ITS 381 - PM ch.2-3
What is the best approach to identify all of the project stakeholders?
Interview stakeholders to identify other stakeholders.
You are the project manager for an electrical engineering plant. Which of the following is more likely to assist you to determine the pros and cons of an activity?
Benefit-cost ratio analysis
Each of the following options describes an element of the Develop Project Management Plan process except for which one?
Configuration management system
Which of the following statements explains the Project Management Knowledge Areas?
Consist of 10 areas that bring together processes that have characteristics in common.
Which of the following processes is not a part of the Project Integration Management knowledge area?
Create Work Breakdown Structure (WBS).
What are the Define Scope process tools and techniques?
Expert judgment, alternatives analysis, multicriteria decision analysis, facilitation, and product analysis
Work Breakdown Structure (WBS) is an example of which of the following charts?
Hierarchical chart
Which of the following options defines decision models?
Project selection methods
What is the primary purpose of a project kick-off meeting?
To establish why the project has been initiated.
Which of the following processes are parts of the Initiating process group?
Develop Project Charter, Identify Stakeholders
Which of the following are tools and techniques of the Identify Stakeholders process?
Expert judgment, data gathering, data analysis, data representation, and meetings
You are the project manager for Lucky Stars nightclubs. They specialize in live country and western band performances. Your newest project is in the Planning processes group. You are working on the WBS. The finance manager has given you a numbering system to assign to the WBS. Which of the following is true?
The numbering system is a unique identifier known as the code of accounts identifier, which is used to track the costs of the WBS elements. Explanation: Each element in the WBS is assigned a unique identifier called a code of accounts identifier. Typically, these codes are associated with a corporate chart of accounts and are used to track the costs of the individual work elements in the WBS.
Kia is a project manager in an organization. She is providing guidance to the project team on the steps required to generate the work breakdown structure (WBS). She lists the following:
Verify the degree of decomposition
Kia is a project manager in an organization. She is providing guidance to the project team on the steps required to generate the work breakdown structure (WBS). She lists the following: 1. Identify the deliverables and work. 2. Organize the WBS. 3. Decompose the WBS components into lower-level components. 4. Assign identification codes. What is the fifth step?
Verify the degree of decomposition.
Steve has proposed a project to management that he believes will be worth $980,000 in four years. Management is considering the project but wants to determine if the investment of $530,000 is a good option. If management believes the rate of return could be six percent, should they invest in Steve's project?
Yes, management should invest in Steve's project because the present value is $776,545, which is greater than the organization's investment.
You're a manager of the NJY Electrical Grid Project. Cathy, an electrical engineer on your project team, will complete all electrical design activities as part of her duties. Cathy's electrical engineering duties are best described by what project management term?
Responsibility
You are a management consultant for an organization. Paul, the project manager for your client, has been performing stakeholder analysis and created a classification model that ranks stakeholders based on their power, urgency, and legitimacy. What type of chart has Paul created?
Salience model
You've just completed the WBS for your project. According to your project, which of the following statements is true?
The WBS breaks the project deliverables down to the work package level, where cost and time estimates can be easily determined.
Which of the following makes up the scope baseline when using a predictive life-cycle approach?
The WBS, approved project scope statement, work packages, planning packages, and WBS dictionary Explanation: The scope baseline consists of the approved project scope statement, the WBS, work packages, planning packages, and the WBS dictionary.
You are the project manager of a large project that will utilize resources from across the organization. Who will approve the project charter in a large project that spans multiple departments within an organization?
The entity above the project resource and will fund the project
Which project management meeting allows stakeholders to meet one another and learn about the project?
Kick-off meeting
What are the decision models?
Project-selection methods
The WBS represents all of the product and project work - including the project management work. All of the work in the project must roll up to the higher levels of the WBS so that nothing is left out and also that no extra work is included in the project. What is this rule called?
100% Rule
Which of the following is not true about the work breakdown structure (WBS) of a project?
A WBS defines what will or will not be included in a project.
You are a project management consultant for a new client. You're helping this client establish their project management practices. One of the first questions the client asks is about the documents and information that should be included in the typical project scope. Which one of the following is (are) included in the project scope?
Acceptance criteria
All of the following are tools and techniques of the Identify Stakeholders process except for which one?
Agreements
Drag the cash flow analysis technique to its description.
Here are the cash flow analysis techniques: Payback period: Compares the initial investment to the cash inflows expected over the life of the product, service, or result Discounted cash flow: Compares the value of the future cash flows of the project to today's dollars Net present value: Allows user to calculate an accurate value for the project in today's dollars Internal rate of return: Refers to the discount rate when the present value of the cash inflows equals the original investment
Which of the following is true regarding IRR?
IRR is the discount rate when NPV is equal to zero. Explanation: IRR assumes reinvestment at the IRR rate and is the discount rate when NPV is equal to 0.
Question 45 :Which of the following is true regarding NPV?
NPV assumes reinvestment at the cost of capital.
Which of the following is true regarding NPV?
NPV assumes reinvestment at the cost of capital.
Phil is the project manager of the NHG Project and is working with the project sponsor to create the project charter. The project sponsor needs to refer several other documents to complete the project charter excluding which of the following?
Stakeholder engagement plan
An advertising firm recently hired a project manager to lead the integration efforts of a recent acquisition made by the company. The acquisition earned the advertising firm as the largest firm operating within their respective region. Which of the following lists of needs and demands represent the reason that the project came about?
Strategic opportunity
Which of the following processes are parts of the Project Resource Management knowledge area?
develop team, manage team, plan resource management, acquire resources
Harry is a project manager for a software development project. In the early stages of planning, he and the stakeholders operated with the belief that the software they were developing would work with their organization's current computer operating system. Now that the project team has started developing the software it has become apparent that the software will not work with nearly half of the organization's computer operating systems. The incorrect belief Harry had with the software compatibility is an example of what in project management?
Assumption
You are the project manager of a large construction project. You have communicated to the stakeholders that the construction should start in the early spring season when the weather is ideal for construction projects. This is an example of what project attribute that should be documented in the project scope statement?
Assumption
During a change control meeting, the project manager summarizes the latest request submitted and reviews analysis and alternatives provided by the team. The sponsor, who had already reviewed the information prior to the meeting, notes that he approves the change request and the committee can move on to the next submission. What type of decision-making technique did the change control board use?
Autocratic
Which of the following processes fall under the Project Scope Management knowledge area?
Define scope, create wbs, control scope The following are the processes of the Project Scope Management knowledge area: Plan scope management Collect requirements Define scope Create WBS Validate scope Control scope
Which of the following processes of Project Integration Management knowledge area documents the action necessary to define, prepare, integrate, and coordinate all subsidiary plans?
Develop Project Management Plan
Which of the following lists of processes belong to the Project Integration Management Knowledge Area?
Develop Project Management Plan, Direct and Manage Project Work, and Perform Integrated Change Control. Explanation: The Project Integration Management Knowledge Area consists of the following processes: Develop Project Charter, Develop Project Management Plan, Direct and Manage Project Work, Manage Project Knowledge, Monitor and Control Project Work, Perform Integrated Change Control, and Close Project or Phase.
A project manager is in the process of documenting how scope will be identified, decomposed, and monitored and controlled for her project. In what activity is the project manager engaged in?
Developing the scope management plan
According to the PMBOK Guide, the project manager is identified and assigned during which process?
During the Develop Project Charter process
According to the PMBOK® Guide, in which process the project manager is identified and assigned?
During the Develop Project Charter process
Direct and Manage Project Work, Manage Quality, and Conduct Procurements are processes belonging to what project management process group?
Executing
Your nonprofit organization is preparing to host its first annual 5 K run/walk in City Park. You worked on a similar project for the organization two years ago when it cohosted the 10 K run through Overland Pass. Which of the organizational process assets might be most helpful to you on your new project?
Historical information from a previous 10 K run or similar project Explanation: Historical information on projects of a similar nature can be helpful when initiating new projects. They can help in formulating project deliverables and identifying constraints and assumptions and will be helpful later in the project Planning processes as well.
Which of the following is true?
Payback period is the least precise of the cash flow analysis techniques because it does not consider the time value of money. Explanation: Payback period does not consider the time value of money and is, therefore, the least precise of all the cash flow analysis techniques.
You are the project manager of an organization and a new project has been proposed to change all the monitors for every desktop computer in your organization. There are 1,578 monitors that will need to be removed and replaced with a flat screen monitor. What document will you first need to start this project?
Project charter
You are a project manager working on a large, complex project. You've constructed the WBS for this project, and all of the work package levels are subprojects of this project. You've requested that the subproject managers report to you in three weeks with their individual WBSs constructed. Which statement is not true regarding your WBS?
The work package level is decomposed to create the activity list
The Project Integration Management Knowledge Area is concerned with which of the following?
Identifying, combining, unifying, and coordinating various processes and project management activities
A project manager is in the process of developing a charter, alongside the project sponsor. While preparing a draft of the document, the project manager looks for information on the cost-benefit analysis. Which of the following inputs can the project manager refer for this information?
Business case
The business need or demand that brought about the project, high-level scope description, analysis of the problem or opportunity the project presents, recommendation, and an evaluation statement. Which of the following documents defines these elements together?
Business case
Tomas is the project manager of the QWS Project and is worried that the project stakeholders will want to change the project scope frequently. His fear is based on many open issues in the project and how the resolution of the issues may lead to additional project changes. In what document are Tomas and the stakeholders working in this scenario?
Change management plan
All of the following processes belong to the Project Integration Management Knowledge Area except for which one?
Collect Requirements
Martha is the project manager of a ship building project. She, with her team, is creating a table that links needs to their origin and traces them throughout the project lifecycle. In which of the following processes is she working?
Collect Requirements
You are the project manager of a project that is considered mission-critical for your organization. The project will span three countries and there are several laws that your project scope must conform to. Management has asked you to create a time and cost estimate for the project. What are the laws that are considered in the control sections of a project scope?
Constraint
You are the project manager for your organization. Your organization manages projects for other companies. You will be soon managing a project for the JUH Company. What document do you need first to help to develop the project charter?
Contract
Jennie is the project manager of the House Construction Project 340 for her company. This project is to create a custom home that will utilize solar and wind power for the client's end result. The home has many requirements for materials and longevity. She's working with the project team to divide and subdivide the project scope. What activity is Jennie doing in this scenario?
Decomposition
Holly is the project manager for the NHQ Project which she created. Some of the managers are finding it difficult to assign her the resources needed for the NHQ Project. What is the most likely cause of the difficulty Holly is experiencing from some of the managers?
Holly does not have a project charter signed by someone with the authority over the resources.
Carina is a principal project manager of You've Got Dogs, a specialty company that creates custom dog apparel and toys. Three months into the project, she kicks off the second phase of a project that is developing high-tech dog bones. As is part of her practice, she sits down with her sponsor to determine whether there are any new players that they missed in the first phase, and they hold a discussion on the direction of influence of these new stakeholders. What process is Carina carrying out?
Identify Stakeholders
Ross has been working for six months into a multiyear project. As a project manager, he began the habit of periodically working with his project's leadership team to assess and analyze changes to the list of project stakeholders. This activity is associated with which project management process?
Identify Stakeholders
During a planning meeting, a group of project team members expressed concerns regarding requirements gathered to date, noting that the customer was not very clear on what they wanted. The project team members urged the project manager to add in an additional preliminary phase that would allow them to get feedback early, before the team spent too much time developing the product. What is the project manager likely to do next?
Incorporate a prototype into the plan.
You are a new Project Manager who has been entrusted with a software development project that is in progress. A sub-contracting company has been doing the development work on this project. Which of the following processes do you not need to work on as part of the Procurement Management?
Initiation
A project manager is in the process of developing the project management plan. What is a valid tool and technique that the project manager can use to bring several stakeholders into alignment on the various aspects of the plan?
Interpersonal and team skills
Carina is a principal project manager of You've Got Dogs, a specialty company that creates custom dog apparel and toys. She has just finished developing the project charter of a project that will create a new line of high-tech dog bones. What is the significance of the document she developed, after approval?
It gives the project manager the authority to apply resources to the project.
All of the following statements relate to the Develop Project Management Plan process except for which one?
It is the first process in the Planning process group and the first process in the Project Scope Management Knowledge Area.
You are coaching Mark, a junior project manager, on the processes of project management. Which one of the following statements best defines the process of creating a work breakdown structure (WBS)?
It maps the deliverables of the project with sub deliverables and other components stemming from each major deliverable in a tree or chart format.
You are a new Project Manager for an IT project. This project is a part of the group of projects which deals with the development of a software application for one of your clients. You have been working with your Program Manager to develop the project charter. Is your Program Manager's approval enough for you to get started on the project?
No, because projects need to be authorized by someone external to the project such as a sponsor, PMO, or a portfolio steering committee.
You are sequencing activities and have just begun to identify dependencies. What can you use to help get you started quickly?
Organizational process assets
Anna is the project manager of the Software Solutions Project for her company. She's working with 145 stakeholders to determine the best solution for the project's deliverable. She decides to let these 145 stakeholders vote on the three options. When she tallies the votes, she learns that 55 votes are for option A, 47 votes are for option B, and 43 votes are for option C. She decides, based on the votes, to choose option A. What type of group decision-making technique is Anna using?
Plurality
Based on the following information, which project should be selected by the steering committee? Project A: payback period = 4 years; IRR = 5 percent Project B: payback period = 3.5 years; IRR = 7 percent Project C: payback period = 2 years; IRR = 3 percent
Project B
Based on the information presented in the following table, which of the following projects should a project selection committee choose when using a weighted scoring model?
Project B
Rick is a project manager for a construction project. He's aggregating the estimated price of individual activities or work packages to establish a predicted amount of money for the project. In which of the following Project Management Knowledge Areas is he working?
Project Cost Management
John is a project manager in an organization. He has facilitated the decomposition of work packages into activities. He next carries the team through several exercises to identify predecessor and successor activities. He is performing activities associated to which Knowledge Area?
Project Schedule Management
You work as a project manager for a large manufacturing company that produces dental supplies. Your latest project involves the installation of a new machine that will automate part of the manufacturing process. Currently, you are working with the project team to decompose identified deliverables into smaller components of work. What Knowledge Area does this activity belongs to?
Project Scope Management
Ashley is a principal project manager working for a global tour company headquartered in Ireland. Recently, Ashley was formally tasked with leading the development of a new tour that would take customers across ten countries in ten days within South America. While grabbing a coffee at the office café, a colleague from the marketing department approaches Ashley, noting that she was excited to be joining her as the marketing lead for the project. Ashley was unaware of any pre-assignments. Where can Ashley look to validate whether her colleague was pre-assigned to the project?
Project charter
You're helping Laura, a new project manager in your organization. Laura wants to know why anyone can't just launch a project. She has a question as to what document in the organization authorizes a project to exist. What document does your organization use to formally authorize projects?
Project charter
Your organization wants to start a new project. The study shows that the new project will save organization approximately $200,000 per year. Now it is required to move forward with the project. Which of the following documents will define the project justification?
Project charter
You're going to be the manager of a project for your organization. Your project will exist in a different country although you'll still be representing your organization. Who will approve the project charter in this instance?
Project initiator
Who is responsible for performing and managing project integration when using an Agile project management approach?
Project manager
You are a project manager who is managing a project for a client. The project you are managing will have phased deliverables throughout the project. Stakeholders are required to complete scope validation at the end of each phase so that the project can move forward. Your payment requests will also be attached to the approval of each phase so it is important for you on several levels that the stakeholders participate in scope validation as soon as they are requested to. You have documented the process for reviewing the product acceptance criteria with the stakeholders. Which project document details the product acceptance criteria in all the project phases?
Project scope statement
A project manager has assigned an urgent project to their team, whose project charter has already been made. The sponsor of the project wants to finish the project as soon as possible. Who will sign the project charter?
Project sponsor
You have been tasked with writing the project charter for a new project. In this instance, who should sign the project charter?
Project sponsor
Your customer has requested a specific color for the product your project is producing. This is an example of which of the following?
Requirement
All of the following are components of the scope baseline, except for which one?
Requirements log
Which of the following statements is true regarding the Project Management knowledge areas?
They consist of 10 areas that bring together processes that have things in common.
The project manager develops a project management plan to describe how the project will be executed, monitored, controlled, and closed. Which of the following is a valid tool or technique to assist the project manager to assure the success of the project management plan?
meetings
To create the quality management plan, project managers will need the project scope baseline. Which one of the following best describes the scope baseline for quality planning?
project WBS, WBS Dictionary, and project scope statement
Question 29 :Which of these options describe the elements of the Develop Project Management Plan process? Each correct answer represents a complete solution. Choose all that apply.
project charter, outputs from other planning processes, organizational process assets
Which of the following constitute the scope baseline? Each correct answer represents a complete solution. Choose all that apply.
scope statement, wbs, wbs dictionary
Quincy and Michael are two executives of Widgets for Life, a company providing the latest cool lifestyle gadgets. As part of their annual planning process, they sit down to evaluate three projects linked to their department's objectives. They decide to use methods to employ various forms of analysis and comparative approaches to make project decisions to help them choose which project to select. Which of the following methods are they likely to use?
Benefit-cost ratio
Zack and his project team have created a work breakdown structure (WBS) for the upcoming NHG project. In the WBS, every component has been assigned a unique identifier that provides a summation of the costs, schedule, and resource information associated with each component. Where is this information for each WBS component originating from?
Code of accounts Explanation: Code of accounts is any numbering system used to uniquely identify each component of the work breakdown structure (WBS) and is linked to the costs, resources, schedule, and other information about each WBS component.
According to the PMBOK® Guide, all of the following options concerning the benefits management plan are true except for which one?
Commercial databases Explanation: The benefits management plan outlines the benefits of the project (both tangible and intangible), describes a timeline in which the benefits will be realized, and describes the strategic alignment of the benefits. Commercial databases are an example of an internal EEF.
What limits the options of the project team?
Constraints Explanation: Constraints restrict the actions of the project team.
Which of the following statements is true regarding constraints and assumptions?
Constraints restrict the actions of the project team, and assumptions are considered true for planning purposes.
What are the tools and techniques of the Define Scope process?
Data analysis, decision making, interpersonal and team skills, product analysis, and expert judgment
Unanimity, majority, plurality, and autocratic are four examples of which of the following techniques?
Decision-making techniques, which is a tool and technique of the Collect Requirements process Explanation: These four decision-making techniques belong to the Collect Requirements process and are part of the decision-making tool and technique in this process.
Which of the following processes is described in the given statement?"This is the process of developing a detailed description of the project and product."
Define Scope
You have worked with the business analyst, the project sponsor, and several experts that will be on your project to formulate the feasibility of your project. Now, you need to create the project charter. What is the tool and technique you require?
Expert judgment Explanation: Expert judgment is used to create the project charter. This expert judgment, as in the question, can come not only from the stakeholders, but also from the consultants, professional associations, and the project management office if one exists. Tools and techniques used for creating the project charter are expert judgment, data gathering, interpersonal and team skills, and meetings.
The scope management plan describes how many components of the project scope will be defined, developed, monitored, and controlled. Which one of the following components is detailed in the scope management plan?
How the WBS will be maintained and approved
Which of the following is not a major step of decomposition?
Identify resources. Explanation: The steps of decomposition include identify major deliverables, organize and determine the structure, identify lower-level components, assign identification codes, and verify correctness of decomposition.
You are the project manager of a new software development project for a company. You're working with Stephanie, a junior project manager, to develop the project management plan. Stephanie doesn't understand why there are so many project plans as part of the overall project management plan. You explain to Stephanie that the subsidiary plans comprise the overall project management plan. Which statement best describes the project management plan as a whole?
It defines how the project will be executed, monitored, and controlled.
Which of the following is true regarding NPV?
NPV assumes reinvestment at the cost of capital. Explanation: Net present value (NPV) assumes reinvestment is made at the cost of capital.
Which of the following statements is not true regarding EEFs and OPAs?
OPAs are external to the organization. Explanation: OPAs are internal to the organization. EEFs can be internal or external to the organization but they are always outside the control of the project team.
Which environmental factor should you pay close attention to when carrying out the Develop Project Management Plan process?
Organizational structure, culture, and management practices
You are the project manager for Lucky Stars Candies. You've identified the requirements for the project. Where will you document them?
Requirements document
A decision-making technique that is based on the largest block of votes within the group is known as what?
Plurality
You are in the process of translating project objectives into tangible deliverables and requirements. All of the following are techniques used in the product analysis tool and technique of the Define Scope process except which one?
Product configuration and specification analysis Explanation: Product analysis includes techniques such as value engineering, value analysis, systems analysis, systems engineering, product breakdown, and functional analysis.
During an annual planning meeting, a portfolio manager presented three competing projects to a steering committee. The Project A has a payback period of six months and an NPV of 2, the Project B has a payback period of nine months and an NPV of 1, and the Project C has a payback period of five months and an NPV of -0.5. Which project should the steering committee choose, based solely on NPV?
Project A explanation: NPV (net present value) allows you to calculate an accurate value for the project in today's dollars. When evaluating projects using NPV, select projects with the highest NPV. The general rule is if the NPV calculation is greater than 0, accept the project. If the NPV calculation is less than 0, reject the project. In this case, you were asked to choose one project, making the Project A the best choice
Your selection committee is debating between two projects. Project A has a payback period of 18 months. Project B has a cost of $125,000, with expected cash inflows of $50,000 the first year and $25,000 per quarter after that. Which project should you recommend?
Project A, because Project B's payback period is 21 months Explanation: Project B has a payback period of 21 months; $50,000 is received in the first 12 months, with another $75,000 coming in over each of the next three quarters, or nine months.
You're a project manager for Waterways Houseboats, Inc. You've been asked to perform a cost-benefit analysis for two proposed projects. Project A costs $2.4 million, with potential benefits of $12 million and future operating costs of $3 million. Project B costs $2.8 million, with potential benefits of $14 million and future operating costs of $2 million. Which project should you recommend?
Project B, because the potential benefits minus the implementation and future operating costs are greater in value than the same calculation for Project A
You are the project manager for the Late Night Smooth Jazz Club chain, with stores in 12 states. Smooth Jazz is considering opening a new club in Arizona or Nevada. You have derived the following information: Project Arizona: The payback period is 18 months, and the NPV is (250). Project Nevada: The payback period is 24 months, and the NPV is 300.
Project Nevada, because its NPV is a positive number Explanation: Projects with NPV greater than 0 should be given an accept recommendation for the selection committee.
You have been assigned as the project manager for a new project that involves the development of a new interface for your existing time management system. You would like to engage an outside company to do the development work for you and have started working on the legal contract that will engage this company. Which of the following project management Knowledge Areas are you employing while doing so?
Project Procurement Management
The GYG Organization would like to start a new project to create a new product line. They'd like to take a formal approach to project management for this project. What document should they first create for this formal project?
Project charter
You are a project manager for Laredo Pioneer's Traveling Rodeo Show. You're heading up a project to promote a new line of souvenirs to be sold at the shows. You're ready to document the processes you'll use to perform the project as well as define how the project will be executed and controlled and how changes will be monitored and controlled. On which of the following are you working?
Project management plan Explanation: The project management plan describes the processes you'll use to perform the project and describes how the project will be executed, monitored, and controlled and how the work of the project will be executed to meet the objectives.
All of the following are included within the project scope statement except for which option?
Project requirements
You are the project manager for Lucky Stars Candies. Where will you identify the deliverables and requirements and document them?
Project scope statement, an input of the Create WBS process
Ria is the project sponsor of Robert's project. She has requested several changes for the project scope and these changes have, of course, been approved. Robert needs to incorporate the project scope changes into the activity list. Where else should Robert reflect these project changes?
Scope baseline
You are the project manager of a newly formed project to create a new manufacturing facility. You're working with a business analyst to identify, document, and prioritize collaborators' and colleagues' needs for the facility. You will also need to quantify any subjective terms and needs to define the project scope. What is this process called?
Stakeholder analysis
Which of the following are tools and techniques of the Identify Stakeholders process?
Stakeholder analysis, expert judgment, and meetings
You are a project manager working on a new software product your company plans to market to businesses. The project sponsor told you that the project must be completed by September 1. The company plans to demo the new software product at a trade show in late September and, therefore, needs the project completed in time for the trade show. However, the sponsor has also told you that the budget is fixed at $85,000, and it would take an act of Congress to get it increased. You must complete the project within the given time frame and budget. Which of the following is the primary constraint for this project?
Time Explanation: The primary constraint is time. Since the trade show demos depend on project completion and the trade show is in late September, the date cannot be moved. The budget is the secondary constraint in this example.
You are a new project manager assigned for an IT project, after the previous project manager left the company. You are looking at the project WBS, to understand the various deliverables. However, some of the pieces are not clear and you want to find out what needs to be done as part of that package. Which of the following would be your best source for getting this information?
WBS Dictionary
You are the project manager for Insomniacs International. Since you don't sleep much, you get a lot of project work done. You're considering recommending a project that costs $575,000; expected inflows are $25,000 per quarter for the first two years and then $75,000 per quarter thereafter. What is the payback period?
39 months Explanation: Year 1 and 2 inflows are each $100,000 for a total of $200,000. Year 3 inflows are an additional $300,000. Add one more quarter to this total, and the $575,000 is reached in three years and three months, or 39 months.
You have been assigned as the project manager for a new project that involves deployment of a new software application for all your users. The Software application is being developed specifically for your organization by a third-party company. Which of the following tools or techniques could be used to collect requirements for your project?
Affinity diagram
What are the inputs to the Develop Project Charter process?
Agreements, business documents, EEFs, and OPAs Explanation: Develop Project Charter has four inputs, and they are business documents, agreements, enterprise environmental factors, and organizational process assets.
Lewis is a marketing associate reporting to Antwon, the company's director of marketing and you are the project manager. Lewis pulls you aside to get your opinion about the latest project that he claims were his idea. He expresses frustration that Antwon was named sponsor of the project versus himself. Based on the scenario presented, who is the correct project sponsor?
Antwon
You are the project manager for your organization and you're meeting with the business analyst, the project customer, and several subject matter experts to explore the feasibility of a new product a proposed project would create. The point of the meeting is to determine the cost-benefits of creating a new product and the depth of feasibility based on the requirements and information the business analyst has created. What document would you review at this meeting to determine the market demand and the technology this proposed project centers on?
Business case
Which of the following is an output of the Identify Stakeholders process?
Change requests Explanation: The Identify Stakeholders process identifies all people or organizations impacted by the project. It also documents relevant information regarding their interests, involvement, and impact on project success. Stakeholder register, change requests, project management plan updates, and project documents updates are outputs of this process.
Which of the following project management terms is described in the statement given below?
Code of accounts
Which of the following statements about decomposition is not true?
Decomposition involves structuring and organizing the WBS so that deliverables are always listed at the highest level. Explanation: Decomposition subdivides the major deliverables into smaller components. It is a tool and technique of the Create WBS process and is used to create a WBS. It decomposes the WBS components into lower-level components. Level two components might be deliverables, phases, subprojects, or some combination.
During a project kick-off meeting, the project manager reviews the project management plan with the project team, signaling the start of execution activities. What is the significance of the project management plan?
It defines how the project is executed, monitored and controlled, and closed.
You have been assigned as a project manager on a research and development project for a new dental procedure. You're working in the Project Scope Management knowledge area. What is the purpose of the scope management plan?
It describes how project scope will be developed and how changes will be managed.
Which of the following is not true regarding the purpose of a business case?
It describes how the benefits of the project will be measured and obtained. Explanation: The purpose of the business case is to understand the business need for the project and determine whether the investment in the project is worthwhile. This may include analysis using benefit measurement methods. The benefits, how they're measured, and how they're obtained are contained in the benefits management plan.
Sally and Joe are two project managers working in the corporate offices of a popular fast food franchise. They are both studying for their PMP® certification and they have a spirited debate over who is responsible for managing and performing project integration. Sally claims it is the project sponsor, while Joe adamantly insists it is the project manager. Who is correct?
Joe is correct. The project manager is responsible for managing and performing activities relating to Project Integration Management. The project manager also makes choices about how to effectively use resources and how to coordinate the work of the project on a continuous basis.
You've been hired as a manager for the adjustments department of a nationwide bank based in your city. The adjustments department is responsible for making corrections to customer accounts. This is a large department, with several smaller sections that deal with specific accounts, such as personal checking or commercial checking. You've received your first set of management reports and can't make heads or tails of the information. Each section appears to use a different methodology to audit their work and record the data for the management report. You request that a project manager from the PMO come down and get started right away on a project to streamline this process and make the data and reports consistent. This project came about as a result of which of the following?
Organizational need Explanation: This came about because of an organizational need. Staff members were spending unproductive hours producing information for the management report that wasn't consistent or meaningful.
You are in the process of analyzing and visually representing your stakeholders. All of the following are true regarding these tools and techniques except for which one?
The salience model is useful for displaying stakeholder analysis for small projects or straightforward stakeholder interactions.
Question 11 :You are the project manager for the Late Night Smooth Jazz Club chain, with stores in 12 states. Smooth Jazz is considering opening a new club in Kansas City or Spokane. You have derived the following information: Project Kansas City: The payback period is 27 months, and the IRR is 6 percent. Project Spokane: The payback period is 25 months, and the IRR is 5 percent.
Project Kansas City, because the IRR is the highest Explanation: Projects with the highest IRR value are favored over projects with lower IRR values.
You are the project manager for Fun Days Vacation Resorts. Your new project assignment is to head up the Fun Days resort opening in Austin, Texas. You are estimating the duration of the project management plan activities, devising the project schedule, and monitoring and controlling deviations from the schedule. Which of the Project Management Knowledge Areas are you working in?
Project Schedule Management Explanation: Project Schedule Management involves the following processes: Plan Schedule Management, Define Activities, Sequence Activities, Estimate Activity Durations, Develop Schedule, and Control Schedule.
You are the project manager for your organization and are working with the project stakeholders and the business analyst to define all of the deliverables the project is to create. The stakeholders would like the answer of adding more deliverables later in the project and keeping the requirements somewhat open for changes. You explain to the business analyst that you need a set of requirements that define exactly what needs to be delivered to the project. What document are you trying to create in this early stage of the project?
Project scope statement Explanation: The project scope statement is a document that defines the project scope and all of the work that the project is to complete to satisfy the project requirements. It is a narrative description of a project scope that includes major deliverables, project assumptions, project constraints, and a description of work
An organization wants to develop a township on the outskirts of a city. The project will take nearly three years to be completed. The management wants to start the project as soon as possible. All other formalities have already been completed and now the company wants the project manager to finalize the project. Which of the following documents will the management create to provide authority to the project manager?
Project charter
Which of the following documents authorizes the project manager to work on the project?
Project charter
What are the inputs of the develop project management plan process?
Project charter, output from other processes, enterprise environmental factors, organizational process assets
Judy works for the You Name It! gaming company, which specializes in games for young adults. As part of her latest project, Judy is working with a team to develop a game using virtual reality technology. To date, she has collected requirements and is now taking the team through a working session to identify the deliverables and acceptance criteria. Where will Judy document the results of the working session?
Project scope statement
You are the project manager for your organization. You have been assigned a new project to create a web-based software that will allow your customers to log in to a secured site to check on their orders, receive status updates, and communicate with your company. Your functional manager has asked you to start writing the project charter for the project. Who should sign the project charter?
Project sponsor Explanation: The project charter should be signed and authorized by the project sponsor or the project initiator in the organization. This is usually an individual with the authority over the resources to be utilized in the project. They have the power and authority to make decisions and settle disputes or conflicts regarding the project
What are the needs and demands that lead to project creation?
The reasons due to which projects come about include competitive forces, political changes, new technology, stakeholder demands, business process improvements, technological advance, and material issues
You are a project manager for Zippy Tees. Your selection committee has just chosen a project you recommended for implementation. Your project is to manufacture a line of miniature stuffed bears that will be attached to your company's trendy T-shirts. The bears will be wearing the same T-shirt design as the shirt to which they're attached. Your project sponsor thinks you've impressed the big boss and wants you to skip to the manufacturing process right away. What is your response?
Require that a project charter be written and signed off on by all stakeholders before proceeding. Explanation: The project should be kicked off with a project charter that authorizes the project to begin, assigns the project manager, and describes the project objectives and purpose for the project. Doing so ensures that everyone is working with the same purpose in mind.
Janet is the project manager for her organization. As part of the enterprise environmental factors, she is required to create a chart for all of the project requirements. Each requirement must be traced from its name, through the project, the actual deliverable that satisfies the requirement for the project stakeholders. What type of chart is Janet required to create?
Requirements traceability matrix
You are a project manager for an agricultural supply company. You have interviewed stakeholders and gathered requirements. Which of the following is true regarding the process to which this question refers?
The requirements traceability matrix ties requirements to project objectives, business needs, WBS deliverables, product design, test strategies, and high-level requirements and traces them through to project completion.
Your company, Kick That Ball Sports, has appointed you as project manager for its new Cricket product line introduction. This is a national effort, and all the retail stores across the country need to have the new products on the shelves before the media advertising blitz begins. The product line involves three new products, two of which will be introduced together and a third one that will follow within two years. You are ready to create the WBS. All of the following are true except for which one?
The WBS may be structured using each product as a level one entry. Explanation: You could use each product as a level one entry on the WBS but you may choose to construct the WBS differently. Option C is incorrect because rolling wave planning is the process of fully elaborating near-term WBS work packages and expanding others, like the third product in this question, at a later time when all information is known.
You are a project manager for an agricultural supply company. You have interviewed stakeholders and gathered requirements. Which of the following is true regarding the process to which this question refers?
The requirements traceability matrix ties requirements to project objectives, business needs, WBS deliverables, product design, test strategies, and high-level requirements and traces them through to project completion Explanation: The requirements traceability matrix links requirements to their origin and traces them throughout the project. Option A describes the requirements management plan, not the requirements document. Option B is partially true with the exception of the first statement. Requirements documents do not have to be formal or complex. Option C refers to the project scope statement, not the requirements.
You are a project manager for a documentary film company. In light of a recent regional tragedy, the company president wants to produce a new documentary on the efforts of the heroic rescue teams to air as soon as possible. She's looking to you to make this documentary the best that has ever been produced in the history of this company. She guarantees you free rein to use whatever resources you need to get this project done quickly. However, the best photographer in the company is currently working on another assignment. Which of the following is true?
The primary constraint is quality because the president wants this to be the best film ever produced by this company. She's given you free rein to use whatever resources are needed to get the job done. Explanation: The primary constraint is quality. If you made the assumption as stated in options A, B, and C, you assumed incorrectly. Clarify these assumptions with your stakeholders and project sponsors.
Which of the following is true regarding the project charter?
The project charter should be issued by the project sponsor.
Which of the following is true regarding the project charter?
The project charter should be issued by the project sponsor. Explanation: According to the PMBOK® Guide, the project charter should be issued by the project sponsor or the project initiator.
You are a project manager for Giraffe Enterprises. You've recently taken over for a project manager who lied about his PMI® certification and was subsequently fired. Unfortunately, he did a poor job of defining the scope. Which of the following could happen if you don't correct this?
The project costs could increase, there might be rework, and schedule delays might result. Explanation: The poor scope definition might lead to cost increases, rework, schedule delays, and poor morale.
Which of the following is true regarding the project scope statement?
The project scope statement further elaborates the details from the Initiating and Planning processes and serves as a basis for future project decisions. Explanation: The project scope statement further elaborates the project deliverables and documents the product scope description, acceptance criteria, and project exclusions. It serves as a basis for future project decisions
You work for a large manufacturing plant. Your firm is thinking of initiating a new project to release an overseas product line. This is the company's first experience in the overseas market, and it wants to make a big splash with the introduction of this product. The project entails producing your product in a concentrated formula and packaging it in smaller containers than the U.S. product uses. A new machine is needed in order to mix the first set of ingredients in the concentrated formula. Which of the following actions is the next best step the project sponsor should take?
The project sponsor should document the business need for the project and recommend that a feasibility study be performed to determine the viability of the project. Explanation: The most correct answer is to perform a feasibility study. Because this project is taking the company into a new, unknown market, there's lots of potential for error and failure. A feasibility study would help the stakeholders determine whether the project is viable and cost effective and whether it has a high potential for success.
You are in the process of analyzing and visually representing your stakeholders. All of the following are true regarding these tools and techniques except for which one?
The salience model is useful for displaying stakeholder analysis for small projects or straightforward stakeholder interactions. Explanation: Salience models are displayed as Venn diagrams but are more useful for large, complex projects. The power/interest grid is useful for smaller projects with uncomplicated stakeholder interactions.
Which of the following constitute the scope baseline?
The scope baseline is used for predictive life cycle approaches. It is an element of the project management plan. The contents of the scope baseline include the following: Project scope statement: Includes the product scope description and the project deliverables, and defines the product user acceptance criteria WBS: Defines each deliverable and the decomposition of the deliverables into work packages WBS dictionary: Contains the detailed description of work and technical documentation for each WBS element
You are a project manager responsible for the construction of a new office complex. You are taking over for a project manager who recently left the company. The prior project manager completed the project scope statement and scope management plan for this project. In your interviews with some key team members, you conclude which of the following?
The scope management plan describes how project scope will be managed and controlled and how the WBS will be created and defined. They know that product scope is measured against the product requirements and that the scope management plan is based on the approved project scope. Explanation: The scope management plan describes how project scope will be defined and validated, how the scope statement will be developed, how the WBS will be created and defined, and how project scope will be managed and controlled. Project scope is measured against the project management plan, whereas product scope is measured against the product requirements. It is based on the approved project scope
You are a project manager working on a large, complex project. You've constructed the WBS for this project, and all of the work package levels are subprojects of this project. You've requested that the subproject managers report to you in three weeks with their individual WBSs constructed. Which statement is not true regarding your WBS?
The work package level is decomposed to create the activity list. Explanation: The work package level is the lowest level in the WBS and facilitates resource assignment and cost and time estimates. In this question, the work package level contains four subprojects, so it would not be used to create the activity list. The activity list will be created from the work package level for each WBS created for each subproject.
You are a project manager for Laredo Pioneer's Traveling Rodeo Show. You're heading up a project to promote a new line of souvenirs to be sold at the shows. You are getting ready to write the project management plan and know you need to consider elements such as policies, rules, systems, relationships, and norms in the organization. Which of the following is not true?
These describe the authority level of workers, fair payment practices, communication channels, and the like. Explanation: The policies, rules, systems, relationships, and norms are part of the organizational governance framework, which is part of the EEF input for the Develop Project Management Plan process. Management elements include authority levels of works, disciplinary actions, chain of command, fair treatment, fair payment, communication channels, and safety of staff members
Which of the following statements is true regarding brainstorming and lateral thinking?
They are types of alternatives analysis techniques, which are a tool and technique of the Define Scope process. Explanation: Alternatives analysis is a part of the data analysis tool and technique of the Define Scope process that includes brainstorming and lateral thinking techniques.
Which of the following describes project approval requirements?
This describes what constitutes project success and how it will be measured.
Which of the following describes project approval requirements?
This describes what constitutes project success and how it will be measured. Explanation: The project manager does not dictate what the approval requirements are. The stakeholders and sponsor will come to an agreement on the success criteria, and the project manager may or may not have a voice in the decision. Option B is incorrect because it describes the project exit criteria. Option C is incorrect because it is not true. Option D is incorrect because it is partially true.
As part of your PMP examination you should be able to recognize the outputs of the project management processes. One of the primary processes is to define the project scope and there are four outputs of the process. Which one of the following is not an output of the process?
Work breakdown structure
You are the project manager for your organization and are planning the project work with your project team. You are currently breaking down the project scope into work packages to determine an accurate time and cost estimate. What document are you and the project team creating?
Work breakdown structure
Your company provides answering services for several major catalog retailers. The number of calls coming into the service center per month has continued to increase over the past 18 months. The phone system is approaching the maximum load limits and needs to be upgraded. You've been assigned to head up the upgrade project. Based on the company's experience with the vendor who worked on the last phone upgrade project, you're confident they'll be able to assist you with this project as well. Which of the following is true?
You've made an assumption about vendor availability and expertise. The project came about because of a business need. Explanation: The project came about because of a business need. The phones have to be answered because that's the core business. Upgrading the system to handle more volume is a business need. An assumption has been made regarding vendor availability. Always validate your assumptions.
Your project depends on a key deliverable from a vendor you've used several times before with great success. You're counting on the delivery to arrive on June 1. This is an example of a/an
assumption Explanation: This is an example of an assumption. You've used this vendor before and haven't had any problems. You're assuming there will be no problems with this delivery based on your past experience.
Which of these options describe the elements of the Develop Project Management Plan process?
project charter, Outputs from other planning processes, Organizational process assets