PMP Exam Chapter 4 Integration Management

What is Present Value (PV)?

The present value, or discounting, refers to a future value that has been discounted to express it in today's currency.

What is Working Capital?

Working Capital is an accounting term defined as the current assets minus the current liabilities. It shows how much money the organization has available to invest on projects.

What is the Payback Period?

The amount of time before the money invested to complete the project is returned in profit. That point is referred to as the break even point.

What are the 4 tools and techniques used to develop the Project Charter?

1. Expert judgment — Expert judgment is simply relying on your subject matter experts (SMEs) 2. Data gathering — These include a diverse set of tools such as brainstorming, focus groups and interviews. 3. Interpersonal and team skills - Techniques such as conflict management, facilitation, and basic meeting management are commonly cited here 4 Meetings —Meetings are perhaps the easiest tool or technique used. The important thing to remember about them for the purposes of the test is that they are held with key stakeholders to define the key project drivers such as success criteria, requirements, milestones, etc.

What are the 5 objectives of the Project Charter?

1. Names the project manager and project sponsor 2. Explains how the project supports the organizational strategy 3. Explains the business need and why the need exists 4. Defines any constraints and assumptions that exist (this includes any deadlines, budget limitations, resource limitations, any known risks, and scope musthaves) 5. Defines the project success criteria (it is always recommended that success criteria be quantitative in nature as subjective success criteria usually leads to project failure)

What are the 2 ways to determine Business Value?

1. Benefit measurement methods — These are comparative tools that are used to look at one potential project versus another. They include peer reviews and scoring models as well as the kind of economic models that will be described in detail in just a few moments. 2. Constrained optimization methods — These are advanced mathematical models that are used to calculate project value. The methods that are included in this class are linear, integer, dynamic and multi-objective programming.

What are the 4 inputs to develop the Project Charter?

1. Business documents 2. Agreements 3. Enterprise environmental factors 4. Organizational process assets

What are the 7 processes involved with integration?

4.1 — Develop project charter 4.2 — Develop project management plan 4.3 — Direct and manage project work 4.4 — Manage project knowledge 4.5 — Monitor and control project work 4.6 — Perform integrated change control 4.7 — Close project or phase

24. Which of the following statements about the project charter is true? A. Chartering a project links the project to the ongoing work of the organization B. The project charter helps define the organizational strategy C. A project is not informally recognized until it is chartered D. All of the above

A. Chartering a project links the project to the ongoing work of the organization p. 75-77 - According to the PMBOK Guide, chartering a project links the project to the ongoing work of the organization. The charter does not define the organizational strategy. Additionally, the charter formally recognizes the project.

22. Which of the following is not a process from the integration management knowledge area? A. Create WBS B. Develop project charter C. Close project or phase D. Develop project management plan

A. Create WBS Guide p. 25 - Creating the WBS is part of Scope Management. All others are part of Integration Management.

47. You are a project manager and get asked to take over for a retiring coworker. You meet with the current project manager as part of your transition and discover that the project is currently on schedule. The current project manager tells you that the project is only on schedule because he has constantly pushed the project team to perform. What is the first thing you should do? A. Determine your management strategy B. Determine the exact SPI C. Determine the current cost performance D. Meet with your new team to outline your objectives

A. Determine your management strategy Successful project management has a lot to do with aligning strategy with project management. This is just such a case. The first thing you should do is determine your own management strategy and then move forward

23. In which of the following processes would you develop a high-level narrative of the project? A. Develop project charter B. Develop preliminary project scope statement C. Develop project management plan D. All of the above

A. Develop project charter Guide p. 75-77 - The high level narrative is part of the project charter.

Which of the following is the first process in the integration management knowledge area? A. Develop project charter B. Develop project scope statement C. Develop project management plan D. Distribute Information

A. Develop project charter p. 71 - Before anything else can be done on a project the charter must be developed.

45. You are six months into an 18-month project when you receive a change request from the customer that will not affect the project schedule and is easy to complete. What should you do first? A. Evaluate the change's impacts on the other constraints B. Get the sponsor's approval before making the change C. Get the change completed as soon as possible D. Go to the CRB

A. Evaluate the change's impacts on the other constraints The first thing the project manager should do is evaluate the change for impacts against the major constraints.

10. Which of the following project management processes is part of the Initiating Process Group? A. Identify stakeholders B. Define scope C. Collect requirements D. Develop project management plan

A. Identify stakeholders Guide p. 25 - The only two processes within the Initiating Process Group are the Develop Project Charter Process and the Identify Stakeholders Process. All other choices are part of the Planning Process Group.

35. When designing an effective change management plan it should include all of the following except: A. Lessons learned B. Policies C. Procedures D. Meetings

A. Lessons learned p. 104 - Lessons learned are reviews of the policies and procedures and are not part of the process itself

36. You have just been hired by a company and are a new project manager. You receive your first project and are preparing to begin your role. To improve your chances of success, it would be best in this situation to rely on what during the planning stage? A. Lessons learned repository B. Stakeholder input C. Certification training D. Scope verification

A. Lessons learned repository p. 104 - In this case, it would be best to rely on historical information about the results from past projects within the organization. Although stakeholder input might help it also might not be trusted. The only other possible answer is certification training, which taught that these things are situational.

19. Which of the following statements is true about processes? A. Not all of the project management processes are needed on every project B. All of the processes are required on every project C. All of the process interactions are required D. None of the above

A. Not all of the project management processes are needed on every project Guide p. 22 - Not all of the processes are needed in all projects. This is because flexibility is a key concept for project management.

56. In what kind of life cycle is the project scope, time and cost determined in the early phases and then any changes are carefully managed? A. Predictive B. Iterative C. Incremental D. Adaptive

A. Predictive p. 19 - In a predictive life cycle, the project scope, time, and cost are determined in the early phases of the life cycle. Any changes to the scope are carefully managed. Predictive life cycles may also be referred to as waterfall life cycles.

50. Your company is evaluating three different projects, but can do only one. Project A has an NPV of $120,000 and will take 6 years to complete. Project B will take 3 years and has an NPV of $91,500 and Project C has an NPV of $83,000. Based on this information, which project would you pick? A. Project A B. Project B C. Project C D. Not enough information to determine

A. Project A The years are irrelevant to this question as the whole point of NPV is to convert the project value into today's dollars. In this case, project A is the correct choice with an NPV of $120,000 because it has the highest value.

8. The initiating process group does all of the following except: A. Provides for the project management plan B. Defines the project's purpose C. Identifies project objectives D. Authorizes the project manager to begin work

A. Provides for the project management plan The primary output of the Initiating Process Group is the Project Charter. This document provides information on the project's purpose, identifies the project objectives and, most importantly, authorizes the project manager to begin work. However, it does not provide the for the project management plan. That is an output of the Planning Process Groups

29. What kind of project estimate is typically included in the preliminary project charter? A. Rough order of magnitude estimate B. Detailed budget estimate C. Budget estimate D. None of the above

A. Rough order of magnitude estimate p. 706 - The Rough Order of Magnitude Estimate has a variance of -50% to +50% and is the first estimate completed in the project process.

40. As a new project manager, you discover that you will be required to have 11 stakeholders sign off on your charter. Which of the following is your greatest concern? A. The amount of time spent on configuration management B. Defining your change management process C. Managing the sponsors D. Defining your reporting structure

A. The amount of time spent on configuration management Two key issues are likely to impact this project. This first is communication. This is the same on every project, but here the number of signoffs will make communication even more important. The second is configuration management. Since communication is not one of the choices, configuration management is the best choice.

53. Which of the following best describes the project manager's role as an integrator? A. The project manager puts all the pieces of a project into a cohesive whole B. The project manager puts all the pieces of the project into program C. The project manager helps the team become familiar with the pieces of the project D. The project manager gets the project team together into a cohesive unit

A. The project manager puts all the pieces of a project into a cohesive whole p. 52-59 - Although the project manager does have the responsibility to get the team to function as a cohesive unit, that is not their role as an integrator. The role of integrator requires the project manager to put all of the pieces of the project into a cohesive whole.

14. Which of the following statements is not true about stakeholder involvement in the planning process group? A. The project team should involve only the senior stakeholders and sponsors in the initial scoping of the project. B. The project team should use stakeholders in project planning since the stakeholders have skills and knowledge that can be leveraged. C. The project team is responsible for creating an environment in which stakeholders can contribute. D. All of the above are true.

A. The project team should involve only the senior stakeholders and sponsors in the initial scoping of the project. p. 34-35 - It is critical that the project team gets as many of the stakeholders involved in the project as early as possible and keeps them involved throughout the project. To do this, the project manager and team must create an environment that is conducive to stakeholder participation. A wide range of stakeholders can have information that can help the project succeed.

16. According to the PMBOK® Guide, how stringently must a project manager ensure that all the defined process interactions occur? A. There is a great deal of flexibility because interactions within the planning process are dependent on the nature of the project B. There is not significant flexibility because interactions within the planning process are not dependent on the nature of the project and only depend on the PMBOK Guide. C. Interactions within the planning process group are not dependent on the nature of the project, but there is significant flexibility based on the definitions in the PMBOK® Guide. D. None of the above is true.

A. There is a great deal of flexibility because interactions within the planning process are dependent on the nature of the project 19-23 - Interactions among the processes within the planning process group are dependent on the nature of the project. This makes significant refinement and iterations possible—as well as reordering of some of the relationships due to the fact that in many projects information is simply not available until later in the process.

49. Linear programming is an example of what type of project selection criteria? A. Regression analysis B. Benefit cost measurement C. Quantitative scoring D. Constrained optimization

D. Constrained optimization Linear programming is a form of constrained optimization that uses advanced mathematics to evaluate choices.

26. What kind of project justification would it be if a chemical manufacturer authorized a project as a result of new national guidelines for handling of toxic materials? A. A business need B. A legal requirement C. A market demand D. A social need

B. A legal requirement Guide p. 7 - Projects can be justified for a number of reasons that include: A market demand A business need A customer request A technology advance A legal requirement A social need

60. Which of the following often precedes the business case? A. A benefits case B. A needs assessment C. A project charter D. An alternatives analysis

B. A needs assessment p. 30 - A needs assessment often precedes the business case

12. The development of the project charter is primarily concerned with which of the following? A. Assigning the project team B. Authorizing the project C. Providing constraints and assumptions D. Providing the limits of the project manager's authority

B. Authorizing the project p. 75-77 - The development of the Project Charter (4.1) is primarily concerned with authorizing the project. It also names the project manager and will often include any constraints or assumptions. However, its core function is project authorization.

28. Which of the following describes whether the expected outcomes of the project justify the investment? A. Contract B. Business case C. Business needs analysis D. Project justification

B. Business case p. 77 - The project statement of work (SOW) is a narrative description of products or services to be supplied by the project.

41. As a professional project manager you know that many of the processes are ongoing efforts that potentially overlap. In the real world, which of these processes are you most likely to combine? A. Collect requirements and create WBS B. Create WBS and define activities C. Plan communications and develop human resources plan D. None of the above—you should not combine these processes in the real world

B. Create WBS and define activities p. 156-161 - In the real world, many of these processes are ongoing and overlap. Additionally, not every process is required on every project. It is up to the project manager to decide when these processes are appropriate. In this case, the most commonly combined processes (yes, it is allowed) are to create the WBS and to define the activities—because the activities are often simply extensions of the work packages.

9. Which of the following project management processes is part of the initiating process? A. Develop project management plan B. Develop project charter C. Define scope D. Collect requirements

B. Develop project charter Guide p. 71 - This is NOT simply a duplicate question to #8. It is supposed to be here. The only two processes within the Initiating Process Group are the Develop Project Charter Process and the Identify Stakeholders Process. All other choices are part of the Planning Process Group.

48. During the project you determine that additional material needs to be purchased. You call your team together to plan exactly how to make the required change. This is an example of what? A. Management by consensus B. Lack of a change management plan C. Good team relations D. Management by objectives

B. Lack of a change management plan This is a clear example of the absence of a change management plan—or at the very least a failure to follow the plan. It should be unnecessary to bring the team together in this case.

55. Which of the following is NOT one of the four fundamental categories acting upon organizations illustrating the context of a project? A. Meet regulatory, legal or social requirements. B. Satisfy senior leadership's vision of the future. C. Implement or change business or technological strategies. D. Create, improve, or fix products, processes, or services

B. Satisfy senior leadership's vision of the future. p. 7 - Organizational leaders initiate projects in response to factors acting upon their organizations. There are four fundamental categories for these factors: Meet regulatory, legal, or social requirements; Satisfy stakeholder requests or needs; Implement or change business or technological strategies and Create, improve, or fix products, processes, or services.

44. As a project manager you build your project plan and schedule based upon a commitment from the senior management that you will have several senior level resources completely dedicated to your project. When it actually comes time to do the work you are provided with much less skilled resources. The best thing to do is which of the following: A. Remind management that you were promised senior level resources B. Show management the impact of having the less experienced resources assigned to your project C. Rework the project schedule with the new, less experienced resources D. Crash the project

B. Show management the impact of having the less experienced resources assigned to your project Remember that a project manager must always be proactive. This means the PM must get in front of the situation. In this case, the project manager needs to bring alternatives and recommendations to management. The answer that most reflects this concept is showing management the impact of having the less experienced resources assigned to the team.

18. What typically happens to the project management processes when the project is divided into phases? A. Nothing. The project management processes are designed to work with many methodologies. B. The process groups are normally repeated within each phase. C. The process groups must be altered because they are not designed for a phased-based methodology. D. None of the above

B. The process groups are normally repeated within each phase. Guide p.19-21 - When a project is broken into phases the project management process groups usually repeats it an iterative manner because they are designed to work in either an iterative or linear manner.

51. A project manager is interested in obtaining a position within his organization's project management office. As part of the hiring process the PMO reviews the project manager's past performance on projects within the organization. The project manager has four projects that are reviewed. One project finished ahead of schedule and had a CPI of 1.04. That project sponsor provided a recommendation for the project manager. The second project had an SPI of 0.92 and a less than 10% cost variance. In discussions with the sponsor the PMO team discovers that these results were achieved due to fast tracking the schedule, that some rework was required after project completion, and that the product of the project has never been used. The third project was a large project for the organization with significant visibility throughout the firm. This project experienced three restarts due to changes that were 30% greater than other projects within the organization and was completed with 17 items remaining on the issue log. The final project was relatively low in the organizational priority system and had an SPI of 0.76, had struggled with several unexpected items on the risk register, and had to rework their project charter twice. The PMO decides not to hire this project manager based on the past performance. Which of the following statements best justifies this decision? A. The project manager had consistently missed schedule and cost targets showing he does not have the skill to work in the PMO. B. The project manager consistently failed to involve stakeholders showing he does not have they skills to work in the PMO. C. The project manager failed to properly use a risk register showing he does not have the skills to work in the PMO D. The project manager consistently showed problems managing change showing he does not have the skills to work in the PMO.

B. The project manager consistently failed to involve stakeholders showing he does not have they skills to work in the PMO. This is one of the longest questions you might see. Be careful. Much of the information in the question is there to misdirect you. This question takes you back to a core PMIsm. One of the most common problems is a failure to engage stakeholders early and often enough. This problem is evidenced in the question by the significant scope changes, the remaining issue log items and the fact of having to redo the charter.

5. When is a project officially authorized? A. When the required information has been captured B. When the project charter is approved C. When the initial assumptions and constraints have been reviewed D. When the Project Manager has been selected

B. When the project charter is approved p. 77 - If he or she has not already been assigned, the project manager will be selected and initial constraints and assumptions will also documented. All of this information is captured in the project charter and the project becomes officially authorized when it is approved.

39. As a project manager your boss instructs you to develop a realistic plan. Which of the following is the best method for achieving a realistic plan? A. You create the plan with input from the sponsor B. You create the plan with input from the project team C. You create the plan with input from the stakeholders D. The team creates the plan with your input

B. You create the plan with input from the project team p. 82-83 - The project manager is responsible for creating the plan with the input from their subject matter experts and the team.

13. The progressive detailing of the Project Management Plan—which indicates that planning is an iterative and ongoing process—is often called what? A. An iterative feature plan . A project management plan C. A rolling wave plan D. All of the above

C. A rolling wave plan p. 160, 185 - Significant changes occurring throughout the project cycle often trigger a need to revisit one or more of the project management processes. Although the frequency might vary, this progressive detailing of the project management plan is the very definition of a rolling wave plan.

57. What kind of life cycle is agile, iterative, or incremental with the detailed scope being defined and approved at the start of an iteration? A. Iterative B. Incremental C. Adaptive D. Hybrid

C. Adaptive p. 19 - Adaptive life cycles are agile, iterative, or incremental with the detailed scope being defined and approved at the start of an iteration?

2. Which of the following is not part of the integration management knowledge area? A. Direct and manage project work B. Develop project management plan C. Distribute information D. Monitor and control project work

C. Distribute information p. 360 - Distributing information is part of the manage communications process.

31. Which of the following is usually a core area of emphasis for effective project integration? A. The technical expertise of the team B. Effective use of the change management process C. Efficient and effective communication throughout the key interfaces D. Efficient and effective product control

C. Efficient and effective communication throughout the key interfaces p. 72 - This point cannot be emphasized enough. Communication is key to managing projects successfully. It is the starting point for all other efforts.

33. You are a project manager meeting with a coworker over lunch. You explain that you spend a lot of time reviewing historical records from previous, similar projects to prepare for your current project. Which of the following describes the best use of those records? A. Project planning, creating lessons learned, and risk management B. Life cycle costing, estimating and lessons learned C. Estimating, risk management and project planning D. Life cycle costing, lessons learned and project planning

C. Estimating, risk management and project planning p. 104 - Historical records are not typically used for lessons learned, life cycle costing, or status reports.

54. As a new project manager you are tasked with delivering an important project in a short time window. In this situation what would it be best to rely on in order to improve your chances of success? A. The organization's configuration management system B. Your PMP training C. Historical information D. Stakeholder input

C. Historical information p. 52-59 - When you lack the personal experience, your first resource should be expert judgment . When that is not available turn to historical information.

21. Can process inputs be predefined on a project as constraints? A. Rarely B. Never C. Often D. Occasionally

C. Often p. 28,39 - It is not at all unusual for process inputs to be locked into place as a constraint. This usually happens when they are predefined.

42. All of the following are part of performing integrated change control except which one: A. Project management plan B. Change management plan C. Project management information system D. Work performance reports

C. Project management information system p. 113 - The project management information system is part of Direct and Manage Project Execution but not Performing Integrated Change Control.

37. When attempting to lead a project, you struggle because your project is experiencing a significant number of changes to the project charter. As you work through these changes, who has the primary responsibility to decide if the changes are necessary? A. Project manager B. Project team C. Project sponsor D. Project stakeholders

C. Project sponsor p. 75-77 - The project sponsor is supposed to approve the charter. They are also responsible for approving any changes to that charter.

11. The initiating process group feeds into or accepts input from each of the following project management process groups except: A. The planning process group B. The executing process group C. The closing process group D. All of the above

C. The closing process group Guide p. 18 - Because the Initiating Process Group is supposed to be done at the beginning of each project phase, there is a need to communicate with each of the other process groups (except the Closing Process Group) when the project has ended.

3. Which of the following information is not captured in the project charter? A. Initial constraints and assumptions B. The name of the project manager C. The project management plan D. All of the above are captured

C. The project management plan p. 75-81 - The initial scope description and the resources that the organization is willing to invest are further refined during the initiation phase. If he or she has not already been assigned, the project manager is selected. Initial assumptions and constraints are also documented. The Project Management Plan is created as part of the planning processes.

30. Who is responsible to ensure that the knowledge, skills, and processes of project management are applied as needed by the project? A. The project team B. The project sponsor C. The project manager D. All of the above

C. The project manager p. 51-52 - The project manager—in collaboration with the project team—is always responsible for determining what processes are appropriate, as well as the appropriate degree of rigor for any given process.

58. Which of the following is represents the raw observations and measurements identified during activities performed to carry out the project work? A. Work performance reports B. Work performance information C. Work performance data D. Work results

C. Work performance data p. 26 - Work performance data represents the raw observations and measurements identified during activities performed to carry out the project work.

25. Which of the following is an acceptable reason to need to re-baseline your $25,000,000 project? A. The IT department deploys a new project management control system B. Your primary vendor requests the use of a new Earned Value reporting methodology C. Your sponsor approves a $1,500,000 change in scope. D. The most expensive deliverable on the project comes in 20% under budget.

C. Your sponsor approves a $1,500,000 change in scope. Guide p. 87 - The integrated change control process is performed throughout the project. This is because no project runs perfectly. As part of this process, it is critical to maintain only changes that have been approved . Significant changes in scope may require re-baselining the project

What is Opportunity Cost?

Opportunity cost is the value of the next highest alternative—assuming the alternatives are mutually exclusive. It defines what you are giving up by making the choice.

43. You are an information technology project manager and have been asked to lead a traditional engineering project. You delegate the various processes to the project resources who are subject matter experts and you serve as the coordinator of activities and an arbiter for disagreements. What results do you expect based upon this approach? A. A team that functions as a cohesive unit with both commitment and collaboration B. A team that might start out slow with a large amount of confusion, but eventually gets organized and performs well C. A team with strong technical focus and performance, but little interest in the overall goal D. A team with poor performance, low morale, significant conflicts and a significant amount of turnover

D. A team with poor performance, low morale, significant conflicts and a significant amount of turnover To be successful, the project manager must actually manage the project. When he or she acts as a simple coordinator the project will most likely fail and the resources will become frustrated.

7. Involving the customers and other stakeholders in the initiation process is important because: A. It improves the probability of shared project ownership B. It improves the likelihood of deliverable acceptance C. It improves stakeholder satisfaction D. All of the above

D. All of the above Guide p. 19-24 - Involving all stakeholders—including the customers—in the initiating process is important because the easiest time to change the project is at this early stage. Additionally, it helps improve the probability of shared ownership, improves the likelihood of deliverable acceptance, and improves stakeholder satisfaction.

27. Which of the following either directly or indirectly should be addressed by the project charter? A. Requirements that satisfy stakeholder needs, wants and expectations B. Summary milestone schedule C. Functional organizations and their participants D. All of the above

D. All of the above Guide p.75-77 - The project charter is one of the most important project documents. It is created prior to beginning the project. The charter should address the following information either by reference or directly: Requirements that satisfy stakeholder needs Business needs The project purpose or justification Assigned project manager and their authority level Summary milestone schedule Stakeholder influences Functional organizations and their participations Organizational, environmental and external assumptions Organizational, environmental and external constraints Business case justifying the project including ROI Summary budget

17. How do you document the results of the various iterations within the planning processes? A. Within the various deliverables B. As updates to the scope statement C. As updates to the risk management plan D. As updates to the project management plan

D. As updates to the project management plan p. 22-23 - The results of the iterations within the planning process are documented as updates to the project management plan

46. You are a project manager within a large PMO. Currently, the PMO is at about 75% capacity when your company wins a new, very large contract that will require significant organizational resources to execute. What is the first thing you should do once you hear about the new project? A. Ask management if you can lead the new effort B. Ask management how the new project will use organizational resources C. Fast track your project D. Ask management how the new project will affect your project

D. Ask management how the new project will affect your project The first thing you should do is obtain or complete an evaluation of how the new project will impact your project. Only then can you make an informed choice about what to do next.

4. When should the organization's business needs be documented? A. Throughout the entire project process B. In the planning process C. In the initiation process D. Before beginning the initiation process

D. Before beginning the initiation process 30-31 - Before beginning the Initiating Process Group, the organization's business needs or requirements are documented. This may blur the project boundaries. To create the charter a major input is the business case.

32. Which of the following is a key driving force for communication on a project? A. Performance B. Differentiation C. Optimization D. Integration

D. Integration p. 72 - This question goes back to the constant battle between the need for differentiation (or subject matter expertise) and the need for integration (or team members working together). The need for integration is the key reason to focus on communication.

6. Which of the following is not a reason to repeat the initiating process group at the start of each project phase? A. To keep the project focused on the business need that the project was undertaken to address B. It allows the project team to evaluate whether or not the business need no longer exists C. It allows the project team to evaluate whether or not the project will be able to satisfy the business need D. It ensures project success

D. It ensures project success 19-24 - Repeating the initiating process at the start of each project phase (methodology or time based development process) does not ensure success. However, it does serve to keep the project focused on the business need, it allows the project team to determine if the business need still exists, and it allows the project team to determine if the project can satisfy those needs. Therefore it definitely improves the likelihood of project success

20. Which of the following statements is not true about projects? A. Not all of the project management processes are needed on every project B. Not all of the interactions apply to all project phases C. Projects dependent on unique resources might skip the definition of roles and responsibilities as they are already defined D. None of the above

D. None of the above Guide p.21-23 - A key concept with the project management process groups is flexibility. This requirement means that not all processes are needed on every project and not all of the interactions apply to every project phase. Unique resources are often predefined.

15. Who (or what) ensures that feedback and refinement do not continue indefinitely in the planning processes? A. The project manager B. The project sponsor C. The project management plan D. Organizational policies and procedures

D. Organizational policies and procedures p. 21-23 - Because the feedback and refinement process can continue indefinitely if left unchecked, procedures set by the organization identify when the planning effort ends

34. You are a relatively new project manager in your organization and have been given a mentor to help you succeed. While meeting with your mentor she suggests that when it comes to change, your attention should be given to: A. Following your change management process B. Making the changes C. Tracking and recording the changes D. Preventing unnecessary changes

D. Preventing unnecessary changes A key component of project management is ALWAYS being proactive. In this question only one choice is proactive and that is preventing unnecessary changes.

59. The selection of project management processes, inputs, tools, techniques, outputs, and life cycles phases is called what? A. Methodology selection B. Governance C. Project initiation D. Tailoring

D. Tailoring p. 28 - Tailoring is the process of selecting the inputs, tools, techniques, outputs, and life cycle phases used to manage a project.

38. You are a project manager at ABC Corp. Which of the following explanations would most accurately describe your project management plan to a coworker? A. A Gantt chart showing the project schedule and resources B. The project scope document C. A scope management plan, risk management plan combined with six other management plans D. The project management plan is the document that describes how the project will be executed, monitored and controlled, and closed.

D. The project management plan is the document that describes how the project will be executed, monitored and controlled, and closed. PMBOK® Guide p. 86 - A true project management plan is made

52. Your project has changed significantly and requires changes be made to the project charter. Who has primary responsibility to decide if these changes are necessary? A. The project manager B. Key stakeholders C. The project team D. The sponsor

D. The sponsor p. 77 - The authorization of a charter comes from a party outside the project team, typically the sponsor, and that party has final authority over any changes to the charter.

What are some things that a Project Charter does not include?

It does not include: - detailed requirements - the project schedule - the project budget or other detailed information

What is the Benefit / Cost Ratio (BCR or BCI)?

Most people are used to talking about a cost / benefit ratio and this is the same thing. The only difference is that the benefits are always placed in the numerator and the costs in the denominator. This is done so that any value greater than one is good.

What are Sunk Costs?

Sunk costs refer to the money that has already been spent on the project. It cannot be recovered. You should never make a project decision based upon sunk costs because it could be good money following bad.

What is the Future Value (FV)?

The Future Value represents the value of an investment at some future point based upon a provided interest rate

What is the Law of Diminishing Returns?

The Law of Diminishing Returns argues that with every process you reach a point where adding one more dollar of cost will not add an equal return of value. If you discover that increasing the costs by a dollar does not provide at least a dollar return, you should not invest any more

What is the Net Present Value (NPV)?

The Net Present Value is almost identical to the present value. In the Present Value calculation you discount the value— typically representing a revenue stream—to account for inflation or some other similar rate. Net Present Value does the same thing, but it also takes into consideration the money that must be spent to complete the project over time. To do so it costs the Present Value from the net costs to obtain the NPV

What is Economic Value Added (EVA)

This concept rarely appears on the exam, but references whether the project returns more value to the organization than it costs to produce.

What is the Internal Rate of Return (IRR)?

To solve for the IRR you must use the NPV calculation and select the middle-most interest rate of the four potential answers. You are looking for an interest rate which produces an NPV of zero. Based upon the result from the first calculation you can determine if you need a larger or smaller value. You should not have to calculate the NPV more than twice to determine the correct IRR.