3-3 Answer : C - performance criteria is an example of an organizational process asset. Process assets include policies, procedures, templates and other items that will assist in guiding the completion of project work. Refer to pages 14 and 32 in the PMBOK ® Guide 4th edition.

2/3-4 The person or organization that provides the funding or financial resources for the project is referred to as the a) customer b) Sponsor c) Steering committee d) Project Management Office

2/3-4 Answer: B - The Sponsor provides the financial resources and is considered to be a key stakeholder. The customer is considered to be the recipient of the product of the project and the person or organization that will pay for and use the actual project deliverable. Refer to page 25 of the PMBOK ® Guide 4th edition.

2/3-5 During the project lifecycle stakeholder identification is expected to be: a) A continuous and sometimes difficult process b) The responsibility of the project sponsor c) Completed prior to the approval of the project charter d) Focused only stakeholders who will be impacted favorably as a result of the project

2/3-5 Answer: A - Stakeholder identification will continue throughout the project life cycle. As the project proceeds through each phase, additional stakeholders may become involved while others will be released. Stakeholder identification is conducted primarily by the project manager but some stakeholders may be identified in the project charter or the project contract. Stakeholder identification may include people and organizations favorably affected or negatively affected by the project outcome.

2/3-6 The end of a project phase is generally considered to be: a) The formal authorization to begin the next project phase b) A natural point to assess project performance and determine if the project should proceed to the next phase c) The points in the project life cycle where risk is at its lowest level d) The point where formal control procedures of the project are generally enforced

2/3-6 Answer B - As a project phase nears completion the project manager and team should assess the performance of the project and determine if acceptable conditions exist to support a decision to move forward or discontinue the project. Risk levels will vary as the project progresses and the end of a phase is generally considered to be a good point to reassess risk. Project control procedures should be enforced throughout the project life cycle. Refer to page 20 of the PMBOK Guide 4th edition.

2/3-7 All of the following statements about the project life cycle are true except: a) Cost and staffing are at the highest levels during the start of the project b) Risk is at the highest levels of uncertainty at the start of the project c) The control needs of the organization will determine how many phases will be included in the project life cycle d) Project phases are typically completed sequentially but can be overlapped to accelerate completion of a project

2/3-7 Answer A - Cost and staffing are generally at the lowest levels during the startup and first phase of a project. Refer to page16 of the PMBOK ® Guide 4th edition.

2/3-8 As you are defining the project in more detail and moving through the phases of the project you are engaged in which of the following? a) Progressive elaboration b) Project selection c) Monitoring and controlling d) Decomposition

2/3-8 Answer A - Progressive elaboration is defined as "moving forward in increments and adding more detail as the project progresses. Project selection precedes the detailing or progressive planning of a project. Monitoring and controlling is ongoing throughout the project lifecycle and is utilized during and after detailed planning and elaboration of the project. Decomposition is generally associated with the development of the WBS and refers to the breakdown of large items into smaller, more manageable components.

2/3-9 All of the following are generally considered characteristics of a project except: a) Unique undertaking b) A temporary endeavor with specific starts and end dates c) Ongoing and continually supporting organizational operations d) Completed when all objectives are achieved or terminated when the project objectives are no longer viable.

2/3-9 Answer C - Projects have some characteristics that are similar to operations. Projects and operations require resources, they are planned and scheduling is involved. Projects, however, are generally considered temporary, regardless of total scheduled time. Operations are ongoing and support the day to day functions of an organization. Refer to page 5 in the PBOK ® Guide 4th edition.

20. You have just delivered a product to your client for acceptance, when you get a call that some features they were expecting are missing. What's the first thing you should do? A. Get your team together and reprimand them for building a product that doesn't meet user expectations. B. Tell the client that the product passed all of your internal quality inspections and scope verification processes, so it must be fine. C. Tell the team to start building the missing features into the product right away. D. Call a meeting with the client to understand exactly what is unacceptable in the product and try to figure out what went wrong along the way.

20. Answer: D You can't do anything about the problem until you understand it. You should meet with the client to get a better understanding of what went wrong and why the product is not meeting their needs.

200. Which of the following is NOT an output of the Manage Stakeholders process? A. Approved corrective actions B. Deliverables C. Updates to the project management plan D. Organizational process asset updates

200. Answer: B This question looks hard, but it's actually pretty easy if you remember that Manage Stakeholders is just an ordinary Monitoring & Controlling process - it's the one for the Communications Management knowledge area. Once you know that, it's easy to pick out the output that doesn't fit! When you're handling a change in a Monitoring & Controlling process, you update your project plan and organizational process assets, and you approve corrective actions. But you don't create

21. You are managing a software project. You are partway through the project, and your team has just delivered a preliminary version of part of the software. You are holding a weekly status meeting, when one of the team members points out that an important stakeholder is running into a problem with one of the features of the current software. The team member feels that there is a risk that the stakeholder will ask for a change in that feature, even though that change would be out of scope of the current release - and if the stakeholder requests that change, there is a high probability that the change control board would approve the change. What is the BEST action to take next? A. Mitigate the risk by asking a team member to get familiar with the feature of the software that might be changed B. Schedule a meeting with the stakeholder to discuss the risk C. Add the risk to the risk register and gather information about its probability and impact D. Add the risk to the issue log and revisit it when there is more information

21. Answer: C Your risk register is one of the most important project management tools that you have - that's why you review it and go over your risks at every meeting. Any time you come across a new risk, the first thing you should do is document it in the risk register. It's really easy to lose track of risks, especially when you're running a big project. By adding every risk to the register, you make sure that you don't forget about any of them. So once you've identified the risk, what's the next step? You analyze the impact and probability of the risk! That's what the Qualitative Risk Analysis process is for. You shouldn't take any other action until you've analyzed the risk. The reason is that it might turn out that the risk is very unlikely, and there might be another risk with a higher probability and larger impact that deserves your attention.

22. Tom is the project manager of an accounting project. He has just finished defining the scope for the project and is creating the WBS. He goes to his organizational process asset library and finds a WBS from a past project to use as a jumping off point. Which of the following is the tool of the Create WBS process is he using? A. Decomposition B. Delphi Technique C. Brainstorming D. Templates

22. Answer: D Tom is using a Template. As your company completes projects, the documents created along the way are stored in an Organizational Process Asset library. The WBS's from those past projects can be a great way to be sure that you are thinking of all of the work that you will need to do from the very beginning. Your project will never match the old WBS exactly, but there could be work packages listed there that you might not have thought of on your own but really are necessary in your project.

23. Which of the following BEST describes the main purpose of the project charter? A. It authorizes the project manager to work on the project B. It identifies the sponsor and describes his or her role on the project C. It contains a list of all activities to be performed D. It describes the initial scope of the work

23. Answer: A The project charter does several important things: it lays out the project requirements, describes an initial summary milestone schedule, documents the business case and identifies initial risks, assumptions and constraints. But the most important thing that a project charter does is that it identifies the project manager, and assigns him or her the authority necessary to get the job done.

24. You are the project manager for a software development project. When you need to get staff from the manager of the QA department, he suggests a few test engineers with performance problems for your team. Which is the BEST response to this situation? A. Stop talking to the QA manager. B. Call a meeting with the QA manager to try to figure out why he suggested those candidates and how the two of you can work together to find team members with suitable skills and interests for your team. C. Tell the QA manager that the staffing problems are really no big deal, and you're sure that the two of you can eventually figure out the right answer together. D. Tell the manager that you know which team members you want for your team and he needs to give them to you.

24. Answer: B You need to figure out the root cause of the problem if you are going to find a lasting solution to it. The best choice is to meet with the manager and understand why he offered the team members to you and what you can do to work together to find the right people for your team. It's possible that he has some information about those staff members that make them a good fit after all.

25. You are managing a construction project using a fixed price (FP) contract. The contract is structured so that your company will be paid a fee of $85,000 to complete the work. There was a $15,000 overhead cost that your company had to cover. It's now three months into the project, and your costs have just exceeded $70,000. The project has now consumed the entire fee, and your company will now be forced to pay for all costs on the project from this point forward. What's the BEST way to describe this situation? A. The project manager has overspent the budget B. The project is overdrawn C. The project has reached the point of total assumption D. The project has ceased to be a profit center for the company

25. Answer: C The point of total assumption is the point at which the seller assumes the costs. In a 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.

26. A project manager is reporting the final status of the closed contract to the stakeholders. Which form of communication is appropriate? A. Informal written B. Informal verbal C. Formal written D. Formal verbal

26. Answer: C All project reports must be communicated as formal written documents. Not only that, but anything that has to do with a contract DEFINITELY needs to be formal written.

27. You are managing a software engineering project. Your team is having trouble completing their object design tasks. One of your team members tells you that her friend at another company sent her a copy of a software package they own that will help your team meet its deadline. Without that software package, your project will probably be late. But you don't have enough money in the budget to purchase it. What's the BEST way to handle this situation? A. Tell the team member not to use the software, and accept that the project will be late. B. Use the software so that your project comes in on time. C. Purchase the software so that you have a licensed copy. D. Tell the team member that you need to maintain plausible deniability, so she should just do what's necessary and not tell you about it.

27. Answer: A As a certified project management professional, it's your duty to respect copyrights. Purchased software is copyrighted, and you cannot use it without a license. Ever. If you don't have the budget to buy it, you can't use it.

28. You are managing a project with a total budget of $450,000. According to the schedule, your team should have completed 45% of the work by now. But at the latest status meeting, the team only reported that 40% of the work has actually been completed. The team has spent $165,000 so far on the project. How would you BEST describe this project? A. The project is ahead of schedule and within its budget B. The project is behind schedule and within its budget C. The project is ahead of schedule and over its budget D. The project is behind schedule and over its budget

28. Answer: B If you want to evaluate how the project is doing with respect to the schedule and budget, you need to calculate CPI and SPI. The first step is to write down the information you have so far: BAC = $450,000, planned % complete = 45%, actual % complete = 40% and AC = $165,000. Now you can calculate PV = BAC x planned % complete = $450,000 x 45% = $202,500. And you can calculate EV = BAC x actual % complete = $450,000 x 40% = $180,000. Now you have the information you need to calculate CPI and SPI. CPI = EV / AC = $180,000 / $165,000 = 1.09, which is above 1.0 - so your project is within its budget. And you can calculate SPI = EV / PV = $180,000 / $202,500 = .89, which is below 1.0 - so your project is behind schedule.

32. Which of the following contracts has the MOST risk for the buyer? A. Cost plus fixed fee (CPFF) B. Time and Materials (T&M) C. Cost plus percentage of costs (CPPC) D. Fixed price (FP)

32. Answer: C Cost-plus contracts are ones where the seller bills the buyer for any costs incurred on the project. A "Cost plus percentage of costs" (CPPC) contract is one where the seller agrees to pay a percentage of the total costs of the project. This is the riskiest kind of contract for the buyer, because if the costs get really high then they're passed along to the buyer - and the seller doesn't have any incentive to keep them down!

34. While identifying risks for a new construction project, you discover that a chemical you are using on your building cannot be applied in rainy conditions. You also learn that your project will be ready for the chemical application around the time when most of the rainfall happens in this part of the country. Since the project can't be delayed until after the rainy season and you need to make sure the building gets the chemical coating, you decide that your team will just have to work around the rain. This is an example of which strategy? A. Mitigate B. Exploit C. Accept D. Transfer

34. Answer: C This is an example of accepting a risk. The team can't do anything about the weather, so the project manager has accepted the fact that they could end up being delayed by it.

36. Which of the following is NOT a characteristic of the Project Management Plan? A. Collection of subsidiary plans B. Formal, written communication C. A bar chart that shows the order of tasks and their resource assignments D. Must be approved by project sponsor

36. Answer: C The Project Management Plan is not a bar chart (or a Gantt chart). It's the collection of all of the planning documents you create through all of the knowledge areas within the five process groups. It describes how your project will handle all of the activities associated with your project work.

4-1 The set of combined processes implemented by the project manager to ensure that all of the elements of the project are effectively coordinated are known as: A. Project execution B. Inputs, Tools and Techniques, Outputs C. Project Integration Management D. Project monitoring and control

4-1 Answer C. Project integration management combines all of the processes within the entire project life cycle through the 5 major process groups - Initiating, Planning, Executing, Monitoring & Controlling, and Closing.

4-11 During the planning process the project manager should be aware that assumptions generally involve: A. A degree of risk B. Input from all stakeholders C. Financial controls D. Detailed, factual information

4-11 Answer A. Assumptions are not based on factual information and failure to validate may result is significant risk events.

4-12 _________________ are applicable restrictions that will affect project performance A. Organizational policies B. Performance guidelines C. Constraints D. Additional planning requirements

4-12 Answer C. Constraints are restrictions or limitations and must be managed throughout the project life cycle. Examples include resource availability, predetermined schedules and predetermined budgets.

4-14 Risk plans, quality plans, change control plans are all ______________ to the project plan. A. Constraints B. Appendixes C. Additions D. Subsidiaries

4-14 Answer D. Subsidiary plans are the outputs of the individual planning processes associated with Scope, Time, Cost, Quality, Human Resources, Communications, Risk, and Procurement management.

4-16 As a project manager, you must ensure that changes are coordinated across the entire project life cycle from conception to completion . The process that focuses on this requirement is________________ A. Management of the Triple Constraint B. General management C. Integrated change control

4-16 Answer C. Integrated change control includes all of the lower level processes and subsidiary plans that will be used to manage project performance throughout the project life cycle.

4-17 As a project is being executed and is progressing through its life cycle you notice that a significantly large percentage of project changes occurring on the project have been originated by the research department. What should you do? A. Assign a team member to work solely with the research department B. Change your communication plan to ensure that you, as the project manager, are the only person assigned to interface with the research department C. Ask the research department to assign one person to be your liaison D. Schedule a meeting with the research department to review the change process and determine the causes of the changes

4-17 Answer D. The most appropriate action to take in this case is to ensure that the research department fully understands the project scope of work, the change control process, and to determine why the change requests continue to be submitted.

4-18 You are the project manager on an information technology project. A technical specialist on your team, after having an informal meeting with a low ranking customer representative working on the project, determines that a simple alteration in the display would be a great addition to the project. You and the project sponsor have already signed off on the scope and a change control process is in place. The technical specialist installs the change with no negative effect to the project schedule and at no additional cost. What management action should be taken? A. The information specialist should be recognized for exceeding customer expectations without affecting project cost or schedule. B. The project manager should add a task to the project plan with no associated time. C. The technical specialist should be informed that his actions were not authorized and that the action was in appropriate. D. The project manager should create a change control form, and have the customer sign-off, since the change has already been made.

4-18 Answer C. The change control process should be followed by everyone on the project team. Failure to manage change effectively can result in significant scope creep and could result in serious implications and additional risk and liability.

4-19 Two months into a design project, the customer requested a modification to the product specifications. The change was immediately implemented by the project team without notifying the project manager. During the final testing phase, results were different than what had been planned for. This scenario is an example of which of the following? A. Poor adherence to the change control process B. Poor adherence to the communication plan C. Poor development of the quality management plan D. Poor definition of the test plan

4-19 Answer A. The change control process was not followed. Failure to follow the agreed upon change control processes may create serious risk situations and jeopardize and entire project.

4-2 The document that assigns a project manager and officially authorizes a project to use organizational resources for the purpose of planning, executing and controlling a project is the: A. Project Charter B. Project Plan C. Scope Statement D. Work authorization Form

4-2 Answer A. The project charter is part of the initiating process and provides the authorization to move forward. The project scope statement, the project plan, and work authorization process are developed after the charter has been approved.

4-3 A project manager schedules meetings for many different reasons. Status review meetings are typically : A. Held to provide all stakeholders with critical project information B. Regularly scheduled meetings held to exchange information about the project between project team members. C. Held to update departmental staff of project status D. Held only when there is a need for a workaround

4-3 Answer B. Generally project status meetings provide the project team and those stakeholders directly involved in project activities with up to date information about the project. Other stakeholders and higher level managers may receive information through formal reports or specifically scheduled meetings. Workarounds are temporary responses to an unplanned situation and generally require immediate action.

4-5 Generally, Earned Value Management is a technique used for measuring variance on: A. Small , short duration projects B. Large, complex projects C. Only projects external to an organization D. Only Government projects

4-5 Answer B. Earned value management is generally associated with large, long term projects.Earned value management provides a means to determine project performance at any point in the project life cycle and also provides an opportunity to forecast the possible outcome of the project in terms of cost and schedule.

4-8 The project management plan is used to: A. Provide project inputs, tools and techniques, and outputs B. Guide project execution, document project planning assumptions, and facilitate communication among stakeholders C. Provide general management, product knowledge, and project management information D. Create organized policies using stakeholders skills and knowledge

4-8 Answer B. The project plan is based on estimates, past experience of the project team, and other available information. Generally, the project plan is considered to be a guide that is expected to change throughout the project life cycle. The initial project plan provides an approach to achieving objectives and guidelines for communicating information.

4-9 ______________ are usually included to support the overall project management plan and are developed for the purpose of providing more detailed information, guidelines and control processes for specifically defined project elements or planning components. A. Change request forms B. Performance reports C. Subsidiary plans D. Statements of work

4-9 Answer C. The project management plan is actually a combination of several plans that provide overall guidance to the project team. These plans include Change Management, Scope Management, Cost management, Resources management and other depending on size and complexity of the project.

40. Your project files need to be sent via overnight mail to your company's central office. If the files do not arrive tomorrow, your company will not be able to deliver the project on time and you will lose an important client. The deadline cannot be negotiated. The team worked right up to the last minute in order to give you the files. Due to a traffic jam, you are running late and the overnight delivery company will close in five minutes. You can only make it if you drive over the speed limit. Which of the following is correct? A. You must drive over the speed limit so that you can save the client relationship B. You must stay within the speed limit, even if you lose the client C. You must negotiate a new deadline D. You can use the earned value metrics to show that the SPI is over 1, meaning the project is not late

40. Answer: B The PMP Code of Professional Conduct states that you must follow every law, no matter how trivial, and no matter how serious the consequences are. Any time that you see a question that asks about breaking a law, your answer should always be the choice that doesn't break it - no manner how minor the infraction, and how serious the consequences.

46. A change has occurred on your project. You've documented the change, filled out a change request, and submitted that request to the change control board (CCB). What's the NEXT thing that must happen on the project? A. A senior manager decides whether or not to make the change and informs the project management team of the decision. B. The project manager informs the CCB whether or not to approve the change. C. Stakeholders on the CCB use expert judgment to evaluate the requested change for approval. D. The project manager meets with the team to analyze the impact of the change on the project's time, scope and cost.

46. Answer: C A change control board (or CCB) is a group of people that approves or rejects changes. It usually includes the sponsor, which makes sense because the sponsor is the one funding the project. It's not the project manager's job to tell the CCB whether or not to approve a change - they use their expert judgment to figure out whether or not the change is valuable. It IS the project manager's job to make sure the impact of the change on the triple constraint (time, scope and cost) is evaluated, but that impact analysis should happen BEFORE the change request is sent to the CCB.

5-1 Determining whether the project scope has been completed relies mostly upon the use of: A. Project Charter B. Project Scope Statement C. Statement of Work D. Project Plan

5-1 Answer B. The project charter authorizes the project but is not a detailed plan. The statement of work generally precedes a contract and provides a narrative description of work to be completed. The project plan is derived from the project scope statement. The scope statement answers the questions: What? Why? Who? Where? When? And How? and along with the WBS provides the detailed description of what must be accomplished.

5-11 You receive a verbal change request from your client that will impact the agreed upon scope of work. You should A. Accept the change and document the request B. Deny the change and advise the customer that changes to the scope are not acceptable C. Review the change control process with the client D. Accept the change only after you make sure you will not be held accountable for anyadditional work.

5-11 Answer C: The appropriate action when change requests are submitted is to follow the establishedand agreed up change control process.

5-12 All of the following are included in scope change control except: A. Influencing factors that create scope changes B. Determining that a change has occurred C. Verifying the correctness of work results D. Managing the actual changes when and if they occur

5-12 Answer C: Verifying the correctness of work is associated with quality management and scope verification.

5-13 A term used to describe the magnitude of unauthorized variations to the scope of work is: A. Re-planning B. Feasibility analysis C. Scope creep D. Performance measurement

5-13 Answer C: Scope creep is the general term used to describe work that has been added to the project scope without proper authorization.

5-14 Reviews, audits, and walk-throughs are examples of: A. Formal acceptance B. Inspection C. Additional planning D. Internal failure

5-14 Answer B. Inspection of products may be accomplished through reviews, audits, and walkthroughvisits. Walk-throughs are commonly associated with projects that produce physical deliverables thatcan be observed and tested. Formal acceptance usually follows a successful inspection.Internal failure results from non-conformance to processes.

5-15 The _____________ aids in creating a more detailed definition of the scope of the project and can be used to verify the work of the project. A. Scope baseline B. WBS C. Project charter D. Alternatives identification

5-15 Answer B. the scope baseline is an output of scope definition. The project charter initiates the project and provides high level information. Alternatives identification does not provide detailed descriptions of project work.

5-16 The scope baseline is the defined as the: A. Scope statement, WBS, and any approved changes B. Description in the project charter C. Project schedule and budget D. Only valid performance measure

5-16 Answer A: The scope baseline is an output of the Create WBS process. Page 122 PMBOK Guide 4th edition.

5-18 A scope statement is important because it: A.Provides an executive summary of the project for sponsors. B. Documents authorization of the project for the stakeholders. C. Provided criteria for determining total project cost. D. Defines the product, the project deliverables and user acceptance criteria

5-18 Answer D: The scope statement is not an executive summary or the project charter. It does not include all of the information needed to develop a complete cost estimate. It does define the project in detail and includes descriptive acceptance criteria.

5-2 You have been selected as the project manager for a major infrastructure upgrade at your company headquarters. This means that: A. A project charter has been approved and signed by management B. Project selection processes have been initiated C. The project plan has been progressively elaborated D. The scope of the project has been verified

5-2 Answer A. Generally, if a project manager is assigned, the project has been approved and authorized. Project selection processes will determine if a project should be approved. The selection of a project manager indicates that planning will begin soon. The scope of the project will be determined during the planning process and verified as the project progresses.

5-20 A stakeholder wants to make a change to the work breakdown structure that does not affect the time or cost of the project. What is the BEST thing to do? A. Tell the stakeholder that the change cannot be made without revising the project plan B. Make the change C. Meet with management D. Look for other impacts to the project

5-20 Answer D. The correct action is to analyze the change and determine the potential impact on other area if the project. Impact analysis is a key factor in project change control.

5-3 As a project manager you should always become familiar with the description of the product that will be delivered to ensure that: A. There is a relationship between the product and the business need that the project was initiated to address B. No changes to the product scope will occur C. The project scope can be changed without detailed analysis D. All constraints have been removed

5-3 Answer A. The project manager should understand the purpose and functions of the product and the needs of the organization that will receive the product.

5-4 The process of planning in increments, adding detail as the plan is developed is known as: A. Scope definition B. Decomposition C. Progressive elaboration D. Initiation

5-4 Answer C. This is the specific definition of progressive elaboration. Scope definition, decomposition, and initiation are all included in the broad definition of progressive elaboration

5-7 The process that will help to improve the reliability of cost, duration, and resource estimates is: A. Define scope B. Product analysis C. Benefit Cost analysis D. Initiation

5-7 Answer: A. The Define scope process produces a detailed description of the project and product. The result is the scope statement which will provide a basis for more detailed planning. Product analysis is included in the define scope process. Benefit Cost analysis is generally associated withproject selection. Initiation precedes the detailed planning process.

5-8 The document that describes in detail, the objectives, project work, deliverables, and product of a project is the A. Scope statement B. Project Charter C. WBS D. WBS dictionary

5-8 Answer A. The project charter does not provide project details. The WBS is developed form the information in the Scope Statement. The WBS dictionary provides detailed information about elements of the WBS.

5-9 Completion of the product scope is measured against: A. Product requirements B. Project requirements C. Project Objectives D. Scope statement

5-9 Answer: A. Product scope refers to the complexity of the product in terms of features, functions, and physical characteristics. Project requirements, project objectives, and the scope statement are associated with project scope.

5. Your project has a virtual team. Half of your team members are located in another country, where they are working for a subcontractor. You want to promote the top performing foreign team member to a leadership position, but you are told by the other team members that women are not allowed to hold positions of authority. When you bring it up with their manager, you are informed that it is the subcontractor's policy not to promote women, and that in their country, it is culturally considered offensive for a man to take orders from a woman. What is the BEST way to respond to this situation? A. Inform the subcontractor that they must adopt a non-discriminatory policy or you will be forced to terminate the contract and find a subcontractor that does not discriminate against women B. Do nothing, because discrimination against women is a cultural norm in the subcontractor's country C. Request that the team attend sensitivity training D. Promote another team member, but find a different way to reward the woman for her work

5. Answer: A Sexism, racism or other discrimination should never be tolerated, no matter what the circumstances. You must separate your team from discriminatory practices, even if those practices are normal in the country where you're working.

50. Which of the following is NOT an output of the Close Project process? A. Project closure documents B. Project management methodology C. Project files D. Formal acceptance documentation

50. Answer: B The project management methodology describes the process that you use to manage your project. It really doesn't have anything to do with closing the project. The other three answers, however, do! You need project closure documents to show that the project really was closed out. You gather all of the project files together so that they can be archived. And formal acceptance documentation is what you get from your customer that tells you they've approved the final product.

51. The scope baseline consists of: A. The Scope Management Plan, the Project Scope Statement, and the WBS B. The Scope Management Plan, the Preliminary Scope Statement, and the WBS. C. The Scope Management Plan, the WBS, and the WBS Dictionary D. The Project Scope Statement, the WBS, and the WBS Dictionary

51. Answer: D The scope baseline is made up of the Project Scope Statement and the WBS and the WBS Dictionary. The WBS Dictionary is considered a supporting document to the WBS, so if the WBS were to change, then the dictionary would, too.

52. You are managing a construction project that is currently being initiated. You met with the sponsors and several important stakeholders, and have started to work on the preliminary scope statement. You've documented several key assumptions that have been made, and identified project constraints and initial risks. Before you can finish the preliminary scope statement, you must make a rough order of magnitude estimate of both time and cost, so that the sponsor can allocate the final budget. What's the range of a rough order of magnitude (ROM) estimate? A. -10% to +10% B. -50% to +50% C. -50% to +100% D. -100% to +200%

52. Answer: C A rough order of magnitude (ROM) estimate is an estimate that is very rough. Typically, you should expect a ROM estimate to be anywhere from half (-50%) to twice (+100%) the actual result. That means that if your ROM estimate for a project is 6 months, then you should expect the actual project to be anywhere from 3 months to 12 months. (That's what it means for your estimate to be within an order of magnitude.)

54. Mary is a project manager at a consulting company. The company regularly builds teams to create products for clients. When the product is delivered, the team is dissolved and assigned to other projects. What kind of organization is she working for? A. Weak matrix B. Projectized C. Functional D. Strong Matrix

54. Answer: B Mary is working for a projectized organization. In those companies, the project manager has authority over the team as well as the project.

57. Customer satisfaction should be measured at the end of the project to maintain long-term relationships. Which of the following is NOT always an aspect of customer satisfaction? A. The product meets its stated and unstated requirements B. The project is profitable C. The product is high quality D. The customer's needs are met

57. Answer: B Customers can be satisfied even when a project is not profitable - customer satisfaction isn't always about money. Rather, customer satisfaction is about making sure that the people who are paying for the end product are happy with what they get. When the team gathers requirements for the specification, they try to write down all of the things that the customers want in the product so that you know how to make them happy. Some requirements can be left unstated, too. Those are the ones that are implied by the customer's explicit needs. In the end, if you fulfill all of your requirements, your customers should be satisfied.

58. Dave is the project manager for a construction project that is building a gazebo. When the project first started, he met with the stakeholders to define the scope. The sponsors mentioned that the gazebo is a really important part of their daughter's wedding ceremony that was planned for 7 months from then. In fact, they said that if the gazebo couldn't be completed in 7 months, it wouldn't be worth it for them to even start the project. Dave wrote down the 7-month deadline to put in his Project Scope Statement. In which section of the document did the deadline appear? A. Project Deliverables B. Project Objectives C. Project Constraints D. Project Assumptions

58. Answer: C Since the project absolutely must be completed in 7 months for it to be worth doing, the deadline is a constraint. It must be met for the project to be considered successful.

59. Which of the following is a "hygiene factor" under Herzberg's Motivation-Hygiene Theory? A. Recognition for excellent work B. Self-actualization C. Good relations with coworkers and managers D. Clean clothing

59. Answer: C Herzberg's Motivation-Hygiene Theory states that people need things like good working conditions, a satisfying personal life, and good relations with the boss and coworkers - these are called "hygiene factors." Until people have them, they generally don't care about "motivation factors" like achievement, recognition, personal growth, or career advancement.

6-11 If you are required to develop a diagram that includes feedback loops or conditional branches you would use: A. a PERT chart B. a GERT chart C. PDM D. ADM

6-11 Answer B. A GERT Chart, Graphical Evaluation Review Technique, is a flow chart that includes decision points and feedback loops. A PERT Chart (Program Evaluation Review Technique) utilizes a network diagram. There are no feedback loops or decision points in a project network diagram. PDM - precedence diagram method and ADM - activity diagram method produce network diagrams.

6-12 You are in the process of calculating the single, deterministic early and late start and finish dates for your project activities. This form of mathematical analysis is known as: A. CPM B. Monte Carlo simulation C. Program Evaluation Review Technique D. Activity duration estimating

6-12 Answer A. CPM - Critical Path Method and utilizes the forward and backward pass to determine early start, early finish, late start and late finish of each activity. Monte Carlo simulation is a quantitative risk analysis technique. Activity duration estimating precedes the development of the project schedule.

6-14 Your project sponsor contacts you and asks you to provide an estimate on the total duration of a newly approved project. He wants the estimate to be available for a meeting with project stakeholders that has been scheduled for later in the afternoon. The most appropriate estimating technique to meet this need would be A. a bottom-up estimate B. a definitive estimate C. a PERT estimate D. an analogous estimate

6-14 Answer D. An analogous estimate, a top down estimating technique, can generally be developed quickly. It is not intended to become the final estimate. It range of reliability can be extreme. A bottom up estimate requires significant time to prepare. A PERT estimate, also known as a weighted average estimate is usually associated with specific project activities.

6-15 How does Free Float differ from Total Float? A. Total Float is the accumulated amount of Free Float. B. There is no real difference ─the two terms are functionally equivalent C. An activity's free float is calculated by subtracting its Total Float from the critical path's Total Float D. Free Float affects only the early start of any immediately following activities

6-15 Answer D: Free float is the amount of flexibility between the early finish of an activity and the early start of its immediate successor activities. Free float allows an activity to slip for a period of timebefore affecting its immediate successor.

6-18 You have been asked to develop a schematic display of the logical relationships of your project's activities. The result of your efforts is the: A. Project network diagram B. Resource breakdown structure C. WBS D. Schedule network template Create a network diagram using the following information: Activity Duration Dependencies A 2 - B 3 A C 1 A D 4 B,C E 1 D F 2 E G 3 E H 2 F,G

6-18 Answer A.A project network diagram is produced when the logical relationships of all project activities have been defined. The WBS and resource breakdown structure do not display logical relationships.

6-2 All of the following are inputs to the process "define activities" except: A. Scope baseline B. Organizational process assets C. Enterprise environmental factors D. Decomposition

6-2 Answer D. Decomposition is included in the tools and techniques of the define activities process.

6-3 The software cannot be tested until coding is completed. This is an example of: A. Discretionary dependency B. Soft logic C. Preferential logic D. Mandatory dependency

6-3 Answer D. Mandatory dependencies are also known as hard logic and are generally inherent in the nature of the work. Discretionary, soft logic, and preferential are generally associated with best practices.

6-4 You have been asked to reduce the schedule duration of a major project. Your team suggests overlapping several project activities to reduce the overall duration. This process is known as: A. Crashing B. Fast tracking C. Leveling D. Monte Carlo technique

6-4 Answer B. Crashing involves the use of overtime or additional resources. Leveling redistributes work and may result in an increase in project schedule. Monte Carlotechnique is generally associated with risk management and is used to determineprobable project outcomes or results.

6-5 A functional manager for the engineering team has provided you with thisinformation:A work package for the engineering activities will most likely require12 weeks to complete. Ifeverything goes well, it could take 8 weeks, but therehave been times when this work hastaken 24 weeks to complete. Based on this information, what is the expected duration of thework package? A. 13 B. 14 C. 12 D. 15

6-5 Answer A. Use the formula (optimistic + 4 times the most likely + pessimistic) divided by 6 {8 + 4(12) + 24} / 6 = 13.33

6-6 A work package is behind schedule. You decide to add more resources to theactivities and use some overtime to correct the schedule slippage. This is anexample of the techniqueknown as: A. Resource leveling B. Heuristics C. Crashing D. CPM

6-6 Answer C. Adding resources or using overtime may reduce the duration of an activity. Resource leveling is used when a resource has been over allocated. Heuristics is a term associated with generally accepted information or "common Knowledge." CPM refers to Critical Path Method.

6-7 The start of an activity must be delayed until 5 days after the finish of itspreceding activity. The correct term for this modification of the logicalrelationship is: A. Lead B. Lag C. Slack D. Float

6-7 Answer B. Lag introduces delay between predecessor and successor relationships and is usually associated with a physical requirement. Allowing concrete to cure is a common example of lag. Lead is used to accelerate a network path. Float and slack or measures of flexibility in a project schedule.

6-8 The most common type of relationship in the PDM is the: A. Start to Finish B. Finish to Finish C. Finish to Start D. Start to Start

6-8 Answer C. Refer to page 138 PMBOK Guide.

60. A bar chart shows the number and type of resources you need throughout your project is called a _______________. A. Organizational Chart B. Resource Schedule C. Resource Histogram D. Staffing Timetable

60. Answer: C The Resource Histogram is a bar chart that shows your staffing needs over time. If you need more testers in the end of the project than you do while you're building a product, for example, you can forecast how many you will need and what their skill level needs to be from the beginning. That way, you'll be sure that they're available when you need them.

61. You have identified an opportunity to potentially increase the project's value. Which of the following is an example of enhancing that opportunity? A. By forming a partnership with another company, the project's value will increase for both companies B. By taking additional actions, you increase the potential reward without reducing its probability C. By taking out insurance, you can reduce potential costs to the project D. By documenting the opportunity in the register, you can keep track of it and ensure it gets exploited

61. Answer: B There are four things you can do with any opportunity. You can exploit it by making sure you do everything you can to take advantage of it. You can share it by working with another company in a way that gives you a win-win situation. You can enhance it by figuring out a way to increase its value. Or, if there's no way to take advantage of it, you can just accept it and move on. In this case, taking additional actions that will increase the potential reward is enhancing the opportunity.

62. Which of the following best describes the Plan-Do-Check-Act cycle? A. Invented by Joseph Juran, it's a way of tracking how soon defects are found in your process. B. Also called the Deming Cycle, it's a method of making small changes and measuring the impact before you make wholesale changes to a process. C. Made popular by Phillip Crosby in the 1980s, it's a way of measuring your product versus its requirements D. It means that you plan your project, then do it, then test it, and then release it.

62. Answer: B The Plan-Do-Check-Act cycle is a way of making small improvements and testing their impact before you make a change to the process as a whole. It comes from W. Edwards Deming's work in process improvement.

63. You are developing the project charter for a new project. Which of the following is NOT part of the enterprise environmental factors? A. Lessons learned from previous projects B. Knowledge of which departments in your company typically work on projects C. The work authorization system D. Government and industry standards that affect your project

63. Answer: A Lessons learned are part of the organizational process assets, not enterprise environmental factors. Your company's enterprise environmental factors tell you about how your company typically does business - like how your company's departments are structured, and the regulatory and industry environment your company operates in. An important enterprise environmental factor that you'll run across when you're planning a project is the work authorization system. That's your company's system to determine who is supposed to be working on what, and when the work should get done.

65. Tom is the project manager on a construction project. Midway through his project, he realizes that there's a problem with the lumber they've been using in a few rooms and they're going to have to tear down some of the work they've done and rebuild. One of his team members suggests that the defect isn't bad enough to cause all of that re-work. Tom says that he's worked on a project that made this same mistake before and they ended up having to redo the work when inspectors looked at the house. He convinces the team member that it's probably better to fix it now than later. What kind of power is he using to make the decision? A. Legitimate B. Expert C. Referent D. Reward

65. Answer: B Tom is using expert power. Since he's been through this problem before, his team is more likely to accept his authority. Expert power is the best form of power to use when making project decisions. The team will respect decisions that are based on experience and expertise.

67. Your company's quality assurance department has performed a quality audit on your project. They have found that your team has implemented something inefficiently, and that could lead to defects. What's the NEXT thing that should happen on your project? A. You work with the quality department to implement a change to the way your team does their work B. You document recommended corrective actions and submit them to the change control board C. You add the results of the audit to the lessons learned D. You meet with the manager of the quality assurance department to figure out the root cause of the problem

67. Answer: B Quality Audits are when your company reviews your project to see if you are following its processes. The point is to figure out if there are ways to help you be more effective by finding the stuff you are doing on your project that is inefficient or that causes defects. When you find those problem areas, you recommend corrective actions to fix them.

68. A junior project manager at your company does not know how to perform earned value analysis. You spend a weekend with him to teach him how to do this. This is an example of: A. Contributing to the project management body of knowledge B. Fraternizing, and should be discouraged C. Unpaid overtime D. Giving access to proprietary information, and should be reported to PMI

68. Answer: A Any time you do coaching, mentoring, training or anything else to help others learn about project management, you're contributing to the project management body of knowledge.

7-10 According to the learning curve theory, when a large number of items areproduced repetitively: A. Productivity increases are uniform over time B. Productivity will increase, but at a diminishing rate C. Productivity is unchanged D. Productivity decreases due to boredom and apathy

7-10 Answer B. Learning curve data indicates that as work is repeated the time required to complete the work is reduced but the rate of improvement also decreases

7-11 Opportunity cost is associated with: A. Poor project selection B. Selecting one project and taking it through completion C. Careful and detailed estimating D. Definitive estimating

7-11 Answer A.Generally, opportunity cost is experienced when funding has been assigned to a specific project and a more desirable project opportunity develops. The greater opportunity is missed due to the commitment of capital resources to a previously selected project. The best alternative is not chosen.

7-12 You have allocated the project costs over the life cycle phases of the project. The main output of this process is a (an): A. Project schedule B. Cost control plan C. Time phased budget D. Estimate At Completion

7-12 Answer C. The allocation of the aggregated project cost across the project life cycle is referred to as the time phased budget. Refer to page 177 PMBOK Guide. Estimate at Completion is a forecast of the final project budget based on current performance. The cost control plan provides a method to manage cost changes and identify cost variances. The project schedule displays project activity duration over time and provides an estimate of the total duration of the project life cycle.

7-14 You are reviewing an Earned Value report and observe that the CPI is 1.2 and the SPI is 1.1. You will report to your sponsor that the project is: A. Right on plan according to schedule and budget baselines B. Ahead of schedule and over budget C. Ahead of schedule and under budget D. Not enough information to determine the project condition

7-14 Answer C. A CPI and SPI greater than 1 indicates that the project is performing very efficiently and is achieving results that are superior to the planned results. A CP and SPI that equal 1 indicates that the project is performing at planned levels.

7-15 Your Earned value analysis report is due. Your project information indicates the following: EV = 150,000, PV = 140,000, AC = 160,000. You will report to your project sponsor that the project is: A. The project is ahead of schedule and under budget B. The project is ahead of schedule and over budget C. The project is behind schedule and over budget D. The project is behind schedule and under budget

7-15 Answer B. Earned value greater than planned value indicates the project is ahead of schedule. Actual cost greater than Earned value indicates the project is over budget. Refer to page 182 PMBOK Guide

7-17 If the cumulative CPI falls below the baseline plan, all future work must be performed at: A. The TCPI to achieve the planned BAC B. Below the TCPI to achieve the planned BAC C. The planned CPI to achieve the planned BAC D. The planned ETC to achieve the planned BAC

7-17 Answer A. The TCPI is the level of performance that must be achieved if the CPI falls below 1 and the project BAC must be met. Refer to page 185 PMBOK Guide

7-2 Your project's earned value (EV) = 350, its actual cost (AC) = 400, and its plannedvalue (PV) = 325. What is the cost variance (CV)? A. + 350 B. - 75 C. + 400 D. -50

7-2 Answer D. Cost variance = EV - AC. 350 - 400 = -50

7-3 Measuring the square footage of a building and then multiplying that figure by a set cost factor for construction is an example of A. Analogous estimating B. Parametric estimating C. SWAG D. Bottom up estimating

7-3 Answer B. Parametric estimating uses statistical relationships such as cost, duration, and labor rates. Refer to page 172, PMBOK Guide.

7-4Your team is in the process of finalizing and producing the cost performance baseline for the project you are working on. Your team is involved in which of the following? A. Cost Estimating B. Determine budget C. Resource leveling D. Bottom up estimating

7-4 Answer B. The cost performance baseline is an output of the determine budget process. Refer to page 178 PMBOK Guide

7-5 You are managing a very complex project that will require a large number of human resources. You need information about the resources that are available from within your company's functional departments. The main source of this information is the: A. Company outsourcing policy B. The WBS C. Chart of accounts D. Resource pool description

7-5 Answer B. The resource pool provides information about the skills and availability of organizational human resources.

7-6 You are involved in the process of developing an assessment of the likelyquantitative amount of funding that will be required to provide the product of the project. You are involved in: A. Pricing B. Alternatives analysis C. Estimate costs D. Risk assessment

7-6 Answer C. Pricing is associated with business decisions about profit margins. Alternatives analysis refers to considering other options about how to develop and or produce the project's deliverables. Risk assessment is included in the process of estimating costs.

7-8 Your project actual cost has been reported at $200.000. This is equal to the Earned Value. The Budget at completion for your project is $400.000. It is assumed that all future work will be accomplished at the budgeted rate. The EAC (Estimate At Completion) is: A. $200,000 B. $600,000 C. $400,000 D. Cannot be determined with the information provided

7-8 Answer C.In this example the EAC = AC + BAC - EV EAC = 200,000 + 400,000 - 200,000 or 400,000

7-9 You are requested to predict as closely and as accurately as possible theestimated cost of the project. Which of the following techniques would you use? A. Bottom-up estimating B. Order of Magnitude C. parametric D. Analogous

7-9 Answer A. A bottom up estimate will produce a definitive estimate. Order of magnitude, parametric and analogous estimates are considered to be top down and have a wide range of probable outcomes.

7. When do you perform stakeholder analysis? A. When defining the project scope B. When developing the project charter C. When creating the project management plan D. When putting changes through change control

7. Answer: A Stakeholder Analysis is one of the tools and techniques of the Scope Definition process. And that shouldn't really be a surprise. After all, the goal of stakeholder analysis is to write down the needs of your stakeholders. And when is it most important to figure out what your stakeholders need? When you're defining the scope of the project work!

70. When you look at a control chart that measures defects in the product produced by your project, you find that seven values are showing up below the mean on the chart. What should you do? A. Look into the process that is being measured. There's probably a problem there. B. Ignore the anomaly. This is the rule of seven, so statistically the data doesn't matter. C. This means that the mean is too high. D. You should adjust your lower control limit - the values indicate a problem with where the limits have been set.

70. Answer: A Seven values on one side of the mean in a control chart indicate a problem with the process that is being measured.

72. You have just been authorized to manage a new project for your company. Which of the following BEST describes your first action? A. Create the work breakdown structure B. Develop the project management plan C. Develop the project charter D. Create the preliminary scope statement

72. Answer: D Take a look at the answers to this question. What do you see? A list of processes - "Create WBS", "Develop Project Management Plan", "Develop Project Charter" and "Develop Preliminary Scope Statement". So your job is to figure out which of these processes comes next. So what clues do you have to tell you where you are in the project lifecycle? Well, you've just been authorized to manage a new project. Since the project charter is what authorizes a project manager to work on a project, it means that the Develop Project Charter process has just been performed. So which process comes next? The first thing you do after the project charter is signed is perform the Develop Preliminary Scope Statement process.

73. You're the project manager on a software project that is planning out various approaches to technical work. There's a 20% chance that a component you are going to license will be difficult to integrate and cost $3000 in rework and delays. There's also a 40% chance that the component will save $10,000 in time and effort that would have been used to build the component from scratch. What's the EMV for these two possibilities? A. $13,000 B. $7,000 C. $3,400 D. - $600

73. Answer: C The expected monetary value (or EMV) of the problems integrating the component is the probability (20%) times the cost ($3,000), but don't forget that since it's a risk, that number should be negative. So its EMV is 20% x $3,000 = -$600. The savings from not having to build the component from scratch is an opportunity. It has an EMV of 40% x $10,000 = $4,000. Add them up and you get -$600 + $4,000 = $3,400.

74. You are managing a software engineering project, when two team members come to you with a conflict. The lead developer has identified an important project risk: you have a subcontractor that may not deliver on time. Another developer doesn't believe that the risk is likely to happen; however, you consult the lessons learned from previous projects and discover that subcontractors failed to deliver their work on two previous projects. You decide that the risk is too big; you terminate the contract with the subcontractor, and instead hire additional developers to build the component. Both team members agree that this has eliminated the risk. Which of the following BEST describes this scenario? A. Transferrence B. Mitigation C. Avoidance D. Acceptance

74. Answer: C The best thing that you can do with a risk is avoid it - if you can prevent it from happening, it definitely won't hurt your project. The easiest way to avoid a risk is to cut it out of your project entirely; in this case, getting rid of the subcontractor avoids the risk.

75. Which of the following BEST describes the contents of a WBS Dictionary entry? A. The definition of the work package including its net present value. B. Work Package ID and Name, Statement of Work, Required Resources, and Monte Carlo Analysis. C. Work Package ID and Name, Statement of Work, Risk Register, Earned Value Calculation, Scheduled Complete Date, and Cost D. Work package ID and Name, Statement of Work, Responsible Organization, Schedule Milestones, Quality Requirements, Code of Account Identifier, Required Resources, Cost Estimate.

75. Answer: D The WBS Dictionary always corresponds to an entry in the WBS by name and Work Package ID. So that's the easiest way to cross reference the two. The Statement of Work describes the work that will be done. The Responsible Organization is the team or department who will do it. Schedule Milestones are any set dates that will affect the work. The Quality Requirements describe how we will know if the work has been done properly. The Resource and Cost Estimates are just a list of how many people will be needed to do the work and how much it will cost. Answer A couldn't be right because net present value doesn't have anything to do with individual work packages. The other options mention Earned Value and Monte Carlo Analysis which have nothing to do with scope management as well.

76. Two of your project team members approach you with a conflict that they are having with each other over the technical approach to their work. One of the two people is very aggressive, and tries to get you to make a decision quickly. The other team member is quiet, and seems less willing to talk about the issue. The conflict is starting to cause delays, and you need to reach a decision quickly. What's the BEST approach to solving this conflict? A. Tell the team members that they need to work this out quickly, because otherwise the project could face delays. B. Since it's a technical problem, tell the team members that they should take it to the functional manager. C. Confront the issue, even though one team member is hesitant. D. Escalate the issue to your manager.

76. Answer: C The best way to resolve any problem is to confront the issue - because "confronting" means figuring out the source of the problem and then resolving the root cause of the conflict. Any time you have an opportunity to confront the problem, you should do it. Remember, one of the most important things that a project manager does is make sure that team conflicts get resolved. Sometimes questions are worded so that the word "confronting" sounds negative. Even when it is, it's still the best approach to resolving conflicts!

77. Tom is a project manager on an industrial design project. He is always watching when his team members come into the office, when they take their breaks and when they leave. He periodically walks around the office to be sure that everyone is doing work when they are at their desks and he insists that he make every project decision, even minor ones. What kind of manager is he? A. Theory X B. Theory Y C. Cost cutter D. Effective

77. Answer: A Tom is a Theory X manager. He believes that employees need to be watched all of the time and that all of his team members are selfish and unmotivated.

78. You are the project manager on a construction project. As you're planning out the work your team will do, you divide up all of the work into work packages and create a WBS that shows how they fit into categories. For each one of the work packages, you write down details such as initial estimates and information about what account it should be billed against. Where do you store all of that information? A. Scope Management Plan B. WBS C. WBS Dictionary D. Project Scope Statement

78. Answer: C The WBS Dictionary is the companion document to the WBS. It gives all the details that you know about each work package in the WBS including estimates and billing information.

8-1 A product that is produced at a high level of quality but does not include many of the features of similar products is referred to as a) Inaccurate b) Imprecise c) Low grade d) Non-conforming

8-1 Answer C. Products that are produced at an acceptable level of quality and meet the desired requirements of the customer but are limited in functionality and features are referred to as low grade. Refer to page 190 of the PMBOK Guide

8-11 You have contracted a team of experts to define the right mix of ingredients that will produce the desired product and ensure optimization of the process. Which of the following techniques will be used? a) Statistical sampling b) Brainstorming c) Nominal group technique d) Design of experiments

8-11 Answer D. Design of experiments (Taguchi) utilizes a process to determine the best mix of variables or ingredients to produce the desired result. Statistical sampling is performed after products have been produced. Brainstorming and Nominal Group technique are tools and techniques associated with defining requirements or identifying problems.

8-12 You have developed a graphical display of process results gathered over time and have used the information to determine that the process is not performing within expected parameters. You have identified several consecutive data points that are above the process average. This is an indication of ________ a) A trend b) A run c) A random cause d) An alpha risk

8-12 Answer: B - A run is a set of data points displayed above or below the process average on a control chart. Generally 7 consecutive points above of below the process average but with the upper or lower control limits indicates a run. A trend is a set of data points moving in a specific positive or negative direction. A random cause is considered normal and expected when analyzing processes and will result in some variation from the process average. An alpha risk is the associated with product sampling.

8-13 Inspections are utilized by the project manager to assess the quality of deliverables produced during the project life cycle. The costs incurred during the inspection process are associated with: a) Prevention costs b) Cost of non conformance c) Cost benefit analysis d) Appraisal costs

8-13 Answer - D Appraisal costs are associated with the cost of conformance and include inspections and reviews.

8-14 Monitoring specific project results to determine if they comply with relevant quality standards is: a) Quality control b) Quality assurance c) Quality planning d) Earned Value Management

8-14 Answer A - Quality control is utilized to monitor and record results during execution of quality activities. Refer to page 206 PMBOK Guide.

8-15 Fitness for use and the legal aspects of quality are key items emphasized by: a) Crosby b) Juran c) Kerzner d) Heerkens

8-15 Answer B - Joseph Juran emphasized continuous improvement, safety, and fitness for use. This means the product should perform as expected in terms of functionality and should be safe for use by the customer.

8-16 You have gathered information about product defects through analysis and have compiled a list of defects that having been repeating over a period of time. You notice that some of the defects are appearing more frequently than others. You want to address the defects that occur most often. Which tool would you select to display the frequency of defects? a) Pareto diagram b) Run chart c) Control chart d) Scatter diagram

8-16 Answer A - the Pareto diagram is used to display errors or problems in the order of frequency of occurrence. A Run chart is a type of control chart. Scatter diagrams are used to determine if a relationship between exits between different sets of data.

8-17 You have discovered a problem with one of the technical processes that is needed to perform some of the work of your project. You decide to utilize root cause analysis to determine the reason for the problem. Which of the following are you using? a) Perform Quality audit b) Inspection c) Process analysis d) Perform quality control

8-17 Answer D: Root cause analysis is a tool or technique within the process of Perform Quality Control. Perform Quality audit is associated with verifying compliance with organization policies and procedures. Process analysis is included within Perform Quality Control. Refer to page, 206 PMBOK Guide.

8-18 All of the following are tools and techniques in the perform quality control process except: a) Cause and effect diagram b) Histogram c) Change request d) Run chart

8-18 Answer C - A change request is an output of Perform Quality Control. Refer to page 206 PMBOK Guide

8-19 As the project manager for the Step-Fast Personal exercise product you contract a subject matter expert to determine if the project activities comply with organizational and project policies and procedures. The SME is specifically interested in identifying gaps and shortcomings in your processes. You have initiated which of the following? a) Quality plan review b) Develop quality control measurements c) Prevention process d) Quality audit

8-19 Answer D - A quality audit is a review to determine if project activities comply with organizational policies and procedures. Refer to page 204, PMBOK Guide.

8-20 Comparing actual or planned project practices to those of other projects to generate ideas for improvement is known as: a) Benchmarking b) Benefit/cost analysis c) Flowcharting d) Pareto diagram

8-20 Answer A - Benchmarking s used to compare planned project practices with established best practices to generate improvement ideas and as a basis for reviewing performance. Benefit / Cost analysis determines if a project is worth accepting and implementing. Flow charting displays a process. Pareto diagrams display problems or errors. Refer to page 197, PMBOK Guide

8-21 You are observing a control chart and notice that there are 8 consecutive datapoints above the center line or mean. This is an indication that: a) The process is in control b) The process requires more data points to analyze c) The process appears to be affected by other than random causes d) The mean should be adjusted

8-21 Answer: A run indicates that a specific condition or assignable cause resulted in the placement of the data points and should be investigated. Generally 7 consecutive points above or below the center line or process average indicates a run.

8-22 You are the project manager for the Delta Fast Time software project and the project has been initiated. Some of the initial work has been completed and you are requesting acceptance of this work by the client. Which of the following processes are you involved in? a) Quality assurance b) Scope verification c) Quality control d) Statistical sampling

8-22 Answer B - Scope verification is associated with acceptance of a project deliverable. Quality assurance is associated with the review of procedures and policies. Quality control is associated with the actions taken to address quality problems or performance issues. Statistical sampling is a tool or technique of Perform Quality Control.

8-3 To ensure that a product has been properly prepared for safe use, which of the following should be used by the inspector operating the product? a) Check list b) Quality control plan c) Cause and effect process d) WBS

8-3 Answer A. A Quality control plan should be utilized during development of the product. A cause and effect diagram is used to determine the root cause of a problem. The WBS is a key element of the planning process and assist in defining the work of the project. Checklists minimize the omission of important steps and operating errors.

8-4 Your team is analyzing defects and attempting to isolate the root cause of a problem. Two variables have been isolated through analysis of the data that is available. There is a concern that one of the two variables is compounding the problem by causing an effect on the other. Which of the following tools or techniques will assist in identifying the relationship between variables? a) Flow chart b) Pareto diagram c) Scatter diagram d) Run chart

8-4 Answer C. The scatter diagram is used to determine correlation between two sets of data. Refer to page 212 PMBOK Guide

8-5 You have been asked to define the quality standards for the project you are assigned to. You have defined the variables that will be measured and have identified the key attributes that are important to you and your stakeholders. Which of the following is not an example of an attribute? a) Yards b) Pounds c) Meters d) Distance

8-5 Answer D. Distance is not associated with a product. Attributes are those items associated with the actual physical product or deliverable

8-7 You are managing a project and have discovered during a walk through inspection that a large amount of scrap material has been generated by a team of newly hired workers. The scrap material is an example of a) Internal failure b) External failure c) Cost of conformance d) Appraisal costs

8-7 Answer A. Internal failure results in defects, repairs, scrap and rework. External failure is associated with quality issues experience by the customer. Cost of conformance refers to the cost incurred to ensure compliance. Appraisal costs are included in the cost of conformance.

8-8 You have been asked to identify the major reasons for the high percentage of product returns your company is experiencing. Which of the following tools will most effectively assist you in further identifying the reasons for the failures? a) Pareto chart b) Fishbone or Ishikawa diagram c) Scatter Diagram d) Attribute sampling

8-8 Answer B - The Fishbone diagram is also referred to as a root cause analysis tool. Pareto diagrams display the frequency of occurrence of identified problems. Scatter diagrams indicate a relationship between sets of data. Attribute sampling identifies deliverables that have failed to meet requirements.

80. You are using a Pareto chart to examine the defects that have been found during an inspection of your product. Which process are you performing? A. Perform Quality Assurance B. Perform Quality Planning C. Perform Quality Control D. Scope Verification

80. Answer: C Whenever you use any of the seven basic tools of quality to examine the results of an inspection of your product, you are performing Quality Control. If you were examining the process your company uses to build multiple projects, you would be performing Quality Assurance.

81. A project manager is faced with two team members who have conflicting opinions. One team member explains her side of the conflict. The other team member responds by saying, "I know you'll never really listen to my side, so let's just go with her opinion and get back to work." This is an example of: A. Withdrawal B. Compromise C. Smoothing D. Forcing

81. Answer: A Withdrawal happens when someone gives up and walks away from the problem, usually because they're frustrated or disgusted. If you see a team member doing this, it's a warning sign that something's wrong.

82. Complete the following sentence: "The later a defect is found, __________ ." A. the easier it is to find B. the more expensive it is to repair C. the less important it is to the product D. the faster it is to repair

82. Answer: B The reason we work to do quality planning up front is that it is most expensive to deal with problems if you find them late in the project. The best case is when you never inject the defects in the first place, then it doesn't cost anything to deal with them. Prevention is always better than inspection.

83. Your top team member has performed extremely well, and you want to reward her. She knows that you don't have enough money in the budget to give her a bonus, so she approaches you and requests an extra day off, even though she is out of vacation days. She asks if she can take one of her sick days, even though the company doesn't allow that. Which of the following is correct? A. You should give her the time off, because McLelland's Achievement Theory states that people need achievement, power, and affiliation to be motivated B. You should give her the time off, because Expectancy Theory says that you need to give people an expectation of a reward in order to motivate them C. You should give her the time off, because a Theory Y manager trusts the team D. You should not give her the time off

83. Answer: D You must always follow your company's policy - it's your ethical duty as a project manager. You should find some other way to reward her that is not against your company's rules.

84. Which of the following is NOT a tool or technique of Qualitative Risk Analysis? A. Risk urgency assessment B. Expected monetary value analysis C. Probability and impact matrix D. Risk categorization

84. Answer: B Qualitative Risk Analysis is all about figuring out prioritizing each risk, and figuring out its probability and impact. It's an important part of risk planning. But it's not about coming up with

87. You are managing a software engineering project, when two team members come to you with a conflict. The lead developer has identified an important project risk: you have a subcontractor that may not deliver on time. The team estimates that there is a 40% chance that the subcontractor will fail to deliver. If that happens, it will cost an additional $15,250 to pay your engineers to rewrite the work, and the delay will cost the company $20,000 in lost business. Another team member points out an opportunity to save money an another area to offset the risk: if an existing component can be adapted, it will save the project $4,500 in engineering costs. There is a 65% probability that the team can take advantage of that opportunity. What is the expected monetary value (EMV) of these two things? A. - $14,100 B. $6,100 C. - $11,175 D. $39, 750

87. Answer: C To calculate the expected monetary value (EMV) of a set of risks and opportunities, multiply each probability by its total cost and add them together. In this question, the cost of the risk is -$15,250 + -$20,000 = -$35,250, so its EMV is 40% x -$35,250 = -$14,100. The value of the opportunity is $4,500 and its probability is 65%, so its EMV is 65% x $4,500 = $2,925. So the total EMV for the two is -$14,100 + $2,925 = -$11,175.

89. During contract closure, a procurement audit includes all of the following EXCEPT: A. Reviewing the contract terms to ensure that they have all been met B. Identifying successes and failures that should be recognized C. Documenting lessons learned D. Using the payment system to process consideration as per the terms of the contract

89. Answer: D Once you've closed out a contract, it's important to conduct a procurement audit. This is where anything that went right or wrong. However, consideration - or payment - is not part of an audit (unless there was a problem processing or paying it).

9-1 A project manager has the least amount of authority in the_________ organizational structure: a. Matrix b. Strong Matrix c. Projectized d. Functional

9-1 Answer D - In the functional organizational structure, priorities are established by the functional manager. Projects are considered to be less important than functional work. Refer to page 28, PMBOK Guide.

9-10 The project manager is likely to be most successful in developing a strong and supportive high performing team in which structure? a. Projectized b. Strong matrix c. Balanced matrix d. Functional

9-10 Answer A - In the projectized structure the project manager has direct control of the project team and the team is dedicated to the project. The project manager has the ability to establish more effective and meaningful work relationships with the team members.

9-11 Collective bargaining agreements are an example of a (an) ____________ during organizational planning. a. Assumption b. Constraint c. Pre-determined project team selection d. Expected staff assignment

9-11 Answer B - Collective bargaining is associated with unions and generally there will be specific conditions and restricts that may constrain some actions or prevent the use of certain approaches or procedures.

9-12 You have decided that your best approach to keep your team working effectively is to monitor their performance very closely and to carefully analyze their work output. This style ofmanagement is referred to as: a. Theory Y b. Hygienic motivation c. Theory Z d. Theory X

9-12 Answer D - Theory X (Douglas McGregor) managers believe that people must be closely supervised in ensure that work is completed. Theory Y managers utilize a participative approach.Theory Z (Ouchi) refers to a concept that worker collectively support higher level organizational goals. Hygienic motivation is a fabricated term.

9-14 Referring to the Tuckman Model, the greatest level of conflict in the phases of team building is most likely to appear in the____________ phase. a. Forming b. Adjourning c. Mourning d. Storming

9-14 Answer D - Storming follows the Forming stage and generally includes a significant amount of conflict as team members discuss and identify areas or disagreement. Refer to page 233 PMBOK Guide

9-15 You are reviewing previous work experience, personal interests, and personal characteristics of a potentially available group of people and preparing to negotiate for the resources you need. You are engaged in the process of: a. Organizational Planning b. Acquire Project team c. Team development d. Pre-assignment

9-15 Answer B. Acquire Project Team is the process of determining resource requirements, determining availability of resources and acquiring resources through negotiation or appropriate organizational processes. Refer to page 225 PMBOK Guide

9-16 A project manager has the greatest amount of authority in the_________ organizational structure: a. Strong Matrix b. Projectized c. Functional d. Departmentalized

9-16 Answer B - In the projectized structure the project manager is provided with nearly full authority to manage the project and the project resources.

9-17 The project manager and a functional manager cannot reach agreement about the assignment of resources for a project. The functional manager insists that the resources are not available due to other priorities. In this case the conflict will require the assistance of the___________ to reach a solution. a. Customer b. Project Sponsor c. A new project manager d. Contractor

9-17 Answer B. Generally project conflicts should be resolved at the lowest levels or authority whenever possible. In some cases conflict requires the involvement of the project sponsor or executive especially when there is an impasse regarding resource assignments. Customer and contractors would not, in most cases become involved in internal resource management disputes.

9-18 The motivational theory in which high levels of trust, confidence, and commitment to workers leads to high levels of support of the organization's goals is referred to as: a. Theory X b. Theory Y c. Theory Z d. Hygiene Theory

9-18 Answer C - Theory Z, attributed to Ouchi, refers to a system where employees focus on the higher level goals of the organization and much less on individual needs. Theory X and Theory Y are managerial styles described by Douglas McGregor. Theory X managers do not trust their employees. Theory Y managers emphasize trust and participation.

9-20 You are attempting the influence a functional manager by using your associationwith a high level executive for leverage. You are using which form of power? a. Coercive. b. Referent. c. Formal. d. Penalty

9-20 Answer B - referent power has many meanings but it is generally referred to as power derived from a perceived connection with people of higher levels of authority. Coercive power is a form of penalty power. Formal power is associated with position of rank.

9-3 Project managers must develop skills to ensure that work is completed and deliverables are produced. This means developing an understanding of formal and informal structures of all organizations involved in the project. An understanding of power and politics is also required. Understanding all of these elements will assist in improving the project manager's: a. Formal reporting process b. Upward communication c. Influencing skills d. Writing style

9-3 Answer C - The understanding of power and politics enables the project manager to develop the appropriate approaches and techniques to gain trust and influence project stakeholders. Influencing skills will affect the formal reporting process, upward communication, and writing style.

9-4 It is generally believed that there is a difference between leading and managing. Which of the following is typically considered to be a responsibility associated with managing? a. Establishing direction b. Aligning people c. Motivating and inspiring d. Consistently producing key results expected by stakeholders

9-4 Answer D - Establishing direction, aligning people with organizational objectives, and motivating are generally associated with leadership. Producing results, planning, and delegating are generally associated with managing.

9-5 In the balanced matrix, the project manager generally shares authority with or has relatively the same authority as the: a. Sponsor b. Customer c. Functional manager d. Executive staff

9-5 Answer C - In a balanced matrix, the authority of the project manager and the authority of the functional manager are basically equal which may result in some conflict especially when resource assignments are being delegated. Refer to Page 28, PMBOK Guide

9-6 In a weak matrix the project manager's role is that of: a. An expeditor b. Decision maker c. Functional manager d. Subject matter expert

9-6 Answer A - In a weak matrix, the project manager is essentially dealing with a functional structure and does not have a significant level of authority. The project manager functions as an expeditor to solve issues and ensure that tasks are completed. The greater level of authority is associated with the functional managers.

9-7 You have just completed negotiations to acquire some additional resources for your project. During the negotiations there was considerable conflict about which resources would be provided by the functional group. A solution was reached in which you were able to obtain most of the resources you needed, but you had to agree to give up some of those resources at an earlier date than you had planned. This conflict was resolved using which type of conflict handling? a. Forcing b. Collaboration c. Compromise d. Smoothing

9-7 Answer C - Compromise. In this form of conflict management the parties involved agree to give up something to gain something. This is referred to as a win/lose and lose/win situation. Forcing involves authority and a one sided decision. Smoothing or accommodating refers to discussions that are focused only on what each side is in agreement with or in congruence. Collaboration results in a win/win situation for all parties.

9-8 You have just joined an informal group of people who meet to discuss new trends and issues in project management. The satisfaction that you gain from associating with that group is most closely aligned with: a. The first level of Maslow's hierarchy of needs b. The 5th level of Maslow's hierarchy of needs c. The 3rd level of Maslow's hierarchy of needs d. Herzberg's Hygiene Theory

9-8 Answer C - The third level of Maslow's Hierarchy of Needs is the need for social connections or belonging. Herzberg differentiated between factors that may cause dissatisfaction and conditions ir situations that would motivate people.

91. You're managing a construction project to install several hundred air conditioner panels in a new office building. Every floor has identical panels. The customer, a construction contracting company, has provided specifications for the installations. The team is using a process to install and verify each panel. As the team completes each panel, your team's quality control inspector measures it and adds a data point to a control chart. You examine the control chart and discover that the process is out of control. Which of the following BEST describes what you found on the control chart? A. At least two consecutive measurements are either above or below the mean but within the control limits B. At least one point is outside of the control limits C. At least seven measurements are within the control limits D. At least one point is above or below the mean

91. Answer: B A control chart is a really valuable tool for visualizing how a process is doing over time. By taking one measurement after another and plotting them on a line chart, you can get a lot of great information about the process. Every control chart has three important lines on it: the mean (or the average of all data points), an upper control limit and a lower control limit. Any time you find a data point that's either above the upper control limit or below the lower control limit, that tells you that your process is out of control. And that's a really useful thing to know! It tells you that you need to take a close look at the process and make some change to the way the team does their work.

93. A project manager is planning the staffing levels that will be needed through the course of her project. She figures out the number of people that will be needed in each role over time and displays that information in a chart as part of her staffing management plan. What is that chart called? A. Gantt chart B. RACI matrix C. Organization chart D. Resource histogram

93. Answer: D A Resource histogram is just a way to visualize the number of people in each role that you will need on your project as time goes on. Once you have figured out your schedule and the order of activities, you figure out how many people it's going to take to do the work and plot that out over time. Then you have a good idea of what the staffing needs of your project will be.

95. A notice sent to a sub-contractor about the contract is an example of which kind of communication? A. Informal Verbal B. Formal Written C. Formal Verbal D. Informal Written

95. Answer: B Anytime you have any communication having to do with the contract, it's always formal written communication.

96. You need to determine when to release resources from your project. Which part of the staffing management plan will be most useful for this? A. Resource histogram B. Safety procedures C. Recognition and rewards D. Training needs

96. Answer: A One of the most important elements of the staffing management plan is the timetable, which tells you who will work on what, and when they will be released from the project. One of the most common ways of showing the timetable is the resource histogram (or staffing histogram). That timetable will let you know exactly when you plan to release your project resources.

98. A company is about to begin work on a large construction project to build four new buildings for a bank that wants to open new branches. The sponsor is writing a project charter. She recalls that a previous project the company performed for another bank ran over budget because the team had underestimated the effort required to install the reinforced walls in the vault. The previous project manager had documented the details of the lessons learned from this project. Where should the sponsor look for these lessons learned? A. The project records management system B. The company's organizational process assets C. The project's work performance information D. The project's performance reports

98. Answer: B Lessons learned from past projects are always part of a company's organizational process assets, and are usually stored in a process asset library. The other three answers are important project tools, but they're not where you find lessons learned.

7-18 The average cost of a 6 year project is estimated to be $6 million per year andthe estimated total returns are expected to be $12 million. The ROI for this project is: A. 33% B. 0% C. 50% D. 25%

Answer A. ROI = Average returns / average cost x 100 The average return is 12 million / 6 or 2 million per year. 2million / 6 million = 33%

7-13 Earned value management is a tool and technique used in: A. Cost baseline development B. Controlling costs C. Parametric estimating D. Cost budgeting

7-13 Answer B. Earned value analysis provides a means to determine cost variance. Refer to page 181 PMBOK Guide

What is the process of communications management?

Communications Management Identify Stakeholders Plan Communications Distribute Information Report Performance Manage Stakeholder Expectations

Name communication types.

Communications Management Formal Informal Written Verbal

What information regarding stakeholders is documented in a stakeholder register?

Communications Management Name Contact information Requirements and expectations Impact and influence

What are key outputs of the Distribute Information process?

Communications Management Organizational process assets updates (This includes records of all the information communicated during this process)

What are key outputs of the Report Performance process?

Communications Management Performance reports Change requests

What does paralingual mean?

Communications Management Pitch and tone of voice

What are key outputs of the Identify Stakeholders process?

Communications Management Stakeholder register Stakeholder management strategy

What are key outputs of the Manage Stakeholder Expectations process?

Communications Management Updates to the project management plan and project documents Change requests Organizational process assets updates

Name communication blockers.

Communications management Noisy Distance Improper encoding Negative statements Hostility Language Culture

What should we do with stakeholders?

Communications management Identify all of them Determine all of their requirements Determine all of their expectations Communicate with them Manage their influence

What is the formula for communication channels?

Communications management N(N-1) / 2

Describe the rules for effective meetings.

Communications management Set a time limit Schedule in advance Create an agenda with team input Distribute agenda in advance Lead meeting with a set of rules See the Communications Chapter in PMP Exam Prep for more on this topic

What is the range for a definitive estimate?

Cost Management +/-10 % from actual

What is earned value measurement?

Cost Management A method of measuring project performance that looks at the value earned for work accomplished It can be used to predict future cost performance and project completion dates

What are the formulas for estimate at completion?

Cost Management AC + Bottom-up ETC = EAC BAC / CPI^c = EAC AC + (BAC - EV) = EAC AC + (BAC - EV) / (CPI^c X SPI^c) = EAC

86. Which of the following is NOT a tool in Risk Identification? A. Brainstorming B. Risk Urgency Assessment C. Delphi technique D. SWOT Analysis

86. Answer: B A Risk Urgency Assessment is a tool of Qualitative Analysis. Risk Identification is all about finding risks. Qualitative Analysis is about ranking them based on what your team thinks their impact and probability will be for your project. (Quantitative Analysis, on the other hand, is about getting the numbers to back up your opinions.)

What are the main approaches to cost or schedule estimating?

Cost Management Analogous estimating Bottom-up estimating Parametric estimating Three-point estimates One-time estimates

What is parametric estimating?

Cost Management Calculating estimates using historical information (e.g.- cost per line of code- hours per installation)

What does life cycle costing mean?

Cost Management Considering the future cost of operating and maintaining the project or deliverable over its life when planning and managing the project

What is bottom-up estimating?

Cost Management Creating estimates based on the details of the project (e.g.- from the bottom of the work breakdown structure)- which are then rolled up into project estimates

What is the formula for estimate to complete?

Cost Management EAC - AC = ETC

What is the formula for cost variance?

Cost Management EV - AC = CV

What is the formula for schedule variance?

Cost Management EV - PV = SV

What is the formula for cost performance index?

Cost Management EV / AC = CPI

What is the formula for schedule performance index?

Cost Management EV / PV = SPI

What is the process of cost management?

Cost Management Estimate Costs Determine Budget Control Costs

What is value analysis?

Cost Management Finding a less costly way of doing essentially the same work

Name inputs to the Estimate Costs process.

Cost Management Scope baseline Project schedule Human resource plan Enterprise environmental factors Organizational process assets Risk register

What is the difference between a cost budget and a cost baseline

Cost Management The cost budget adds management reserve to the cost baseline

In which process is the cost management plan created?

Cost Management The cost management plan is created in integration management as part of the Develop Project Management Plan process

What is analogous estimating?

Cost Management Top-down estimating that uses expert judgment and looks at the past to predict the future The last three projects cost $25-000- or took six months- and so should this one

What are key outputs of the Control Costs process?

Cost Management Work performance measurements Budget forecasts Change requests Updates to the project management plan and project documents

9-13 All of the following are tools and techniques for team development except: a. Reward and recognition b. Collocation c. Acquisition d. Training

9-13 Answer C - Acquisition is a tool or technique in the process Acquire project team

9-9 Aligning the various members of the project team to activities on the WBS and assigning ownership for the activities is accomplished by using: a. A resource pool description b. A responsibility assignment matrix c. A work package d. A cost account code

9-9 Answer B - The RAM or Responsibility Assignment matrix aligns WBS elements with Project Stakeholders and clearly indicates responsibility. Work pages are elements of the WBS. Cost accounts are associated with work packages. Resource pools describe resource skills and availability. Refer to page 221 PMBOK Guide

What is a key output of the Manage Project Team process?

Human Resource Management Change requests

What is the process of human resource management?

Human Resource Management Develop human Resource Plan Acquire Project Team Develop Project Team Manage Project Team

What is the key output of the Develop Human Resource Plan process?

Human Resource Management What is the key output of the Develop Human Resource Plan process?

What is an issue log?

Human Resource Management A record of project issues- persons responsible for resolving issues- issue status- and target resolution dates

What is the halo effect

Human Resource Management A tendency to rate team members high or low on all factors because of a high or low rating on a specific factor (e.g.- a team member will be a great project manager because she always completes her activities on time)

What is a team performance assessment?

Human Resource Management An assessment by the project manager of project team effectiveness

What is a project performance appraisal?

Human Resource Management An evaluation of individual team member effectiveness

Name conflict resolution techniques.

Human Resource Management Confronting (problem solving) Compromising Withdrawal (avoidance) Smoothing (accommodating) Collaborating Forcing

Define confronting (problem solving). Define compromising. Define collaborating.

Human Resource Management Confronting (problem solving): Solving the real problem (win-win) Compromising: Making all parties somewhat happy (lose-lose) Collaborating: Trying to incorporate multiple viewpoints to achieve consensus

What are some of the project manager's human resource responsibilities?

Human Resource Management Determine needed resources Negotiate for optimal available resources Create a team directory Create project-related job descriptions for team members Make sure roles and responsibilities are clear Ensure team members obtain needed training Create recognition and reward systems Create a human resource plan

Name some leadership and management styles a project manager may choose to use.

Human Resource Management Directing Facilitating Coaching Supporting Autocratic Consultative Consultative-Autocratic Consensus Delegating Bureaucratic Charismatic Democratic Laissez-faire Analytical Driver Influencing

Name different types of power.

Human Resource Management Formal Reward Penalty Expert Referent

What are the stages of team formation and development?

Human Resource Management Forming Storming Norming Performing Adjourning

What are some key activities involved in developing the project team?

Human Resource Management Hold team-building activities throughout the project Obtain and provide training where needed Establish ground rules Create and give recognition and rewards Place team members in the same location (co-location)

What is the key output of the Develop Human Resource Plan Process?

Human Resource Management Human resource plan

What did Herzberg's theory describe?

Human Resource Management Hygiene factors (e.g.- working conditions- salary- personal life- etc.) Motivating agents (e.g.- responsibility- self-actualization- professional growth- etc.)

Describe key responsibilities of the team on a project

Human Resource Management Identify requirements- constraints- and assumptions Create the work breakdown structure and help with project planning Estimate activities Participate in risk management Complete activities Comply with quality and communications plans Recommend changes to the project

What is Maslow's theory?

Human Resource Management Maslow's hierarchy of needs states that people are motivated according to the following hierarchy of needs: Self-actualization (highest motivation) Esteem Social Safety Physiological

Describe key responsibilities of functional managers on a project

Human Resource Management Participate in planning Approve the final project management plan Approve the final schedule Assist with problems related to team member performance Manage activities that happen within their functional area

What is McClelland's theory of needs?

Human Resource Management People are motivated by one of three needs: Need for achievement Need for affiliation Need for power

What are key outputs of the Acquire Project Team process?

Human Resource Management Project staff assignments Resource calendars Project management plan updates

What are key responsibilities of the sponsor on a project?

Human Resource Management Provide information rewarding the initial scope of the project Issue the charter Provide funding May dictate dates Approve the final project management plan Approve or reject changes or authorize a change control board Be involved in risk management

Name the most common sources of conflict on projects'

Human Resource Management Schedules Priorities Resources Technical opinions Administrative procedures Cost Personality (Least frequent source)

What is a key output of the Develop Project Team process?

Human Resource Management Team performance assessments (Think of this as evaluating team effectiveness)

What theories did McGregor describe?

Human Resource Management Theory X: Managers who accept this theory believe that people need to be constantly watched Theory Y: Managers who accept this theory believe that people want to achieve and con work without supervision

Describe key responsibilities of the stakeholders on a project

Human Resource Management They may help: Identify requirements and constraints Plan the project Approve changes Perform the risk management process

Describe the roles and responsibilities of people involved in a project.

Human Resource Management This topic cannot be summarized here- but it is critical to understand who does what See the roles and responsibilities section in the Human Resource Management chapters of the PMP Exam Prep and CAPM Exam prep books for more on this topic

What are some key activities involved in managing a project team?

Human Resource Management Use negotiation and leadership skills Observe what is happening Use an issue log Keep in touch Complete project performance appraisals Actively look for and help resolve conflicts that the team cannot resolve on their own

What are the key elements of a human resource plan?

Human Resource Management When and how human resource requirements will be met Roles and responsibilities Project organization charts Staffing management plan: Staff acquisition plan Resource calendars Staff release plan Staff training needs Recognition and rewards Compliance Safety

Define withdrawal (avoidance). Define smoothing (accommodating). Define forcing.

Human Resource Management Withdrawal (avoidance): Postponing a project decision or avoiding addressing the problem Smoothing (accommodating): Emphasizing agreement rather than differences of opinion Forcing: Pushing one viewpoint at the expense of another

What is a change control board? Who may be on it?

Integration Management A group of people that approves or rejects changes May include: Project manager Customer Experts Sponsor Others For the exam- assume that all projects have change control boards

What is the definition of a portfolio?

Integration Management A group of programs and individual projects to achieve a specific strategic business goal.

What is a configuration management plan?

Integration Management A plan to make sure everyone knows what version of the scope- schedule- and other components of the project management plan are the latest versions It defines how you will manage changes to the deliverables and the resulting documentation

What is a change management plan?

Integration Management A system of formal procedures- set up in advance- defining how project deliverables and documentation are controlled- changed- and approved

What are enterprise environmental factors? When are they used?

Integration Management Company culture and existing systems the project will have to deal with or can make use of They are used throughout the project management process

What are sunk costs?

Integration Management Expended costs

What are key outputs of the Close Project or Phase process?

Integration Management Final product Formal acceptance Organizational process assets updates

What occurs during the initiating process group?

Integration Management Formal authorization of a project or phase Project manger is provided with information necessary to begin the project

What are change requests? When are they approved?

Integration Management Formal requests to change parts of the project after the project management plan is approved They are approved in the Perform integrated Change Control process

What are three primary forms of organization?

Integration Management Functionally Projectized Matrix

What occurs during the planning process group?

Integration Management It is determined: Whether the project objectives- as stated in the project charter- can be achieved How the project will be accomplished

Which process group must be completed in a certain order?

Integration Management Planning is the only process group with a set order

What are the two types of depreciation?

Integration Management Straight Line Depreciation: Depreciate the same amount each time period Accelerated Depreciation: Depreciate an amount greater than straight line each time period.

What is a functional organization?

Integration Management The company is grouped by areas of specialization (e.g.- accounting- marketing)

What is a projectized organization?

Integration Management The company is grouped by project The team has no department to go to at the project end The project manager has total control of the resources

What is a product life cycle?

Integration Management The cycle of a product's life from conception to withdrawal.

What is a project management information system?

Integration Management The manual and automated system to submit and track changes and monitor and control project activities

Define the law of diminishing returns.

Integration Management The more you put into the effort- the less you get out of it

Define payback period

Integration Management The number of time periods to recover the investment The lower the number the better

What is the Develop Project Management Plan process?

Integration Management The process of creating a project management plan that is bought into- approved- realistic- and formal Output: The project management plan

What is a business case?

Integration Management The project purpose and justification Explains how the project supports the organization's strategic goals

Define internal rate of return.

Integration Management The rate an investment in the project will return The higher the number the better The rate at which a project's inflows and outflows are equal.

Define net present value.

Integration Management The value in today's dollars of some future costs and expenses For cost- the lower the number the better For revenue- the higher the number the better

Define present value.

Integration Management The value today of future cash flows

What does input mean?

Integration Management What do I need before I can_.

What are lessons learned? What do we do with them?

Integration Management What went right- what went wrong- and what could be done differently Used in planning a project Generated by the project to be used by other projects in the future

What does output mean?

Integration Management What will I have when I am done with_.

What is the project life cycle?

Integration Management What you need to do to COMPLETE the work It varies by industry and type of project

What is the project management process?

Integration Management What you need to do to MANAGE the work Initiating Planning Executing Monitoring and controlling Closing

What occurs during the executing process group?

Integration Management Work defined in the project management plan is completed to meet project objectives

What are the categories of project selection methods?

Integration Management benefit measurement (comparative) Constrained optimization (mathematical)

What is the formula for variance at completion?

Cost Management BAC - EAC = VAC

What occurs during the monitoring and controlling process group?

Integration Management Project performance is measured to the project management plan. Variances are determined and addressed

What is historical information?

Integration Management Records of past projects- including lessons learned- used to plan and manage future projects Records of the current project that will become part of organizational process assets

What is the difference between a population and a sample?

Quality Management Population: The total number of individual members- items- or elements comprising a uniquely defined group (e.g.- women) Sample: A subset of population members (e.g.- women randomly chosen to represent the population)

What are some of the tools and techniques used in the perform Quality Assurance process?

Quality Management Process analysis Quality audits Plan Quality and Perform Quality Control tools and techniques

What are the methods to compress a schedule?

Time Management Crashing Fast tracking

What is the process of time management?

Time Management Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Durations Develop Schedule Control Schedule

What are external dependencies?

Time Management Dependencies based on the needs of a party OUTSIDE the project

What is the definition of total quality management

or TQM? , Quality Management A comprehensive management philosophy that encourages finding ways to continuously improve the quality of business practices- products- or services

10-1 The sender-receiver model is designed to assist project managers and team members improve their communications skills by emphasizing a) The need for the project manager to engage in downward communication b) The importance of horizontal communications during project execution c) Potential communications barriers and the importance of feedback loops d) The need to communicate information verbally

10-1 Answer C - The communications model emphasizes awareness about developing the appropriate message to be delivered, the potentials barriers that may be encountered and the importance of a feedback loop to improve delivery and understanding of a message.

10-11 Your project currently has ten people assigned to the project team including yourself. At the end of the month you will be adding three additional team members to your project. What is the change in the number of communications channels after you add the new team members? a) 13 b) 45 c) 33 d) 78

10-11 Answer C - Use the formula: # of Channels = {N( N-1}) / 2 10(10-1)/ 2 = 45 13(13-1)/ 2 = 78 78 -45 = 33 (Note, in similar questions you may have to consider that the project manager is not included in the actual count of team members and may have to be added to the count to determine the number of channels. Example if you have a team of 10, the project manager would be added making the count 11 for calculating the number of channels.

10-12 Your team currently includes 9 members. You increase the team size to 12. The number of communications channels within the total project team has increased by: a) 10 b) 30 c) 33 d) 54

10-12 Answer C - # Channels = N(N-1) / 2 . In this situation you must include the project manager in the calculations. 9 + project manager = 10 and 12 + project manager = 13. Answer is the difference between 45 and 78 = 33.

10-13 In the communications model the sender transmits information to the receiver. Communication is most effective between sender and receiver when the _________ between the sender and receiver overlaps. a) Area of responsibility b) Personality screen c) Region of experience d) Perception screen

10-13 Answer C - Areas of common interest and experience will contribute to the effectiveness of the communications process. Areas of responsibility or function may create communications barriers. Personality and perception screens may distort the message.

10-14 Project information has been distributed according to the communications plan. Some project deliverables have been changed. Those changes were made according to the change control plan. One stakeholder expressed surprise to the project manager upon being informed of a previously published change to a project deliverable. All other stakeholders received notification of the change.What should the project manager do? a) Inform the stakeholder of the date when the change was approved b) Review the communications plan with the stakeholder and explain his responsibility c) Review the communications plan and make revisions, if necessary d) Address the situation in the next steering committee meeting so others do not miss published changes

10-14 Answer C - In this case the communications plan and the communications requirements analysis may not have included all Key stakeholders. Informing the stakeholder of the date of the change does not resolve the situation and it may occur again. The existing communications plan may not be complete and explaining stakeholder responsibility without ensuring the process has been agreed upon could result in conflict. Addressing a communications issue during steering committee meeting may assist will not resolve a problem until the communications plan is reviewed and updated as needed.

10-16 During stakeholder analysis the project manager and team may use many different models to classify stakeholders. The model that helps to analyze a stakeholder's ability to impose his or her will or power and influence the need for immediate attention from the project team along with the legitimacy of the stakeholder's involvement is the: A. Power / interest grid B. RAM C. Salience model D. Stakeholder register

10-16 Answer C - The salience model addresses stakeholder power, influence, need for information and legitimate involvement I a project. The Power and interest grid assists in determining the level of influence and interest a stakeholder may have on the planning and outcome of the project. The RAM, Responsibility Assignment Matrix, connects project stakeholders with WBS components. The stakeholder register is an output of stakeholder analysis. Refer to page 249, PMBOK Guide

10-17 You are planning to distribute a significant amount of information about your project to a large audience. You decide to post the information on an internal knowledge sharing tool for access at the convenience of the stakeholder. The communication method you are using is: A. Interactive communication B. Push communication C. Pull communications D. Expert judgment

10-17 Answer C - Pull communications utilizes websites, knowledge repositories and other types of accessible data bases. Refer to page 256, PMBOK Guide. Expert judgment generally refers to the input from subject matter experts and functional managers and is not specific to communications management.

10-18 Which of the following is most tightly linked to the Plan Communications process? A. Project Performance Reports B. Reporting systems C. Interpersonal skills D. Enterprise environmental factors

10-18 Answer D - Enterprise environmental factors are a key input to the plan communications process. Refer to page 252, PMBOK Guide. Reporting systems is a tool or technique within the Report Performance process. Interpersonal skills are associated with the Manage Stakeholder Expectations process. Project performance reports are an output of the Report Performance Process.

10-2 You have been asked to provide information about your project's current performance in terms of the relationships between scope, schedule and budget. The most appropriate type of report that will accomplish this is: a) Progress report b) Earned Value analysis report c) Jeopardy report d) Status report

10-2 Answer B- Earned value management provides an integrated view of project performance and compares work performed with work planned to be performed and the planned cost of work with the actual cost of work. Progress reports provide information about what has been accomplished to date, a jeopardy report provides information about problem issues and problems, and a status report provides information about work that is currently being performed.

10-3 As a project manager you must identify the information needs of the stakeholders involved in the project. These needs are identified in which of the following processes? a) Stakeholder management strategy b) Trend analysis c) Value analysis d) Communications requirements analysis

10-3 Answer D - Stakeholder communications requirements are determined during communications requirements analysis. The intention is to identify information that is most valuable to the stakeholder. Stakeholder management strategy is an output to the identify stakeholder process. Value analysis is associated with product analysis. Refer to page 253 PMBOK Guide

10-5 Project resources should be expended only on communicating information that: a) Contributes to the success of the project or where a lack of communication can lead to failure. b) Originates from the sponsor or the project management office c) Has been generated internally by the organization's executive team d) Is developed by the project team

10-5 Answer A - Communications requirements analysis determines the information needs of the stakeholders and identifies information that is most critical to success or failure. Refer to page 253, PMBOK Guide

10-6 Of the following items which one is the most significant factor in the determination of the method that may be used to transfer information among project stakeholders? a) Stakeholder identification b) The communications plan c) The immediacy or urgency of the need for information d) The organization chart

10-6 Answer C - Stakeholder identification will provide a list of stakeholder affected by the project, the communications plan provides guidelines for managing project related information. The organization chart assists in identifying stakeholders. The urgency associated with information will be an important factor in deciding how information is communicated. Examples - meetings, conversations, written documents, use of technology such as email. Refer to page 245, PMBOK Guide

10-7 The collecting, storing, analysis and distribution of project information is accomplished most effectively by using: a) A Project Management Information System b) The communications management plan c) The scope statement d) The project change control process

10-7 Answer A - The PMIS is a collection of systems that provide the opportunity to gather, store, and disseminate information. Refer to page 260, PMBOK Guide. The communications management plan is a guide for managing project information. The scope statement describes the project in detail. The change control process is a subsidiary of the project management plan.

10-8 During project implementation, the project manager is required to submit several reports that will communicate information about the project. Describing the project conditions at the present moment in relationship to schedule and other metrics is found in the: a) Status report b) Progress report c) Project Forecast d) Quality report

10-8 Answer A - The project status report is included in Report Performance outputs. Status reports address the current condition of a project including risks, and issues. Progress reports refer to work that has been completed during a reporting period. Forecasts refer to future scheduled work.

10-9 A commonly used method for determining the performance of a project at a specific point in time by comparing planned results with actual results and then reporting the project performance as it relates to an integrated view of scope, time, and cost is: a) Trend analysis b) Variance analysis c) Earned value analysis d) Project presentations and review

10-9 Answer C - Earned value analysis is used to develop an integrated view of project status at the date of measurement. Trend analysis and variance analysis are included in earned value analysis. Variance analysis may include only a comparison of actual performance with one specific baseline. Presentations may be used to deliver information obtained during earned value analysis.

107. A team member is showing up late to work and leaving early, and it is affecting the project. The project manager decides that the team member must be reprimanded. Which of the following is the BEST way to handle this situation? A. In a one-on-one meeting with the team member B. At the next team meeting C. In a private meeting with the team member and his functional manager D. Over e-mail

107. Answer: A Punishment power is exactly what it sounds like - you correct a team member for poor behavior. Always remember to do this one-on-one, in person, and in private! Punishing someone in front of peers or superiors is extremely embarrassing, and will be really counterproductive.

11-11 The two dimensions of risk used to determine expected value are: A. Consequence and contingencies B. Probability and assumptions analysis C. Probability and consequence D. Probability and data precision

11-11 Answer C - Risk ratings are determined by the product of probability and Impact ( or consequence) when using qualitative analysis and to determine expected monetary value when utilizing a decision tree (quantitative analysis. Refer to pages 291 and 299, PMBOK Guide

11-12 Your team is using a model that translates the uncertainties specified at a detailed level into their potential impact on project objectives at the level of the whole project. The technique being used is: A. Modeling and Simulation B. Data precision analysis C. Decision tree analysis D. Quantitative trends

11-12 Answer A - The use of modeling and simulations such as Monte Carlo Simulation generate information through iterations. Project information at the activity level is chosen at random during the process and produces data that illustrates the likelihood of achieving specific cost or schedule targets. Refer to page 299, PMBOK Guide

11-13 You believe that your project's product design effort would be a major challenge to the team's abilities and you do not have the tools or material to manage it effectively so you decide to seek a supplier who specializes in the specific technical area. You sign a fixed-price contract to execute this piece of the project work. This is an example of: A. Risk avoidance B. Risk transfer C. Risk mitigation D. Risk acceptance

11-13 Answer B --Transferring risk does not eliminate the risk. It shifts the risk to a more qualified entity or to a third party. Liability for the risk is accepted by the entity or third party at an agreed upon cost. Risk avoidance refers to risks that should be eliminated by changing strategy. Mitigation is associated with reduction of probability and or impact. Acceptance indicates that the risk is well with the capabilities of the project team or key stakeholders.

11-14 Your team has utilized all of the appropriate tools and techniques for responding to identified project risks and has discovered that some risks have been reduced in impact but remain a potential threat. These risks require further monitoring and are referred to as: A. Secondary risks B. Primary risks C. Cumulative risks D. Residual risks

11-14 Answer D - Residual risks are included in the outputs of the Plan Risk Responses process and are expected to remain as threats. Their probability and impact have been reduced through mitigation. Primary risks are included in the initial risk identification process are generally most obvious. Secondary risks are those risks that result from the decisions about how to manage primary risks. Cumulative risk is a combination or collective expected value of the effect of multiple risks.

11-16 Your project has encountered an unexpected problem. One of the components you were expecting to receive has not been ordered. This may mean youwill not be able to perform a proper product demonstration. There is not enough time to send an expedited order because thedemonstartion is scheduled to take place in three days. You assemble your team to determine if there may be to temporarily modify the product modified to function without the missing component. Your team will be involved in which of the following? A. Developing a mitigation sytrategy B. Developing a risk transference plan C. Identifying a workaround D. Designing a prototype

11-16 Answer C - A Work around is a temporary response to an uplanned event. Work arounds allow for work to continue while a permanent solution is developed. Mitigation generally refers to the redcution of the probability the occurance and an event. Risk transfer shifts teh risk to another organization.

11-17 Project risk is typically characterized by what three elements: A. Severity of impact, duration of impact and cost of impact B. Identification, type of risk category and probability of impact C. Risk event, risk probability and the amount at stake D. Occurrence, frequency and cost

11-17 Answer C - A risk event is the actual occurrence of the risk. Example - equipment failure. Risk probability is the likelihood that a risk event may occur. Amount at stake refers to the impact or consequence of the risk and is usually described in terms of the effect on cost or schedule.

11-18 Purchasing insurance is considered an example of risk: A. Mitigation. B. Transfer. C. Acceptance. D. Avoidance.

11-18 Answer B - transfer generally involves the shifting of a risk from one party to another. It does not illuminate or reduce the risk. Insurance is a common form of transfer of risk. Refer to page 303, PMBOK Guide

11-19 You are the project manager assigned to a very critical project. This requires you to ensure that project risk must be handled intentionally and methodically. You have assembled the project team, identified 32 potential project risks, determined what would trigger the risks, rated and ranked each risk using a risk rating matrix. You have also reviewed and verified all documented assumptions from the project team, and have verified the sources of data used in the process of identifying and rating the risks. You are continuing to move through the risk management process.What have you forgotten to do? A. Conduct a simulation B. Determine which risks are transferable C. Perform an evaluation of the overall riskiness of the project D. Involve other stakeholders

11-19 Answer D - The risk management process requires input from all key stakeholders including the project team. Use of a stakeholder register assists in the proper identification of stakeholders and in obtaining their input. Refer to page 284, PMBOK Guide

11-2 Outputs from Monitor and Control Risks include all of the following except: A. Requested changes B. Risk Register updates C. Risk Audits D. Project plan updates

11-2 Answer C - Risk audits are considered to be a tool or technique in the Monitor and Control Risk process. Refer to page 274, PMBOK Guide, Risk Management Overview.

11-20 A project manager is faced with a product design risk issue. It has been determined that the materials used to house a critical component of the product are subject to significant corrosion as a result of exposure to the typical work environment. The project team has decided to modify the design using veryexpensive corrosion-resistant materials in this component, which will basically eliminate the risk. The technique used by the team is: A. Risk avoidance B. Risk acceptance C. Risk transference D. Risk deflection

11-20 Answer A - Risk avoidance is a technique that is used to change the plan to eliminate a risk or threat entirely. Risks can be avoided through effective and thorough requirements management and communication or the use of subject matter experts.

11-21 During the analysis of possible decisions regarding the direction a project team should select during project analysis it has been determined by subject matter experts that in one branch of a decision tree there is a 40% percent chance of making $100.000 and a 60% chance of losing $150,000. What is the expected monetary value of this part of the analysis? A. $50,000 B. -$50,000 C. $90,000 D. -$90,000

11-21 Answer B - .60 x 150,000 + .40 x 100,000 = -50,000 .60 x -150,000 = - 90,000 .40 100,000 = 40,000 -90,000 + 40,0000 = -50,0000 Using the decision tree, the expected value of a branch is determined by multiplying the anticipated outcome of each component of the branch by the probability of achieving the result. The results of these calculations are then added together to determine the expected monetary value of the branch. Note: the sum of the probabilties of each outcome in the chance nodes of a decison tree will equal 100%. Refer to page 299, PMBOK guide for details about decision tree characteristics.

11-22 Using the following information and a normal distribution curve, what is the probability that the project will be completed in 64 days? Optimistic time is 48 days. Pessimistic time is 72 days. Most likely time is 60 days A. 16% B. 84% C. 50% D. 100%

11-22 Answer B - to Determine the probability of completing in 64 days, the following steps are required: Determine the weighted average using the formula {Optimistic + 4(Most Likely) + Pessimistic} / 6. Determine the standard deviation using the formula (Pessimistic - Optimisitc) / 6. In the normal distribtuon curve there is a 68% probability that the outcome will be within 1 standard deviation from the mean. There is a 95% probability that the result will fall within 2 standard deviations from the mean and a 99.73% probability that the result will fall within 3 standard deviations from the mean. If the mean is at the 50% point and there is a 68% probablity of the result falling within plus or minue one standard deviation of the mean the probabilty of 1 standard deviation is divided by 2. The result is 34. Adding 34 to 50% = 84%. Subtracting 34 from 50% = 16%. The Standard deviation in this example is 4. The mean is 60. 60 + 4 = 64 or one standard deviation from the mean. 50% + 34 = 84%.

11-3 You are managing a project and have a major decision to make about a change in the plan. You decide to contact several subject matter experts to obtain their opinions before making a decision. Each expert is unaware of the participation by any of the other experts you have contacted. The process being used is: A. Nominal group technique B. Delphi technique C. Brainstorming D. SWOT analysis

11-3 Answer B - The Delphi technique utilizes input from subject matter experts who remain anonymous to other experts involved in specific research or problem resolution. Refer to page 286 PMBOK guide and to page 108.

11-4 You have just completed an analysis of project risks and have prioritized them using a probability and impact matrix. The approach you used to prioritize the risks is: A. Qualitative analysis B. Quantitative analysis C. Sensitivity analysis D. Earned value analysis

11-4 Answer A - Qualitative risk analysis utilizes the experience of subject matter experts, functional managers, best practices, and previous project records. It is a rapid and low cost approach to risk analysis. The Probability / Impact matrix used the knowledge and familiarity of the project team and subject matter experts to determine likelihood and impact of a project risk event. Refer to page 289, PMBOK Guide

11-5 Defining _____________ will provide a structure for systematically identifying risks to a consistent level of detail during the project planning process. The areas defined in this process should reflect common sources of risk for the industry or application area. A. Assumptions B. Constraints C. The product description D. Risk categories

11-5 Answer D - Assumptions are information items that should be verified. They are not generally considered to be based on factual data. Constraints are limitations that should be considered when developing project plans. The product description provides details about the complexity of the product to be delivered. Risk categories assist is detailed risk identification and may be utilized with a Risk Breakdown Structure (RBS) refer to page 280, PMBOK Guide

11-6 All of the following are tools and techniques for risk identification except: A. Monte Carlo simulation B. Interviewing C. SWOT analysis D. Delphi technique

11-6 Answer A - Monte Carlo simulation is associated with Quantitative Risk Analysis and uses iterative simulations to determine project outcomes. Refer to page 299 , PMBOK Guide

11-7 You notice that some of your project team members are not attending your meetings and that there has been an increase in requests for transfer from your project. These are examples of: A. Risk events B. Risk triggers C. Primary risks D. Residual risks

11-7 Answer B - A Risk trigger is referred to as a symptom of an impending risk event and signals the project manager to take action before the event occurs. Risk events are actual occurrences of an identified risk event. Primary and secondary risks are risk events identified by the project team or key stakeholders.

11-8 The Ishikawa or fishbone diagram is used to display: A. System flows B. Predecessors and successor tasks C. Cause and effects D. Casual influences and relationships between activities

11-8 Answer C - The cause and effect diagram is also known as a fishbone or Ishikawa diagram (after its developer Kaoru Ishikawa).Refer to page 287 and 208, PMBOK Guide. System flows are associated with flow charts. Network diagrams display predecessor and successor relationships.

110. Alberto is the project manager of a software implementation project. His company has made an organization-wide decision to move to a new accounting and human resources software package. He has read that some projects to implement the same package have resulted in the loss of personnel data when they tried to import it into the new system. He backs up the data so that it could be restored in the event of such a problem but also buys insurance to cover the cost of keying in the data manually if the implementation doesn't work. Which response strategies are Alberto using? A. Mitigating and Accepting B. Mitigating and Avoiding C. Mitigating and Transferring D. Mitigating and Sharing

110. Answer: C The Project Manager is mitigating the risk by backing up the data so that it doesn't get lost. He is transferring it to the insurance company by insuring the company for the cost of re-keying the information.

112. You are conducting a status meeting and monitoring your risk register when you discover a risk that remains even after you implement all of your response strategies. What kind of risk is this and what should you do about it? A. It's a secondary risk. You don't need to worry about it. B. It's a residual risk. You need to plan a response strategy for it. C. It's a residual risk. You don't need to plan a response strategy for it because you've already implemented all of the risk responses you can plan for. D. It's a contingency reserve. You should only use it if the first risk occurs.

112. Answer: C Residual risks are risks that remain even after you have planned for and implemented all of your risk response strategies. They don't need any further analysis because you have already planned the most complete response strategy you know in dealing with the risk that came before them.

12-10 As the project manager for a new project you have been given the responsibility to provide all potential contractors with the information they need to determine if they would like to continue with the contracting process. To accomplish this you may want to schedule a: A. Project stakeholder meeting B. A bidder's conference C. A make or buy analysis conference D. A project kickoff meeting

12-10 Answer B - the Bidder's conference provides an opportunity for the buyer to provide all potential sellers with information to allow them to determine if they should continue with the proposal process.

12-11 All of the following are examples of procurement documents except: A. Request for Information B. Request for Proposal C. Project Scope Statement D. Request for Quote

12-11 Answer C - The project scope statement is generally developed after the Statement of work and Contract has been reviewed and approved.

12-12 A cost reimbursable contract introduces greater risk to the: A. Buyer B. Seller C. Project team D. Functional managers

12-12 Answer A - In a cost reimbursable contract the buyer generally has not finalized requirements. The risk of great cost is placed with the buyer.

12-13 The seller is protected from liabilities and penalties when a project is impacted by a natural disaster through the: A. Liquidated damages clause B. Penalty clause C. Force Majeure clause D. Statement of work

12-13 Answer C - The Force Majeure clause is intended to protect the seller from any liabilities resulting in natural disasters, Example of a force majeure clause in a contract: "No Party shall be liable for any failure to perform its obligations where such failure is as a result of Acts of Nature (including fire, flood, earthquake, storm, hurricane or other natural disaster). Penalty clauses and Liquidated damages are associated with a failure to meet a contractual obligation.

12-14 The terms , contractual conditions, roles and responsibilities defined by two or more parties who enter into a partnership or joint venture are known as: A. Statements of work B. Acceptance criteria C. Considerations D. Teaming agreements

12-14 Answer D - Teaming agreements are legal, contractual agreements that form partnerships or joint ventures. Considerations are generally something of value. Acceptance criteria generally refers specific functions and conditions that must be achieved before approval and payment is secured. Refer to page 319, PMBOK Guide

12-15 The legal contractual relationship that exists between a buyer and a seller after the contract is signed is known as: A. Privity B. Obligation C. Bilateral agreement D. Legally bonded relationship

12-15 Answer A - Privity of contract is a relationship that exists only between the parties to the contract, most commonly a contract that provides goods or services (a contract of sale). A bilateral agreement is a binding contract between the two parties that have agreed to mutually acceptable terms.

12-16 The risk associated with design specifications are the responsibility of the: A. Buyer B. Seller C. Project manager D. Project sponsor

12-16 Answer A - Design specifications are generally provided by the buyer and risks associated with design are the responsibility of the buyer. Function specifications and performance specifications are the responsibility of the seller.

12-17 A cost-plus-incentive-fee (CPIF) contract has an estimated cost of $150,000 with a predetermined fee of $15,000 and a share ratio of 80/20. The actual cost of the project is $130,000. What is the total fee that will be awarded to the seller? A. $31,000 B. $19,000 C. $15,000 D. None of the above

12-17 Answer B: Target cost = 150,000 Actual cost = 130,000 Savings = 20,000 Share to the seller 20% of 20,000 = 4000 15,000 + 4000 = 19,000 Total project cost for the buyer = 130,000 + 19,000 = 149,000

12-19 Contractual language does not preclude the possibility of misunderstandings and situations that could adversely affect project progress. Therefore, it is considered a best practice to have a ______ committee established as a means of removing the obstacles and managing conflicts A. Top management B. Disputes resolution C. Steering D. Engagement

12-19 Answer B - Generally the process for resolving contractual disputes is described in the contract itself and usually includes designated representatives from each party involved who are authorized to resolve contract issues. Refer to page 339, PMBOK Guide - Claims administration

12-20 Which of the following contract types does NOT encourage the seller to controlcosts and, as a result,places the greatest risk on the buyer? A. Cost exclusive B. Cost Plus Fixed Fee C. Cost Plus Incentive Fee D. Cost Plus Percentage of Cost

12-20 Answer D - The Cost plus percentage of cost or CPPC contract transfers all cost to the buyer and any increase in costs will result in an increase in the fee to the seller. This places significant risk with the buyer and requires close cost management.

12-3 The process that ensures that each party meets their contractual obligations and that their legal rights are protected is: A. Administer procurements B. Contract payment systems C. Claims administration D. Contract change control

12-3 Answer A - Contract payment systems, claims administration, and contract change control are all included in the Administer procurements process.

12-4 Ending a contract before all contractual objectives have been reached due to a buyers decision to change business direction is an example of: A. Breach of contract B. Contract close out C. Termination for convenience D. Letter of intent

12-4 Answer C - Termination for convenience is a contract clause that permits the buyer close a contract at any time for any reason. Generally there will be specific conditions associated with the execution of this clause. Breach of contract refers to a failure to deliver a bargained for a agreed upon contractual condition.

12-5 As the buyer during the contract negotiation process, you are interested in a contract that would have the least amount of risk to your organization. Which of the following contracts would be preferred to meet your risk averse needs? A. Firm Fixed Price B. Cost Plus Percentage of Cost C. Cost Plus Incentive Fee D. Cost Plus Fixed Fee

12-5 Answer A - The Firm Fixed Price or Lump Sum contract places the responsibility to deal with the risk of a cost overrun with the seller. Cost plus contracts shift the cost risks to the buyer.

12-6 The buyer has negotiated a cost plus incentive fee contract with the seller. The contract has a target cost $300,000, a target fee of $40,000, a sharing ratio of 80/20, a maximum fee of $60,000 and a minimum fee of $10,000. If the actual cost of the project is $380,000 how much will the buyer pay as a fee to the seller? A. $56,000 B. $104,000 C. $30,000 D. $24,000

12-6 Answer D - Solution Target cost = 300,000 Target fee = 40,000 Sharing ratio = 80/20 which means the seller assumes 20% of the cost overrun or 20% of 80,000 = 16,000. Target fee 40,000 -16,000 = 24,000 The cost plus incentive fee contract shares the cost savings but could also result in redcued fees to the seller if a cost savings is not achieved.

12-7 You are involved in finalizing contract negotiations. The definitive contract has not yet been signed and may take an additional two weeks but it is critical to start several work packages within the three days work to avoid schedule problems later. You should utilize a: A. Verbal agreement to get started B. Letter of intent or letter contract C. A project charter D. A statement of work update

12-7 Answer B - A letter of intent is an agreement to begin work and release some funding to avoid potentially serious schedule delays to meet a negotiated delivery date while final approvals of the definitive contract are obtained.

12-8 A contract can be described as: A. An informal agreement between two parties B. A mutually binding agreement involving an offer and an acceptance C. A type of project scope statement D. A document approved by the sponsor defining project manager authority

12-8 Answer - B. A contract is a negotiated agreement that is considered to be for a legal purpose and includes the legal obligations of the seller to deliver the agreed upon products or services. Contracts include a consideration or payment for services.

12-9 Buyers may wish to review the qualifications of potential sellers before they actually meet with them. This process is known as: A. Obtaining independent estimates B. Screening C. A weighting system D. Contract negotiation

12-9 Answer B - Prior to reviewing detailed proposals a buyer may review the qualifications of sellers who have indicated an interest to bid. Pre-screening of qualifications will ensure that negotiations are focused on sellers who can perform the required work. A weighting system is generally utilized to score qualified sellers after proposals have been submitted.

120. Paul is a project manager for an industrial design project. The project has a 60% chance of making the company $230,000 over the next year. It has a 40% chance of costing the company $150,000. What's the project's EMV? A. $138,000 B. $60,000 C. $78,000 D. $230,000

120. Answer: C $230,000 x 0.70 = $ 138,000 savings, and $150,000 x 0.40 = -$60,000 expenses. Add them together and you get $78,000.

125. Which of the following is NOT an input of the Contract Administration process? A. Work Performance Information B. Procurement Management Plan C. Contract Management Plan D. Selected Sellers

125. Answer: B Contract Administration is the Monitoring & Controlling process for Procurement Management. It's when you run into a change that has to be made to a specific contract. The key here is that it's only about one specific contract - every contract has its own way of dealing with changes, which is why you consult the Contract Management Plan (which deals with just that one contract), and not the Procurement Management Plan (which deals with the entire Procurement Management area.)

126. You are having lunch with one of your colleagues. He tells you in confidence that he lied about having a PMP certification, and never actually passed the exam. What is the BEST way to handle this situation? A. Report the person to PMI B. Report the person to his manager C. Ask him to tell the truth to his manager D. Do nothing because you were told this in confidence

126. Answer: A If you discover that someone claims to have the PMP credential but is not actually certified, you must contact PMI immediately so that they can take action.

127. Your team has recommended a change to the scope verification process. What's the first thing you should do? A. Implement the change. B. Analyze the change versus the Project Management plan to see what its impact will be. C. Write up a change request. D. Tell your team that the process has already been decided and they should follow it.

127. Answer: B You may get a question on the exam that asks what to do when you encounter a change. You always begin dealing with change by consulting the project management plan.

13. In which plan do you define the processes that will be used to keep people informed throughout the project? A. Staffing Management Plan B. Project Management Plan C. Schedule Management Plan D. Communications Management Plan

13. Answer: D The Communications Management Plan defines all of the processes that will be used for communication on the project.

131. Which of the following is the BEST example of a reward system? A. The team member who works the hardest will receive $1000 B. Everyone will get a bonus of $500 if the project meets its quality goals, $500 if it meets its budget goals, and $600 if it comes in on time. C. The five team members who put in the most hours will get a trip to Disneyland. D. The team will only get a bonus if the project comes in 50% under budget, schedule and quality metric goals. Even though the team leads know this goal is unrealistic, they agree that it will motivate the team to work harder.

131. Answer: B The key to a good bonus system is that it must be achievable and motivate everyone in the team to work toward it. If you are only rewarding one team member or a few people in the group, the rest of the team will not be motivated. Also, making the goals too aggressive can actually de-motivate people.

136. Two of your project team members approach you with a conflict that they are having with each other over the technical approach to their work. One of the two people is very aggressive, and tries to get you to make a decision quickly. The other team member is quiet, and seems less willing to talk about the issue. The conflict is starting to cause delays, and you need to reach a decision quickly. You spend the weekend studying conflict resolution techniques, which is an example of: A. Contributing to the project management body of knowledge B. Maslow's Hierarchy of Needs C. Enhancing personal professional competence D. Confronting (or problem-solving)

136. Answer: C An important part of any project manager's career is enhancing personal professional competence. This means increasing your knowledge and applying it so that you can improve your ability to manage projects.

137. You are managing a software project. The stakeholders have found a few requirements that were missed in the initial Project Scope Statement. You put the requested changes through change control and they are approved so you need to update the Scope Statement to include the new work. Where can you find the most updated version of the Scope Statement? A. In the Configuration Management System B. In the Document Repository C. In the Project Management Plan D. In the Communications Management Plan

137. Answer: A The configuration management system is there to be sure that everybody on the team has the most updated version of all of the project documents. Whenever a project document is changed, it is checked into the Configuration Management System so that everyone knows where to go to get the right one.

138. After a status meeting, one of your team members, John, pulls you aside and tells you that he was insulted by a comment from another team member. He felt that the comment was racist. You meet with the team member who made the comment, Suzanne, but she says that the other team member's performance has been very poor. She has never made a comment like this before at the company. You review the records, and see that she is correct - he has consistently delivered lower quality work than any other team member. What is the BEST way to handle this situation? A. At the next team meeting, reprimand John for his poor performance and Suzanne for the racist comment B. Get John additional help for his poor performance C. Reprimand Suzanne in private for her racist comment, and follow any company policies for reporting racism among employees D. Suzanne has never had this problem before, so she should be given another chance

138. Answer: C Project managers must have a "zero tolerance" policy on racist remarks, or any other cultural insensitivity. If there is an incident involving racism, sexism or any other kind of discrimination, your top priority is to correct that. Every company has a policy that guides how you handle this kind of situation, so a question involving racism will usually involve the company's policy or HR department.

139. You're managing a project that is currently executing. You're evaluating the work being performed by constantly measuring the project performance, and recommending changes, repairs and corrections where necessary. What process are you performing? A. Integrated Change Control B. Monitor & Control Project Work C. Scope Control D. Communications Management

139. Answer: B An important part of making sure that your project goes well is keeping an eye on the work, and that's what the Monitor & Control Project work process is for. It's where you constantly evaluate the work being done, and any time you see a problem you recommend changes, defect repairs and preventive and corrective actions.

141. As you complete each deliverable for your project, you check that it is correct along with your stakeholders and sponsors. Which process are you performing? A. Scope Definition B. Activity Definition C. Scope Verification D. Scope Control

141. Answer: C You need to make sure that what you're delivering matches what you wrote down in the scope statement. That way, the team never delivers the wrong product to the customer. As you complete each deliverable, you work with the stakeholders and the sponsor to make sure that you did the right work.

146. You have been hired by a contractor, who wants you to manage a construction project for one of their clients. The project team has been working for two months, and is 35% done with the job. Two of your team members come to you with a conflict about how to handle the ongoing mainenance for a piece of equipment. You know that they can safely ignore the problem for a while, and you're concerned that if your project falls behind schedule before next week's stakeholder meeting, it will cause problems in the future. You tell the two team members that the problem really isn't as bad as they think it is, and if they take a few days to cool off about it you'll help them with a solution. This approach to conflict resolution is known as: A. Withdrawal B. Compromise C. Smoothing D. Forcing

146. Answer: C Smoothing is minimizing the problem, and it can help cool people off while you figure out how to solve it. But it's only a temporary fix, and does not really address the root cause of the conflict.

147. Which of the following is not true about the Project Charter? A. It formally assigns the project manager B. It is always created by the project manager C. It contains external constraints and assumptions D. Includes a high level milestone schedule

147. Answer: B The Project Charter is often created without the project manager's involvement. Sometimes it is handed to the Project Manager by the sponsor or high level manager.

148. You're managing a construction project to install several hundred air conditioner panels in a new office building. Every floor has identical panels. The customer, a construction contracting company, has provided specifications for the installations. The team is using a process to install and verify each panel. As the team completes each panel, your team's quality control inspector measures it and identifies defects. The root cause of each defect is identified. You want to identify the ongoing trends of defective installations. Which is the BEST tool to use for this? A. Control chart B. Fishbone diagram C. Run chart D. Pareto chart

148. Answer: C Run charts tell you about trends in your project by showing you what your data looks like as a line chart. If the line in the chart were the number of defects found in your product through each quality activity, that would tell you that things were getting worse as your project progressed. In a run chart, you are looking for trends in the data over time.

149. Which risk analysis tool is used to model your risks on a computer to show random probabilities? A. Computerized risk audit B. Monte Carlo analysis C. EMV analysis D. Delphi technique

149. Answer: B Monte Carlo analysis is a way of seeing what could happen to your project if probability and impact values changed randomly.

15. You are currently performing the Select Sellers process. You are considering two bids from companies on your qualified sellers list. Your project is on a tight budget, and you have been instructed by senior management to consider the cost over any other criteria. You used the company that submitted the lower bid on a previous project, and you were not happy with their work. The company that submitted the higher bid has a reputation for treating their clients well, flying project managers first class and giving them accommodations in five-star hotels. What is the BEST way to handle this situation? A. Select the company with the lowest bid B. Give the manager at the company with the higher bid information that will allow him to tailor his bid so that it better meets your needs C. Rewrite the RFP so that the company with the lowest bid is excluded D. Select the company with the higher bid

15. Answer: A There are a few really important ethical issues in this question. Your senior management was clear about the rules: go with the lowest bidder. And that's what you should do. But on top of that, you shouldn't choose your sellers based on perks that you'll get - that's called a bribe. And you should always refuse bribes.

What is a bidder conference? What should be watched out for?

Procurement management A meeting with prospective sellers to make sure all understand the procurement and have a change to ask questions Watch for: Collusion Sellers not asking questions All questions and answers are distributed to all

What is the process of procurement management?

Procurement management Plan Procurements Conduct Procurements Administer Procurements Close Procurements

What is a fixed price economic price adjustment contract?

Procurement management A fixed price contract with an allowable adjustment for price increase- due to cost increases in later time periods

What is a letter of intent?

Procurement management A letter from the buyer- without legal binding- saying the buyer intends to hire the seller

What is a qualified seller list?

Procurement management A list of sellers who have been preapproved

What is a procurement management plan?

Procurement management A plan for how each procurement will be administered

What is a procurement audit?

Procurement management A structured review of the procurement process and determination of lessons learned to help other procurements

What is a contract change control system?

Procurement management A system created to modify the contract and to control changes to the contract

What is a cost reimbursable contract?

Procurement management All costs are reimbursed

What is a cost plus fixed fee contract?

Procurement management All costs are reimbursed The fee is fixed at a certain monetary amount

What is a cost plus percentage of cost contract?

Procurement management All costs are reimbursed- plus a specific percentage of costs as fee or profit

What is a make-or-buy decision?

Procurement management Analysis of whether the performing organization should do the work or buy the services/supplies from outside the organization

Name some negotiation tactics.

Procurement management Attacks Good guy/Bad guy Deadline Lying Missing Man Delay Withdrawal Fait accompli

What is the difference between centralized and decentralized contracting?

Procurement management Centralized contracting: There is one procurement- and the procurement manager handles procurements on many projects Decentralized contracting: A procurement manager is assigned to one project full-time and reports directly to the project manager

What are key outputs of the Close Procurements process?

Procurement management Closed procurements Formal acceptance

What does privity refer to?

Procurement management Contractual relationships between two or more companies

What are the main types of contracts?

Procurement management Cost reimbursable Fixed price Time and material

What is a cost plus incentive fee contract?

Procurement management Costs are reimbursed plus an incentive- usually an additional fee- for exceeding performance criteria that have been determined in advance

Name the advantages of decentralized contracting

Procurement management Easier access to contracting expertise More loyalty to the project

Name inputs to the procurement management process.

Procurement management Enterprise environmental factors Organizational process assets Scope baseline Risk register Project schedule Initial cost estimates for contracted work Cost baseline for the project

What do incentives accomplish? What might they be used for?

Procurement management Help bring the seller's objectives in line with the buyers' Incentives for: Time Cost Quality Scope

Name the advantages of centralized contracting.

Procurement management Increased expertise in contracting Standardized practices Clear career path

What is a contract?

Procurement management It may include all of the following: Legal terms Business terms Procurement statement of work Marketing literature Drawings

What is the key function of a records management system?

Procurement management Maintain an index of contract documentation and records to assist in retrieval Par of the project management information system

Define claims administration

Procurement management Managing contested changes and constructive changes (claims) requested by the seller

Name the disadvantages of decentralized contracting.

Procurement management No home for the contracts person after the project Less focus on improving contracting expertise Inefficient use of resources Little standardization of contracting processes from one project to the next

What are objectives of negotiation?

Procurement management Obtain a fair and reasonable price Develop a good relationship with the other side

What is required for a legal contract?

Procurement management Offer Acceptance Consideration Legal capacity Legal purpose

Name the disadvantages of centralized contracting.

Procurement management One person works on many projects It may be difficult to obtain contracting help when needed

Name the types of procurement statements of work.

Procurement management Performance Functionally Design

What are key outputs of the Administer Procurements process?

Procurement management Procurement documentation Change requests Project management plan updates

What are key outputs of the Plan Procurements process?

Procurement management Procurement management plan Procurement statement of work Make-or-buy decisions Procurement documents

What occurs during the Close Procurements process?

Procurement management Product verification Procurement audit Financial closure

When are source selection criteria created and used? What do they refer to?

Procurement management Rationale that the buyer will use to weight or score sellers' proposals Created during the Plan Procurements process used during the Conduct Procurements process to pick a seller

What are procurement documents

Procurement management Request for proposal (RFP) Invitation for bid (IFB) Request for quotation (RFQ)

Name some of the project manager's activities during the Administer Procurements process.

Procurement management Review invoices Integrated change control Interpret the contract Monitor performance against the contract Risk management Please see the long list in the Procurement Management chapter of CAPM Exam Prep or PMP Exam Prep

Who has the cost risk in a cost reimbursable contract? In a fixed price contract?

Procurement management Risk in a cost reimbursable contract is borne by the buyer Risk in a fixed price contract is borne by the seller

What are standard contract terms and conditions? What are special provisions?

Procurement management Standard contract terms and provisions: Terms and conditions that are used for all contracts within the company Special provisions: Terms and conditions created for the unique needs of the project Created with the input of the project manager

Why might there be conflict between the contract administrator and the project manager?

Procurement management The contract administrator is the only one with the power to change the contract (including the project scope)

What is a fixed price contract?

Procurement management There is only one fee for accomplishing all the work

What must be done for all contract changes?

Procurement management They must be formally documented

Describe how contract administration efforts will be different with each contract form.

Procurement management This critical concept cannot be summarized here. See the Procurement Chapter in CAPM Exam Prep or PMP Exam Prep for more on this topic

What is the purpose of a procurement performance review?

Procurement management To identify seller's successes or failures- and allow the buyer to rate the seller's ability to perform

What is a fixed price incentive fee contract?

Procurement management Total price is fixed- but an additional amount may be paid for exceeding performance criteria determined in advance

What is a time and material contract?

Procurement management Usually a fixed hourly rate or a fixed cost per item- plus a reimbursable component for expenses or materials

What does noncompetitive procurement mean?

Procurement management Work awarded to a single source or sole source without competition

What does responsibility in project management mean?

Professional and Social Responsibility Make decisions based on the best interests of the company and the team Do what you say you will do Acknowledge your errors Uphold laws- including copyright laws Report unethical behavior

What does professional and social responsibility entail?

Professional and Social Responsibility Responsibility Respect Fairness Honesty

What does fairness in project management mean?

Professional and Social Responsibility Act impartially Look for and disclose conflicts of interest Do not discriminate Honor your duty of loyalty

What does respect in project management mean?

Professional and Social Responsibility Maintain an attitude of mutual cooperation Respect cultural differences Engage in good faith negotiations Be direct in dealing with conflict

What is a process improvement plan?

Quality Management A plan for analyzing processes used on the project to decrease defects- save time and money- and increase customer satisfaction

What is a control Chart?

Quality Management A specialized trend chart documenting whether a measured process is in or out of statistical control

What is marginal analysis?

Quality Management An analysis to determine when optimal quality is reached An analysis to determine the point where incremental revenue from improvement equals the incremental cost of secure it.

How much inventory is maintained in a just in time environment? How does this affect attention to quality?

Quality Management Little inventory is maintained It forces attention to quality

What are key outputs of the Plan Quality process?

Quality Management Quality management plan Quality metrics Quality checklists Process improvement plan Project document updates

What are quality metrics?

Quality Management Specific measures of quality to be used on the project in the Perform Quality Assurance and Perform Quality Control processes

What does continuous improvement mean?

Quality Management The ongoing enhancement of a product or service through small- continuous improvements in quality

What is the 80/20 principle?

Quality Management 80 percent of problems are caused by 20 percent of the root causes

What is a special cause variation?

Quality Management A data point on a control chart or rule of seven indicating that the measured process is out of statistical control and that the cause(s) of the event must be investigated

What is a Pareto chart?

Quality Management A histogram that arranges the results from most frequent to least frequent to help identify which root causes are resulting in the most problems

What is a quality checklist?

Quality Management A list of items to inspect- a list of steps to perform- or a picture of an item with space to note any defects found during inspection

What is design of experiments?

Quality Management A statistical method for changing important variables to determine what combination will improve overall quality

What is a normal distribution curve?

Quality Management A symmetric bell-shaped frequency distribution curve The most common probability distribution

What are key outputs of the Perform Quality Assurance process?

Quality Management Change requests Updates to the project management plan and project documents Organizational process assets updates

Define benchmarking.

Quality Management Comparing your project to other projects to get ideas for improvement and to measure quality performance

Name key tools and techniques used in the Plan Quality process.

Quality Management Cost benefit analysis Cost of quality Control charts Benchmarking Design of experiments Statistical sampling Flowcharting

What are examples of costs of conformance and costs of nonconformance? Which costs should be greater? What are costs of nonconformance associated with?

Quality Management Cost of conformance: Quality training Studies Surveys Cost of nonconformance: Rework Scrap Inventory costs Warranty costs The costs of conformance should be less than the costs of nonconformance Costs of nonconformance are associated with poor quality

What are the impacts of poor quality?

Quality Management Increased costs Low morale Low customer satisfaction Increased risk Rework Schedule delays

What is statistical sampling?

Quality Management Inspecting by choosing only part of a population (a sample) to test

What does ISO 9000 stand for?

Quality Management One of the International Organization for Standardization (ISO) international quality standards that asks- Do you have a quality standard- and are you fowllowing it?

What is the process of quality management?

Quality Management Plan Quality Perform Quality Assurance Perform Quality Control

What does the rule of seven mean?

Quality Management Seven consecutive data points appearing on a control chart on one side of the mean- suggesting that the process is out of statistical control

What are quality audits?

Quality Management Structured review of quality activities These audits often result in lessons learned for the organization

What are control limits?

Quality Management The acceptable rage of variation on a control chart

What does the phrase prevention over inspection mean?

Quality Management The cost of avoiding or preventing mistakes is much less than the cost of correcting them.

What are the specification limits on a control chart?

Quality Management The customer's definition of acceptable product/service characteristics and tolerances

What is the definition of quality?

Quality Management The degree to which the project fulfills requirements

What does statistical independence mean?

Quality Management The probability of event B occurring does not depend on event A occurring For example- the outcome of a second roll of a die is not influenced by (dependent on) the outcome of the first roll

What do 3 sigma and 6 sigma refer to?

Quality Management These are often used as quality standards 3 Sigma: +/- 3 standard deviations from the distribution mean under which 99.73% of all items are acceptable 6 Sigma: +/- 6 standard deviations from the mean under which 99.9999998% of all items are acceptable 6 sigma is a higher quality standard than 3 sigma

What does mutually exclusive mean?

Quality Management Two events that cannot occur in a single trail For example- you can't get a 5 and a 6 on a single roll of the die

What is the process of risk management?

Risk Management Plan Risk Management Identify Risks Perform Qualitative Risk Analysis Perform Quantitive Risk Analysis Plan Risk Responses Monitor and Control Risks

What is a key output of the Identify Risks process?

Risk management Risk Register

What is a risk?

Risk management An occurrence that can affect a project for better (opportunity) or worse (threat)

Name and define the risk response strategies for threats.

Risk management Avoid: Eliminate a specific threat by eliminating the cause Mitigate: Reduce the probability or impact of a threat Accept: Passive acceptance - do nothing

What are the types of risks?

Risk management Business Pure

What is risk data quality assessment? When is it done?

Risk management Determining how well the risk information is understood A method to test reliability of risk information collected It is done during the Perform Qualitative Risk Analysis process

What are risk identification techniques?

Risk management Document reviews Brainstorming Delphi technique Root cause analysis Interviewing SWOT Checklist analysis Assumptions analysis Diagramming techniques

What are risk audits?

Risk management Examining and documenting the effectiveness of the risk process and the risk response owners

Name and define the risk response strategies for opportunities

Risk management Exploit: Make sure the opportunity occurs Share: Allocate ownership to a third party Enhance: Increase probability or impact Accept: Do nothing

How does buying insurance relate to risk response planning?

Risk management It exchanges an unknown risk for a known risk It is a method to decrease project risk

What are risk categories?

Risk management List of common sources of risk- including: Technical Project management Schedule Cost Quality Scope Resources Customer satisfaction Others

What is reserve analysis? When is it done?

Risk management Managing the reserves and making sure the amount remaining is adequate It is done during the Monitor and Control Risks- Estimate Activity Durations- and Determine Budget processes

What are secondary risks?

Risk management New risks crated by the implementation of risk response strategies

What are contingency plans?

Risk management Planned responses to risks

What key outputs of the Perform Quantitative Risk Analysis process are added to the risk register?

Risk management Prioritized list of quantified risks Possible realistic and achievable completion dates and project costs Quantified probability of meeting project objectives

Describe key things one needs to determine about each risk.

Risk management Probability Impact Timing Frequency

What is the formula for expected monetary value?

Risk management Probability times impact EMV = P x I

Name the inputs to the risk management process.

Risk management Project background information Historical records from previous projects Organizational process assets Project charter Project scope statement Team WBS Network diagram Staffing management plan Procurement management plan

What are risk reassessments? When do they occur?

Risk management Reviews of the risk management plan and risk register They occur during the Monitor and Control Risks process

What key outputs of the Perform Qualitative Risk Analysis process are added to the risk register?

Risk management Risk Ranking for the project Prioritized risks and their probability and impact ratings Risks grouped by category List of risks requiring additional analysis and response Watch list

What is a key output of the Plan Risk Management Process?

Risk management Risk management plan

What are key outputs of the Plan Risk Responses process?

Risk management Risk register updates: Residual risks Contingency plans Risk response owners Secondary risks Triggers Fallback plans Reserves for time and cost Updates to the project management plan and project documents

What are key outputs of the Monitor and Control Risks process?

Risk management Risk register updates: Outcomes of risk reassessments and risk audits Updates to the risk register Closing of risks that are no longer applicable Details of what happened when risks occurred Lessons learned Change requests Updates to the project management plan and project documents

What are residual risks?

Risk management Risks that remain after risk response planning: Risks for which contingency and fallback plans have been created Risks that have been accepted

What is a probability and impact matrix?

Risk management The company's rating system used to determine which risks continue through the risk management process

What does a revised project management plan have to do with risk management?

Risk management The components of the project management plan will need to be updated based on the results of risk planning

What is a contingency reserve?

Risk management Time and cost allocated to cover known unknowns It is included in the cost baseline

What are reserves?

Risk management Time or cost added to the project to account for risk There are two types of reserves: Management reserve Contingency reserve

What is a project scope statement? What are the key items included?

Scope Management A written description of the project deliverables and the work required to create those deliverables It includes: Product scope Project scope Deliverables Product acceptance criteria What is not part of the project Constraints and assumptions

What are key outputs of the Verify Scope process

Scope Management Accepted deliverables Change requests Project document updates

How are work packages different from activities?

Scope Management Activities are generated from each work package Work packages are shown in a WBS Activities are shown in an activity list and network diagram

What is the process of scope management?

Scope Management Collect Requirements Define Scope Create WBS Verify Scope Control Scope

What is the definition of scope management?

Scope Management Doing all the work- and only the work- included in the project Determining if work is included in the project or not

What is the value of a requirements traceability matrix?

Scope Management Helps link requirements to objectives and/or other requirements to make sure the project meets strategic goals

What does a work breakdown structure show?

Scope Management Hierarchy Interrelationships Work packages Control account Numbering System

name several requirements gathering techniques

Scope Management Interviewing Focus groups Facilitated workshops Brainstorming Nominal group technique Delphi technique Mind Maps Affinity diagrams Questionnaires Prototypes

What is the difference between product scope and project scope?

Scope Management Product scope is requirements that relate to the product of the project Product scope is the project work needed to accomplish the product scope

What is a key output of the Define Scope process?

Scope Management Project scope statement

What makes up the scope baseline?

Scope Management Project scope statement WBS WBS dictionary

What are key outputs of the Collect Requirements process?

Scope Management Requirements documentation Requirements management plan Requirements traceability matrix

What requirement attributes should be recorded?

Scope Management Requirements identification number Source of the requirement Who is assigned to manage the requirement Status of the requirement

What is decomposition?

Scope Management Subdividing the major deliverables into smaller- more manageable components

Product analysis is part of which scope management process?

Scope Management The Define Scope process

In which process is the scope management plan created?

Scope Management The scope management plan is created in integration management- as part of the Develop Project Management Plan process.

What are key outputs of the Create WBS process

Scope Management Work breakdown structure (WBS) WBS dictionary Scope baseline

What are key outputs of the Control Scope process?

Scope Management Work performance measurements Change requests Updates to the project management plan and project documents

What is Monte Carlo analysis?

Time Management A schedule network analysis technique It is used to simulate the project to determine how likely you are to get the project completed by any specific date or for any specific cost It is also used in the Perform Quantitative Risk Analysis process to determine an overall level of risk on the project

What is the critical chain method?

Time Management A schedule network analysis tool that makes use of buffers

What are key outputs of the Define Activities process?

Time Management Activity List Activity attributes Milestone list

What are key outputs of the Estimate Activity Resources process?

Time Management Activity resource requirements Resource breakdown structure

What is a resource breakdown structure?

Time Management An organizational chart or table showing identified resources by category

What is reestimating?

Time Management Estimating the project again after planning to make sure you can still meet the end date- budget- or other objectives

What do network diagrams show?

Time Management Interdependencies between activities How project activities will flow from beginning to end Network diagrams may also be used to determine the critical path

What is resource leveling?

Time Management Keeping the amount of resources used for each time period constant- thus affection the project duration

What are the following rules? 50/50 20/80 0/100

Time Management Methods of progress reporting 50 percent (or 20 percent or 0 percent) of the effort is reported complete when an activity begins The balance (50 percent- 80 percent- or 100 percent) is recorded only when an activity is finished

What are key outputs of the Sequence Activities process?

Time Management Network diagrams Project document updates

What do simple bar charts show?

Time Management Project schedule or project status

What is fast tracking?

Time Management Schedule compression by doing more critical path activates in parallel

What is crashing?

Time Management Schedule compression through analyzing cost and schedule trade-offs to obtain the greatest compression for the least cost while maintain scope

What is the Develop Schedule process? What are its key outputs?

Time Management The actions and tools necessary to create an bought into- approved- realistic- and formal project schedule Outputs: Project schedule Schedule baseline

Define Lag.

Time Management Waiting time inserted into the schedule