PM set 3

focus on the most significant problems

A Pareto diagram helps the project team to:

SWOT Analysis She is referring to SWOT analysis. It is a technique used to understand strengths, weaknesses, opportunities, and threats. Strengths, weaknesses, opportunities, and threats (SWOT) analysis identifies these qualities for a particular organization. It is mainly used during risk identification. The following graphic shows the main questions that are answered while performing a SWOT analysis:

A project manager is given a tool that answers questions such as "How well are we currently doing with respect to business strategy?" and "How can we perform better and increase profitability?" To which of the following tools is she referring?

Specific dates when meetings are to be scheduled

Darren Thomas, a project manager, is creating a high-level communication plan for a waterworks project. Which of these elements should his communication plan NOT include?

It helps all stakeholders with informed decision-making and problem resolution.

Darren Thomas, a project manager, is creating a project status report. Which of the following statements does NOT accurately summarize the objectives of this document?

Avoid missed deadlines.

David Hall created a strict project schedule for a complex software project. The client must meet a market date with the product, and has been requesting a tight schedule from the beginning of the project. What is David's MOST important concern for the project?

Project schedule

David Hall, a project manager, needs to create a document that describes when the project is due for delivery, the tasks that constitute each deliverable, and the resources required to complete each deliverable on time. Which of the following documents is David creating?

Project charter

Ellen, a project manager, has been working on a document for a new project. The document includes the project's purpose, a stakeholder list, a summary of high-level risks, a summary project schedule, a budget, a list of requirements for project approval, and a description of the project manager's level of authority. Which document is Ellen creating?

Details of the total budget of the project Because this is a negatively worded question, the correct answer is the details of the total budget of the project. The project charter does not include budget details. It only includes a summary budget. A detailed budget is created during project planning and documented as part of the cost management plan and cost baseline.

Eva, project manager at GeoTrek Inc., is working on the project charter for a new project. Which of the following elements should NOT be included in the document?

when soliciting bids from new vendors

For which of the following instances is request for quote (RFQ) NOT used?

George is working on a status report. A status report is a formalized report on project progress against the project plan. Its purpose is to effectively and efficiently communicate the project status, including positive and negative information, to project stakeholders at regular intervals.

George Thomas, a project manager, is working on a document that will be sent to key stakeholders to share the progress of the project. Which of the following documents is George creating?

for a simple project A Time and Materials (T&M) contract would be most appropriate for a simple project. T&M contracts are contracts in which the seller charges the buyer for work, usually per hour or item, and the buyer reimburses the seller for required materials. Because they are open-ended, they are usually used only for simple projects that have small monetary values or timeframes.

In which situation would a T&M contract be most appropriate?

Create a scope statement.

Jane, a project manager, has been assigned a small project that needs to be completed within two months. The project charter has been approved. Which of the following options should Jane perform next?

Issues log

Jill Moore, a project manager, is creating a document that lists and tracks all pending and unresolved problems the project is currently facing. Which of the following project documents is Jill creating?

Risk management plan and budget Project scope definition and executive summary Communication management plan

Joan is creating the project management plan for a new website development project. Which of the following elements must she include within the document? (Choose three.)

Project management plan

Joe Hall, a project manager, is working on a document for a new project. The document will state how the project work is to be executed, monitored, and controlled. Which document is Joe creating?

Because this is a negatively worded question, the correct option is that it helps gold plate the project. Gold plating is the act of giving the customer more than they asked for. Gold plating is strongly discouraged in project management. Having an official project scope statement helps prevent gold plating, because gold plating involves more work than required to achieve the scope of the project. It helps gold plate the project.

Peter Williams, a project manager, created a scope statement for a new project he has been aligned with. How will the scope statement NOT help with successful completion of the project?

Pareto diagrams

Rank ordering of defects should be used to guide corrective action. This is the underlying principle behind:

The supplier perspective

The balanced scorecard suggests that an organization can be viewed from four perspectives and develop metrics, collect data, and analyze it with respect to each of these perspectives. Which of the following options is NOT one of the four perspectives?

The project manager should use the milestone chart to show the status of the project to the senior management. A milestone chart shows only major events and only shows the completion of activities. It is best suited to report progress to senior management. milestone chart

The project being managed by one of your peers is not progressing well. This is the first time that this person has been in the project manager role. In one of the senior management review meetings, this project manager is asked to show the status of the project. What should this project manager use to show the status to senior management?

Meeting minutes

The project manager had asked Ethan to create a document that will inform the project team which topics were discussed at a meeting. Ethan attended the meeting and took notes. Which of the following documents will Ethan create?

Pareto diagram

The project under development has several errors. You want to categorize the errors and find out the frequency of each error to help you to identify the causes of the errors and avoid them. What would help in that process?

Service Level Agreement

The project you are currently managing requires that your team have high-speed Internet access from a leased location in New York. Which of the following should you obtain from the selected provider?

Gantt chart Gantt charts are commonly used in project management to track project activities against time. A Gantt chart represents schedule information where activities are listed in the vertical axis and dates are shown on the horizontal axis. It displays activity durations. Sometimes it may also display team members and milestones, but this tool does not document each individual's responsibility.

Which of the following charts is used to track project activities against time?

A warranty records quality assurance about the type of product or service that a manufacturer has produced, and the terms and conditions under which a repair or exchange would be acceptable.

Which of the following documents includes quality assurance information about the manufacturer's product or service, and outlines the terms and conditions under which a repair or exchange would be acceptable?

Action item

Which of the following documents is NOT a mutually binding agreement?

NDA

Which of the following documents is a legal contract between two or more parties, signifying a confidential relationship, and stating that information shared cannot be revealed to the general public?

MOU A memorandum of understanding (MOU) is an agreement between two or more parties that outlines the terms and details of proposed business arrangement, including each parties' requirements and responsibilities. An MOU is very similar to a letter of intent (LOI). However, in the United States, neither document is considered legally binding.

Which of the following documents is an agreement between two or more parties that outlines the terms and details of a proposed business arrangement, including each parties' requirements and responsibilities toward the other?

RFP RFQ A request for proposal (RFP) is issued by a business or an organization to request vendor bids for products, solutions, and services. A request for quote (RFQ) is a procurement document issued by an organization to request pricing from vendors who already have an established history with the organization. The RFQ seeks a price quote to complete a stated project or task. Both RFPs and RFQs end in contracts or an agreement for procurement.

Which of the following documents is issued by a business or an organization to request vendor bids for products, solutions, and services? (Choose all that apply.)

C&D letter

Which of the following documents is issued by a judicial authority to stop an ongoing activity?

FP-EPA A Fixed Price with Economic Price Adjustment (FP-EPA) contract is a long-term contract that sets a total price for the procured product. However, it allows the price to fluctuate based on market or economic conditions.

Which of the following types of long-term contract sets a total price for the procured product, but allows the price to fluctuate based on market conditions?

CPI is not a valid contract type. Cost Performance Index (CPI) is an earned value calculation that provides an indicator to the cost performance of a project. The CPI is calculated by dividing the earned value (EV) by the actual cost (AC). A CPI value greater than one indicates that the project is under budget.

Which option is NOT a contract type?

Gantt chart

Which reporting tool uses horizontal bars to show the activity durations for a project?

Process diagram

Which tool provides an overall summary of the basic flow and interactions among business operations and specific stakeholders?

Gantt chart You would use a Gantt chart to monitor and control your project schedule. Gantt charts are bar charts showing start and end dates for all activities in a project. It is a standard project management software tool and is used to track and monitor the project schedule.

Which tool would you use to monitor and control your project schedule?

the project schedule

Which would you be MOST concerned with monitoring if you were the buyer in a Time and Materials contract?

Cost Plus Fixed Fee With a Cost Plus Fixed Fee contract, the buyer bears most of the cost risk. In a Cost Plus Fixed Fee (CPFF) contract, the buyer reimburses the seller for his costs and pays an additional flat fee to the seller. The seller has very little, if any, cost risk because he is being reimbursed for his costs on the project. The buyer bears most, if not all, of the cost risk. With this type of contract, the seller has no direct motivation for keeping costs low, thereby increasing the cost risk for the buyer.

With which contract types does the buyer bear most of the cost risk?

schedule

You are a project manager of a large infrastructure development project. This project has experienced some scope change, which has been approved by the stakeholders, and the WBS has been updated. As a result of this, what document will require revision?

histogram

You are managing a project for a local children's museum. As part of the Perform Quality Assurance process, you are given a chart that shows the attendance statistics grouped by age since the project began, as shown in the following exhibit: Which type of tool have you been given?

flowchart

You are managing a project for an electronics wholesaler. During the Perform Quality Assurance process, you examine the following exhibit: You are managing a project for an electronics wholesaler. During the Perform Quality Assurance process, you examine the following exhibit:

Project scheduling software

You are managing a project that involves team members that are distributed geographically. You want to provide a tool that all the team members can use to check up-to-date project planning and scheduling. What is the BEST tool for this?

causes of problems

What is arranged in descending order of significance in a Pareto diagram?

scatter diagram

What is used for trend analysis as a quality control tool?

Gantt chart

What visual aid would help management view the overall schedule of a project?

fishbone diagram

When performing an analysis of the major causes for a problem, which tool allows you to identify the sub-causes of the problem?

Ishikawa diagram

When you need to identify and explore the possible causes so that a problem or error does not arise in the future, you will use:

Gantt chart A Gantt chart is used to depict the tasks of a project, start and finish date, resource details, and milestone activities. A Gantt chart is also called a timeline chart.

Which chart is used for scheduling projects?

SOW

Which document must provide a clear, concise, and complete overview of the services required and the business requirements for the job so that third-party vendors can clearly understand what is expected of the project?

resource histogram

Which element shows the cumulative number of resources used on a particular day or week to complete all the tasks for that day or week?

Pareto chart

Which of the following charts can be used to understand the most critical problems in a project and to identify the areas that need more effort?

Histogram

Which of the following charts is a type of bar chart that shows the distribution of variables and their frequency, and is used during quality control?

Scatter chart

Which of the following charts is drawn with two variables, wherein the first variable is usually independent and the second variable is dependent on the first variable?

Dashboard

Allison Patel, a project manager, has been working on a project that has stayed within schedule and budget despite the many issues that have arisen. However, resources have been working overtime to ensure that the product is error-free. Which document will most likely provide Allison with the total hours of overtime put in by the team?

You are under a T&M contract. A Time and Materials (T&M) contract is a contract in which the seller charges the buyer for work, usually per hour or item, and the buyer reimburses the seller for required materials.

As a part of implementing a new inventory process, you have procured a contractor to install some shelving in your warehouse. The contractor is charging you $40 per hour, plus the cost of the shelving and other supplies. Which type of contract are you under?

tracking Gantt chart

As a project manager, you are regularly reviewing the project status. You find that the project is behind schedule and there are variances in the budget. Which of the following will you use to communicate the project status to enable the stakeholders to identify the variations between the actual and planned schedule and budget?

run chart

As part of the Perform Quality Assurance process, you need to examine how many errors have been identified in the project and how many have been corrected. You plot this information on a line graph. Which Perform Quality Assurance output have you created?

Project deliverables Project assumptions Project constraints Johanna should include project assumptions, project constraints, and project deliverables in the project scope statement. An ideal project scope statement outlines the project's deliverables and identifies the constraints, assumptions, and key success factors. A well-written scope statement clearly defines the boundaries of a project. It also identifies the project deliverables and acceptance criteria. It is used to develop the work breakdown structure (WBS), which gives a detailed breakdown of all the project work that is required.

Johanna is creating the scope statement for a major architectural project. Which of the following information is Johanna likely to include in the project scope statement? (Choose three.)

Action items are the same as tasks.

John Taylor is creating a list of action items with input from his team, who are working on a complicated software development project. Which of the following points are NOT correct regarding the list of action items?

Project status meeting agenda

Lisa Li, a project manager, is working on a document that provides a quick-reference list of topics to be discussed at the project status meeting. Which of the following documents is Lisa creating?

Defines the type of projects the company is equipped to undertake

Mark Miller replaced Colin Harris to become the new project manager. As part of his on-boarding, Mark asks to view the organizational chart of the company. Which of the following options does NOT describe the use of an organizational chart?

Dashboard

Metroil Inc. has set up a tool for stakeholders and departments to view key performance indicators specific to individual projects including their overall performance, progress, and concerns. Which tool was provided?

project charter

The Director of Human Resources for a company wants a system that will allow human resource forms to be completed over the Internet. You have developed a project concept definition document outlining your understanding of what is being requested and a project requirements document that outlines what the deliverables should look like. The Director has signed both documents signifying that he agrees.

LOI Letters of intent (LOI) are sent from one company to another to summarize their willingness to enter into a proposed deal or partnership. The main purpose of a LOI, which is also referred to as a memorandum of understanding or MOU, is to facilitate the start of a business deal or project between involved parties. The LOI identifies key business and contractual understandings that will form the basis of the final contract, which will be issued separately from the LOI.

Which of the following documents is sent from one company to another to summarize a proposed deal and announce the organizations' willingness to work together, and is usually issued prior to establishing a formal contract?

Statement of work

Which of the following documents is written for vendors and external contributors and includes the procurement's specifications?

A request for information (RFI) signifies a formal process to collect facts or information about a product or service from its suppliers and manufacturers. It would supply the least amount of detail about the specific project for which procurement is being sought. A RFI seeks to establish a vendor's capabilities and level of experience, not to explain the specific project requirements or deliverables.

Which of the following documents would provide the LEAST amount of specific detail regarding a project?

The total budget of the project

Which of the following elements would NOT be included in a statement of work (SOW) written for a vendor that will be providing human resources for a project?

If the project work has any non-random pattern over a period of time If the project work has any changes Trends in the project work

Which of the following information can be provided by a run chart? (Choose three.)

The productivity of resources

Which of the following is NOT shown in Gantt charts?

SWOT analysis

Which of the following is a basic analytical framework used to assess what an organization can or cannot accomplish, its potential opportunities, and potential hazards?

Balanced scorecard

Which of the following is a performance metric used in strategic management to identify internal functions and areas of improvement?

Contract

Which of the following is a written, private agreement between two parties, is legally binding, and can be enforced by a judge?

A RACI matrix is a useful analytical tool that can be used to clarify each person's level of responsibility for each project task. A RACI matrix is also referred to as a responsibility assignment matrix. In the RACI matrix, the project tasks are listed in the left-hand column. Then each team member is listed at the top of the remaining columns. Team members are then assigned a designation of responsible (R), accountable (A), consulted (C), or informed (I) for each task in which they participate. By referring to this chart, team members can determine who is responsible, accountable, consulted, or informed for a task.

Which of the following is an analytical tool that can clarify who is doing what in regards to individual project tasks?

Project management dashboard

Which of the following is an item that displays KPIs pertaining to specific projects, metrics for a project's overall performance and progress, and critical issues, and can be customized to fit the needs of the project?

Improved relations with suppliers

Which of the following options is NOT a potential threat to a project?

Competition

Which of the following options is NOT a valid reason to issue a cease and desist letter?

Key performance parameters (KPPs) refer to key deliverable capabilities that must be met for a project to meet its operational goals. KPPs are usually used to determine key performance indicators (KPIs). Key performance indicators (KPIs) are benchmarks that have been identified for measuring deliverable quality or other project performance standards. The main difference between the two is that KPPs are raw measurements, while KPIs feed the KPP measurements into some calculation that will make sense to the business.

Which of the following options refers to key deliverable capabilities that must be met for a project to meet its operational goals?

A PO is also referred to as an invoice

Which of the following statements about a purchase order (PO) is FALSE?

It identifies the potential cause of problems and the root cause affecting the performance of the project. It is also called a cause-and-effect diagram. It is also called an Ishikawa diagram.

Which of the following statements are true about a fishbone diagram? (Choose three.)

An RFP includes project specifications. An RFP describes tasks to be performed by the winning bidder.

Which of the following statements are true about a request for proposal (RFP)? (Choose two.)

An RFP or RFQ usually precedes an RFI. Because this is a negatively worded question, the correct option is an RFP or RFQ usually precedes an RFI. Actually, a request for information (RFI) usually precedes a request for proposal (RFP) or request for quote (RFQ).

Which of the following statements is FALSE about a request for information (RFI)?

The RACI matrix helps with completion of a project before schedule.

Which of the following statements is FALSE about the Responsible, Accountable, Consulted, Informed (RACI) matrix?

Used to track productivity of employees and areas of improvement

Which of the following statements is FALSE regarding the uses of a scatter chart?

SLAs cannot protect both parties in the agreement. Because this is a negatively worded question, the correct option is that SLAs cannot protect both parties in the agreement. SLAs, in fact, do protect both parties in the agreement

Which of the following statements is NOT true about service level agreements (SLA)?

MOUs are more formal than handshake agreements. MOUs include fewer details and complexities than contracts.

Which of the following statements is true regarding a memorandum of understanding (MOU)? (Choose two.)

Balanced scorecard

Which of the following terms describes performance targets and results that reflect organizational performance in meeting its objectives relating to its stakeholders?

FPIF You are under a FPIF contract. A Fixed Price Incentive Fee (FPIF) contract is a contract in which the seller charges the buyer a fixed fee but additionally has the ability to receive incentives for meeting specified criteria.

You have awarded a contract to an outside consulting agency. The consultants will undertake a three-year project to implement new equipment and processes in your assembly department to expedite the flow of work through your facility. According to the contract, the vendor has agreed to provide the needed work for a fee of $1.2 million dollars. The contract also stipulates that if the project is completed earlier than planned, the vendor will receive an additional $200,000. Which type of contract are you under?

CPFF You are under a CPFF contract. A Cost Plus Fixed Fee (CPFF) contract is a contract in which the seller is reimbursed for all costs and an additional flat fee is charged to the buyer.

You have been awarded a contract to provide a new product to your customer. Your customer plans to compensate you for all your costs on the project. In addition, you will assess a $200,000 fee to the customer. Which type of contract are you under?

project management plan

You need to ensure that the final project meets the customer requirements and project objectives. Which document should you review?

project charter

You need to formally start a project. Which document, when approved, provides this?

Include a late penalty in the contract. Include a bonus incentive in the contract.

You want to ensure a vendor delivers its product on time. What are two reasonable approaches to help ensure that this happens? (Choose two.)

You would be most concerned with scope because you, the seller, are charging the customer a fixed rate, regardless of your actual costs. The costs of any delays in the project would affect your profit on the project. With this type of contract, the seller should monitor and manage the scope of the project closely to avoid additional costs.

Your company has just signed a Fixed Price contract with a customer. Under the terms of the contract, your company will be developing and delivering a new software module. In terms of the contract type, which would you be MOST concerned with?

You should create a request for proposal (RFP). This document solicits outside companies to provide proposals for any procurement needed in a project.

Your company is soliciting outside companies to provide proposals for a piece of equipment needed for your project. Which document should you create?

the IT consulting firm

Your organization has recently signed a Fixed Price contract with an IT consulting firm. According to the contract, the firm will be performing an extensive data conversion of some legacy mainframe data. With this contract, which party has the greatest risk?

Vendor knowledge base As this is a negatively worded question, the correct answer is a Vendor knowledge base. This should NOT be used to share project documentation and knowledge. A vendor knowledge base will provide vendor documentation on material resources, such as computers, project management software, or other devices. Access to vendor knowledge bases may require a valid account. The structure of vendor knowledge bases may be chaotic, but the knowledge bases usually include a complex search function to help you find what you need.

Your project includes team members that are geographically dispersed. The team members have requested that a central repository be used to share all project documentation and knowledge. You must design a solution that will meet the needs of the team. Which of the following should you NOT use?