PM exam 1

The financial systems project has a relatively high profile in the organization and has received great support from the sponsor. There are over 230 activities on the project, and a few have remained relatively large due to the nature of the work to be accomplished. One of these larger activities has an estimate to complet (ETC) that is logner than planned. If the project manager wants to look at non-value-added activities that might be causing the delay, the manager should: A. Measure using quality metrics. B. Perfrom a quality audit. C. Complete process analysis. D. Use a Pareto diagram.

C. Complete process analysis. Many people choose to perfrom a quality audit. However, performing a quality audit relates to determining wheter your are using the right processes and whether those processes are effective, rather than improving processes. Discovering non-value activites is part of process analyses. Process analysis follows the steps outlined in the process improvement plan to identify needed improvements. This analysis also examines problems experienced, constraints experienced, and non-value-added activities identified during process operation. Process analysis includes root cause analysis — a specific technique used to identify a problem, discover the underlying causes that lead to it, and develop preventive actions.

All of the following are parts of the Perform Quality Control process EXCEPT: A. Control charts and cause and effect diagrams. B. Pareto diagrams and process maps. C. Cost of quality and checklists. D. Inspection and histograms.

C. Cost of quality and checklists. Cost of quality is only used in the Plan Quality Management process. It involves looking at what the costs of conformance and nonconformance to quality will be on the project and creating and appropriate balance.

The carpeting subcontractor has, without prior approval, installed carpet that is a slightly different pattern from the pattern selected for the project. The difference in cost per square yard saves the buyer approximately US $10,000. Upon learning of the change, the BEST course of action for the project manager is to: A. Document the change in the change control plan. B. Demand that the original carpeting be installed. C. Determine the overall impact on the project. D. Meet with the customer to explain what happened and celebrate the $10,000 windfall.

C. Determine the overall impact on the project. The first thing is always to evaluate the impact of the change on the project. A good thing to do next might be to see what the contract states and then meet with the customer. Demanding installation of the originally specified carpet might be too drastic, and documenting the change really means doing nothing. Your actions in this case might be different than if the carpet was not already installed (p.140).

During what part of the project management process in MOST of a project's budget expended? A. Planning B. Closing C. Executing D. Monitoring and controlling

C. Executing A vast majority of the project's budget is expended during project executing (p.56).

In which process group is the product scope completed? A. Closing B. Monitoring and controlling C. Executing D. Initiating

C. Executing The work of completing the product scope is accomplished in project executing (p.78).

In which process group is the product scope completed? A. Closing B. Monitoring and controlling C. Executing D. Initiating

C. Executing The work of completing the product scope is accomplished in project executing.

You have been appointed manager of a project to convert multiple electronic mail systems at a major financial institution to a singel platform. Your company's approach was not the client's first choice, and your firm was able to offer the lowest cost alternative by using funds provided to your company for a different purpose. After the project is underway, the client specifies a new approach that has never been used before. When the project is approaching the origninally scheduled end date, it becomes clear that the technological approach will have to be signigicantly altered. Although the client has been apprised of developments throughout the project through regular status reports, and the project management plan has been followed, the client demands the project be continued without any increase in cost until all of their requirements are met. Your firm feels that it has no choice but comply wieht the client's demands, although this will result in a substantial loss on the project. What is the MOST important thing that should have been done to avoid this situation? A. Better identification of risks and development of risk mitigation strategies B. Clearer project scope statement C. Formal client acceptance of the project management plan D. Enhanced communications management plan

C. Formal client acceptance of the project management plan Getting acceptance of the project management plan would have meant acceptance of project planning assumptions, project planning decisions regarding alternatives chosen, communication among stakeholders, key management reviews, the baseline for progress measurement and project control.

In which stage of team development are team members more likely to be independent? A. Influencing B. Storming C. Forming D. Adjourning

C. Forming In the storming stage of team development, team members are learning to work together. Influencing is not a stage of team development, it is a leadership style. In the adjourning stage, the team is disbanded, but they still have a relationship. Forming is the first stage of development, when people are brought together as a team. Team members are more likely to be independent in this stage. One of the models used to describe team development is the *Tuckman ladder* (Tuckman, 1965; Tuckman & Jensen, 1977), which includes *five stages of development* that teams may go through. Although it's common for these stages to occur in order, it's not uncommon for a team to get stuck in a particular stage or slip to an earlier stage. Projects with team members who worked together in the past may skip a stage. *Forming.* This phase is where the team meets and learns about the project and their formal roles and responsibilities. Team members tend to be independent and not as open in this phase. *Storming.* During this phase, the team begins to address the project work, technical decisions, and the project management approach. If team members are not collaborative and open to differing ideas and perspectives, the environment can become counterproductive. *Norming.* In the norming phase, team members begin to work together and adjust their work habits and behaviors to support the team. The team learns to trust each other. *Performing* Teams that reach the performing stage function as a well-organized unit. They are interdependent and work through issues smoothly and effectively. *Adjourning* In the adjourning phase, the team completes the work and moves on from the project. This typically occurs when staff is released from the project as deliverables are completed or as part of carrying out the Close Project or Phase process (Section 4.6).

A project manager is trying to complete a software development project, but cannot get enough attention for the project. Resources are focused on completing process-related work and the project manager has little authority to assign resources. What form of organization must the project manager be working in? A. Coordinator B. Expediter C. Functional D. Matrix

C. Functional In a functional organization, the project manager has the least support for the project and has little authority to assign resources. Project expediter and project coordinator are roles in a weak matrix organization.

A project manager wants to more extensively involve stakeholders on the project. The project team is co-located, so face-to-face communication with these stakeholders is usually possible, although not all external stakeholders are available to meet in person. Which of the following would be the BEST way for the project manager to involve the stakehoders more extensively? A. Invite the stakeholders to attend project status meetings. B. Update the stakeholders on the status of all project changes. C. Have the stakeholders periodically review the list of project requirements. D. Send status reports to the stakehodlers.

C. Have the stakeholders periodically review the list of project requirements. It seems like all of these are good ideas, but having the stakeholders review the list of project requirements helps discover errors and changes, and could therfore be considered the best choice.

You are about to call togehter 300 stakeholders from around the country to participate in a week-long planning session for your four-year bio-remedation device research project. The project sponsor stops you and suggests this is a waste of resources since there are many aspects of the later phases you know little about. You reply that: A. It is important to get all the stakeholders together when initiating an effort like this to understand their needs and expectations and do team building activities. B. He is right. You should do as much of the planning yourself as possible, to avoid the time and expense of gathering stakeholders for a meeting. C. He is right. You will use rolling wave planning, inviting only stakeholders for the first two phases. D. You must plan the entire project as best you can before you begin executing.

C. He is right. You will use rolling wave planning, inviting only stakeholders for the first two phases. Rolling wave planning is a form of progressive elaboration, where far-term work is planned at a high level and then planned in more detail as it approaches.

The seller on your project abruptly goes out of business. What is the BEST thing to do? A. File for a portion of the company's assets. B. Terminate the contract. C. Hire a new seller immediately under time and material contract. D. Terminate the project.

C. Hire a new seller immediately under time and material contract. The immediate issue here is to keep the project progressing on schedule, so you first need to replace the seller. Creating a time and material contract is the best choice as it is usually quick to execute, since the contract and scope are brief. Of course, once you have stabilized the project by replacing the seller, you need to formally terminate the contract (p.472).

Reciprocal is another word for which communication method? A. External B. Verbal C. Interactive D. Formal

C. Interactive Reciprocal communication may be formal, verbal, or written, external or internal to the organization is interactive (p.389). Communication methods can be categorized in the following groups: *Interactive Communication*: This method is reciprocal and can involve tow people or many people. One person provides information, others receive it and then respond to the information. Examples of Interavtive communication include conversations, meetings, instant messaging, and conference calls. *Push Communication* This method involves a one-way stream of information. The sender provides the information tot the people who need it but does not expect feedabck on the communication. Examples of push communication are status reports, e-mailed updates, blogs, and company memos. * Pull Communication* Tin this method, the project manager places the information in a central location. The recipients are the responsible for retrieving, or "pulling" the information from that location. This method is used to distribute large documents or to send information to many people.

Which type of organization is BEST for managing complex projects involving cross-disciplinary efforts? A. Functional B. Projectized C. Matrix D. Line

C. Matrix The key word here is "cross-disciplinary." Cross-disciplinary means the project covers more than one department or technical area of expertise. In such a case, a matrix organizatin is needed with representatives from each department or descipline.

Which type of organization is BEST for managing complex projects involving cross-disciplinary efforts? A. Functional B. Line C. Matrix. D. Projectized

C. Matrix. The key word here is "cross-disciplinary". Cross-disciplinary means the project covers more than one department or technical area of expertise. In such a case, a matrix organization is needed with representatives from each department or discipline (p.30)

The cost performance index (CPI) on the project is 1.13, and the benefit cost ratio (BCR) is 1.2. The project scope description was created by the team and stakeholders. Requirements on the project have been changing throughout the project. No matter what the project manager has tried to accomplish in managing the project, which of the following is he MOST likely to face in the future? A. Having to add resources to the project B. Making sure the customer approved the project scope C. Not being able to measure completion of the product of the project. D. Having to cut costs on the project and increase benefits.

C. Not being able to measure completion of the product of the project. There are many pieces of data in this question that are distracters from the real issue. Though it is common to have to cut costs and add resources to a project, nothing in the question should lead you to think these will be required in this situation. Customers do not generally approve the project scope (what you are going to do to their requirements); instead, they approve the product scope (their requirements). Since requirements are used to measure the completion of the product of the project, not having complete requirements will make such measurement impossible.

Close Procurements is different from Close Project or Phase in that Close Procurements: A. Is the only one to involve the customer. B. May be done more than once for each contract. C. Occures before Close Project or Phase. D. Includes the return of property.

C. Occures before Close Project or Phase. The customer may be involved in lessons learned and procurement audits, and would certainly be involved in formal acceptance. Both Close Procurements and Close Project or Phase involve the return of property. Close Procurements is done once for each procurement, at the end of the contract. All procurements are closed before the project is closed (p.507).

Your project team has identified dependencies on six related projects that are providing major deliverables to your project. Some of these projects have a very similar scope and may overlap your deliverables. In light of this, which of the following process should you be MOST concerned about? A. Control Scope B. Validate Scope C. Plan Risk Responses D. Plan communications Management

C. Plan Risk Responses The biggest concern must be the risks others project may cause to yours. It would be better to prevent those problems in the Plan Risk Responses process than to just spend effort controlling scope (p.427).

Which of the following conflict resolution techniques will generate the MOST lasting solution? A. Compromise B. Smoothing C. Problem solving D. Forcing

C. Problem solving Problem solving (also referred to as collaborating) normally takes more time, but it gets buy-in from everyone, generating a more lasting solution (p.362). *Collaborating (Problem Solving):* In this technique, the parties openly discuss differences and try to incorporate multiple viewpoints in order to lead to consensus. Collaboration leads to a win-win situation. * Compromising (Reconciling):* This technique involves finding solutions that bring some degree of satisfaction to both parties. This is a lose-lose situation, since no party gets everything. Did you know that compromise is not the best choice, but rather second to collaborating? * Withdrawal (Avoidance):* In this technique, the parties retreat or postpone a decision on a problem. Dealing with problems is a PMI-ism, therefore, withdrawal is not usually the BEST choice for resolving conflict, though there may be situations where it is necessary. * Smoothing (Accommodating)* This technique emphasizes agreement rather than differences of opinion. *Forcing (Directing)* This technique involves pushing one viewpoint at the expense of another. It is win-lose situation.

There are several executing activities underway on your project. You are beginning to geht concerned about the accuracy of the progress reporting your team members are doing. How could you verify whether there is a problem? A. Risk quantification reports B. Regression analysis C. Quality audits D. Monte Carlo analysis

C. Quality audits Quality audits are a necessary part of the Perform Assurance process. They help you asses whether the process are being followed correctly on the project. (p.312) *Quality Audits:* A quality audit is a structured, independent process to determine if project activities comply with organizational and project policies, processes, and procedures. Quality Audits is part of the tools & Techniques of the *Perform Quality Assurance* process *Regression Analysis.* An analytic technique where a series of input variables are examined in relation to their corresponding output results in order to develop a mathematical or statistical relationship. It is a technique which is mainly used during the Monitor and Control Project Work process.

A large project is underway when one of the team members reviews the project status report. He sees the project is currently running late. As he looks at the report further, he notices the delay will cause one of his activities to be scheduled during a time he will be out of the country and cannot work on the activity. This is of great concern because he is very committed to the success of the project and he does not want to be the cause of the project being further delayed. What is the BEST thing for him to do? A. Request that the issue be added to the project issue log. B. Contract the project manager immediately to provide the project manager wiht his schedule. C. Recommend preventive action. D. Include the information on his next report.

C. Recommend preventive action. Notice that this question asks what the team member should do. It is important for the project manager to understand the team member's role and possibly even instruct team members on how to work on projects and what is expected of them. Providing the project manager with his schedule, including the information in a report, and requesting that the issue be added to the issue log have one thing in common. They involve the team member asking the project manager to do something. In reality, it may very well be the team member who will com up with a solution (such as decreasing the scope of the activity, fast tracking, or specific suggestions about changes to predecessor activities). Therefore, recommending preventive action is the best choice for the team member. Note that recommended corrective or preventive actions can come from the team or stakeholders in addition to the project manager. (p.239)

A project has suffered many delays and the project manager has moved resources around, spent more time with risk management, and even fast tracked the project where possible. The project must be completed by its originally agreed-to date, as resources are needed for another project at that time. The project manager is about to meet with the customer to tell them the product scope needs to be cut when you stop him. What would you advise him to do? A. Cut quality before cutting scope. B. Work overtime. C. Reevaluate the project's business case. D. Move resources from a non-critical path to a critical path.

C. Reevaluate the project's business case. Think about this one again before reading on. Moving resources has already been done in this situation. If you selected work overtime, you might be in trouble. Overtime is rarely the first choice, as it impacts all other work in the company that the team might be working on and causes burnout. Is there a better option? Here the project has been adjusted and adjusted to the point that the very reason the project is being done (the business case) should be looked at to determine if the project is still viable and worth going to the customer to reduce scope or working overtime (Page: 118).

The seller on the project has presented the project manager with a formal notification that the seller has been damaged by the buyer's activities. The seller claims that the buyer's slow response to requested approvals has delayed the project and has caused the seller unexpected expense. The FIRST things the project manager should do are: A. Hold a meeting with the team to review why the acceptances have been late, make a list of the specific reasons, and correct those reasons. B. Review the procurement statement of work for requirements, send a receipt of claim response, and meet to resolve the issue without resorting to legal action if possible. C. Review the contract for specific agreed-upon terms that relate to the issue, see if there is a clear response, and consult an attorney if needed. D. Collect all relevant data, send the data to the company attorney, and consult with the attorney about legal actions.

C. Review the contract for specific agreed-upon terms that relate to the issue, see if there is a clear response, and consult an attorney if needed. Collecting and sending relevant data to the company attorney does not reflect the "take-charge" role of a professional project manager. The contract may have other terms equally as relevant as the requirements, so reviewing only the requirements is not enough. Meeting to resolve the reason for late acceptance might be logical, but it does not solve the real problem in the question. The real and immediate problem is the claim, not what caused it. Certainly a great project manager would eventually need to evaluate why the problem occurred, but this question is asking what to to FIRST. The best course of action would be to review the contract for terms related to this issue, look for a response, and consult an attorney if necessary.

All of the following are inputs to the Develop Schedule process EXCEPT: A. Resource requirements, schedule management plan, staff assignments. B. Network diagram, organizational process assets, resource breakdown structure. C. Schedule baseline, scope statement, risk register. D. Organizational process assets, activity attributes, resource calenders.

C. Schedule baseline, scope statement, risk register. This question is really saying, "Which of the following do you not need before you develop your final schedule?" Remember that if any part of a choice is incorrect, the entire choice is incorrect. Of all the items included in the four choices, the only one that is not an input to the Develop Schedule process is the schedule baseline. The schedule baseline is an output of that process.

The MOST common source of conflict on projects is: A. Priorities. B. Cost. C. Schedules. D. Personality.

C. Schedules Don't be fooled because "personality" is on the list. Schedule conflict is the number one source of conflict on projects. Know the top four sources of conflict: 1. schedules 2. project priorities 3. resources 4. and technical opinions.

From the seller's point of view, a procurement is considered closed when: A. Work is complete and formal acceptance revceived. B. Final payment is made. C. The archives, administrative closure, and clousre requirements as stated in the contract are all completed. D. Lessons learned are complete and final payment is reveived.

C. The archives, administrative closure, and clousre requirements as stated in the contract are all completed. Many people do not close out a procurement properly. Ensuring "the acrchives, administrative closure, and closure requirements as stated in the contract are alle completed" includes the components of all the other choices and is therefore the best answer.

As project manager, you are unable to allocate as much time to interact with your stakeholders as you would like. Which of the following stakeholders will you make it a priority to get to know? A. The stakeholder who is an expert on the product of the project, but is not interested in implementing it in his department. B. The manager of the department that will use the product of the project. She is known to be resistant to change. C. The department employee who is unfamiliar with the product of the project, but open to the positive impacts he believes the product will have on his work environment. D. The project sponsor, with whom you have successfully worked on many projects.

C. The department employee who is unfamiliar with the product of the project, but open to the positive impacts he believes the product will have on his work environment. As the department manager, this person is a key stakeholder, and wields a lot of influence over other stakeholders in her department. The fact that she is resistant to change indicates she will need some personal reassurance from the project manager, or she may exert her influence to derail the project.

At the end of a two-year project, the key stakeholders agree that the project has met all the objectives outlined in the project charter and further defined in the project scope statement. The project was within budget and finished on time. The management of one of the functional areas is quite upset because over half of his staff quit during the project, citing long hours and lack of management support. What is the MOST correct statement about this project? A. schedule once it has been set. The project and project manager achieved all of its objectives set forth in the project charter. B. responsible for providing adequate resources, and the project manager successfully managed the project with available resources. C. The project manager did not obtain adequate resources and did not set a realistic deadline based on resources available. D. The project should be measured against how successfully it met its project charter. This was not done during this project.

C. The project manager did not obtain adequate resources and did not set a realistic deadline based on resources available. The project manager is responsible for obtaining upper management buy-in to provide adequate resources, set realistic schedules, and promote team building (p.116).

A project manager is completing the WBS with the project team, but the session is hard to manage. There are 200 people in the room representing four different departments. Some of the people who will be working on the project later are talking about other things while earlier work is discussed. Which of the following BEST describes the real problem? A. The project sponsor should be leading this kind of meeting. B. They are not follwing the project communications management plan. C. The project manager is really managing a program. D. There are too many departments involved in the project.

C. The project manager is really managing a program. The project sponsor should not be in charge of the WBS creation, and there is no indication that there are too many departments involved. Because there are so many people on the team, and because the work is apparently broken up into major components that have little to do with each other, this "project" is most likely a program; a group of related projects.

Which of the following is NOT a possible outcome of risk acceptance? A. The project will suffer no damages. B. The project will experience a cost or schedule overrun. C. The project will recover costs from the insurance company. D. The project will use the risk reserve.

C. The project will recover costs from the insurance company. Recovering costs from the insurance company is the result of transference, not acceptance. Accepting a risk can be passive (what happens, happens) or active (creating contingency plans). Any of the other choices could be an outcome of accepting risks on the project (p.429). *Risk Acceptance.* A risk response strategy whereby the project team decides to acknowledge the risk and not take any action unless the risk occurs.

All of the following are true EXCEPT: A. The stakeholders' impact on the project must be assessed. B. The communications management plan is part of the project management plan. C. The stakeholders do not have a role in determining the project management plan unless they are part of the project team. D. The project manager needs to determine the skills of the stakeholders.

C. The stakeholders do not have a role in determining the project management plan unless they are part of the project team. The project manager must asses the skills of the stakeholders and analyse their impact. The communications management plan is part of the project management plan. On most successful projects, the stakeholders are actively involved in project management plan creation. The statement contradicting this fact is the exception among the choices offered.

Which of the following statements BEST describes how stakeholders are involved on a project? A. They help to determine the project schedule, deliverables, and requirements. B. They help to determine the resource needs and resource constraints on the project. C. They help to determine the project constraints and product deliverables. D. They approve the project charter, help provide assumptions, and create management plans.

C. They help to determine the project constraints and product deliverables. The project manager determines the project schedule through schedule development. The team and other stakeholders provide the inputs. Since it is also the project manager's role to determine resource needs and create management plans, the choices including those roles cannot be best. The project sponsor approves the project charter, not the stakeholders. Stakeholders do, however, help in determining project constraints and product deliverables. Notice how tricky questions can be if you do not read them correctly! Watch for this in other questions, and pay close attention to the differences in wording.

You have just been assigned to manage a project in the middle of project executing. The BEST way to control the project is to: A. Hold status meetings because they have worked best for you in the past. B. Refer to the bar chart weekly. C. Use a combination of communication methods. D. Meet with management regularly.

C. Use a combination of communication methods. Your communication needs to be effective for the situation. Because situations vary, so must your communication methods (p. 389).

A project manager is quantifying risk for her project. Several of her experts are offsite, but wish to be included. How can this be done? A. Use Monte Carlo analysis using the Internet as a tool. B. Determine options for recommended corrective action. C. Use the Delphi technique. D. Apply the critical path method.

C. Use the Delphi technique. The Delphi technique is most commonly used to obtain expert opinions on technical issues, the necessary project or product scope, or the risks (p.418).

Important aspects of a product include the ongoing operations and maintenance. Which of the following BEST describes how operations and maintenance activities impact a porject? A. They should not be broken out as separate projects phases in the project live cycle. B. They should be undertaken as separate projects under a mutula program. C. Work involved in turing over the product of the project should be included as part of the project. D. They should be included as activities in the project WBS.

C. Work involved in turing over the product of the project should be included as part of the project. You might remember a similar question with a different answer. Operations and maintenance activities are not part of projects. However, the work to collect data, meet with operations and maintenance to explain the project, and other such activities should be included in the project.

The amount of funds available for a company to invest in projects is called: A. Sunk costs. B. Value analysis. C. Working capital. D. Direct cost.

C. Working capital. Sunk costs are expended costs. Value analysis involves finding a less costly way to do the same scope of work. A direct cost is directly attributable to an activity. The amount of funds available for a company to invest is their working capital.

The __________ is a person who spearheads an idea or action and sells it throughout the organization.

Champion

A. Determining performance measures

Closure includes all of the following EXCEPT: A. Determining performance measures B. Turning over the product of the project C. Documenting the degree to which each project phase was properly closed after its completion D. Updating the company's organizational process assets

You are the project manager of a multi-national projects with stakeholders and team members on both sides of the Atlantic. You receive an email request from a stakeholder in the United Kingdom for information that is "needed by 4/3/05". You run into the stakeholder at a conference in the middle of March 2005 and he refuses to acknowledge you in any way. To what do you attribute this "weird" behavior?

Coming from the UK, a request for information by 4/3/05 means the requestor needs the information by March 4th 2005. In the US 4/3/05 means April 3rd! Therefore the stakeholder may have been very angry with the project manager in the middle of March if he did not receive the information. The project manager, on the other hand thought he still had two weeks to respond! This is both a culture and communication problem. The project manager has the obligation to ensure that his interpretation of the message is what the sender intended.

Most of the time spent by a project manager is spent __________.

Communicating

According to the authors the key to coping with the uncertainty that happens at the end of a project, an obstacle that the project manager must overcome is __________.

Communication

According to the textbook, in Latin America, the __________ system leads a manager to give preference to relatives and friends when hiring.

Compadre

A. Historical records for future projects

Company procedures require the creation of a lessons learned document. Which of the following is the BEST use of lessons learned? A. Historical records for future projects B. Planning record for the current project C. Informing the team about what the project manager has done D. Informing the team about the project management plan

__________ engineering refers to the use of a design team that includes design and manufacturing engineers as well as staff from other relevant areas of the business.

Concurrent

__________ is the process which begins when one party perceives that the other has frustrated, or is about to frustrate, some concern of his.

Conflict

C. Not be viewed as part of a project

Consideration of ongoing operations and maintenance is crucially important to products of projects. Ongoing operations and maintenance should: A. Be included as activities to be performed during project closures. B. Have a separate phase in the project life cycle, because a large portion of life cycle costs is devoted to maintenance and operations. C. Not be viewed as part of a project. D. Be viewed as a separate project.

The __________ is an alternative for action if the expected result fails to materialize.

Contingency plan

__________ is the entire way of life for a group of people. It contains the four elements of technology, institutions, language, and arts.

Culture

The Project Charter formally authorizes a project. Who authorizes the project charter? A. The project manager B. A project sponsor or initiator internal to the project C. The user of the product D. A project sponsor or initiator external to the project

D - A project initiator or sponsor external to the project, at a level that is appropriate to funding the project, authorizes the project charter. [PMBOK 5th edition, Page 68] [Project Integration Management] Projects are initiated by an entity external to the project such as a sponsor, program or project management office (PMO) staff person, or a portfolio governing body chairperson or authorized representative. The project initiator or sponsor should be at the level that is appropriate to procure funding and commit resources to the project. Projects are initiated due to internal business needs or external influences. These needs or influences often trigger the creation of a needs analysis, feasibility study, business case, or description of the situation that the project will address. Chartering a project validates alignment of the project to the strategy and ongoing work of the organization. A project charter is not considered to be a contract, because there is no consideration or money promised or exchanged in its creation.

Which of these tools and techniques are common to all six Project Integration Management processes? A. Project management Information System B. Analytical techniques C. Facilitation techniques D. Expert Judgment

D - All six processes of Project. Integration Management use Expert judgment as a tool and technique. [PMBOK 5th edition, Page 65] [Project Integration Management]

What is the advantage of preparing an estimate of costs by an outside professional estimator? A. To determine if a lump sum contract should be used B. To determine the project funding limits C. To hold vendors accountable to a certain price D. To serve as a comparison point for incoming estimates

D - An estimate of costs will serve as a benchmark on proposed responses. Any significant differences in cost estimates can be an indication that the procurement statement of work was deficient, ambiguous or the prospective sellers failed to understand the work. [PMBOK 5th edition, Page 376] [Project Procurement Management]

Which of the following Project Scope Management processes documents a configuration management system? A. Control Scope B. Define Scope C. Verify Scope D. Plan Scope Management

D - Configuration management activities are documented as part of the requirements management plan which is an output of the Plan Scope Management process. [PMBOK 5th edition, Page 110] [Project Scope Management]

Estimating the type and quantities of material, people, equipment or supplies required to perform each activity is: A. Estimate Activity Workload B. Estimate Activity Input C. Activity Resource Requirements D. Estimate Activity Resources

D - Estimate Activity Resources is the process of estimating the type and quantities of material, people, equipment or supplies required to perform each activity. [PMBOK 5th edition, Page 160] [Project Framework]

You are managing a medium sized construction project, and are reviewing some invoices from the electrical contractor. You see that materials not required for your project have been included on the invoice. After making a few phone calls it becomes clear that one of your project resources asked one of the vendor's staff to add a few extra circuits to one part of the building. This change was never approved through the change management process. What do you do? A. Notify the manager of your project resource that he failed to follow proper processes. B. Refuse to pay the charges. C. Call a team meeting to determine how this will impact the project, then inform stakeholders of the impacts. D. Immediately inform the project stakeholders of the unauthorized scope change. Then call a team meeting to determine the impact to the project.

D - Immediately inform the stakeholders of the unauthorized scope change, then call team meeting to determine the impact. The code of ethics requires project managers to provide accurate and timely information about their projects, and to report the errors and omissions made by others when they are discovered. [Reference: PMI Code of Ethics and Professional Conduct, Page 2] [Prof. Responsibility]

While developing the project schedule, you find that the completion of a successor activity depends on the completion of its predecessor activity. What is this dependency called? A. Start-to-Finish B. Start-to-Start C. Finish-to-Start D. Finish-to-Finish

D - In a Finish-to-Finish dependency, the completion of the successor activity depends upon the completion of its predecessor activity. [PMBOK 5th edition, Page 156] [Project Time Management]

When does the Close Project or Phase process need to be performed in case of multi-phased projects? A. The Close Project or Phase process needs to be done at the end of each phase of the project; however, it is left to the project manager's discretion on whether he/she wants to perform this process in between phases. It necessarily needs to be done at the end of the project. B. The Close Project or Phase process is done at the end of the project in case the work is contracted out to external performing organizations. C. The Close Project or Phase process needs to performed at the end of the project and involves closing out the entire project scope. D. The Close Project or Phase process needs to be performed at the end of each phase of the project and involves closing out the portion of project scope applicable to that phase.

D - In multi-phase projects, the Close Project or Phase process is done at the end of each phase and closes out the portion of project scope and associated activities for a particular phase. [PMBOK 5th edition, Page 101] [Project Integration Management]

On obtaining the project charter, the Project Manager of a project immediately starts acquiring the project team. Is this correct? A. Yes. Acquisition of the project team is primarily an Initiating Process Group activity. B. Yes. The project manager needs to get the team together as soon as the project starts. C. No. It is the responsibility of the project sponsor to provide the team for execution. D. No. Acquisition of the project team is primarily an Executing Process Group activity.

D - No, the project team is not acquired immediately after signing of the project charter. Acquisition of a project team starts with HR management planning in the planning process group, followed by the Acquisition of the team in the execution phase. The other answers are wrong because the acquisition of the project team is mentioned in the wrong phase. [PMBOK 5th edition, Page 255] [Project Human Resource Management]

In general, Perform Qualitative Risk Analysis is: A. not often completed B. complete and 100% accurate C. in-depth and thorough D. quick and cost-effective

D - Perform Qualitative Risk Analysis is quicker than Perform Quantitative Risk Analysis which is sometimes not required by the project. [PMBOK 5th edition, Page 328, 333] [Project Risk Management]

You are looking at various process improvement models. Which of the following is not a process improvement model? A. Malcolm-Baldrige B. Organizational Project Management Maturity Model (OPM3)® C. Capability Maturity Model Integrated (CMMI®) D. Shewhart-Deming

D - Shewhart and Deming were quality management experts. The rest of the choices are process improvement models. [PMBOK 5th edition, Page 229] [Project Quality Management]

Which of the following is not an organizational process asset that is used during the Plan Human Resource Management process? A. Template for organizational charts B. Template for position descriptions C. Standardized role descriptions D. Standardized stakeholder list

D - Standardized stakeholder list is not a valid organizational asset used in the Plan Human Resource Management process. The others are valid assets. Other assets are: Historical information on org structures that have worked in previous projects and organizational processes and policies. [PMBOK 5th edition, Page 260] [Project Human Resource Management] 9.1.1.4 Organizational Process Assets Described in Section 2.1.4. The organizational process assets that can influence the Plan Human Resource Management process include, but are not limited to: • Organizational standard processes, policies, and role descriptions; • Templates for organizational charts and position descriptions; • Lessons learned on organizational structures that have worked in previous projects; and • Escalation procedures for handling issues within the team and within the performing organization.

Which of the following is accurate regarding the Estimate Activity Resources process? A. It produces project resource calendars as the output B. It determines dependencies that may require a lead or lag to define the relationship C. This process is coordinated independent of the Estimate Cost process D. It involves determining what and how many resources will be used

D - The Estimate Activity Resources process determines what and how many resources will be used. The resource calendars are inputs to this process and this process is closely coordinated with the Estimate Costs process. Activity leads and lags are not determined during this process. [PMBOK 5th edition, Page 160] [Project Time Management]

Which of the following is a hierarchical representation of project risks? A. Risk Register B. Risk Mitigation C. Risk categories D. Risk Breakdown Structure

D - The Risk Breakdown Structure (RBS) is a hierarchical presentation of the project risks sorted by risk categories. [PMBOK 5th edition, Page 560] [Project Risk Management] Tree diagrams. Also known as systematic diagrams and may be used to represent decomposition hierarchies such as the WBS, RBS (risk breakdown structure), and OBS (organizational breakdown structure). In project management, tree diagrams are useful in visualizing the parent-to-child relationships in any decomposition hierarchy that uses a systematic set of rules that define a nesting relationship. Tree diagrams can be depicted horizontally (such as a risk breakdown structure) or vertically (such as a team hierarchy or OBS). Because tree diagrams permit the creation of nested branches that terminate into a single decision point, they are useful as decision trees for establishing an expected value for a limited number of dependent relationships that have been diagramed systematically.

The WBS is finalized by establishing control accounts for the work packages and a unique identifier from a code of accounts. This provides a structure for hierarchical summation of: A. Schedule and requirements information B. Cost and requirements information C. Cost and resource information D. Cost, schedule and resource information

D - The WBS is finalized by establishing control accounts for the work packages and a unique identifier from a code of accounts. This provides a structure for hierarchical summation of costs, schedule and resource information.[PMBOK 5th edition, Page 132] [Project Scope Management]

Which of the following is an enterprise environmental factor? A. Configuration management knowledge base B. Change control procedures C. Historical information D. Commercial databases

D - The commercial databases are considered enterprise environmental factors. Rest of the choices are organizational process assets. [PMBOK 5th edition, 29] [Project Framework].

The critical path method (CPM) calculates the theoretical early start and finish dates; and late start and finish dates. The difference between the late and early start of a task is called: A. Free float B. Feeding buffer C. Danger zone D. Total float

D - The difference between the early and late finish of a task is called the total float for that task. Total float is the amount of time that a schedule activity can be delayed from its early start date without delaying the project finish date. [PMBOK 5th edition, Page 177] [Project Time Management] Total Float is the amount of time that an activity can be delayed from its early start date without delaying the project finish date. Free Float is the amount of time that an activity can be delayed without delaying the early start date of any successor activity.

Project risks should be identified by: A. Those invited to the risk identification process only B. Key project stakeholders only C. The project manager only D. All project personnel

D - While it is not feasible to invite everyone to the risk identification meetings, everybody should be encouraged to identify risks as they encounter them. [PMBOK 5th edition, Page 321] [Project Risk Management]

A fundamentally functional organization creates a special project team to handle a critical project. This team has many of the characteristics of a project team in a project organization and has a Project manager dedicated to the project. Such an organization would be called: A. A projectized organization B. A functional organization. C. A strong matrix organization D. A composite organization

D. A composite organization This organization would be called a composite organization. [PMBOK 5th edition, Page 25] [Project Framework] Many organizations involve all these structures at various levels, often referred to as a composite organization, as shown in Figure 2-6. For example, even a fundamentally functional organization may create a special project team to handle a critical project. Such a team may have many of the characteristics of a project team in a projectized organization. The team may include full-time staff from different functional departments, may develop its own set of operating procedures, and may even operate outside of the standard, formalized reporting structure during the project. Also, an organization may manage most of its projects in a strong matrix, but allow small projects to be managed by functional departments.

Value analysis is performed to get: A. Management to buy into the project. B. The team to buy into the project. C. More value from the cost analysis. D. A less costly way of doing the same work.

D. A less costly way of doing the same work. Notice that you need to know the definition of value analysis to answer this question. Also notice that the other choices could be considered correct by someone who does not know the definition. Value analysis seeks to decrease cost while maintaining the same scope (p.255). Value Analysis is a concept part of the Cost Management knowledge area. This concept is sometimes referred to as value engineering. Its focus is to find a less costly way to do the same work. In other words, this technique asks, "How can we decrease cost on the project while maintaining the same scope?" When performing value analysis, you systematically identify the required project functions, assign values to these functions, and provide functions at the lowest overall cost without loss of performance.

A project manager is concerned about the amount of gold plating that has occurred on past projects. all the following would NOT be of use in controlling gold plating EXCEPT: A. A project charter B. A risk management plan C. A staffing management plan D. A work breakdown structure dictionary

D. A work breakdown structure dictionary Gold plating generally refers to adding extra scope. If you picked project charter, remember the project charter is a high-level document. Because the WBS dictionary is much more detailed, it provides the most help in controlling gold plating. WBS dictionary. The WBS dictionary is a document that provides detailed deliverable, activity, and scheduling information about each component in the WBS. The WBS dictionary is a document that supports the WBS. Information in the WBS dictionary may include, but is not limited to: - Code of account identifier, - Description of work, - Assumptions and constraints, - Responsible organization, - Schedule milestones, - Associated schedule activities, - Resources required, - Cost estimates, - Quality requirements, - Acceptance criteria, - Technical references, and - Agreement information.

You are the project manager on a project that has a total project float of negative 20. What should you do FIRST? A. Request an extension of the project due date. B. Use less experienced team members. C. Fast track the project if overall project risk is already too high. D. Acquire more resources for critical path activities.

D. Acquire more resources for critical path activities. Negative float indicates you are behind. Requesting an extension of the project due date essentially means, "Do nothing and ask for more time." Fast tracking an already risky project only puts the project in worse shape. The more proactive choice is to acquire more resources for critical path activities.

From the project perspective, quality attributes: A. Provide the basis for judging the project's sucess or failure. B. Determine how effectively the performing organization support the project. C. Are objective criteria that must be met. D. Are specific characteristics for which a product is designed and tested.

D. Are specific characteristics for which a product is designed and tested. Quality attributes are the measurements that determine if the product is acceptable. They are based on the characteristics of the product for which they were designed.

A change control system should be created: A. By management. B. As needed on the project. C. By the team. D. As a formal documented procedure

D. As a formal documented procedure The change management process should be formal so changes don't "just happen." You manage them. You want changes documented for historical purposes so there is an audit trail indicating why made the changes. The change control system is a part of an organization's enterprise environmental factors. For example the "contract change control system" is a tool, which is used in the "Control Procurements" process. *Contract Change Control System* A contract change control system defines the process by which the procurement can be modified. It includes the paperwork, tracking systems, dispute resolution procedures, and approval levels necessary for authorizing changes. The contract change control system is integrated with the integrated change control system. *Change Control System.* A set of procedures that describes how modifications to the project deliverables and documentation are managed and controlled.

During project executing, a project team member informs the project manager that based on her observations, the project cannot meet the quality standards set for it. What would be the LEAST effective thing for the project manager to do? A. Review the quality plan. B. Hold a meeting on the issue. C. Review the project scope statement. D. Continue the Perform Quality Assurance process

D. Continue the Perform Quality Assurance process Perform Quality Assurance involves determining whether standards are being followed. This would be the least effective, since it does not address the specific problem described in the question (p.311).

Your program manager has come to you, the project manager, for help with a bid for her newest project. You want to protect your company from financial risk, and you have limited scope definition. What is the BEST type of contract to choose? A. Cost plus percentage of cost (CPPC) B. Time and material (T&M) C. Fixed-price (FP) D. Cost plus fixed fee (CPFF)

D. Cost plus fixed fee (CPFF) Of the options given, the only contract that limits fees for large projects with limited scope definition is cost plus fixed fee. Limited scope definition are available and the purpose of the project is not a service, it is a project. Due to that there is no information, that requires the project to start as soon as possible, the best choice is a D. Cost plus fixed fee.

A project is considered out of control and the previous project manager has quit. You are assigned as the new project manager and have been asked to verify the quality level of the project and to recommend corrective action. What do you do FIRST? A. Review the project management plan. B. Create a risk mitigation plan. C. Meet with the team. D. Draw a control chart.

D. Draw a control chart. The question could be read as "What do you do first to deal with this situation?" You might do any of the other choices when first assigned as a project manager, but only creating a control chart deals with the problem presented (p.305)

All of the following are forms of power derived from the project manager's position EXCEPT: A. Reward. B. Formal. C. Penalty. D. Expert.

D. Expert. When someone is given the job of project manager, he or she will have formal, reward, and penalty power. But just having the position does not make the project manager either a technical or project management expert. Expert power has to be earned. (p.359)

A seller contacts you to tell you one of your team members did something that caused the seller harm, and the seller is going to file a claim. What is the BEST thing to do? A. Use the contingency reserve to cover the claim. B. See if there is any money left in the budget to pay for the claim. C. Look for instances where the seller caused you harm to counteract the claim. D. Follow the change control process outlined in the contract

D. Follow the change control process outlined in the contract You always need to follow the change control process. You cannot arbitrarily decide to refuse to pay claims. Reserves should be used for identified risks and not used arbitrarily (p.504).

A project manager is assigned to a new, high priority project. There are only five available resources because other resources are already committed to projects. The time available to complete the project is less than half the time needed, and the project manager can not convince management to change the end date. The project manager should: A. Use more experienced resources to complete the work faster. B. Provide the team with opportunities to produce acceptable quality on the work that can be accomplished. C. Coordinate with team members the overtime necessary to complete the work. D. Look for any scope that can be cut from the project.

D. Look for any scope that can be cut from the project. Requiring overtime is never the first resort to solve such problems because it causes the project manager to lose credibility and performance. This would likely create a cost impact on the project, or impact other projects or other work. Helping the team produce quality work is a good idea, but it does not address the time problem. Using more experienced resources is not viable, as other resources are not available. The best choice in this situation is to consider cutting the scope.

You are a project manager for one of many projects in a large and important program. At a high-level status meeting, you note that another project manager has reported her project on schedule. Looking back on your project over the last few weeks, your remember many deliverables from the other project that arrived late. What should you do? A. Discuss the issue with your boss. B. Develop a risk control plan. C. Meet with the program manager. D. Meet with the other project manager.

D. Meet with the other project manager. You should confront the situation by discussing it with the other project manager. You can then find out if the other project is really on schedule and thereby confirm or deny your information. Meeting with the program manager or with your boss would be the next step if meeting with the other project manager validates your concern. You might also develop a risk response plan to deal with the risk to your project. First, though, you need to meet with the other project manager. (p.558)

Consideration of ongoing operations and maintenance is crucially important to products of projects. Ongoing operations and maintenance should: A. Be included as activities to be performed during project closure. B. Have a separate phase in the project life cycle, because a large portion of life cycle costs is devoted to maintenance and operations. C. Be viewed as a separate project. D. Not be viewed as part of a project

D. Not be viewed as part of a project Remember the definition of a project: temporary and unique. Operations and maintenance are considerd ongoing activities, not temporary. Therfore, such work is not considered a project or part of a project.

A team member from research and development tells you that her work is too creative to provide you with a fixed single estimate for the activity. You both decide to use the the average labor hours to develop a prototype (from past, similar projects) to predict the future. This is an example of which of the following? A. Three-point estimating B. Analogous estimating C. Monte Carlo analysis D. Parametric estimating

D. Parametric estimating Monte Carlo analysis is a modeling, or simulation, technique. Three-point estimating uses three time estimates per activity. One could use data from past projects to come up with the estimate (analogous estimating), but the best answer is paramtric estimating because past history is being used to calculate an estimate. Differences between analogous and parametric estimating: - Analogous is considered top-down and is less accurate than parametric. Analogous estimating uses an "analogy" - comparing a past similar project to your current project. - Parametric is more accurate, specifically when the underlying data is scalable. Parametric uses a relationship between variables (a unit cost/duration and the number of units) to develop the estimate.

The testing results for the new computer modulation project have arrived from the seller. The results indicate the project is not meeting the overall quality requirements. If the project manager meets with team members to analyze the situation, the project manager is involved in which process? A. Control Quality B. Plan Quality Management C. Quality Management D. Perform Quality Assurance

D. Perform Quality Assurance The key word here is "overall". Control Quality is incorrect because they are not addressing the specific work performance (i.e., the table is too short). The Perform Quality Assurance process is used to make sure standards and processes were followed.

All of the following are inputs to the Develop Schedule process EXCEPT: A. Assumption that the software will be released without any damaging bugs. B. Need for delay between ordering equipment and installing it. C. Vacation schedules. D. Planned start and finish dates for each activity.

D. Planned start and finish dates for each activity. Vacation schedules, the need for delay between ordering and installing equipment, and assumptions about the software are inputs to the Develop Schedule process. Start and finish dates for each activity are outputs of the Develop Schedule process.

You evaluate your critical path and determine the project will be completed two weeks ahead of management's expected due date. What should you do? A. Add extra features that will enhance the project and require two more weeks to complete. B. Pull resources off the critical path to work on non-critical path activities. C. Delay the project for two weeks. D. Prepare a list of identified risks that did not occur.

D. Prepare a list of identified risks that did not occur. Delaying project completion or adding work to the project are unethical actions. When the project is completed early, the project manager should report that the project came in ahead of time and explain WHY. This is a success! If there was proper project planning, this should occur because an expected risk did not materialize (p.215).

Your company puts a new product into the marketplace without any reports of problems. However, your internal research indicates there is a possibility of a malfunction that could cause serious injuries. You estimate that modifications to eliminate this possibility would cost US $20,000,000. What should you do? A. Wait until an injury to verify the impact. B. Make the necessary modifications to the products in production. C. Obtain insurance to cover the anticipated damages. D. Recall all existing product.

D. Recall all existing product. Modifying the products in production does not solve the problem, it just prevents it from getting bigger. Waiting for an injury is unethical, and may cause additional liability. Although insurance would cover the risk, it is best to recall the product and fix the problem in all instances (p.559).

A team member tell you that when his wife was diagnosed with a serious illness, he stole items from work and sold them, using the money for her treatment. He has since paid back the money taken, in ways that kept his theft secret. Ethically, what should you do? A. Advise the team member to tell his manager. B. Talk with a lawyer to see if this can be justified. C. Attempt to gather evidence to determine whether or not the theft in fact occurred. D. Report him to his manager.

D. Report him to his manager.

A new employee of the company is assigned to work on a project that is in the early planning processes. She has to decide today if she will accept the assignment to the project or wheter she wants to be assigned to a different project. However, the proeject manager is not at work and is not reachable. Where can the team member look to help her determine what work she is given on the project? A. Activity definitions B. Project management plan C. Job descriptions D. Responsibility assignment matrix

D. Responsibility assignment matrix Neither activity definitions nor project management plan include the responsibilities of team members on the project. Wheras a job description describes a person's primary job, the responsibility assignment matrix describes the person's responsibilities on the project. Matrix-based charts. A responsibility assignment matrix (RAM) is a grid that shows the project resources assigned to each work package. It is used to illustrate the connections between work packages or activities and project team members. On larger projects, RAMs can be developed at various levels. For example, a high-level RAM can define what a project team group or unit is responsible for within each component of the WBS, while lower-level RAMs are used within the group to designate roles, responsibilities, and levels of authority for specific activities. The matrix format shows all activities associated with one person and all people associated with one activity. This also ensures that there is only one person accountable for any one task to avoid confusion of responsibility. One example of a RAM is a RACI.

A new software development project is in progress and the project manager is working with the quality assurance department. They want to improve everyone's confidence that the project will satisfy the quality standards. Which of the following MUST they have before they start this process. A. Completed checklists B. A quality control plan C. Rework D. Results of quality control measurements

D. Results of quality control measurements The only choice listed that makes sense and is an official input to Perform Quality Assurance is results of quality control measurements. This question is similar to others in this program but not exactly the same. You may also see this occur on your exam. Carefully read the questions! (p.311)

A project manager has made a change to the project. What should she do NEXT? A. Evaluate impact. B. Assign resources. C. Request change control board involvement. D. Revise the project management plan and/or project documents

D. Revise the project management plan and/or project documents Once the change has been made, the documents affected by the change (the project management plan/or project documents) must be updated.

A control chart show the last eight pipes produced were all less than average weight. You need to inform management that there is a problem because the situation violate the: A. 3 sigma rule. B. Rule of eight. C. 50/50 rule. D. Rule of seven.

D. Ruel of seven. Less than the average wight means there isn't a normal and expected variation in the process. This condition has occurred seven or more time in a row. The process is out of control. Rule of Seven: The rule of seven is a general rule, or heuristic. It refers to a group or series of nonrandom data points that total seven on one side of the mean. The ruel of seven tells you that, although none of these points are outside of the control limits, they are not random and the process is out of control. The project manager should investigate thsi type of situation and find a cuase.

The sponsor has asked you to require that each piece of the project scope be planned, estimated, and scheduled. The sponsor also wants to authorize each piece of the project management plan after the documentation is assembled. What is the MOST appropriate response to these requests? A. Provide the sponsor with a schedule of when the components will be ready for authorization. B. Politely advise the sponsor to forego the authorization of work. C. Ask the sponsor to authorize each piece before it is completed. D. Tell the sponsor the chance for authorization will come after the pieces of the project management plan are compiled.

D. Tell the sponsor the chance for authorization will come after the pieces of the project management plan are compiled. This question deals with the proper creation of the project management plan. The final plan contains more information than what is listed in this question. It is the final plan and not the components that require authorization. Otherwise, there is extra work for everyone. The project management plan is approved after all its components are completed.

People from the business development department are the only ones completing a project. Whenever questions arise, they are transmitted to the heads of other departments, to the people in these departments, and then back to the business development department. This is causing delays on the project. Why might this method of communication be happening? A. There is no project charter. B. The work breakdown structure does not show responsibilities. C. The communications management plan is not clear. D. The project is being managed in a functional organization.

D. The project is being managed in a functional organization. There is no indication that the situation is not part of the communications management plan. Neither the project charter nor the WBS are related to the cause of the delays. This type of communication is common in a functional organization.

Which of the following statements BEST describes the rule that has been ignored when a project which was originally scheduled for completion in six months has been ongoing for two years? A. The work breakdown structure is a good way to determine project activities. B. The project needs only one project sponsor. C. A project is somthing that is temparary. D. Too many activites can mean the project is never completed.

D. Too many activites can mean the project is never completed. The WBS is a good way to determine project objectives, however, that does not relate to the question presented. There is no reason to suspect there were too many activities or more than one sponsor, but letting a project continue to expand (from 6 to 24 months) violates the definition of a project as something temporary.

A project manager receives a deliverable from one of the team members to provide to the customer. While looking at the deliverable, the project manager notes that the document is smaller than what he expected and does not contain what he thought it should. The project manager should FIRST: A. Discuss it with the team member. B. Audit the development process. C. Contact the team member's manager to geht that person additional training. D. Validate Scope.

D. Validate Scope. Such a review compares the deliverable to the requirements. The project manager might have misunderstood and it would be best to check before talking to the team member or presenting the deliverable to the customer (p.183). Validate Scope is part of the knowledge area Scope Management and is related to the process group Monitoring&Controlling. *Validate Scope* The process of formalizing acceptance of the completed project deliverables. *Control Scope* is the process of monitoring the status of the project and product scope and managing changes to the scope baseline. The key benefit of this process is that it allows the scope baseline to be maintained throughout the project.

A project may be selected based on all of the following EXCEPT: A. Net present value (NPV). B. The number of resources required. C. Benefit measurement. D. Value analysis.

D. Value analysis. Value analysis is a way of making sure the least expensive way is found to do the work (p.119)

The scope baseline can BEST be said to include the: A. Scope management plan and WBS. B. WBS and project charter. C. Scope management plan and project scope statement. D. WBS and project scope statement.

D. WBS and project scope statement. The scope baseline includes the WBS, WBS dictionary, and the project scope statement (p.182).

A formalized method for transforming the opinions of a group of individuals into quantitative measures that can be aggregated for use in decision-making is referred to as the __________.

Delphi system

To look backward at what may have contributed to quality problems on the project, the team may use all of the following EXCEPT: A. Cause and effect diagram. B. Ishikawa diagram. C. Fishbone diagram D. Scatter diagram

Did you realize that Ishikawa, cause and effect and fishbone are all names for the same tool? This diagram may be used to look backward at what may have contributed to quality problems on the project. A scatter diagram tracks two variables to determine their relationship (p.308).

C. Accelerated depreciation

Double declining balance is a form of: A. Decelerated depreciation B. Straight line depreciation C. Accelerated depreciation D. Life cycle costing

C. Tell the stakeholders the scope cannot be added

During a meeting with some of the project stakeholders, the project manager is asked to add work to the project scope. The project manager had access to correspondence about the project before the project charter was signed and remembers that the project sponsor specifically denied funding for the scope mentioned by these stakeholders. The BEST thing for the project manager to do is to: A. Let the sponsor know of the stakeholders' request B. Evaluate the impact of adding the scope C. Tell the stakeholders the scope cannot be added D. Add the work if there is time available in the project schedule

B. Scope management

During a project team meeting, a team member suggests an enhancement to the scope that is beyond the scope of the project charter. The project manager points out that the team needs to concentrate on completing all the work and only the work required. This is an example of: A. Change management process B. Scope management C. Quality analysis D. Scope decomposition

C. Executing

During a team meeting, a team member asks about the measurements that will be used on the project to assess performance. The team member feels that some of the measures related to activities assigned to him are not valid measurements. The project is BEST considered to be in what part of the project management process? A. Closing B. Monitoring and controlling C. Executing D. Initiating

B. Make approved changes as needed, but retain the schedule baseline

During project executing, a large number of changes are made to the project. The PM should: A. Wait until all changes are known and print out a new schedule B. Make approved changes as needed, but retain the schedule baseline C. Make only the changes approved by management D. Talk to management before any changes are made

A. WBS Dictionary

During project executing, a team member comes to the project manager because he is not sure what work he needs to accomplish on the project. Which of the following documents contains detailed descriptions of work packages? A. WBS Dictionary B. Activity list C. Project scope statement D. Scope management plan

B. Lack of a change management plan

During project executing, the PM determines that a change is needed to material purchased for this project. the PM calls a meeting to plan how to make the change. This is an example of: A. Management by objectives B. Lack of a change management plan C. Good team relations D. Lack of a clear work breakdown structure

B. The team did not create the estimate, and a network diagram was not used

During project planning, you estimate the time needed for each activity and then add up the estimate to create the project estimate. You commit to completing the project by this date. What is wrong with this scenario? A. The team did not create the estimate, and estimating takes too long using that method B. The team did not create the estimate, and a network diagram was not used C. The estimate is too long and should be created by management D. The project estimate should be the same as the customer's required completion date

D. The PM did not assign work packages

During the completion of project work, the sponsor asks the project manager to report on how the project is going. In order to prepare the report, the PM asks all the team members what percent complete their work is. There is one team member who has been hard to manage from the beginning. In response to being asked what percent complete he is, the team member asks, "percent complete of what?" Being tired of such comments, the PM reports to the team member's boss that the team member is not cooperating. Which of the following is MOST likely the real problem? A. The PM did not get buy-in from the manager for the resources on the project B. The PM did not create an adequate reward system for team members to improve their cooperation C. The PM should have had a meeting with the team member's boss the first time the team member caused trouble D. The PM did not assign work packages

B. Planning

During which part of the project management process is the project scope statement created? A. Initiating B. Planning C. Executing D. Monitoring and controlling

C. Monitoring and controlling

During which process group does the team measure and analyze the work being done on the project? A. Initiating B. Executing C. Monitoring and controlling D. Closing

If a resource conflict arises between two high-priority projects, precedence is typically given to the project with the __________.

Earliest due date

C. Effective communication at key interface points

Effective project integration usually requires an emphasis on: A. The personal careers of the team members B. Timely updates to the project management plan C. Effective communication at key interface points D. Product control

Identify three important characteristics that would be desirable in a project manager. Explain your reasoning.

First, there needs to be a drive to complete the tasks of the project. Second, the resources of the performing organization must be used in a manner that ensures survivability of the organization. Finally, the project manager needs the emotional maturity to balance competing demands among multiple project stakeholders.

When the standard departments of the organization represent individual disciplines such as engineering, marketing, purchasing, and so on, the organization follows __________.

Functional managment

An organization structure that is based on the Financial, Human Resources and Operational departments rather than by project is termed as a(n) __________.

Functional organization

The authors mention three situations where the highest level of negotiating skill is required by the project manager. Which of the following is NOT one of them?

Getting personnel from the functional manager

Explain why it is important for the project team to understand the purpose of a project.

Given the complexity of modern projects and the need for an interdisciplinary approach to problem solving, the uncertainties of executing projects make it impractical to give specific instructions regarding every aspect of project execution. Therefore, team members will need to fill gaps in information by making decisions that support project objectives. If team members understand the purpose of the project, there is an increased probability that those decisions will support project success.

The __________ of the project team is a crucial, but unstated, element of ancillary trade offs that the project manager must consider.

Health

The laws of the nation are often a product of the nation's __________.

History

The discounted cash flow method determines the net present value of all cash flows by discounting them by the __________.

Hurdle rate

C. Project management information system

If a project manager is concerned with gathering, integrating, and disseminating the outputs of all project management processes, she should concentrate on improving the: A. Work breakdown structure B. Communication management plan C. Project management information system D. Scope management plan

C. Perform resource optimization

If project time and cost are not as important as the number of resources used each month, which of the following is the BEST thing to do? A. Perform a Monte Carlo Analysis B. Fast track the project C. Perform resource optimization D. Analyze the life cycle costs

A. 1

If the optimistic estimate for an activity is 12 days, and the pessimistic estimate is 18 days, what is the standard deviation of this activity? A. 1 B. 1.3 C. 6 D. 3

Explain why it is necessary for the project manager to understand the reasons leading to the selection of a project.

If the project manager does not understand what a given project is expected to contribute to the parent organization, the project manager lacks critical information needed to manage the project successfully.

D. Will not always have a "home"

In a projectized organization, the project team: A. Reports to many bosses B. Has no loyalty to the project C. Reports to the functional manager D. Will not always have a "home"

A. Risk impact of crashing each activity

In attempting to complete the project faster, the project manager looks at the cost associated with crashing each activity. The BEST approach to crashing would also include looking at the: A. Risk impact of crashing each activity B. Customer's opinion of which activities to crash C. Boss's opinion of which activities to crash and in which order D. Project life cycle phase in which the activity is due to occur

C. Planning

In which project management process group is the detailed project budget created? A. Initiating B. Before the project management process C. Planning D. Executing

Effective, longtime Project Managers expect which of the following regarding their Project Teams (PTs)?

Initial PT conflict, then cohesiveness and teamwork, and finally disbanding when project is complete

Describe the multistep process for building partnered projects.

Initially, the parent firm must make a commitment to partnering, select subcontractors who will also make such a commitment, engage in joint team building exercises, and develop a charter for the project. Next, both parties must implement the partnering process with a four-part agreement on a joint evaluation of the project's progress; a method for resolving any problems or disagreements; acceptance of a goal for continuous improvement for the joint project; and continuous support for the process of partnering from the senior management of both parties. Finally, the parties commit to a joint review of project execution once the project has been completed.

The structure of a society is determined by its __________.

Institutions

Resources initially budgeted for a project are frequently __________ for the task, partly because of natural optimism by the proposer about how many resources are needed.

Insufficent

A. Project manager

Integration is done by the: A. Project manager B. Team C. Sponsor D. Stakeholders

Which of the following is NOT one of the four points of principled negotiation?

Invent options for mutual gain before trying to reach an agreement.

Which of the following demonstrates the quality of flexibility required of a project selection model?

It gives valid results within the range of conditions that the firm might experience.

C. Add the implemented corrective action to the change log, discuss the value of documentation at the next team meeting, and smooth the team member's issue with the accounting department.

It is the middle of the project when the project manager is informed by her scheduler that the project control limits are secure. That same morning she receives a note from a team member about a problem he is having. The note says, "This activity is driving me crazy, and the manager of the accounting department won't help me until the activity's float is in jeopardy." In addition, the project manager has e-mails from a minor stakeholder and 14 emails from team members. While the PM is reading the emails, a team member walks into the PM's office to tell her a corrective action was implemented by a team member from the project management office, but was not documented. What should the PM do NEXT? A. Report the documentation violation to the PMO, evaluate the security of the control limits, and review the emailing rules in the communications management plan B. Clarify the reasoning behind documentation being a problem, get the accounting department to assist the team member, and respond to the minor stakeholder. C. Add the implemented corrective action to the change log, discuss the value of documentation at the next team meeting, and smooth the team member's issue with the accounting department. D. Find out who cause the problem with the accounting department, respond to the minor stakeholder before responding to the other emails, and review the process listed in the communications management plan for reporting concerns with the team member having the documentation problem

C. Waiting time

Lag means: A. The amount of time an activity can be delayed without delaying the project finish date B. The amount of time an activity can be delayed without delaying the early start date of its successor C. Waiting time D. The product of a forward and backward pass

D. The stakeholders

Lessons learned are BEST completed by: A. The project manager B. The team C. The sponsor D. The stakeholders

A. Constrained optimization

Linear programming is an example of what type of project selection criteria? A. Constrained optimization B. Comparative approach C. Benefit measurement D. Impact analysis

Which of the following is NOT typically recommended to be considered when hiring new team members?

Low self esteem

A party to a conflict will usually be satisfied when the level of frustration has been __________.

Lowered to the point where no action against the other party is contemplated.

The need to manage technical interfaces and to correct incompatibilities is likely to create technical conflicts during the __________ phase of the project lifecycle.

Main Program

Suppose that you have been assigned as the project manager to execute a project that was selected using the sacred cow method of project selection. The project sponsor is an executive who has been with the company for three years. Based on past employment history, the average tenure of a senior executive at your company is 5 years. After reviewing the project's expectations and requirements, the project team has determined that the payback period will be 3.5 years. What are the implications for you and the project team?

Many projects are terminated before they can be successfully completed. One potential source of uncertainty in a project that was selected using the sacred cow method would be the continuity of executive leadership. Therefore, it would be important for the project manager to understand the project-related factors that would support the overall corporate strategy for business success. Otherwise, should the sponsoring executive depart the company prior to completion of the project, the project will lack a sponsor. Given the selection method used, the scope of the project is likely to be unstable. A project manager should think about what he/she is doing and how it supports business success. This suggests that the project manager should understand the correlation between the project's selection criteria and the business strategy.

The sophistication and experience of an organization in managing multiple projects is called ________.

Maturity

The __________ is the "corporate culture" within the organization, or even within the project.

Microculture

Partnering is an attempt to __________ the risk associated with sub-contracting.

Mitigate

The approach to organizing that includes both functions (disciplines) and projects in its hierarchy is known as the __________.

Mixed organization

According to Dewhurst, a group of individuals working independently is a __________.

Name only team (NOT)

According to the authors, the favored technique for resolving conflict is __________.

Negotiation

The process through which two or more parties seek an acceptable rate of exchange for items they own or control is called __________.

Negotitation

B. Complete integrated change control

One of the stakeholders on the project contacts the project manager to discuss some additional scope they would like to add to the project. The project manager asks for details in writing and then works through the Control Scope process. What should the project manager do NEXT when the evaluation of the requested scope is complete? A. Ask the stakeholder if there are any more changes expected. B. Complete integrated change control C. Make sure the impact of the change is understood by the stakeholder D. Find out the root cause of why the scope was not discovered during project planning

C. The project management office (PMO)

One of your team members informs you that he does not know which of the many projects he is working on is the most important. Who should determine the priorities between projects in a company? A. The project manager B. The project management team C. The project management office (PMO) D. The team

For a project selected using non-numeric models, identify the true statement regarding relative priorities for project selection.

Operating necessity projects have priority over competitive necessity projects.

C. Ongoing and repetitive

Operational work is different from project work in that operational work is: A. Unique B. Temporary C. Ongoing and repetitive D. A part of every project activity

The foundational basis for education for project managers is the __________.

PMBOK Guidelines

A major contribution of __________ is to establish project administration procedures for selecting, initializing and planning, budgeting, and scheduling projects as well as to serve as a repository for reports on the performance of the planning, budgeting, scheduling, and resource allocation processes.

PMOs

The Project Management Institute offers a popular certificate called the ______________.

PMP Project Management Professional

The general objective of a __________ solution to conflict is to find a solution such that no party can be made better off without making another party worse off by the same amount or more.

Pareto-optimal

Individuals or groups with a special interest in a project are called __________.

Parties at interest -or- Stake holders

The drawback of the __________ model is that it fails to consider cash flows obtained once the initial investment has been recovered.

Pay back period

During project build-up, if a strong matrix organizational form is used, the project manager seeks a commitment of __________ from the functional departments.

People

Firms usually have two or more projects and this collection of projects is referred to as __________.

Portfolio

The __________ approach to negotiation states immediate wants on the assumption that the environment is static.

Positional

Contrast the real options selection approach with profitability models.

Profitability models analyze a potential project using a single criterion: monetary return. This analysis may also include time value of money but this is not always true. Real options models are based on the concept of investing now to create opportunities for the future. This model analyses a potential project in terms of options that it generates or capability that it provides to a firm in the future. The investment may or may not be profitable or beneficial in the near future.

According to PMBOK, a __________ is a temporary endeavor undertaken to create a unique product or service.

Project

C. Project C

Project A has an internal rate of return (IRR) of 21 percent. Project B has an IRR of 7 percent. Project C has an IRR of 31 percent. Project D has an IRR of 19 percent. Which of these would be the BEST project? A. Project A B. Project B C. Project C D. Project D

Consider the following three-year projects A and B each with the same initial investment of $1000. You are presented with the following measures for the projects: Project A: NPV $400; Payback 24 months Project B: NPV $545; Payback 26 months Which project would you choose and why?

Project B would be the better choice for the following reasons: Project B has a greater NPV. Since NPV takes into account the time value of money and Payback does not, NPV is a more robust estimate. The fact that the Payback is delayed by two months (a 5.5% delay in a 36 month project) does not warrant leaving $145 on the table (36.25% higher NPV).

A(n) __________ is simply a written agreement between the PM, senior management, and the functional managers who are committing resources and/or people to the project.

Project Charter

In a project portfolio process, the main purpose of the __________ is to establish and articulate a strategic direction for those projects spanning the internal or external boundaries of the organization.

Project Council

PMI offers a certification for project managers. PMI offers examination for certification as __________.

Project Management Professionals

__________ is the process of evaluating individual projects or groups of projects, and then choosing to implement some set of them so that the objectives of the parent organization will be achieved.

Project Selection

It is the responsibility of the __________ to ensure that the project is structured in such a way as to allow for motivational factors to be used.

Project manager

__________ is a method of transforming contractual relationships into a cohesive, cooperative project team with a single set of goals and established procedures for resolving disputes in a timely and effective manner.

Project partnering

__________ is defined as inappropriately intense loyalty to the project.

Projectitis

C. Leveling

Rearranging resources so that a constant number of resources is used each month is called: A. Crashing B. Floating C. Leveling D. Fast tracking

The process of dealing with uncertainties in projects has come to be known as __________.

Risk Management

During the buildup stage of a project lifecycle, __________ is the dominant goal of many project managers.

Schedule

One of the main technical problems faced by the project manager is meeting __________ without compromising performance.

Schedule and cost goals

During the buildup phase, the project goals, in order of importance, are __________.

Schedule, scope, cost

During the main program phases of the project lifecycle, Thamhain et al say that conflict intensity is the greatest with respect to __________.

Schedules

Toward the end of the project lifecycle, Thamhain et al say that conflict intensity is the greatest with respect to __________.

Schedules

During the final or phaseout stage of the project lifecycle, __________ is the dominant goal of many project managers.

Scope

__________ refers to the modifications to the project plan. In many cases, the projects get larger.

Scope change

D. Milestone reports

Senior management is complaining that they are not able to easily determine the status of ongoing projects in the organization. Which of the following types of reports would help provide summary information to senior management? A. Detailed cost estimates B. Project management plans C. Bar charts D. Milestone reports

Successful Project Managers (PMs) must have which of the following skills?

Staying within budget, within time constraints, and within scope

__________ results when the demands made on an individual are greater than the person's ability to cope with them, particularly when the person has a high need for achievement.

Stress

Subletting tasks out to smaller contractors is known as __________.

Subcontracting

__________ is the term that describes the optimization of a subelement of a system, perhaps to the detriment of the overall system.

Suboptimization

The project manager should be more skilled at __________, whereas the functional manager should be more skilled at __________.

Synthesis // Analyasis

The __________ states that to understand the system, we must understand the environment (or larger system) of which it is a part.

Systems Approach

__________ problems are comparatively rare during project phaseout because most have been solved or bypassed earlier.

Technical

Real options seek to reduce which of the following risks in projects?

Technological

An important implication of the project lifecycle concept is that a project will resist __________ of its existence.

Termination

C. Initiating

The BEST time to assign a project manager to a project is during: A. Integration B. Project selection C. Initiating D. Planning

C. Not being able to measure completion of the product of the project

The CPI on the project is 1.13, and the benefit cost ratio is 1.2. The project scope was created by the team and stakeholders. Requirements on the project have been changing throughout the project. No matter what the project manager has tried to accomplish in managing the project, which of the following is he MOST likely to face in the future? A. Having to cut costs on the project and increase benefits B. Making sure the customer has approved the project scope C. Not being able to measure completion of the product of the project D. Having to add resources to the project

A. To document features or functions required by stakeholders

The MAIN purpose of writing a user story is: A. To document features or functions required by stakeholders B. To create a record of issues encountered on the project C. To perform what-if analysis D. To communicate progress

B. Create an activity list

The WBS and WBS dictionary are completed. The project team has begun working on identifying risks. The sponsor contacts the project manager, requesting that the responsibility assignment matrix be issued. The project has a budget of US $100,000 and is taking place in three countries using 14 human resources. There is little risk expected for the project, and the project manager has managed many projects similar to this one. What is the NEXT thing to do? A. Understand the experience of the sponsor on similar projects. B. Create an activity list C. Make sure the project scope is defined D. Complete risk management and issue the responsibility assignment matrix

D. Stakeholder

The WBS can BEST be thought of as an effective aid for ___ communications. A. Team B. Project manager C. Customer D. Stakeholder

C. Create a preliminary schedule and get the team's approval

The WBS, estimates for each work package, and the network diagram are completed. The NEXT thing for the project manager to do is: A. Sequence the activities B. Validate that they have the correct scope C. Create a preliminary schedule and get the team's approval D. Complete risk management

Identify three major advantages and disadvantages of using functional elements of the parent organization as the administrative home for a project. Assume that the structure is appropriate for the project being undertaken.

The advantages would include: the flexible use of staff in a manner that maximizes utilization of staff, the sharing of expertise among multiple projects, and the provision of a stable base for technological continuity for the organization. The disadvantages would include: the client is not the primary focus of activity within the function, lines of cross-functional communication may be unclear, and responsiveness to client needs may be slow and arduous.

Identify three major advantages and disadvantages of using the pure project organization as the administrative home for project. Assume that the structure is appropriate for the project being undertaken

The advantages would include: the project manager has full line authority over the project, the structure tends to support a holistic approach to running the project, and the ability to make swift decisions is greatly enhanced. The disadvantages would include: the duplication of resources which are not shared between projects, the inconsistent adherence to corporate policies and procedures, and the potential to develop projectitis in a manner that distorts relationships between project team members and their counterparts in the parent organization.

Explain how a company can go about implementing a PMO.

The best way to implement a PMO is to treat it as a project and apply good project management procedures. In addition, given the role of this special type of project, it is also suggested that the effort not be initiated until it has the full commitment of the top managers of the organization. It should also have a senior management sponsor/ champion who is determined to see this project through to success. One way to initiate the project is through a pilot program in one of the areas that falls under the responsibility of the PMO project champion. Following its completion, the pilot project can be assessed, any mistakes corrected, and the benefi ts publicized to the rest of the organization.

C. Consult with the sponsor about options

The client demands changes to the product specification that will add only two weeks to the critical path. Which of the following is the BEST thing for the project manager to do? A. Compress the schedule to recover the two weeks B. Cut scope to recover the two weeks C. Consult with the sponsor about options D. Advise the client of the impact of the change

Discuss the factors that have contributed to the growth of the Project Management Institute

The complexity of problems faced by the project manager and the rapid growth in the number project-oriented organizations has contributed to the professionalization of project management. The growth in membership reflects the growth in the use of projects as well as the importance of PMI in the development of project management as a profession. The mission of PMI is to foster the growth of project management and to build professionalism in the field. PMI is responsible for codifying the areas of learning required for competent project management. PMI also offers a certificate called the Project Management Professional (PMP®) that includes a group of education, experience, and testing requirements to obtain.

A. Validate Scope

The construction phase of a new software product is near completion. The next phases are testing and implementation. The project is two weeks ahead of schedule. Which of the following processes should the project manager be MOST concerned with before moving into the final phases? A. Validate Scope B. Control Quality C. Manage Communications D. Control Costs

B. The project is incomplete until all project and product deliverables are complete and accepted

The customer has accepted the completed project scope. However, the lessons learned required by the project management office have not been completed. What is the status of the project? A. The project is incomplete because it needs to be replaced B. The project is incomplete until all project and product deliverables are complete and accepted C. The project is complete because the customer has accepted the deliverables D. The project is complete because it has reached its due date

B. Close Project or Phase

The customer on a project tells the project manager they have run out of money to pay for the project. What should the project manager do FIRST? A. Shift more of the work to later in the schedule to allow time for the customer to get the funds B. Close Project or Phase C. Stop work D. Release part of the project team

B. The project team

The development of the scope baseline can BEST be described as involving: A. The functional managers B. The project team C. All the stakeholders D. The project expediter

C. A project is a temporary endeavor with a beginning and an end, a program is a group of related projects, and a portfolio is a group of projects and programs related to a specific strategic objective.

The difference between a project, program, and portfolio is: A. A project is temporary endeavor with a beginning and end, a program may include other non project work, and a portfolio is all the projects in a given department or division. B. A project is lengthy endeavor with a beginning and end, a program combines two or more unrelated projects, and a portfolio combines two or more programs. C. A project is a temporary endeavor with a beginning and an end, a program is a group of related projects, and a portfolio is a group of projects and programs related to a specific strategic objective. D. A project is a contracted endeavor with a beginning and end, a portfolio is a group of projects with more open-ended completion dates, and a program combines two or more portfolios.

Identify the statement that is NOT a major advantage of placing a project in the matrix approach.

The division of authority between the project manager and the functional managers is complex.

A. Develop a project charter

The engineering department has uncovered a problem with the cost accounting system and has asked the systems department to analyze what is wrong and fix the problem. You are a project manager working with the cost accounting programs on another project. Management has issued a change request to the change control board to add the new work to your project. Your existing project has a cost performance index of 1.2 and a schedule performance index of 1.3, so you have some room to add work without delaying your existing project or going over budget. However, you cannot see how the new work fits within the project charter for your existing project. After some analysis, you determine that the new work and existing work do not overlap and can be done concurrently. They also require different skill sets. Which of the following is the BEST thing to do? A. Develop a project charter B. Reestimate the project schedule with input from the engineering department. C. Validate the scope of the new work with the help of the stakeholders D. Identify specific changes to the existing work

C. Confirm that the phase has reached its objectives, and have its deliverables formally accepted.

The first phase of your project has come to an end. What is the MOST important thing to ensure is done BEFORE beginning the next phase? A. Verify that the resources are available for the next phase B. Check the project's progress compared to its baselines C. Confirm that the phase has reached its objectives, and have its deliverables formally accepted. D. Recommend corrective action to bring the project results in line with project expectations.

D. Determining the length of time the activity can be delayed without delaying the critical path

The float of an activity is determined by: A. Performing a Monte Carlo analysis B. Determining the waiting times between activities C. Determining lag D. Determining the length of time the activity can be delayed without delaying the critical path

Identify the statement that is NOT a major disadvantage of placing a project within a functional element of the parent organization.

The functional division contains the normal path of advancement for individuals whose expertise is in the functional area.

Identify the statement that is NOT a major advantage of placing a project within a functional element of the parent organization.

The functional division tends to be oriented towards activities particular to its function.

Identify the statement that is NOT a major advantage of placing a project within the pure project organization.

The functional manager retains full line authority over project team members.

A. Initiating

The high-level project schedule constraints have just been determined. What project management process group are you in? A. Initiating B. Planning C. Executing D. Monitoring and controlling

C. Integration

The need for ___ is one of the major driving forces for communication in a project. A. Optimization B. Integrity C. Integration D. Differentiation

A. Project manager

The person who should be in control of the project during project planning is the: A. Project manager B. Team member C. Functional manager D. Sponsor

A. Adopt a life cycle approach to the project

The previous project manager for your project managed it without much project organization. There is a lack of management control and no clearly defined project deliverables. Which of the following would be the BEST choice for getting your project better organized? A. Adopt a life cycle approach to the project B. Develop lessons learned for each phase C. Develop specific work plans for each work package D. Develop a description of the product of the project

B. Create a formal change request

The primary customer of a project has requested an application change during user testing. As project manager, how should you BEST address this issue? A. Develop a risk mitigation plan B. Create a formal change request C. Inform the project sponsor of changes to scope, cost, and schedule D. Ensure the scope change complies with all relevant contractual provisions

D. Increases

The program was planned years ago, before there was a massive introduction of new technology. While planning the next project in this program, the project manager has expanded the scope management plan because, as a project becomes more complex, the level of uncertainty in the scope: A. Remains the same B. Decreases C. Decreases then increases D. Increases

D. Initiating

The project charter is created in which project management process group? A. Executing B. Planning C. Closing D. Initiating

B. Make more activities concurrent

The project is calculated to be completed four days after the desired completion date. You do not have access to additional resources. The project is low risk, the benefit cost ratio is expected to be 1.6, and the dependencies are preferential. Under these circumstances, what is the BEST thing to do? A. Cut resources from an activity B. Make more activities concurrent C. Move resources from the preferential dependencies to the external dependencies D. Remove an activity from the project

B. Look for how this change will impact the cost to complete the work package and quality of the product of the work package

The project is chartered to determine new ways to extend the product life of one of the company's medium-producing products. The project manager comes from the engineering department, and the team comes from the product management and marketing departments. The project scope statement and project planning are completed when a stakeholder notifies the team that there is a better way to complete one of the work packages. The stakeholder supplies a technical review letter from his department proving that the new way to complete the work package will actually be faster than the old way. The project manager has had similar experiences with this department on other projects, and was expecting this to happen on this project. What is the FIRST thing the PM should do? A. Contact the department and complain again about their missing the deadline for submission of scope B. Look for how this change will impact the cost to complete the work package and quality of the product of the work package C. See if there is a way to change from a matrix organization to a functional organization so as to eliminate all the interference from other departments D. Ask the department if they have any other changes

B. Ask the customer for a description of the change

The project is mostly complete. The project has a schedule variance of 300 and a cost variance of -900. All but one of the quality control inspections have been completed and all have met the quality requirements. All items in the issue log have been resolved. Many of the resources have been released. The sponsor is about to call a meeting to obtain product validation when the customer notifies the project manager that they want to make a major change to the scope. The project manager should: A. Meet with the project team to determine if this change can be made B. Ask the customer for a description of the change C. Explain that the change cannot be made at this point in the process D. Inform management

A. Is the same for every project

The project life cycle differs from the project management process in that the project management process: A. Is the same for every project B. Does not incorporate a methodology C. Is different for each industry D. Can spawn many projects

The Project Manager

The project manager can be chosen and installed as soon as the project is selected for funding; This simplifies several start up activities; The project manager can be chosen later; This makes things difficult; Senior management briefs the project manager

Identify the statement that is NOT a major disadvantage of placing a project within the pure project organization.

The project manager has full line authority over the project.

D. Evaluate the impacts on other project constraints

The project manager has just received a change from the customer that does not affect the project schedule and is easy to complete. What should the project manager do FIRST? A. Make the change happen as soon as possible B. Contact the project sponsor for permission C. Go to the change control board D. Evaluate the impacts on other project constraints

A. Develop Project Management Plan and Plan Quality Management

The project manager is working to clearly describe the level of involvement expected from everyone on the project in order to prevent rework, conflict, and coordination problems. Which of the following BEST describes the project manager's efforts? A. Develop Project Management Plan and Plan Quality Management B. Manage Stakeholder Engagement and Direct and Manage Project Work C. Validate Scope and Control Quality D. Identify Risks and Develop Project Team

With respect to acquiring resources, there is a high potential for conflict between the functional manager and the project manager. Describe a major source of that conflict and suggest how it can be properly managed.

The project manager often will seek individuals with scarce but necessary skills. Moreover, the project manager will seek those individuals who are top producers. However, these are the very people the functional manager would like to retain to perform the work of the function. In order to manage this conflict, the use of an objective standard to set priorities is recommended. Instead of seeking to optimize the project or the function, the project manager and the functional manager should collaborate to solve the problem in a manner that maximizes organizational success for the business as a whole.

Identify the statement that is NOT a major disadvantage of placing the project in the matrix approach.

The project manager takes responsibility for managing the project.

D. Start to create management plans

The project sponsor has just signed the project charter. What is the NEXT thing to do? A. Begin to complete work packages B. Validate scope C. Start integrated change control D. Start to create management plans

C. Determine communications requirements

The project team has just completed the initial project schedule and budget. The NEXT thing to do is to: A. Identify risks B. Begin iterations C. Determine communications requirements D. Create a bar (Gantt) chart

D. Ask the team member how he knows there is no time, cost, or quality impact

The project was going well when all of a sudden there were changes to the project coming from multiple stakeholders. After all the changes were determined, the project manager spent time with all the stakeholders to find out why there were changes and to discover any more. The project work has quieted down when a team member casually mentions to the PM that he added functionality to a product of the project. "Do not worry," he says, "I did not impact time, cost, or quality!" What should the PM do FIRST? A. Ask the team member how the need for the functionality was determined B. Hold a meeting to review the team member's completed work C. Look for other added functionality D. Ask the team member how he knows there is no time, cost, or quality impact

Describe the type of relations that generally exist between the organization carrying out the project and a subcontractor working on the project.

The relationships are best characterized as adversarial because the parent organization's objectives are to get the deliverable at the lowest possible cost, as soon as possible. On the other hand, the subcontractor's objectives are to produce the deliverable at the highest possible profit with the least effort. These conflicting interests tend to lead both parties to work in an atmosphere of mutual suspicion and antagonism.

A. Critical path method

To control the schedule, a project manager is reanalyzing the project to predict project duration. She does this by analyzing the sequence of activities with the least amount of scheduling flexibility. What technique is she using? A. Critical path method B. Flowchart C. Precedence diagramming D. Work breakdown structure

C. Until it can be done by one person

To manage a project effectively, work should be broken down into small pieces. Which of the following does NOT describe how far to decompose the work? A. Until it has a meaningful conclusion B. Until it cannot be logically subdivided further C. Until it can be done by one person D. Until it can be realistically estimated

B. Correlates the need for the project to the organization's strategic plan

To obtain support for the project throughout the performing organization, it's BEST if the project manager: A. Ensures there is a communications management plan B. Correlates the need for the project to the organization's strategic plan C. Connects the project to the personal objectives of the sponsor D. Ensures that the management plan includes the management of team members

Project manager's responsibilities are broad and fall into three separate areas. Which of the following lists the correct areas?

To the parent organization, to the project and the client, to the members of the project team

The project manager makes a __________ by allowing one aspect of the project to get worse in return for allowing another aspect of the project to get better.

Trade-off

A. The project expediter cannot make decisions

Two project managers have just realized that they are in a weak matrix organization and that their power as project managers is quite limited. One figures out that he is really a project expediter, and the other realizes he is really a project coordinator. How is a project expediter different from a project coordinator? A. The project expediter cannot make decisions B. The project expediter can make more decisions C. The project expediter reports to higher-level manager D. The project expediter has some authority

__________ decreases as the project moves toward completion

Uncertainty

A. Global organizations

Understanding the culture, policies, and procedures of the organization in which the project is being performed is MOST challenging in: A. Global organizations B. Manufacturing organizations C. Small organizations D. Agile organizations

At the inception of a project, crises tend to be associated with resources. Explain why this scenario could be common in some organizations.

Uniqueness is a characteristics shared by projects. Once the technical plans to accomplish the project have been translated into a budget and schedule, managerial reviews will often seek to gain cuts in budget and/or schedule. Each time this happens, the cuts will have to be translated into changes in technical plans.

A. Control Quality

Validate scope is closely related to: A. Control Quality B. Sequence Activities C. Perform Quality Assurance D. Time Management

A characteristic of __________ projects is that the work these projects can cross time, space, organizational, and cultural boundaries.

Virtual

B. A means to gain benefits and control of related projects

What is a program? A. An initiative set up by management B. A means to gain benefits and control of related projects C. A group of unrelated projects managed in a coordinated way D. A government regulation

C. It has no duration

What is the duration of a milestone? A. It is shorter than the duration of the longest activity B. It is shorter than the activity is represents C. It has no duration D. It is the same length as the activity it represents

How can effective, lasting business relationships be built across different cultures?

When disagreements occur, by meeting together in an atmosphere of trust and negotiation to resolve problems

C. Reporting to management

When is a milestone chart used instead of a bar chart? A. Project planning B. Reporting to team members C. Reporting to management D. Risk analysis

D. Preventing unnecessary changes

When it comes to changes, the project manager's attention is BEST focused on: A. Making changes B. Tracking and recording changes C. Informing the sponsor of changes D. Preventing unnecessary changes

C. At the end of each phase of the project

When should the Validate Scope process be done? A. At the end of the project B. At the beginning of the project C. At the end of each phase of the project D. During the planning processes

C. Risk, human resource, process improvement, and other management plans

Which of the following BEST describes a project management plan? A. A printout from project management software B. A bar chart C. Risk, human resource, process improvement, and other management plans D. The project scope

C. Gaining a better understanding of the product of the project in order to create the project scope statement

Which of the following BEST describes product analysis? A. Working with the customer to determine product description B. Mathematically analyzing the quality desired for the project C. Gaining a better understanding of the product of the project in order to create the project scope statement D. Determining whether the quality standards on the project can be met

C. It ensures customer acceptance, shows the deliverable meets specifications, and provides a chance for differences of opinion to come to light

Which of the following BEST describes the Validate Scope process? A. It provides assurances that the deliverable meets the specifications, is an input to the PM plan, and is an output of Control Quality. B. It ensure the deliverable is completed on time, ensures customer acceptance, and shows the deliverable meets specifications C. It ensures customer acceptance, shows the deliverable meets specifications, and provides a chance for differences of opinion to come to light D. It is an output of Control Quality, occurs before Define Scope, and ensures customer acceptance

C. Scope, time, cost, quality, risk, resources, and customer satisfaction

Which of the following BEST describes the major constraints on a project? A. Scope, number of resources, and cost B. Scope, cost, and time C. Scope, time, cost, quality, risk, resources, and customer satisfaction D. Time, cost, and number of changes

B. Put all the pieces of a project into a cohesive whole

Which of the following BEST describes the project manager's role as an integrator? A. Help team members become familiar with the project B. Put all the pieces of a project into a cohesive whole C. Put all the pieces of a project into a program D. Get all the team members together into a cohesive whole

C. Standard deviation tells you how uncertain the estimate is

Which of the following BEST describes the relationship between standard deviation and risk? A. There is no relationship B. Standard deviation tells you if the estimate is accurate C. Standard deviation tells you how uncertain the estimate is D. Standard deviation tells you if the estimate includes a pad

B. To help determine if a scope change should be approved

Which of the following BEST describes what a project charter may be used for when the work is being completed? A. To make sure all the team members are rewarded B. To help determine if a scope change should be approved C. To assess the effectiveness of the change control system D. To make sure that all the documentation on the project is completed

B. Determining the sources of changes and fixing the root causes

Which of the following BEST reflects the phrase, "influencing the factors that affect change"? A. Telling people that changes are not allowed after planning is complete B. Determining the sources of changes and fixing the root causes C. Adding more activities to the work breakdown structure to accommodate risks D. Calculating the impact of changes to date on the project

D. Progress or status

Which of the following are GENERALLY illustrated BETTER by bar charts than network diagrams? A. Logical relationships B. Critical paths C. Resource trade-offs D. Progress or status

A. Imprecise language

Which of the following can create the MOST misinterpretation of the project scope statement? A. Imprecise language B. Poor pattern, structure, and chronological order C. Small variations in size of work packages or detail of work D. Too much detail

C. The Control Scope process must be integrated with other control processes

Which of the following is CORRECT in regard to the Control Scope process? A. Effective scope definition can lead to a more complete project scope statement B. The Control Scope process must be done before scope planning C. The Control Scope process must be integrated with other control processes D. Controlling the schedule is the most effective way of controlling scope

A. The critical path helps prove how long the project will take

Which of the following is CORRECT? A. The critical path helps prove how long the project will take B. There can only be one critical path C. The network diagram will change every time the end date changes D. A project can never have negative float

D. Project scope statement

Which of the following is NOT an input to the initiating process group? A. Company processes B. Company culture C. Historical WBSs D. Project scope statement

D. The project manager creates the project charter, and the sponsor approves it

Which of the following is TRUE about the development of a project charter? A. The sponsor creates the project charter, and the project manager approves it. B. The project team creates the project charter, and the PMO approves it C. The executive manager creates the project charter, and the functional manager approves it D. The project manager creates the project charter, and the sponsor approves it

B. Customer acceptance of project deliverables

Which of the following is a KEY output of the Validate Scope process? A. A more complete scope management plan B. Customer acceptance of project deliverables C. Improved schedule estimates D. An improved project management information system

C. It gives the project team an understanding of management's expectations

Which of the following is a benefit of an analogous project estimate? A. It will be closer to what the work will actually require B. It is based on a detailed understanding of what the work requires C. It gives the project team an understanding of management's expectations D. It helps the project manager determine if the project will meet the schedule

A. Iterative

Which of the following is a characteristic of project management processes? A. Iterative B. Unique C. Unnecessary D. Standardized

A. Requirements traceability matrix

Which of the following is an output of the Collect Requirements process? A. Requirements traceability matrix B. Project scope statement C. Work breakdown structure D. Change requests

D. The business case for the project

Which of the following is included in a project charter? A. A risk management strategy B. Work package estimates C. Detailed resource estimates D. The business case for the project

B. Network diagram

Which of the following is the BEST project management tool to use to determine the longest time the project will take? A. Work breakdown structure B. Network diagram C. Bar chart D. Project charter

C. Meet with the team to look at options for crashing or fast tracking the critical path

Which of the following is the BEST thing to do when asked to complete a project two days earlier than planned? A. Tell senior management that the project's critical path does not allow the project to be finished earlier B. Tell your boss C. Meet with the team to look at options for crashing or fast tracking the critical path D. Work hard and see what the project status is next month

B. Get familiar with the company culture and structure as they relate to the project.

Which of the following is the MOST appropriate thing to do during the initiating process group? A. Create a detailed description of the project deliverables. B. Get familiar with the company culture and structure as they relate to the project. C. Identify the root cause of problems D. Ensure all project management processes are complete

C. Confirm all the requirements in the project have been met

Which of the following is the MOST appropriate thing to do in project closing? A. Work with the customer to determine acceptance criteria B. Collect historical information from previous projects C. Confirm all the requirements in the project have been met D. Gain formal approval of the management plans

B. Develop Schedule

Which of the following processes includes asking team members about the estimates for their activities and reaching agreement on the calendar date for each activity? A. Sequence Activities B. Develop Schedule C. Define Scope D. Develop Project Charter

A. $100, $100, $100

Which of the following sequences represents straight line depreciation? A. $100, $100, $100 B. $100, $120, $140 C. $100, $120, $160 D. $160, $140, $120

C. Executing

Which process group focuses on completing the requirements of the project? A. Initiating B. Planning C. Executing D. Closing

C. Initiating, planning, executing, monitoring and controlling, closing

Which process groups must be included in every project? A. Planning, executing, and closing B. Initiating, planning, and executing C. Initiating, planning, executing, monitoring and controlling, closing D. Planning, executing, and monitoring and controlling

D. Executing

Which project management process group generally takes the MOST project time and resources? A. Planning B. Design C. Integration D. Executing

A. The project manager

Who has the MOST power in a projected organization? A. The project manager B. The functional manager C. The team D. They all share power

What is the key to finding a negotiator's interests and concerns when he or she states a position? You should ask __________ the interest or concern is important.

Why

Negotiating to a __________ solution is the key to conflict resolution in project management.

Win-Win

The key to conflict resolution is to turn a __________ into a __________.

Win-lose // win-win

During project build-up, if a weak matrix organizational form is used, the project manager seeks a commitment of __________ from the functional departments.

Work

The __________ is a basic project document that describes all the work that must be done to complete the project and forms the basis for costing, scheduling, and work responsibility.

Work Break Down Structure (WBS)

A. Precedence diagramming method

You are PM on a $5,000,000 software development project. While working with your team to develop a network diagram, you notice a series of activities that can worked in parallel but must finish in a specific sequence. What type of activity sequencing method is required for these activities? A. Precedence diagramming method B. Arrow diagramming method C. Critical path method D. Operational diagramming method

B. Discretionary dependency

You are PM on a $5,000,000 software development project. While working with your team to develop a network diagram, your data architects suggest that quality could be improved if the data model is approved by senior management before moving on to other design elements. They support this suggestion with an article from a leading software development journal. Which of the following BEST describes this type of input? A. Mandatory dependency B. Discretionary dependency C. External dependency D. Heuristic

B. Sunk costs

You are asked to prepare a budget for completing a project that was started last year and then shelved for six months. All of the following would be included in the project budget EXCEPT: A. Fixed costs B. Sunk costs C. Direct costs D. Variable costs

D. Meet with the customer

You are assigned as the project manager in the middle of the project. The project is within the baselines, but the customer is not happy with the performance of the project. What is the FIRST thing you should do? A. Discuss it with the project team B. Recalculate the baselines C. Renegotiate the contract D. Meet with the customer

C. Explain the impact if the promised resources are not made available

You are in the middle of executing a major modification to an existing product when you learn that the resources promised at the beginning of the project are not available. The BEST thing to do is to: A. Show how the resources were originally promised to your project B. Replan the project without the resources C. Explain the impact if the promised resources are not made available D. Crash the project

C. Define Scope

You are managing a six-month project and have held bi-weekly meetings with your project stakeholders. After five-and-a-half months of work, the project is on schedule and budget, but the stakeholders are not satisfied with the deliverables. This situation will delay the project completion by one month. The MOST important process that could have prevented this situation is: A. Monitor and Control risks B. Control Schedule C. Define Scope D. Control Scope

B. Spending more time on configuration management

You are taking over a project during project planning and discover that six individuals have signed the project charter. Which of the following should MOST concern you? A. Who will be a member of the change control board B. Spending more time on configuration management C. Getting a single project sponsor D. Determining the reporting structure

D. Gain approval

You are the PM for a new product development project that has four levels in the work breakdown structure. The network diagram and work duration estimates have been created, and a schedule has been developed and compressed. Which time management activity should you do NEXT? A. Control Schedule B. Estimate Activity Resources C. Analogously estimate the schedule D. Gain approval

B. Show your manager the impact of proceeding without approval

You have been involved in creating the project charter, but could not get it approved. Your manager and his boss have asked that the project begin immediately. Which of the following is the BEST thing to do? A. Set up an integrated change control process B. Show your manager the impact of proceeding without approval C. Focus on completing projects that have signed project charters D. Start work only on the critical path activities

A. WBSs will prevent work from slipping through the cracks

You have just joined the PMO after five years of working on projects. One of the things you want to introduce to your company is the value of creating and utilizing work breakdown structures. Some of the project managers are angry that you are asking them to do "extra work." Which of the following would be the BEST thing you could tell the project managers to convince them to use the work breakdown structures? A. WBSs will prevent work from slipping through the cracks B. WBSs are only needed on large projects C. WBSs are required only if the project involves contracts D. WBSs are the only way to identify risks

C. Determine a management strategy

You were just assigned to take over a project from another project manager who is leaving the company. The previous project manager tells you that the project is on schedule, but only because he has constantly pushed the team to perform. What is the FIRST thing you should do as the new project manager? A. Check risk status B. Check cost performance C. Determine a management strategy D. Tell the team your objectives

D. Ask management how the new project will affect your project.

Your company just won a major new project. It will begin in three months and is valued at US $2,000,000. You are the project manager for an existing project. What is the FIRST thing you should do once you hear of the new project? A. Ask management how the new project will use resources B. Resource level your project C. Crash your project D. Ask management how the new project will affect your project.

C. This is a recurring process.

Your management has decided that all orders will be treated as "projects" and that project managers will be used to update orders daily, to resolve issues, and to ensure the customer formally accepts the product within 30 days of completion. Revenue from the individual orders can vary from US $100 to US $150,000. The project manager will not be required to perform planning or provide documentation other than daily status. How would you define this situation? A. Because each individual order is a "temporary endeavor," each order is a project. B. This is program management since there are multiple projects involved. C. This is a recurring process. D. Orders incurring revenue over $100,000 would be considered projects and would involve project management

C. Crash the project

Your project management plan results in a project schedule that is too long. If the project network diagram cannot change but you have extra personnel resources, what is the BEST thing to do? A. Fast track the project B. Level the resources C. Crash the project D. Perform Monte Carlo analysis

During project build-up, the project should move from a general concept to __________.

a highly detailed set of plans

A major purpose of the project management office should be to serve as __________.

a link between strategic management and project management

Which of the following is NOT included in the authors' four part agreement for partnering?

a set of team building exercises

Which of the following choices represent the best mix of skills and attributes for Project Team Members (PTMs)?

a. High technical skills, problem-solving ability, political sensitivity, goal orientation, high self-esteem

The Project Manager's job includes which of the following?

a. Reducing conflict and stress between different types of Project Team members by promoting understanding and appreciation

Which of the following is the most important for success of the project?

a. The Project Manager has support of top management

What is the Sacred Cow model?

a. Upper management's favorite model

Firms usually have two or more projects, and this collection of projects is referred to as _____.

a. a portfolio

Project management has resulted in an overall ____.

a. decline in the use of traditional hierarchical management.

Senior managers must be informed of potential problems and the PM must:

a. never allow senior management to be surprised.

There are two basic types of project selection models, ____________________.

a. numeric and nonnumeric

Through a financial ______, an organization or individual acquires the right to do something but is not required to exercise that right

a. option

The main purpose of the ________ is to establish and articulate a strategic direction for those projects spanning internal or external boundaries of the organization, such as cross-departmental or joint venture.

a. project council

Most of the credit for developing project management techniques belongs to:

a. the military.

The functional manager uses the __________ approach and the PM uses the __________ approach.

analytic // systems

What is a "quasi-project"?

b. A situation in which all of the three primary project objectives are ill-defined

The Weighted Factor Scoring Model has the advantage of:

b. Increased attention to relative importance of each selection criterion.

In this type of project selection, a proposed project would be judged on the degree to which it fits the firm's existing product line, fills a gap, strengthens a weak link, or extends the line in a new, desirable direction.

b. Product line extension

A project begins with a _______ being presented to a funding entity. This document typically includes monetary cost and benefit elements as well as nonmonetary factors such as the strategic justification for the project, expected behavioral impacts, increases in efficiency, service improvements, competitiveness effects, and so on.

b. business case

Project management is __________.

b. difficult even when everything goes well

Under normal business conditions, when the functional manager takes over control of important details of the project, this is _________________________.

b. micromanagement, and usually not beneficial

Culture includes:

b. technology, institutions, language, and arts.

It is recommended that when a PM is directing two or more projects at the same time, care should be taken to ensure that:

b. the stages of the project life cycles are occurring at the different times.

One of the major problems project managers have with creating a project team is coming up with adequate human resources. One way this commonly happens is by __________.

borrowing employees from other functional departments

As compared to the functional manager, the project manager should more often use what approach to solving problems?

c. A systems approach

_________ is a process of social influence, which maximizes the efforts of others, towards the achievement of a goal

c. Leadership

_____ are broken down into _______, which can be further broken down into _______.

c. Programs, projects, tasks

It is recommended for an organization to have a ______ that is charged with improving the "maturity" or overall effectiveness of the organization's project management processes.

c. Project Management Office

What are the three primary objectives of projects?

c. Stay within budget, within time constraints, within scope

Effective Project Portfolio Management attempts to link the organization's projects________________________.

c. directly to the goals and strategy of the organization

With the ______ approach model, enough funds are allocated to the project to determine if the initial assumptions concerning costs, benefits, etc. were accurate. When the funds are gone, the assumptions are reevaluated to determine what to do next.

c. discovery-driven planning

A common negative aspect of implementing PM is:

c. greater organizational complexity.

The project manager needs ________ credibility

c. technical and administrative

A universal characteristic of all projects is that projects are:

c. unique

National culture

can affect projects in many ways.

This behavior in a project manager would be highly correlated with unsuccessful project management.

conflict avoidance

Conflicts within the organization typically differ from conflicts with outsiders in one important way. As far as the organization is concerned, these conflicts are __________.

conflicts between allies

Attributes of successful project managers generally include which of the following?

d. Good technical skills, tough management approach, good terms with senior management, broad background including mostly success & few failures, working well under pressure/stress, positive attitude & consensus building

The "Triple Constraint" is also referred to as "________________."

d. Iron Triangle

The two primary tasks of the Project Manager are what?

d. Managing tradeoffs and anticipating and addressing risks to the project

Common problems in managing projects include which of the following?

d. Staying within budget, within time constraints, and within scope

Which of the following project selection models focuses strongly on the long-term success of the firm?

d. Sustainability model

Project management today is

d. a flexible method for managing large or small endeavors.

Actual experience with project management indicates that _________ organizations using it claim to experience better customer relations and increase in their ROI.

d. a majority of

It is important that PMs understand or have experience with all of the following except:

d. international labor laws.

Indeed, effectively executing the PM's primary role of managing trade-offs requires that the PM make trade-offs in a way that best supports the _______.

d. organization's overall strategy

Acquiring and focusing personnel for work on the Project Team (PT) is generally difficult because of:

d. team members' dual responsibility to the project and their functional departments.

Risk is generally believed to focus on profits, but:

d. uncertainty plagues all aspects of the work and is present in all stages of PM.

When dealing with conflict between parties, it is recommended that one __________ in order to avoid the conflict becoming interpersonal.

define the substantive problem

This member of the project team is responsible for the efficient production of the product of the process, including the manufacturing engineering, design and production of tooling, production scheduling, and other production tasks.

development engineer

Identify the category of conflict that is NOT included in the categories used by Thamhain and Wilemon in their study of project conflict.

discipline/problem-orientation differences

Project priorities are more of a concern in the __________ stages of the project life cycle.

earlier

The __________ represents everything outside the system that delivers inputs or receives outputs from the system.

environement

The project management office is often created by organizations to __________.

establish consistent project management standards and methods

There are probably more opportunities for __________ in handling conflicts and negotiations than in any other aspect of project management.

ethical missteps

A __________ is a person who helps people overcome problems, either with technical issues or with other people.

facilitator

A major advantage of using a __________ placement for a project is that individual experts can be utilized by many different projects.

functional

When the major focus of a project must be on the in-depth application of a technology rather than on minimizing cost, meeting a specific schedule or achieving speedy response to change, the __________ organizational form is apt to be the form of choice.

functional

One of the major factors in determining the success of a project is having a clear set of _____.

goals

Viewing the whole at one time rather than each piece individually describes the __________ approach.

holistic

The project manager's responsibility to the project and to the client is met by ensuring that the __________ of the project is preserved in spite of conflicting demands made by stakeholders.

integrity

The boundaries between departments or functions represent __________.

interfaces

One requirement for the conflict/resolution methods described is that they must allow the conflict to be settled without __________ to the project's objectives.

irreparable harm

__________ refers to communications across lines of equivalent authority.

lateral relations

If the project manager controls when and what people do while the functional managers control who will be assigned to the project and what technology will be used, the __________ organizational form is probably being used.

matrix

The __________ organizational form is a pure project organization overlaid on the functional divisions of the parent firm.

matrix

When a project requires the integration of inputs from several functional areas and involves reasonably sophisticated technology, but does not require all the technical specialists to work for the project on a full-time basis, the __________ organizational form should be used.

matrix

In the __________ form of organizational structure, pure functional and pure project organizations may coexist in the firm.

mixed

The firm or organization within which the project is being conducted is known as the __________.

parent organization

The largest amount of effort applied to a project is during the ________ phase.

planning, scheduling, monitoring, and control

Personality conflicts during project phase-out are often caused by __________.

pressure to complete the project and anxiety about leaving the project

The __________ approach to negotiation aims to achieve a win-win result.

principled

During the early program phases of the project lifecycle, Thamhain et al say that conflict intensity is the greatest with respect to __________.

priorities

Numeric project selection models generally focus on:

profits and profitability.

The __________ manager is typically responsible for a number of related projects, each with its own project manager.

program

The total level of conflict in the project lifecycle is highest during the __________ stage.

project build up

One well-known effort to improve project management is the creation of a formal ______ in many organizations, which is responsible for the evaluation and improvement of an organization's project management "maturity," or skill and experience in managing projects

project management office

Most of the conflicts that involve the organization and outsiders have to do with __________.

property rights and contractual obligations

When a firm engages in a large number of similar projects, the __________ organizational form is apt to be preferred.

pure project

Even though the project is complete and delivered to the user/customer, it is still important to ___.

realize the full benefits from the project's outputs and tasks involved with this effort.

Which one of the following choices was NOT identified by the authors as one of the reasons why organizations enter into partnership arrangements with each other?

reducing internal conflict

During project formation, the organizational structure selected will have a major impact on the ways in which conflicts are handled. Lack of clarity about the relative power/influence/authority of the PM and the functional managers is a major component of all conflicts involving __________.

resource allocation, and scheduling

The underlying principle of modern organizations is __________ of the human elements in the group.

specialization

Most of the PM's time is _______________.

spent communicating

The "_______________" pattern of slow-rapid-slow progress toward the project goal is common.

stretched-S

The __________ matrix is most similar to the resembles the projectized organizational form.

strong

This member of the project team is in charge of product design and development and is responsible for functional analysis, specifications, drawings, cost estimates, quality/reliability, engineering changes, and documentation.

systems architect

The __________ is responsible for the installation, testing, and support of the product or process once the engineering is complete.

test engineer

This person is responsible for the installation, testing, and support of the product (process) once its engineering is complete.

test engineer

According to the authors; which of the entities below is NOT a party to the chartering process?

the customer

In the systems approach to design, one organization would have to take responsibility for __________.

the integrity of the project design

Four project environments were identified in the chapter. Assume that there is a clash in requirements between the legal environments of two countries participating in the project. Before taking action to resolve the clash in requirements, what would you recommend that the project manager do?

understand the jurisdiction of the legal systems governing the project. Once the governing jurisdiction for the matter at issue has been identified, the project manager should also understand procedural laws associated with the interpretation and enforcement of substantive rights

A room where project teams can meet, and where the latest details on project progress will be available, is called the __________.

war room

The __________ matrix is least similar to the pure project organizational form.

weak

According to the authors, the nature of negotiation as it applies to project management is the realization that few of the conflicts arising in projects have to do with __________.

whether or not the task will be done

Project manager begins

with a budget and schedule;As people are added these are refined

Identify three basic causes for change in projects.

1- planners erred in their initial assessment about how to achieve a given end or erred in the choice of the proper goal for the project. Technological uncertainty is the fundamental causal factor for either error. 2- the client/user or project team learns more about the nature of the project deliverable or about the setting in which it is to be used. 3- mandate. This is a change caused by a change in the environment in which the project is being conducted.

Identify the three fundamental categories of conflict that occur during a project's lifecycle.

1-Groups working on the project may have different goals and expectations. 2-There is considerable uncertainty about who has the authority to make decisions. 3-There are interpersonal conflicts between people who are parties-at-interest in the project.

Describe the four points of principled negotiation described by Fisher and Ury.

1-Separate the people from the problem. 2-Focus on interests, not positions. 3-Before trying to reach agreement, invent options for mutual gain. 4-Insist on using objective criteria.

Identify the major reasons for the rapid growth of project-oriented organizations.

1-Speed and market responsiveness have become requirements of successful competition. Moreover, clients want increased customization of project outputs. 2- the development of new products, processes, and services has become increasingly complex. This requires interdisciplinary collaboration and coordination. 3- rapid expansion of technological possibilities tends to destabilize organizational structures. 4- business managers are seeking to gain greater control over the operations of the business.

List and describe the three basic causes for change in projects.

1.) Planners erred in their initial assessment about how to achieve a given end or erred in their choice of the proper goal for the project. 2.) The client/user or project teams learn more about the nature of the project deliverable or about the setting in which it is to be used. 3.) Mandate (a change in the environment in which the project is being conducted)

As of 2017, PMI has approximately ____________ members

450,000

. If the initial project investment is $50,000 and the average net cash flow is $10,000 per year into the foreseeable future, the payback period is __________.

5 Years

As of 2017, there are ___________ PMI certifications

6

Virtual teams, when composed, should consist of "boundary spanners" who number about one in every __________ team members.

6-7

Which of the following is not a valid instance of Risk Transference? A. Use of a Cost Reimbursable contract B. Warranties C. Fixed Price contracts D. Performance bonds

A - A Cost reimbursable contract does not transfer risk to the seller, rather, the risk is with the buyer. Risk Transference involves shifting the negative impact of a risk, along with the ownership of the response, to a third party. Risk transference nearly always involves payment of a premium to the party taking on the risk. Examples are use of performance bonds, warranties, fixed price contracts. [PMBOK 5th edition, Page 344] [Project Risk Management]

With the establishment of a PMO in an organization, the project management jargon is being adopted by the employees. However, few people are still struggling with the project management terminologies. One of the most common confusion is the difference between a project stakeholder and a key stakeholder. Who are the key stakeholders? A. Individuals, groups or organizations in a decision making position. B. Individuals, groups or organizations actively involved in the project. C. Individuals, groups or organizations affected by the project. D. Individuals, groups or organizations carrying out the project work.

A - All of the given choices correctly define the project stakeholders. However, the key stakeholders are the subset of the project stakeholders that are in a decision making position. [PMBOK 5th edition, Page 396] [Project Stakeholder Management]

You are beginning a new project. When should you use the Perform Integrated Change Control process? A. Throughout the entire project B. Only when closing out the project C. Only after the project is completely funded D. Only after the project scope is clearly defined

A - Changes can occur in the project at any time, therefore the Perform Integrated Change Control process is valuable for managing and tracking those changes. [PMBOK 5th edition, Page 96] [Project Integration Management]

Which of the following is a tool or technique used in the Monitor and Control Project Work process? A. Expert judgment B. Rejected change requests C. Earned value technique D. Change control tools

A - Expert Judgment is a tool or technique used in the Monitor and Control Project Work process. [PMBOK 5th edition, Page 86] [Project Integration Management]

When writing the roles and responsibilities for team members, you should document the role, authority, responsibility and competency for each team member. Where must this information be documented? A. Human resource management plan B. RACI chart C. Resource calendar D. Resource Breakdown Structure (RBS)

A - Information regarding team roles, responsibilities, authorities and competencies are documented in the Human Resource Management Plan. [PMBOK 5th edition, Page 264] [Project Human Resource Management]

You have recently started working at a company as a senior project manager. The company has no employee training programs in place for junior project managers. Some junior project managers have been asking you for assistance in dealing with some work related issues. You feel that they could benefit from some guidance. Which courses of action would NOT fulfill your responsibility? A. Do nothing; it was not in your job description to mentor other employees. B. Suggest that you and other senior project managers develop a mentoring program. C. Develop a training program for junior project managers. D. Offer to conduct periodic coaching sessions for the employees seeking assistance.

A - PMI expects Project Management Professionals to share their knowledge with other professionals. Doing nothing to assist the employees because it does not strictly fall within your job description would not fulfill your responsibility to transfer knowledge to others. Even if the project managers job description does not include helping to transfer knowledge to others it is your responsibility as a project manager to do so. [Reference: PMI Code of Ethics and Professional Conduct, Page 2] [Prof. Responsibility]

Which of the following is least likely to be a project? A. Regular updates of the company website B. Responding to a contract solicitation C. Running a campaign for a political office D. An endeavor that lasts for ten years.

A - Regular updates of the company website is an operational activity and is clearly not a project. 'Responding to a contract solicitation' and 'Running a campaign' are clearly projects. The endeavor lasting for ten years cannot be ruled out as a project just because of the duration. Projects can last from a few weeks to many years. [PMBOK 5th edition, Page 3] [Project Framework]

Which of the following statements best describes Time & Material (T&M) contracts? A. T&M contracts are hybrid type of contractual agreements that could contain aspects of both cost-reimbursable and fixed-price type arrangements B. T&M contracts are the best form of contracts when the scope of work and the number of hours of work for a specific resource category is clearly known. C. T&M contracts are the same as Fixed Price contracts except that the total value is calculated using Fixed rates and the effort data is available to the purchaser as well as the seller. Once this is agreed upon, it becomes the same as a Fixed Price project. D. T&M contracts are very risky since the value of the project is not known. It is best to go in for a fixed price (FP) contract.

A - T&M contracts are hybrid type of contractual agreements that contain aspects of both cost-reimbursable and fixed-price type arrangements. They resemble cost-reimbursable contracts in that they are open ended, but resemble fixed price type contracts where the unit rates can be preset and agreed upon between buyer and seller for a specific resource category. [PMBOK 5th edition, Page 364] [Project Procurement Management]

A project was estimated to cost $ 200,000 with a timeline of 10 months. Due to a shipment delay, the schedule was slightly delayed. This was however made up by receiving the first batch of materials for the project by air. The net result was that there was some additional cost in the project. At the end of the second month, the Project Manager reviews the project and finds that the project is 20% complete and Actual Costs are $ 50,000. The Estimate to complete (ETC) for the project would now be: A. $160,000 B. $210,000 C. $250,000 D. $200,000

A - The Budget at completion (BAC) = $ 200,000 (given). The Actual Cost (AC) = $ 50,000 (given). The Earned value (EV) = ( 2 /10 ) * 200,000 since 20% of the project is complete i.e. 2 months out of 10. Hence, Earned Value (EV) = $ 40,000. This is an instance of an atypical situation in the project. Late arrival of materials does not mean that all subsequent material will arrive late. Hence, the calculation used for ETC is: ETC = BAC - EV = $200,000 - $40,000 = $160,000. [PMBOK 5th edition, Page 220] [Project Cost Management]

The Identify Stakeholders process has four inputs. Three of them are project charter, enterprise environmental factors and organizational process assets. What is the fourth one? A. Procurement documents B. Stakeholder register C. Stakeholder engagement matrix D. Stakeholder management plan

A - The Identify Stakeholders process has four inputs: project charter, procurement documents, enterprise environmental factors and organizational process assets. [PMBOK 5th edition, Page 393] [Project Stakeholder Management]

The WBS represents all product and project work. The total work at the lowest levels should roll up to the higher levels so that nothing is left out and no extra work is performed. This is also called as: A. 100% rule B. 80/20 rule C. Pareto's rule D. Ground rule

A - The WBS represents all product and project work. The total work at the lowest levels should roll up to the higher levels so that nothing is left out and no extra work is performed. This is also called as 100 percent rule. [PMBOK 5th edition, Page 131] [Project Scope Management]

A tool that provides a visual representation of human resource allocation to a project, number of working hours and availability on the project is a: A. Resource Histogram B. Staff release plan C. Resource Breakdown Structure (RBS) D. Organization Breakdown Structure (OBS)

A - The correct response is Resource Histogram. This bar chart illustrates the number of hours that a project, department or entire project team will be needed each week or month over the course of the project. The chart can include a horizontal line that represents the maximum number of hours available for a particular resource. Bars that extend beyond the maximum available hours indicate the need for a resource leveling strategy. [PMBOK 5th edition, Page 265] [Project Human Resource Management]

The date through which the project has provided actual status and accomplishments is called: A. Data Date (DD) B. Due Date (DD) C. Project Date (PD) D. Reporting Date (RD)

A - The date through which the project has provided actual status and accomplishments is called the data date. It is also known as the as-of date or the status date [PMBOK 5th edition, Page 184] [Project Communications Management]

Which of the following is inaccurately represented by the term Progressive elaboration? A. Changes to project scope B. Rolling wave planning C. Detailing out the product requirements which were developed during the initiation process. D. Production of fabrication and construction drawings from the design drawings for a chemical plant.

A - The distinction between Progressive elaboration and Scope Creep needs to be understood since the two terms are different. The changes to scope (especially in an uncontrolled manner) are called scope creep. In contrast, Progressive elaboration involves building on, or elaborating the output of a previous phase. [PMBOK 5th edition, Page 6] [Project Framework]

After one year of construction, an office building is scheduled to be completed on 30th January. The landscaping work needs to start 15 days prior to completion of the building. Which of the following relationships most likely represents the relationship of the start of landscaping work to the completion of the office building? A. Finish-to-start with a 15 day lead B. Start-to-finish with a 15 day lead C. Finish-to-start with a 15 day lag D. Start-to-finish with a 15 day lag

A - The landscaping work needs to start on completion of the office building, so it is a finish-to-start relationship. Since it needs to start 15 days before completion of the building, it requires a lead of 15 days. Hence the answer is finish-to-start with a 15 day lead. [PMBOK 5th edition, Page 156] [Project Time Management]

A control chart is used to determine whether or not a process is stable or has predictable performance. When a process is within acceptable limits, the process need not be adjusted. What are the upper and lower control limits usually set as? A. + / - 3 sigma B. + / - 6 sigma C. + / - 2 sigma D. + / - 1 sigma

A - The upper / lower control limits are normally set at + / - 3 sigma. [PMBOK 5th edition, Page 238] [Project Quality Management]

While the five process groups are typically completed in order, they often overlap with each other throughout the project. Which two process groups do not overlap unless a project is canceled? A. Initiating and Closing B. Initiating and Executing C. Initiating and Monitoring and Control D. Planning and Closing

A - Throughout the project, the different process groups often are conducted at the same time except for the initiating and closing, which are separated by the other three groups. [PMBOK 5th edition, Page 51] [Project Framework]

A. Project manager

A PM for a small construction company has a project that was budgeted for $130,000 over a six-week period. According to her schedule, the project should have cost $60,000 to date. However, is has cost $90,000 to date. The project is also behind schedule, because the original estimates were not accurate. Who has the PRIMARY responsibility to solve this problem? A. Project manager B. Senior management C. Project sponsor D. Manager of the project management office

B. Beta distribution

A PM is using weighted average duration estimates to perform schedule network analysis. Which type of mathematical analysis is being used? A. Critical path method B. Beta distribution C. Monte Carlo D. Resource leveling

B. Create lessons learned

A company is making an effort to improve its project performance and create historical records of past projects. What is the BEST way to accomplish this? A. Create project management plans B. Create lessons learned C. Create network diagrams D. Create status reports

C. The project is progressing at 89 percent of the rate planned

A cost performance index (CPI) of .89 means: A. At this time, we expect the total project to cost 89 percent more than planned B. When the project is completed, we will have spend 89 percent more than planned C. The project is progressing at 89 percent of the rate planned D. The project is getting 89 cents out of every dollar invested

C. Mandatory dependency

A dependency requiring that design be completed before manufacturing can start is an example of a(n): A. Discretionary dependency B. External dependency C. Mandatory dependency D. Scope dependency

B. Work breakdown structure

A detailed project schedule can be created only after creating the: A. Project budget B. Work breakdown structure C. Project management plan D. Detailed risk assessment

A. Organizational project management

A framework for keeping an organization focused on its overall strategy is: A. Organizational project management B. The PMBOK guide C. Project governance D. Portfolio management

D. Generally accepted rule

A heuristic is BEST described as: A. Control tool B. Scheduling method C. Planning tool D. Generally accepted rule

B. Reasons projects are initiated

A market demand, a business need, and/or a legal requirement are examples of: A. Reasons to hire a project manager B. Reasons projects are initiated C. Reasons people or businesses become stakeholders D. Reasons to sponsor a project

B. Team buy-in

A new PM has asked you for advice on creating a WBS. After you explain the process to her, she asks you what software she should use to create the WBS and what she should do with it when it is completed. You might respond that it is not the picture that is the most valuable result of creating a WBS. The most valuable result of a WBS is: A. A bar chart B. Team buy-in C. Activities D. A list of risks

D. Compress the schedule

A new product development project has four levels in the work breakdown structure and has been sequences using the precedence diagramming method. The activity duration estimates have been received. What should be done NEXT? A. Create an activity list B. Begin the work breakdown structure C. Finalize the schedule D. Compress the schedule

A. Communicating with the customer

A new project manager is being mentored by a more experienced PMP-certified PM. The new PM is finding difficulty finding enough time to manage the project because the project scope is being progressively elaborated. The PMP advises that the basic tools for project management, such as work breakdown structure, can be used during project executing to assist the project manager. For which of the following can a WBS be used? A. Communicating with the customer B. Showing calendar dates for each work package C. Showing the functional managers for each team member D. Showing the business need for the project

B. It increases the project risk

A project has three critical paths. Which of the following BEST describes how this affects the project? A. It makes it easier to manage B. It increases the project risk C. It requires more people D. It makes it more expensive

C. The sponsor

A project is plagued by changes to the project charter. Who has the primary responsibility to decide if these changes are necessary? A. The project manager B. The project team C. The sponsor D. The stakeholders

D. The project manager creates the project management plan input from the team.

A project management plan should be realistic in order to be used to manage the project. Which of the following is the BEST method to achieve a realistic project management plan? A. The sponsor creates the project management plan based on input from the project manager. B. The functional manager creates the project management plan based on input from the project manager. C. The project manager creates the project management plan based on input from senior management. D. The project manager creates the project management plan input from the team.

B. Create an activity list before creating a network diagram

A project manager does not have much time to spend on planning before the mandatory start date arrives. He therefore wants to move through planning as effectively as possible. What advice would you offer? A. Make sure you have a signed project charter and then start the WBS B. Create an activity list before creating a network diagram C. Document all the known risks before you document the high-level assumptions D. Finalize the quality management plan before you determine quality metrics

C. Monitoring and controlling

A project manager gets a call from a team member notifying him that there is a variance between the speed of a system on the project and the desired or planned speed. The project manager is surprised because that performance measurement was not identified in planning. If the project manager then evaluates whether the variance warrants a response, he is in which part of the project management process? A. Initiating B. Executing C. Monitoring and controlling D. Closing

D. Reserves

A project manager has received activity duration estimates from his team. Which of the following does he need in order to complete the Develop Schedule process? A. Change requests B. Schedule change control system C. Recommend corrective actions D. Reserves

C. Complex

A project manager has very little project experience, but he has been assigned as the project manager of a new project. Because he will be working in a matrix organization to complete his project, he can expect communications to be: A. Simple B. Open and accurate C. Complex D. Hard to automate

D. A team that is characterized by poor performance, low morale, high levels of conflict, and high turnover

A project manager is appointed to head a highly technical project in an area with which this person has limited familiarity. The project manager delegates the processes of Develop Schedule, Estimate Costs, Define Activities, and Estimate Activity Resources to various project team members, and basically serves as an occasional referee and coordinator of activities. The results of this approach are likely to beL A. A team functioning throughout the project at a very high level, demonstrating creativity and commitment B. A team that initially experiences some amounts of confusion, but that after a period of time becomes a cohesive and effective unit C. A team that is not highly productive, but that stays together because of the work environment created by the project manager D. A team that is characterized by poor performance, low morale, high levels of conflict, and high turnover

D. Determine options for schedule compression and present management with his recorded option

A project manager is in the middle of executing a very large construction project when he discovers the time needed to complete the project is longer than the time available. What is the BEST thing to do? A. Cut product scope B. Meet with management and tell them the required date cannot be met C. Work overtime D. Determine options for schedule compression and present management with his recorded option

B. Obtain historical records and guidance from the project management office (PMO).

A project manager is managing his second project. It started one month after the first, and both are in process. Though his first project is small, this one seems to be growing in size every day. As each day passes, the project manager is beginning to feel more and more in need of help. The project manager has recently heard that there was another project in the company last year that is similar to his second project. What should he do? A. Contact the other project manager and ask for assistance. B. Obtain historical records and guidance from the project management office (PMO). C. Wait to see if the project is impacted by growth in scope. D. Make sure the scope of the project is agreed to by all the stakeholders.

D. Schedule management plan

A project manager is taking over a project from another PM during project planning. If the new PM wants to see what the previous PM planned for managing changes to the schedule, it would be BEST to look at the: A. Communications management plan B. Update management plan C. Staffing management plan D. Schedule management plan

A. Functional

A project manager is trying to complete a software development project, but cannot get enough attention for the project. Resources are focused on completing process-related work, and the project manager has little authority to assign resources. What form of organization must the project manager be working in? A. Functional B. Matrix C. Expediter D. Coordinator

C. It gives the project manager authority

A project manager is trying to convince management to use more formal project management procedures and has decided to start improving the company's project management by obtaining a project charter for each of his projects. Which of the following BEST describes why a project charter would help the project manager? A. It describes the details of what needs to be done B. It lists the names of all team members C. It gives the project manager authority D. It describes the history of similar or related projects

C. The WBS dictionary

A project manager may use ____ to make sure the team members clearly know what work is included in each of their work packages. A. The project scope statement B. The product scope C. The WBS dictionary D. The schedule

B. They are working on a process and not a project

A project team is working on manufacturing a new product, but they are having difficulty creating a project charter. What is the BEST description of the real problem? A. They have not identified the project objectives B. They are working on a process and not a project C. The end date has not been set D. They have not identified the product of the project

B. The functional manager

A project team member is talking to another team member and complaining that many people are asking him to do things. If he works in a functional organization, who has the power to give direction to the team member? A. The project manager B. The functional manager C. The team D. The PMO

C. Document the outcome of the change request

A scope change has been suggested by one of the stakeholders on the project. After careful consideration and a lot of arguing, the change control board has decided to reject the change. What should the PM do? A. Support the stakeholder by asking the board for the reason for the rejection B. Suggest to the stakeholder that the next change they request will be approved C. Document the outcome of the change request D. Advise the change control board to make sure they create approval processes before the next change is proposed

A. Parametric estimating

A team member from research and development tells you that her work is too creative to provide you with a fixed single estimate for the activity. You both decide to use the average labor hours to develop a prototype (from past projects). This is an example of which of the following? A. Parametric estimating B. Three-point estimating C. Analogous estimating D. Monte Carlo Analysis

C. Monitoring and controlling

A team member notifies the project manager that the activities comprising a work package are no longer appropriate. It would be BEST for the project manager to be in what part of the project management process? A. Corrective action B. Integrated change control C. Monitoring and controlling D. Project closing

B. Manage when and in what sequence work is done

A work authorization system can be used to: A. Manage who does each activity B. Manage when and in what sequence work is done C. Manage when each activity is done D. Manage who does each activity and when it is done

C. Identify the level at which individual elements are found

A work breakdown structure numbering system allows the project team to: A. Systematically estimate the costs of work breakdown structure elements B. Provide project justification C. Identify the level at which individual elements are found D. Use it in the project management software

Which of the following is the BEST thing for a project manager to do in the Conduct Procurements process? A. Answer seller's questions about the procurement documents. B. Perform market research. C. Evaluate risks. D. Select a contract type

A. Answer seller's questions about the procurement documents. Risk analysis is done before the Conduct Procurements process begins, as procurement is a risk mitigation and transference tool. Selecting a contract type is part of Plan Procurement Management, Market research is also performed in the Plan Procurement Management process, to enable selction of the appropriate sellers for the needs of the project. During the Conduct Procurement process, the project manager answers questions submitted by prospective sellers.

A project manager overhears a conversation between two stakeholders who are discussing how unhappy they are with the impacts of the project on their own departments. Stakeholders A asks if the project is on time, and Stakeholder B replies that the SPI is 1.05. Stakeholder B responds that he is not sure. What is the BEST thing for the project manager to do? A. Arrange a meeting with both stakeholders to allow them to voice any concerns they may have. B. Make sure the stakeholders see that the project manager overheard. Then ask them to direct any questions to the project manager in writing. C. Send both stakeholders a copy of the issue log and ask for additional comments. D. Make a presentation to all the stakeholders regarding the status of the project.

A. Arrange a meeting with both stakeholders to allow them to voice any concerns they may have. The correct answer is A. This is another question with more than one right answer. Would asking for something in writing be the best way to communicate? In this particular situation, asking for the concern to be in writing might alienate the stakeholders. The issue log is where the issue should be listed, but the situation does not say if the project manager knows what the stakeholders' concern is. Therefore, using the issue log cannot be the best choice. Why not make a presentation to all the stakeholders regarding the status of the project? The project manager already knows stakeholders A and B have the concern, not all the stakeholders. This problem would likely require informal verbal communication to discover the real problem. Arranging a meeting with the concerned stakeholders is therefore the best choice (p. 386).

Your company is in the middle of negotiating to win a major project. The project nicely fits into the company's strategic plan, but will require some of the best resources the company has in order to meet the quality objectives. Management is excited, because the project represents the opportunity to generate good profits for the company and will put all their company expertise to the test. The prospective team members are also excited because the client is prestigious. In order to meet the schedule objectives for the project, you need to start committing jobs to new and critical project resources now, while the contract is still under negotiation. What should you do? A. Ask the customer for a letter of intent. B. Explain to management that this would not be good idea at this point. C. Wait until the las minute to do so. D. Only start to collect resumes and do not commit any funds.

A. Ask the customer for a letter of intent. This is a though, but common, situation. Requesting a letter of intent from the customer is commonly done. Even though a letter of intent is not binding in a court of law. It does make the seller fell more comfortable about expending funds before a contract is signed. Notice how much of this question is extraneous. Expect questions on the exam that are wordy, distracting from the real problems at hand, and have whole paragraphs of information that is irrelevant to the real problem (p.491).

Effective listening involves: A. Attending to the speaker without distractions, confirming what the speaker says, and taking note of body language. B. Asking opening and closing questions, restating the speaker's statements, and mirroring non-verbal cues. C. Listening without judgment, summarizing every few sentences, and pointing out body language cues. D. Taking notes, providing feedback, and expressing empathy.

A. Attending to the speaker without distractions, confirming what the speaker says, and taking note of body language. You do not necessarily take notes or express empathy, although the latter might be useful. You do not mirror the speaker's non-verbal cues, nor do you point them out. The best description of effective listening is attending to the speaker without distractions, confirming what the speaker says, and taking not of body language.

Inputs to the Direct and Manage Project Work process include all the following Except: A. Communications requirements, validated changes, and action items. B. Risk tolerances, the project management plan, and the project management information system. C. The project management plan, approved corrective actions, and work instructions. D. Historical information, defect repair orders, and the scope management plan.

A. Communications requirements, validated changes, and action items. Here is another question that requires you to think about each part of each choice to determine the correct answer. Validated changes are outputs of Control Quality Management and inputs to Monitor and Control Project Work, making that the exception. All of the other items listed in the choices are inputs to Direct and Manage Project Work (p.79).

A project manager and his team are using an Ishikawa diagram, trying to determine how various factors might have contributed to project problems. The project manager is invoved in which part of the quality management process? A. Control Quality B. Utilize Quality Tools C. Perform Quality Assurance D. Plan Quality Management

A. Control Quality The team is addressing problems that have impacted the quality on the project, so they must be in Control Quality. The Quality Management Process: - Plan Quality Management - Perform Quality Assurance - Control Quality Quality is defined as the degree to which the project fulfills requirements.

The customer wants to make a change to the project scope. The BEST thing for the project manager to evaluate is the: A. Effect of the change on the project schedule, cost, quality, risk, resources, and customer satisfaction. B. Effect of the change on scope management. C. Effect of the change on the project scope. D. Effect of the change on the project baselines.

A. Effect of the change on the project schedule, cost, quality, risk, resources, and customer satisfaction. The first action is to evaluate the impact of a change. An evaluation encompassing the impact of the change on the project schedule, cost, quality, risk, resources, and customer satisfaction is required (p.140).

Which project management process group generally takes the MOST project time and resources? A. Executing B. Design C. Integration D. Planning

A. Executing Did you notice that planning and executing are the only process groups offered as choices? Therefore, design and integration can be eliminated as options. Doing the actual work (in executing) will generally take the most project time and resources.

Which process group focuses on completing the requirements of the project? A. Executing B. Initiating. C, Closing. D. Palning

A. Executing Project executing is where work is done to produce the product of the project.

Your project no longer ties into the company's objectives. What is the BEST thing to do? A. Extend the schedule. B. Decrease the cost. C. Change the CPI. D. Change the target opportunity cost.

A. Extend the schedule. The correct answer is A. Be very careful, as this simple question may uncover many gaps in your knowledge. The question is really asking, "The project priority has become lower, what should you do?" Although projects should relate to the company's objectives, many do not. Why would you decrease costs? In order to decrease costs, you must decrease scope or quality. Nothing here indicates this is required. You are still chartered to do the same project. One cannot arbitrarily change the CPI; the CPI changes based on changes in project performance. Target opportunity cost is a made-up term. The only correct choice is to extend the schedule and allow flexibility to accommodate the delays and other risks a low priority adds to the project (Page: 139).

Project setup costs are an example of: A. Fixed costs. B. Overhead costs. C. Opportunity costs. D. Variable costs.

A. Fixed costs. Setup costs do not change as production on the project changes. Therefore, they are fixed costs. Examples: setup, rent, utilities, etc.

The Estimate Activity Resources process includes reviewing the schedule management plan and: A. Further breaking down activities, and soliciting expert judgement. B. Creating a resource breakdown structure, and developing a schedule. C. Reviewing the cost management plan, and crashing the project. D. Creating a company calendar and reviewing resource availability.

A. Further breaking down activities, and soliciting expert judgement. The only choice that is completely correct is "Further breaking down activities, and soliciting expert judgment." Can you identify the incorrect element in each of the other choices? (p.206) Creating a resource breakdown structure is an output of the *Estimate Activity Resource* process. So creating a resource breakdown structure is part of the Estimate Activity Resource process. *Develop Schedule* is a own process which has the resource breakdown structure and the activity resource requirements as input. So that cannot be the right answer. Reviewing the cost management plan is done during the Cost Management processes. And the creation of the cost management plan is done after the schedule is done. Reviewing resource availability is part of the *Estimate Activity Resource* process but creating a company calendar which identifies working and nonworking days not. Estimate Activity Resources—The process of estimating the type and quantities of material, human resources, equipment, or supplies required to perform each activity.

A project manager is worried about the costs on the project. There is a lot of rework and scrap and inventory costs are rising. If you were a mentor to this project manager, what is the BEST advice you could offer? A. Improve quality training and throw a milestone party. B. Look at marginal costs. C. Look at sunk costs. D. Such effects are the nature of the project and not to worry.

A. Improve quality training and throw a milestone party. Focusing on quality by improving quality training can improve the overall quality process. Scrap=Schrott marginal cost: For example, if producing additional vehicles requires building a new factory, the marginal cost of the extra vehicles includes the cost of the new factory. In practice, this analysis is segregated into short and long-run cases, so that, over the longest run, all costs become marginal. Looking at the marginal costs doesn't solve the problem of the rework and scrap and inventory.

A seller has withdrawn from a project midway through the project executing processes, and another seller is taking over. The project manager meets with the replacement seller and his crew. In this meeting, what should the project manager do FIRST? A. Introduce the team members, and identify the roles and responsibilities. B. Review the schedule. C. Create a communications management plan. D. Communicate the objectives of the project.

A. Introduce the team members, and identify the roles and responsibilities. The project objectives and schedule are included in the contract. A communications management plan was developed in planning, although may require updating with the addition of new people on the project. It is important that the new seller understand who is who on the project, so introductions of the team member and identification of their roles and responsibilities should occur first. (p.335).

The Java development of a project is outsourced to India. The project schedule is starting to slip. What is the LEAST likely cause of the slippage? A. Lack of competent programmers B. Internationalization C. Communication D. Cultural influences

A. Lack of competent programmers Most often, projects outsourced outside of the country encounter communication and time zone barriers. The procurement process should have assured the project manager the sellers were skilled (p.500).

A project manager can BEST resolve the differences between the requirements of one stakeholder and those of another by making which of these statements? A. Let's look at why there is a difference of opinion on the requirements. B. This discussion is getting too heated. Let's regroup to solve the problem tomorrow. C. I have made the decision to resolve the problem this way. D. There are many points on which we agree. I am certain if we focus on them, we will find a solution.

A. Let's look at why there is a difference of opinion on the requirements. It is imperative that requirements be as clear as possible before the project management plan is finalized. Focusing on points of agreement is smoothing, adjourning the discussion until tomorrow is avoidance and making in decision unilaterally is forcing. Only problem solving (determining the cause for differing opinions regarding the requirements) helps to clarify the requirements.

A project has tight budget when you begin negotiationg with a seller for a piece of equipment. The seller has told you the equipment price is fixed. Your manager has told you to negotiate the cost with the seller. What is your BEST course of action? A. Make a goog faith effort to find a way to decrease the cost. B. Holde the negotiations, but only negotiate other aspects of the project. C. Cancel the negotiations. D. Postpone negotiations until you can convince your manager to change his mind.

A. Make a goog faith effort to find a way to decrease the cost. There is always a way to decrease costs on the project. The best choice is to attempt to find a way to decrease the cost.

Many more changes were made to the project during project executing than had been expected. What is the BEST thing for the project manager to do now? A. Make changes as needed, but maintain a schedule baseline. B. Make only the changes approved by management. C. Talk to management before any changes are made. D. Wait until all changes are known, print out a new schedule, and revise the baseline.

A. Make changes as needed, but maintain a schedule baseline. Management does not have to be consulted on, or to approve, all changes. As changes are approved, the project management plan and project documents are updated accordingly. This includes updating all impacted baselines (p.140).

Your customer has asked for a 2,000-call capacity for the new call center project. However, one of your company's technical experts believes a 3,000-call capacity can be reached. Another thinks that based on the technical needs of the customer, the capacity needs to be only 1,500 calls. A. Meet with the customer to better understand the reasons behind the 2,000-call capacity. B. Set the objective at 2,000 calls. C. Set the objective at 3,000 calls. D. Meet with the technical experts, and helpt them to agree on an objective.

A. Meet with the customer to better understand the reasons behind the 2,000-call capacity. The fact that such a discussion is occurring indicates a lack of clarity as to why the customer requested the 2,000-call capacity. Generally, a difference in requirements is resolved in favor of the customer. Howerver, it is the project manager's responsibility to inform the customer of other options.

Assuming that the ends of a range of estimates are +/- 3 sigma from the mean, which of the following range estimates involves the LEAST risk? A. Optimistic = 26 days, most likely = 30 days, pessimistic = 33 days. B. 30 days, plus or minus five days. C. Mean of 28 days D. 22 to 30 days

A. Optimistic = 26 days, most likely = 30 days, pessimistic = 33 days. This one drove your crazy, didn't it? Reread the question! A mean of 28 days is not a range estimate, and so must be eliminated as a possible answer. When you look a the ranges of each of the other choices, you will see that 30 days, plus or minus 5 days = a range of 10 days. The range of 22 to 30 days = a range of 8 days. An optimistic estimate of 26 days, most likely estimate of 30 days, and pessimistic estimate of 33 days represents a range of 7 days. The estimate with the smallest range is the least risky, and therefore the correct choice. Did you realize the words +/- 3 sigma are extraneous? Practice reading questions that are wordy and have extraneous data.

A work breakdown structure is an input to all of the following processes EXCEPT: A. Perform Quality Assurance. B. Identify Risks. C. Estimate Costs. D. Define Activities.

A. Perform Quality Assurance. The WBS is used in many different processes, but is not integral to the Perform Quality Assurance process. *Perform Quality Assurance* is the process of auditing the quality requirements and the results from quality control measurements to ensure that appropriate quality standards and operational definitions are used. The key benefit of this process is it facilitates the improvement of quality processes.

Which of the following is the MOST appropriate thing to do in the closing process group? A. Perform procurement audits. B. Inspect work packages. C. Obtain formal acceptance of the project scope from the customer. D. Do project performance appraisals.

A. Perform procurement audits. Inspecting work packages is a monitoring and controlling function. Many people get tricked by the choice of "obtaining formal acceptance of the project scope from the customer." This can occur throughout the project. Closing involves formal acceptance of the product of the project. Project performance appraisals are done in project executing. Only procurement audits audits are done in project closing. (p.92)

The project manager has worked closely with the team to come up with contingency plans. Which of the following BEST describes contingency plans? A. Planned responses to risk events B. Planned workarounds C. Planned risk control procedures D. Planned responses based on probability analysis

A. Planned responses to risk events Workarounds by definition are unplanned. Responses can be based on probability analysis is too narrow an answer. Risk control procedures encompass all of risk management, not just contingencies. Contingency plans are best described as planned responses to risk events (p.558).

Which of the following is the MOST appropriate thing to do during the executing process group? A. Recommend updates to the project management plan. B. Forecacst when the next milestone will be completed. C. Dertermine if project controls need to be updated. D. Recalculate how long the project will take.

A. Recommend updates to the project management plan. Creating forecasts, recalculating estimates to complete, and evaluating the effectiveness of project controls all occur in project monitoring and controlling. Update to the project management plan are outputs of the Direct and Manage Project Work process, which occurs in project exectuting, as well as many other processes.

You are managing a tow-year project involving staff from several departments. The project is on schedule and within budget. A key team member leaves for a four-week vacation without completing a highly technical and specialized activity assigned to him (activity A). The project team cannot being activity B or activity E (a critical path activity) until activity A is completed. Activity A has three days float and is not on the critical path. A team member, a seller, and a non-team member work overtime to complete activity A within its float time. You need to reimburse the non-team member's department and pay the seller at an overtime rate. What action should you take? A. Reevaluate your communications management plan. B. Send a complaint letter to the key team member's boss, and ask him to fund the extra cost expended. C. Pay the cost out of your project reserves. D. Thank the others for filling in, but tell them not to waste time on non-critical path activities.

A. Reevaluate your communications management plan. Notice the issue of the key team member leaving has already occurred. Although the activity was not on the critical path, it would have impacted a critical path activity if it was not completed within its three-day float. Therefore, advising the participants not to waste time on non-critical path activities is not correct. The best choice is to discover why the problem happened so you can prevent similar situations in the future. Only a reevaluation of the communications management plan looks at the cause of the problem (p.391).

In the process of reviewing the status of your team's work assignments, you learn the project has fallen behind schedule by one week. The project finish date is still two months out and you think you can recover the time over the next month or so. What is the BEST course of action for reporting the project status? A. Report the project one week behind schedule and include recommended corrective actions. B. Report the project on schedule. Most project management plans are not accurate to less than one or two weeks anyway. C. Report the project on schedule. this is not a significant slippage and there is still time to recover. D. Report the project one week behind schedule and then issue a new report next week showing the problem fixed.

A. Report the project one week behind schedule and include recommended corrective actions. Reporting that the project is on schedule is unethical. It is best to report the true status of the project and your plan of action to resolve the problem.

A new testing center is going to be constructed over the next two years. The project sponsor and the project manager have been identified and high-level estimates begun. It is expected that the project can be completed within budget and on schedule. The only difficulty is in acquiring the number of resources with the correct expertise to complete the work. Under these circumstances, the proejct manager should spend more time creating: A. Resource-limited schedule. B. Risk analysis. C. Responsibilty chart. D. Responsibility assignment matrix.

A. Resource-limited schedule. A responsibility assignment matrix shows who is responsible for what, as does a responsibility chart. These will not help you manage the project with limited resources. Only a resource-limited schedule will help meet the defined need. A risk analysis may help, but not as much as a resource-limited schedule. Resource Leveling: Resource leveling is used to produce a resource-limited schedule. Leveling lengthens the schedule and increases cost in order to deal with a limited amount of resources, resource avilablility, and other resource constraints. A little-used function in project management software, this technique allows you to level the peaks and valleys of the schedule from one month to another, resulting in a more stable number of resources used on your project. You might level the resources if your project used 5 resources one month. 15 the next, and 3 the next, of some other up-and-down pattern that was not an acceptable use of resources. Leveling could also be used if you did not have 15 resources available and preferred to lenghten the project (which would be a result of leveling) instead of hiring more resources.

You have started the planning process for your US $32 million biomass power generator project when you are informed that your company has been taken over by a Japanese firm. You have struggled to satisfy the requirements of legal, technical, and business stakeholders though the balancing act has left some stakeholders upset. You are warned that the new management style is more consensus-based. Which of the following must you now watch out for? A. Schedule delays B. Tighter cost control C. Kaizen quality measures. D. Autocratic leaderhsip

A. Schedule delays Consensus management takes time because everyone must be in agreement before a decision can be made (p.360). Consensus is a management style which involves problem solving in a group, and making decisions based on group agreement. *Delphi technique.* The Delphi technique is a way to reach a consensus of experts. Project risk experts participate in this technique anonymously. A facilitator uses a questionnaire to solicit ideas about the important project risks. The responses are summarized and are then recirculated to the experts for further comment. Consensus may be reached in a few rounds of this process. The Delphi technique helps reduce bias in the data and keeps any one person from having undue influence on the outcome.

Two team members are having a big disagreement about how to accomplish an activity. The project is low risk and is taking place in a strong matrix environment with 34 team members. To resolve this dispute, the project manager should: A. Send the team members to their managers for advice on resolving the dispute. B. Ask for a benchmark analysis. C. Have the team members compromise. D. Make the decision.

A. Send the team members to their managers for advice on resolving the dispute. The correct answer is A. In a strong matrix environment, the project manager has more power than the functional manager and may be able to make resource decisions on her own. However, making this decision is incorrect, as this is not a resource decision; it is a technical one, and technical issues are managed by the team members' managers. A benchmark analysis provides information about the methods and performance used by other companies and departments. It would be better to look for internal expertise before engaging in such a time-consuming activity. It is not wise for a project manager to suggest a compromise when the issue is a technical one. The only viable choice is to send the team members to their managers for advice on resolving the dispute (p.340).

A retail chain has a long history of hiring contractors to design and build new stores for them as they expand around the world. An engineer within that organization has just been promoted to project manager. He is studying the science of project management and is getting confused with terms. You are asked to mentor him. He asks you, "Which should I expect to occur more frequently on an average project, project closure or procurement closure?" Which of the following is the BEST answer? A. Since there are typically many contracts in one project, procurement closure occurs more frequently. B. Since all the work is always done under contract, project closure occurs more often. C. Every time we close out a contract, we close out a project. D. All projects are different and there is no real answer to this question.

A. Since there are typically many contracts in one project, procurement closure occurs more frequently. To answer this question, forget all the extra words and focus just on the question; which occurs more frequently, project closure or procurement closure? If you have never worked with a contract, you are unlikely to guess the correct answer. For large projects, you must assume there are procurements, and typically more than one procurement on each project. That being said, what is your answer now? Can you see that the only correct choice is that project closure occurs only once and procurement closure may occur more frequently?

Which of the following BEST describes the relationship between standard deviation and risk? A. Standard deviation tells you how uncertain the estimate is. B. There is no relationship. C. Standard deviation tells you if the estimate is accurate. D. Standard deviation tells you if the estimate includes a pad.

A. Standard deviation tells you how uncertain the estimate is. An estimate can have a wide range and still be accurate if the item estimated includes identified risks. There is no such thing as a pad in proper project management. An estimate might be inflated, but it is a calculated reserve to account for risks, not arbitrary padding. The standard deviation tells you the amount of uncertainty or risk involved in the estimate for the activity. (p.212)

A parking lot fencing project was bid at $11 per foot, and one commpany is doing all the work. The parking lot has four equal sides of 125 feet and requires the installation of a six-foot diameter culvert on one side. Fencing should be installed at a rate of 100 feet per day. The culvert installation will cost US $500 and take one day to complete. The culvert must be installed before work can begin on that side of the fence. After three days of work, one side is complete, another has 75 feet installed, and the culvert is completely installed. So far, $2,700 of the total project budget has been used. What is the current status of the project? A. The budget is neutral with a cost variance of $0. B. It is under budget, with a cost variance of +$500 due to the completion of the culvert installation. C. It is over budget with a cost variance of +$125. D. It is over budget, with a cost variance of -$1,100.

A. The budget is neutral with a cost variance of $0. EV is the value of the work completed. In this case one side is done ($11 x 125 = $1,375), 75 feet of the second side is done ($11 x 75 = $825) and the culvert is complete ($500) for a total of $2,700. Since the AC is $2700, CV = $0. You are budget neutral.

The project manager is having a very difficult time keeping the project schedule on track. The project requires 220 people to complete it. All the project problems have been fixed to the project manager's satsifaction, the schedule performance index (SPI) is currently 0.67, the cost performance index (CPI) is 1.26, there are 23 activities on the critical path, and the project PERT duration is 26. Under these circumstances, the monthly status report should report: A. The issues and options. B. That the project will be late. C. That the project cost is behind budget. D. That the project is doing well.

A. The issues and options. The professional and social responsibility of the project manager requires that the truth be told. Reporting that the project is doing well is lying and unethical. Reporting that the project will be late is not the correct choice because you do not KNOW the project will be late. There is time to fix the problems. Your would not report that the project is behind budget, because there are no cost problems illustrated in the question. As in any report, you need to state the issues and options.

What does a benefit cost ratio (BCR) of 2.1 mean? A. The payback is 2.1 times the cost. B. The cost is 2.1 times the profit. C. The costs are 2.1 times the benefits. D. The profit is 2.1 times the costs.

A. The payback is 2.1 times the cost. This formula compares benefits to costs, not just profit. Payback is equated to benefits here (p. 121). Cost-Benefit Analysis compares the expected costs of the project to the potential benefits it could bring the organization. (For project selection purposes, benefits are the same as revenue. Remember that revenue is not the same as profit.) This analysis results in the calculation of a benefit cost ratio, which can be expressed as a decimal or a ratio. A benefit cost ratio of greater than 1 means the benefits are greater than the costs. A benefit cost ration of less than 1 means the costs are greater than the benefits. A benefit cost ratio of 1 means the cost and benefits are the same. Revenue is the total amount of income generated by the sale of goods or services related to the company's primary operations. Profit, conversely, is the infamous bottom line. This is called net profit, because it is the amount of income that remains after accounting for all expenses, debts, additional income streams and operating costs. In between the top and bottom line, the term "profit" may emerge in the context of gross profit and operating profit.

At the end of a project, a project manager determines the project has added four areas of functionality and three areas of performance. The customer has expressed satisfaction with the project. What does this mean in terms of the success of the project? A. The project was unsuccessful because it was gold plated. B. The project was an unqualified success. C. The project was successful because the team had a chance to learn new areas of functionality and the customer was satisfied. D. The project was unsuccessful because the customer being happy means they would have paid more for the work.

A. The project was unsuccessful because it was gold plated. Gold plating a project wastes time and probably cost. It makes the project unsuccessful (p.296).

A project team is working on manufacturing a new product, but they are having difficulty creating a project charter. What is the BEST decription of the real problem? A. They are working on a process and not a project. B. They have not identified the project objectives. C. The end date has not been set. D. They have not identified the product of the project.

A. They are working on a process and not a project. Manufacturing a product is an ongoing process; it is operational work, not project work. Therefore, the manufacturing team would have no reason to create a project charter and would have difficulty doing so if they tried, because of the ongoing nature of the work. If the question referred to a team developing a new product rather than manufacturing one, however, that would qualify as a project (p.22). Operations management is responsible for overseeing, directing, and controlling business operations. Operations evolve to support the day-to-day business, and are necessary to achieve strategic and tactical goals of the business. Examples include: production operations, manufacturing operations, accounting operations, software support, and maintenance.

D. It repeats itself every month

All of the following are characteristics of a project EXCEPT: A. It is temporary B. It has a definite beginning and end C. It has interrelated activities D. It repeats itself every month

D. Lessons learned

All of the following are parts of an effective change management plan EXCEPT: A. Procedures B. Standards for reports C. Meetings D. Lessons learned

D. Setting up a project control system

All of the following are parts of the Direct and Manage Project Work process EXCEPT: A. Identifying changes B. Using a work breakdown structure C. Implementing corrective actions D. Setting up a project control system

A. Scope management plan

All of the following are parts of the scope baseline EXCEPT the: A. Scope management plan B. Project scope statement C. Work breakdown structure D. WBS Dictionary

B. Create a project scope statement

All of the following must be performed during project initiating EXCEPT: A. Identify and document business needs B. Create a project scope statement C. Divide a large project into phases D. Accumulate and evaluate historical information

D. Performing cost-benefit analysis

All of the following occur during the Close Project or Phase process EXCEPT: A. Creating lessons learned B. Formal acceptance C. Performance reporting D. Performing cost-benefit analysis

A. Develop project charter

All of the following occur during the planning process group EXCEPT: A. Develop project charter B. Create WBS C. Estimate costs D. Sequence Activities

D. Complete lessons learned

All technical work is completed on the project. Which of the following remains to be done? A. Validate Scope B. Plan Risk Responses C. Create a staffing management plan D. Complete lessons learned

C. You are progressing at 76 percent of the rate originally planned

An SPI of .76 means: A. You are over budget B. You are ahead of schedule C. You are progressing at 76 percent of the rate originally planned D. You are progressing at 24 percent of the rate originally planned

D. Is not on the critical path

An activity has an early start of day 3, a late start of day 13, an early finish of day 9, and a late finish of day 19. The activity: A. Is on the critical path B. Has a lag C. Is progressing well D. Is not on the critical path

A. Project archives

An output of the Close Project or Phase process is the creation of: A. Project archives B. A project charter C. A project management plan D. A risk management plan

A new project manager is being mentored by a more experienced certified project management professional (PMP). The new project manager is having difficulty finding enough time to manage the project because the product and project scope are being progressively elaborated. The PMP- certified project manager mentions that the basic tools for project management, such as a work breakdown structure, can be used during project executing to assist the project manager. For which of the following can a work breakdown structure be used? A. Communicating with the customer B. Showing calendar dates for each work package C. Showing the functional managers for each team member D. Showing the business need for the project

Answer A Explanation A WBS does not show dates or responsibility assignments (choices B and C). Those are included on the bar chart and possibly in the communications management plan. The business need (choice D) is shown in the project charter. Never thought that a WBS could be shown to the customer? Made you think! Of course it could be used for that purpose. In this situation, the product and project scope are being fine tuned. It would save the project manager time to effectively manage progressive elaboration if the WBS was used to assist. The WBS helps ensure everyone understands the scope of the work.

Outputs of the Plan Risk Responses process include: A. Residual risks, fallback plans, and contingency reserves. B. Risk triggers, contracts, and a risk list. C. Secondary risks, process updates, and risk owners. D. Contingency plans, project management plan updates, and change requests.

Answer A Explanation A risk list (choice B), process updates (choice C), and change requests (choice D) are not outputs of the Plan Risk Responses process. The items in choice A are all outputs of the Plan Risk Responses process, making choice A the correct answer.

You have been assigned to manage the development of an organization's first Web site. The site will be highly complex and interactive, and neither your project team nor the client has much experience with Web site development. The timeline is extremely aggressive. Any delay will be costly for both your firm and the client. You have a project sponsor and have achieved agreement and Sign-off on both the project charter and the project management plan. Client personnel have been kept fully informed of the project's progress through status reports and regular meetings. The project is on schedule and within the budget, and a final perfunctory review has been scheduled. Suddenly you hear that the entire effort may be cancelled because the product developed is totally unacceptable. What is the MOST likely cause of this situation? A. A key stakeholder was not adequately involved in the project. B. The project charter and project management plan were not thoroughly explained or adequately reviewed by the client. C. Communications arrangements were inadequate and did not provide the required information to interested parties. D. The project sponsor failed to provide adequate support for the project.

Answer A Explanation A single high-level executive can end an entire project if he or she is not satisfied with the results, even if that person has, by choice, been only tangentially involved in the project. It is critical to ensure that all of the final decision makers have been identified early in a project in order to ensure that their concerns are addressed.

Your project has a medium amount of risk and is not very well defined. The sponsor hands you a project charter and asks you to confirm that the project can be completed within the project cost budget. What is the BEST method to handle this? A. Build the estimate in the form of a range of possible results. B. Ask the team members to help estimate the cost based on the project charter. C. Based on the information you have, calculate a parametric estimate. D. Provide an analogous estimate based on past history.

Answer A Explanation Accuracy is always important, but since the project charter has just been received, the project has not yet been planned. Therefore, although some of the choices are not blatantly wrong, it is best to estimate in a range.

During project executing, a team member comes to the project manager because he is not sure of what work he needs to accomplish on the project. Which of the following documents contain detailed descriptions of work packages? A. WBS dictionary B. Activity list C. Project scope statement D. Scope management plan

Answer A Explanation Activity lists (choice B) may list the work package they relate to, but they do not contain detailed descriptions of the work packages. The project scope statement (choice C) defines the project scope, but it does not describe the work a team member is assigned. The scope management plan (choice D) describes how scope will be planned, managed, and controlled. It does not include a description of each work package. The WBS dictionary defines each element in the WBS. Therefore, descriptions of the work packages are in the WBS dictionary.

Which of the following activities occurs during the Plan Procurements process? A. Make-or-buy decisions B. Answering sellers' questions about the bid documents C. Advertising D. Proposal evaluation

Answer A Explanation Answering sellers' questions (choice B), advertising (choice C), and proposal evaluation (choice D) occur during the Conduct Procurements process.

Which of the following leadership traits is MOST important for a project manager? A. Communication B. Team building C. Technical expertise D. Project control

Answer A Explanation As project managers spend 90 percent of their time communicating, the correct choice must be A.

Which of the following is a characteristic of project management processes? A. Iterative B. Unique C. Unnecessary D. Standardized

Answer A Explanation As the project life cycle progresses, more information becomes available, allowing the team to manage the project to a more detailed level.

During which project management process group are budget forecasts created? A. Monitoring and controlling B. Planning C. Initiating D. Executing

Answer A Explanation Budget forecasts are an output of Control Costs, which is part of monitoring and controlling.

Which of the following is an advantage of centralized contracting? A. Increased expertise B. Easier access C. No home D. More loyalty to the project

Answer A Explanation Centralized contracting usually means harder access and less loyalty. Therefore choices B and D are disadvantages. The fact that procurement managers have no home when they're not working on a project (choice C) is also a disadvantage.

Close Procurements is different from Close Project or Phase in that Close Procurements: A. Occurs before Close Project or Phase. B. Is the only one to involve the customer. C. Includes the return of property. D. May be done more than once for each contract.

Answer A Explanation Choice B cannot be correct since the customer may be involved in lessons learned and procurement audits and would certainly be involved in formal acceptance. Choice C cannot be correct since both Close Procurements and Close Project or Phase involve the return of property. Close Procurements is done only once for each contract, so choice D cannot be correct. Choice A is correct because contracts are closed out before the project is closed out with the Close Project or Phase process.

The project CPI is 1.02, the benefit cost ratio is 1.7, and the latest round of performance reviews identified few needed adjustments. The project team was co-located into a new building when the project started. Everyone commented on how excited they were to have all new facilities. The sponsor is providing adequate support for the project, and few unidentified risks have occurred. In an attempt to improve performance, the project manager spends part of the project budget on new chairs for the team members and adds the term senior to each team member's job title. Which of the following is the MOST correct thing that can be said of this project or the project manager? A. The project manager has misunderstood Herzberg's theory. B. The project is slowly spending more money than it should. The project manager should begin to watch cost more carefully. C. The performance review should be handled better to find more adjustments. D. The project manager should use good judgment to determine which variances are important.

Answer A Explanation Choice B includes the concept of cost to trick you into selecting it if you are unsure of the real answer. There is no indication that the costs are trending in any particular direction. There is no reason to think that performance reviews should turn up more adjustments (choice C). The project manager should always use good judgment (choice D), but nothing in this question talks about judgment regarding variances, so this cannot be the best choice. In this situation, the project manager is making great working conditions better. According to Herzberg's theory, fixing bad working conditions will help you to motivate, but making good working conditions better will not improve motivation. You need to focus on the motivating agents and not the hygiene factors.

A project manager gathered data to perform earned value calculations on his project. He used the results to report to management that the project is under budget and on schedule. After reporting this information, he discovered that the base figures he used in the calculations were incorrect, as they came from an old copy of the project file which had not been updated. What should he do now? A. He should contact management to make them aware of the error, give the correct information, and explain how he made the mistake. B. He should contact management and tell them to expect some changes in the next reporting period, and that things are starting to look gloomy. C. He should use the correct figures to calculate the information when it is time for the next report and ignore the fact the he reported incorrect information. D. He should tell management that the data he received from team members was incorrect and thus the report was not accurate.

Answer A Explanation Choice B is not the truth of the matter. Although things may be gloomy, this is not a new development, since the report was based on old data. Choice C is not right since he is not admitting his mistake, the ethical thing to do, and choice D is blaming someone else for his own error. Choice A is correct since the ethical thing to do is to acknowledge and take responsibility for the error.

The previous project manager for your project managed it without much project organization. There is a lack of management control and no clearly defined project deliverables. Which of the following would be the BEST choice for getting your project better organized? A. Adopt a life cycle approach to the project. B. Develop lessons learned for each phase. C. Develop specific work plans for each work package. D. Develop a description of the product of the project.

Answer A Explanation Choice B would help improve subsequent phases, but would do nothing for control and deliverables. Choice C would help control each phase, but would not control the integration of the phases into a cohesive whole. Choice D would help, but not help both control and deliverables for each phase. Effective project management requires a life cycle approach to running the project. Choice A is the only answer that covers both control and deliverables.

You have just joined the project management office after five years of working on projects. One of the things you want to introduce to your company is the need to create and utilize WBSs. Some of the project managers are angry that you are asking them to do extra work. Which of the following would be the BEST thing you could tell the project managers to convince them to use WBSs? A. Tell them it will prevent work from slipping through the cracks. B. Tell them that it is not needed. C. Tell them it is required only if the project involves contracts. D. Tell them it is the only way to identify risks.

Answer A Explanation Choice C is not generally true. Every project must have a WBS. Risks can be identified using various methods. Therefore, choice D is an incorrect statement and not the best answer. Choice A, preventing work from being forgotten (slipping through the cracks) is ONE of the reasons the tool is used.

Your employee is three days late with a report. Five minutes before the meeting where the topic of the report is to be discussed, she hands you the report. You notice some serious errors in it. What should you do? A. Cancel the meeting and reschedule when the report is fixed. B. Go to the meeting and tell the other attendees there are errors in the report. C. Force the employee to do the presentation and remain silent as the other attendees find the errors. D. Cancel the meeting and rewrite the report yourself.

Answer A Explanation Choice C is penalizing the employee and making her lose face. Choices B, C, and D all involve decreasing the employee's morale. Therefore, the best choice, and the one that does not waste everyone's time, is to cancel the meeting, get to the root cause of the problem, and then fix it and reschedule the meeting (partially mentioned in choice A).

A project manager is working with a vendor on a project when she learns that the vendor has bribed a subcontractor to work on this project instead of fulfilling previous commitments to other projects. What should the she do? A. She should report the offense to management and the project managers of the affected projects. B. She should not do anything because this is the vendor's problem. The project manager herself didn't do anything wrong. C. She should report this to other subcontractors so they know they could get more money from the vendor. D. She should resign from the project so as to remove herself from this type of activity, but keep it to herself rather than cause problems.

Answer A Explanation Choices Band C do not inform management and the other project managers affected, so are not the best way to deal with this. Not reporting this knowledge (choice D) to the appropriate people is unethical. Choice A is correct because it is the responsibility of the project manager to report unethical behavior to management and those affected.

What is one of the KEY objectives during contract negotiations? A. Obtain a fair and reasonable price. B. Negotiate a price under the seller's estimate. C. Ensure that all project risks are thoroughly delineated. D. Ensure that an effective communications management plan is established.

Answer A Explanation Choices C and D are good ideas, but not the key objective. Negotiations should be win/win, so choice B is not the best choice. A fair and equitable price (choice A) will create a good working atmosphere. Otherwise, you will pay later, on change orders.

Linear programming is an example of what type of project selection criteria? A. Constrained optimization B. Comparative approach C. Benefit measurement D. Impact analysis

Answer A Explanation Constrained optimization uses mathematical models. Linear programming is a mathematical model.

The difference between the cost baseline and the cost budget can be BEST described as: A. The management reserve. B. The contingency reserve. C. The project cost estimate. D. The cost account.

Answer A Explanation Cost accounts are included in the project cost estimate, and the contingency reserve is added to that to come up with the cost baseline. Thereafter the management reserve is added to come up with the cost budget. Therefore, only choice A is correct.

Which of the following risk events is MOST likely to interfere with attaining a project's schedule objective? A. Delays in obtaining required approvals B. Substantial increases in the cost of purchased materials C. Contract disputes that generate claims for increased payments D. Slippage of the planned post-implementation review meeting

Answer A Explanation Cost increases (choice B) and contract disputes (choice C) will not necessarily interfere with schedule. Notice the words post-implementation in choice D. It will not definitely interfere with the project schedule. Choice A is the only one that deals with a time delay.

All of the following occur during the planning process group EXCEPT: A. Develop Project Charter. B. Create WBS. C. Estimate Costs. D. Sequence Activities.

Answer A Explanation Develop Project Charter (choice A) occurs in the initiating process group. Integration Management CHAPTER FOUR Answer

A project manager for a small construction company has a project that was budgeted for US $130,000 over a six-week period. According to her schedule, the project should have cost US $60,000 to date. However, it has cost US $90,000 to date. The project is also behind schedule, because the original estimates were not accurate. Who has the PRIMARY responsibility to solve this problem? A. Project manager B. Senior management C. Project sponsor D. Manager of the project management office

Answer A Explanation Did you get lost looking at all the numbers presented in this question? Notice that there are no calculations required, simply an understanding of what the problem is. This question describes schedule management, which is a responsibility of the project manager.

You have just been assigned as the project manager for a new telecommunications project that is entering the second phase of the project. There appear to be many risks on this project, but no one has evaluated them to assess the range of possible project outcomes. What needs to be done? A. Plan Risk Management B. Perform Quantitative Risk Analysis C. Plan Risk Responses D. Monitor and Control Risks

Answer A Explanation Did you notice that this project has already begun? Risk management is a required element of project management. You must complete the risk management process, starting with the Plan Risk Management process, making choice A the correct choice.

A project manager is creating a risk response plan. However, every time a risk response is suggested, another risk is identified that is caused by the response. Which of the following is the BEST thing for the project manager to do? A. Document the new risks and continue the Plan Risk Responses process. B. Make sure the project work is better understood. C. Spend more time making sure the risk responses are clearly defined. D. Get more people involved in the Identify Risks process, since risks have been missed.

Answer A Explanation Did you realize this question describes secondary risks? Identifying secondary risks is good and expected while completing the Plan Risk Responses process. With that in mind, the best thing to do is choice A.

Earned value analysis is an example of: A. Performance reporting. B. Planning control. C. Ishikawa diagrams. D. Integrating the project components into a whole.

Answer A Explanation Earned value analysis is a great reporting tool. With it, you can show where you stand on budget and schedule as well as provide forecasts for the rest of the project.

The project is just starting out and consists of people from 14 different departments. The project charter was signed by one person and contains over 30 major requirements that must be met on the project. The sponsor has informed the project manager that the SPI must be kept between 0.95 and 1.1. A few minutes of investigation resulted in the identification of 34 stakeholders, and the schedule objectives on the project are constrained. A project manager has just been hired. Which of the following types of project management power will BEST help the project manager gain the cooperation of others? A. Formal B. Referent C. Penalty D. Expert

Answer A Explanation Generally, the best forms of power are reward or expert. The project manager has not had time to become a recognized expert in the company (choice D) and reward is not included as a choice here. This leaves formal power (choice A) as the only logical answer.

All of the following are parts of the team's stakeholder management effort EXCEPT: A. Giving stakeholders extras. B. Identifying stakeholders. C. Determining stakeholders' needs. D. Managing stakeholders' expectations.

Answer A Explanation Giving stakeholders extras is known as gold plating. This is not effective stakeholder or quality management.

The high-level project schedule constraints have just been determined. What project management process group are you in? A. Initiating B. Planning C. Executing D. Monitoring and controlling

Answer A Explanation High-level project constraints are determined during the initiating process group.

The engineering department has uncovered a problem with the cost accounting system and has asked the systems department to analyze what is wrong and fix the problem. You are a project manager working with the cost accounting programs on another project. Management has issued a change request to the change control board to add the new work to your project. Your existing project has a cost performance index (CPI) of 1.2 and a schedule performance index (SPI) of 1.3 so you have some room to add work without delaying your existing project or going over budget. However, you cannot see how the new work fits within the project charter for your existing project. After some analysis, you determine that the new work and existing work do not overlap and can be done concurrently. They also require different skill sets. Which of the following is the BEST thing to do? A. Develop a project charter. B. Reestimate the project schedule with input from the engineering department. C. Verify the scope of the new work with the help of the stakeholders. D. Identify specific changes to the existing work.

Answer A Explanation How long did it take you to read this question? Expect long-winded questions on the exam. Take another look at the choices before you continue reading. Did you notice that each of the choices occurs during a different part of the project management process? This question is essentially asking if the new work should be added to the existing project. There may be many business reasons to try to do this, but from a project management perspective, major additions to the project are generally discouraged. In this case, the question is trying to imply that the new work is a self-contained unit of work, has no overlap with the existing work and needs a different skill set. Therefore, it is generally best to make it a new project. The first step to answering this question is to realize that the work should be a separate project. The second step is to look at the choices and see which relates to initiating a new project. Choice B sounds like the best choice, but only if you did not realize that the new work should be a separate project. Choice C is done during project monitoring and controlling. Choice D is done during project executing. The project charter is developed in the initiating process group.

What type of contract do you NOT want to use if you do not have enough labor to audit invoices? A. Cost plus fixed fee (CPFF) B. Time & material (T&M) C. Fixed price (FP) D. Fixed price incentive fee (FPIF)

Answer A Explanation If you got this question wrong, reread it. You need to audit invoices in all contract types, so how do you choose? Look for the answer that is BEST. In this case, it would be the choice that requires the greatest effort. A T&M contract (choice B) should be for small dollars and short duration (remember that a T&M contract has no incentive to finish), so it does not have a great risk. Choices C and D cannot be best because the risk to the buyer is limited-they are still only going to pay the contract price. In a CPFF contract, the buyer pays all costs. The seller could be charging the buyer for costs that should not be allocated to the buyer. Because of the size and dollar amount of these type of contracts and because the risk to the buyer is great, CPFF contracts need the most auditing. Since this question asked for which one you do not want to use, the answer must be choice A.

The sponsor and the project manager are discussing what type of contract the project manager plans to use on the project. The buyer points out that the performing organization spent a lot of money hiring a design team to come up with the design. The project manager is concerned that the risk for the buyer be as small as possible. An advantage of a fixed price contract for the buyer is: A. Cost risk is lower. B. Cost risk is higher. C. There is little risk. D. Risk is shared by all parties.

Answer A Explanation If you had trouble with this one, you need to remember that the questions are asked from the buyer's perspective unless otherwise noted. In this case, the seller has the most cost risk, and the buyer's risk is lower.

Risk tolerances are determined in order to help: A. The team rank the project risks. B. The project manager estimate the project. C. The team schedule the project. D. Management know how other managers will act on the project.

Answer A Explanation If you know the tolerances of the stakeholders, you can determine how they might react to different situations and risk events. You use this information to help assign levels of risk on each work package or activity.

The installation project has a CPI of 1.03 and an SPI of 1.0. There are 14 team members, and each team member had input into the final project management plan. The customer has accepted the three deliverables completed so far without complaint and the responsibility assignment matrix has not changed since the project began. The project is being completed in a matrix environment and there are no contracts needed for the project. Though the sponsor is happy with the status of the project, one of the team members is always complaining about how much time his project work is taking. Which of the following would be the BEST thing for the project manager to do? A. Review the reward system for the project. B. Try to improve schedule performance of the project. C. Meet with the customer to try to extend the schedule. D. Gain formal acceptance in writing from the customer.

Answer A Explanation Improving schedule performance (choice B) relates to getting the project completed sooner. Though it would seem to always be a good idea to improve schedule performance, this project's performance is fine. The schedule has been approved as it is. It would be better for the project manager to spend more time controlling the project to make sure it finishes according to plan than to improve schedule performance. If you chose C, ask yourself why. There is nothing wrong with the schedule performance of the project that would require an extension. Did you think that the best way to deal with the complaining stakeholder was to give him more time? How do you know the team member's activities are on the critical path? It is always important to gain formal acceptance from the customer, as it provides an opportunity for the team to check if everything is going well. It is a good idea to get such acceptance in writing. Choice D could be done, but there is a more important problem that takes precedence here. Read on. The only thing glaringly wrong in this situation is that the team member is complaining. If you read the situation completely, you will notice that the team member was involved and approved the project management plan, including his own involvement in the project. Since the responsibility assignment matrix has not changed, the team member has not even been assigned different duties since the project began. There must be something else causing the team member to complain. The project manager should investigate and find out what part of the reward system is ineffective.

With which type of contract is the seller MOST concerned about project scope? A. Fixed price B. Cost plus fixed fee C. Time and material D. Purchase order

Answer A Explanation In a fixed price contract, the seller has the cost risk and therefore wants to completely understand the procurement statement of work before bidding.

A project manager is trying to complete a software development project, but cannot get enough attention for the project. Resources are focused on completing process-related work and the project manager has little authority to properly assign resources. What form of organization must the project manager be working in? A. Functional B. Matrix C. Expediter D. Coordinator

Answer A Explanation In a functional organization, the project manager has the least support for the project and has little authority to assign resources. Choices C and D are roles in a weak matrix organization.

Who has the MOST power in a projectized organization? A. The project manager B. The functional manager C. The team D. They all share power

Answer A Explanation In a projectized organization, the entire company is organized by projects, giving the project manager the most power.

Integration is done by the: A. Project manager. B. Team. C. Sponsor. D. Stakeholders.

Answer A Explanation Integration is a key responsibility of the project manager, so choice A is the best answer.

Which of the following represents the estimated value of the work actually accomplished? A. Earned value (EV) B. Planned value (PV) C. Actual cost (AC) D. Cost variance (CV)

Answer A Explanation It can be confusing to differentiate earned value terms from each other. The definition presented here is for EV or earned value, so choice A is the best choice.

The project manager and project sponsor are discussing the project costs and whether it is better to have their own company do part of the project or hire another company to do the work. If they asked for your opinion, you might say it would be better to do the work yourself if: A. There is a lot of proprietary data. B. You have the expertise but you do not have the available manpower. C. You do not need control over the work. D. Your company resources are limited.

Answer A Explanation It is generally better to do the work yourself if using an outside company means you have to turn over proprietary data to the other company.

The management theory that states that all people can direct their own efforts is: A. Theory Y. B. Herzberg's theory. C. Maslow's hierarchy. D. Theory X.

Answer A Explanation Know the difference between Theory X and Theory Y.

Your cost forecast shows that you will have a cost overrun at the end of the project. Which of the following should you do? A. Eliminate risks in estimates and reestimate. B. Meet with the sponsor to find out what work can be done sooner. C. Cut quality. D. Decrease scope.

Answer A Explanation Look for the choice that would have the least negative impact in this situation. You would not need to meet with the sponsor to do choice B. Choices C and D always have negative effects. The choice with the least negative impact is Choice A.

The purpose of status meetings is to: A. Exchange information about the project. B. Have team members report on what they are doing C. Issue work authorizations D. Confirm the accuracy of the costs submitted by the team.

Answer A Explanation Many people select choice B, but the question asks for the purpose of such meetings. Team members' reporting on what they are doing may best be done outside of meetings. The main purpose is choice A.

Which of the following can create the MOST misinterpretation in the project scope statement? A. Imprecise language B. Poor pattern, structure, and chronological order C. Small variation in size of work packages or detail of work D. Too much detail

Answer A Explanation Much of the work on the project is dictated by the project scope statement. Any imprecision in such a key document will lead to differing interpretations.

Monte Carlo analysis is used to: A. Get an indication of the risk involved in the project. B. Estimate an activity's length. C. Simulate the order in which activities occur. D. Prove to management that extra staff is needed.

Answer A Explanation Notice how many choices are half right? Monte Carlo could help you know that an estimate for an activity needs to change, but not what the activity estimate should be (choice B). Monte Carlo is a simulation (choice C), but it simulates time, not order of activities. Monte Carlo can be used to prove things to management (choice D), but its main focus deals with time, not staff. Risk can be assessed using Monte Carlo analysis (choice A). By considering the inputs to the PERT estimates and the network diagram, you can obtain a better overview of the overall project risk.

A routine audit of a cost reimbursable (CR) contract determines that overcharges are being made. If the contract does not specify corrective action, the buyer should: A. Continue to make project payments. B. Halt payments until the problem is corrected. C. Void the contract and start legal action to recover overpayments. D. Change the contract to require more frequent audits.

Answer A Explanation Notice that choice B is really saying halt ALL payments. Halting all payments would be a breach of contract on the buyer's part. Choice C is too severe and cannot be done unilaterally. Choice D does not solve the problem presented. A choice that said, Halt payments on the disputed amount would probably be the best answer, but it is not offered. The best answer is A.

During project executing, a major problem occurs that was not included in the risk register. What should you do FIRST? A. Create a workaround. B. Reevaluate the Identify Risks process. C. Look for any unexpected effects of the problem. D. Tell management.

Answer A Explanation Notice that this is a problem that has occurred, rather than a problem that has just been identified. Following the right process is part of professional and social responsibility. Because an unidentified problem or risk occurred, it is important to perform choices Band C. However, they are not your first choices. You might need to inform management (choice D) but this is reactive, not proactive, and not the first thing you should do.

Company procedures require the creation of a lessons learned document. Which of the following is the BEST use of lessons learned? A. Historical records for future projects B. Planning record for the current project C. Informing the team about what the project manager has done D. Informing the team about the project management plan

Answer A Explanation Notice that this question asks about the use of a tool of project management. Many people can learn from a book what a lessons learned document is, but questions like this can more readily be answered if you actually use the tool and know from experience its value. Ask yourself about the other tools of project management. Why are they beneficial? The BEST use of lessons learned is choice A. There are other tools that are better for accomplishing the things listed in the other choices.

All of the following statements concerning procurement documents are incorrect EXCEPT: A. Well-designed procurement documents can simplify comparison of responses. B. Procurement documents must be rigorous with no flexibility to allow consideration of seller suggestions. C. In general, bid documents should not include evaluation criteria. D. Well-designed procurement documents do not include a procurement statement of work.

Answer A Explanation Often the seller is required to inform the buyer of anything that is missing or unclear in the procurement documents (choice B). It is in the buyer's best interest to discover missing items, since it will save the buyer money and trouble to correct the problem early. Procurement documents must contain terms and conditions and evaluation criteria (choice C) as well as all the work that is to be done, including the procurement statement of work (choice D). This is so the seller can price the project and know what is most important to the buyer. Choice A is an important point for the real world and is the best answer.

You have just discovered an error in the implementation plan that will prevent you from meeting a milestone date. The BEST thing you can do is: A. Develop options to meet the milestone date. B. Change the milestone date. C. Remove any discussion about due dates in the project status report. D. Educate the team about the need to meet milestone dates.

Answer A Explanation Only choice A solves the problem. Choice B is unethical. Choice C violates the rule to report honestly.

Which of the following is an example of a parametric estimate? A. Dollars per module B. Learning bend C. Bottom-up D. CPM

Answer A Explanation Parametric estimates use a mathematical model to predict project cost or time.

A team member from research and development tells you that her work is too creative to provide you with a fixed single estimate for the activity. You both decide to use the labor hours per installation from past projects to predict the future. This is an example of which of the following? A. Parametric estimating B. Three-point estimating C. Analogous estimating D. Monte Carlo analysis

Answer A Explanation Past history is being used to calculate an estimate. Monte Carlo (choice D) relates to what-if analysis. Choice B uses three time estimates per activity. One could use past projects to come up with the estimate (choice C), but the best answer is choice A because an estimate such as hours per installation is a chief characteristic of parametric estimates.

Verify Scope is closely related to: A. Perform Quality Control. B. Sequence Activities. C. Perform Quality Assurance. D. Time Management.

Answer A Explanation Perform Quality Control checks for correctness, and Verify Scope checks for acceptance.

Closure includes all of the following EXCEPT: A. Determining performance measures. B. Turning over the product of the project. C. Documenting the degree to which each project phase was properly closed after its completion. D. Updating the company's organizational process assets.

Answer A Explanation Performance measures are determined earlier in the project so they can be used to measure progress during the project, making choice A the only correct answer to this question.

You are in the middle of a new product development for your publicly traded company when you discover that the previous project manager made a US $3,000,000 payment that was not approved in accordance with your company policies. Luckily, the project cost performance index (CPI) is 1.2. What should you do? A. Contact your manager. B. Put the payment in an escrow account. C. Bury the cost in the largest cost center available. D. Ignore the payment.

Answer A Explanation Project managers must deal with potentially unethical situations like the situation described. Choices Band C hide it. Choice D ignores it. Only choice A deals with it.

A team member is visiting the manufacturing plant of one of the suppliers. Which of the following is the MOST important thing to be done in any telephone calls the project manager might make to the team member? A. Ask the team member to repeat back what the project manager says. B. Review the list of contact information for all stakeholders. C. Ask the team member to look for change requests. D. Review the upcoming meeting schedule.

Answer A Explanation Questions like this can drive one crazy. Although it asks for the most important thing, there are many choices that are reasonably correct. In questions like this, look for the most immediate need. In this case, the team member is in a manufacturing environment. That means that communications will most likely be blocked by noise. In order to have the issue at hand taken care of, the communication, it is BEST for the project manager to use choice A.

Project performance appraisals are different from team performance assessments in that project performance appraisals focus on: A. How an individual team member is performing on the project. B. An evaluation of the project team's effectiveness. C. A team-building effort. D. Reducing the staff turnover rate.

Answer A Explanation Questions like this can drive you crazy on the exam because it is easy to get confused. The best thing to do is to look at the two terms used here (project performance appraisals and team performance assessment) and review in your mind what each means BEFORE looking at the choices. Choices B, C, and D list aspects of team performance assessments. Only choice A is correct. Project performance appraisals deal with how each team member is performing work, rather than how well the team is working together.

Four project managers are having lunch together and discussing their projects. Most of the time they are just complaining about how hard projects are to manage in their company. Some complain about the stakeholders and the number of changes they cause. Others talk about how hard it is to get people to cooperate and perform. One project manager wants to focus on the advantages of the matrix-type organization they all work in for their projects. Which of the following would he mention? A. Improved project manager control over resources B. More than one boss for project teams C. Communications are easier D. Reporting is easier

Answer A Explanation Remember that if the question doesn't state what it is comparing to, it is comparing to a functional organization.

Which of the following MUST be an agenda item at all team meetings? A. Discussion of project risks B. Status of current activities C. Identification of new activities D. Review of project problems

Answer A Explanation Risk is so important that it must be discussed at all team meetings. Procurement Management CHAPTER TWELVE

The project manager is looking at the project's resource needs and lessons learned from past projects. This information causes the project manager to be concerned about the ability to acquire enough resources for the project in six months. Which of the following would be the LEAST effective preventive action? A. Make sure functional managers have a copy of the resource histogram. B. Show the sponsor the data, and explain the project manager's concern. C. Determine metrics to use as an early warning sign that resources will not be available. D. Ask functional managers for their opinions.

Answer A Explanation Sending data without pointing out the issue (choice A) does not mean the communication will be adequately decoded by the recipient. The other choices are more effective communication in this instance.

Stakeholders can be identified in which project management process groups? A. Initiating, planning, executing, monitoring and controlling, and closing B. Initiating and planning C. Planning and monitoring and controlling D. Monitoring and controlling and closing

Answer A Explanation Stakeholders can be identified throughout the project management process groups. However, the earlier stakeholders are identified, the better for the project. If all of the stakeholders' needs and requirements are taken into account before plans are finalized and project work is begun, fewer changes will be needed later in the project, when they will be more costly.

When do stakeholders have the MOST influence on a project? A. At the beginning of the project B. In the middle of the project C. At the end of the project D. Throughout the project

Answer A Explanation Stakeholders must be identified and involved at the beginning of the project, in order to determine their requirements and expectations. Remember that if this is not done early, the results may be expensive changes and/or dissatisfaction later in the project.

Which of the following sequences represents straight line depreciation? A. $100,$100,$100 B. $100,$120,$140 C. $100,$120,$160 D. $160, $140, $120

Answer A Explanation Straight line depreciation uses the same amount each time period.

The project charter for a project was approved for planning and you have just been assigned as project manager. Realizing that project planning is an ongoing effort throughout the project, which processes are you MOST likely to combine? A. Create WBS and Define Activities B. Estimate Activity Durations and Develop Schedule C. Develop Human Resource Plan and Estimate Costs D. Estimate Costs and Determine Budget

Answer A Explanation The Create WBS process consists of subdividing major project deliverables (scope) into smaller, more manageable work packages. The Define Activities process defines the activities that must take place to produce those deliverables.

The construction phase of a new software product is near completion. The next phases are testing and implementation. The project is two weeks ahead of schedule. What should the project manager be MOST concerned with before moving on to the final phase? A. Verify Scope B. Control Quality C. Create Performance Reports D. Control Costs

Answer A Explanation The Verify Scope process deals with acceptance by the customer. Without this acceptance, you will not be able to move into the next project phase.

Management by objectives works only if: A. It is supported by management. B. The rules are written down. C. The project does not impact the objectives. D. The project includes the objectives in the project charter.

Answer A Explanation The best answer is the need for management to support the objectives.

Management tells a project manager to subcontract part of the project to a company that management has worked with many times. Under these circumstances, the project manager should be MOST concerned about: A. Making sure the company has the qualifications to complete the project. B. Meeting management expectations of time. C. The cost of the subcontracted work. D. The contract terms and conditions.

Answer A Explanation The first thing that should come to mind is whether this is an ethical situation and whether it violates any company rules or laws. If it does not violate any of these, it would be best to check qualifications (choice A). There is no justification to rate choices B, C, or D higher than any other choice.

An output of the Close Project or Phase process is the creation of: A. Project archives. B. A project charter. C. A project management plan. D. A risk analysis plan.

Answer A Explanation The project charter (choice B) is created in initiating. The project management plan (choice C) is an output of the planning process group. You have not seen the term risk analysis plan (choice D) in this book, so it is unlikely to be the best answer.

Two project managers have just realized that they are in a weak matrix organization and that their power as project managers is quite limited. One figures out that he is really a project expediter and the other realizes he is really a project coordinator. How is a project expediter different from a project coordinator? A. The project expediter cannot make decisions. B. The project expediter can make more decisions. C. The project expediter reports to a higher-level manager. D. The project expediter has some authority.

Answer A Explanation The project coordinator reports to a higher-level manager and has authority to make some decisions. The project expediter has no authority to make decisions.

The person who should be in control of the project during project planning is the: A. Project manager. B. Team member. C. Functional manager. D. Sponsor.

Answer A Explanation The project manager should be named early in the project, during project initiating if possible.

Which of the following is an output of the Collect Requirements process? A. Requirements traceability matrix B. Project scope statement C. Work breakdown structure D. Change requests

Answer A Explanation The project scope statement (choice B) is an output of the Define Scope process. The work breakdown structure (choice C) is an output of the Create WBS process. Change requests (choice D) are an output of the Verify Scope and Control Scope processes.

The project status report is an example of which type of communication? A. Formal written communication B. Formal verbal communication C. Informal written communication D. Informal verbal communication

Answer A Explanation The project status needs to be known by many people. Therefore, it is best to make this type of communication in writing so that it can be transmitted to many people. It is also formal in that it is an official report of the project. Therefore, choice A is the best answer.

You are a project manager on a US $5,000,000 software development project. While working with your project team to develop a network diagram, you notice a series of activities that can be worked in parallel but must finish in a specific sequence. What type of activity sequencing method is required for these activities? A. Precedence diagramming method B. Arrow diagramming method C. Critical path method D. Operational diagramming method

Answer A Explanation The question implies a finish-to-finish relationship between activities. The arrow diagramming method (choice B) does not support these types of relationships. Choice C is not a diagramming method, and choice D is a made-up term.

You have just been assigned as project manager for a large telecommunications project. This one- year project is about halfway done. The project team consists of 5 sellers and 20 of your company's employees. You want to understand who is responsible for doing what on the project. Where would you find such information? A. Responsibility assignment matrix B. Resource histogram C. Bar chart D. Project organization chart

Answer A Explanation The responsibility assignment matrix maps who will do the work. The resource histogram (choice B) shows the number of resources used in each time period. In its pure form, a bar chart (choice C) shows only activity and calendar date. An organizational chart (choice D) shows who reports to whom.

All of the following are parts of the scope baseline EXCEPT the: A. Scope management plan. B. Project scope statement. C. Work breakdown structure. D. WBS dictionary.

Answer A Explanation The scope management plan is not part of the scope baseline.

If the optimistic estimate for an activity is 12 days, and the pessimistic estimate is 18 days, what is the standard deviation of this activity? A. 1 B. 1.3 C. 6 D. 3

Answer A Explanation The standard deviation is computed by (P - 0)/6. Therefore, the answer is (18 - 12)/6 = 6/6 = 1.

To control the schedule, a project manager is reanalyzing the project to predict project duration. She does this by analyzing the sequence of activities with the least amount of scheduling flexibility. What technique is she using? A. Critical path method B. Flowchart C. Precedence diagramming D. Work breakdown structure

Answer A Explanation There are only two choices related to scheduling: A and C. Choice C, however, is a diagramming technique that deals with the relationship between activities, not schedule flexibility.

A project has a tight budget when you begin negotiating with a seller for a piece of equipment. The seller has told you that the equipment price is fixed. Your manager has told you to negotiate the cost with the seller. What is your BEST course of action? A. Make a good faith effort to find a way to decrease the cost. B. Postpone negotiations until you can convince your manager to change his mind. C. Hold the negotiations, but only negotiate other aspects of the project. D. Cancel the negotiations.

Answer A Explanation There is always a way to decrease costs on the project. How about offering to feature the seller in your next television ad? The best choice is A.

Conflict resolution techniques that may be used on a project include confronting, smoothing, forcing, and: A. Withdrawing. B. Directing. C. Organizing. D. Controlling.

Answer A Explanation There is always the option to simply postpone dealing with the issue until later. This is withdrawing.

Early in the life of your project, you are having a discussion with the sponsor about what estimating techniques should be used. You want a form of expert judgment, but the sponsor argues for analogous estimating. It would be BEST to: A. Agree to analogous estimating, as it is a form of expert judgment. B. Suggest life cycle costing as a compromise. C. Determine why the sponsor wants such an accurate estimate. D. Try to convince the sponsor to allow expert judgment because it is typically more accurate.

Answer A Explanation This is a tricky question. In order to pick the best answer, you need to realize that analogous estimating is a form of expert judgment. Notice choice C, determine why;' sounds like a good idea, but look at the rest of the sentence. Analogous estimates are not accurate. Reading every word of this choice helps eliminate it.

You are about to take over a project from another project manager and find out the following information about the project. Activity Z has an early start (ES) of day 15 and a late start (LS) of day 20. Activity Z is a difficult activity. The cost performance index (CPI) is 1.1. The schedule performance index (SPI) is 0.8. There are 11 stakeholders on the project. Based on this information, which of the following would you be the MOST concerned about? A. Schedule B. Float C. Cost D. The number of available resources

Answer A Explanation This is one of those questions that combines topics from various knowledge areas. Did you fall into the trap of calculating the float for Z? The amount of float for one activity and the number of stakeholders does not tell you anything in this case, so choices Band D cannot be the best answers. The CPI is greater than one and the SPI is less than one. Therefore, the thing to be most worried about would be schedule.

The cost performance index (CPI) of a project is 0.6 and the schedule performance index (SPI) is 0.71. The project has 625 work packages and is being completed over a four-year period. The team members are very inexperienced, and the project received little support for proper planning. Which of the following is the BEST thing to do? A. Update risk identification and analysis. B. Spend more time improving the cost estimates. C. Remove as many work packages as possible. D. Reorganize the responsibility assignment matrix.

Answer A Explanation This project has deviated so far from the baseline that updated risk identification and risk analysis should be performed.

A project team is creating a project management plan when management asks them to identify project risks and provide some form of qualitative output as soon as possible. What should the project team provide? A. Prioritized list of project risks B. Risk triggers C. Contingency reserves D. Probability of achieving the time and cost objectives

Answer A Explanation This question essentially asks, What is an output of the Perform Qualitative Risk Analysis process? Only Choice A meets that criteria. Choices Band C are parts of the Plan Risk Responses process. Choice D occurs during the Perform Quantitative Risk Analysis process.

During the Plan Risk Management process, your team has come up with 434 risks and 16 major causes of those risks. The project is the last of a series of projects that the team has worked on together. The sponsor is very supportive, and a lot of time was invested in making sure the project work was complete and signed off by all key stakeholders. During project planning, the team cannot come up with an effective way to mitigate or insure against a risk. It is not work that can be outsourced, nor can it be deleted. What would be the BEST solution? A. Accept the risk. B. Continue to investigate ways to mitigate the risk. C. Look for ways to avoid the risk. D. Look for ways to transfer the risk.

Answer A Explanation This question relates real-world situations to risk types. Did you realize that the entire first paragraph is extraneous? Based on the question, you cannot delete the work to avoid it, nor can you insure or outsource to transfer the risk. This leaves acceptance as the only correct choice.

Which of the following is CORRECT? A. The critical path helps prove how long the project will take. B. There can be only one critical path. C. The network diagram will change every time the end date changes. D. A project can never have negative float.

Answer A Explanation This question tests your knowledge about a number of topics. There can often be more than one critical path (choice B) but you might adjust to decrease risk and have only one critical path. Choice C uses the word will. The network diagram may change or it may not, depending on the amount of schedule reserve and the reason for the change to the schedule. You can have negative float (choice D) if you are behind schedule. Only choice A is correct.

What does a resource histogram show that a responsibility assignment matrix does not? A. Time B. Activity C. Interrelationships D. The person in charge of each activity

Answer A Explanation Time is shown on a schedule or bar chart. The responsibility assignment matrix maps specific resources against the work packages from the WBS. On a resource histogram, the use of resources is shown individually or by groups over time.

In a fixed price (FP) contract, the fee or profit is: A. Unknown. B. Part of the negotiation involved in paying every invoice. C. Applied as a line item to every invoice. D. Determined with the other party at the end of the project.

Answer A Explanation To the seller, it is known, but this question is from the buyer's perspective. You do not know what profit the seller included in the contract.

A manager has responsibility for a project that has the support of a senior manager. From the beginning, you have disagreed with the manager as to how the project should proceed and what the deliverables should be. You and she have disagreed over many issues in the past. Your department has been tasked with providing some key work packages for the project. What should you do? A. Provide the manager with what she needs. B. Inform your manager of your concerns to get her support. C. Sit down with the manager at the beginning of the project and attempt to describe why you object to the project, and discover a way to solve the problem. D. Ask to be removed from the project.

Answer A Explanation We assume that proper project management was followed and your opinion was considered during project initiating. Therefore, the best choice would be choice A. You need to provide the work as approved by management.

Communications under a contract should tend toward: A. Formal written communication. B. Formal verbal communication. C. Informal written communication. D. Informal verbal communication.

Answer A Explanation When we talk about contracts, everything that we do is more formal than in other project activities. Records are also important, thus the need for written communication.

Which type of cost is team training? A. Direct B. NPV C. Indirect D. Fixed

Answer A Explanation You are training the team on skills required for the project. The cost is directly related to the project and thus a direct cost.

In attempting to complete the project faster, the project manager looks at the cost associated with crashing each activity. The BEST approach to crashing would also include looking at the: A. Risk impact of crashing each activity. B. Customer's opinion of which activities to crash. C. Boss's opinion of which activities to crash and in which order. D. Project life cycle phase in which the activity is due to occur.

Answer A Explanation You mayor may not need your customer's (choice B) or your boss's (choice C) input, but you will definitely need to include an analysis of risk. Choice A is broader than choice D and therefore is better.

During project executing, a large number of changes are made to the project. The project manager should: A. Wait until all changes are known and print out a new schedule. B. Make approved changes as needed, but retain the schedule baseline. C. Make only the changes approved by management. D. Talk to management before any changes are made.

Answer B Explanation A project manager must be more in control of the project than choices C and D reflect. Choice A is a common error many project managers make. Instead, the project manager should be controlling the project throughout the completion of the project. Cost Management CHAPTER SEVEN

All of the following must be performed during project initiating EXCEPT: A. Identify and document business needs. B. Create a project scope statement. C. Divide large projects into phases. D. Accumulate and evaluate historical information.

Answer B Explanation A project scope statement (choice B) is generally created in project planning.

Who of the following are ALWAYS stakeholders? A. A person who does not want the project to be completed B. An assembly line worker that will use the product of the project C. A functional manager from the engineering department D. A person who might lose his or her position in the company because of the project

Answer B Explanation A user of the project's product is always a stakeholder, while the others mayor may not be.

The preparation of the scope baseline can BEST be described as involving: A. The functional managers. B. The project team. C. All the stakeholders. D. The project expediter.

Answer B Explanation After the customer's input, the performing organization's project team is responsible for scope baseline preparation. The scope baseline includes the WBS, WBS dictionary, and project scope statement.

A project performed under a cost reimbursable contract has finally entered the Close Procurements process. What MUST the buyer remember to do? A. Decrease the risk rating of the project. B. Audit seller's cost submittals. C. Evaluate the fee he is paying. D. Make sure that the seller is not adding resources.

Answer B Explanation Although a reserve might be decreased for the project overall when one of its contracts enters closure, the risk rating of the project (choice A) may not be affected. Choice C should have been done during the Conduct Procurements process. Although choice D may be a concern during the Administer Procurements process, it is not common during Close Procurements. Choice B, audit seller's cost submittals, is part of the procurement audit and is a required aspect of Close Procurements.

A decision has to be made regarding project selection. Several project managers have been asked to give their opinions to the executive committee. Each project manager has a personal interest because the project chosen will drive which project manager will be assigned. The project chosen will be high priority and high visibility, with substantial reward for success. How should the project managers make their recommendations? A. They should each explain why the project they would be in charge of would be the best to choose and provide documentation to substantiate it. B. They should recommend the project that would be best for the company in the long run, regardless of who is going to run it. C. They should make a chart that shows the pros and cons of each project making sure to list more pros for the one they would run and less cons to prove its value. D. They should not give an opinion since it would not be objective.

Answer B Explanation Although choice D sounds like a good option, it is not the best, since the project managers have been asked for their input. Choices A and C are incorrect because the project managers would be promoting their own interests, rather than that of the organization. Choice B is best since it suggests being objective and making impartial recommendations in the best interest of the organization.

Your project has just been fast tracked and you are looking to quickly bring in a subcontractor to complete networking. There is no time to issue a request for proposal (RFP), so you choose to use a company you have used many times before for software development. A PRIMARY concern in this situation is: A. Collusion between subcontractors. B. The subcontractor's qualifications. C. The subcontractor's evaluation criteria. D. Holding a bidder conference.

Answer B Explanation Although you have used this contractor before, how can you be sure the company is qualified to do the new work, since it is not exactly like the previous work? This is the risk you are taking.

The primary objective of contract negotiations is to: A. Get the most from the other side. B. Protect the relationship. C. Get the highest monetary return. D. Define objectives and stick to them.

Answer B Explanation As a project manager, you want to develop a relationship during negotiations that will last throughout the project.

Cost performance measurement is BEST done through which of the following? A. Asking for a percent complete from each team member and reporting that in the monthly progress report B. Calculating earned value and using the indexes and other calculations to report past performance and forecast future performance C. Using the 50/50 rule and making sure the life cycle cost is less than the project cost D. Focusing on the amount expended last month and what will be expended the following month

Answer B Explanation Asking percent complete (choice A) is not a best practice since it is usually a guess. Often the easiest work is done first on a project, throwing off any percentage calculations of work remaining. It may be a good thing to use the 50/50 rule, as in choice C. However, the 50/50 rule is not necessarily included in the progress report, and the second part of the sentence is incorrect. The life cycle cost cannot be lower than the project cost, as the life cycle cost includes the project cost. Choice D is often done by inexperienced project managers who know of nothing else. Not only does it provide little information, but also it cannot be used to predict the future. Choice B is the best answer since it looks at the past and uses this information to estimate future costs.

A project manager has a project team consisting of people in four countries. The project is very important to the company, and the project manager is concerned about its success. The length of the project schedule is acceptable. What type of communication should he use? A. Informal verbal communication B. Formal written communication C. Formal verbal communication D. Informal written communication

Answer B Explanation Because of the differences in culture and the distance between team members, formal written communication is needed.

You just found out that a major subcontractor for your project consistently provides deliverables late. The subcontractor approaches you and asks you to continue accepting late deliverables in exchange for a decrease in project costs. This offer is an example of: A. Confronting. B. Compromise. C. Smoothing. D. Forcing.

Answer B Explanation Both parties are giving up something. This is a compromise.

Which of the following processes includes asking team members about the time estimates for their activities and reaching agreement on the calendar date for each activity? A. Sequence Activities B. Develop Schedule C. Define Scope D. Develop Project Charter

Answer B Explanation By the time this process is taking place, Sequence Activities (choice A), Define Scope (choice C), and Develop Project Charter (choice D) would be completed.

The sponsor is worried about the seller deriving extra profit on the cost plus fixed fee (CPFF) contract. Each month he requires the project manager to submit CPI calculations and an analysis of the cost to complete. The project manager explains to the sponsor that extra profits should NOT be a worry on this project because: A. The team is making sure the seller does not cut scope. B. All costs invoiced are being audited. C. There can only be a maximum 10 percent increase if there is an unexpected cost overrun. D. The fee is only received by the seller when the project is completed.

Answer B Explanation Choice A cannot be best because cutting scope decreases profits on this type of contract. Choice C cannot be best, as CPFF contracts generally do not limit fee increases. Choice D cannot be best, as the fee in a CPFF contract is usually paid out on a continuous basis during the life of the project. One of the ways to change the profit in a cost plus fixed fee contract is to invoice for items not chargeable to the project (choice B).

This project is chartered to determine new ways to extend the product life of one of the company's medium-producing products. The project manager comes from the engineering department, and the team comes from product management and marketing departments. The project scope statement and project planning are completed when a stakeholder notifies the team that there is a better way to complete one of the work packages. They even supply a technical review letter from their department proving that the new way to complete the work package will actually be faster than the old way. The project manager has had similar experiences with this department on other projects, and was expecting this to happen on this project. What is the FIRST thing the project manager should do? A. Contact the department and complain again about their missing the deadline for submission of scope. B. Look for how this schedule change will impact the cost to complete the work package and the quality of the product of the work package. C. See if there is a way to change from a matrix environment to a functional organization so as to eliminate all the interference from other departments. D. Ask the department if they have any other changes.

Answer B Explanation Choice A could be done, but notice that it is not proactive? It would be helpful to get to the root cause of why this department always comes up with such ideas or changes after the project begins. However, this is not the immediate problem, the change is, and therefore choice A is not best. The type of project organization described is a matrix organization. There is not anything inherently wrong with such an organization, nor is there anything wrong in this particular situation that would require it to be changed, so choice C cannot be best. The department's history makes choice D something that should definitely be done, but the proposed change needs more immediate attention. Only choice B begins integrated change control by looking at the impact of one change on other project constraints.

Three students from another country are working as interns on a project. The project manager has arranged for some games to play as team-building activities to help create a close knit sense of team with the group members. At the event where the activities are taking place, the three students refuse to participate, claiming the behavior involved is unacceptable in their country and they would be very uncomfortable participating. What should the project manager do? A. He should tell the students that they need to become familiar with the how things are done in this country and that they must play along. B. He should excuse the students from playing and arrange to discuss with them alternative activities that they would be more comfortable with. C. He should report the students to their functional manager and request they be removed from the project since their attitude will have a negative impact on the project. D. He should tell the students they are excused from the activities and to not attend any team building activities in the future.

Answer B Explanation Choice A is forcing the team members to do something that is unacceptable in their culture. Choice C penalizes the team members for expressing their cultural preferences, which is not a valid reason to remove them from the team. Excluding them from all future team building (choice D) does not show respect for their culture, and would have a negative impact on the project. Choice B is best because it demonstrates respect for cultural ,differences.

Which of the following would be the MOST appropriate thing to do during the initiating process group? A. Create a detailed description of the project deliverables. B. Get familiar with the company culture and structure as it relates to the project. C. Identify the root cause of problems. D. Ensure all project management processes are complete.

Answer B Explanation Choice A occurs during the planning process group as part of creating the project scope statement. Since you must already have problems in order to determine their root cause, choice C must occur during the monitoring and controlling process group, not initiating. Choice D occurs during the closing process group.

You are in the middle of a project when you discover that a software seller for your project is having major difficulty keeping employees due to a labor dispute. Many other projects in your company are also using the company's services. What should you do? A. Attempt to keep the required people on your project. B. Tell the other project managers in your company about the labor problem. C. Contact the company and advise it that you will cancel its work on the project unless it settles its labor dispute. D. Cease doing business with the company.

Answer B Explanation Choice A puts your interests over those of your company so it cannot be the best choice. There is no indication that the labor dispute has caused any problems, so there is no need to cancel its work (choice C) or cease doing business with the company (choice D). The best choice would be to inform others in your company.

Approved corrective action is an input to: A. Verify Scope. B. Direct and Manage Project Execution. C. Develop Project Charter. D. Develop Schedule.

Answer B Explanation Choice B is the only correct response.

You've been assigned to take over managing a project that should be half complete according to the schedule. After an extensive evaluation, you discover that the project is running far behind schedule, and that the project will probably take twice the time originally estimated by the previous project manager. However, the sponsor has been told that the project is on schedule. What is the BEST course of action? A. Try to restructure the schedule to meet the project deadline. B. Report your assessment to the sponsor. C. Turn the project back to the previous project manager. D. Move forward with the schedule as planned by the previous project manager and report at the first missed milestone.

Answer B Explanation Choice C is not possible, as the previous project manager may have left the company or he may be busy with new projects. It is a form of withdrawal. Moving ahead (choice D) also withdraws from the problem, and withdrawal is not the best choice. There are two problems described here; the project is behind, and the sponsor does not know it. There seem to be two possible right answers, choices A and B. Which is the best thing to deal with? Certainly it would be to work to get the project on schedule, but look at what choice A says. It limits the effort to restructuring the schedule and does not consider other options, such as cutting scope, that might more effectively deal with the problem. Choice A is too limiting. What if the sponsor would agree to change the due date? The best choice in THIS situation is to inform the sponsor of the revised completion time estimate.

A certified PMP is contacted by PMI and asked to provide information regarding another project manager who has been reported to be involved in unethical activities. The PMP-certified project manager knows his information would support the accusations and the other project manager in question is a friend. He decides that the best thing to do would be to not respond, and therefore neither confirm nor deny the accusations. Would this be the right thing to do? A. Yes. It would be a safe thing to do to just ignore the request and stay out of it. B. No. If he knows something, he is required by the Code of Ethics and Professional Conduct conduct to cooperate. C. No. It would be better to deny the charges against his friend to maintain the relationship. D. Yes. It is expected that project managers will support each other in the field against outsiders.

Answer B Explanation Choices A and D do not support PMI's request for information. Choice C would be lying. Choice B is correct, as PMI's Code of Ethics and Professional Conduct requires PMP-certified project managers to report unethical behavior and violations of the code. The PMP-certified project manager is obligated to cooperate with PMI in collecting information.

Management has promised you part of the incentive fee from the customer if you complete the project early. While finalizing a major deliverable, your team informs you that the deliverable meets the requirements in the contract but will not provide the functionality the customer needs. If the deliverable is late, the project will not be completed early. What action should you take? A. Provide the deliverable as it is. B. Inform the customer of the situation and work out a mutually agreeable solution. C. Start to compile a list of delays caused by the customer to prepare for negotiations. D. Cut out other activities in a way that will be unnoticed to provide more time to fix the deliverable.

Answer B Explanation Choices A and D ignore the customer's best interests. Any delays would have already been resolved with other change orders, so choice C is not appropriate. The ethical solution is to talk with the customer (choice B). You might still be able to win the incentive fee and find a mutually agreeable solution. Think of the good will that will come from telling the customer.

The project is calculated to be completed four days after the desired completion date. You do not have access to additional resources. The project is low risk, the benefit cost ratio (BCR) is expected to be 1.6, and the dependencies are preferential. Under these circumstances, what would be the BEST thing to do? A. Cut resources from an activity. B. Make more activities concurrent. C. Move resources from the preferential dependencies to the external dependencies. D. Remove an activity from the project.

Answer B Explanation Cutting resources from an activity (choice A) would not save time, nor would moving resources in the way described (choice C). Removing an activity from the project (choice D) is a possibility, but since the dependencies are preferential and the risk is low, the best choice would be to make more activities concurrent (choice B), as this would have less impact on the project.

Communication is the key to the success of a project. As the project manager, you have three stakeholders with whom you need to communicate. As such, you have six channels of communication. A new stakeholder has been added that you also need to communicate with. How many communications channels do you have now? A. 7 B. 10 C. 12 D. 16

Answer B Explanation Did you realize that the project manager is part of the communication channels? Therefore, there are actually four stakeholders to begin with and six channels of communication. The question is asking how many total channels of communication you have with a team of five people. The formula is [N x (N-l)]12 or (5 x 4)/2 = 10.

During project planning in a matrix organization, the project manager determines that additional human resources are needed. From whom would he request these resources? A. Project manager B. Functional manager C. Team D. Project sponsor

Answer B Explanation Did you remember that in a matrix organization, the functional manager controls the resources?

What is a program? A. An initiative set up by management B. A means to gain benefits and control of related projects C. A group of unrelated projects managed in a coordinated way D. A government regulation

Answer B Explanation Did you select choice C? If so, you missed the word unrelated:' Programs are groups of related projects.

The project is mostly complete. The project has a schedule variance of 300 and a cost variance of -900. All but one of the quality control inspections have been completed and all have met the quality requirements. All items in the issue log have been resolved. Many of the resources have been released. The sponsor is about to call a meeting to obtain product verification when the customer notifies the project manager that they want to make a major change to the scope. The project manager should: A. Meet with the project team to determine if this change can be made. B. Ask the customer for a description of the change. C. Explain that the change cannot be made at this point in the process. D. Inform management.

Answer B Explanation Do not jump into the problem without thinking. The customer only notified the project manager that they want to make a change:' They did not describe the change. The project manager would need to understand the nature of the change and have time to evaluate the impact of the change before doing anything else. Of these choices, the first thing to do is to determine what the change is (choice B) and then meet with the team (choice A), but only if their input is required. The project manager should not just say no (choice C) until he knows more about the possible change. He also should not go to management (choice D) without more information.

If a risk has a 20 percent chance of happening in a given month, and the project is expected to last five months, what is the probability that this risk event will occur during the fourth month of the project? A. Less than 1 percent B. 20 percent C. 60 percent D. 80 percent

Answer B Explanation Don't feel too silly if you got this wrong. Many people miss this one. No calculation is needed. If there is a 20 percent chance in anyone month, the chance in the fourth month must therefore be 20 percent.

Which of the following are ALL items included in the cost management plan? A. The level of accuracy needed for estimates, rules for measuring cost performance, specifications for how duration estimates should be stated B. Specifications for how estimates should be stated, rules for measuring cost performance, the level of accuracy needed for estimates C. Rules for measuring team performance, the level of accuracy needed for estimates, specifications for how estimates should be stated D. Specifications for how estimates should be stated, the level of risk needed for estimates, rules for measuring cost performance

Answer B Explanation Every item in choice B accurately describes a part of the cost management plan. Notice how one word in each of the other options makes the entire choice incorrect. Choice A refers to duration estimates, which are created during the time management process, choice C includes measuring team performance, a part of human resource management, and choice D includes risk.

Formal written correspondence with the customer is required when: A. Defects are detected. B. The customer requests additional work not covered under contract. C. The project has a schedule slippage that includes changes to the critical path. D. The project has cost overruns.

Answer B Explanation Everything that we do is more formal in a procurement environment than in other project activities. Because choice B deals with contracts, it is the best answer.

A project team member is talking to another team member and complaining that many people are asking him to do things. If he works in a functional organization, who has the power to give direction to the team member? A. The project manager B. The functional manager C. The team D. Tight matrix

Answer B Explanation In a functional organization, the functional manager is the team member's boss and probably also the project manager's boss.

A project manager is in the middle of creating a request for proposal (RFP). What part of the procurement process is she in? A. Conduct Procurements B. Plan Procurements C. Administer Procurements D. Make-or- Buy Analysis

Answer B Explanation In the Plan Procurements process, we create the procurement documents. The request for proposal is one of those documents.

A detailed project schedule can be created only after creating the: A. Project budget. B. Work breakdown structure. C. Project management plan. D. Detailed risk assessment.

Answer B Explanation In the project management process, the project budget (choice A), project management plan (choice C), and detailed risk assessment (choice D) come after the schedule. The only answer that could be an input is the WBS.

Which of the following BEST describes the project manager's role as an integrator? A. Help team members become familiar with the project. B. Put all the pieces of a project into a cohesive whole. C. Put all the pieces of a project into a program. D. Get all team members together into a cohesive whole.

Answer B Explanation Integration refers to combining activities, not team members (choice D). Could the project manager smash two team members together and create one big team member? (I just wanted to see if you are still laughing about this PMP thing!)

The MOST common causes of conflict on a project are schedules, project priorities, and: A. Personality. B. Resources. C. Cost. D. Management.

Answer B Explanation Know the top four sources (schedule, project priorities, resources, and technical opinions) so you can answer questions such as this one. Don't be fooled because personality is on the list. It is last.

A company is making an effort to improve its project performance and create historical records of past projects. What is the BEST way to accomplish this? A. Create project management plans B. Create lessons learned. C. Create network diagrams D. Create status reports

Answer B Explanation Lessons learned help to avoid future pitfalls and use the good ideas of past projects. This leads to improvements in future projects. Project Management Processes CHAPTER THREE

The WBS and WBS dictionary are completed. The project team has begun working on identifying risks. The sponsor contacts the project manager, requesting that the responsibility assignment matrix be issued. The project has a budget of US $100,000 and is taking place in three countries using 14 human resources. There is little risk expected for the project, and the project manager has managed many projects similar to this one. What is the NEXT thing to do? A. Understand the experience of the sponsor on similar projects. B. Create an activity list. C. Make sure the project scope is defined. D. Complete risk management and issue the responsibility assignment matrix.

Answer B Explanation Look at the order of planning the project the team has chosen. Though understanding the experience of the sponsor (choice A) might sound like a good idea, the sponsor is a stakeholder and understanding the stakeholders is part of stakeholder analysis. That should have occurred before the creation of a WBS. In planning the project, the project scope is defined (choice C is another way of saying finalize the project scope statement) and would come before creating a WBS. Choice D cannot be best, as that work does not come next in the process. Other work, like creating a network diagram, should be completed before risk management can effectively be done. The only correct choice is the activity list (choice B).

The project has 13 team members and affects over 15 departments in the organization. Because the project is 20 percent complete to date and the team has had successful performance reports from five of the affected departments, the project manager holds a party to celebrate. The project manager invites key stakeholders from all of the departments to the party, in order to give those providing good reviews an informal opportunity to communicate good things to those departments that have not yet been affected by the project. At the party, the project manager walks around to try to discover any relevant information that would help the project be more successful. He happens to hear a manager of one of the departments talking about setting up more regular meetings on the project. The BEST thing for the project manager to do would be to FIRST: A. Record the effectiveness of the party in the project lessons learned. B. Review the information distribution methods on the project. C. Hold a meeting of all the stakeholders to discuss their concerns. D. Make sure the manager has a copy of the communications management plan so he is reminded that such concerns should be sent to the project manager.

Answer B Explanation Many of these choices could be done, but ask yourself, What is the most effective thing to do? The party may well generate lessons learned, and recording them (choice A) would certainly be a good idea, but the question asked what to do first. There is a more immediate issue- the manager. Choice C could also be useful, but it would require taking time of all the stakeholders when there is only one stakeholder, the manager, who definitely has an issue. Besides, a good project manager would be holding regular meetings with the stakeholders already. Choice D might be a good idea, as the manager apparently is not communicating with the project manager. However, this would not absolutely make sure the manager does communicate. The manager is, in effect, saying that he is not getting the information he needs. His lack of needed information is causing him to suggest more meetings. Too many meetings are a problem on projects. The concept of information distribution (choice B) is to determine who needs what information and plan how to get it to them. A great project manager does not just add meetings, but solves the real problem in the best way. That might take the form of changing a report or sending existing reports to different people rather than adding meetings. For these reasons, choice B is best.

When a project manager is engaged in negotiations, nonverbal communication skills are of: A. Little importance. B. Major importance. C. Importance only when cost and schedule objectives are involved. D. Importance only to ensure you win the negotiation.

Answer B Explanation Nonverbal communication carries 55 percent of the message you send. With this much at stake, nonverbal communication is of major importance.

The project team seems to like to argue; they have argued about everything. Luckily the project manager has set in place a reward system and team-building sessions that will help and encourage the team to cooperate more. The latest thing they are arguing about is whether they should complete a work package themselves or outsource the work to someone else. What part of the procurement process must they be in? A. Conduct Procurements B. Plan Procurements C. Administer Procurements D. Claims Administration

Answer B Explanation Notice that much of this question is irrelevant? Did you also notice that the words make-or-buy decision were not used in the question? Instead, the question used the definition of make-or-buy. Watch out for this on the exam. A make-or-buy decision is needed before the rest of the procurement process can occur. Therefore, the situation must be taking place in one of the early steps of the procurement process.

One of the stakeholders on the project contacts the project manager to discuss some additional scope they would like to add to the project. The project manager asks for details in writing and then works through the Control Scope process. What should the project manager do NEXT when the evaluation of the requested scope is complete? A. Ask the stakeholder if there are any more changes expected. B. Complete integrated change control. C. Make sure the impact of the change is understood by the stakeholder. D. Find out the root cause of why the scope was not discovered during project planning.

Answer B Explanation Notice that there are many things that the project manager could do listed in the choices. The question asks what is the BEST thing to do NEXT. Though they are great things to do, choices A, C, and D are not next. Management of the change is not complete when the Control Scope process is completed. It is important to look at the impact of the change on other parts of the project such as time and cost. Therefore, choice B is the best thing to do next, probably followed by C and then D and A.

A project manager had a complex problem to solve and made a decision about what needed to be done. A few months later, the problem resurfaced. What did the project manager MOST likely not do? A. Proper risk analysis B. Confirm that the decision solved the problem C. Have the project sponsor validate the decision D. Use an Ishikawa diagram

Answer B Explanation Notice the phrasing of this question, most likely NOT do:' Expect to see questions worded on the exam in ways that can cause you to misinterpret them. You will also see questions about things we forget to do in the real world. Who has time:' you might say, to determine if each problem is really solved? One could respond with, Who has time not to do this? Who has time to deal with the same problem twice? The final steps of problem solving include: implement a decision, review it, and confirm that the decision solved the problem.

A project manager is using weighted average duration estimates to perform schedule network analysis. Which type of mathematical analysis is being used? A. Critical path method B. PERT C. Monte Carlo D. Resource leveling

Answer B Explanation PERT uses a weighted average to compute activity durations.

You are halfway through a major network rollout. There are 300 locations in the United States with another another 20 in England. A software seller has just released a major software upgrade for some of the equipment being installed. The upgrade would provide the customer with functionality they requested that was not available at the time the project began. What is the BEST course of action under these circumstances? A. Continue as planned, your customer has not requested a change. B. Inform the customer of the upgrade and the impacts to the project's timeline and functionality if the upgrade is implemented. C. Implement the change and adjust the schedule as necessary because this supports the customer's original request. D. Implement the change to the remaining sites and continue with the schedule.

Answer B Explanation Professional and social responsibility includes looking after the customer's best interests. Therefore, choice A cannot be best. In this case, the schedule and scope are already approved and all changes must go through the change control process. Therefore, choices C and D cannot be best.

You are a project manager leading a cross-functional project team in a weak matrix environment. None of your project team members report to you functionally, and you do not have the ability to directly reward their performance. The project is difficult, involving tight date constraints and challenging quality standards. Which of the following types of project management power will likely be the MOST effective in this circumstance? A. Referent B. Expert C. Penalty D. Formal

Answer B Explanation Reward and expert are the best sources of power. Reward is not listed as a choice.

What should be done with risks on the watchlist? A. Document them for historical use on other projects. B. Document them and revisit during project monitoring and controlling. C. Document them and set them aside because they are already covered in your contingency plans. D. Document them and give them to the customer.

Answer B Explanation Risks change throughout the project. You need to review risks at intervals during the project to ensure that non-critical risks have not become critical.

Project setup costs are an example of: A. Variable costs. B. Fixed costs. C. Overhead costs. D. Opportunity costs.

Answer B Explanation Setup costs do not change as production on the project changes. Therefore, they are fixed costs.

During the middle of the project, things have been going well. The work authorization system has allowed people to know when to start work, and the issue log has helped keep track of stakeholders' needs. The benefit cost ratio has been improving, and the sponsor has expressed his appreciation for the team members' efforts by hosting a milestone party for the team. The project manager gets a call from a team member saying that the results from the completion of their activity's predecessor is two days late. Which of the following reasons would BEST describe why this occurred? A. The project manager was focusing on the sponsor's needs. B. Functional management was not included in the communications management plan. C. The successor activities should have been watched, not the predecessors. D. The right people were not invited to the milestone party.

Answer B Explanation Since there is no information about the sponsor or his needs in this situation and nothing presented here relates to sponsors, choice A cannot be best. Choice C cannot be best, as it is not a correct statement. One watches both predecessor and successor activities. Choice D cannot be best, as the attendance at the party and the issue at hand are not related. Often forgotten in communications management plans are the bosses of team members (functional management, since of course you remember that we are assuming a matrix organization). Including the bosses of team members in communications planning, requirements gathering, risk management, and other areas of project management helps make the project better. In addition, it helps the boss manage his own resources effectively. If the functional manager of the team member assigned to the predecessor activity had been included, he would have known when the team member was needed to do work for the project and the impact, if any, of delay. The communications management plan might also have included a method to communicate potential delays. For these reasons, choice B is best.

During the Identify Risks process, a project manager made a long list of risks identified by all the stakeholders using various methods. He then made sure that all the risks were understood and that triggers had been identified. Later, in the Plan Risk Responses process, he took all the risks identified by the stakeholders and determined ways to mitigate them. What has he done wrong? A. The project manager should have waited until the Perform Qualitative Risk Analysis process to get the stakeholders involved. B. More people should be involved in the Plan Risk Responses process. C. The project manager should have created workarounds. D. Triggers are not identified until the Identify Risks process.

Answer B Explanation Stakeholders (choice A) are involved in the Identify Risks process. Workarounds (choice C) are created later in the risk process. Plan Risk Responses must include the involvement of all risk response owners and possibly others. This makes choice B the correct answer.

You are asked to prepare a budget for completing a project that was started last year and then shelved for six months. All the following would be included in the budget EXCEPT: A. Fixed costs. B. Sunk costs. C. Direct costs. D. Variable costs.

Answer B Explanation Sunk costs (choice B) are expended costs. The rule is that they should not be considered when deciding whether to continue with a troubled project.

You have been appointed as the manager of a new, large, and complex project. Because this project is business-critical and very visible, senior management has told you to analyze the project's risks and prepare response strategies for them as soon as possible. The organization has risk management procedures that are seldom used or followed, and has had a history of handling risks badly. The project's first milestone is in two weeks. In preparing the risk response plan, input from which of the following is generally LEAST important? A. Project team members B. Project sponsor C. Individuals responsible for risk management policies and templates D. Key stakeholders

Answer B Explanation Team members (choice A) will have knowledge of the project and the product of the project and will thus have a lot to contribute to risk responses. Those responsible for risk templates (choice C) will be able to provide the templates from past projects (historical records) and therefore will be very important. Key stakeholders (choice D) will know more about the technical working of the project to help plan What are we going to do about it? so choice D is not likely to be the least important. The sponsor (choice B) may have the least knowledge of what will work to solve the problems. Sponsors need to be involved in the project and help identify risks. They may even approve the response plans created by others, but they would not generally be major contributors to response plans. This makes B the best choice.

Which of the following is a chief characteristic of the Delphi technique? A. Extrapolation from historical records from previous projects B. Expert opinion C. Analytical hierarchy process D. Bottom-up approach

Answer B Explanation The Delphi technique uses experts and builds to consensus; therefore, expert opinion is the chief characteristic.

A new project manager has asked you for advice on creating a work breakdown structure. After you explain the process to her, she asks you what software she should use to create the WBS and what she should do with it when she is finished creating it. You might respond that it is not the picture that is the most valuable result of creating a WBS. It is: A. A bar chart. B. Team buy-in. C. Activities. D. A list of risks.

Answer B Explanation The WBS is an input to all of these choices. However, team buy-in (choice B) is a direct result of the WBS creation process, while the other choices use the WBS to assist in their completion. The best answer is choice B.

A project manager has just found out that a major subcontractor for her project is consistently late delivering work. The project team member responsible for this part of the project does not get along with the subcontractor. To resolve the problem, the project manager says, "You both will have to give up something to solve this problem." What conflict resolution method is she using? A. Confrontation B. Compromise C. Smoothing D. Communicating

Answer B Explanation The act of both parties giving something defines compromise.

Which of the following is the BEST project management tool to use to determine the longest time the project will take? A. WBS B. Network diagram C. Bar chart D. Project charter

Answer B Explanation The bar chart (choice C) may show an end date, but it is not used to determine dates and show progress. The project charter (choice D) may include any required end dates, but not a logical determination of how long the project will take. The network diagram (choice B) takes the work packages from the work breakdown structure (choice A) and adds dependencies. The dependencies allow us to look at the various paths through the diagram. The longest duration path is the critical path. Choice B is the best answer.

You have created the project charter, but could not get it approved. Your manager and his boss have asked that the project begin immediately. Which of the following is the BEST thing to do? A. Set up an integrated change control process. B. Show your manager the impact of proceeding without approval. C. Focus on completing projects that have signed project charters. D. Start work on only the critical path activities.

Answer B Explanation The best thing to do would be to show the impact. This is the only choice that prevents future problems-always the best choice. The other choices just pretend the problem does not exist.

You have just been assigned as project manager for a large manufacturing project. This one-year project is about halfway done. It involves five different sellers and 20 members of your company on the project team. You want to quickly review where the project now stands. Which of the following reports would be the MOST helpful in finding such information? A. Work status B. Progress C. Forecast D. Communications

Answer B Explanation The key word is quickly. The status report (choice A) is too detailed for a quick look. The forecast report (choice C) only looks into the future. The progress report (choice B) will summarize project status.

Which of the following is a KEY output of the Verify Scope process? A. A more complete scope management plan B. Customer acceptance of project deliverables C. Improved schedule estimates D. An improved project management information system

Answer B Explanation The output of the Verify Scope process is customer acceptance of project deliverables. The other choices all happen during project planning, well before the time that the Verify Scope process takes place.

You have just completed the initiating processes of a small project and are moving into the planning processes when a project stakeholder asks you for the project's budget and cost baseline. What should you tell her? A. The project budget can be found in the project's charter, which has just been completed. B. The project budget and baseline will not be finalized and accepted until the planning processes are completed. C. The project management plan will not contain the project's budget and baseline; this is a small project. D. It is impossible to complete an estimate before the project management plan is created.

Answer B Explanation The overall project budget (choice A) may be included in the project charter but not the detailed costs. Even small projects (choice C) should have a budget and schedule. It is not impossible to create a project budget before the project management plan is created (choice D). It is just not wise, as the budget will not be accurate.

The project life cycle differs from the product life cycle in that the project life cycle: A. Does not incorporate a methodology. B. Is different for each industry. C. Can spawn many projects. D. Describes project management activities.

Answer B Explanation The project life cycle does incorporate a methodology-for doing the work-so choice A cannot be best. It is the product life cycle that spawns many projects, so choice C cannot be best. Project management activities are described in the project management process, so choice D cannot be best. The project life cycle is different for each industry, so choice B is the best answer.

During project executing, the project manager determines that a change is needed to material purchased for the project. The project manager calls a meeting of the team to plan how to make the change. This is an example of: A. Management by objectives. B. Lack of a change management plan. C. Good team relations. D. Lack of a clear work breakdown structure.

Answer B Explanation The project manager is asking how to make a change. The procedures, forms, sign- offs, and other similar requirements for handling changes should have already been defined in the change management plan (choice B). Because they weren't, the project manager will waste valuable work time trying to figure it out after the fact.

All of the following are the responsibility of a project manager EXCEPT: A. Maintain the confidentiality of customer confidential information. B. Determine the legality of company procedures. C. Ensure that a conflict of interest does not compromise the legitimate interest of the customer. D. Provide accurate and truthful representations in cost estimates.

Answer B Explanation The project manager is neither empowered nor competent to determine the legality of company procedures. NOTE: There is an important distinction between practices and procedures. All unethical practices should be reported. For example, a project manager must report an act of fraud. Fraud is not a company procedure (normally). However, a project manager is not in a position to determine whether company procedures comply with existing law.

A project manager must publish a project schedule. Activities, start/end times, and resources are identified. What should the project manager do NEXT? A. Distribute the project schedule according to the communications management plan. B. Confirm the availability of the resources. C. Refine the project management plan to reflect more accurate costing information. D. Publish a bar chart illustrating the timeline.

Answer B Explanation The project schedule remains preliminary until resource assignments are confirmed.

During what part of the project management process is the project scope statement created? A. Initiating B. Planning C. Executing D. Monitoring and controlling

Answer B Explanation The project scope statement is an output of the Define Scope process, which occurs during project planning.

You are a project manager on a US $5,000,000 software development project. While working with your project team to develop a network diagram, your data architects suggest that quality could be improved if the data model is approved by senior management before moving on to other design elements. They support this suggestion with an article from a leading software development journal. Which of the following BEST describes what this type of input is called? A. Mandatory dependency B. Discretionary dependency C. External dependency D. Heuristic

Answer B Explanation The situation is neither mandatory (choice A), nor driven by an external source (choice C). A rule of thumb (choice D) is something that can be used consistently. This situation is a unique occurrence. The situation is a suggestion of a preferred method, so choice B is the best answer.

During a project team meeting, a team member suggests an enhancement to the scope that is beyond the scope of the project charter. The project manager points out that the team needs to concentrate on completing all the work and only the work required. This is an example of: A. Change management process. B. Scope management. C. Quality analysis. D. Scope decomposition.

Answer B Explanation The team member is suggesting an enhancement that is outside the scope of the project charter. Scope management involves focusing on doing the work and only the work in the project management plan that meets the objectives of the project charter. The project manager is performing scope management.

A project has had some problems, but now seems under control. In the last few months, almost all the reserve has been used up and most of the negative impacts of events that had been predicted have occurred. There are only four activities left, and two of them are on the critical path. Management now informs the project manager that it would be in the performing organization's best interest to finish the project two weeks earlier than scheduled in order to receive an additional profit. In response, the project manager sends out a request for proposal for some work that the team was going to do, in the hopes that another company might be able to do the work faster. The project manager can BEST be said to be attempting to work with: A. Reserve. B. Opportunities. C. Scope verification. D. Threats.

Answer B Explanation The wording of this question can be confusing. Reserve (choice A) is mentioned in the situation, but the project manager is not dealing with reserves in the actions he is taking. Choice C involves meeting with the customer to gain formal acceptance, so it cannot be the best choice. Choice D cannot be the best choice since the project manager is trying to make something good happen, not dealing with a negative impact, or threat, that mayor may not occur. The project manager is working to make a positive impact on the project more likely to occur. Therefore, choice B is best.

A project manager is managing his second project. It started one month after the first and both are ongoing. Though his first project is small, this one seems to be growing in size every day. As each day passes, the project manager is beginning to feel more and more in need of help. The project manager has recently heard that there was another project in the company last year that is similar to his second project. What should he do? A. Contact the other project manager and ask for assistance. B. Obtain historical records and guidance from the project management office (PMO). C. Wait to see if the project is impacted by the growth in scope. D. Make sure the scope for the project is agreed to by all the stakeholders.

Answer B Explanation There are many things the project manager could do. Choice A is not the best choice, as the other project manager might not be an experienced mentor. His advice might not be adequate to help this project manager. Choice C is reactive, while a project manager should be proactive. Choice D is not the best choice. It would be helpful, but does not specifically address the issues in this situation. If the PMO is contacted, the project manager can receive the knowledge of many project managers, historical information from many projects, and have the assistance of someone whose job it is to help.

A market demand, a business need, and/or legal requirement are examples of: A. Reasons to hire a project manager. B. Reasons projects are initiated. C. Reasons people or businesses become stakeholders. D. Reasons to sponsor a project.

Answer B Explanation These are all reasons projects are initiated.

Risks will be identified during which risk management process(es)? A. Perform Quantitative Risk Analysis and Identify Risks B. Identify Risks and Monitor and Control Risks C. Perform Qualitative Risk Analysis and Monitor and Control Risks D. Identify Risks

Answer B Explanation This is a tricky question. Risks are identified during the Identify Risk process, naturally, but newly emerging risks are identified in the Monitor and Control Risks process.

A project manager has just been assigned to a new project and has been given the project charter. The FIRST thing the project manager must do is: A. Create a project scope statement. B. Confirm that all the stakeholders have had input into the scope. C. Analyze project risk. D. Begin work on a project management plan.

Answer B Explanation This question can be tricky, especially if you have spent so much time studying that you have forgotten some good project management practices. A quick look at Rita's Process Chart in this book might draw you to conclude that the FIRST thing would be to start planning. Wouldn't it be smart to make sure what you have in the project charter is clear and complete before moving on? This is why choice B is the best choice.

A project manager does not have much time to spend planning before the mandatory start date arrives. He therefore wants to move through planning as effectively as possible. Which of the following would you recommend? A. Make sure you have a signed project charter and then start the WBS. B. Create an activity list before creating a network diagram. C. Document all the known risks before you document the high-level assumptions. D. Finalize the quality management plan before you determine quality metrics.

Answer B Explanation This question is asking which of the choices is the most effective way to move through the planning process. Choice A skips the important steps of defining the scope and other activities. High-level assumptions are determined prior to risk identification in the planning process, making choice C incorrect. Metrics are part of the quality management plan, making choice D incorrect. Choice B is best, as the activity list is created immediately before the network diagram.

All of the following are outputs of the Estimate Costs process EXCEPT: A. An understanding of the cost risk in the work that has been estimated. B. The prevention of inappropriate changes from being included in the cost baseline. C. An indication of the range of possible costs for the project. D. Documentation of any assumptions made during the Estimate Costs process.

Answer B Explanation This question is asking, When you finish estimating costs, what do you have? Many people who do not realize that estimates should be in a range pick choice C. Choice B is more correctly part of the cost management plan and the change control system.

You are taking over a project during the planning process group and discover that six individuals have signed the project charter. Which of the following should MOST concern you? A. Who will be a member of the change control board B. Spending more time on configuration management C. Getting a single project sponsor D. Determining the reporting structure

Answer B Explanation This situation implies that there are six areas concerned with this project. In addition to added communications requirements, you should be concerned with competing needs and requirements impacting your efforts on configuration management.

A project has three critical paths. Which of the following BEST describes how this affects the project? A. It makes it easier to manage. B. It increases the project risk. C. It requires more people. D. It makes it more expensive.

Answer B Explanation Though having three critical paths COULD require more people (choice C) or cost more (choice D), the answer that is definitely and always true is choice B. Because you need to manage three critical paths, there is more risk that something could happen to delay the project.

The sponsor's role on a project is BEST described as: A. Helping to plan activities. B. Helping to prevent unnecessary changes to project objectives. C. Identifying unnecessary project constraints. D. Helping to put the project management plan together.

Answer B Explanation Though the sponsor may help plan some of the activities (choice A) it is not the sponsor's exclusive duty. Some project constraints (choice C) come from the sponsor, but they should be considered necessary. The project management plan (choice D) is created by the team and approved by the sponsor and other management. Since the project objectives are stated in the project charter and it is the sponsor who issues the project charter, choice B is the correct answer.

During project planning, you estimate the time needed for each activity and then add the estimates to create the project estimate. You commit to completing the project by this date. What is wrong with this scenario? A. The team did not create the estimate, and estimating takes too long using that method. B. The team did not create the estimate, and a network diagram was not used. C. The estimate is too long and should be created by management. D. The project estimate should be the same as the customer's required completion date.

Answer B Explanation Time estimates for the activities should be created by the team and should not be added. Some activities may take place concurrently. Therefore, choice B must be the correct answer.

Purchasing insurance is BEST considered an example of risk: A. Mitigation. B. Transfer. C. Acceptance. D. Avoidance.

Answer B Explanation To mitigate risk (choice A), we either reduce the probability of the event happening or reduce its impact. Many people think of using insurance as a way of decreasing impact. However, mitigating risk is taking action before a risk event occurs. Buying insurance is not such an action. Acceptance of risk (choice C) does not involve such action as purchasing insurance. Avoidance of risk (choice D) means we change the way we will execute the project so the risk is no longer a factor. Transference is passing the risk off to another party.

A particular stakeholder has a reputation for making many changes on projects. What is the BEST approach a project manager can take at the beginning of the project to manage this situation? A. Say No to the stakeholder a few times to dissuade him from submitting more changes. B. Get the stakeholder involved in the project as early as possible. C. Talk to the stakeholder's boss to find ways to direct the stakeholder's activities to another project. D. Ask that the stakeholder not be included in the stakeholder listing.

Answer B Explanation We cannot avoid the stakeholder (choices C and D), because he has a stake in the project. A project manager can say "No" (choice A), but this does not solve the root cause. There may be some good ideas within those changes. The only choice that deals with the problem is choice B. Changes are not bad! Changes normally come from lack of input at the beginning of the project. If we begin effective communication with this stakeholder early (choice B), we stand a much better chance of discovering his changes during the planning process, when they will have less of an impact on the project. Risk Management CHAPTER ELEVEN

While preparing your risk responses, you identify additional risks. What should you do? A. Add reserves to the project to accommodate the new risks and notify management. B. Document the risk items, and calculate the expected monetary value based on probability and impact that result from the occurrences. C. Determine the risk events and the associated cost, then add the cost to the project budget as a reserve. D. Add a 10 percent contingency to the project budget and notify the customer.

Answer B Explanation When a new risk is identified, it should go through the risk management process. Choice A cannot be the best choice, as you first need to determine the probability and impact of the risk and then try to diminish impact through the Plan Risk Responses process. Only after these efforts should you add reserves. Choice C addresses only costs, when there could also be a time impact. This choice also ignores the work of Plan Risk Responses. Choice D cannot be the best choice because it is better to determine reserves based on a detailed analysis of risk. Therefore, the best choice is B.

A work authorization system can be used to: A. Manage who does each activity. B. Manage what time and in what sequence work is done. C. Manage when each activity is done. D. Manage who does each activity and when it is done.

Answer B Explanation Who does each activity (choices A and D) is managed with the schedule and responsibility assignment matrices. The project schedule manages when each activity is done (choice C). A work authorization system is used to coordinate when and in what order the work is performed so that work and people may properly interface with other work and other people.

Extensive use of ________ communication is most likely to aid in solving complex problems. A. Verbal B. Written C. Formal D. Nonverbal

Answer B Explanation Written communication allows your words to be documented, and they will go to everyone in the same form. When there are complex problems, you want everyone to receive the same thing.

A system development project is nearing project closing when a previously unidentified risk is discovered. This could potentially affect the project's overall ability to deliver. What should be done NEXT? A. Alert the project sponsor of potential impacts to cost, scope, or schedule. B. Qualify the risk. C. Mitigate this risk by developing a risk response plan. D. Develop a workaround.

Answer B Explanation You would need to analyze the problem before you would talk to the sponsor (choice A). You could not mitigate the risk (choice C) until you qualified the risk. A workaround (choice D) is an unplanned response to a risk that is occurring. This risk is identified, not occurring, so there is no need to take action by creating a workaround. Qualifying the risk (choice B) will give you an indication of how great the risk is. That information will help you determine how to proceed.

A cost baseline is an output of which cost management process? A. Estimate Activity Resources B. Estimate Costs C. Determine Budget D. Control Costs

Answer C Explanation A cost baseline is an output of the Determine Budget process.

What is the duration of a milestone? A. Shorter than the duration of the longest activity B. Shorter than the activity it represents C. There is no duration D. Same length as the activity it represents

Answer C Explanation A milestone shows the completion of a series of activities or work packages. Therefore, it takes no time of its own. With this in mind, choice C is the best answer.

The first phase of your project has come to an end. What should you ensure is done BEFORE beginning the next phase? A. Verify that the resources are available for the next phase. B. Check the project's progress compared to its baselines. C. Confirm that the phase has reached its objectives, and have its deliverables formally accepted. D. Recommend corrective action to bring the project results in line with project expectations.

Answer C Explanation A phase or project must be formally closed and accepted.

A watchlist is an output of which risk management process? A. Plan Risk Responses B. Perform Quantitative Risk Analysis C. Perform Qualitative Risk Analysis D. Plan Risk Management

Answer C Explanation A watch list is made up of low priority risks that, in the Perform Qualitative Risk Analysis process, were determined to be of too low priority or low impact to move further in the risk process.

Although the stakeholders thought there was enough money in the budget, halfway through the project the cost performance index (CPI) is 0.7. To determine the root cause, several stakeholders audit the project and discover the project cost budget was estimated analogously. Although the activity estimates add up to the project estimate, the stakeholders think something was missing in how the estimate was completed. Which of the following describes what was missing? A. Estimated costs should be used to measure CPI. B. SPI should be used, not CPI. C. Bottom-up estimating should have been used. D. Past history was not taken into account.

Answer C Explanation Actual costs are used to measure CPI, and there is no reason to use SPI in this situation, so choices A and B are not correct. Using past history (choice D) is another way of saying analogous. The best way to estimate is bottom-up (choice C). Such estimating would have improved the overall quality of the estimate.

Which process groups must be included in every project? A. Planning, executing, and closing B. Initiating, planning, and executing C. Initiating, planning, executing, monitoring and controlling, and closing D. Planning, executing, and monitoring and controlling

Answer C Explanation All five process groups are addressed in each project. It is the responsibility of the project manager to determine the level of attention to give to each process group.

Analogous estimating: A. Uses bottom-up estimating techniques. B. Is used most frequently during the executing processes of the project. C. Uses top-down estimating techniques. D. Uses actual detailed historical costs.

Answer C Explanation Analogous estimating is used most frequently during the planning processes, not the executing processes (choice B). You do not need to use historical costs (choice D) for an analogous estimate. Therefore, choice C is the correct answer.

A seller is awarded a contract to build a pipeline. The contract terms and conditions require that a work plan be issued for the buyer's approval prior to commencing work, but the seller fails to provide one. Which of the following is the BEST thing for the buyer's project manager to do? A. File a letter of intent. B. Develop the work plan and issue it to the seller to move things along. C. Issue a default letter. D. Issue a stop work order to the seller until a work plan is prepared.

Answer C Explanation Any time that a seller does not perform according to the contract, the project manager must take action. The preferred choice might be to contact the seller and ask what is going on, but that choice is not available here. Therefore, the best choice is to let him know he is in default (choice C).

Which of the following BEST describes the project manager's role during the procurement process? A. The project manager has only minor involvement. B. The project manager should be the negotiator. C. The project manager should supply an understanding of the risks of the project. D. The project manager should tell the contract manager how the contracting process should be handled.

Answer C Explanation As the project manager, you know what the project risks are. You need to make sure that provisions are included in the contract to address these risks.

During a meeting with some of the project stakeholders, the project manager is asked to add work to the project scope. The project manager had access to correspondence about the project before the project charter was signed and remembers that the project sponsor specifically denied funding for the scope mentioned by these stakeholders. The BEST thing for the project manager to do is to: A. Let the sponsor know of the stakeholders' request. B. Evaluate the impact of adding the scope. C. Tell the stakeholders the scope cannot be added. D. Add the work if there is time available in the project schedule.

Answer C Explanation Based on the information presented, there is no reason to try to convince the sponsor to add the work (choices B and D). Though one could let the sponsor know (choice A) the best choice would be to say no. A better choice would be to find the root cause of the problem, but that choice is not listed here.

A project manager has very little project experience, but he has been assigned as the project manager of a new project. Because he will be working in a matrix organization to complete his project, he can expect communications to be: A. Simple. B. Open and accurate. C. Complex. D. Hard to automate.

Answer C Explanation Because a project done in a matrix organization involves people from across the organization, communications are more complex.

Your management has decided that all orders will be treated as projects and that project managers will be used to update orders daily, to resolve issues, and to ensure that the customer formally accepts the product within 30 days of completion. Revenue from the individual orders can vary from US $100 to US $150,000. The project manager will not be required to perform planning or provide documentation other than daily status. How would you define this situation? A. Because each individual order is a temporary endeavor:' each order is a project. B. This is program management since there are multiple projects involved. C. This is a recurring process. D. Orders incurring revenue over $100,000 would be considered projects and would involve project management.

Answer C Explanation Because orders are numerous and of short duration, this situation is a process, not a project.

One of your team members informs you that he does not know which of the many projects he is working on is the most important. Who should determine the priorities among projects in a company? A. The project manager B. The project management team C. The project management office D. The team

Answer C Explanation Because the question talks about priorities among projects, this cannot be the role of the project manager (choice A), the project management team (choice B), or the project team (choice D).

You are a new project manager who has never managed a project before. You have been asked to plan a new project. It would be BEST in this situation to rely on during planning in order to improve your chance of success. A. Your intuition and training B. Stakeholder analysis C. Historical information D. Configuration management

Answer C Explanation Because you have no experience, you will have to look at the experience of others. This information is captured in the historical records from previous projects.

You are a project manager who was just assigned to take over a project from another project manager who is leaving the company. The previous project manager tells you that the project is on schedule, but only because he has constantly pushed the team to perform. What is the FIRST thing you should do as the new project manager? A. Check risk status. B. Check cost performance. C. Determine a management strategy. D. Tell the team your objectives.

Answer C Explanation Before you can do anything else, you have to know what YOU are going to do. Developing the management strategy will provide the framework for all the rest of the choices presented and the other activities that need to be done.

Project information has been distributed according to the communications management plan. Some project deliverables have been changed in accordance with the project management plan. One stakeholder expressed surprise to the project manager upon hearing of a previously published change to a project deliverable. All stakeholders received the communication containing notification of the change. What should the project manager do? A. Determine why the stakeholder did not receive the information and let him know when it was published. B. Ask the functional manager why the stakeholder did not understand his responsibility. C. Review the communications management plan and make revisions if necessary. D. Address the situation in the next steering committee meeting so others do not miss published changes.

Answer C Explanation Choice A cannot be correct because the question states that all stakeholders received the information. Choices Band D do not address the root cause of the problem. The problem presented here shows that there is something missing in the communications management plan. The best answer is to review the communications management plan in order to prevent future problems and find any instances of similar problems.

A project manager discovers a defect in a deliverable due to the customer under contract today. The project manager knows the customer does not have the technical understanding to notice the defect. The deliverable meets the contract requirements, but it does not meet the project manager's quality standard. What should the project manager do in this situation? A. Issue the deliverable and get formal acceptance from the customer. B. Note the problem in the lessons learned so future projects do not encounter the same problem. C. Discuss the issue with the customer. D. Inform the customer that the deliverable will be late.

Answer C Explanation Choice A does not follow the rule to protect the best interests of the customer. Choice B does not solve the problem. Choice D will cause a default of contract. Although the deliverable meets the contractual requirements, it is best to bring the problem to the customer's attention (choice C) so an option that does no harm can be found.

Cost risk means: A. There are risks that will cost the project money. B. The project is too risky from a cost aspect. C. There is a risk that project costs could go higher than planned. D. There is a risk that the cost of the project will be lower than planned.

Answer C Explanation Choice A is a correct statement but it is not the definition of cost risk. Choice B refers to the overall cost risk on the project, and assumes that the risk is too great to do the project. The opposite of choice D is correct.

A project manager is being considered for a particular project that will deal exclusively with global virtual teams. He only has experience with local teams. What should he do when discussing the opportunity with the sponsor? A. Since he has led projects and teams, it does not make any difference that these are all global virtual teams, so he does not need to bring it up. B. He should avoid any conversation regarding the types of teams involved so the sponsor does not know he lacks experience in this area. C. The project manager should point out to the sponsor that he has not had experience with global virtual teams, but discuss why he thinks he is a good fit for the project anyway. D. The project manager should point out to the sponsor that he has not had experience with global virtual teams and therefore must decline the assignment.

Answer C Explanation Choice A is incorrect because there are many issues that will be different in this project than those the project manager has experience with. Choice B is unethical and constitutes lying about his qualifications. Choice D is not right because the project manager may have so many skills that would benefit the project that this might not be a major problem. We must make sure sponsors know of any gaps in our qualifications when taking on assignments.

Which of the following BEST describes the relationship between standard deviation and risk? A. Nothing B. Standard deviation tells you if the estimate is accurate. C. Standard deviation tells you how unsure the estimate is. D. Standard deviation tells you if the estimate includes a pad.

Answer C Explanation Choice A is not best, as the standard deviation tells you the amount of uncertainty or risk involved in the estimate for the activity. An estimate can have a wide range (choice B) and still be accurate if the item estimated includes risks. Choice D cannot be the best answer since there is no such thing as a pad in proper project management. An estimate might be inflated, but it is because of risks, not padding.

The WBS, estimates for each work package, and the network diagram are completed. Which of the following would be the NEXT thing for the project manager to do? A. Sequence the activities. B. Verify that they have the correct scope. C. Create a preliminary schedule and get the team's approval. D. Complete risk management.

Answer C Explanation Choice A is the same thing as create a network diagram. Choice B is another name for Verify Scope, which is done during the monitoring and controlling process group, not during project planning. Since a schedule is an input to risk management, choice D comes after choice C and so it is not the next thing to do: The only remaining choice is C.

The project manager is allocating overall cost estimates to individual activities to establish a baseline for measuring project performance. What process is this? A. Cost Management B. Estimate Costs C. Determine Budget D. Control Costs

Answer C Explanation Choice A is too general. The estimates are already created in this example, so the answer is not choice B. The answer is not D, Control Costs, because the baseline has not yet been created. The correct answer is choice C.

A project manager needs to analyze the project costs to find ways to decrease costs. It would be BEST if the project manager looks at: A. Variable costs and fixed costs. B. Fixed costs and indirect costs. C. Direct costs and variable costs. D. Indirect costs and direct costs.

Answer C Explanation Choice C describes costs that are directly attributable to the project or that vary with the amount of work accomplished. Human Resource Management CHAPTER NINE

You are managing a six-month project and have held biweekly meetings with your project stakeholders. After five-and-a-half months of work, the project is on schedule and budget, but the stakeholders are not satisfied with the deliverables. This situation will delay the project completion by one month. The MOST important process that could have prevented this situation is: A. Monitor and Control Risks. B. Control Schedule. C. Define Scope. D. Control Scope.

Answer C Explanation Choices A, B, and D are processes in the monitoring and controlling process group. This situation asks how to prevent the problem. This would have been done during the planning processes. The project deliverables are defined in the Define Scope process (choice C), which is a part of project planning. Good planning reduces the likelihood of a situation like the one described by including the right people and spending adequate time in clarifying the project scope.

You are in the middle of executing a major modification to an existing product when you learn that the resources promised at the beginning of the project are not available. The BEST thing to do is to: A. Show how the resources were originally promised to your project. B. Replan the project without the resources. C. Explain the impact if the promised resources are not made available. D. Crash the project.

Answer C Explanation Choices B and D are essentially delaying the situation. Instead, the project manager should try to prevent the situation by showing the consequences if the resources are not available (choice C). This is a more effective strategy than saying but you gave them to me:' as in choice A.

The project team has just completed the initial project schedule and budget. The NEXT thing to do is: A. Identify risks. B. Begin iterations. C. Determine communications requirements. D. Create a bar (Gantt) chart.

Answer C Explanation Communications requirements and quality standards are needed before risks (especially risks relating to communications and quality) can be determined (choice A). Iterations (choice B) cannot begin until the risks are identified, qualified, quantified, and responses developed. These then create the need to revise the WBS and other parts of the project management plan. A bar chart (choice D) would have been done during the creation of the schedule, so it cannot be the next thing. Of the choices listed, determine communications requirements (choice C) is the best.

In order to complete work on your projects, you have been provided confidential information from all of your clients. A university contacts you to help it in its research. Such assistance would require you to provide the university with some of the client data from your files. What should you do? A. Release the information, but remove all references to the clients' names. B. Provide high-level information only. C. Contact your clients and seek permission to disclose the information. D. Disclose the information.

Answer C Explanation Confidential information should be respected (not disclosed to third parties without the express approval of the client). If you picked choice A, remember that the clients own the confidential information. See, not all professional and social responsibility questions are tough!

What conflict resolution technique is a project manager using when he says, I cannot deal with this issue now! A. Problem solving B. Forcing C. Withdrawal D. Compromising

Answer C Explanation Delaying the issue is called withdrawal.

The engineering department wants the project objective to be a 10 percent improvement in throughput. The information technology department wants no more than 5 percent of its resources to be used on the project. Management, who is also your boss, wants the project team to decrease tax liability. The BEST thing you can do is: A. Put a plan together that meets all the objectives. B. Have these people get together and agree on one objective. C. Include the engineering and information technology objectives but hold further meetings regarding management's objective. D. Include only management's objective.

Answer C Explanation Did this one catch you? All deliverables must be quantifiable. Management's objective cannot be measured and therefore, needs more work. That means choice A is not correct. All parties rarely agree on all objectives (choice B). All the objectives should be met, but they must be quantifiable, so choice D is not correct. You need to have more discussions with management so you can make their objective quantifiable.

You have a project with the following activities: Activity A takes 40 hours and can start after the project starts. Activity B takes 25 hours and should happen after the project starts. Activity C must happen after activity A and takes 35 hours. Activity D must happen after activities Band C and takes 30 hours. Activity E must take place after activity C and takes 10 hours. Activity F takes place after Activity E and takes 22 hours. Activities F and D are the last activities of the project. Which of the following is TRUE if activity B actually takes 37 hours? A. The critical path is 67 hours. B. The critical path changes to Start, B, D, End. C. The critical path is Start, A, C, E, F, End. D. The critical path increases by 12 hours.

Answer C Explanation Did you notice how difficult this question was to read? Such wording is intentional, to prepare you for interpreting questions on the real exam. Looking at this situation, you see that there are three paths through the network. They are Start, A, C, E, F, End with a duration of 40 + 35 + 10 + 22 = 107; Start, A, C, D, End with a duration of 40 + 35 + 30 = 105; and Start, B, D, End with a duration of 25 + 30 = 55. If the duration of activity B changes from 25 to 37, the activity will take 12 hours longer. As the activity is only on the third path, it will only change the duration of that path from 55 to 55 + 12 = 67 hours. Since the duration of the critical path is 107 hours, the delay with activity B will have no impact on the project timeline or the current critical path.

The new project is exciting to both the project manager and the team. This is the project manager's first assignment as project manager. The team has the feeling that they will be able to complete work that has never been tried before. There are 29 people contributing to the product description and the team consists of nine highly experienced experts in their field. Part of the way through planning, three highly technical team members are disagreeing about the scope of two of the deliverables. One is pointing to the draft WBS and saying that two additional work packages should be added. Another is saying that a particular work package should not even be done. The third team member agrees with both of them. How should the project manager BEST deal with the conflict? A. He should listen to the differences of opinion, determine the best choice, and implement that choice. B. He should postpone further discussions, meet with each individual, and determine the best approach. C. He should listen to the differences of opinions, encourage logical discussions, and facilitate an agreement. D. He should help the team focus on agreeable aspects of their opinions and build unity by using relaxation techniques and common focus team building.

Answer C Explanation Do not get confused by the wordiness of the question. Ask yourself what is the best way to resolve any conflict, and you can get the answer. Most of the situation is a distracter. Problem solving and compromising are the two most important conflict resolution techniques. Conflict management is a key general management skill.

The client demands changes to the product specification that will add only two weeks to the critical path. Which of the following is the BEST thing for the project manager to do? A. Compress the schedule to recover the two weeks. B. Cut scope to recover the two weeks. C. Consult with the sponsor about options. D. Advise the client of the impact of the change.

Answer C Explanation Do you remember what to do when there is a change? Evaluate first. You wouldn't take action before getting approval, so compressing the schedule (choice A) and cutting scope (choice B) would happen after choices C and/or D. You would not go to the customer before going to your internal management, so choice D is not the correct thing to do next. The next step is to discuss options with the sponsor (choice C).

In which process group does the team measure and analyze the work being done on the project? A. Initiating B. Executing C. Monitoring and controlling D. Closing

Answer C Explanation During the monitoring and controlling process group, project performance is measured, and needed changes are identified and approved.

A schedule performance index (SPI) of 0.76 means: A. You are over budget. B. You are ahead of schedule. C. You are only progressing at 76 percent of the rate originally planned. D. You are only progressing at 24 percent of the rate originally planned.

Answer C Explanation Earned value questions ask for a calculation or an interpretation of the results. See the tricks under this topic in this book.

A project manager gets a call from a team member notifying him that there is a variance between the speed of a system on the project and the desired or planned speed. The project manager is surprised because that performance measurement was not identified in planning. If the project manager then evaluates whether the variance warrants a response, he is in what project management process? A. Initiating B. Executing C. Monitoring and controlling D. Closing

Answer C Explanation Even though the measurement was not identified in planning, the project manager would still have to investigate the variance and determine if it is important. Therefore, the project manager is in the project monitoring and controlling process group.

Bidder conferences are part of: A. Plan Procurements. B. Administer Procurements. C. Conduct Procurements. D. Communications Management.

Answer C Explanation Expect many questions on the exam that require you to know in what part of the procurement process activities are done.

If a project has a 60 percent chance of a US $100,000 profit and a 40 percent chance of a US$100,000 loss, the expected monetary value for the project is: A. $100,000 profit. B. $60,000 loss. C. $20,000 profit. D. $40,000 loss.

Answer C Explanation Expected monetary value (EMV) is computed by EMV = Probability x Impact. We need to compute both positive and negative values and then add them. 0.6 x $100,000 = $60,000. 0.4 x ($100,000) = ($40,000) Expected Monetary Value = $60,000 - $40,000 = $20,000 profit

If a risk event has a 90 percent chance of occurring, and the consequences will be US $10,000, what does US $9,000 represent? A. Risk value B. Present value C. Expected monetary value D. Contingency budget

Answer C Explanation Expected monetary value is computed by multiplying the probability times the impact. In this case, EMV = 0.9 x $10,000 = $9,000.

If project time and cost are not as important as the number of resources used each month, which of the following is the BEST thing to do? A. Perform a Monte Carlo analysis. B. Fast track the project. C. Perform resource leveling. D. Analyze the life cycle costs.

Answer C Explanation Fast tracking (choice B) would affect time and cost. Monte Carlo analysis and life cycle costs (choices A and D) do not directly deal with resources. Leveling (choice C) is the only choice that will definitely affect resources.

The project has been challenging to manage. Everyone has been on edge due to pressure to complete the project on time. Unfortunately, the tension has grown to the point where team meetings have become shouting matches and little work is accomplished during the meetings. One team member asks to be excused from future team meetings, as all the shouting upsets him. Meanwhile, the sponsor has asked to attend team meetings in order to better understand how the project is going and the issues involved in completing the project, and the customer has started discussions about adding scope to the project. In this situation, it would be BEST for the project manager to: A. Ask the sponsor if the information needed could be sent in a report rather than have her attend the meeting. B. Inform the team member who asked to be excused from the meetings of the value of communication in such meetings. C. Create new ground rules for the meetings and introduce them to the team. D. Hold a team-building exercise that involves all the team members.

Answer C Explanation Here is a situation where all four choices could be done. Choice A does not solve the root cause of the problem described. Choice B merely dismisses the concerns of the team member and might cause anger. A team building exercise (choice D) would take planning and so could not be done right away. Remember, the sponsor might be attending the next meeting and at least one team member might not attend because of past problems. The best thing to do would be to set up new ground rules for the team governing behavior (choice C) and then plan a team-building exercise (choice D).

Who has the cost risk in a fixed price (FP) contract? A. The team B. The buyer C. The seller D. Management

Answer C Explanation If the costs are more than expected under a fixed price contract, the seller must pay those costs. As explained in the Procurement Management chapter, cost risk refers to the person who will have to pay for the added cost if costs escalate. Because the price is fixed, the seller will have to pay any increased costs out of their profit. Naturally, this does not include increased PRICE due to change orders. A fixed price contract and the PRICE could be changed with change orders.

With a clear contract statement of work, a seller completes work as specified, but the buyer is not pleased with the results. The contract is considered to be: A. Null and void. B. Incomplete. C. Complete. D. Waived.

Answer C Explanation If the seller completes the work specified in the procurement statement of work, the contract is considered complete. That does not mean the same thing as contract closed. The Close Procurements process must still occur. However, in this situation, the contract work is completed. Tricky!

You are finding it difficult to evaluate the exact cost impact of risks. You should evaluate on a(n): A. Quantitative basis. B. Numerical basis. C. Qualitative basis. D. Econometric basis.

Answer C Explanation If you cannot determine an exact cost impact to the event, use qualitative estimates such as Low, Medium, High, etc.

A team member notifies the project manager that the activities comprising a work package are no longer appropriate. It would be BEST for the project manager to be in what part of the project management process? A. Corrective action B. Integrated change control C. Monitoring and controlling D. Project closing

Answer C Explanation If you chose another part of the project management process, you probably forgot that the situation needs to be evaluated by the project manager before recommending a change or entering integrated change control.

Your company has an emergency and needs contracted work done as soon as possible. Under these circumstances, which of the following would be the MOST helpful to add to the contract? A. A clear procurement statement of work B. Requirements as to which subcontractors can be used C. Incentives D. A force majeure clause

Answer C Explanation If you follow the proper project management process, you ALWAYS have good definition of scope (choice A). In this situation, you are in a time crunch. Both good scope definition and incentives are required to make it happen. Which provides the better answer? Along with good scope definition, you need the seller to feel your need for speed. Incentives bring the seller's objectives in line with the buyer's and thus would be the MOST helpful. Good cope definition alone does not ensure speed.

During project executing, your project team member delivers a project deliverable to the buyer. However, the buyer refuses the deliverable, stating that it does not meet the requirement on page 300 of the technical specifications. You review the document and find that you agree. What is the BEST thing to do? A. Explain that the contract is wrong and should be changed. B. Issue a change order. C. Review the requirements and meet with the responsible team member to review the WBS dictionary. D. Call a meeting of the team to review the requirement on page 300.

Answer C Explanation In choice A, the contract could be wrong, or the customer could be wrong, but this would have/should have been discovered earlier if proper project management was followed. If you picked choice B, you have forgotten that a seller cannot issue a change order (although he could request one). Did you select choice D? If so, remember that project management is not about making every decision with ALL the team members. Choice C involves meeting with the appropriate team member. If such a problem has arisen, it could mean something was wrong in the WBS dictionary or in how the team member completed the work.

A project manager for the seller is told by her management that the project should do whatever possible to be awarded incentive money. The primary objective of incentive clauses in a contract is to: A. Reduce costs for the buyer. B. Help the seller control costs. C. Synchronize objectives. D. Reduce risk for the seller by shifting risk to the buyer.

Answer C Explanation Incentives are meant to bring the objectives of the seller in line with those of the buyer. That way both are progressing toward the same objective.

The halo effect refers to the tendency to: A. Promote from within. B. Hire the best. C. Move people into project management because they are good in their technical fields. D. Move people into project management because they have had project management training.

Answer C Explanation Just because a person is good in his technical field does not mean he or she will also be a good project manager.

Your project management plan results in a project schedule that is too long. If the project network diagram cannot change but you have extra personnel resources, what is the BEST thing to do? A. Fast track the project. B. Level the resources. C. Crash the project. D. Monte Carlo analysis.

Answer C Explanation Leveling resources (choice B) generally extends the schedule. Monte Carlo analysis (choice D) does not directly address the constraints of this situation. To compress the schedule, you could either crash or fast track. However, the situation says that the network diagram cannot change. This eliminates the fast tracking option (choice A), leaving choice C as the best answer.

All of the following MUST be present to have a contract EXCEPT: A. Procurement statement of work B. Acceptance C. Address of the seller D. Buyers' signatures

Answer C Explanation Many people miss the fact that a contract includes a procurement statement of work (choice A). To have a contract, you must also have acceptance (choice B). One set of signatures is not enough; you must have sign-off (i.e., acceptance) from both parties, so choice D is only partially correct. The address of the seller (choice C) is not required, and therefore is the exception.

It is the middle of the project when the project manager is informed by her scheduler that the project control limits are secure. That same morning she receives a note from a team member about a problem he is having. The note says, "This activity is driving me crazy, and the manager of the accounting department won't help me until the activity's float is in jeopardy." In addition, the project manager has e-mails from a minor stakeholder and 14 e-mails from team members. While she is reading the e-mails, a team member walks into the project manager's office to tell her a corrective action was implemented by a team member from the project management office, but was not documented. What should the project manager do NEXT? A. Report the documentation violation to the project management office, evaluate the security of the control limits, and review the e-mailing rules in the communications management plan. B. Clarify the reasoning behind documentation being a problem, get the accounting department to assist the team member, and respond to the minor stakeholder. C. Add the implemented corrective action to the historical records, discuss the value of documentation at the next team meeting, and smooth the team member with the accounting department problem. D. Find out who caused the problem with the accounting department, respond to the minor stakeholder before responding to the other e-mails, and review the process listed in the communications plan for reporting concerns with the team member having the documentation problem.

Answer C Explanation Notice how many situations are thrown at you in this question. It is important to practice reading through questions to discover what is important and what is just background information. In this question, the only thing relevant was the corrective action taken. Once you discover what the issue is, look at the choices to find out which is best for addressing the issue. What is the issue here? Did you realize that the team member's note is about a non-critical path activity? (Until the project float is in jeopardy means that there is float and, thus, it is not on the critical path.) So is the issue the non-critical path activity or the documentation? You might disagree with the logic, but in this case the answer is the documentation. In the real world, problems often repeat. Without a record of what was done, there is no opportunity to consider the same solution for future problems. Documentation is critical to projects. Because documentation becomes part of the historical records database, choice C is correct.

In which project management process group is the detailed project budget created? A. Initiating B. Before the project management process C. Planning D. Executing

Answer C Explanation Notice the use of the word "detailed." Such a budget is created during the planning process group.

Once signed, a contract is legally binding unless: A. One party is unable to perform. B. One party is unable to finance its part of the work. C. It is in violation of applicable law. D. It is declared null and void by either party's legal counsel.

Answer C Explanation Once signed, a contract is binding. Generally, the inability to perform, get financing, or one party's belief that the contract is null and void does not change the fact that the contract is binding. If, however, both sides agree to terminate the contract, the contract can move into closure. Once closure is completed, the project is considered completed.

A scope change has been suggested by one of the stakeholders on the project. After careful consideration and a lot of arguing, the change control board has decided to reject the change. What should the project manager do? A. Support the stakeholder by asking the board for the reason for the rejection. B. Suggest to the stakeholder that the next change they request will be approved. C. Record the change request and its result. D. Advise the change control board to make sure they create approval processes before the next change is proposed.

Answer C Explanation One could do choice A, but there is no reason to think that the board's rejection would not contain an explanation already, since providing that information is commonly done. Suggesting a change process that circumvents the change control board's authority (choice B) is not ethical. There is no reason to think that approval processes are not already in place (choice D). A rejected change should be recorded for historical purposes, in case the idea is resurrected later, and for other reasons.

Operational work is different from project work in that it is: A. Unique B. Temporary C. On-going and repetitive. D. A part of every project activity.

Answer C Explanation Operational work is that which is ongoing to sustain an organization.

Negotiations between two parties are becoming complex, so party A makes some notes that both parties sign. However, when the work is being done, party B claims that they are not required to provide an item they both agreed to during negotiations, because it was not included in the subsequent contract. In this case, party B is: A. Incorrect, because both parties must comply with what they agreed upon. B. Correct, because there was an offer. C. Generally correct, because both parties are only required to perform what is in the contract. D. Generally incorrect, because all agreements must be upheld.

Answer C Explanation Party B is only required to deliver what is defined in the contract.

A project manager discovers an urgent need for outsourced resources on the project. He knows he has the money to cover the cost of these resources. He goes to the procurement manager and explains the situation, insisting a contract be drawn up today so he can obtain resources and circumvent the standard procedure. Is this the correct process to follow? A. Yes, of course. For urgent needs, it is not necessary to follow the organization's procedure regarding procurement. B. Yes. Urgent needs from projects should always be dealt with immediately as directed by the project manager. C. No. The procurement manager has a process to follow when creating contracts that helps protect the company and its projects. D. No. The procurement manager should be checking in with the project manager to see if he is in need of a contract, rather than making the project manager come and ask for one.

Answer C Explanation Procrastination or a lack of planning on the part of the project manager does not create an emergency situation for the procurement manager. Circumventing the process (choice A) is not ethical. Choice B implies that projects always come first, and that the project manager has authority over the procurement manager. Choice D is not a common practice, nor is it logical. Choice C is the correct answer because it demonstrates respect for the procurement manager and the processes in place to protect the organization.

When would a milestone chart be used instead of a bar chart? A. Project planning B. Reporting to team members C. Reporting to management D. Risk analysis

Answer C Explanation Project planning (choice A) would use both types of charts. Team members (choice B) need to see details and so they need a bar chart rather than a milestone chart. Risk analysis (choice D) COULD make use of both charts. A milestone chart is used instead of a bar chart for any situation where you want to report in a less detailed way (choice C). Bar charts can scare people with their complexity and often show too much detail to be worthwhile on a management level. Milestone charts are more effective for reporting to management.

You are in the middle of a complex negotiation when the other party says, "We need to finish in one hour because I have to catch my plane." That person is using which of the following negotiation strategies? A. Good guy, bad guy B. Delay C. Deadline D. Extreme demands

Answer C Explanation Putting a time limit on the negotiation is an example of deadline.

Which of the following is a benefit of an analogous project estimate? A. The estimate will be closer to what the work will actually require. B. It is based on a detailed understanding of what the work requires. C. It gives the project team an understanding of management's expectations. D. It helps the project manager determine if the project will meet the schedule.

Answer C Explanation Remember for the exam that analogous estimates are considered to be top-down, high-level estimates, even though a high-level or even a definitive estimate can be estimated analogously. Therefore, choices A and B cannot be correct. The project manager needs more than an analogous (high-level) estimate to determine whether or not the project will meet the schedule (choice D). It is a benefit to know management's expectations of how much the project will cost so that any differences between the analogous estimate and the detailed bottom-up estimate can be reconciled in the planning processes. The best choice is C.

Consideration of ongoing operations and maintenance is crucially important to products of projects. Ongoing operations and maintenance should: A. Be included as activities to be performed during project closure. B. Have a separate phase in the project life cycle, because a large portion of life cycle costs is devoted to maintenance and operations. C. Not be viewed as part of a project. A project is temporary with a definite beginning and end. D. Be viewed as a separate project.

Answer C Explanation Remember the definition of a project: temporary and unique. Operations and maintenance are considered on-going activities, not temporary. Therefore, such work is not considered a project or part of a project.

Project A has an internal rate of return (IRR) of 21 percent. Project B has an IRR of 7 percent. Project C has an IRR of 31 percent. Project D has an IRR of 19 percent. Which of these would be the BEST project? A. Project A B. Project B C. Project C D. Project D

Answer C Explanation Remember, the internal rate of return is similar to the interest rate you get from the bank. The higher the rate is, the better the return.

During every project team meeting, the project manager asks each team member to describe the work he or she is doing, and the project manager assigns new activities to team members. The length of these meetings has increased because there are many different activities to assign. This could be happening for all the following reasons EXCEPT: A. Lack of a WBS. B. Lack of a responsibility assignment matrix. C. Lack of resource leveling. D. Lack of team involvement in project planning.

Answer C Explanation Resource leveling refers to maintaining the same number of resources on the project for each time period. Leveling has nothing to do with assigning activities or managing meetings.

A dependency requiring that design be completed before manufacturing can start is an example of a: A. Discretionary dependency. B. External dependency. C. Mandatory dependency. D. Scope dependency.

Answer C Explanation Since the dependency is required, it could not be discretionary (choice A) and therefore must be mandatory. No mention is made that the dependency comes from a source outside the project, so external (choice B) is not correct. Scope dependency (choice D) is not a defined term. The key word in this question is requires:' The question defines a mandatory dependency.

Which of the following BEST describes the Verify Scope process? A. It provides assurances that the deliverable meets the specifications, is an input to the project management plan, and is an output of Perform Quality Control. B. It ensures that the deliverable is completed on time, ensures customer acceptance, and shows that the deliverable meets specifications. C. It ensures customer acceptance, shows that the deliverable meets specifications, and provides a chance for differences of opinion to come to light. D. It is an output of Perform Quality Control, occurs before Define Scope, and ensures customer acceptance.

Answer C Explanation Since the project management plan is completed before the Verify Scope process, choice A cannot be best. Since Verify Scope does not deal with time, but rather acceptance, choice B cannot be best. Since the Verify Scope process does not occur before the Define Scope process, choice D cannot be best. Only the statements in choice C are completely correct, making that the best answer.

All the following statements about change control are incorrect EXCEPT: A. A fixed price contract will minimize the need for change control. B. Changes seldom provide real benefits to the project. C. Contracts should include procedures to accommodate changes. D. More detailed specifications eliminate the causes of changes.

Answer C Explanation Since there can be changes in any form of contract, choice A is not the best answer. There are always good ideas (changes) that can add benefit to the project, so choice B cannot be the best answer. In choice D, the word eliminate implies that changes will not occur. As that is not true, this cannot be the best answer.

Which of the following BEST describes product analysis? A. Working with the customer to determine the product description B. Mathematically analyzing the quality desired for the project C. Gaining a better understanding of the product of the project in order to create the project scope statement D. Determining if the quality standard on the project can be met

Answer C Explanation Since you need to have a product description before you can do product analysis, choice A cannot be best. Choice B is related to Plan Quality. Choice D is Perform Quality Assurance. Time Management CHAPTER SIX

The project is in the planning process group when three stakeholders come to the project manager asking for information on the company's new project management methodology. They want to know where it came from and why it is different from the way they currently manage projects. These stakeholders are also friends of the project manager, and the entire group has worked together for years. The project is using some new terms like corrective action that are making some stakeholders nervous, as they are unsure whether the way projects will be managed is going to change along with new terms. What should the project manager do? A. Advise the stakeholders that she will keep them in the communication loop for the project. B. Supply a list of new terms and their definitions. C. Notify the project management office (PMO). D. Make sure she maintains her authority as the project manager even though the stakeholders are her friends.

Answer C Explanation Some students may think this question has more than one right answer. It does not. There are many things the project manager can do, but what should be done? The company policies are managed by the project management office and the project manager should make sure the stakeholders have clear information by sending them directly to the authority on company policies for project management.

When should the Verify Scope process be done? A. At the end of the project B. At the beginning of the project C. At the end of each phase of the project D. During the planning processes

Answer C Explanation The Verify Scope process occurs during the monitoring and controlling process group, so choices A, B, and D cannot be correct. Verify Scope is done at the end of each phase (the end of design, implementation, etc.), making choice C the best answer.

A project manager asked various stakeholders to determine the probability and impact of a number of risks. He then analyzed assumptions. He is about to move to the next step of risk management. Based on this information, what has the project manager forgotten to do? A. Evaluate trends in risk analysis. B. Identify triggers. C. Provide a standardized risk rating matrix. D. Create a fallback plan.

Answer C Explanation The activities of the Perform Qualitative Risk Analysis process are probability and impact definition, assumptions testing (data quality assessment), and probability and impact matrix development.

The project team is arguing about the prospective sellers who have submitted proposals. One team member argues for a certain seller while another team member wants the project to be awarded to a different seller. The BEST thing the project manager should remind the team to focus on in order to make a selection is the: A. Procurement documents. B. Procurement audits. C. Evaluation criteria. D. Procurement management plan.

Answer C Explanation The evaluation criteria are the primary tools for evaluating potential sellers and should be used by the entire team in order to make a selection.

A project manager is trying to convince management to use more formal project management procedures and has decided to start improving the company's project management by obtaining a project charter. Which of the following BEST describes why the project charter would help the project manager? A. It describes the details of what needs to be done. B. It lists the names of all team members. C. It gives the project manager authority. D. It describes the project's history.

Answer C Explanation The exam will ask questions like this to make sure you know the benefits you should be getting out of the process and tools of project management. The details of what needs to be done (choice A) are found in the WBS dictionary. The names of team members (choice B) are included in the responsibility assignment matrix and other documents. Project history (choice D) is found in the lessons learned and other project documents.

Which process group focuses on completing the requirements of the project? A. Initiating B. Planning C. Executing D. Closing

Answer C Explanation The executing process group is where work is done to produce the product of the project.

A team member is not performing well on the project because she is inexperienced in system development work. There is no one else available who is better qualified to do the work. What is the BEST solution for the project manager? A. Consult with the functional manager to determine project completion incentives for the team member. B. Obtain a new resource more skilled in development work. C. Arrange for the team member to get training. D. Allocate some of the project schedule reserve.

Answer C Explanation The job of the project manager includes providing or obtaining project -specific training for team members. This kind of training is a direct cost of the project.

Rearranging resources so that a constant number of resources is used each month is called: A. Crashing. B. Floating. C. Leveling. D. Fast tracking.

Answer C Explanation The key to this question is the phrase constant number used each month. Only leveling, choice C, has such an effect on the schedule.

To manage a project effectively, work should be broken down into small pieces. Which of the following does NOT describe how far to decompose the work? A. Until it has a meaningful conclusion B. Until it cannot be logically subdivided further C. Until it can be done by one person D. Until it can be realistically estimated

Answer C Explanation The lowest level of the WBS is a work package, which can be performed by more than one person.

The MOST likely result of communication blockers is that: A. The project is delayed. B. Trust level is enhanced. C. Conflict occurs. D. Senior management is displeased.

Answer C Explanation The major result of communication blockers and miscommunication as a whole is conflict.

A work breakdown structure numbering system allows the project staff to: A. Systematically estimate costs of work breakdown structure elements. B. Provide project justification. C. Identify the level at which individual elements are found. D. Use it in project management software.

Answer C Explanation The numbering system allows you to quickly identify the level in the work breakdown structure where the specific element is found. It also helps to locate the element in the WBS dictionary.

Which of the following BEST describes a project management plan? A. A printout from project management software B. A bar chart C. Risk, staffing, process improvement, and other management plans D. The project scope

Answer C Explanation The project management plan contains more than just a bar or Gantt chart and the project manager's plan for completing the work. It includes all the management plans for the project.

The need for is one of the major driving forces for communication in a project. A. Optimization B. Integrity C. Integration D. Differentiation

Answer C Explanation The project manager is an integrator. This is a question about your role as an integrator and communicator.

The BEST time to assign a project manager to a project is during: A. Executing. B. Closing. C. Initiating. D. Planning.

Answer C Explanation The project manager must be assigned during initiating.

After much excitement and hard work, the procurement statement of work for the project is completed. Even after gaining agreement that the procurement statement of work is complete, the project manager is still concerned whether it actually addresses all the buyer's needs. The project manager is about to attend the bidder conference. He asks you for advice on what to do during the session. Which of the following is the BEST advice you can give him? A. You do not need to attend this session. The contract manager will hold it. B. Make sure you negotiate project scope. C. Make sure you give all the sellers enough time to ask questions. They may not want to ask questions while their competitors are in the room. D. Let the project sponsor handle the meeting so you can be the good guy in the negotiation session.

Answer C Explanation The project manager should attend the bidder conference, so choice A is incorrect. Did you select choice B because the question referred to a concern about scope? Then read the choice again. It talks about negotiation, and negotiation occurs after the seller is selected, not during the bidder conference. The procurement manager usually holds the bidder conference, so choice D is incorrect. Choice C describes one of the many challenges of a bidder conference and is therefore the best answer.

A project manager may use to make sure the team members clearly know what work is included in each of their work packages. A. The project scope statement B. The product scope C. A WBS dictionary D. A schedule

Answer C Explanation The project scope statement (choice A) describes work on a high-level basis. Work packages need to be specific to enable team members to complete their work with less gold plating. The product scope (choice B) would not tell team members what work is assigned to them. The team should have a copy of the schedule (choice D), but a schedule will not show them what work is included in each of their work packages. Work packages are described in the WBS dictionary (choice C). NOTE: Do not think of the WBS dictionary as a dictionary of terms.

You were in the middle of a two-year project to deploy new technology to field offices across the country. A hurricane caused power outages just when the upgrade was near completion. When the power was restored, all of the project reports and historical data were lost with no way of retrieving them. What should have been done to prevent this problem? A. Purchase insurance. B. Plan for a reserve fund. C. Monitor the weather and have a contingency plan. D. Schedule the installation outside of the hurricane season.

Answer C Explanation The risk is the loss of data due to a power outage. Choice A is not related to mitigating the problem. It transfers the risk. A reserve fund (choice B) is acceptance and would help address the cost factors after the power failure, but would not reduce the probability or impact of it. Avoiding the hurricane by scheduling the installation at a different time (choice D) mitigates the power outage risk but could have a large negative impact on the project schedule and so is not the best choice. The better choice of the mitigation options (choices C and D) is to monitor the weather and know when to implement the contingency plan.

A project is plagued by changes to the project charter. Who has the primary responsibility to decide if these changes are necessary? A. The project manager B. The project team C. The sponsor D. The stakeholders

Answer C Explanation The sponsor issues the project charter and so he or she should help the project manager control changes to the charter. The primary responsibility lies with the sponsor.

During the first half of the project, five team members left for other projects without being replaced, two team members went on vacation without informing you, and other team members expressed uncertainty about the work they were to complete. In this situation, it is BEST if you create a ______ for the second half of the project? A. Work breakdown structure B. Resource histogram C. Staffing management plan D. Responsibility assignment matrix

Answer C Explanation The staffing management plan describes when resources will be brought onto and taken off the project.

A project manager's scope management efforts are being audited. The cost performance index (CPI) on the project is 1.13, and the benefit cost ratio (BCR) is 1.2. The project scope was created by the team and stakeholders. Requirements on the project have been changing throughout the project. No matter what the project manager has tried to accomplish in managing the project, which of the following is he MOST likely to face in the future? A. Having to cut costs on the project and increase benefits B. Making sure the customer approved the project scope C. Not being able to measure completion of the product of the project D. Having to add resources to the project

Answer C Explanation There are many pieces of data in this question that are distracters from the real issue. Though it is common to have to cut costs (choice A) and add resources to a project (choice D), nothing in the question should lead you to think these will be required in this situation. Customers do not generally approve the project scope (what you are going to do to complete their requirements); instead, they approve the product scope (their requirements), so choice B cannot be best. Since the requirements are a measure of the completion of the product of the project (choice C), not having completed requirements makes such measurement impossible. This is why choice C is the best choice.

You have always been asked by your management to cut your project estimate by 10 percent after you have given it to them. The scope of your new project is unclear and there are over 30 stakeholders. Management expects a 25 percent reduction in downtime as a result of the project. Which of the following is the BEST course of action in this situation? A. Replan to achieve a 35 percent improvement in downtime. B. Reduce the estimates and note the changes in the risk response plan. C. Provide an accurate estimate of the actual costs and be able to support it. D. Meet with the team to identify where you can find 10 percent savings.

Answer C Explanation This is a common problem on projects that many inexperienced project managers handle by doing choice B or D. If your estimates are accurate, you are ethically bound to stand by them (choice C). Management's only option to cut cost is to support the project manager's looking for options related to the other project constraints. Choice A does not address costs, the issue at hand.

The seller tells you that your activities have resulted in an increase in their costs. You should: A. Recommend a change to the project costs. B. Have a meeting with management to find out what to do. C. Ask the seller for supporting information. D. Deny any wrongdoing.

Answer C Explanation This is a professional and social responsibility/procurement/cost question. The situation described involves a claim. The best thing to do would be to get supporting information to find out what happened and take corrective action for the future. After choice C and negotiation, choice A would most likely occur. Choice D is unethical. Choice B is a meeting with YOUR management and should not occur until you have all the information.

The customer requests a change to the project that would increase the project risk. Which of the following should you do before all the others? A. Include the expected monetary value of the risk in the new cost estimate. B. Talk to the customer about the impact of the change. C. Analyze the impacts of the change with the team. D. Change the risk management plan.

Answer C Explanation This is a recurring theme. First, you should evaluate the impact of the change. Next, determine options. Then go to management and the customer.

A project manager has managed four projects for the company and is being considered to join the project management office team. The following is discovered during the evaluation of his performance. The project manager's first project had an ending cost variance of -500, used two critical resources, needed to rework the project charter during project executing and was ranked 14th in priority within the company. The second project finished with a schedule variance of +100, was completed with a vastly compressed schedule, and received a letter of recommendation from the sponsor, but the product of the project was not used. The third project had 23 percent more changes than expected, had an SPI of 0.90, and 25 open items in the issue log when the project was completed. Each of these projects had a cost budget of US $1,000 and 20 to 28 percent more changes than others of its size. The project management office decided not to add this project manager to the team. Which of the following BEST describes why this might have happened? A. The project manager has only managed low-priority projects, and he had to compress the schedule, showing that he does not have the skill to work in the project management office. B. Issue logs should not be used on projects of this size, showing that the project manager does not have the knowledge to work in a project management office. C. The project manager did not effectively involve the stakeholders, showing that he does not have the knowledge to work in the project management office. D. The project manger had two critical resources on his team and still needed to rework the project charter, showing that he does not have the discipline to work in the project management office.

Answer C Explanation This is a very confusing question. Notice all the distracters that mayor may not be relevant? Since most project schedules are compressed by the project manager during project planning, choice A is not a logical reason and so cannot be the best choice. Issue logs can be used on smaller projects, which means choice B is not the best choice. The number of critical (or hard-to-get) resources noted in choice D has no bearing on the need to rework the project charter. Since it does not make logical sense, it cannot be the best choice. Take another look at the second and third projects. In the second project, the product of the project was not used. This implies many things, including the possibilities that either the project manager did not identify the requirements of all the stakeholders or that the business need of the project changed dramatically and the project manager did not notice. This indicates a major flaw in the project manager's abilities. In the third project, there were 25 concerns of the stakeholders that were not addressed before the project was completed. Again, this shows a major lack of project management knowledge. The needs of the stakeholders and not just the sponsor must be taken into account on all projects. This makes choice C the best choice.

A manager and the head of engineering discuss a change to a major work package. After the meeting, the manager contacts you and tells you to complete the paperwork to make the change. This is an example of: A. Management attention to scope management. B. Management planning. C. A project expediter position. D. A change control system.

Answer C Explanation This is an example of a project expediter position because you are not evaluating the change, looking for impacts, etc. You are merely implementing others' requests. In this case, you are acting as the project expediter.

Which of the following is the BEST thing to do to try to complete a project two days earlier? A. Tell senior management that the project's critical path does not allow the project to be finished earlier. B. Tell your boss. C. Meet with the team and look for options for crashing or fast tracking the critical path. D. Work hard and see what the project status is next month.

Answer C Explanation This is another question that asks about problem solving. Only choice C relates to evaluate:' Choices B and D do not try to solve the real problem. Choice A is just an untrue statement.

A large, complex construction project in a foreign country requires coordination to move the required equipment through crowded city streets. To ensure the equipment is transported successfully, your contact in that country informs you that you will have to pay the local police a fee for coordinating traffic. What should you do? A. Do not pay the fee because it is a bribe. B. Eliminate the work. C. Pay the fee. D. Do not pay the fee if it is not part of the project estimate.

Answer C Explanation This is fee for service paid to a government official and is therefore not a bribe.

Assuming that the ends of a range of estimates are +/- 3 sigma from the mean, which of the following range estimates involves the LEAST risk? A. 30 days, plus or minus 5 days B. 22 - 30 days C. Optimistic = 26 days, most likely = 30 days, pessimistic = 33 days D. Mean of 28 days

Answer C Explanation This one drove you crazy didn't it? Reread the question! When you look at the ranges of each choice, you will see that choice A is ten days, choice B is eight days, and choice C is seven days. The range of estimates with the smallest range is the least risky. Therefore, the answer is C. The words +/- 3 sigma are extraneous. Practice reading questions that are wordy and have extraneous data.

Effective project integration usually requires an emphasis on: A. The personal careers of the team members. B. Timely updates to the project management plan. C. Effective communications at key interface points. D. Product control.

Answer C Explanation This question is asking for the most important of the choices. Think about what is involved in integration: project management plan development, project management plan execution, and integrated change control. In order to integrate the project components into a cohesive whole, communication is key when one activity will interface with another, one team member will interface with another, and any other form of interfacing will occur. Choices Band D are parts of the monitoring and controlling process group, while integration includes more than control. Choice A falls under project management plan execution.

You provide a project cost estimate for the project to the project sponsor. He is unhappy with the estimate, because he thinks the price should be lower. He asks you to cut 15 percent off the project estimate. What should you do? A. Start the project and constantly look for cost savings. B. Tell all the team members to cut 15 percent from their estimates. C. Inform the sponsor of the activities to be cut. D. Add additional resources with low hourly rates.

Answer C Explanation This question is full of choices that are not correct project management actions. If you picked the wrong answer, look again at the choices and try to determine what you are missing. Whatever it is, it will show up more than once on the real exam! To answer the question, you must first realize that it is never appropriate for a project manager to just cut estimates across the board (choice B). The project manager should have created an estimate with realistic work package estimates that do not include padding. Then, if costs must be decreased, the project manager can look to cut quality, decrease risk, cut scope, or use cheaper resources (and at the same time closely monitor the impact of changes on the project schedule). One of the worst things a project manager can do is to start a project while knowing that the time or cost for the project is unrealistic. Therefore, choice A cannot be best. Notice that choice D suggests adding resources. That would cost more. Choice C involves evaluating, looking for alternatives, and then going to the sponsor to tell him the impact of the cost cutting.

During a team meeting, a team member asks about the measurements that will be used on the project to judge performance. The team member feels that some of the measures related to activities assigned him are not valid measurements. The project is BEST considered in what part of the project management process? A. Closing B. Monitoring and controlling C. Executing D. Initiating

Answer C Explanation This situation does not describe an actual measurement (a monitoring and controlling activity) but rather a meeting occurring during project executing talking about control issues.

A project manager has just finished the risk response plan for a us $387,000 engineering project. Which of the following should he probably do NEXT? A. Determine the overall risk rating of the project. B. Begin to analyze the risks that show up in the project drawings. C. Add work packages to the project work breakdown structure. D. Hold a project risk reassessment.

Answer C Explanation This situation is occurring during project planning. Planning must be completed before moving on. Determining the risk rating of the project (choice A) is done during the Perform Qualitative Risk Analysis process, and should have already been done. Choice B is work that is done during project executing. Project risk reassessment (choice D) occurs during Monitor and Control Risks, the next step in the risk process after Plan Risk Responses. But the question does not ask what is next in the risk management process, just what is next. Only choice C, as part of iterations, comes after risk in project planning. Do you know the order of planning yet?

Which of the following is CORRECT in regard to the Control Scope process? A. Effective scope definition can lead to a more complete project scope statement. B. The Control Scope process must be done before scope planning. C. The Scope Control process must be integrated with other control processes. D. Controlling the schedule is the most effective way of controlling scope.

Answer C Explanation Though it is a correct statement, choice A cannot be the answer because it does not deal with control. Since scope planning occurs before the Control Scope process, choice B cannot be the answer. Since controlling the schedule is not the best way to control scope, choice D is not the best answer. The control processes do not act in isolation. A change to one will most likely affect the others. Therefore, choice C is the best answer.

Lag means: A. The amount of time an activity can be delayed without delaying the project finish date. B. The amount of time an activity can be delayed without delaying the early start date of its successor. C. Waiting time. D. The product of a forward and backward pass.

Answer C Explanation Total float and free float (choices A and B) are the time an activity can be delayed without impacting the entire project or the next activity. Critical path method (choice D) is a network analysis technique, not waiting time. Choice C is the correct answer.

During which risk management process is a determination to transfer a risk made? A. Identify Risks B. Perform Quantitative Risk Analysis C. Plan Risk Responses D. Monitor and Control Risks

Answer C Explanation Transference is a risk response strategy.

Double declining balance is a form of: A. Decelerated depreciation. B. Straight line depreciation. C. Accelerated depreciation. D. Life cycle costing.

Answer C Explanation We need to know that double declining balance is a form of depreciation. That eliminates choice D. We also know that double declining balance is a form of accelerated depreciation, eliminating choices A and B. Therefore, C is the correct response.

Estimate at completion (EAC) is a periodic evaluation of: A. The cost of work completed. B. The value of work performed. C. The anticipated total cost at project completion. D. What it will cost to finish the job.

Answer C Explanation When you look at earned value, many of the terms have similar definitions. This could get you into trouble. Since the EAC means the estimate at completion, choice C is the best answer. Choice D is the definition of ETC, estimate to complete.

You are the project manager for a new international project, and your project team includes people from four countries. Most of the team members have not worked on similar projects before, but the project has strong support from senior management. What is the BEST thing to do to ensure that cultural differences do not interfere with the project? A. Spend a little more time creating the work breakdown structure and making sure it is complete. B. As the project manager, make sure you choose your words carefully whenever you communicate. C. Ask one person at each team meeting to describe something unique about their culture. D. Carefully encode all of the project manager's communications.

Answer C Explanation You should have noticed that only choices A and C involve more people than just the project manager. Since this is an issue involving everyone, everyone should be involved. Choice A may be a good idea in all cases; however, it does not specifically address cultural issues. Therefore, the answer must be C.

Which of the following is NOT needed in order to come up with a project estimate? A. A WBS B. A network diagram C. Risks D. A change control system

Answer D Explanation A change control system is not required to obtain estimates, but without the other three choices, you cannot develop the estimates. You need the WBS to define the activities, the network diagram to see the dependencies, and the risks to determine contingencies. NOTE: These are high-level risks, not the detailed risks we identify later in the planning process group.

All of the following are parts of an effective change management plan EXCEPT: A. Procedures B. Standards for reports C. Meetings D. Lessons learned

Answer D Explanation A change management plan includes the processes and procedures that allow smooth evaluation and tracking of changes. Lessons learned (choice D) are reviews of the processes and procedures to improve them; they are not part of the system.

All of the following are common results of risk management EXCEPT: A. Contract terms and conditions are created. B. The project management plan is changed. C. The communications management plan is changed. D. The project charter is changed.

Answer D Explanation A change to the project charter is not always necessary. In fact, a change to the charter is a fundamental change to the project and may require a major adjustment to all aspects of the project management plan. There are many reasons the other choices could happen as a result of risk. Since a contract can only be created after risks are known (a contract is a tool to transfer risks), it is common sense that choice A cannot be the exception. The project management plan (choice B) could change to include a modified WBS and new work packages related to mitigating risk. The communications management plan (choice C) could change as a way to address a risk. Choice D is the best answer.

A heuristic is BEST described as a: A. Control tool. B. Scheduling method. C. Planning tool. D. Rule of thumb.

Answer D Explanation A heuristic is a rule of thumb. Examples are cost per line of code, cost per square foot of floor space, etc.

All of the following are parts of Direct and Manage Project Execution EXCEPT: A. Identifying changes. B. Using a work breakdown structure. C. Implementing corrective actions. D. Setting up a project control system.

Answer D Explanation A project control system (choice D) is set up during the planning process group, not during project executing. Did choice B confuse you? A WBS is created in project planning, but can be used to help manage the project during project executing. The wording here was not creating the WBS but using the WBS:'

A project manager is appointed to head a highly technical project in an area with which this person has limited familiarity. The project manager delegates the processes of Develop Schedule, Estimate Costs, Define Activities, and Estimate Activity Resources to various project team members, and basically serves as an occasional referee and coordinator of activities. The results of this approach are likely to be: A. A team functioning throughout the project at a very high level, demonstrating creativity and commitment. B. A team that initially experiences some amounts of confusion, but that after a period of time becomes a cohesive and effective unit. C. A team that is not highly productive, but that stays together because of the work environment created by the project manager. D. A team that is characterized by poor performance, low morale, high levels of conflict, and high turnover.

Answer D Explanation A project manager must manage a project. If all activities are delegated, chaos ensues and team members will spend more time jockeying for position than completing activities.

Workarounds are determined during which risk management process? A. Identify Risks B. Perform Quantitative Risk Analysis C. Plan Risk Responses D. Monitor and Control Risks

Answer D Explanation A workaround refers to determining how to handle a risk that occurs but is not included in the risk register. The project must be in the Monitor and Control Risks process if risks have occurred.

Control Schedule, Report Performance, and Administer Procurements are parts of which process group? A. Initiating B. Planning C. Executing D. Monitoring and controlling

Answer D Explanation All of these processes are part of monitoring and controlling.

A large, one-year telecommunications project is about halfway done when you take the place of the previous project manager. The project involves three different sellers and a project team of 30 people. You would like to see the project's communications requirements and what technology is being used to aid in project communications. Where will you find this information? A. The project management plan B. The information distribution plan C. The bar chart D. The communications management plan

Answer D Explanation Although the information is found as a sub-plan to the project management plan (choice A), the communications management plan (choice D) is the best answer because it directly answers the question.

When checking the calendar of a team member to schedule a meeting, you see she has scheduled a meeting with a key stakeholder that you were not informed of. The BEST approach would be to: A. Avoid mentioning it to the team member but continue to watch her activities. B. Notify your boss about the problem. C. Address the concern with the team member's boss. D. Address the concern with the team member.

Answer D Explanation Always look for the choice that deals with and solves the problem. Choice A is withdrawal. Choices Band C would not be appropriate until you learn the root cause of the problem.

A project manager is taking over a project from another project manager during the planning process group. If the new project manager wants to see what the previous project manager planned for managing changes to the schedule, it would be BEST to look at the: A. Communications management plan. B. Update management plan. C. Staffing management plan D. Schedule management plan.

Answer D Explanation Answer D is the most correct answer. The schedule management plan is the repository for plans for schedule changes. Note that choice B is a made-up term.

Your company just won a major new project. It will begin in three months and is valued at US $2,000,000. You are the project manager for an existing project. What is the FIRST thing you should do once you hear of the new project? A. Ask management how the new project will use resources. B. Resource level your project. C. Crash your project. D. Ask management how the new project will affect your project.

Answer D Explanation As you work on a project, you need to constantly reevaluate the project objectives and how the project relates to other concurrent projects. Is your project still in line with corporate objectives? If the other project will impact yours, you need to be proactive and work on options now.

All of the following would occur during the Close Project or Phase process EXCEPT: A. Creating lessons learned. B. Formal acceptance. C. Reducing resource spending. D. Performing benefit cost analysis.

Answer D Explanation Benefit cost analysis (choice D) is done earlier in the project to help select between alternatives. All the other choices are done during closing. Therefore choice D must be the best answer.

Your employee is three days late with a report. She walks into a meeting where the report is to be discussed and hands you a copy five minutes before the topic is to be discussed. You notice some serious errors in the report. How could this have been prevented? A. Require periodic updates from the employee. B. Coach and mentor the employee. C. Make sure the employee was competent to do the work. D. Cancel the meeting earlier because you did not have a chance to review the report.

Answer D Explanation Both choices A and D could have prevented the outcome, but D is the only one that would ensure you were not sitting in a meeting with a document that had not been reviewed.

If earned value (EV) = 350, actual cost (AC) = 400, planned value (PV) = 325, what is cost variance(CV)? A. 350 B. -75 C. 400 D. -50

Answer D Explanation CV = EV - AC

While testing the strength of concrete poured on your project, you discover that over 35 percent of the concrete does not meet your company's quality standards. You feel certain the concrete will function as it is, and you don't think the concrete needs to meet the quality level specified. What should you do? A. Change the quality standards to meet the level achieved. B. List in your reports that the concrete simply meets our quality needs:' C. Ensure the remaining concrete meets the standard. D. Report the lesser quality level and try to find a solution.

Answer D Explanation Can you explain why choices A and B are unethical? Choice C simply withdraws from the problem and is therefore not the best solution. The only possible choice is D. That choice would involve quality and other experts to find a resolution.

You are a project manager for the construction of a major new manufacturing plant that has never been done before. The project cost is estimated at US $30,000,000 and will make use of three sellers. Once begun, the project cannot be cancelled, as there will be a large expenditure on plant and equipment. As the project manager, it would be MOST important to carefully: A. Review all cost proposals from the sellers. B. Examine the budget reserves. C. Complete the project charter. D. Perform an identification of risks.

Answer D Explanation Choice A could be done, but it is not a pressing issue based on the situation provided. Choice B could also be done, but not until risk planning is completed. It is always important to carefully complete a project charter, choice C, but there are other issues needing detailed attention in this situation, so choice C cannot be best. Since this project has never been done before, and there will be a large cost outlay, it would be best for the project manager to spend more time on risk management. Risk identification is the most proactive response and would have the greatest positive impact on the project.

The cost contingency reserve should be: A. Hidden to prevent management from disallowing the reserve. B. Added to each activity to provide the customer with a shorter critical path. C. Maintained by management to cover cost overruns. D. Added to the base costs of the project to account for risks.

Answer D Explanation Choice A is an inappropriate action. Choice B is an incorrect statement. Choice C describes management reserves. During the risk management process, you determine appropriate cost contingency reserves for risk events. The sum of these reserves should be added to the total project estimate to cover the cost of risk events happening.

The performing organization is trying to decide whether to split the contracts department and assign procurement responsibilities to departments directly responsible for the projects. A procurement professional might not want this split to occur because they would lose __________ in a decentralized contracting environment. A. Standardized company project management practices B. Loyalty to the project C. Experience D. Access to others with similar expertise

Answer D Explanation Choice A is incorrect, as the change would not impact the entire project management process, only procurement. Loyalty to the project (choice B) would be gained, not lost, in a decentralized environment. In a decentralized procurement situation, there is less focus on maintaining the skill or expertise of the contracting function, making choice D the best answer.

The project status meeting is not going well. Everyone is talking at the same time, there are people who are not participating, and many topics are being discussed at random. Which of the following rules for effective meetings is NOT being adhered to? A. Demonstrate courtesy and consideration of each other, and control who is allowed to speak. B. Schedule meetings in advance. C. Have a purpose for the meeting with the right people in attendance. D. Create and publish an agenda and a set of rules for controlling the meeting.

Answer D Explanation Choice A is not a rule for effective meetings. Since there is no indication that the meeting was not scheduled in advance (choice B) or that there isn't a purpose (choice C), these cannot be the best answers. Discussed at random implies no agenda (choice D). If an agenda is issued beforehand, people will follow the outline and should not need random discussions.

All of the following are characteristics of a project EXCEPT: A. Temporary. B. Definite beginning and end. C. Interrelated activities. D. Repeats itself every month.

Answer D Explanation Choice D implies that the whole project repeats every month. Generally, the only things that might repeat in a project are some activities. The whole project does not repeat.

A project manager is trying to settle a dispute between two team members. One says the systems should be integrated before testing, and the other maintains each system should be tested before integration. The project involves over 30 people, and 12 systems need to be integrated. The sponsor is demanding that integration happens on time. What is the BEST statement the project manager can make to resolve the conflict? A. Do it my way. B. Let's calm down and get the job done. C. Let's deal with this again next week after we all calm down. D. Let's do limited testing before integration and finish testing after integration.

Answer D Explanation Choice D is an example of compromising.

A major negotiation with a potential subcontractor is scheduled for tomorrow when you discover there is a good chance the project will be cancelled. What should you do? A. Do not spend too much time preparing for the negotiations. B. Cut the negotiations short. C. Only negotiate major items. D. Postpone the negotiations.

Answer D Explanation Choice D is more ethical and demonstrates good faith. Why spend time in negotiations?

Two people are arguing about what needs to be done to complete a work package. If the project manager wants to know what is going on, she should pay MOST attention to: A. What is being said and when. B. What is being said, who is saying it, and the time of day. C. Physical mannerisms and what is being said. D. The pitch and tone of the voices, and physical mannerisms.

Answer D Explanation Choices C and D both include nonverbal communication, which represents 55 percent of communication. Choice D adds paralingual communication (pitch and tone) and is thus the best choice.

Senior management is complaining that they are not able to easily determine the status of ongoing projects in the organization. Which of the following types of reports would help provide summary information to senior management? A. Detailed cost estimates B. Project management plans C. Bar charts D. Milestone reports

Answer D Explanation Detailed estimates (choice A) have nothing to do with the situation described. Project management plans (choice B) will have more detail than is necessary for the situation described and may distract from the conversation if used in this situation. Bar charts (choice C) are usually only for the team. The best answer is choice D because milestone reports present the right level of detail for upper management.

A project manager has received activity duration estimates from his team. Which of the following does he need in order to complete the Develop Schedule process? A. Change requests B. Schedule change control system C. Recommended corrective actions D. Reserves

Answer D Explanation Develop Schedule includes all work and uses all inputs needed to come up with a finalized, realistic schedule. One would need time reserves (choice D) in order to complete a schedule. All of the other items are parts of Control Schedule and occur after Develop Schedule.

All technical work is completed on the project. Which of the following remains to be done? A. Verify Scope B. Plan Risk Responses C. Create a staffing management plan D. Complete lessons learned

Answer D Explanation Did you pick choice A? Then you may have forgotten that the Verify Scope process is done during the monitoring and controlling process group, not the closing process group. The other plans (choices Band C) are done earlier in the project. The lessons learned (choice D) can only be completed after the work is completed.

An experienced project manager has just begun working for a large information technology integrator. Her manager provides her with a draft project charter and immediately asks her to provide an analysis of the risks on the project. Which of the following would BEST help in this effort? A. An article from PM Network Magazine B. Her project scope statement from the project planning process C. Her resource plan from the project planning process D. A conversation with a team member from a similar project that failed in the past

Answer D Explanation Did you realize that this situation is taking place during the initiating process group? Choices Band C are created in the project planning process and so are not yet available. Therefore, we are left with deciding if choice A or choice D provides the greater value. Since the information gained in choice D is more specific to your company, it is the best choice.

Which project management process group normally takes the MOST project time and resources? A. Planning B. Design C. Integration D. Executing

Answer D Explanation Doing the actual work will normally take the MOST project time and resources.

Which of the following is the BEST thing for a project manager to do in the Conduct Procurements process of procurement management? A. Evaluate risks B. Select a contract type C. Update the project schedule D. Answer sellers' questions about bid documents

Answer D Explanation During the Conduct Procurements process, you normally answer questions submitted by the sellers. The risk analysis processes (choice A) are done before the procurement process begins, as procurement is a risk mitigation and transference tool. Selecting a contract type (choice B) is part of Plan Procurements. Changes to the project schedule (choice C) may be an output of the Administer Procurements process.

What theory proposes that employees' efforts will lead to effective performance and the employees will be rewarded for accomplishments? A. Conditional reinforcement B. Malsow's hierarchy C. McGregor's D. Expectancy

Answer D Explanation Employees who believe that their efforts will lead to effective performance and who expect to be rewarded for their accomplishments will stay productive as rewards meet their expectations. This is expectancy theory.

You are assigned as the project manager in the middle of the project. The project is within the baselines, but the customer is not happy with the performance of the project. What is the FIRST thing you should do? A. Discuss it with the project team. B. Recalculate baselines. C. Renegotiate the contract. D. Meet with the customer.

Answer D Explanation First, you need to find out why the customer is not happy. Then meet with the team and determine options.

During project executing, a team member identifies a risk that is not in the risk register. What should you do? A. Get further information on how the team member identified the risk, because you already performed a detailed analysis and did not identify this risk. B. Disregard the risk, because risks were identified during project planning. C. Inform the customer about the risk. D. Analyze the risk.

Answer D Explanation First, you want to determine what the risk entails and the impact to the project, then determine what actions you will take regarding the risk.

A project manager overhears a conversation between two stakeholders who are talking about how unhappy they are with the impacts of the project on their own departments. Stakeholder A asks if the project is on time, and stakeholder B replies that the SPI is 1.05. Stakeholder A asks if the project manager for the project knows of stakeholder B's concern. Stakeholder B responds that he is not sure. What is the BEST thing for the project manager to do? A. Make sure the stakeholders see that the project manager overheard and then ask them to direct any questions to the project manager in writing. B. Make a presentation to all the stakeholders regarding the status of the project. C. Send both stakeholders a copy of the issue log and ask for additional comments. D. Arrange a meeting with both stakeholders to allow them to voice any concerns they may have.

Answer D Explanation Here again is a question with more than one right answer. Would asking for something in writing be the best way to communicate? In this particular situation, asking for the concern to be in writing might alienate the stakeholders. Therefore, choice A cannot be best. The issue log (choice C) is where the issue should be listed, but the situation does not say if the project manager knows what the stakeholder's concern is. Therefore, C cannot be the best choice. Why not choice B? Notice the use of the words all stakeholders:' Why bother other stakeholders with this problem when the project manager already knows there may be some concern of stakeholders A and B to address, not all stakeholders. Choice B refers to making a presentation. Presentations are formal verbal. This problem would likely require informal verbal communication in order to discover the real problem. Choice D is therefore the best choice.

Which of the following describes the BEST use of historical records from previous projects: A. Estimating, life cycle costing, and project planning B. Risk management, estimating, and creating lessons learned C. Project planning, estimating, and creating a status report D. Estimating, risk management, and project planning

Answer D Explanation Historical records are not generally used for life cycle costing (choice A), lessons learned (choice B), or creating status reports (choice C).

You have just started administrating a contract when management decides to terminate the contract. What should you do FIRST? A. Go back to the Plan Procurements process. B. Go back to the Conduct Procurements process. C. Finish the Administer Procurements process. D. Go to the Close Procurements process.

Answer D Explanation If the contract is terminated, the project needs to enter closure. You need those results for historical purposes.

A project management plan should be realistic in order to be used to manage the project. Which of the following is the BEST method to achieve a realistic project management plan? A. Sponsor creates the project management plan based on input from the project manager. B. Functional manager creates the project management plan based on input from the project manager. C. Project manager creates the project management plan based on input from senior management. D. Project manager creates the project management plan based on input from the team.

Answer D Explanation If we were to rephrase the question, it is asking, Who creates the project management plan? The best answer is that project management plans are created by the project manager but require input from the team.

All of the following are factors in the assessment of project risk EXCEPT: A. Risk event. B. Risk probability. C. Amount at stake. D. Insurance premiums.

Answer D Explanation Insurance premiums come into play when you determine which risk response strategy you will use.

During the completion of project work, the sponsor asks the project manager to report on how the project is going. In order to prepare the report, the project manager asks all the team members what percent complete their work is. There is one team member who has been hard to manage from the beginning. In response to being asked what percent complete he is, the team member asks, Percent complete of what? Being tired of such comments, the project manager reports to the team member's boss that the team member is not cooperating. Which of the following is MOST likely the real problem? A. The project manager did not get buy-in from the manager for the resources on the project. B. The project manager did not create an adequate reward system for team members to improve their cooperation. C. The project manager should have had a meeting with the team member's boss the first time the team member caused trouble. D. The project manager does not have work packages.

Answer D Explanation Is this a hard question? The whole discussion of the team member and his actions is a distracter. The real problem is not that the team member is being uncooperative. He is asking a question that many team members want to ask in the real world. How can I tell you how things are going if I do not know what work I am being asked to do? The real problem is the lack of a WBS and work packages; otherwise the team member would not have to ask such a question. Choice A cannot be the answer because the project manager is not losing resources (what is implied by getting the manager's buy-in). Though a reward system (choice B) would help with cooperation, the real problem here is not cooperation. Choice C cannot be the answer because it does not solve the problem at hand (the team member not knowing what he is to do). It solves another problem. If you chose C, be very careful! You can get 10 to 20 questions wrong on the exam simply because you do not see the real problem!

The project has been going well, except for the number of changes being made. The project is being installed into seven different departments within the company and will greatly improve departmental performance when operational. There are 14 project management processes selected for use on this project. The project manager is a technical expert as well as having been trained in communications and managing people. Which of the following is the MOST likely cause of the project problems? A. The project manager was not trained in understanding the company environment. B. The project should have more management oversight since it will result in such great benefits to the company. C. The project should have used more of the project management processes. D. Some stakeholders were not identified.

Answer D Explanation It is important here to look for the choice that would solve the real problem. There is no reason to think that training (choice A), management oversight (choice B), or a need for more processes (choice C) are factors contributing to the number of changes. The root cause would be that stakeholders were missed and therefore their requirements were not found. Those stakeholders are now causing changes to accommodate their needs. The best choice is D.

A project is in the middle of the executing processes when a stakeholder suggests a major new change. This change will cause the third major overhaul of the project. At the same time, the project manager discovers that a major work package was not completed because a team member's boss moved him to another project that had a higher priority. Which of the following is the BEST person for the project manger to address these issues with? A. The team B. Senior management C. The customer D. The sponsor

Answer D Explanation It is the sponsor's role to prevent unnecessary changes and to set priorities between projects. The situation described in this question implies that such work is not being done, and the project manager must therefore go to the root of the problem: the sponsor.

The main focus of life cycle costing is to: A. Estimate installation costs. B. Estimate the cost of operations and maintenance. C. Consider installation costs when planning the project costs. D. Consider operations and maintenance costs in making project decisions.

Answer D Explanation Life cycle costing looks at operations and maintenance costs and balances them with the project costs to try to reduce the cost across the entire life of the project.

During what part of the procurement process does procurement negotiation occur? A. Plan Procurements B. Close Procurements C. Administer Procurements D. Conduct Procurements

Answer D Explanation Negotiation occurs during the Conduct Procurements process.

The program was planned years ago, before there was a massive introduction of new technology. While planning the next project in this program, the project manager has expanded the scope management plan because as a project becomes more complex, the level of uncertainty in the scope: A. Remains the same. B. Decreases. C. Decreases then increases. D. Increases.

Answer D Explanation Not all questions will be difficult. The level of uncertainty in scope increases based on the scale of effort required to identify all the scope. For larger projects it is more difficult to catch everything.

You are a project manager for a new product development project that has four levels in the work breakdown structure. A network diagram has been created, the duration estimates have been compressed, and a schedule has been developed. What time management activity should you do NEXT? A. Begin Control Schedule. B. Estimate Activity Resources. C. Analogously estimate the schedule. D. Gain approval.

Answer D Explanation Notice how this question and the previous one seem very similar. This is intended to prepare you for similar questions on the exam. Choices B and C should have already been completed. The situation described is within the Develop Schedule process of time management. Choice A is the next time management process after Develop Schedule, but the Develop Schedule process is not finished. Final approval (choice D) of the schedule by the stakeholders is needed before one has a project schedule.

The project was going well when all of a sudden there were changes to the project coming from multiple stakeholders. After all the changes were determined, the project manager spent time with all the stakeholders to find out why there were changes and to discover any more. The project work has quieted down when a team member casually mentions to the project manager that he added functionality to a product of the project. Do not worry he says, I did not impact time, cost, or quality! What should a project manager do FIRST? A. Ask the team member how the need for the functionality was determined. B. Hold a meeting to review the team member's completed work. C. Look for other added functionality. D. Ask the team member how he knows there is no time, cost, or quality impact.

Answer D Explanation Notice that the first paragraph is extraneous. Also notice that the question states that the change has already been made. Your actions will be different than if the change had not been made. It is the project manager's job to investigate impacts, as the project manager is the only one who can tell how a change impacts the project as a whole. Choices A, B, and C could all be done, but they do not address the immediate concern. Choice D is the best answer since it begins the project manager's analysis of the impacts to the project as a whole by finding out what analysis has already been done. He can then determine how he must finalize the analysis as it applies to the entire project. Can you see that?

A large project is underway when one of the team members reviews the project status report. He sees that the project is currently running late. As he looks at the report further, he notices that the delay will cause one of his activities to be scheduled during a time he will be out of the country and cannot work on the activity. This is of great concern because he is very committed to the project being successful and he does not want to be the cause of the project being further delayed. What is the BEST THING for him to do? A. Contact the project manager immediately to provide the project manager with his schedule. B. Include the information in his next report. C. Request that the issue be added to the project issue log. D. Recommend preventive action.

Answer D Explanation Notice that this question talks about what the team member should do? It is important for the project manager to understand the team member's role and possibly even instruct team members on how to work on projects and what is expected of them. Choices A, B, and C have one thing in common. They involve the team member asking the project manager to do something. In reality, it may very well be the team member who will come up with a solution (such as decreasing the scope of the activity, fast tracking, or specific suggestions about changes to predecessor activities). Therefore, choice D is the best choice. But ask yourself how you run your projects? Which is better, your way or this way? Lastly, please note that recommended corrective or preventive actions can come from the team or stakeholders in addition to the project manager.

Value analysis is performed to get: A. More value from the cost analysis. B. Management to buy into the project. C. The team to buy into the project. D. A less costly way of doing the same work.

Answer D Explanation Notice that you need to know the definition of value analysis to answer this question. Also notice that the other choices could be considered correct by someone who does not know the definition.

Which of the following is NOT an input to the initiating process group? A. Company processes B. Company culture C. Historical WBSs D. Project scope statement

Answer D Explanation Notice the question asks which is NOT an input to the initiating process group. Did you read it correctly? The project scope statement (choice D) is an output of the planning process group. Did you select choice A? Companies should have processes in place for hiring resources, reporting, and managing risks on projects (to name only a few). Does yours?

Your program manager has come to you, the project manager, for help with a bid for her newest project. You want to protect your company from financial risk. You have limited scope definition. What is the BEST type of contract to choose? A. Fixed price (FP) B. Cost plus percent of cost (CPPC) C. Time and material (T&M) D. Cost plus fixed fee (CPFF)

Answer D Explanation Of the options given, the only contract that limits fees for large projects with limited scope definition is cost plus fixed fee.

The customer responsible for overseeing your project asks you to provide a written cost estimate that is 30 percent higher than your estimate of the project's cost. He explains that the budgeting process requires managers to estimate pessimistically to ensure enough money is allocated for projects. What is the BEST way to handle this? A. Add the 30 percent as a lump sum contingency fund to handle project risks. B. Add the 30 percent to your cost estimate by spreading it evenly across all project activities. C. Create one cost baseline for budget allocation and a second one for the actual project management plan. D. Ask for information on risks that would cause your estimate to be too low.

Answer D Explanation Presenting anything besides your original estimate (allocating more to the budget) is inaccurate and calls into question your competence and integrity as a project manager. The customer should list potential changes and risks to your estimate. If the costs and risks are justified, you can increase the budget.

Which of the following conflict resolution techniques will generate the MOST lasting solution? A. Forcing B. Smoothing C. Compromise D. Problem solving

Answer D Explanation Problem solving normally takes more time, but it gets buy-in from everyone, generating a more lasting solution.

A new store development project requires the purchase of various equipment, machinery, and furniture. The department responsible for the development recently centralized its external purchasing process and standardized its new order system. In which document can these new procedures be found? A. Project scope statement B. WBS C. Staffing management plan D. Organizational policies

Answer D Explanation Procedures for the rental and purchase of supplies and equipment are found in the organizational policies, part of organizational process assets.

You are a project manager for one of many projects in a large and important program. At a high-level status meeting, you note that another project manager has reported her project on schedule. Looking back on your project over the last few weeks, you remember many deliverables from the other project that arrived late. What should you do? A. Meet with the program manager. B. Develop a risk control plan. C. Discuss the issue with your boss. D. Meet with the other project manager.

Answer D Explanation Professional and social responsibility dictates that you should confront the situation first with the other project manager (choice D) to find out if the other project is really on schedule and thereby confirm or deny your information. Choice A or C would be the second step if choice D validates your concern. Choice B would be a more likely choice if it referred to an earlier step in risk management. But choice D remains the best answer.

When it comes to changes, the project manager's attention is BEST given to: A. Making changes. B. Tracking and recording changes. C. Informing the sponsor of changes. D. Preventing unnecessary changes.

Answer D Explanation Project managers should be proactive. The only proactive answer here is preventing unnecessary changes.

All of the following are ALWAYS inputs to the risk management process EXCEPT: A. Historical information. B. Lessons learned. C. Work breakdown structure. D. Project status reports.

Answer D Explanation Project status reports (choice D) can be an input to risk management. However, when completing risk management for the first time, you would not have project status reports. Therefore, project status reports are not always an input to risk management.

Monitoring cost expended to date in order to detect variances from the plan occurs during: A. The creation of the cost change management plan. B. Recommending corrective actions . C. Updating the cost baseline. D. Product performance reviews.

Answer D Explanation Recommending corrective actions (choice B) and possible updates to the cost baseline (choice C) result from the activity described; they are not concurrent with it. Monitoring costs are part of change control, but not part of creating the change control system (choice A).

Your company can accept one of three possible projects. Project A has a net present value (NPV) of US $30,000 and will take six years to complete. Project B has an NPV of US $60,000 and will take three years to complete. Project C has an NPV of US $90,000 and will take four years to complete. Based on this information, which project would you pick? A. They all have the same value. B. Project A C. Project B D. Project C

Answer D Explanation Remember, project length is incorporated when computing NPV. You would choose the project that provides the most value, in this case the project with the highest NPV. Scope Management CHAPTER FIVE Answer

The project team is arguing about the prospective sellers who have submitted proposals. One team member argues for a certain seller while another team member wants the project awarded to a different seller. What part of the procurement process is the team in? A. Plan Procurements B. Administer Procurements C. Negotiate Contract D. Conduct Procurements

Answer D Explanation Selected sellers are an output of the Conduct Procurement process.

There have been many work packages completed successfully on the project and the sponsor has made some recommendations for improvements. The project is on schedule to meet an aggressive deadline when the successor activity to a critical path activity suffers a major setback. The activity has 14 days of float and is being completed by four people. There are two other team members with the skill set to assist the troubled activity, if needed. The project manager receives a call that three other team members are attempting to be removed from the project because they do not feel the project can be successful. When the project manager pursues this, she discovers that those team members have issues that have not been addressed. Which of the following is the BEST thing to do to improve the project? A. Have the team members immediately assist the troubled activity. B. Investigate why the project schedule is aggressive. C. See who can replace the three team members. D. Create an issue log.

Answer D Explanation Sometimes complex problems are caused by not doing simple things. The data in the first paragraph, once you read the choices, is completely extraneous. The troubled activity has float and so does not need immediate attention. Choice A may not be necessary if the amount of float will not be exceeded by the problem. None of the choices suggest investigating if the amount of float is enough to cover any delay caused by the trouble, whatever it is. Rather, the choices take you in different directions. Choice B should have already been done before the project began. Choice C cannot be best, as replacing team members does not solve the root cause of the problem. Could there be something that the project manager is doing wrong, or could be doing that she is not, that would solve the problem without losing resources? Wouldn't it be more effective to discover the root cause of those team members' concerns so that the problem does not surface again later? The creation of an issue log will let the troubled team members know that their concerns have been heard, are noted, and will be resolved. This might be enough to stop them from leaving and avoid project delays and confusion if new team members must be added. This makes choice D the best answer. Communications Management CHAPTER TEN

A cost performance index (CPI) of 0.89 means: A. At this time, we expect the total project to cost 89 percent more than planned. B. When the project is completed we will have spent 89 percent more than planned. C. The project is only progressing at 89 percent of the rate planned. D. The project is only getting 89 cents out of every dollar invested.

Answer D Explanation The CPI is less than one, so the situation is bad. Choice D is the best answer.

A project manager is quantifying risk for her project. Several of her experts are offsite, but wish to be included. How can this be done? A. Use Monte Carlo analysis using the Internet as a tool. B. Apply the critical path method. C. Determine options for recommended corrective action. D. Apply the Delphi technique.

Answer D Explanation The Delphi technique is most commonly used to obtain expert opinions on technical issues, the necessary project or product scope, or the risks.

An activity has an early start (ES) of day 3, a late start (LS) of day 13, an early finish (EF) of day 9, and a late finish (LF) of day 19. The activity: A. Is on the critical path. B. Has a lag. C. Is progressing well. D. Is not on the critical path.

Answer D Explanation The activity described has float because there is a difference between the early start and late start. An activity that has float is probably not on the critical path. There is no information presented about lag (choice B) or progress (choice C), so choice D is the best answer.

Which of the following are GENERALLY illustrated BETTER by bar charts than network diagrams? A. Logical relationships B. Critical paths C. Resource trade-offs D. Progress or status

Answer D Explanation The bar chart (or Gantt chart) is designed to show a relationship to time. This is best used when demonstrating progress or status as a factor of time.

Lessons learned are BEST completed by: A. The project manager. B. The team. C. The sponsor. D. The stakeholders.

Answer D Explanation The best answer is stakeholders, as their input is critical for collecting all the lessons learned on each project. The term stakeholders includes all the other groups.

A project manager has a problem with a team member's performance. What is BEST form of communication for addressing this problem? A. Formal written communication B. Formal verbal communication C. Informal written communication D. Informal verbal communication

Answer D Explanation The best choice is D. If informal verbal communication does not solve the problem, choice A is the next best choice. This does not mean that you do not keep records of the problem, but this question is asking about communication between two parties.

A cost management plan contains a description of: A. The project costs. B. How resources are allocated. C. The budgets and how they were calculated. D. The WBS level at which earned value will be calculated.

Answer D Explanation The exam will ask you what the tools of project management contain in order to test whether you really understand them. This question is almost impossible to guess correctly.

In a projectized organization, the project team: A. Reports to many bosses. B. Has no loyalty to the project. C. Reports to the functional manager. D. Will not always have a home

Answer D Explanation The main drawback of the projectized organization is that at the end of the project, the team is dispersed but they do not have a functional department (home) to which to return.

The project manager has just received a change from the customer that does not affect the project schedule and is easy to complete. What should the project manager do FIRST? A. Make the change happen as soon as possible. B. Contact the project sponsor for permission. C. Go to the change control board. D. Evaluate the impacts on other project constraints.

Answer D Explanation The other impacts to the project should be evaluated first. Such impacts include scope, cost, quality, risk, resources, and customer satisfaction. Once these are evaluated, the change control board, if one exists, can approve or deny the change.

The project manager is expecting a deliverable to be submitted by e-mail from a team member today. At the end of the day, the project manager contacts the team member to notify him that it has not been received. The team member apologizes and says that he was not able to e-mail the deliverable, and it was sent through the mail instead. The team member goes on to explain that he notified the project manager that this would occur during a phone conversation they had while the project manager was traveling. Wasn't that the conversation we had when I told you I could not hear you well due to poor cell phone coverage? asks the project manager. Yes, replies the team member. What could have avoided this problem? A. Paralingual communication B. Adding to the issue log after the phone call C. Better attention to determining communications requirements D. Feedback during the communication

Answer D Explanation The pitch and tone of voice (choice A) is not relevant here, as the project manager could not even hear what was being said. There were no issues recognized after the conversation, so none could be added to the issue log (choice B). This issue is not related to communications requirements, so choice C cannot be best. Saying, I am not sure I properly heard what you said during the conversation or asking for the message to be repeated back to the sender would have prevented this problem. This makes choice D the best option.

A project manager has assembled the project team, identified 56 risks on the project, determined what would trigger the risks, rated them on a risk rating matrix, tested their assumptions, and assessed the quality of the data used. The team is continuing to move through the risk management process. What has the project manager forgotten to do? A. Simulation B. Risk mitigation C. Overall risk ranking for the project D. Involvement of other stakeholders

Answer D Explanation The process they have used so far is fine, except the input of other stakeholders is needed in order to identify more risks.

The project sponsor has just signed the project charter. What is the NEXT thing to do? A. Begin to complete work packages. B. Verify Scope. C. Start integrated change control. D. Start to create management plans.

Answer D Explanation The project charter is created during the initiating process group. Therefore the question is asking what is done next in either the initiating process group or the planning process group. For this type of question, you should look for the choice that occurs closest to the process group you are in. Choice A is done during the executing process group. Choices Band C are done during the monitoring and controlling process group. Choice D is the best choice, as it is part of the planning process group.

The project charter is created in which project management process group? A. Executing B. Planning C. Closing D. Initiating

Answer D Explanation The project charter is needed before planning and execution of the work can begin.

You are finalizing the monthly project status report due now to your manager when you discover that several project team members are not reporting actual hours spent on project activities. This results in skewed project statistics. What is the MOST appropriate action to be taken? A. Discuss the impacts of these actions with team members. B. Report the team members' actions to their functional managers. C. Continue reporting information as presented to you. D. Provide accurate and truthful representations in all project reports.

Answer D Explanation The project manager's responsibility is to provide truthful project information. The project manager should thereafter discuss the impacts of his or her actions with the team members. If that does not work, the next step is to report it to the functional managers.

A new product development project has four levels in the work breakdown structure and has been sequenced using the precedence diagramming method. The activity duration estimates have been received. What should be done NEXT? A. Create an activity list. B. Begin the work breakdown structure. C. Finalize the schedule. D. Compress the schedule.

Answer D Explanation The question is really asking, What is done after Estimate Activity Durations? Choices A and B are done before Estimate Activity Durations. Duration compression (choice D) occurs before finalizing the schedule (choice C) and is, therefore, the best answer.

A seller is working on a cost reimbursable (CR) contract when the buyer decides he would like to expand the scope of services and change to a fixed price (FP) contract. All of the following are the seller's options EXCEPT: A. Completing the original work on a cost reimbursable basis and then negotiating a fixed price for the additional work. B. Completing the original work and rejecting the additional work. C. Negotiating a fixed price contract that includes all the work. D. Starting over with a new contract.

Answer D Explanation The seller does not have the choice to start over. The contract that exists is binding. Both parties could agree to start over, but this is a drastic step.

The work breakdown structure can BEST be thought of as an effective aid for communications. A. Team B. Project manager C. Customer D. Stakeholder

Answer D Explanation The term stakeholder encompasses all the other choices. In this case, it is the best answer since the WBS can be used (but does not need to be used) as a communications tool for all stakeholders to see what is included in the project.

The work breakdown structure can be an effective aid for communication in which situation(s)? A. Internal within the project team B. Internal within the organization C. External with the customer D. Internal and external to the project

Answer D Explanation The work breakdown structure allows communication vertically and horizontally within the organization as well as outside the project.

A rough order of magnitude estimate is made during which project management process group? A. Planning B. Closing C. Executing D. Initiating

Answer D Explanation This estimate has a wide range. It is done during project initiating, when very little is known about the project.

Based on the following, if you needed to shorten the duration of the project, what activity would you try to shorten? Activity / Preceding Activity / Duration In Weeks Start ....... None ........ 0 A ............. Start ........ 1 B ............. Start ......... 2 C ............. Start ......... 6 D ............. A ............. 10 E ............. B,C ........... 1 F ............. C .............. 2 G ............ D .............. 3 H ............ E .............. 9 I ............. F .............. 1 End ........ G,H,I ......... 0 A. Activity B B. Activity D C. Activity H D. Activity C

Answer D Explanation This is one of the two-stage questions you will find on the exam. First you need to draw the network diagram and find the critical path, and then make a decision. The network diagram would be: Paths Duration in Weeks Start, A, D, G, End 14 Start, B, E, H, End 12 Start, C, E, H, End 16 Start, C, F, I, End 9 Many people immediately look for the longest duration activity on the project to cut. Here activity D is the longest, at 10 weeks. However, that activity is not on the critical path, and cutting it would not shorten the project's duration. You must change the critical path. In this case, both activity C and activity H are on the critical path. If you have a choice, all things being equal, choose the earlier option. Therefore, activity C (choice D) is the best answer.

The float of an activity is determined by: A. Performing a Monte Carlo analysis. B. Determining the waiting time between activities. C. Determining lag. D. Determining the amount of time the activity can be delayed before it delays the critical path.

Answer D Explanation This question does not specify what type of float. Total float is the amount of time an activity can be delayed without impacting the end date of the project. Free float is the amount of time an activity can be delayed without impacting the early start of the next activity. The only choice matching either of these definitions is choice D.

One common way to compute estimate at completion (EAC) is to take the budget at completion (BAC) and: A. Divide by SPI. B. Multiply by SPI. C. Multiply by CPI. D. Divide by CPI.

Answer D Explanation This question is asking for the formula for EAC, which is BAC/CPI. Notice how you will have to remember the formula to get the answer correct.

The highest point of Maslow's hierarchy of needs is called: A. Physiological satisfaction. B. Attainment of survival C. Need for association. D. Esteem.

Answer D Explanation This question is asking which of the FOLLOWING is the highest. Self-actualization is not listed, so the next best choice is esteem.

Which of the following is included in a project charter? A. A risk management strategy B. Work package estimates C. Detailed resource estimates D. The business need for the project

Answer D Explanation This question may seem simple, but it is really testing if you know what is a correct project charter. Choices A and B do not come until project management planning, after the project charter. A project charter may include the names of some resources (the project manager, for example), but not detailed resources (choice C).

A project manager is in the middle of the executing process of a very large construction project when he discovers that the time needed to complete the project is longer than the time available. What is the BEST thing to do? A. Cut product scope. B. Meet with management and tell them that the required date cannot be met. C. Work overtime. D. Determine options for schedule compression and present management with his recommended option.

Answer D Explanation This question tests whether you know how to solve problems, especially if you are one of those project managers who has not realized that an unrealistic schedule is something you should deal with before beginning work. Since cutting product scope affects the customer, choice A has a great negative effect and is therefore not best. A project manager's job is to determine options for meeting any end date or time, therefore choice B cannot be correct. Working overtime (choice C) is expensive and unnecessary when there are so many other choices that could be selected first. Choice D could have the least negative effect on the project.

If a project manager wants to report on the actual project results vs. planned results, she should use a: A. Trend report. B. Forecasting report. C. Status report. D. Variance report.

Answer D Explanation This situation describes the need to "compare." A trend report (choice A) shows performance over time. A forecasting report (choice B) looks only to the future. A status report (choice C) is generally static (relating to a moment in time). The only choice that compares project results is a variance analysis (choice D).

A project has several teams. Team C has repeatedly missed deadlines in the past. This has caused team D to have to crash the critical path several times. As the team leader for team D, you should meet with the: A. Manager of team D. B. Project manager alone. C. Project manager and management. D. Project manager and the leader of team C.

Answer D Explanation Those having the problem should resolve the problem. Having had to crash the critical path several times implies that team D has already dealt with these problems. In this case, the two team leaders need to meet. The extent of this situation requires the project manager's involvement as well.

A manufacturing project has a schedule performance index (SPI) of 0.89 and a cost performance index (CPI) of 0.91. Generally, what is the BEST explanation for why this occurred? A. The scope was changed. B. A supplier went out of business and a new one needed to be found. C. Additional equipment needed to be purchased. D. A critical path activity took longer and needed more labor hours to complete.

Answer D Explanation To answer this question, you must look for a choice that would take longer and cost more. If you picked choice A, reread it. It says scope was changed, not necessarily added to. If the change was to reduce the scope, it might also have reduced cost. Though it would take time to handle the event described in choice B, the impacted activity might not be on the critical path and thus might not affect time. Choice C would definitely add cost, but not necessarily time. Only choice D would negatively affect both time and cost.

Communications are often enhanced when the sender the receiver. A. Speaks up to B. Uses more physical movements when talking to C. Talks slowly to D. Shows concern for the perspective of

Answer D Explanation Understanding the receiver's perspective allows you to direct the communication to meet his needs.

All of the following are forms of power derived from the project manager's position EXCEPT: A. Formal. B. Reward. C. Penalty. D. Expert.

Answer D Explanation When someone is given the job of project manager, they will have formal, reward, and penalty power. But just having the position does not make the project manager either a technical or project management expert.

A new project manager is about to begin creating the procurement statement of work. One stakeholder wants to add many items to the procurement statement of work. Another stakeholder only wants to describe the functional requirements. The project is important for the project manager's company, but a seller will do the work. How would you advise the project manager? A. The procurement statement of work should be general to allow the seller to make his own decisions. B. The procurement statement of work should be general to allow clarification later. C. The procurement statement of work should be detailed to allow clarification later. D. The procurement statement of work should be as detailed as necessary for the type of project.

Answer D Explanation When the seller has more expertise than the buyer, the procurement statement of work should describe performance or function rather than a complete list of work. In any case, the procurement statement of work should be as detailed as possible. Professional and Social Responsibility CHAPTER THIRTEEN

The requirements of many stakeholders were not approved for inclusion in your project. Therefore, you had a difficult time receiving formal approval of the project management plan for this project. The stakeholders argued and held up the project while they held meeting after meeting about their requirements. The project was finally approved and work began six months ago. All of the following would be good preventive actions to implement EXCEPT: A. Keep a file of what requirements were not included in the project. B. Make sure the change control process is not used as a vehicle to add back the requirements into the project. C. Maintain an issue log. D. Hold meetings with the stakeholders to go over the work that will not be added to the project.

Answer D Explanation Why would choice D be the action not to take? Isn't it similar to choice A? Yes and no. This issue should be over, but since there were so many meetings and arguments about the requirements being removed, it is unlikely that the issue will be dropped by the stakeholders. However, since it has not come up again, and the project was started six months ago, spending time in a meeting is excessive. The other choices are easier and have less impact on the project and are therefore things that could be done.

A project manager has just been assigned a team that comes from many countries, including Brazil, Japan, the US, and Britain. What is her BEST tool for success? A. The responsibility assignment matrix (RAM) B. The teleconference C. Team communication with the WBS D. Communication and well-developed people skills

Answer D Explanation Working with people from different cultures, with different cultural values and beliefs, necessitates an understanding of both basic definitions and the areas of cultural impact. As project managers, we need to have good communication skills and a willingness to adapt to other cultures.

You are taking over a project and determine the following: Activity B has an early finish (EF) of day 3, a late finish (LF) of day 6, and an early start (ES) of day 2. Activity L is being done by a hard-to-get resource. The cost performance index (CPI) is 1.1, and the schedule performance index (SPI) is 0.8. Based on this information, what would you be more concerned about? A. Float B. Resources C. Cost D. Schedule

Answer D Explanation You may not understand this question until you review the rest of the book. Come back to it. This question tries to integrate a lot of information and test your ability to discern what information is relevant to the question. Though some figures to calculate float are provided (choice A), there is no information to say that the float is a problem. Most projects have hard-to-get resources (choice B). The question does not give an indication that having hard-to-get resources is a problem. CPI (choice C) is greater than one, so cost is not something to worry about. SPI is less than one, so choice D is the best answer.

As part of the records management system, you are trying to make sure that all records from the procurement are documented and indexed. Which of the following do you NOT have to worry about? A. Proposal B. Procurement statement of work C. Terms and conditions D. Negotiation process

Answer D Explanation You will see long, wordy questions consisting of many paragraphs on the exam, but do not let them worry you. Sometimes the briefer questions are harder. To answer this question, you need to know what a records management system is and that it would not be used to keep track of negotiations. the negotiation process is not a document.

A project team is working on manufacturing a new product, but they are having difficulty creating a project charter. What is the BEST description of the real problem? A. They have not identified the project objectives. B. They are working on a process and not a project. C. The end date has not been set. D. They have not identified the product of the project.

Answer: B Explanation This work has entered the manufacturing stage. Manufacturing is generally considered a process, not a project, as it is not temporary. A project charter will not be appropriate here.

B. Direct and Manage Project Work

Approved corrective actions are an input to which of the following processes? A. Validate scope B. Direct and Manage Project Work C. Develop Project Charter D. Develop Schedule

What is a project management information system (PMIS)?

Archive all relevant project documents in the project management information system (PMIS) to be used as historical data

The aesthetic values of a culture are communicated through the culture's __________.

Art

Explain the conflict that often exists between the client and the parent organization.

As the project is executed, clients will often request that changes be made in the project's outputs. On the other hand, the parent organization is seeking to make a profit by performing the work required to produce those outputs. If the changes are made, the level of profitability may be reduced. This creates a natural antagonism between the client and the parent organization.

While planning the schedule for your project, you frequently refer to the project calendar. The project calendar is: A. A calendar containing the days on which various meetings are scheduled within the project team. B. A calendar of working days or shifts that establishes those dates on which schedule activities are worked. C. A calendar containing the list of days on which the project team members will be on leave or take an "off". D. A calendar that establishes the dates on which project deliverables are sent to the customer.

B - A project calendar is a calendar of working days or shifts that establishes those dates on which schedule activities are worked. It also establishes non-working days that determine dates on which schedule activities are idle, such as holidays, week-ends and non-shift hours. [PMBOK 5th edition, Page 184] [Project Time Management] The project calander is an output of the Develop Schedule process. The Develop Schedule process is the sixth process of the Time Management Knowledge area.

Mary is currently focusing on controlling the key stakeholder engagement on her project. The project management plan is an essential input to this process. Which of the following components of the project management plan is least likely to be utilized during this process? A. Stakeholder communication needs and expectations B. Project management processes selected for the project C. Change management process D. Human resource requirements

B - All of the given choices are the components of the project management plan that can be utilized during the Control Stakeholder Engagement process. However, the key project stakeholders are usually not interested in the minor details of the project; rather they are more interested in the project's objectives, the current progress, and the current risks and issues. From the given choices, 'the selected project management processes for the project' is the weakest choice. [PMBOK 5th edition, Page 411] [Project Stakeholder Management]

During a project update meeting for the key stakeholders, the schedule of some project activities was challenged. The VP Operations challenged that some of the critical path activities cannot be executed as scheduled as they will disturb critical operations. The VP has requested rescheduling of these tasks so that they are carried out during the non-working times of the business. What should the project manager do first? A. Analyze the impact of change B. Record the issue in the issue log C. Send the change request to the change control board for the approval D. Produce a change request

B - All of the tasks in the choices need to be carried out. However, the question is asking for the task to be carried out first. The identified issue must be documented in the project's issue log first. This should be captured and recorded during the meeting. Rest of the tasks can be performed after the meeting. [PMBOK 5th edition, Page 408] [Project Stakeholder Management]

A contract change control system should include: A. Vendor contact information, tracking systems, and approval levels necessary for authorizing changes B. Paperwork, tracking systems, dispute resolution procedures, and approval levels necessary for authorizing changes C. Information database, dispute resolution procedures, and approval levels necessary for authorizing changes D. Tracking systems, legal ramifications for certain actions, and approval levels necessary for authorizing changes

B - Having a contract change control system will allow you to establish the procedures and process should you need to modify a contract. It contains paperwork, tracking systems, dispute resolution procedures, and approval levels necessary for authorizing changes [PMBOK 5th edition, Page 383] [Project Procurement Management]

Which of these is not a tool or technique for the Control Procurements process? A. Contract change control system B. Recommended Corrective Action C. Claims administration D. Performance reporting

B - Recommended corrective action is not a tool or technique in the Control Procurements process. [PMBOK 5th edition, Page 379] [Project Procurement Management]

A project manager wants to use a group decision making technique to generate, classify and prioritize requirements. Which of these is not a valid group decision making technique? A. Dictatorship B. Singularity C. Majority D. Unanimity

B - Singularity is not a valid method to reach a group decision. The other choices are valid methods to reach a group decision. [PMBOK 5th edition, Page 115] [Project Scope Management] A group decision-making technique is an assessment process having multiple alternatives with an expected outcome in the form of future actions. These techniques can be used to generate, classify, and prioritize product requirements. There are various methods of reaching a group decision, such as: *Unanimity.* A decision that is reached whereby everyone agrees on a single course of action. One way to reach unanimity is the Delphi technique, in which a selected group of experts answers questionnaires and provides feedback regarding the responses from each round of requirements gathering. The responses are only available to the facilitator to maintain anonymity. *Majority.* A decision that is reached with support obtained from more than 50 % of the members of the group. Having a group size with an uneven number of participants can ensure that a decision will be reached, rather than resulting in a tie. *Plurality* A decision that is reached whereby the largest block in a group decides, even if a majority is not achieved. This method is generally used when the number of options nominated is more than two. *Dictatorship.* In this method, one individual makes the decision for the group.

A project's financial management reserve is identified in which process: A. Estimate Costs B. Determine Budget C. Control Costs D. Estimate Activity Resources

B - The Management Contingency Reserve is identified in the Determine Budget process. [PMBOK 5th edition, Page 213] [Project Cost Management]

Which document describes the project's deliverables and the work required to create those deliverables? A. Project authorization document B. Project scope statement C. Project scope management plan D. Project charter

B - The project scope statement is the correct response. This document describes the project's deliverables in detail and the work that is required to create those deliverables. It also forms the baseline for evaluating whether requests for changes are within or outside the project's boundaries. [PMBOK 5th edition, Page 123] [Project Scope Management]

Which of these tools is NOT a part of the Seven Basic Tools of Quality? A. Control Chart B. Statistical Sampling C. Flowcharting D. Scatter Diagram

B - The seven basic tools of quality are: cause and effect diagrams, control charts, flowcharting, histograms, Pareto charts, check sheets, and scatter diagrams. [PMBOK 5th edition, Page 239] [Project Quality Management] Statistical Sampling Statistical sampling involves choosing part of a population of interest for inspection (for example, selecting ten engineering drawings at random from a list of seventy-five). Sample frequency and sizes should be determined during the Plan Quality Management process so the cost of quality will include the number of tests, expected scrap, etc. There is a substantial body of knowledge on statistical sampling. In some application areas, it may be necessary for the project management team to be familiar with a variety of sampling techniques to assure the sample selected represents the population of interest.

While managing a project, you decide to contract to an external enterprise. You enter into a contract where you pay the external enterprise a set amount (as defined by the contract), irrespective of the seller's costs. What would best describe this type of contract? A. FP-EPA B. FFP C. FPIF D. CPFF

B - This is an example of a Firm-Fixed Price (FFP) contract. [PMBOK 5th edition, Page 363] [Project Procurement Management] Firm Fixed Price Contracts (FFP). The most commonly used contract type is the FFP. It is favored by most buying organizations because the price for goods is set at the outset and not subject to change unless the scope of work changes. Any cost increase due to adverse performance is the responsibility of the seller, who is obligated to complete the effort. Under the FFP contract, the buyer should precisely specify the product or services to be procured, and any changes to the procurement specification can increase the costs to the buyer.

There are two projects for the organization to choose between: Project A with an NPV of US $45,000 and Project B with and NPV of US $85,000. What is the opportunity cost of selecting project B? A. $85,000 B. $45,000 C. $130,000 D $40,000

B. $45,000 There are no calculations required. The opportunity cost is simply the value of the project(s) the organization did not select.

A definitive estimate is in a range from: A. -25 percent to +75 percent from actual. B. -10 percent to +10 percent from actual. C. -30 percent to +40 percent from actual. D. -10 percent to + 25 percent from actual.

B. -10 percent to +10 percent from actual. A rough order of magnitude estimate is usually made in initiating, and is a range from -25 percent to +75 percent from actual. A budget estimate is usually made in planning and is a range from -10 percent to +25 percent from actual. A definitive estimate is made as the project progresses and is in a rage from -10 percent to +10 percent from actual. Note that some project managers use a range for -5 percent +10 percent from actual for a definitive estimate.

What is a project management information system (PMIS)? A. a method to determine and archive how the project is doing B. A method to gather, integrate, and disseminate information about what and how the projec is doing C. A computerized status tracking system. D. A manual status tracking system

B. A method to gather, integrate, and disseminate information about what and how the projec is doing The system contains processes and tools to allow you, the project manager, to know the status of your project at all times.

You have been working on a nine-month project for six months. The project is ahead of schedule when one of the functional managers tells you the resources committed to the project are no longer available. After checking further, you discover the company has just started another project and is using the resources comited to your project. You believe the new project is not cirtical, but the project manager is the son of a board member. What is the BEST course of action in this situation? A. Use the reserve to hire contractors to complete the work. B. Ask the project management office to formally prioritize the projects. C. Determine when resources will become available. D. Negotiate a new schedule wiht the other project manager.

B. Ask the project management office to formally prioritize the projects. It is a responsibility of the project management office to prioritize the company's projects. When prioritization is clear, it is easier to allocate resources among projects.

As you walk into your office, you receive an e-mail from the sponsor notifying you that the auditing team will soon be in your office to start a risk audit of your project. The next e-mail your receive has been forwarded to you, and involves conflict between two members. You are immediately bombarded with phone calls from both parties to the e-mail complaining about the other. Which conflict resolution technique would you immediately use with the team members? A. Compromising B. Avoiding C. Forcing D. Collaborating

B. Avoiding Collaborating means problem solving and problem solving is the best way to resolve conflict? but not here. The question asks "what conflict resolution technique would you IMMEDIATELY use with the team members." Tempers are too hot and you have the sponsor to deal with. The best immediate choice here is avoiding (also referred to as withdrawal).

You are considering creating a project management office (PMO) in your organization and have solicited the opinions of some of the senior managers. The first representative recommends the PMO should manage all project in the organization. The second believes the PMO should handle large projects budgeted over a defined dollar amount. The third thinks a PMO should simply provide support to the department project managers. What should you do? A. Get other opinions from the representatives' employees. B. Begin the process of gaining authority and formal approval for implementing all three choices. C. Go with the second representative's opinion because it is not practical for the project management office to manag all projects. The most important projects should be managed by a focused group of trained project professionals. D. Go with the first representative's opinion becaus a project management office is intended to be certral repository for all project information and management of all projects.

B. Begin the process of gaining authority and formal approval for implementing all three choices. The role of the project management office can range from supportive (with a low level of control over projects) to controlling or directive, with increasingly greater influence on projects. Gaining approval for implementing all of these options covers the divers opinions of management, and will meet all their needs.

Inputs to the Manage Communication process include all of the following EXCEPT: A. Deliverables status. B. Change requests. C. Details of work performance. D. Completion forecasts.

B. Change requests. Completion forecast, details of work performance, and deliverables status are all inputs to the Manage Communications process. (p.297)

You are working on a project that requires the use of a stakeholders engagement assessment matrix. This tool can be used to identify: A. Additional stakeholders. B. Communications gaps. C. Skill level of stakeholders. D. Key relationships between stakeholders.

B. Communications gaps. The stakeholders engagement assessment matrix can be used to compare the actual engagement levels of individual stakeholders versus the levels of engagement planned. Any discrepancies can be analyzed, and communications to adjust the engagement levels can be implemented (p.538).

Inputs to Direct and Manage Project Work process include all the following EXCEPT: A. Risk tolerances, the project management plan, and the project management information system. B. Communications requirements, validated changes, and actions items. C. Historical information, defect repair orders, and the scope management plan. D. The project management plan, approved corrective actions, and work instructions.

B. Communications requirements, validated changes, and actions items. Here is another question that requires you to think about each part of each choice to determine the correct answer. Validated changes are outputs of Control Quality Management and inputs to Monitor and Control Project Work, making that the exception. All of the other items listed in the choices are inputs to Direct and Manage Project Work. Direct and Mange Project Work (Project Integration Management, Executing Process Group) Direct and Manage Project Work is the process of leading and performing the work defined in the project management plan and implementing approved changes to achieve the project's objectives. The key benefit of this process is that it provides overall management of the project work.

The sponsor and the project manager are discussing what type of contract the project manager plans to use on the project. The sponsor points out that the performing organization spent a lot of money hiring a design team to come up with the design. The project manager is concerned that the risk for the buyer be as small as possible. And advantage of a fixed-price contract for the buyer is: A. There is little risk. B. Cost risk is lower. C. Risk is shared by all parties. D. Cost risk is higher.

B. Cost risk is lower. If you had trouble with this one, you need to remember that the questions are asked from the buyer's perspective unless otherwise noted. The seller has the most cost risk in a fixed-price contract, and the buyer's risk is lower.

The project charter for a project was approved, and you have just been assigned as project manager. Realizing that project planning is an ongoing effort throughout the project, which process are you MOST likely to combine? A Estimate Activity Durations and Develop Schedule. B. Create WBS and Define Activities. C. Estimate Cost and Determine Budget. D. Plan Human Resources and Estimate Costs.

B. Create WBS and Define Activities. The Create WBS process consists of subdividing major project deliverables (scope) into smaller, more manageable work packages. The Define Activities process defines the activities that must take place to produce those deliverables. Therefore, it would be the most practical choice to combine those processes (p.200).

During project executing, a major problem occures that was not included in the risk register. What should you do FIRST? A. Look for any unexpected effects of the problem. B. Create a workaround. C. Tell management. D. Teevaluate the Identify Risk process.

B. Create a workaround. Following the right process is part of professional and social responsibility. Because an unidentified problem or risk occurred, it is important to reevaluate the Identify Risks process as well as to look for unexpected effects to the problem. However thay are not your fist choices. You might need to inform management, but this is reactive, not proactive, and not the first thing you should do. Since this is a problem that has occured, rather than a problem that has just been identified, the first thing you must do is address the risk by creating a workaround.

In which parts of the cost management process is earned value (EV) used? A. Performance measurement and variance management planning. B. Forecasting and project performance reviews. C. Creating the cost baseline and the cost control system. D. Reserve analysis and cost aggregation.

B. Forecasting and project performance reviews. Creating the cost baseline and the cost control system, reserve analysis, and cost aggregation. It is used on forecasting and project performance reviews (p.266).

Which of the following can create the MOST misinterpretation of the project scope statement: A. Poor pattern, structure, and chronological order. B. Imprecise language C. Small variations in size of work packages or detail of work D. Too much detail

B. Imprecise language Much of the work on the project is dictated by the project scope statement. Any imprecision in such a key document will lead to differing interpretations (p.172).

While preparing your risk responses, your realize you need to make adjustments to the project to compensate for unknown risk events. These adjustments are based on your past project experience when unknown risk events occurred and knocked the project off track. What should you do? A. Document the unknown risk items and calculate the expected monetary value based on probability and impact that may result from the occurrences. B. Include a management reserve in the budget to compensate for the unknown risks, and notify management to expect unknown risk to occur. C. With the stakeholders, determine a percentage of the known risk budget to allocate to a management reserve budget. D. Determine the unknown risk events and the associated costs, then add the costs to the project budget as reserves.

B. Include a management reserve in the budget to compensate for the unknown risks, and notify management to expect unknown risk to occur. This question is asking how unknown risks are handled. It should be a reminder that, although the risk management process is designed to identify risks, not all risks can be identified. Some will inevitably remain unknown, and thus, they cannot be identified or assessed. A management reserve is not calculated based on a percentage of known risks. The amount of known risk reserves will have no impact on the number of unknown risks. Past history of what projects have needed is a better indicator. A management reserve is used for unknown risks, and it is wise to inform management that unknown risks can occur (p.432).

A project manager is working on her first project that uses people from outside her country. Which of the following would be the MOST important thing to expect to occur? A. Language or cultural differences that preclude (ausschließen) effective team work B. Increased human resource planning and coordination activities. C. Team-building activities become impractical, and the cost is prohibitive D. Added costs due to shoddy or incomplete work

B. Increased human resource planning and coordination activities. Diversity can enhance a project if planned and coordinated throughout the project (p.353).

The customer wants to expand the project scope after the performance measurement baseline has been established. Which procedures must be followed? A. Integrated management B. Integrated change control C. Document control D. Scope control

B. Integrated change control Although the issue relates to scope, integrated change control procedures should be followed. The scope change may impact any of the other project constraints (time, cost, risk, quality, etc.) (p.137).

All of the following are parts of an effective change management plan EXCEPT: A. Procedures. B. Lessons learned. C. Meetings. D. Standards of reports.

B. Lessons learned. A change management plan includes the processes and procedures that allow smooth evaluation and tracking of changes. Lessons learned are reviews of the processes and procedures after the fact, to improve them on future projects (p.128).

You need to make a major change to the equipment used on your project. Your brother owns a company that produces a product that would meet the new needs of the project. What should you do? A. Elimintate your brother from bidding. B. Let the customer know of the family relationship. C. Negotiate a good deal on the product with your brother. D. Submit the bid and allow your brother to negotiate wiht the procurement office.

B. Let the customer know of the family relationship. Project managers have a professional and social responsibility to ensure that any conflicts of interest do not compromise the legitimate interest of the customer. The project manager must inform the customer of the family relationship with a potential supplier (p.559).

A project manager is planning a project when he discovers the project has many different deliverables which must be completed in a sequence, with each deliverable dependent on starting after the previous one is completed. What is the BEST thing a project manager can do? A. Make sure the WBS has work packages that include extra team meetings. B. Obtain a project charter for each work product. C. Make sure the communications management plan addresses interdependencies. D. Make sure each team member know how his or her activities interact wiht other activities.

B. Obtain a project charter for each work product. This question test your understanding of the definition of a project. A project has a beginning and an end, and has a unique product, service, or result. According to this question, the deliverables described must be done in sequence, indicating that each deliverable is dependent on the previous one for the work to continue. Each of these deliverables is, in reality, a separate project, and should be managed accordingly. Thus, a project charter for each deliverable is required.

A project manager is managing his second project. It started one month after the first and both are in process. Though his first project is small, this one seems to be growing in size every day. As each day passes, the project manager is beginning to feel more and more in need of help. The project manager has recently heard that there was another project in the company last year that is similar to his second project. What should he do? A. Contact the other project manager and ask for assistance. B. Obtain historical records and guidance from the project management office (PMO). C. Make sure the sope of the project is agreed to bay all the stakeholders. D. Wait to see if the project is impacted by the growth in scope.

B. Obtain historical records and guidance from the project management office (PMO). The correct answer is B. There are many things the project manager could do. Asking the other project manager for assistance is not the best choice, as the other project manager might not be an experienced mentor. His advice might not be adequate to help this project manager. Waiting to assess the impact on the project is reactive; a project manager should be proactive. Gaining agreement of all the stakeholders on the project scope is also not the best choice. It would be helpful, but does not specifically address the issue in this situation. By contacting the PMO, the project manager can access the knowledge of many project managers, historical information from many projects, and the assistance of someone whose job it is to help (p.26).

Which of the following statements about operational work is INCORRECT? A. Operational work may be the result of a project. B. Operational work may be done only in the context of a project. C. Operational work may be unrealted to any project within the organization. D. Operational work may be the reason a project is begun.

B. Operational work may be done only in the context of a project. Operational work is work that sustains the business. In may or may not be done in the context of a project.

All of the following are examples of the cost of nonconformance EXCEPT: A. Warranty costs. B. Quality training. C. Scrap. D. Rework.

B. Quality training. Quality trainig is a cost of conformance to quality. All the other choices are costs of nonconformance to quality. Cost of Quality. A method of determining the costs incurred to ensure quality. Prevention and appraisal costs (cost of conformance) include costs for quality planning, quality control (QC), and quality assurance to ensure compliance to requirements (i.e., training, QC systems, etc.). Failure costs (cost of onconformance) include costs to rework products, components, or processes that are non-compliant, costs of warranty work and waste, and loss of reputation.

On one of your company's medical research projects, you object to how the research is being handled. However, you signed a confidentiality agreement with the company that prohibits you from talking about the research. It would be BEST to: A. Quit and do not talk about what you know. B. Quit and begin talking to the community. C. Continue working and begin to talk about your objections to the research to newspapers in other cities. D. Destroy the research.

B. Quit and begin talking to the community. Since you have signed a confidentiality agreement, the only allowable choice is to quit the company, and not discuss the research (p.555).

You are the CEO of a large publishing house and desire to improve project management practices in your company. What is the BEST thing to do in order to manage the publication of each issue? A. Identify all stakeholders for this project. B. Retain the functional organizational structure. C. Clearly define the work to be supplied by other companies. D. Set up a project office.

B. Retain the functional organizational structure. A project is temporary and unique. This is an example of a business process that is ongoing and repeatable. Such processes are best managed in a functional organization.

In planning a project, you notice of the materials required on the project are only available from a seller who owns a patent. What should be one of your MAIN concerns? A. Applicable laws B. Seller bankruptcy C. Seller competion D. Type of contract to use

B. Seller bankruptcy If the seller goes bankrupt, you will no longer have a source for the material. you must deal with this risk.

Inspections are a tool of the Validate Scope process. All of the following are examples of inspection EXCEPT: A. Walkthroughs. B. Sensitivity analysis. C. Audits. D. Product reviews.

B. Sensitivity analysis. Product reviews, audits, and walkthroughs are all forms of inspections, which may be used in the Validate Scope process. Sensitivity analysis has nothing to do with validating scope, and is not a from of inspection. Validate Scope process is located in the Monitoring and Controlling process group and is part of the knowledge area Project Scope Management. *Sensitivity Analysis.* A quantitative risk analysis and modeling technique used to help determine which risks have the most potential impact on the project. It examines the extent to which the uncertainty of each project element affects the objective being examined when all other uncertain elements are held at their baseline values. The typical display of results is in the form of a tornado diagram.

The customer's expectations for quality are shown on a control chart as the: A. Upper and lower control limits. B. Specification limits. C. Mean. D. Rule of seven.

B. Specification limits. *Rule of Seven:* The rule of seven is a general rule, or heuristic. It refers to a group or series of nonrandom data points that total seven on one side of the mean. The rule of seven tells you that, although none of these points are outside of the control limits, they are not random and the process is out of control. The project manager should investigate this type of situation and find a cause. While control limits represents the performing organization's standards for quality, specification limits represent the customer's expectations or contractual requirements for performance and quality on the project. Specification limits are characteristics of the measured process and are not inherent. In other words, specification limits are not calculated based on the control chart; instead, they are inputs from the customer. Therefore, they can appear either inside or outside of the control limits. To meet the customer's specification limits, the performing organizations's standards for quality (control limits) must be strickter than those of the customer. Agreeing to do a project when your work does not meet the customer's quality standards adds waste and extra management to the project to sort out acceptable items. Therefore, on the exam, assume that specification limits are outside the upper and lower control limits.

A project team member has been having a big disagreement with another team member for over two months when other team members become involved. The issues are complex, but you have specific experience in the area and know what needs to be done. The BEST choice would be to: A. Ask the other team members to stay out of the issue. B. Strive for fair resolution of the issue. C. Bring the team together and work out the issue to a win-win solution. D. Make the decision yourself.

B. Strive for fair resolution of the issue. Conflicts need to be resolved by those experiencing the problem, not the whole team. Asking the other team members to stay out of the issue should be unnecessary, and does not solve the root cause. The question seems to lead one to thing the project manager should solve it, but there is an even better answer. Without knowing the details of the problem, striving for fair resolution is a better choice than simply making the decision yourself (p.362).

Your project is managed in a projectized organization. It has just entered the Close Project or Phase process. Under the circumstances, which of the following should be your GREATEST concern? A. You will have extra pressure from the customer. B. The team is not focused on completing the project. C. Making sure your manager knows the project is almost completed. D. Setting yourself up to take over a large multi-year project.

B. The team is not focused on completing the project. Because you are in a projectized organization, the team members may either be looking for new jobs or trying to extend the length of the project so they have work for a longer period of time (p. 32).

Your company is expanding and needs to move its call center to a different facility on the other side of town. This move is a potential risk because not all call center operators will want to make the commute. Your company has assigned you to manage the move when you are called to an executive meeting in the CEO's office. They ask your opinion on upgrading the call center's computer hardware and software along with the moving project. You know that success in this project could significantly enhance your career. You tell them: A. You can do these three projects if given sufficient initiating and planning time. B. These are three separate projects. Combining projects with unrelated objectives could bring unnecessary risk. C. You'll do the move first then upgrade the hardware and software as one project. D. You want to understand how these projects map to corporate strategic objectives.

B. These are three separate projects. Combining projects with unrelated objectives could bring unnecessary risk. This situation describes three different projects. Trying to do them simultaneously shows lack of prioritization and lack of attention to risk when resources are pulled in different directions. Even doing the move first, and then upgrading the hardware and software together is a venture full of risks. Gaining an understanding of how the projects map to corporate objectives will not solve the issue of wheter or not to do them simultaneously.

Which statement about project deliverables is CORRECT? A. They are described in project planning and improved over time. B. They are defined at project onset with the input of project stakeholders. C. They are determined by the project sponsor. D. They are determined after the work is completely defined.

B. They are defined at project onset with the input of project stakeholders. Deliverables are the product scope. High-level deliverables are identified in the project charter (in initiating). In planning, the deliverables, including required features and functions, are further defined.

Project Boulder has a payback period of 2.4 years, an NPV of $10,000, and a profitability index of 1.10. Project Flintstone has a payback period of 3.0 years, an NPV of $10,000 and a profitability index of 1.05. If only one project can be executed, which project should be selected? Explain your reasoning.

Based on the available data, Project Boulder appears to be more favorable. In addition to recovering the initial investment more quickly, the same net present value is generated using fewer resources.

What should a PM do to ensure adequate resources are available for project success?

Be ready to negotiate resource tradeoffs, such as subcontracting, if necessary

When asked, "How do you motivate astronauts?" a representative of NASA responded, "We don't motivate them, but, boy, are we careful about whom we select." Discuss the implications of this statement for project managers seeking to motivate project team members.

Because of the potential for conflicting priorities between the function and the project, team members should have the political skills to balance such competing demands, especially when the project team is not assigned full-time to work on a project. If each team member has a problem solving orientation, the team member will seek interdisciplinary collaboration instead of narrowly viewing the problem within a specific discipline. And finally, team members should have the moral courage necessary to work in an open environment where problems are identified and resolved.

There are several words that are synonyms for negotiate. Which of the following is NOT quoted by the authors?

Bicker

Discuss the advantages of empowering the project team.

By empowering a project team, team members are enabled to manipulate tasks so that project objectives are met. Team members are encouraged to find better ways to do things. A participative style of management avoids micromanaging professionals and enables them to achieve goals using appropriate methods of their choosing. Team members begin to understand that they are responsible and accountable for achieving the project's deliverables. There is a good chance that synergistic solutions will result from team collaboration. The project manager will serve as a tool for evaluating a team's performance and will be positioned to provide timely feedback to keep the team on track.

What is the traditional way to display a reporting structure among project team members? A. Text-oriented role description B. Flowchart C. Hierarchical-type charts D. Matrix based responsibility chart

C - A hierarchical-type organization chart can clearly show roles and reporting relationships within a team. [PMBOK 5th edition, Page 165] [Project Human Resource Management] *Resource Breakdown Structure* The resource breakdown structure is a hierarchical representation of resources by category and type. Examples of resource categories include labor, material, equipment, and supplies. Resource types may include the skill level, grade level, or other information as appropriate to the project. The resource breakdown structure is useful for organizing and reporting project schedule data with resource utilization information.

As an external vendor, you are managing a complex software project that has been contracted on Time & Material (T&M). One of your team-members reports a break-through in automating some of the testing activities. This will potentially result in cost savings to the project as well as the project getting completed ahead of schedule by a month. Which of the following actions would you take? A. This is confidential information within your project team and need not be shared with the customer. The savings will be additional profits on the project. B. Communicate the current status and inform the customer that you will be incorporating some additional features to use up the savings in cost and time since it has been budgeted for. C. Communicate the current status to the customer and indicate the potential changes to cost and schedule. D. Communicate the savings in cost and time to the customer. At the end of the project, notify your billing department that they need to prepare an invoice for 50% of the cost being saved.

C - A project manager should always communicate an accurate statement of the project status. There could be subsequent actions to discuss how the savings could be best utilized, whether there can be any cost sharing etc. - but they would need to done following the appropriate procedure. [PMI Code of Ethics and Professional Responsibility, Page 2, 3] [Project Framework]

Project Manager's primary professional responsibility is towards: A. The performing organization B. The project sponsor C. All stakeholders D. Customers

C - A project manager's professional responsibilities are not limited to any one of the stakeholders. The other choices are correct but not complete by themselves. Expectations of every project stakeholder need to be managed. [PMBOK 5th edition, Page 391] [Prof. Responsibility]

Which of the following is not a general management technique used to generate different approaches to execute and perform the project work? A. Lateral thinking B. Analysis of alternatives C. Map Out D. Brainstorming

C - Alternatives Identification concerns itself with identifying techniques to generate different approaches to execute and perform the work of the project. Map-Out is not a valid technique - the other three namely brainstorming, lateral thinking and analysis of alternatives are techniques used to generate ideas for different approaches. [PMBOK 5th edition, Page 123] [Project Scope Management]

What is the BEST way to make an accurate forecasting of ETC? A. EAC - AC B. BAC - EV C. Manual forecasting of cost of the remaining work. D. (BAC - EV)/CPI

C - Manual forecasting of costs for remaining work is generally the best means of generating an accurate forecast. [PMBOK 5th edition, Page 220] [Project Cost Management]

A company you worked for several years ago is bidding on a project your new company will be starting in approximately 6 months. You have been selected to manage the project, and will be participating in the vendor selection processes. What should you do? A. Notify the stakeholders of your status and excuse yourself from the vendor selection process. B. Provide the vendor selection committee with as much detail as you can remember about your former company so that the best decision can be reached. C. Notify the project stakeholders of your status as a former employee of the bidding company, and comply with their preferences for how you participate in the vendor selection process. D. Do nothing.

C - Notify the project stakeholders of your potential conflict of interest and follow their directives as to how to proceed, whether it is to excuse yourself or to fully participate. The code of ethics requires project managers to fully disclose to all project stakeholders any conflicts of interest or situations where you may unfairly influence a decision. Regardless of the project stakeholders' decision, you are still bound to respect the intellectual property of your former employer. [Reference: PMI Code of Ethics and Professional Conduct, Page 4] [Prof. Responsibility]

Which of the following is accurate regarding Project Integration Management? A. Project deliverables are not part of Integration Management B. It involves the integration of process groups and not individual processes C. The need for it becomes evident in situations where individual processes interact D. It involves disregarding trade-offs and focuses on clearly articulating how accomplish all requirements by the deadline

C - Project Integration Management is needed more where individual processes interact. [PMBOK 5th edition, Page 63, 64] [Project Integration Management]

Which of the following is an input to the Develop Project Team process? A. Resource Requirements B. Resource Conflicts C. Resource Calendars D. Resource Breakdown Structure

C - Resource calendars are input of the Develop Project Team process. [PMBOK 5th edition, Page 273] [Project Human Resource Management]

Susan is about to review her project stakeholder management plan to make some necessary adjustments. She has got her project management plan, the recent issue log and the work performance data. Which of the following inputs is still missing for this process? A. Project charter B. Stakeholder management plan C. Project documents D. Communication management plan

C - Since Susan is planning to adjust her project stakeholder management plan, this implies that she is about to start the Control Stakeholder Engagement process. The stakeholder management plan and the communication management plan are the components of the project management plan, hence these are already included. The project charter is not an input of the Control Stakeholder Engagement process. The missing input to the process is the project documents. [PMBOK 5th edition, Page 410] [Project Stakeholder Management]

If you want to reduce the number of quality inspections and thus reduce the cost of quality control for your project, which technique should be used? A. Run Chart B. Defect Repair Review C. Statistical Sampling D. Pareto Chart

C - Statistical sampling will provide sufficient inspection to ensure a high likelihood of a quality product, while saving money for the project. [PMBOK 5th edition, Page 240] [Project Quality Management]

You are a consulting project manager with over 15 years experience running software development projects. You have been engaged to manage a finance application project for a new customer. However on the first day onsite at the customer's headquarters you are told the project has been cancelled, but there is a need for a project manager to manage a major infrastructure project to deploy a large number of servers and storage devices. The customer asks if you would be interested in leading this project. You have never managed this type of project before but would be interested in the challenge. Which of the follow is the best response? A. Do not mention your lack of experience, but ask for more information about the project. After reviewing the information and see that you could probably wing the project, accept the project. B. Accept the job with the caveat you can bring in any needed resources to work on the project, then hire a project manager you know that works in this area to handle the implementation details. C. Decline the opportunity, citing your lack of experience and knowledge in this area. D. Do not mention your lack of experience and accept the job.

C - The best response is to decline the project due to lack of experience or expertise in this area. The PMI code of ethics mandates that project managers only accept assignments that are consistent with their background, experience, skills, and qualifications. Failing to disclose lack of experience and knowingly accepting a job for which you are not qualified is a violation of the code. While not presented as an option in this question, it would be acceptable to indicate your interest in the project following a full disclosure to the customer that you lack experience in this area. [Reference: PMI Code of Ethics and Professional Conduct, Page 2] [Prof. Responsibility]

While managing a project, you decide to prepare an email for the project stakeholders describing the current project status. This is best described as an example of: A. Vertical communication B. Nonverbal communication C. Informal communication D. Formal communication

C - The correct response is that an email is an example of an informal communication. Another example is an ad-hoc conversation. Reports, briefings are considered as formal communication. [PMBOK 5th edition, Page 287] [Project Communications Management]

Bar charts, with bars representing activities, show activity start dates as well as end dates and expected activity durations. For control and management communication, the broader, more comprehensive summary activity that is used between milestones is referred to as: A. Activity bridge B. Milestone chart C. Hammock activity D. Gantt chart

C - The correct response is the Hammock activity. The comprehensive summary activity that is displayed in bar chart reports for control and management communication is called Hammock activity. [PMBOK 5th edition, Page 182] [Project Time Management]

While managing a project, you have included the product acceptance criteria in the Quality Management Plan. When reviewing your plan, a senior manager asks you look at this closely. You then realize that what you have done is incorrect. Where should you actually place the product acceptance criteria? A. Project Charter B. Change control process C. Project Scope Statement D. Scope Verification Plan

C - The project scope statement documents and addresses the characteristics and boundaries of the project and its associated products and services, as well as product acceptance criteria and scope control. [PMBOK 5th edition, Page 123] [Project Scope Management]

A management control point where scope, budget, actual cost and schedule are integrated and compared to earned value for performance measurement is called a: A. Code of accounts B. Control packages C. Control account D. Account Plan

C - This is a Control Account. Control Accounts are placed at selected management points of the Work Breakdown Structure WBS. Each control account may include one or more work packages, but each of the work packages must be associated with only one control account. [PMBOK 5th edition, Page 132] [Project Scope Management]

Under which of the following scenarios would you not use a Decision tree? A. When some future scenarios are unknown. B. When you need to look at the implications of not choosing certain alternatives. C. When the future scenarios are known. D. When the outcomes of some of the actions are uncertain.

C - You would use a Decision Tree when uncertainty and unknowns exist regarding future scenarios and their outcomes; not when future scenarios are known. [PMBOK 5th edition, Page 339] [Project Risk Management]

A definitive estimate is in a range from: A. -25 percent to +75 percent from actual. B. -10 percent to +25 percent from actual. C. -10 percent to +10 percent from actual. D. -30 percent to +40 percent from actual

C. -10 percent to +10 percent from actual. A rough order of magnitude estimate is usually made in initiating, and is in range from -25 percent to +75 percent from actual. A budget estimate is usually made in planning and is in a range from -10 percent to +25 from actual. A definitive estimate is made as the project progress and is in a range from -10 percent to +10 percent from actual. Note that some project managers use a range of -5 percent to +10 percent from actual for a definitive estimate.

You are working for an international construction company. Your project involves pulling together over 13 different subprojects. You are having difficulty in ensuring three subcontractors are doing their work correctly. As you review the project results, you notice you have spent US $1,200,000 at the last reporting point. You know the schedule is not too bad, since your schedule performance index (SPI) is 1.1 Considering you feel you should have spent US $1,300,000 to this point, what are the cost performance index (CPI), and the schedule and cost variances? A. 1.43, $130,000, and ($130,000) B. 1.19, $230,000, and ($230,000) C. 1.19, $130,000, and $230,000 D. 1.1, ($230,000), and $130,000

C. 1.19, $130,000, and $230,000 PV is $1,300,000, EV = SPI x PV or 1.1 x US$1,300,000 or US$1,430,000. Since you have EV, PV, and AC, US $1,200,000, now you can compute the CPI and variances. CPI = EV/AC = $1,430,000/$1,200,000 or 1.19; SV = EV - PV = $1,430,000 - $1,300,000 or $130,000; and CV = EV - AC = $1,430,000 - $1,200,000 or $230,000.

Your team has com up with 434 risk and 16 major causes of those risks. The project is the last in a series of projects that the team has worked on together. The sponsor is very supportive and a lot of time was invested in making sure the project work was complete and signed off all key stakeholders. During project planning, the team cannot come up with an effective way to mitigate or insure against a risk. It is not work that can be outsourced, nor can it be deleted. What would be the BEST solution? A. Look for ways to transfer the risk. B. Continue to investigate ways to mitigate the risk. C. Accept the risk. D. Look for ways to avoid the risk.

C. Accept the risk. This question relates real-world situations to risk types. Did you realize the entire first paragraph is extraneous? Based on the question, you cannot remove the work to avoid it, nor can you insure or outsource it to transfer the risk. This leaves acceptance as the only correct choice (p.429).

All of the following are outputs of the Monitor and Control Project Work process EXCEPT: A. Issue log updates and recommended defect repair. B. Work performance reports and change requests. C. Approved change requests and project documents updates. D. Recommended corrective actions and work performance reports.

C. Approved change requests and project documents updates. Approved change requests are an output of Perform Integrated Change Control. The remaining items in each choice are outputs of the Monitor and Control Project Work process (p.86). Both *Integrated Change Control* process and *Monitor and Control Project Work* process are processes which are part of the process group *Monitoring and Controlling* and located in the knowledge area * Integration Management*

Which of the following is NOT needed in order to come up with a project estimate? A. A WBS B. Risks C. Change requests D. A network diagram

C. Change requests You need the WBS to define the activities, the network diagram to see the dependencies, and the risks to determine contingencies. NOTE: These are high-level risks, not the detailed risks we identify later in project planning. Change requests are not required to obtain estimates, although they could cause existing estimates to be adjusted. Without the other three choices, you cannot develop the estimates (p.258).

All technical work is completed on the project. Which of the following remains to be done? A. Create a staffing management B. Plan Risk Responses C. Complete lessons learned D. Validate Scope

C. Complete lessons learned Did you pick Validate Scope? Than you have forgotten that Validate Scope is done during project monitoring and controlling, not project closing. Planning risk responses and creating the stamming management plan are done earlier in the project. The lessons learned can only be completed after the work is completed. PMI: Validate Scope. The process of formalizing acceptance of the completed project deliverables (Process Group M&C, Knowledge area Project Scope Management)

What are some of the benefits of using project management

Better control, better customer relations, shorter development times, lower costs, higher quality and reliability, higher profit margins, etc. are the benefits of using project management.

In a project portfolio, a project that involves a new technology or even a disruptive technology that is known to the industry would serve as an example of a __________ project.

Breakthrough

During the __________ stage of the project lifecycle, there is no significant difference in the importance that project managers place on the three goals of cost, time, and performance.

Design

The __________ is the interest rate set by an organization as the minimum acceptable rate of return for a project.

Hurdle Rate

Which of the following demonstrates the quality of realism required of a project selection model?

It reflects the multiple objectives of both the firm and its managers.

The Astebro study (2004) of R&D projects found that all the characteristics below were excellent predictors of project commercial success, EXCEPT __________.

Managerial Support

The __________ project is generally credited with beginning the era of modern project management.

Manhattan

Project Typhoon has a net present value of $10,000 and a profitability index of 1.01. Project Cyclone has a net present value of $10,000 and a profitability index of 1.10. If only one project could be undertaken, the organization should select __________.

Project Cyclone

This organization has the responsibility for maintaining and publishing The PMBOK Guidelines.

Project Management Institute (PMI)

The chance that project processes or outcomes will not turn out as planned is called __________.

Risk

__________ is a subset of a project, consisting of work packages.

Task

Identify the attribute that is NOT normally associated with the job of functional manager.

The functional manager is usually a generalist in the area being managed.

Scoring models are most often used to overcome this disadvantage of profitability models.

The inability to account for multiple decision criteria.

Which of the following is not a likely attribute of quasi-projects?

limited scope and budget

The process of "carving away the unwanted reality from the bones of a problem" is called __________.

modeling the problem

Which of the following is not one of the four dimensions of project success?

number of people working on the project

The two basic types of project selection models identified in the text are ________.

numeric, and non-nomeric

The __________is the value of an opportunity foregone.

opportunity cost

Which of the following is NOT a type of nonnumeric model?

payback period

The largest amount of effort applied to a project is during the __________ phase.

planning, scheduling, monitoring, and control

Financial forecasts are reported as __________ financial statements.

pro forma

The military uses the term __________ to refer to an exceptionally large, long-range objective that is broken down into a set of projects.

program

21. The mastery of the skills required to manage projects competently is referred to in the literature as __________.

project management maturity

The set of documents submitted when evaluating a project is referred to as the __________.

project proposal

The process of creating artificial deadlines and budgets to accomplish specific, though routine, tasks within a functional department is called ______.

projectizing

The project manager's responsibilities are broad and fall primarily into three separate areas. Identify the item that is NOT one of these.

responsibilities to the special-interest group

__________ occurs when the expectations of the client increase as the project progresses.

scope creep

According to the authors, the prime objectives of project management are

scope, cost, & time

The seven attributes that characterize a project are __________.

scope, resources, uniqueness, conflict, interdependencies, importance, and lifecycle

The most crucial attribute of a project is that it must be important in the eyes of the ________

senior management

The conventional project lifecycle can be described as a pattern characterized by ____________.

slow-rapid-slow progress

According to the authors the project manager should be more skilled at __________.

synthesis

The project manager needs __________ credibility.

technical and administrative

The project manager must make trade-offs between project progress and process. Conceptually, this involves trade-offs between the __________ functions.

technical and managerial

Project managers must have __________, which refers to possessing enough technical abilities to direct the project.

technical credibility

Real options seek to reduce which of the following risks in projects?

technological

A project selected using the sacred cow model will be maintained until successfully completed or until __________.

the boss recognizes the project as a failure and terminates it

The project to construct a highway is unique because __________.

the characteristics of terrain will be different for different segments.

When done properly, project management begins with __________.

the initial concept for the project

Having only partial or no information about the situation or outcomes is called __________.

uncertainty

If the NPV for a project is < 0, it indicates that the project will __________.

fail to cover its required rate of return

The __________ is also called the benefit-cost ratio.

Profitability index

Project proposals should include all of the following, EXCEPT __________.

a list of the top executives in the proposing firm

Identify the example that would not usually be considered a project.

assembly line manufacturing of automobiles

The ideal project manager should be __________.

both generalist/facilitator and have a high level of technical competence in the science of the project

When managing a project, the project manager is responsible for __________.

budgeting the project

This "stretched-S" pattern observed during the project lifecycle, for the most part, is a result of the _________.

changing levels of resources used during successive stages of the project lifecycle

The authors identify four parties-at-interest or stakeholders in any project. These stakeholders are

client, parent organization, project team, and the public

Earned value is based on the concept that the percentage of project completion is closely correlated with __________.

cost or the use of resources

In a conventional project lifecycle, as work progresses, uncertainty about the expected outcome should __________.

decrease

Which of the following is not a trend that we see in project management?

decreasing importance of project managers

The underlying premise of the real options approach is that __________.

delaying an investment may lead to greater returns or may lead to elimination of marginal projects

In a project portfolio, __________ projects have objectives or deliverables that are only incrementally different in both product and process from existing offerings.

derivative

According to the authors, the analytic method, when applied to systems, focuses on __________.

dividing the components of a system into smaller and smaller elements

According to the authors, of all the characteristics desirable in a project manager, __________ is the most important

drive to complete the task

Projects are conducted in four important environments. They are __________.

economic, political, legal, and sociotechnical

The authors identify three forces that combine to mandate the use of teams to solve problems. Identify the force that the authors named.

evolution of worldwide competitive markets for the production and consumption of goods and services

As sub-elements of a task, these __________ need to be accomplished to achieve the objectives of the task.

work packages

A conventional project life cycle is a(n) __________ curve.

S Curve

Which of the following is NOT an advantage that favors the use of weighted scoring models?

Decision makers are compelled to stick with the decision once it has been made.

The desired outcomes or results of a project are called ____________.

Deliverables

Name four benefits of project management.

The project form of organization allows the project manager to be responsive to (1) the client and the environment, (2) identify and correct problems at an early date (3) make timely decisions about trade-offs between conflicting project goals, and (4) ensure that managers of the separate tasks that comprise the project do not optimize the performance of their individual tasks at the expense of the total project.

Describe the project life cycle.

The project life cycle describes the set of tasks that must be completed in order to produce a product or service. There are many different project life cycles that exist, but a typical set includes: conception, selection, planning, scheduling, monitoring and controlling, and evaluation and termination.

Conflicting expectations among stakeholders related to performance, cost, and time will require the project manager to make appropriate ____________ in order to balance competing demands related to these objectives.

Trade-offs

Explain the difference between risk and uncertainty.

Uncertainty means that it is possible to have alternate outcomes. Risk is uncertainty that affects the project for better or for worse. If the risk is favorable, it presents the project team with an opportunity to capture. If the risk is unfavorable, it represents a threat that may require a response from the project team. Uncertainty will not always affect the project. If the project is unaffected by the uncertain scenario, the uncertain scenario is not a risk to the project.

According to the authors, three major questions face the project manager with respect to synthesizing the requirements of a project. Identify the item that is NOT listed as one of the three major questions.

Who will actually do the work of the project?

When the decision maker's information is not complete, he/she will have to make a decision under conditions of __________.

uncertainty

Ancillary goals include

improving the organization's project management competency and methods, developing individuals' managerial experience through project management, gaining a foothold in a new market, and similar goals

Projects often interact with other projects being carried out simultaneously within the organization and these interactions take the form of competition for scarce resources between project. This is an example of project __________.

interdependencies

Relations between organizational functions, where one function or task is dependent on others, are known as __________.

interdependencies

Who, according to the authors, has played a significant role in the development of techniques for project management?

the military

If a system is being updated due to operating necessity, the project was selected because__________.

the system is worth saving at the estimated cost of the project