SIE 457 Compiled Final 1.1.1

Fixed Price Incentive Fee Calculation. In this fixed price incentive fee contract, the target cost is estimated at $150,000 and the target fee is $30,000. The project is over, and the buyer has that the costs were, in fact, $210,000. Because the seller's cost came in higher than the estimated costs, the seller shares in the added cost: 60% to the buyer and 40% to the seller. The ceiling price is $200,000. Calculate the point of total assumption.

$183,333

Fixed Price Incentive Fee Calculation. In this fixed price incentive fee contract, the target cost is estimated at $150,000 and the target fee is $30,000. The project is over, and the buyer has that the costs were, in fact, $210,000. Because the seller's cost came in higher than the estimated costs, the seller shares in the added cost: 60% to the buyer and 40% to the seller. The ceiling price is $200,000. Calculate the final price.

$200,000

When an organization comes to the realization that there are quality problems in products that are already in service, ethical approaches include (I) divulging the information to the public at large (II) recalling, if possible, affected products (III) handling complaints on an individual rather than a systemic basis.

(I) divulging the information to the public at large. (II) recalling, if possible, affected products.

Which of the following is true of modern quality management?

- Quality is defined by the customer -Quality has become a competitive weapon -Quality is now an integral part of strategic planning

Which of the following is not one of the potential results for the international project manager? -Personal risk -Absence from home -Missed career opportunities -Adverse conditions -All of these are potential risks

-All of these are potential risks

Culture is a concept that encompasses all of the following except: -Shared norms -Beliefs -alues -Economic level -Customs

-Economic level

The major issues dealing with international project management include all of the following except: -Selection and training of personnel for international projects -Foreign currency exchange rates -Location of international expansion -Environmental factors -Challenge of working in a foreign culture

-Foreign currency exchange rates

Iterations are short time frames (time boxes) that typically last from ___________. 1 - 4 days 1 - 2 weeks 1 - 4 weeks 4 - 7 weeks 7 - 12 weeks

1 - 4 weeks

A project was assessed and the following earned value data have been found: PV: $750,000 EV: $750,000 AC: $900,000 What is the burn rate of the project?87 Burn Rate = AC/EV o 1.20 o 1.10 o 1.00 o 0.83

1. 1.20

A request, demand or assertion of a contract partner for consideration, compensation or payment under a legally binding contract, such as a disputed change, is often referred to as a____. 99 o Claim o Trial o Refinement o Audit

1. Claim

Which concept of locating team members can help them best to enhance their performance as a team?78 o Co-location o Cross-functional dispersion o Virtual e-teams o Global team dispersion

1. Co-location

Set based design principles

1. Consider a large number of design alternatives by understanding the design space 2. Allow specialists to consider a design from their own perspective and use the intersection between individual sets to optimize a design 3. Establish feasibility before commitment

You are going to take over a new project as the project manager in an enterprise unknown to you. What should you investigate during the chartering process? 81 o Enterprise environmental factors o Project management plan o Project risk register o Team performance reports

1. Enterprise environmental factors

You are just leaving a meeting during which you have been assigned as the manager of a project to build a sub-station that is part of a major electric power distribution system. The decision to run the project has been made before your assignment and without your involvement. Some basic decisions on deliverables, staffing, budgeting and on the completion date have already been made as well. What should you do first?95 o Obtain a project charter which links the project to the strategy and ongoing work of the organization and documents the initial decisions. o Create a project schedule for your project which shows all major milestones and deadlines linked with them. Then try to obtain approval for the schedule. o Start developing a detailed risk register which includes identified risks with their qualitative and quantitative assessments and a response plan. o Start the quality assurance process by developing test procedures for the final deliverable and defining metrics against which the tests will be performed.

1. Obtain a project charter which links the project to the strategy and ongoing work of the organization and documents the initial decisions.

Projects may be initiated by all of the following except____. 100 o the project team o a sponsor o a PMO o a portfolio review board

1. The Project Team

Some colleagues told you that they are planning, executing, monitoring and controlling a project by use of milestones only with durations between 1 and 4 weeks. What do you think?93 o The approach is erroneous. A milestone is a significant point with zero duration to highlight achievements. o It is a good approach as long as the milestones reflect fixed or imposed dates during the project lifecycle only. o It is a good approach if the milestones are used for reviews between consecutive project phases only. o It is a good approach because it saves from progress measurement on activities and work packages.

1. The approach is erroneous. A milestone is a significant point with zero duration to highlight achievements.

You are assigned as a project manager for an internal project. During cost planning and budgeting you discovered that there are peak times of costs during the project and other times when costs are fairly low. What could this mean for the project?80 o The fiscal budget mechanism which is used by the performing organization may not allow for cost peaks in your project, and you may have to level out expenditures over time. o You can silently create budget contingencies during low-cost periods and reuse them later during those periods when you have to cover peak levels in project costs. o You may find another project manager with a project that has a different rhythm of high and low costs. Then, you may be able to move budget during one project's low cost periods to the other project. o You are a project manager and work with a lifecycle budget for your project. Fiscal budgets are a matter of the functional organization, and you generally do not have to care about them

1. The fiscal budget mechanism which is used by the performing organization may not allow for cost peaks in your project, and you may have to level out expenditures over time.

Post-mortem analysis after scheduled finish date of a project shows a CPI of 0.8 and an SPI of 1.25. What is a plausible explanation for that?92 o The project was terminated early. At that time, it was over budget and ahead of schedule. o The project has produced additional deliverables which were originally not required. o The project has evidently been finished under budget and behind of schedule. o The project has evidently been finished over budget and ahead of schedule

1. The project was terminated early. At that time, it was over budget and ahead of schedule.

7 types of waste

1. Transport (moving products that are not actually required to perform the processing) 2. Inventory (all components, work in process and finished product not being processed) 3. Motion (people or equipment moving or walking more than is required to perform the processing) 4. Waiting (waiting for the next production step) 5. Overproduction (production ahead of demand) 6. Over Processing (resulting from poor tool or product design creating activity) 7. Defects (the effort involved in inspecting for and fixing defects)

As a project manager you can assign any one of two team members to a highly coveted task. Both are equally capable, but one of them is a member of your ingroup. To the other one, you have far more distance. How should you behave? 102 o You disclose the situation to stakeholders and solicit a joint decision. o You take the person not in your in-group to avoid misunderstandings. o Chose the in-group person. The trustful relation will benefit the project. o You delegate the decision to a third team member to avoid the conflict

1. You disclose the situation to stakeholders and solicit a joint decision.

The sales representative of your company recently contacted you. You made some estimates on direct costs for an offer on a firm fixed-price contract. According to company policies, indirect costs (overheads) are to be calculated as a percentage of the direct costs, the sum of both cost types caused him to calculate a far too high price. How should you not react?75 o You reduce your direct cost estimates by reducing the amount of work and the rates allocated to them. This allows a reduction of the overhead costs and a lower price. o Calculating overheads as a percentage of direct costs is just a model to simplify calculations. A more specific analysis of these costs may lead to a more realistic project price. o Cost estimates are quantitative assessments of the probable costs required to complete project work. These are made by the project team. It is the sales person's job to make the price. o You make the sales person aware that a reduction of direct costs may reduce the numbers for overhead cost allocation, but will not influence the actual overheads.

1. You reduce your direct cost estimates by reducing the amount of work and the rates allocated to them. This allows a reduction of the overhead costs and a lower price.

Crashing describes a technique to speed up a project by...64 o ...reallocating existing resources or assigning additional resources to the project. o ...overlapping activities which were originally planned to be done in sequence. o ...reducing the number of features of the product in order to reduce development work. o ...reducing the duration estimates for activities to increase the pressure applied to the staff.

1. reallocating existing resources or assigning additional resources to the project.

When identifying the basis of the business need for a project all of the following can be considered except____, 107 o regular plant maintenance o market demands o technological advances o legal requirements

1. regular plant maintenance

It took exactly 10 hours to perform the first kidney transplant on a 100 percent learning curve. The second kidney transplant will take how many hours to perform?

10.0 hours with a 100% learning rate, there is no learning

At XYZ Corp., the aggregate planning unit reflects the fact that 50 percent of its output is product version A, 30 percent is version B, and 20 percent is version C. Suppose that over the coming year forecasted total demand (in planning units) is for 10,400 units. Once the production plan is disaggregated, what will the weekly forecast for version A be (assume 52 weeks per year)?

100

A job is expected to have a learning curve of 90 percent. The third unit required 16 hours. The 12th unit should take approximately how many hours?

12.95 The time would be 16 x .9 x .9 (from the 3rd to the 6th to the 12th unit)

Suppose the first unit of output required 800 labor hours, and the second required only 640. How many hours will be reduced from the second unit to the fourth?

128

A job is expected to have a 70 percent learning curve. The first unit has been completed in 20 hours. Accordingly, the second unit can be expected to take approximately how many hours?

14 hours the second unit is a doubling of volume, so its time would be 20 x .7

Inventory information for firm ABC:What was the inventory at the end of March 2008?

150

Consider the following information:What is total forecasted demand?

1800

Together with your team, you applied three-point estimation on a critical path which consists of two activities. The following duration uncertainties are all calculated assuming a ±3sigma confidence interval. The duration uncertainty—defined as pessimistic minus optimistic estimate—of the first activity is 18 days; the second estimate has an uncertainty of 24 days. Applying the PERT formula for paths (beta distribution), what is the duration uncertainty of the entire path? 94 PERT = (O+4T+P)/6 O= Optimistic P = Pessimistic SD = Standard Deviation T = Typical Estimate o 21 days o 30 days o 42 days o No statement is possible from the information given

2. 30 days

What is the meaning of the acronym CSOW? 62 o A statement of work that is part of a contingency plan; it is commonly linked with Contingency reserves. o A statement of work that has been formally agreed upon by both parties and is therefore part of a contract. o A statement of work that is currently valid; this contrasts with the scope baseline, a formerly valid SOW. o A statement of work on project level that cumulates statements of work on cost account level

2. A statement of work that has been formally agreed upon by both parties and is therefore part of a contract.

You took over a customer project for your company. From the inputs available, including contract, statement of work and project charter, you have developed a project management plan. You already presented that plan in a meeting with key stakeholders including your project sponsor and some representatives from the customer organization. During the meeting you sensed a high level of dissatisfaction by the customer executives, who signaled that the project might not produce the results that their company had expected. In your understanding, all necessary actions have been planned to meet the customer's requirements. What should you do next?86 o Request a written statement from the customer detailing the requirements which they believe are not addressed by your plan. Use this statement to update the project plan. o Arrange meetings with the customer to identify their needs, wants and expectations for the project. Then create a narrative Scope statement from this information to document the agreed upon project scope. o Request a formal meeting on top executive level to get the misunderstandings sorted out, then arrange a change request, re-plan your project where necessary and go ahead with the project work. o Do not over-react. Performed according to your plan, the project will produce a convincing product for the customer. As soon as the executives will see it, they will probably change their opinion and accept it.

2. Arrange meetings with the customer to identify their needs, wants and expectations for the project. Then create a narrative Scope statement from this information to document the agreed upon project scope.

Which statement on constructive changes is false?79 o Constructive changes are contract changes which are construed from actions taken by either party, not from a change document. o Changes in projects under contract are called constructive changes if they yield benefits for both parties. o Constructive changes are a frequent cause of disputes and claims of one contract party against the other. o Field changes should be meticulously documented to avoid an interpretation as constructive change.

2. Changes in projects under contract are called constructive changes if they yield benefits for both parties.

What is the purpose of the following diagram? 96 DIAGRAM NEEDED for 96 o Describing the influence of extreme weather conditions on progress and on the achievement of project objectives. o Comparing the relative importance of variables that have a high degree of uncertainty with those that are more stable. o Evaluating team performance and identifying team members with low productivity and work effectiveness. o Evaluating the degree to which project work and deliverables conform to the expectations of key stakeholders.

2. Comparing the relative importance of variables that have a high degree of uncertainty with those that are more stable.

When running a project as a project manager, what should you focus on during the executing processes? 114 o Doing project work o Coordinating people and resources o Ensuring accountability for errors o Avoid third-party influence

2. Coordinating people and resources

You are identifying key stakeholders for your project. Which of the following groups is least likely to be included?120 o Project manager and project team o Customer and users o Sponsor o Media representatives

2. Customer and users

You finished your project for a customer to implement a business software solution. All deliverables have been handed over and are already in use by the company. There is a minor last payment to be made by the customer on contract closure. You believe that it is now getting time to finally close the contract with the customer and then administratively close down the project. You approached the customer this morning and found that they are reluctant to finally close the contract. But you do not exactly understand why. What should you not do?110 o Update all documents related to the project and the product so that they reflect the final specifications and the status of both the project and the product. Organize them in a fashion for easy access. o Focus on your next project and leave the customer the time to get familiar with the software. They will come back to you anyway after some weeks to terminate the contract and make the last payment. o Based on the contract and all documents which are relevant for the formal relationship with the customer, write a close-out report describing what was contractually required and what was obtained. o Make sure that there are no active purchase orders against the contract or any other pending obligations, requests or claims from either party which need to be resolved. Then insist on formal contract closure.

2. Focus on your next project and leave the customer the time to get familiar with the software. They will come back to you anyway after some weeks to terminate the contract and make the last payment.

At the end of an internal project, you find several key stakeholders including the sponsor reluctant to finally accept all deliverables and then close the project. What should not be your next step in this situation?111 o Identify any open issues and get them solved. Then be firm on formal closure. o Formally close the project. Stakeholders will find a way by themselves to sort things out. o Identify and openly discuss personal rationales underlying the reluctance. o Invite earnest feedback from all sides and try to identify misunderstandings.

2. Formally close the project. Stakeholders will find a way by themselves to sort things out.

What is least important when it comes to archiving project records? 84 o A well-designed records management system o Integration of the archive with business software o Updated records reflecting final results o Easy availability of information for future use

2. Integration of the archive with business software

What should not be your thoughts when you are organizing documents as lessons learned? 119 o Devise the lessons learned documentation in a wording which is easy to understand for a reader who is not familiar with the project. o Lessons learned must detail how certain groups or persons caused failures and delays, especially if they are inside the own organization. o Writing lessons learned should be an exercise enhancing your personal learning experience. Make sure you grasp what you are writing down. o Keep lessons learned documents at a place where they are easy to access and to retrieve for those who may later need the information.

2. Lessons learned must detail how certain groups or persons caused failures and delays, especially if they are inside the own organization.

You need a batch of 100 identical valves which will be custom made for your project to build a food processing plant. There is a risk of deterioration of victuals during processing; therefore you placed requirements on the quality of the raw materials for the valves, which will make production very costly. Unfortunately, in order to test the valves against these requirements, you would have to destroy them. And you have no experience with the vendors at all. What should you do? 103 o Do 0% inspection. You have to trust the selected supplier that they will use the materials according to your specification. o Negotiate a contract over more than 100 items and perform acceptance sampling for the surplus of the batch on delivery. o Require the seller to supply the valves together with appropriate certificates from their raw materials suppliers. o Do 100% inspection on delivery to your premises, then order another batch of 100 valves.

2. Negotiate a contract over more than 100 items and perform acceptance sampling for the surplus of the batch on delivery.

In configuration management, which of the following is necessary to maintain the integrity of baselines? 69 o Analyzing variances by comparing baseline information with actual project data. o Releasing only approved changes for incorporation into products or services. o Ensuring that team members adhere to a code of ethical conduct and behavior. o Ensuring transparency across all project management processes and activities.

2. Releasing only approved changes for incorporation into products or services.

The members of your project team have been assigned to your project with general availability levels of 50%. Yesterday, they reported to you that significant variances occurred during project execution. You have noted that the team members have been spending less than 50% of their time working on your project. Your project schedule is about to become heavily delayed, and deadlines are in jeopardy. What should you do?61 o Talk to your sponsor and try to get more resources assigned on similar conditions as the existing ones. o Talk with functional managers. Negotiate clear and written assignments with reliable scheduling priorities. o Ignore the difficulties, adjust your schedule and negotiate new deadlines according to the slower progress. o Focus on internal charges. Make sure that your project is not getting charged for more than the actual work.

2. Talk with functional managers. Negotiate clear and written assignments with reliable scheduling priorities.

While executing a project, you sense a slightly negative attitude in your team. Which type of document do you now need, among others, to better understand and then be able to improve the situation?74 o Project charter o Team performance assessments o Cost baseline o Statement of work

2. Team performance assessments

During risk identification sessions, you and your team identified more than 150 risks for your project. You are afraid that evaluating each of these risks quantitatively will cost you an enormous amount of time, while not all of them are really relevant and important enough to justify such a measure. What should you do next?65 o Identify risk triggers where possible. Analyze only those risks quantitatively for which no trigger could be found. o Use qualitative risk analysis in order to prioritize risks for further action, such as quantitative risk analysis. o Assess the probability of each risk qualitatively and further analyze only those risks with high probability. o Assess the potential impact of each risk qualitatively and further analyze only those risks with high impact.

2. Use qualitative risk analysis in order to prioritize risks for further action, such as quantitative risk analysis.

While planning a project, you are defining activities. Which of the following is not a result of that process?117 o Activity list o Work breakdown structure o Activity attributes o Milestone list

2. Work breakdown structure

Following the cultural approach of the corporation for which you are starting to manage a project, you are guiding your project team through the first life-cycle phase of conceptualization. Your next step is to call for a team meeting to let ideas emerge in an unrestricted creative process. What exactly should that look like? 68 o You write down the ideas of team members and structure them into categories of strengths, weaknesses, opportunities and threats during the session. o You creatively gather thoughts and ideas without any discussion or frowning. These ideas are only filtered and structured after the end of the brainstorming session. o Your team members wear hats with different colors, each of which stands for a way of thinking. Each member discusses topics from the viewpoint of their thinking. o You try to eradicate deviating ideas and concepts of team members during the meeting, so that the entire project team follows your principles.

2. You creatively gather thoughts and ideas without any discussion or frowning. These ideas are only filtered and structured after the end of the brainstorming session.

Being the project manager in a high-risk electronics project with a lot of new technologies, you developed a risk management plan and identified risks which you documented in a risk register. Then, the risks were analyzed and response was planned. During risk control meetings, it gets obvious that the documents you created are not very helpful. What have you probably done wrong?90 o You failed to use an RBS. o You did the first processes alone. o You did not identify Triggers. o You did not calculate EMVs

2. You did the first processes alone.

A project charter is a document that...76 o ...describes both the project scope and the product scope at detail level. o ...authorizes the project and the use of organizational resources to meet project requirements. o ...breaks down the project scope over several steps to describe the project on work package level. o ...describes all activities which are necessary to create the project deliverables.

2. authorizes the project and the use of organizational resources to meet project requirements.

Your management announced that they want to put you on a stretch assignment. In this situation, you should consider that...67 o ...a stretch assignment is going beyond your qualifications right from the start. Whatever your education, knowledge and skills are, you cannot fail personally. Congratulations. o ...key stakeholders must have timely and complete information regarding your qualifications to make decisions regarding your suitability for the assignment. o ...stretch assignments bear an increased risk of failure, and this is rarely outweighed by the learning and development experience expected to come with the assignment. o ...you should avoid the increased hassle coming with the assignment. It will not be enough for you to simply satisfy requirements and achieve objectives. You will have to learn a lot.

2. key stakeholders must have timely and complete information regarding your qualifications to make decisions regarding your suitability for the assignment.

Inventory information for firm ABC:What is the expected inventory at the end of April 2008?

250

The upper and lower control limits are typically set:

3 sigma from the mean in each direction, and to detect and flag when a process may be out of control

The upper and lower control limits are typically set: One standard deviation (sigma) from the mean in each direction 3 standard deviations (sigma) from the mean in each direction Outside the upper and lower specification limits Two standard deviations (sigma) from the mean in each direction

3 standard deviations (sigma) from the mean in each direction

The upper and lower control limits are typically set at

3 standard deviations from the mean in each direction

A project was budgeted at $1,000,000. Meanwhile, the project is executed, and the following current figures have been assessed: PV: $500,000 EV: $450,000 AC: $550,000 Assuming that the cost variance was caused by one-time cost drivers, which are no more effective, what estimate at completion (EaC) can you derive from these figures? 82 BAC = Amount budgeted for project EAC= AC + (BAC-EV) o $900,000 o $1,000,000 o $1,100,000 o $1,222,222

3. $1,100,000

Liquidated damages (LDs) are contractually agreed payments in order to... 1. ...give the contractor an incentive to meet an aggressive schedule or challenging quality objectives. 2. ...penalize the contractor for late completion of a project or failure to meet specifications. 3. ...cover the customer's costs caused by late completion or failure to meet specifications by the contractor. 4. ...make a bid or proposal binding for the offerer while the customer has time to select among various bidders.

3. ...cover the customer's costs caused by late completion or failure to meet specifications by the contractor.

Which statement is false? Progressive elaboration of project scope...104 o ...is a characteristic of projects that accompanies the concepts of temporary and unique. o ... means developing in steps. It not should be confused with scope creep. o ...signals a weak spot in the scope definition process, caused by incomplete contracts and specifications. o ...when properly managed, integrates elaboration of project and deliverable specifications

3. ...signals a weak spot in the scope definition process, caused by incomplete contracts and specifications.

Which is not a point used for three-point estimation? 71 o Optimistic estimate o Most likely estimate o Budget estimate o Pessimistic estimate

3. Budget estimate

Your project, performed for a customer, is coming to an end. The customer has been contractually granted a three years warranty period for the product of the project. What should you do first?89 o Hand all relevant documentation over to the organizational unit responsible for handling the warranty. o There is no additional work to be done. The contract should describe all processes in sufficient detail. o Changes on the product can affect warranty clauses. Ensure that these clauses are aligned with the final specifications. o According to many legislations, you cannot formally close a project before the end of the warranty period.

3. Changes on the product can affect warranty clauses. Ensure that these clauses are aligned with the final specifications.

Which of the following are not common barriers to project team building? 72 o Differing outlooks, priorities, and interests o Role conflicts o Excessive team member commitment o Unclear project objectives/outcomes

3. Excessive team member commitment

What is true for the process of scope validation? 109 o Insufficient documentation is not a reason to reject deliverables, as long as in all other respects they are built according to specifications agreed upon. o The project team members must achieve acceptance of the deliverables. This process is coordinated and documented by the project management team. o It is the project management team's responsibility to obtain stakeholder's formal acceptance of the completed project scope and deliverables. o Formal acceptance will finally reconcile all inconsistencies among deliverables and documents that where caused by bad change control and scope creep.

3. It is the project management team's responsibility to obtain stakeholder's formal acceptance of the completed project scope and deliverables.

What is not true for project deliverables?88 o Project deliverables should be identified, described and agreed upon as early in the project as possible. o Project deliverables may be products, capabilities for services or other kinds of results. o Once project deliverables have been identified, their description should not be changed any more. o The acceptance process for deliverables and how rejection will be addressed should be described in the contract.

3. Once project deliverables have been identified, their description should not be changed any more.

Which is generally not regarded as one of the three categories of culture that managers should master? 91 o National culture o Organizational culture o Project culture o Functional culture

3. Project culture

A project customer and a contractor agreed on regular quality audits during execution by a third party audit team, which is working on an assignment for the customer. What should the contractor have prepared for the audits?116 o Work results o Measurements and test results o Quality documentation o Contract-related correspondence

3. Quality documentation

You created a baseline of your system configuration and added several changes to that as amendments. Meanwhile you are afraid that the big number of Deltas may cause inconsistencies and make you unable to understand the current system configuration. What should you do?98 o Proclaim a design freeze. o Go on with amendments. o Revise the baseline. o Create an entirely new configuration.

3. Revise the baseline

Your project had a cost overrun in the past and you tried to obtain funding on top of the original budget at completion (BAC). Management has told you that they cannot make additional funding available. You have to increase cost performance so that the project will be finished with costs not exceeding the original BAC. Which metric describes the future performance to meet this objective?113 o TCPI calculated as BAC / CPI o TCPI calculated as (BAC-EV) / (EAC - AC) o. TCPI calculated as (BAC-EV) / (BAC-AC) o TCPI cannot be calculated in this situation

3. TCPI calculated as (BAC-EV) / (BAC-AC)

Which statement describes best the purpose of the communications management plan? 70 o The project management plan is a subsidiary document of the overall communications management plan. o The communications management plan describes rules of behavior and respect for communications in cross-cultural teams. o The communications management plan describes the information delivery needs including format and level of detail. o The communications management plan focuses on the use of communications technologies by the project management team

3. The communications management plan describes the information delivery needs including format and level of detail.

You monitored figures on cost and planned/earned value for each individual project week until the data date at the end of the sixth week. What is the status of this project at this date? Project Actual Earned Planned Week Costs Value Value 1 $65,000 $61,000 $67,000 2 $85,000 $79,000 $89,000 3 $100,000 $102,000 $110,000 4 $125,000 $124,000 $121,000 5 $135,000 $133,000 $139,000 6 $125,000 $120,000 $131,000 formulas for solving - not given on exam SV = EV - PV CV = EV - AC o The project is ahead of schedule and over budget. o The project is ahead of schedule and under budget. o The project is behind schedule and over budget. o The project is behind schedule and under budget

3. The project is behind schedule and over budget.

You are managing an internationally dispersed project team. The members of your team have different cultural backgrounds and primary languages, but all are educated and able to communicate eloquently in English. You should nevertheless bear in mind that...105 o ...there are cultural differences. You should write one code of conduct for each nationality. You should then limit access to these codes. o ...you may have to accept that team members from one country may not be prepared to work with colleagues from certain other countries. o ...spoken communications can cause misunderstandings you may not find in written communications. These may be hard to identify. o ...certain groups will be happy to stay awake over night to join telephone and video conferences during other members' working time.

3. spoken communications can cause misunderstandings you may not find in written communications. These may be hard to identify.

74. A common rule of thumb in the world of high-tech product development is that a six-month project delay can result in a __________ per cent loss in product revenue share.

33 Explanation: A common rule of thumb in the world of high-tech product development is that a six-month project delay can result in a 33 per cent loss in product revenue share.

84. A common rule of thumb in the world of high-tech product development is that a six-month project delay can result in a __________ per cent loss in product revenue share.

33 Explanation: A common rule of thumb in the world of high-tech product development is that a six-month project delay can result in a 33 per cent loss in product revenue share.

More and more companies are discarding the traditional superior-subordinate performance feedback process and replacing it with:

360 degree feedback

More and more companies are discarding the traditional superior-subordinate performance feedback process and replacing it with: Critical incidences review Management by walking around (MBWA) 360-degree feedback All of the above

360-degree feedback

Your project exceeded costs in the past caused by an underestimation of resource costs in the cost baseline: PV: $1,200,000 EV: $1,000,000 AC: $1,200,000 You expect the underestimation to influence the future as much as it did in the past. If the value of the remaining work (BAC - EV) is at $1,000,000, what should be your new EAC (estimate at completion)?108 o $1,800,000 o $2,000,000 o $2,200,000 o $2,400,000

4. $2,400,000

You identified a technical risk in your project and assigned a contingency for that. Planning contingency reserves is part of which risk response strategy?77 o Active risk mitigation o Passive risk avoidance o Passive risk acceptance o Active risk acceptance

4. Active risk acceptance

When finishing a project, which factors that influence customer satisfaction the most should you be aware of? 106 o Attractive price of the project and low running costs of the product o Friendly project manager and effective after-project service o Efficiency of the project and skills of the project manager o Conformance to requirements of the project and fitness for use of the deliverables

4. Conformance to requirements of the project and fitness for use of the deliverables

A review of your project team member's most recent performance reports shows a major drop in output. Which is the best approach to raise team productivity in a project?115 o Increase the frequency of team review meetings and status reports. o Increase the pressure on each team member to adhere to deadlines. o Post a special reward for the best performing team member. o Improve feelings of trust and cohesiveness among team members.

4. Improve feelings of trust and cohesiveness among team members.

_______ is normally not a method of RoI (return on investment) analysis.121 o Net present value projection o Sunk cost analysis o Simple payback calculation o Internal rate of return

4. Internal rate of return

An organization is considering various contract types in order to motivate sellers and to ensure preferential treatment. What should they consider before deciding to use an award fee contract? 83 o Payment of an award fee would be linked to the achievement of objective performance criteria. o Any unresolved dispute over the payment of an award fee would be subject to remedy in court. o Payment of an award fee would be agreed upon by both the customer and the contractor. o Payment of an award fee is decided upon by the customer based on the degree of satisfaction.

4. Payment of an award fee is decided upon by the customer based on the degree of satisfaction.

During execution of a project, you observe that the performance of some of your team members is dropping, while others are doing a consistently good job. This is endangering overall project progress. What should you try first to bring the team as a whole back to performance?66 o Organize a team meeting and discuss openly the bad performance of the weak team members. Try to find a joint solution during the meeting. o Introduce a competitive incentive system with a bonus for the 20% of your team which is performing better than the other 80%. o Do not interfere, but give the team some time to organize and to sort the problem out themselves. o Research causes for bad performance, solicit systematic feedback and search for solutions based on that.

4. Research causes for bad performance, solicit systematic feedback and search for solutions based on that.

During planning processes, you used Monte Carlo simulation to quantitatively assess cost and schedule risks of your project. During risk control, you repeat the technique, and it leads to different results. What should not be the reason for that?101 o Some assumptions during planning have meanwhile become fact-based knowledge, so that the risks related to them have vanished or have become certain problems. o New risks may have been identified. These influence the input data used for Monte Carlo simulation in a way which was not predictable at the time when the simulation was run. o Some constraints have been identified originally, but their influence on the project was unclear when the simulation was run for the first time. By now, the team understands these constraints much better and has been able to adjust the simulation. o Some dummy activities in the network logic have an element of uncertainty, which gets bigger over time. While the project proceeds, it gets even harder to predict how the team members assigned to them will perform.

4. Some dummy activities in the network logic have an element of uncertainty, which gets bigger over time. While the project proceeds, it gets even harder to predict how the team members assigned to them will perform.

During project planning, you are presented with the following diagram that depicts a cumulative likelihood distribution for the duration of a project: What kind of conclusion can you draw from the information depicted in it? 73 o The likeliness that the project will finish exactly at the date marked with "Deadline" is 80%. o The likeliness that the project team will exceed the date marked with "Deadline" is at 80%. o If the project team will meet the deadline, project costs will be 80% of the budgeted costs. o The likeliness that the project team will meet the deadline or will finish earlier is at 80%.

4. The likeliness that the project team will meet the deadline or will finish earlier is at 80%.

A project manager reported the following earned value data: PV: $12,400,000 EV: $14,500,000 AC: $14,500,000 What does this mean?112 o The project is over budget and on schedule. o The project is under budget and on schedule o The project is on budget, but behind schedule. o The project is on budget and ahead of schedule

4. The project is on budget and ahead of schedule

_______ are not necessarily used to establish the cost baseline of a project.85 o Schedule activity or work package cost estimates o The work breakdown structure and the WBS dictionary o The project schedule and the resource management plan o The risk breakdown structure and the risk report

4. The risk breakdown structure and the risk report

Which is not a goal in both project management and quality management? 97 o Prevention over inspection o Customer satisfaction o Management responsibility o Triple constraint

4. Triple Constraint

A company's product line consists of 40 percent Product A, 40 percent Product B, and 20 percent Product C. The aggregate plan calls for total production that averages 1,100 units per quarter. Quarter 1 production will be 800 units, quarter 2 production will be 1,400 units, and quarter 3 production will be 1,200 units. How many units of Product A will be produced in quarter 4?

400 units

The balanced scorecard model differs from selection models by reviewing projects over:

5-10 years

A design engineer wants to construct a sample mean chart for controlling the service life of a halogen headlamp his company produces. He knows from numerous previous samples that this service life is normally distributed with a mean of 500 hours and a standard deviation of 20 hours. On three recent production batches, he tested service life on random samples of four headlamps, with these results: Sample Service Life (hours) 1 495 500 505 500 2 525 515 505 515 3 470 480 460 470 What is the sample mean service life for sample 2?

515 hours

How much time does the typical project manager spend communicating both formally and informally? 40-60% 50-70% 60-80% 75-90%

75-90%

A job with a 70 percent learning curve required 20 hours for the initial unit. The fourth unit should require approximately how many hours?

9.8 hours The time for the 4th unit would be 20 x .7 x .7

Which of the follow percentages is the authors' estimate of project-driven organizations that have been implementing some form of oversight for several years?

95%

As a project manager you have successfully delivered all project deliverables within stipulated timelines - your senior management wants you to calculate the Cost of Quality - as a project Manager what costs would you NOT consider while making this calculation? A. Cost of Hiring B. Prevention costs C. Appraisal costs E. External and InternalFailure costs

A Cost of Hiring All of the above are correct - except option A - since Hiring Costs have nothing to do with Cost of Quality.

Project offices are known to result in positive benefits such as:

A bridge between senior management and project managers, Support integration of all project management processes, Training to support a higher level of project management maturity

An expected output over the life of a project would be classified as

A deliverable.

The implications of an identified change need to be assessed by: The primary project stakeholder The Chief Financial Officer A person with expertise related to the change The authorizing project manager

A person with expertise related to the change

A written or pictorial document that describes, defines, or specifies the services or items to be procured is

A specification document

A written or pictorial document that describes, defines, or specifies the services or items to be procured is: A specification document A Gantt chart A blueprint A risk management plan

A specification document

What is the meaning of the acronym CSOW

A statement of work that has been formally agreed upon by both parties and is therefore part of a Contract

What is the meaning of the acronym CSOW A statement of work that is part of a contingency plan; it is commonly linked with Contingency reserves. A statement of work that has been formally agreed upon by both parties and is therefore part of a Contract. A statement of work that is currently valid; this contrasts with the scope baseline, a formerly valid SOW. A statement of work on project level that cumulates statements of work on cost account level.

A statement of work that have formally agreed upon by both parties and it therefore part of a contract

The typical mechanism for evaluation of teams is normally: A survey completed by team members An analysis by an outside consultant A survey completed by members of top management A survey completed by the internal or external customer

A surgery completed by team members

The typical mechanism for evaluation of teams is normally:

A survey completed by team members

The lowest element in the hierarchical breakdown of the WBS is

A work package.

The traits of successful managers include all of the following except: A)Pessimist B)Proactive C)Skillful politician D)Effective time management E)Personal integrity

A)Pessimist

Which is an appropriate order in most project situations for the development of scope-related documents? A. 1. Project SOW (statement of work), 2. Project charter, 3. Project scope management plan, 4. Project scope statement, 5. WBS (work breakdown structure) and WBS dictionary. B. 1. Work breakdown structure, 2. Scope statement, 3. Project charter, 4. CSOW (contractual statement of work), 5. Contractual work breakdown structure C. 1. Feasibility study 3. Contract, 4. CWBS (contractual work breakdown structure), 5. Scope of work descriptions, 6. PID (project initiation document). D. 1. BOM (Bill of materials), 2. CAP (control account plan), 3. Project charter 4. Change management plan, 5. Scope baseline.

A. 1. Project SOW (statement of work), 2. Project charter, 3. Project scope management plan, 4. Project scope statement, 5. WBS (work breakdown structure) and WBS dictionary.

You want to perform active risk acceptance. What should you do? A. Create contingency reserves in resources, money and time. B. Develop a plan to minimize impact in case that an identified risk occurs. C. Develop a plan to minimize the probability of occurrence for identified risks. D. Make additional resources available to speed up the project.

A. Create contingency reserves in resources, money and time.

You are performing earned value technique on your project. After budget approval, an additional and unexpected cost item has been identified, which made the project more expensive some weeks ago. The item has meanwhile been paid by the project team, and it is expected that for the remaining duration of the project, costs will be as budgeted. In this case, which is the best formula to calculate EaC (Estimate at Completion)? A. EaC = BaC - CV B. EaC = BaC / CPI C. EaC = AC + BtC / CV D. You can not compute the EaC.

A. EaC = BaC - CV

You are the manager of your company's project management office. The company is running many concurrent projects; most of them share a resource pool of technical staff. Understanding how resources are utilized across projects has been found essential to overall project performance, including cost effectiveness and profitability. This morning you received a message that the resource pool members will be unable to perform as planned for the next months because the overall work load has grown too high and while delays are adding up, the morale of the staff is going down. What should you do next? A. Ensure that quantitative information for all projects is made available in a uniform and reliable fashion and verify that the project management methodology is adhered to. Then consolidate the information to get an understanding of the problems related with the use of shared resources. B. Implement an enterprise project management software solution which is able to level the human resources across the various projects and which has the capability to model resource assignment on a percentage level thus optimizing resource utilization for the overall organization. C. Do nothing related to the described problem unless you are explicitly requested by the organizations upper management. Supporting decision making on the level on which project portfolio management is done, is not the project management office's business. D. Evaluate project management software which supports planning and scheduling across enterprise-wide project portfolios. Avoid managing the availability of shared enterprise resources for the projects run by an organization because this is not the business of a project management office.

A. Ensure that quantitative information for all projects is made available in a uniform and reliable fashion and verify that the project management methodology is adhered to. Then consolidate the information to get an understanding of the problems related with the use of shared resources.

A project management team has subcontracted work to a service company. Which of the following tools is the best choice to assure that this company will be able to meet the quality requirements of the project? A. Quality audit B. Deliverable inspection C. Fixed price contract D. Service level agreement

A. Quality audit

A review to determine whether of project activities comply with organizational and project policies, processes, and procedures is commonly called A. Quality auditing B. Inspection C. Quality testing D. Reject screening

A. Quality auditing

What does the acronym RACI commonly stand for in project management? A. Responsible, Accountable, to be Consulted, to be Informed B. Remote, Attached, Connected, Integrated C. Risk Analysis and Caution Initiative D. Randomly Accessible Cashflow Information

A. Responsible, Accountable, to be Consulted, to be Informed

The scope baseline consists of what? A. Scope statement, WBS, and WBS dictionary B. Cost baseline, quality baseline and schedule baseline C. Configuration management plan and configuration identification document D. Procurement statement of work and project scope statement

A. Scope statement, WBS, and WBS dictionary

Network templates which contain only portions of a network are often referred to as A. Sub-networks or fragment networks B. Subprojects C. Programs D. WBS items

A. Sub-networks or fragment networks

During a company event, you had the opportunity to talk to a colleague project manager. He told you that in his current project actual costs are 15% under cumulated costs budgeted for today. What do you think? A. The information given to you by the colleague is not sufficient to assess project performance. B. The project will probably be completed with total costs remaining under budget until the end. C. A significant cost increase during the further course of the project will probably bring the costs back to baseline level. D. Original cost forecasting and budgeting for the project must have been poor to allow this variance.

A. The information given to you by the colleague is not sufficient to assess project performance.

A project is handled by departments of an organization and expedited by a project coordinator. Which of the following statements is most likely to be true? A. The performing organization is a weak matrix. B. The performing organization is doing "management by projects". C. The performing organization is a strong matrix. D. The performing organization is projectized.

A. The performing organization is a weak matrix.

You are project manager in a global project with a team consisting of people from various countries. What can you try to prevent misunderstandings due to cross-cultural differences? A. Use all communication methods available that are suitable for the team and follow up in writing when communicating verbally. Remember that cultural and individual diversity may help project teams solving unforeseen problems during the course of the project. B. When you are about to form a team for your project, keep in mind that some cultures are developed, others are more primitive. Some have values, some not. You should consequently avoid choosing members from countries with cultures that are not similar to your own. C. Cultural dilemmas can prevent any project from being successful. They should therefore be smoothed or suppressed so as to make sure that they cannot disrupt project work. Your effort should concentrate on communication that can help reach that goal. D. As norms regarding communication habits differ significantly across various cultures, communicating between people from different countries should only be done using language. The nonverbal dimension simply bears too many risks.

A. Use all communication methods available that are suitable for the team and follow up in writing when communicating verbally. Remember that cultural and individual diversity may help project teams solving unforeseen problems during the course of the project.

What is not the purpose of configuration control when configuration management is applied in a project? A. Verification that the configuration identification for a configuration item is accurate, complete, and will meet specified program needs. B. Ensuring that proposed and approved changes to configuration items are fully analyzed. C. Ensuring that proposed and approved changes to configuration items are fully documented. D. Managing and controlling the frequently requested changes to a project by applying agreed rules.

A. Verification that the configuration identification for a configuration item is accurate, complete, and will meet specified program needs.

Which of the following is generally not regarded to be a motivator according to Frederick Herzberg? A. Working conditions and interpersonal relations B. Responsibility for enlarged task C. Interest in the task D. Recognition for achievement

A. Working conditions and interpersonal relations

When you recover from your sense of psychological disorientation and begin to function and communicate, you are in which of the following stages of culture shock?

Adaptation

When you recover from your sense of psychological disorientation and begin to function and communicate, you are in which of the following stages of culture shock? Honeymoon Gradual adjustment Irritability and hostility Adaptation

Adaptation

Groups such as human resource, information systems, purchasing agents, and maintenance are typically classified as: A) Project managers B) Administrative support C) Functional managers D) Project sponsors E) Customers

Administrative support

Groups such as human resources, information systems, purchasing agents, and maintenance are typically classified as:

Administrative support

Which is not part of the team portion of the wrap-up closure checklist? -Has a schedule for reducing project staff been developed and accepted? -Has staff been offered outplacement services and career counseling activities? -Have performance reviews for team members been conducted? -Has staff been released or notified of new assignments? -All are included.

All are included

All of the following are usually included in a work package EXCEPT

All of these are included in a work package.

Which of the following is typically the responsibility of a project manager?

All of these are typical responsibilities

In order to formulate strategies that align with the mission the organization will need to

All of these should be considered when formulating strategies.

You are in charge of building a shopping portal. You are fairly confident as you have a team experience in doing such work. As per the agreement at the ened of the first month you organize a demonstration of the software. You invite the sponsor and key stakeholders. Later the sponsor informs you that she is not very happy with the progress, indicating that one of the clients who would be using this software is not satisfied as her needs are not being met. To satisfy this client's needs would mean some radical changes with an impact to both cost and schedule. What could be the root cause of this issue? Deliverables were not as per requirement The stakeholder is making unrealistic demands The scope statement was ambiguous leading to this All stakeholders were not identified

All the stakeholders were not identified While the other options are 'possible,' this is the only choice that is certain

Project scope is: All the work that must be done in order to deliver a product according to the specified features and functions, only. The features and functions that are to be included in a product or service. A narrative description of work to be performed under contract. All of the above

All the work that must be done in order to deliver a product according to the specified features and functions, only.

All of the following are ways the WBS helps in managing projects EXCEPT

Allows the project manager to establish the overall objective of the project.

What are ambassador activities

Ambassador activities are aimed at representing the team to others and protecting the team from interference. The project manager typically takes on this responsibility, which involves buffering the team from political pressures and building support.

"To construct a high-quality, custom home within five months at costs not to exceed $150,000" is best classified as

An objective.

Lean Design Overview

Analytical process focused on part count reduction, quality and labor costs, optimum early is design but is effective throughout life cycle

You are managing a project that your company won after making a bid. The clients have negotiated long and hard and have driven a hard bargain. The project is schedule to span over eight months and you are in your fifth month of execution. You are extremely worried since you have about four more months of work remaining and the project is at the "Point of total assumption" - what does this mean? As a seller you are running behind schedule As a seller you are ahead of schedule The project is going to have a cost overrun which will need to be negotiated with the client As a sellter all subsequent costs will have to be borne by the sellter

As a seller all subsequent costs will have to be borne by the seller Reason: "Point of assumption" is the point at which the seller has consumed all the fees and will now bear the costs. All the scheduling information in this question is extraneous

Quality assurance include(s)

Assisting in implementing a quality management process Conducting quality audits Identifying process improvement areas Creating process training material

Quality assurance includes: Assisting in implementing a quality management process Conducting quality audits Identifying process improvement areas Creating process training material All of the above

Assisting in implementing a quality management process Conducting quality audits Identifying process improvement areas Creating process training material

Uncommitted inventory is called:

Available-to-promise inventory

An output of the process Estimate activity resources is a document called "activity resource requirements". It identifies the types and quantities of resources... A. ...while the term resources is limited to equipment and materials. B. ...required for each activity in a work package. C. ...while the term resources is limited to human resources. D. ...to be obtained solely from the performing organization.

B. ...required for each activity in a work package.

Which of the following statement(s) on whistleblowing is/are not true? 1. It is a term used to define an employee's decision to disclose information on unethical, immoral or illegal actions at work to an authority figure. 2. An employee should always discuss the matter with people external to the company before following the "chain of command" and discuss it with the immediate superior. 3. The consequences of whistleblowing are often extreme and might include being branded as an owner of bad judgment, layoff, civil action and imprisonment. 4. Carefully performed whistleblowing can lead to the end of unethical business practices. A. 1 B. 2 C. 2,3 D. 3,4

B. 2

Which statement describes best the meaning of the term cost baseline? A. A cost baseline is always created by translating time-phased cost information into cost data on activity or work-package level. B. A cost baseline is an approved time-phased budget that will be used to measure and monitor cost performance on the project. C. Data to draw a cost baseline can be easily generated and updated as necessary from information related to actual project cost. D. A cost baseline is usually displayed in the form of an inverse S-curve drawn from the beginning of the project until data date.

B. A cost baseline is an approved time-phased budget that will be used to measure and monitor cost performance on the project.

What is a constructive change? A. A change request that helps improving the project and its product, service or result and is discussed generally in a friendly style. B. A direction by the buyer or an action taken by the seller that the other party considers an undocumented change to the contract. C. A field change or ad-hoc change mandated by the project customer in a public construction project. D. A change request which will lead to the re-construction of an older version of the project performance baseline by the contractor.

B. A direction by the buyer or an action taken by the seller that the other party considers an undocumented change to the contract.

A project management team wants to procure some customized products which are available in identical grade and quality from many vendors. What should be included in the procurement package to ensure that their offers will be comparable? A. A statement of work describing the needs of the project in sufficient detail to enable vendors to make suitable proposals B. A statement of work specifying attributes and metrics of the requested deliverables in detail to allow vendors submission of bids C. The approved project scope statement, the WBS which should be broken down to work package level and the WBS dictionary D. The risk management plan and the reports from those risk management reviews which have been made so far

B. A statement of work specifying attributes and metrics of the requested deliverables in detail to allow vendors submission of bids

What is a trigger in project risk management? A. An expected situation causing an unidentified risk to occur B. A warning sign that a previously identified risk might be occurring or has occurred C. An unexpected situation causing an identified risk to occur D. An unexpected situation causing an unidentified risk to occur

B. A warning sign that a previously identified risk might be occurring or has occurred

Which statement describes best why you should document assumptions? A. Assumptions might prove to be wrong. Knowing which assumptions were incorrect allows baseline adjustments in case of project crisis. B. Assumption analysis is a valuable tool and technique to explore the validity of assumptions during risk identification. C. Assumptions limit the project management team's options for decision making because they can not be controlled by the team. D. In case of schedule or budget overruns, the documentation of assumptions supports a clear assignment of responsibility.

B. Assumption analysis is a valuable tool and technique to explore the validity of assumptions during risk identification.

Which of the following becomes increasingly important in a virtual team environment? A. Requirements engineering B. Communication planning C. Formal procurements closure D. Network diagramming

B. Communication planning

Which statement on conflicts is true? A. Conflict resolution should focus on people, not issues. B. Conflict is natural and forces a search for alternatives. C. Conflict should always be handled in private and not in the team. D. Too much openness is a common cause of conflict.

B. Conflict is natural and forces a search for alternatives.

________ is typically not referred to as a buffer type in critical chain project management. A. Resource buffer B. Free buffer C. Feeding buffer D. Project buffer

B. Free buffer

Which of the following statements describes best the relationship between project phases and the project life cycle? A. The project life cycle includes the time when the project is performed and the expected product lifespan after that. B. In project management, the sequence of project phases and phase gates is often referred to as project life cycle. C. The project life cycle is regarded as a sequence of project activities while phases are defined to control overlapping activities. D. The project life cycle describes how iterations of project management processes are used when a project schedule is developed.

B. In project management, the sequence of project phases and phase gates is often referred to as project life cycle.

Which should be included in a requirements management plan? A. The document should trace requirements to project scope / WBS deliverables. B. It should describe how requirements activities will be planned, tracked, and reported. C. It should trace high-level requirements to more detailed requirements. D. It should trace requirements to business needs, opportunities, goals, and objectives.

B. It should describe how requirements activities will be planned, tracked, and reported.

Which is normally not regarded as an element of cost of quality? A. Prevention costs B. Maintenance cost C. Appraisal costs D. Failure costs

B. Maintenance cost

The project manager develops a process improvement plan to encourage continuous process improvement during the life of the project. Which of the following is a valid tool or technique to assist the project manager to assure the success of the process improvement plan? A. Change control system B. Process analysis C. Benchmarking D. Configuration management system

B. Process analysis

A project management team is evaluating the causes that might contribute to unsatisfactory performance and quality. Which of the following statements is not true? A. Normal process variation is attributable to random causes and sometimes also called "white noise". B. Special causes are easier to predict and handle than random causes (also called common causes). C. Special causes are unusual events which are difficult to foresee and often produce outliers. D. A process can be optimized to limit the bandwidth of variations due to random causes.

B. Special causes are easier to predict and handle than random causes (also called common causes).

You are performing a project management audit in your company and find that most of the project plans are neither consistent nor up-to-date. Which of the following statements is not true? A. Projects should never be executed without a valid, updated and working project management plan. B. The consistency of the project management plan is secondary because it is only the results that matter. C. A great deal of effort is required to develop and update a project plan, but the benefits include less pressure on all stakeholders and a resulting product that will satisfy the requirements. D. Poor planning and insufficient updating of project management plans are common reasons for cost and time overruns.

B. The consistency of the project management plan is secondary because it is only the results that matter.

You have been asked to calculate the internal rate of return (IRR) of a project? What will you assess? A. The time period needed to pay back the investment from a project when future income is discounted. B. The inherent discount rate or investment yield rate produced by the project's deliverables over a pre-defined period of time. C. The rate of negative risk that can be accepted for a project without turning the expected net present value negative. D. The expected benefit from a project's deliverable calculated as a percentage of the original investment over a specified time period.

B. The inherent discount rate or investment yield rate produced by the project's deliverables over a pre-defined period of time.

What is true for prototypes? A. Prototyping causes significant costs and should be avoided wherever possible. B. They are tangible and allow for early feedback on requirements by stakeholders. C. Prototypes are mostly developed toward the end of a design or build phase. D. Prototypes increase the risk of misunderstandings between developers and users.

B. They are tangible and allow for early feedback on requirements by stakeholders.

Organizational culture is best explained as organizational

Beliefs, assumptions, and values

A project selection process that is strongly linked to strategy results in

Better utilization of the organization's resources.

What is true for modern project management? Project managers need... A. ... to have a strict standing in negotiating B. ... to show experience in tricking business partners C. ... to be team players and facilitators instead of "bosses" D. ... to be strongly linked to local traditions

C. ... to be team players and facilitators instead of "bosses"

A project sponsor requested earned value data on two concurrent projects from the project managers. Both projects are regarded as equally important and strategically beneficial and have been finished by over 80%. He received the following information: Project A: PV: $1,800,000 EV: $2,300,000 AC: $2,100,000 Project B: PV: $2,000,000 EV: $1,500,000 AC: $1,600,000 The sponsor considers to shift some resources from project A to project B to speed up the second project which is currently behind schedule. What is the most likely outcome of such a measure? A. Changing team assignments during late course of a project typically increases cost efficiency. B. Changing team assignments during late course of a project typically increases time efficiency. C. According to the law of diminishing returns, the consolidated cost variance of the two projects will decrease. D. According to the law of diminishing returns, the consolidated cost variance of the two projects will increase.

C. According to the law of diminishing returns, the consolidated cost variance of the two projects will decrease.

You have used estimates made by your team members and applied the critical path method to compute a network logic diagram for your project. Then you found out that it cannot be sufficiently optimized for scarce resources and fast progress towards a given deadline. What should you do next? A. Apply resource leveling heuristics to uncritical activities only. B. Reduce estimates on duration and work efforts by an adequate percentage. C. Apply Three-point estimation and critical chain project management. D. Remove physical constraints and replace hard logic with soft logic.

C. Apply Three-point estimation and critical chain project management.

You are assigned as the project manager to a project which is executed for a customer under FP contract. Your customer informed you this morning that they insist on certain "refinements" of the project scope. You agree that the requested actions make really sense to the project, but believe that they constitute a major change increasing the project scope. What should you do next? A. Accept the request of the customer. Diligently document the additional costs and working hours spent by yourself and the team on the implementation of the change and invoice these to the customer at appropriate rates. B. Perform earned value analysis to assess the current status of the project and get all the numbers you need to communicate the case to the change control board which then will have to make the best decision regarding the customer request. C. Check the contract, the project charter, the scope statement and other documents related to the project and the contract. Implement ADR (alternative dispute resolution) procedures if the conflict cannot be resolved otherwise. D. Talk to the project sales department and find a joint solution with them how to best reject the request considering the commercial and strategic value of the customer to the organization you are working for.

C. Check the contract, the project charter, the scope statement and other documents related to the project and the contract. Implement ADR (alternative dispute resolution) procedures if the conflict cannot be resolved otherwise.

What is the meaning of a concept called the "Journey to Abilene"? A. Project managers should visit their customers far more often than what is usual in order to avoid misunderstandings and bad emotions. B. International projects may have an increased need for traveling which can lead to additional costs and troubles with time zones. C. Committee decisions can have the paradox outcome, that a jointly made or approved decision is not desired by any individual group member. D. A project is a temporary endeavor undertaken to create a unique product, service or result. Repeating it would be similar to making the same journey twice.

C. Committee decisions can have the paradox outcome, that a jointly made or approved decision is not desired by any individual group member.

You have recently been assigned as a project manager to a new B-O-T (build, operate, transfer) capital project. Reviewing the initial documentation you found out that it has been calculated with a very small margin during operations of its product for the shareholders. What should you do? A. As you are not responsible for lifecycle costing, you don't have to worry about operation profits. Focus on project costs from initiation through handover. B. Ensure maximum profits by buying the best and cheapest items, components and modules―potentially from a big number of different suppliers―and integrating them. C. Create a realistic plan broken down to a sufficient level of detail. Perform all risk management processes. Ensure real-time communications with all stakeholders. D. Try to get a second project manager assigned to share decision making and accountability to shareholders with the person.

C. Create a realistic plan broken down to a sufficient level of detail. Perform all risk management processes. Ensure real-time communications with all stakeholders.

Which of the following is true regarding the code of accounts? A. It allows one to easily identify the breakdown level of the item in the resource structure. B. It describes the coding structure used by the performing organization to report financial information in its general ledger. C. It is the collection of unique identifiers generally assigned to WBS items. D. It defines ethical behavior in the project and the responsibilities to the customer and the profession.

C. It is the collection of unique identifiers generally assigned to WBS items.

A change request in a project has been rejected some weeks ago. Yesterday, the project manager found out that it nevertheless has been implemented by the team members, who knew of the change request, but not of the rejection. In order to avoid such a situation, rejected change requests should be consistently communicated to stakeholders through which process? A. Report performance B. Verify scope C. Perform integrated change control D. Monitor and control risks

C. Perform integrated change control

When do bidder conferences normally take place? A. After the contract has been awarded to keep alternatives open. B. After submission of bid or proposal, but before contract award. C. Prior to the submission of a bid or proposal by the bidder. D. After technical meetings with bidders to discuss contract requirements.

C. Prior to the submission of a bid or proposal by the bidder.

In a software company a large number of simultaneously performed projects utilize the same groups of human and other resources. What is the term commonly used for this situation? A. Concurrent engineering B. Resource over-allocation C. Resource pooling D. Program management

C. Resource pooling

The project manager meets with the project team to review lessons learned from previous projects. In what activity is the team involved? A. Performance management B. Scope identification C. Risk identification D. Project team status meeting

C. Risk identification

What is defined by control limits? A. A measuring instrument solely used to describe process capability. The process is found capable if the ±3 sigma range is exceeded by not more than 0.3% of a tested sample lot. B. The limits of the six sigma area on either side of a control chart to plot measured values; data found outside the area are out of specification and can lead to rejection of an entire batch. C. The area consisting of typically three standard deviations on either side of a mean value of a control chart to plot measured values found in statistical quality control D. The area consisting of typically three standard deviations on either side of a mean value of a control chart to plot measured values found in quality assurance

C. The area consisting of typically three standard deviations on either side of a mean value of a control chart to plot measured values found in statistical quality control

Which of the following statements is not true? A. Attribute sampling is the process of assessing whether results conform to specifications or not. B. Prevention means keeping errors out of the process by applying actions before the process starts changing its input. C. Variables sampling means that the result is classified into one of the 3 categories: "acceptable" - "acceptable after rework" - "rejected". D. Inspection is often mainly done to keep errors out of the hands of the customer instead of as a means of process control.

C. Variables sampling means that the result is classified into one of the 3 categories: "acceptable" - "acceptable after rework" - "rejected".

According to the project plan, a contractor is scheduled to deliver some software components today afternoon. A regular payment is due to be made to this contractor tomorrow. You and your project team received a note this morning informing you that the software delivery will be delayed by 2 weeks. What should you do right now? A. You should delay the payment also for 2 weeks. B. You must immediately find a different contractor. C. You should conduct a meeting with the contractor to resolve the delivery issues before making the payment. D. You should make the payment and reschedule the project plan.

C. You should conduct a meeting with the contractor to resolve the delivery issues before making the payment.

In a traditionally drawn decision tree, a circle represents ___________. A. a chance to which no expected monetary value can be assigned so that a likely pay-off can not be shown. B. a decision to which no expected monetary value can be assigned so that a likely pay-off can not be shown. C. a chance to which an expected monetary value may be assigned to calculate the most likely pay-off. D. a decision to which an expected monetary value may be assigned to calculate the most likely pay-off.

C. a chance to which an expected monetary value may be assigned to calculate the most likely pay-off.

Which is NOT a Non-financial criteria?

Calculating the project ROI (Return on Investment).

Examples of nonfinancial criteria include all of the following EXCEPT

Calculating the time it will take to recover the project investment.

Once production is underway and the learning curve effect is occurring, successive changes made to the production process will cause the time per unit to

Cause a scallop effect which is when the learning curve resets after the changes in the process

_______________ is a formal document where the requester sets out the change required to the system? Change request form Change assessment Change cost Change control board

Change request form

The usual moderator for your company's weekly project review meeting is on vacation and you have been asked to facilitate the meeting in in his absence. While compiling the project reporting data to go into the master status report that is submitted to the executive team, you discover there are several projects that are reporting a negative CV, but the master report shows these as a positive. What is the BEST thing to do? Change the status report to show accurate status and report the discrepancies to the appropriate management. Ask the regular moderator about the discrepancies when he returns. Change the report to show accurate status. File a complaint with PMI

Change the status report to show accurate status and report the discrepancies to the appropriate management.

The significance of personal relationships has created a system in which Mexicans are obligated to give preference to relatives and friends when hiring, contracting, procuring, and sharing business opportunities. This system is referred to as:

Compadre

Project success or failure often depends upon the contributions of all the following except: A) Customers B) Suppliers C) Contractors D) Competitors E) Top Management

Competitors

The most common circumstance for project closure is simply a _________ project.

Completed

In conducting meetings, an effective project manager will take the role of a:

Conductor

CCB stands for .. Configuration (Change) Control Board Change Control Baseline Cumulative Changes in Baseline None of the above

Configuration (Change) Control Board

You are in the middle of a new product development project for your publicly traded company when you discover the previous project manager made a $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?

Contact your manager

While agile project management does not consist of one set method, most methods are based on similar principles. Which of the following agile project management principles would be described when teams reflect, learn, and adapt to change, and when project work updates the plan? Focus on customer value Iterative and incremental delivery Experimentation and adaptation Self-organization Continuous improvement

Continuous improvement

Closing out ________ is often messy and filled with untied ends.

Contracts

A tool that depicts process variation graphically is a(n)

Control Chart Control charts depict process variation.

Group brainstorming encourages all of the following except: Team building A project manager facilitates communication Analysis of alternatives Convergent thinking Uninhibited verbalization

Convergent thinking

Lean Design workshop phases

Create a baseline analysis, brainstorm, create redesigns, leadership report out

Project Management Office functions typically include:

Create and maintain the internal project management information system, recruit and select project managers, train personnel in project management techniques

Four performance goals measured in the scorecard model:

Customer, internal, financial measure, innovation and learning

Under which heading of the Wrap-up closure checklist should the question 'Has an in-depth project review and evaluation interview with the customer been conducted?' be answered Team Vendors/contractors Customers/users Equipment and facilities

Customer/users

The second ring in the network of relationships for project managers includes all of the following except A) Other project managers B) Customers C) Functional managers D) Top management E) Project sponsors

Customers

Which group of stakeholders defines the scope of the project and ultimately determines whether or not the project is successful?

Customers

Project success or failure often depends upon the contributions of:

Customers, suppliers, contractors, top management (NOT competitors)

Under which heading of the Wrap-up closure checklist should the question "Has an in-depth project review and evaluation interview with the customer been conducted?" be answered.

Customers/users

36. Which of the following is not a benefit of the integrative approach to project management? a. Provides an overview of all project management activities b. Provides the big picture of how organizational resources are used c. Provides a linkage to actual project management execution d. Provides a focus on an individual project progression e. Provides an assessment of the portfolio of projects

D Full insight of all components of the organization is crucial for aligning internal business resources with the requirements of the changing environment. Integration enables management to have greater flexibility and better control of all project management activities.

You have been assigned as a project manager to a software project. While you and your team are working on a WBS (work breakdown structure), estimations for activity durations based on the activity list vary significantly. Which additional documents may help you clarify this situation? A. Milestone list and scope baseline. B. Project schedule network diagrams and human resource plan. C. Activity cost estimates and scope baseline. D. Activity attributes and project scope statement.

D. Activity attributes and project scope statement.

A prime contractor in a customer project under CPFF contract has run into unexpected technical problems. Fixing them will require a lot of additional work to be done. The company made a decision to book more staff and equipment from their subcontractors in order to adhere to the agreed timeline. The customer agreed to this decision. What will most likely happen? A. The contractor's indirect costs will increase and the customer's payment for them will increase, too. B. The contractor's indirect costs will increase, but the customer's payment for them will not increase. C. The contractor's indirect costs will not increase, but the customer's payment for them will. D. Both the contractor's indirect costs and the customer's payment for them will not increase.

D. Both the contractor's indirect costs and the customer's payment for them will not increase.

Your project is executed with a globally spread virtual team. The project progress has been found to be too slow. Which measure is most likely to immediately speed up the project? A. Technical training for all team members B. Daily phone conferences and detailed reporting C. A team meeting at a location convenient to all team members D. Collocation of team members at a suitable place

D. Collocation of team members at a suitable place

An accepted deadline for a project approaches. However, the project manager realizes only 75% percent of the work has been completed. The project manager then issues a change request. What should the change request authorize? A. Additional resources using the contingency fund B. Escalation approval to use contingency funding C. Team overtime to meet schedule D. Corrective action based on causes

D. Corrective action based on causes

Which tool and technique is used in the processes Create WBS and Define activities? A. Nominal group technique B. Human resource assignment C. Brainstorming D. Decomposition

D. Decomposition

What should not be covered by a risk management plan? A. Roles and responsibilities for handling project risks B. Timing of project risk management activities C. The methodological approach used for risk management D. Individual risks and potential responses to them

D. Individual risks and potential responses to them

You are the project manager in an engineering project and have recently signed a contract with a software vendor for the development of a complicated control solution. The software will be used to control machinery equipment which your project team is currently developing. The contract is a lump-sum contract. The contractor has target cost estimated which seem rather low to you. Which of the following statements is not true for this situation? A. It is the contractor's risk in this type of contract that their profit may vanish if costs have been underestimated. B. This form of contract should only be chosen when all the requirements for the building of the product are well-known by all parties involved. C. In a fixed-price contract, change requests can cause issues regarding additional time and extra costs for the changes to be applied. D. It is likely that your organization may have to assume any unexpected additional costs for the software development.

D. It is likely that your organization may have to assume any unexpected additional costs for the software development.

Which is not true in regard of RoI (return on investment) for a project? A. It defines the cumulated net income from an investment at a given point in time or during a defined period. B. It includes investment, direct and indirect costs and may include allowances for capital cost, depreciation, risk of loss, and/or inflation. C. It is most commonly stated as a percentage of the investment or as a dimensionless index figure. D. It is the time when cumulated net income is equal to the investment.

D. It is the time when cumulated net income is equal to the investment.

Which of the following statements describes best the relationship of quality and grade? A. Low grade is always a problem; low quality may be overcome by a good rework and repair process. B. Grade is a category or rank given to entities having different functional requirements but the same need for quality. C. Both quality and grade can often be improved through intelligent measuring, testing and examining. D. Low quality is always a problem as it bears on the ability of an item to meet requirements; low grade may sometimes be acceptable.

D. Low quality is always a problem as it bears on the ability of an item to meet requirements; low grade may sometimes be acceptable.

You have been criticized that certain specifications in your scope statement do not pass the test for SMART objectives. What are SMART objectives? A. Objectives specified in far more detail than necessary for a execution of a successful project. B. Easily achievable objectives which help you reducing the pressure on yourself and the team. C. Objectives that should be achieved in order to attain formal recognition by both the customer and the project sponsor. D. Objectives that are described using specific, measurable, assignable, realistic and time-related specifications.

D. Objectives that are described using specific, measurable, assignable, realistic and time-related specifications.

An estimation has been made that the construction of a residential home will cost a certain amount per square foot of living area. This is an example of what type of estimating? A. Analogous estimating B. Bottom-up estimating C. Top-down estimating D. Parametric estimating

D. Parametric estimating

During execution of a project which is performed for a customer on a T&M (time and material) contract base, a new project manager is taking over the assignment. He discovers that two members assigned to the project have charged time without performing any work for the project customer. Upon further investigation, he determines that this occurred because there have been no other project assignments open for these employees. The customer is unaware of these facts. What should the project manager do? A. Try to find some productive work for these staff members in the project and leave them on the team. B. The best thing is to do nothing. The customer will not realize the problem anyway. C. Try to find a responsible person for the over-assignment who can be made accountable. D. Take the two people off the team immediately and arrange for the refund of the excess charges to the customer.

D. Take the two people off the team immediately and arrange for the refund of the excess charges to the customer.

What is the S-curve in project management? A. A graph that is generated if a normal curve is integrated. B. A graph that is to be integrated to generate a normal curve. C. A metaphoric description of the short term uncertainties that are present in every project. D. The graph that describes the typical growth of earned value during the course of the project.

D. The graph that describes the typical growth of earned value during the course of the project.

The software company where you are a project manager is attempting to make a sale with a large manufacturing company. The sales team has learned that a competing company where you had worked as a project manager several years before is also trying to get this same business. The sales team is asking you to provide confidential information about your former employer's products and corporate operations in an attempt to get a leg up on the competition. What do you do?

Decline to provide the information.

Linda has just been assigned manager of a project to develop a new advertising campaign for an established product. Her first step should be to

Define the project scope

When considering traditional versus agile project management, all of the following are part of the agile project management model EXCEPT -Flexibility -High uncertainty -Embrace change -Design up front -Self-organized project teams

Design up front

All the following are responsibilities of a project manager EXCEPT: -Maintain the confidentiality of customer confidential information -Determine the legality of company procedures -Ensure that a conflict of interest does not compromise the legitimate interest of the customer -Provide accurate and truthful representations in cost estimates

Determine the legality of company procedures

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:

Develop options to meet the milestone date

Implementing closedown includes the following major activities except: Getting delivery acceptance from the customer. Shutting down resources and releasing new uses. Closing accounts and seeing all bills paid. Developing the WBS. Creating a final report.

Developing the WBS

A project manager discovers a defect in a deliverable that is 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 is the BEST course of action for the manager?

Discuss the issue with the customer

You've just completed a solid waste management project in an under-developed country. The contractor you are working for has a strict policy of abiding by local laws and rules, although the local resources working on the project have a much more lax approach to following laws and policies. Now at the end of the project, you are handing over the operational equipment to the local operators and disposing of the leftover inventory and other furniture which was used during the project. More than 50% of the toxic materials used during the project remains in your inventory. There is no law that would prohibit you from disposing of either the type or quantity of remaining materials in the local sewage system. What should you do?

Do not dispose of the materials improperly.

If a construction company in Dallas builds a bridge in Houston, the project would be classified as:

Domestic

Which of the following is not one of the aspects of leading by example? A)Priorities B)Ethics C)Urgency D)Cooperation E)Power

E) Power

Import quotas and tariffs, and education level of the workforce are examples of which of the following environmental factors?

Economic

Impact of lean design

Engineering has the greatest impact on product cost, consider the total life cycle cost before expensive material decisions are made, move affordability and producibility into the innovation window

Projects should align with the organization's overall strategy in order to

Ensure effective and efficient use of scarce resources.

The most important criteria in deciding to initiate a project selection method is: Stakeholder's vision Low cost opportunity Environmental consideration Capability

Environmental consideration

In the ________ stage of the project life cycle, a major portion of the physical project work performed.

Executing

Which of the following is not one of the growth levels in the Organizational Project Maturity Model (OPM3TM)?

Expanded

In the Snapshot from Practice "Managing Expectations", one of the key aspects to project success was stated to be the managing of stakeholder:

Expectations (All stakeholders have expectations about the schedule, cost, and project benefits. Project managers need to listen for, understand, and manage these expectations)

While agile project management does not consist of one set method, most methods are based on similar principles. Which of the following agile project management principles would be described when testing assumptions early and building working prototypes to solicit customer feedback and refine product requirements? Focus on customer value Iterative and incremental delivery Experimentation and adaptation Self-organization Continuous improvement

Experimentation and adaptation

A learning percentage of 95 percent indicates greater learning than a percentage of 90 percent

F

For an 80 percent learning curve, if the first unit requires 10 hours, the second unit will require 8 hours and the third 6.4 hours

F

If an 80 percent curve is appropriate for a task and the first unit takes 10 hours, the average time for the first two units would be eight hours

F

Learning curves are used primarily for mass production applications

F

T/F 'Ambassador' activities as defined by Ancona and Caldwell, are aimed at going out from the team to bring back information about what is going on elsewhere in the organization

F

T/F 'Guard' activities, as defined by Ancona and Caldwell, are aimed at representing the project team to others and protecting the team from interference

F

T/F Character alone will engender trust

F

T/F Good time management for project manager includes initiating contact with ket stakeholders only when there is a valid issue to deal with.

F

T/F In Scrum methodology, it is important to make sure roles and titles are clear when developing a team.

F

T/F Once an engineering work product becomes a baseline it cannot be changed again

F

T/F Position-related currencies include: vision, excellence, and ethical correctness

F

The decrease in time between the second and fourth units will be equal to the decrease in time between the first and second units

F

The dimensions of quality are important for products but are not applicable in service organizations

F

The learning curve is a basic tool for mass production-type activities because it can deal with large volumes of output

F

An organization achieves quality by consistently meeting its competitors' standards

F An organization achieves quality by meeting or exceeding customer expectations.

Regardless of superior quality, consumers will not pay premium prices

F Customer will often pay premium process for superior quality

If the majority of service customers are satisfied, it is likely that all service customers will be satisfied

F Different customers tend to have different expectations.

The Baldrige award can only be won by manufacturing organizations

F It can and has been won by service organizations.

Modern quality management emphasizes finding and correcting mistakes before they reach the customer—catching the errors before they are shipped

F Modern quality management emphasizes avoiding mistakes before they ever happen.

The degree to which a product or service satisfies its intended purpose is determined by design, conformance to design, cost, and reputation of the producer

F Neither cost nor reputation influences this

Broadly defined, quality refers to the ability of a product or service to occasionally meet or exceed customer expectations

F Quality refers to consistently meeting or exceeding customer expectations.

Cost of inspectors, testing, test equipment, and labs are examples of prevention costs

F These are appraisal costs

A process that exhibits random variability would be judged to be out of control

FALSE

A c-chart is used to monitor the total number of defectives in the output of a process.

FALSE A c-chart is used to monitor the number of defects per unit, not defective units.

Aggregate planning is capacity planning that typically covers a time horizon of one to three months

FALSE Aggregate planning covers the mid-term, typically two to 12 months.

Approximately 99.7 percent of sample means will fall within plus or minus two standard deviations of the process mean if the processes under control

FALSE Approximately 99.7% of sample means will fall within three standard deviations of the process mean.

The assignment of work to specific machines and people are examples of aggregate planning

FALSE Assigning work to specific machines or people is an example of detailed scheduling

Processes that are in control eliminate variations

FALSE In control, processes are free of non-random variation

Range charts and p-charts are both used for variable data

FALSE P-charts are used with attribute data.

Range charts are used mainly with attribute data

FALSE Range charts are used with variable data.

Statistical process control is the measurement of rejects in the final product

FALSE SPC is the evaluation of the process

T/F "Ambassador" activities, as defined by Ancona and Caldwell, are aimed at going out from the team to bring back information about what is going on elsewhere in the organization.

False

T/F "Guard" activities, as defined by Ancona and Caldwell, are aimed at representing the project team to others and protecting the team from interference.

False

T/F Good time management for project managers includes initiating contact with key stakeholders only when there is a valid issue to deal with.

False

T/F Position-related currencies include: vision, excellence, and ethical correctness.

False

The primary purpose of statistical process control is to detect a defective product before it is shipped to a customer

False ( The primary purpose of SPC is to detect nonrandomness. )

T/F Character alone will engender trust.

False (Character alone will not engender trust. We must also have confidence in the competency of individuals before we really trust them. We all know well-intended managers whom we like but do not trust because they have a history of coming up short on their promises. Although we may befriend these managers, we don't like to work with or for them.)

Forms of stress related culture shock:

Fatigue, sleeplessness, headaches (NOT hyperactivity)

Fixed Price Incentive Fee Calculation. In this fixed price incentive fee contract, the target cost is estimated at $9,000,000 and the target fee is $850,000. The project is over, and the buyer has that the costs were, in fact, $8,000,000. Because the seller's cost came in lower than the estimated costs, the seller shares in the savings: 70% to the buyer and 30% to the seller. The ceiling price is $12,500,000. Calculate the final fee and final price.

Fee $1,150,000 Price: $9,150,000

Cost Plus Incentive Fee Calculation. In this cost plus incentive fee contract, the cost is estimated at $210,000 and the fee at $25,000. The project is complete, and the buyer has agreed that the costs were, in fact, $200,000. Because the seller's costs came in lower than the estimated costs, the seller shares in the savings: 80% to the buyer and 20% to the seller. Calculate the final fee and final price.

Fee $27,000 Price: $227,000

Project selection criteria are typically classified as

Financial and nonfinancial.

A control chart shows seven data points in a row on one side of the mean. What should be done

Find an assignable cause

A control chart shows seven data points in a row on one side of the mean. What should be done?

Find an assignable cause

A control chart shows seven data points in a row on one side of the mean. What should be done? Perform a design of experiments Adjust the chart to reflect the mean Find an assignable cause Nothing. This is the rule of seven and can be ignored.

Find assignable cause

Which of the following is NOT one of the characteristics of effective objectives?

Flexible

If IBM built a computer system for Outback Barbie Inc. (based in Australia) at their corporate headquarters in Sydney, the project would be classified as:

Foreign

The first appearance of standard approaches to managing projects including scope statements and WBS occurs in which of the following Maturity Model Levels?

Formal application of project management

Developing our Lemon version 1.0 smart phone our minimum requirements are, it must be able to be used for calling, texting and taking pictures. These types of requirements are considered....

Functional

The structure that manages projects within the existing organizational structure is ________ organization.

Functional

In organizations where projects are managed within a ________, the team member's area manager, not the project manager, is primarily responsible for assessing performance.

Functional organization

In the organization where projects are managed within a _____________, the team members area manager, not the project manager, is primarily responsible for assessing performance Functional organization Strong matrix organization Project organization All of the above

Functional organization

Implementing closedown includes the following major activities

Getting a delivery acceptance from the customer, shutting down resources and releasing new uses, closing accounts and seeing all bills paid, creating a final report (NOT developing the WBS)

McDonald's is creating a multinational distribution system for all of its foreign and domestic subsidiaries. The project manager is from the corporate headquarters and he manages teams from each of the countries involved. The project would be classified as:

Global

Which of the following groups of stakeholders place constraints on project work such as requiring permits to be secured, that work is built to code, or that safety standards are met?

Government agencies

Releasing the project team typically occurs _________ during the closure phase.

Gradually

What are guard activities?

Guard activities differ from the other activities in that they are intended to keep information and resources inside the team, preventing drainage out of the group. A key guard activity is keeping necessary information secret until it is appropriate to share it.

What's part of the team portion of the wrap-up closure checklist

Has a schedule for reducing project staff been developed and accepted? Has staff been offered outplacement services and career counseling activities? Have performance reviews for team members been conducted? Has staff been released or notified of new assignments?

Which of the following is not one of the forms that stress-related culture shock takes? Fatigue Sleeplessness Headaches Hyperactivity

Hyperactivity

Acceptance sampling, when it is used, is used (I) before production (II) during production (III) after production.

I and III only Acceptance sampling is used to assess inputs to and outputs from a process.

Aggregate planning requires which of the following information? (I) a forecast of expected demand (II) current levels of inventory (III) policies regarding employment levels

I, II, and III

A plot below the lower control limit on the range chart (I) should be ignored since lower variation is desirable. (II) may be an indication that process variation has decreased. (III) should be investigated for assignable cause.

II and III Plots outside of control limits should be investigated

You know the success of your project will be determined by how well you manage risks. You know that identifying risks upfront can help you be better prepared with risk response strategies. You discuss and consult with other project managers in the company. One manager suggests usage of SWOT to identify risks. What would you do next as a part of this technique? Gather team members and experts together and discuss to identify risks Gather anonymous responses from experts and identify risks Perform root cause analysis to identify problems, their cause and potential responses Identify the organizations strengths and weaknesses

Identify the organizations strengths and weaknesses SWOT is specific to organizational weaknesses, which is the only risk tool specifically mentioned in this question

Quality assurance includes:

Identifying objectives and standards, conducting quality audits, planning for continuous collection of data

What is the purpose of control limits

Identifying whether the process is in control or not

What is the purpose of control limits?

Identifying whether the process is in control or not

What is the purpose of control limits? dentifying "rule of seven" patterns in control charts. Increasing process quality from 3σ to 6σ Specifying the range of acceptable results Identifying whether the process is in control or not

Identifying whether the process is in control or not

During which of the following phase gates would the question "Are the resources needed identified and available?" be answered?

Implementation

You are halfway through a major network rollout. There are 300 locations in the United States with 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, which was not available at the time the project began. What is the BEST course of action under these circumstances?

Inform the customer of the upgrade and the impacts to the project's timeline and functionality if the upgrade is implemented

Needs for a project could include telecommunications, transportation, power, and availability of technically skilled talent. This is an example of which of the following environmental factors?

Infrastructure

Which of the following represents the correct order of stages within the project life cycle (PMI Process Groups)?

Initiation, Planning, Executing, Monitoring & Controlling, Closing

A vendor on your project has been lax about formally documenting contract discussions that have taken place, contrary to project processes that require full documentation of discussions and changes as well as sign off on the documentation by both parties. The account representative for that vendor says he prefers to handle everything informally and that he is fine with just a phone call to authorize changes to the contract. What is the BEST thing to do?

Insist hat the vendor follow all project processes and report the situation to project stakeholders

In terms of commonly trade organization currencies, vision, excellence, and ethical correctness are part of ______ related currencies A) Task B) Position C) Inspiration D) Relationship E) Personal

Inspiration

In terms of commonly traded organizational currencies, vision, excellence, and ethical correctness are part of ______ related currencies.

Inspiration

The use of an organization-wide project management system tailored to specific needs of the organization is established in which of the following Maturity Model Levels?

Institutionalization of project management

When you begin to lose confidence in your abilities to communicate and work effectively in the different culture, you are in which of the following stages of culture shock?

Irritability and hostility

When you begin to lose confidence in your abilities to communicate and work effectively in the different culture, you are in which of the following stages of culture shock? Honeymoon Gradual adjustment Irritability and hostility Adaptation

Irritability and hostility

The stages of culture shock include

Irritability and hostility, honeymoon, adaptation (NOT repatriation)

As the project manager, you are preparing your quality management plan. You are looking for a tool that can demonstrate the relationship between event and their resulting effects. You want to use this tool to depict the events that cause negative effect on quality. Which of the following is the BEST choice for accomplishing your objective?

Ishikawa (Fishbone) diagram

You are looking for a tool that can demonstrate the relationship between event and their resulting effects. You want to use this tool to depict the events that cause negative effects on quality. Which is the best choice?

Ishikawa (Fishbone) diagram

As the project manager, you are preparing your quality management plan. You are looking for a tool that can demonstrate the relationship between event and their resulting effects. You want to use this tool to depict the events that cause negative effect on quality. Which of the following is the BEST choice for accomplishing your objective? Histogram Pareto chart Ishikawa (Fishbone) diagram Control chart

Ishikawa (fishbone) diagram

Which of the following explains why quality is planned in and not inspected in

It improves quality and is less expensive

Which of the following explains why quality is planned in and not inspected in? It reduces quality and is less expensive. It improves quality and is more expensive. It reduces quality and is more expensive It improves quality and is less expensive.

It improves quality and is less expensive

Which of the following explains why quality is planned in and not inspected in?

It improves quality and is less expensive.

Once signed, a contract is legally biding unless: One party is unwilling to perform One party is unable to finance its part of the work It is violation of applicable law It is declared null and void by either party's legal counsel

It is violation of applicable law

Once signed, a contract is legally binding unless

It is violation of applicable law

Which of the following is NOT true regarding scope creep?

It is when the cost of the project is more than expected.

What is the BEST use of the Work Authorization System? It manages the timing and sequence of when activities need to be performed It manages who performs the activity It identifies the resources needed to complete activities It is used for comparing actual work against the baselines

It manages the timing and sequence of when activities need to be performed It defines how work will be authorized and how work will be done at the right time and in the right sequence

The process has high precision but low accuracy. The process has high accuracy but low precision.

It should be adjusted. It should be improved

What is Lean?

Lean is a manufacturing philosophy that recognizes WASTE as the primary driver of cycle time, cost, and quality, and employs techniques to continually drive out the waste in processes.

Concern about the local restrictions on toxic waste is classified as which of the following environmental factors?

Legal/political

The section of the final project report that new teams often find most useful is the: Analysis Classification of project Lessons learned Strategic objectives

Lessons Learned

The section of the final project report that new teams often find most useful is the:

Lessons learned

The content of the final report typically includes the following topics: Lessons learned Review and analysis Recommendations Executive summary All of the above

Lessons learned Review and analysis Recommendations Executive summary

The content of the final report typically includes the following topics:

Lessons learned, review and analysis, recommendations, executive summary

A written preliminary contractual instrument prepared prior to the issuance of a definitive contract that authorizes the contractor to begin work immediately, within limitations, is known as

Letter of contract/Letter of intent

In the Snapshot from Practice "Project Management X-files," a key success factor which is held in much higher regard by cultures outside the U.S. is:

Luck

Which of the following is used at Hewlett-Packard for building relationships with key players that will determine a project's success? A) MBO B) MBA C) GIGO D) MBWA E) PMI

MBWA

Which of the following is used at Hewlett-Packard for building relationships with key players that will determine a project's success?

MBWA (A management style employees at Hewlett-Packard refer to as "management by wandering around" (MBWA) to reflect that managers spend the majority of their time outside their offices. MBWA is somewhat of a misnomer in that there is a purpose/pattern behind the "wandering." Through face-to-face interactions, project managers are able to stay in touch with what is really going on in the project and build cooperation essential to project success)

A project has a tight budget when you begin negotiating 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?

Make a good faith effort to find a way to decrease the cost

Which of the following is not a General management technique? Make-or-buy analysis Analysis of alternatives Applying PMBOK concepts Lateral thinking

Make-or-buy analysis

Which of the following activities occurs during the Plan Procurements process?

Make-or-buy decisions

Which of the following activities occurs during the Plan Procurements process? Make-or-buy decisions Answering sellers' questions about the bid documents Advertising Proposal Evaluation

Make-or-buy decisions

Project audits are performed on all significant projects and lessons learned are recorded and used on subsequent projects occurs in which of the following Maturity Model Levels?

Management of project management system

The development of a system for managing multiple projects that are aligned with strategic goals is established in which of the following Maturity Model Levels?

Management of project management system

Which configuration objects would not typically be found in the project database? a. Design specifications b. Marketing data c. Organizational structure d. Test plans Both b & c

Marketing data & Organizational Structure

In reviewing the project plan, Susan sees that the first prototype must be completed by October 12. This would be best classified as a

Milestone.

Mathew is a Project Manager for software migration at a bank. A major risk that has been identified is attrition of resources. As a strategy to respond to this risk, Mathew, with support from Senior Management, provides good increments to his team members. What type of risk response is Mathew following? Accept Avoid Transfer Mitigate

Mitigate

A quality analyst wants to construct a sample mean chart for controlling a packaging process. He knows from past experience that whenever this process is under control, package weight is normally distributed with a mean of 20 ounces and a standard deviation of 2 ounces. Each day last week, he randomly selected four packages and weighed each: Day WEIGHT (ounces) Monday 23 22 23 24 Tuesday 23 21 19 21 Wednesday 20 19 20 21 Thursday 18 19 20 19 Friday 18 20 22 20 If he uses upper and lower control limits of 22 and 18 ounces, on what day(s), if any, does this process appear to be out of control?

Monday

In the ________ stage of the project life cycle you are more likely to find status reports, changes, and the creation of forecasts.

Monitoring and controlling

Increasing volumes result in ___________ the learning curve.

Moving down

The ________ financial model measures the current value of all cash inflows using management's minimum desired rate of return.

NPV

Given the following process control data for a normally distributed quality variable (three samples of size four each): M#1: 15, 14, 15, 12 M#2: 18, 16, 20, 16 M#3: 16, 17, 16, 17 If the process is known to have a mean of 15 and a standard deviation of 3, using three-sigma control limits, do any of the sample means indicate an out-of-control process mean?

No

The following chart depicts 16 sample means that were taken at periodic intervals and plotted on a control chart. Does the output appear to be random?

No

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 the resources and circumvent the standard procedure. Is this the correct process to follow?

No. The procurement manager has a process to follow when creating contracts that helps protect the company and its projects

Developing our Lemon version 1.0 smart phone our minimum requirements are, it must be able to be able to upload data at 3M per/sec and take clear pictures using 700DPI. These types of requirements are considered....

Non-functional/Performance

Which of the following is NOT a main phase in Configuration Management (CM) Process? -CM planning -Executing the CM process -CM audits -None of the above

None of the above

During a project status meeting, a new project manager has reported that there is a two week delay in acquiring a key resource for a task on the critical path in her project. She also states that she has built 3 weeks of float into the project schedule. What do you do?

Notify appropriate management that the new project manager has made a scheduling error that could cause an impact to the project outcome.

What is one of the KEY objectives during contract negotiations?

Obtain a fair and reasonable price

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

Obtain a fair and reasonable price

An informal culture that values improvement drives the organization, not policies and procedures occurs in which of the following Maturity Model Levels?

Optimization of project management system

The focus is on continuous improvement through incremental advancements of existing practices and by innovations using new technologies and methods is established in which of the following Maturity Model Levels?

Optimization of project management system

Typical activities of project oversight cover ___________ dimension(s)

Organization and project

The second ring in the network of relationships for project managers includes:

Other project managers, functional managers, top management, project sponsors (NOT customers)

If the Lincoln Log Construction Co. (based in Chicago) built an assembly plant for General Motors in Nigeria, the project would be classified as:

Overseas

The term that is used to reflect how organizations oversee their project management systems is:

Oversight

A professional organization for project management specialists is the

PMI

102. The __________, a professional organization for project managers, has grown from 93 000 in 2002 to more than 700 000 today.

PMI Explanation: The Project Management Institute (PMI) is a professional organization for project managers.

92. The __________, a professional organization for project managers, has grown from 93 000 in 2002 to more than 700 000 today.

PMI Explanation: The Project Management Institute (PMI) is a professional organization for project managers.

A run chart is useful to show

Patterns and trends in a row of data points

A large complex construction project in a foreign country requires coordination to move needed 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?

Pay the fee

During project executing, a project team member informs the project manager that a work package has not met the quality metric, and that she believes it is not possible to meet it. The project manager meets with all parties concerned to analyze the situation. Which part of the quality management process is the project manager involved in? Perform Quality Assurance Project Control Perform Quality Control Plan Quality

Perform Quality Control

During which stage of Risk planning are modeling techniques used to determine overall effects of risks on project objectives for high probability, high impact risks? Identify Risks Plan Risk responses Perform Qualitative risk analysis Perform Quantitative risk analysis

Perform Quantitative risk analysis

During project executing, a project team member informs the project manager that a work package has not met the quality metric, and that she believes it is not possible to meet it. The project manager meets with all parties concerned to analyze the situation. Which part of the quality management process is the project manager involved in?

Perform quality control

Which part of the quality management process is the project manager involved in?

Perform quality control

This type of closure occurs when the project may never seem to end. This is considered to be ________ closure.

Perpetual

This type of closure occurs when the project may never seem to end. This is considered to be __________ closure Normal Premature Perpetual Changed priority Failed project

Perpetual

Potential results for the international project manager include:

Personal risk, absence from home, missed career opportunities, adverse conditions

The in-depth review of individual projects at specific phases in the project life cycle is known as:

Phase gate methodology

Five of the processes in Project Risk Management are from which process group? Initiating Planning Executing Monitoring and Control

Planning

In the ________ stage of What is a Project? the project's schedule and budget will be determined.

Planning

Projects are usually classified into all but one of the following categories. Which one is NOT one of the typical classifications?

Political necessity

The centralized management of projects to ensure that the allocation of resources to projects is directed toward projects that contribute the greatest value to organization goals is known as:

Portfolio project management

When the project may be completed early with some parts of the project eliminated that is considered to be ___________ closure Normal Premature Perpetual Changed priority Failed project

Premature

When the project may be completed early with some parts of the project eliminated this is considered to be ________ closure.

Premature

You are in charge of managing a software development project which is related to simulations for driving racing cars.In one of your team meetings - it has been reported that a lot of issues have been reported in the air tunnel modelling module.On deeper analysis - it is found that many of the issues could have been prevented had a simple code review checklist been used. You decide to mandate usage of the code review checklist for all subsequent deliveries to ensure other deliveries are less issue prone. This is a good example of: Corrective Action Preventative Action Defect Repair Quality Control

Preventative Action Reasoning: The question emphasizes "...for all subsequent deliveries..." The earlier information is not relevant to the actual question asked.

What are the cost types in modern quality management?

Prevention costs - appraisal costs - failure costs

What are the cost types in modern quality management?

Prevention costs-appraisal costs- failure costs

What are the cost types in modern quality management? Costs of good quality - costs of bad quality Planning costs - assurance costs - control costs Planning costs - doing costs - checking costs - acting costs Prevention costs - appraisal costs - failure costs

Prevention costs-appraisal costs-failure costs

You are defining evaluation criteria for your project. The procurement item is readily available from a number of acceptable sellers. Which criterion can you focus on in such a situation?

Price offered by the seller

You are defining evaluation criteria for your project. The procurement item is readily available from a number of acceptable sellers. Which criterion can you focus on in such a situation? Seller's management approach Price offered by the seller Seller's financial capacity Understanding of your need

Price offered by the seller

Aspects of leading by example include:

Priorities, ethics, urgency, cooperation (NOT power)

Traits of successful project managers include:

Proactive, skillful politician, effective time management, personal integrity (NOT pessimist)

Root Cause Analysis relates to: Process Analysis Quality Audits Quality Control Measurements Performance Measurements

Process Analysis

_______________ begins with a review of the strategic intent of the project, selection criteria, project charter, project objectives, project scope and acceptance criteria Project Overview Process Review Analysis Directing

Process Review

__________ begins with a review of the strategic intent of the project, selection criteria, project charter, project objectives, project scope, and acceptance criteria.

Process review

The _________ is the customer's prioritized list of key features desired when the project is completed Project master Spirit backlog Creative backlog Product backlog Project list

Product backlog

Scrum relies on three key roles. A person who acts on behalf of customers to represent their interests and who is responsible for ensuring that the development team focuses their efforts on developing a project that will fulfill the business objective of the project is called a... Customer service representative Project champion Customer liaison Product owner Production coordinator

Product owner

Scrum ceremony outputs

Product planning - prioritized product backlog Sprint planning I - stories for the sprint Sprint planning II - sprint backlog Daily scrum - updated task board, burndown Sprint review - product owner/stakeholder understanding Sprint retrospective - feedback, teaming

Scrum ceremony meeting names:

Product planning, sprint planning I, sprint planning II, daily scrum, sprint review, sprint retrospective

Which of the following activities is NOT considered a project?

Production of basketballs

One of the primary jobs of a project manager is to manage the trade-offs associated with the project. Which of the following is NOT one of the basic classifications of project priorities?

Profit

What is not a wrap-up close activity? -Facilities -Vendors -Customers -Profit report

Profit report

What is not a wrap-up closure activity?

Profit report

A series of coordinated, related, multiple projects that continue over an extended time period and are intended to achieve a goal is known as a

Program.

During which of the following phase gates would the question "Are time, costs, and scope performances within acceptable limits?" be answered?

Progress

PMP

Project Management Professional

The critical element in a project's communication system is the: Progress report Project directive Project manager Customer

Project manager

One who endorses and lends political support for the completion of a specific project is known as the

Project sponsor.

A project team that operates with a full-time project manager as a separate unit from the rest of the organization is structured using ________ organization.

Projectized

During which of the following phase gates would the question "Does this project align with our strategic direction?" be answered?

Proposal

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 take?

Provide accurate and truthful representations in all project reports

You have been asked by your management to cut your project estimate by 10 percent after you gave them the original estimate. The scope of your 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?

Provide an accurate estimate of the actual costs and be able to support it

Lean Principles

Provide value as defined by the customer, identify and create value streams (from raw materials to finished product or service), making value flow without delays or inventory, pull production according to the customers demand (not push), striving for perfection

When configuration management is a formal activity the configuration audit is conducted by the.... Development (Design) team Quality assurance group Senior managers Testing specialists

Quality assurance group

Which of the following is true of modern quality management? Quality is defined by the customer Quality has become a competitive weapon Quality is now an integral part of strategic planning All are true

Quality is defined by the customer Quality has become a competitive weapon Quality is now an integral part of strategic planning

What is true of modern quality management?

Quality is defined by the customer, quality has become a competitive weapon, quality is now an integral part of strategic planning

The BLANK is a document which describes how the project management team will implement the performing organizations quality policy

Quality management plan

The ________ is a document which describes how the project management team will implement the performing organization's quality policy.

Quality management plan

The __________ is a document which describes how the project management team will implement the performing organization's quality policy Quality assurance plan Quality management plan Quality commitment Quality audit

Quality management plan

All of the following are examples of the cost nonconformance Rework Quality training Scrap Warranty costs

Quality training

Corrective actions that should take place (such as shifting to more resilient building material) would typically appear in the ________ section of the final project report.

Recommendations

Corrective actions that should take place(such as shifting to more resilient building material) would typically appear in the __________ section of the final project report Analysis Recommendations Lessons learned Strategic objectives

Recommendations

Which of the following is NOT considered to be a characteristic of a project?

Recurring Assignment

A tool that is not used for quality management is a

Redesign Redesigns aren't part of quality management.

`The stages of culture shock include all of the following except: Irritability and hostility Honeymoon Repatriation Adaptation

Repatriation

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 the project is running far behind schedule, and the project will probably take twice the originally estimated time by the previous project manager. However, the sponsor has been told the project is on schedule. What is the BEST course of action?

Report your assessment to the sponsor

___________ of lessons learned are designed to improve performance on current and future projects Retrospectives Corrective action plans Introspectives Culmination

Retrospectives

___________ of lessons learned are designed to improve performance on current and future projects.

Retrospectives

All of the following are examples of the cost of nonconformance

Rework, scrap, warranty costs (NOT quality training)

What is NOT part of the Triple Constraint

Risk

Which of the following statements is true about risks? When evaluating risks their impact should be considered, however probability of occurrence is not important. Risks if they happen always have negative impact and not positive. Risk register documents all the risks in detail. Risk response plan is another name for Risk Management Plan.

Risk register documents all the risks in detail.

What is the five why method used for

Root cause analysis

What is the five why's method used for? Root cause analysis Identification of random causes Identification of special causes Identification of causes of conflicts

Root cause analysis

What is the five whys method used for?

Root cause analysis

Trend Analysis is often performed using: Cause and Effect Diagram Control Charts Pareto Chart Run Chart Scatter Diagram

Run Chart

During the develop schedule process, the Project Manager may have to go through several iterations of the schedule before establishing the schedule baseline. All of the following are tools and techniques that may be used during this process: Critical Path Method, GERT, Resource Requirements Resource Leveling Heuristics, Mathematical Analysis, Calendars Schedule compression, Resource optimization techniques, Critical chain method GERT, PERT, Leads and Lags

Schedule compression, Resource optimization techniques, Critical chain method

Changes on a project are typically related to: Scope changes Improvement changes Implementing contingency plans All of the above are correct

Scope Changes Improvement Changes Implementing contingency plans

The tendency for the project deliverables to expand over time-usually by changing requirements, specifications, and priorities-is called

Scope creep.

During which of the following phase gates would the question "What are the project's ROI and/or non-financial benefits?" be answered?

Screening and selection

Scrum relies on three key roles. A person who facilitates the Scrum process and resolves impediments at the team and organizational level is called a.. Scrum master Project champion Scrum leader Product owner Production coordinator

Scrum master

As a response to the events of September 11, 2001, the moving of personnel, materials, and equipment across international borders has created border congestion with increased costs and time. This is an example of which of the following environmental factors?

Security

Major issues dealing with international project management include:

Selecting and training of personally for international projects, location of international expansion, environmental factors, challenge of working in a foreign culture (NOT foreign currency exchange rates)

While agile project management does not consist of one set method, most methods are based on similar principles. Which of the following agile project management principles would be described when team members decide among themselves who should do what and what should be done? Focus on customer value Iterative and incremental delivery Experimentation and adaptation Self-organization Continuous improvement

Self-organization

Culture is a concept that encompasses:

Shared norms, beliefs, values, customs (NOT economic level)

Why do project managers need to understand their organization's mission and strategy?

So they can make appropriate decisions, adjustments and be effective project advocates

In France, which of the following factors is considered much more important than in the U.S?

Social class

Scrum uses a series of coordinated meetings to manage the development process. Which of the following is held at the start of each sprint? During this meeting the product owner and development team negotiate which product backlog items the team will attempt during the next sprint Sprint planning meeting Release planning meeting Sprint review meeting Daily Scrum meeting Sprint retrospective meeting

Sprint planning meeting

When considering the agile project management process, at the end of each iteration Team members are released to work on other projects The Scrum master assigns daily tasks to team members Product owner determines whether or not the project is complete Stakeholders and customers review progress and reevaluate priorities The Scrum master can terminate the project

Stakeholders and customers review progress and reevaluate priorities

You have been asked by a relative to submit his resume for a job opening at the company where you work as a project manager. You know that this position will also be utilized as a resource on your project. What do you do?

Submit the resume and notify the appropriate management and stakeholders that you are a relative of the person.

According to learning curve theory, every doubling of total output will produce a constant percentage decrease in time per unit

T

An 80 percent learning curve means that with each doubling of repetitions there will be a 20 percent decrease in time per unit

T

Quality of design refers to the degree to which goods and services achieve the intent of the designers based on marketing and other information

T

T/F A successful project manager must build a cooperative, mutually beneficial network based on the age-old maxim ' quid pro quo'

T

T/F Agile project management does not satisfy top management's need for budget, scope, and schedule control.

T

T/F Change management systems involve reporting controlling and recording changes to the project baseline

T

T/F Configuration Management (CM) is needed to deliver product to the client

T

T/F In a survey of project managers, approximately 81 percent reported that they encounter ethical issues in their work

T

T/F Personal-related currencies include: challenge/learning, ownership/involvement and gratitude

T

T/F Scrum does not use any of the conventional project management tools like Gantt charts or network diagrams.

T

T/F The Configuration Management Plan describes the Configuration Management procedures and structures to be used on the project

T

T/F The first step to building a social network is identifying those on whom the project depend for success

T

T/F The goal of each sprint is to produce fully functional features.

T

T/F Traditional approaches to project management concentrate firmly on thorough planning up front.

T

When the task is fairly complex and has a longer duration, it will take a larger number of repetitions before improvement is observed

T

Six sigma programs have both management and technical components

T Both management and technical components are part of six sigma programs.

When considering service quality, convenience often is a major factor

T Convenience is often a major dimension of service quality.

Crosby's concept of "quality is free" means that it is less expensive to do it right initially than to do it over

T Crosby believes quality pays for itself

According to Deming, it is the systems that management puts into place that are primarily responsible for poor quality, not employees

T Deming focused on systems as determinants of quality.

The PDSA cycle forms the conceptual basis for continuous improvement

T It reflects some of the primary ideas behind continuous improvement

Medical malpractice claims are an example of how poor quality can affect an organization through liability

T Poor quality can have serious financial effects.

TQM expands the traditional view of quality beyond looking only at the quality of the final product or service to looking at the quality of every aspect of the process

T TQM focuses on what leads to the outcome rather than the outcome itself.

Serviceability, conformance, and reliability are dimensions of product quality

T These are common dimensions of product quality.

The degree to which a product or service satisfies its intended purpose is determined by service after delivery, ease of use, design, and conformance to design

T These are determinants of quality.

Reducing the variations in our product or service is an important key to perceived quality

T Variability reduction is a key means by which quality can be improved.

The primary difference between internal failures and external failures is time and place of discovery of the failure

T When the failure is discovered typically determines whether it is an internal or an external failure.

If a point on a control chart falls outside one of the control limits, this suggests that the process output is nonrandom and should be investigated

TRUE

Quality control is making sure that processes are performing in an acceptable manner.

TRUE

The output of a process may not conform to specifications even though the process may be statistically "in control."

TRUE A process can be free of non-random variation and still not meet specifications.

Patterns of data on a control chart suggest that the process may have nonrandom variation.

TRUE Ideally, the data on a control chart will have no pattern.

A p-chart is used to monitor the fraction of defectives in the output of a process.

TRUE P-charts involve the fraction of defectives.

A lower control limit must by definition be a value less than an upper control limit

TRUE The lower limit must be smaller than the upper limit

Ultimately the overriding factor in choosing a strategy in aggregate planning is overall cost

TRUE The task of aggregate planning is to strike a balance between demand and capacity at minimum cost.

The amount of inspection we choose can range from no inspection at all to inspecting each item numerous times

TRUE These are the extremes of inspection.

Disaggregating an aggregate plan leads to a master schedule

TRUE This is an output of the aggregate planning process.

Available-to-promise in the first week is equal to beginning inventory plus MPS quantity, if any, less committed customer orders before the next MPS quantity

TRUE This is the ATP calculation for the first week.

The goal of aggregate planning is to achieve a production plan that attempts to balance the organization's resources and meet expected demand

TRUE This is the goal of aggregate planning.

In terms of commonly traded organization currencies, resources, assistance, cooperation, and information are part of _________ related currencies A) Task B) Position C) Inspiration D) Relatonship E) Personal

Task

In terms of commonly traded organizational currencies, resources, assistance, cooperation, and information are part of ______ related currencies.

Task

The ability of a 911 emergency system to use systemic capabilities of the phone company's equipment to identify caller's phone number and location is considered to be a

Technical requirement.

Project

Temporary endeavor that creates a unique product or service

In dealing with the Chinese, it is important to realize that they:

Tend to be slow in formulating a plan

The "Order of Precedence" is

The document that specifies the order (priority) in which project documents will be used when it becomes necessary to resolve inconsistencies between project documents

The 'Order of Precedence' is: The order in which project tasks should be completed The relationship that project tasks have to one another The ordered list (by quality) of the screened vendors for a project deliverable The document that specifies the order (priority) in which project documents will be used when it becomes necessary to resolve inconsistencies between project documents

The document that specifies the order(priority) in which project document will be used when it become necessary to resolve inconsistencies between project documents

A job has an 80 percent learning curve. The second unit required 12 hours to complete. Approximately how many hours will be devoted to the first five units (including those already completed)?

The first unit was 12 divided by .8. The total time would be 15 x 3.738 56

A pareto chart helps focusing on

The minority of causes which create the majority of problems and defects

A Pareto chart helps focusing on

The minority of causes, which create the majority of problems and defects

You are in your third month of project execution which is expected to continue for a duration of 14 calendar months. Your sponsor has asked for a performance report. You decide to create an S curve. Based on the S curve you report your Actual Cost which is more than the Earned Value. Also the Planned Value is greater than the Earned Value. What would be the interpretation of the data? The project is over budget and behind schedule The project is on schedul and on budget The project is over budget but on schedule The project is on budget but behind schedule

The project is over budget and behind schedule Reasoning: EV/AC, EV<AC = over budget EV/PV, EV<PV = behind schedule

Who is ultimately responsible for quality management on the project The project engineer The project manager The quality manager The team member

The project manager

Who is ultimately responsible for quality management on the project?

The project manager

You are managing a project to design microprocessor control systems. The design work was estimated to complete in 3.5 months, with seven milestones. The sixth milestone is the prototype to be handed over to manufacturing. All milestones before prototyping have been completed ahead of schedule with 6th one being delayed for 4 months as the prototype has been sent back several times, due to conflicts between departments. You are now planning to hold a meeting to review the design specifications, and handle conflicts between design and manufacturing. Who is ultimately at fault?

The project manager

Regardless of the criteria differences among different types of projects, the most important criterion for project selection is

The project's fit to the organization strategy.

The highest element in the hierarchical breakdown of the WBS is

The project.

You are managing a project to manufacture 3,000 fence posts for a customer. The customer has called you to refuse the first shipment of posts they received because the weight was more than defined in the contract. The increased weight will likely increase your customer's fuel costs to distribute them to their own customers. The customer is demanding the posts be re-manufactured. What do you tell your project stakeholders? Keeping shipping costs low were not a requirement for your project, so no rework was required. There was a failure in quality control processes. Nothing, you can cover the cost from the project contingency reserves. The contract should be renegotiated.

There was a failure in quality control processes. Nothing, you can cover the cost from the project contingency reserves.

Traditional approaches to project management concentrate firmly on Thorough planning up front New technology Flexibility Iterative development

Thorough planning up front

T/F A successful project manager must build a cooperative, mutually beneficial network based on the age-old maxim: "Quid pro quo."

True

T/F In a survey of project managers, approximately 81 percent reported that they encounter ethical issues in their work.

True

T/F Personal-related currencies include: challenge/learning, ownership/involvement, and gratitude.

True

T/F The first step to building a social network is identifying those on whom the project depends for success.

True

When managing stakeholders, a project manager should

Understand how different stakeholders can affect the project and manage that dependency.

Under which heading of the Wrap-up closure checklist should the question "Have project accounts been finalized and all billing closed?" be answered.

Vendors/contractors

Under which heading of the Wrap-up closure checklist should the question 'Have project accounts been finalized and all billing closed?' be answered Team Vendors/contractors Customers/users Facilities and facilities

Vendors/contractors

Which of the following is the correct order for the strategic management process?

Vision, strategies, goals, projects

Which are the three different matrix systems discussed in class (video)?

Weak, Strong, Balanced

How is project scope defined?

What you expect to deliver to your customer when the project is complete

While you have been preoccupied dealing with various cost overruns for the past week, a critical path item did not start on time, and you were not informed until it was several days late. What do you tell your project stakeholders?

You failed to control both cost and project execution.

53. Which of the following choices is not one of the stages of a project life cycle? a. Conceptualizing b. Defining c. Planning d. Executing e. Delivering

a See the list under The Project Life Cycle.

9. Which of the following choices is not one of the stages of a project life cycle? a. Conceptualizing b. Defining c. Planning d. Executing e. Delivering

a See the list under The Project Life Cycle.

10. A professional management professional (PMP) certification is offered by a. PMI b. AMA c. MIS d. IPM e. PMBOK

a The institute also offers Project Management Professional (PMP) and Certified Associate in Project Management (CAPM) certification.

20. A professional management professional (PMP) certification is offered by a. PMI b. AMA c. MIS d. IPM e. PMBOK

a The institute also offers Project Management Professional (PMP) and Certified Associate in Project Management (CAPM) certification.

5. Two dimensions within the project management process are a. technical and sociocultural b. cost and time c. planned and unexpected d. established and new e. unique and recurring

a There are two dimensions within the actual execution of projects (see Figure 1.3 The technical and sociocultural dimensions of the project management process).

48. Two dimensions within the project management process are a. technical and sociocultural b. cost and time c. planned and unexpected d. established and new e. unique and recurring

a There are two dimensions within the actual execution of projects (see Figure 1.3 The technical and sociocultural dimensions of the project management process).

A quality circle is

a voluntary group of employees

Dummy activities are used in: a) Activity on arrow diagram b) Activity decomposition c) Activity list d) Activity duration estimates

a) Activity on arrow diagram

Low-priority risks should be: a) Added to a watch list and the risk register updated b) Removed from the watch list c) Removed from the risk register d) Informed to the customer

a) Added to a watch list and the risk register updated

Noise is: a) Any interference that might compromise the delivery of the message b) False information c) Highest in bad weather d) None of the above

a) Any interference that might compromise the delivery of the message

Theory Y assumes employees: a) Are self-motivated b) Have to be micro-managed c) Work only for money d) Are not ambitious

a) Are self-motivated

The four strategies used to deal with positive threats are: a) Exploit, share, enhance, accept b) Exploit, share, enhance, adjust c) Exploit, simulate, enhance, accept d) Exploit, share, prototype, accept

a) Exploit, share, enhance, accept

Your construction project was damaged by an earthquake. Your contractor says that he cannot fulfil the terms of the contract due to a specific clause you both had signed in the contract. He is referring to the: a) Force majeure clause b) Fixed price clause c) Contract obligation terms d) None of the above

a) Force majeure clause

An average PM spends 50% of her time on: a) Meetings b) Issue resolution c) Managing stakeholders d) Risk analysis

a) Meetings

CPPC and fixed-price contracts are used in: a) PO with standard item b) PO with variable item c) Request for proposal d) Price-free contracts

a) PO with standard item

Scope management plan is an output of: a) Plan Scope management b) Define Scope c) Both a and b d) None of the above

a) Plan Scope management

Crosby's cost of quality theory of 'zero defects' is based on: a) Prevention b) Correction c) Conformance d) Fitness for use

a) Prevention

WBS is created in: a) Project Scope management b) Risk management process c) Planning process d) Monitor and control

a) Project Scope management

Develop Schedule produces the following output: a) Project schedule b) WBS c) Activity time d) Project plan

a) Project schedule

Some managers believe that people do not work willingly and must be watched and managed continuosly. They are of type: a) Theory X b) Theory Y c) Theory XY d) Theory V

a) Theory X

If a stakeholder has any questions about project deliverables, as the PM, you should direct him to the: a) WBS b) Project plan c) Preliminary Scope statement d) None of the above

a) WBS

In a fixed price contract, the risk: a) lies more with the seller b) lies more with the buyer c) is the same for seller and buyer d) Can't say

a) lies more with the seller

Which of the following best describes aggregate planning?

an attempt to respond to predicted demand within the constraints set by product, process, and location decisions

To which worker would learning curves be most applicable?

auto service mechanic

14. A series of coordinated, related projects that continue over an extended period of time intended to achieve a goal is known as a a. strategy b. program c. campaign d. crusade e. venture

b A program is a group of related projects designed to accomplish a common goal over an extended period of time.

60. A series of coordinated, related projects that continue over an extended period of time intended to achieve a goal is known as a a. strategy b. program c. campaign d. crusade e. venture

b A program is a group of related projects designed to accomplish a common goal over an extended period of time.

26. Which of the following characteristics is not typical of a project manager? a. Manages a temporary activity b. Possesses in-depth technical knowledge c. Manages a non-repetitive activity d. Manages independently of the formal organization e. Provides a direct link to the customer

b Increased competition has placed a premium on customer satisfaction. Customers no longer simply settle for generic products and services.

7. Which of the following characteristics is not typical of a project manager? a. Manages a temporary activity b. Possesses in-depth technical knowledge c. Manages a non-repetitive activity d. Manages independently of the formal organization e. Provides a direct link to the customer

b Increased competition has placed a premium on customer satisfaction. Customers no longer simply settle for generic products and services.

17. Which of these is not part of the 'sociocultural dimension' of project management? a. Negotiation b. Resource allocation c. Customer expectations d. Leadership e. Politics

b See Figure 1.3. The technical and sociocultural dimensions of the project management process.

27. Which of these is not part of the 'sociocultural dimension' of project management? a. Negotiation b. Resource allocation c. Customer expectations d. Leadership e. Politics

b See Figure 1.3. The technical and sociocultural dimensions of the project management process.

12. A major function of portfolio management is to a. encourage use of the latest tools b. oversee project selection c. oversee customer selection d. improve customer service e. improve project services

b See list under Integration of Projects through Portfolio Management.

24. Which of the following constraints is not typically found in managing projects? a. Time b. People c. Cost d. Performance e. Both B and D are not typical constraints

b Specific time, cost and performance requirements bind projects.

40. Which of the following constraints is not typically found in managing projects? a. Time b. People c. Cost d. Performance e. Both B and D are not typical constraints

b Specific time, cost and performance requirements bind projects.

33. In which of the following stages are project objectives established, teams formed and major responsibilities assigned? a. Conceptualizing b. Defining c. Planning d. Executing e. Delivering

b Specifications of the project are defined; project objectives are established; teams are formed; major responsibilities are assigned.

56. The waste on failed projects and cost overruns is estimated to be a. under $100 million b. over $150 billon c. under $10 billion d. between $90-100 billion e. between $125-135 billion

b The need for elevating performance continues to challenge the project management profession. The waste on failed projects and cost overruns is estimated to be more than $150 billion!

59. The waste on failed projects and cost overruns is estimated to be a. under $100 million b. over $150 billon c. under $10 billion d. between $90-100 billion e. between $125-135 billion

b The need for elevating performance continues to challenge the project management profession. The waste on failed projects and cost overruns is estimated to be more than $150 billion!

4. Which of the following is the number one characteristic that is looked for in management candidates? a. Overall intelligence b. Works well with others c. Experience d. Past successes e. Good references

b The phrase 'works well with others' has long been a sought-after industry requirement; now, in the IT world, it's the number 1 criterion for management candidates. (See Research Highlight: 'Works Well With Others'.)

43. Which of the following is the number one characteristic that is looked for in management candidates? a. Overall intelligence b. Works well with others c. Experience d. Past successes e. Good references

b The phrase 'works well with others' has long been a sought-after industry requirement; now, in the IT world, it's the number 1 criterion for management candidates. (See Research Highlight: 'Works Well With Others'.)

2. Corporate downsizing has increased the trend toward a. reducing the number of projects a company initiates b. outsourcing significant segments of project work c. using dedicated project teams d. shorter project lead times e. longer project lead times

b Companies outsource significant segments of project work, and project managers have to manage not only their own people but also their counterparts in different organizations.

58. Corporate downsizing has increased the trend toward a. reducing the number of projects a company initiates b. outsourcing significant segments of project work c. using dedicated project teams d. shorter project lead times e. longer project lead times

b Companies outsource significant segments of project work, and project managers have to manage not only their own people but also their counterparts in different organizations.

30. A major function of portfolio management is to a. encourage use of the latest tools b. oversee project selection c. oversee customer selection d. improve customer service e. improve project services

b See list under Integration of Projects through Portfolio Management.

32. In which of the following stages are project objectives established, teams formed and major responsibilities assigned? a. Conceptualizing b. Defining c. Planning d. Executing e. Delivering

b Specifications of the project are defined; project objectives are established; teams are formed; major responsibilities are assigned.

As a PM, you have identified some low priority risks. You should: a) Neglect them as they will mostly not occur b) Add them to a watch list within the risk register c) Plan detailed response plans d) None of the above

b) Add them to a watch list within the risk register

Your vendor has confirmed in writing that he will not be able to provide the products contracted to him, in the time mentioned in the contract. You can terminate the contract and sue for damages. This is a type of: a) Minor breach b) Anticipatory breach c) Material breach d) Fundamental breach

b) Anticipatory breach

A project you are managing is about to be completed. But there is a minor defect in the work produced by the contractor. You should: a) Neglect the defect if it is trivial b) Ask the contractor to fix according to SOW c) Submit a new RFP d) None of the above

b) Ask the contractor to fix according to SOW

'Variance at completion' can be calculated as: a) EAC-AC b) BAC-EAC c) Both a and b d) Neither a nor b

b) BAC-EAC

As a PM, you manage multiple projects. One of your projects is over budget while the other is under budget. You decide to transfer money from the latter to the former and report both projects as within budget. This is against the PMI code of ethics and is called: a) Unethical management b) Budget tampering c) Fraudulent reporting d) Cost leveling

b) Budget tampering

Project scope statement is the output of: a) Plan Scope b) Define scope c) Collect requirements d) None of the above

b) Define scope

Email communication is: a) Formal style, written b) Informal style, written c) Both a and b d) Neither a nor b

b) Informal style, written

When estimating time for activities, a PM should: a) Use the best guess and estimate for all activities as there will be changes anyways as the project progresses and more information becomes available b) Involve people who will be doing the work to get estimates c) Estimate for what the cost will allow and not include buffers d) None of the above

b) Involve people who will be doing the work to get estimates

92) Juran's fitness for use theory of cost of quality can be summarized as: a) Continuous improvement b) Making a product that meets or exceeds customer expectations c) Making a product that is easy to use d) Making a product with zero defects

b) Making a product that meets or exceeds customer expectations

When an individual's lower level needs are met, the next level's needs are his motivation. This forms the basis of: a) Theory Y b) Maslow's hierarchy c) Theory X d) None of the above

b) Maslow's hierarchy

To motivate your team, you decided to reward a team member who performed well. This hurt cohesion in the team. You should: a) Reset award criteria b) Modify reward strategy to be win-win for the team c) Award only two people d) Declare that there will be no rewards going forward

b) Modify reward strategy to be win-win for the team

'Scope' of project is: a) Any work committed to orally with customer b) Only work that has to be completed to successfully finish project c) Any work that customer requires to be completed d) Only work that can be completed within project duration

b) Only work that has to be completed to successfully finish project

One of your team members' A's father was sick when you were in the planning stage of your project. A had informed you that he might have to leave to visit his father if the situation arose. You had planned for this and spoke to the functional manager of your group to provide a back-up resource, B to be used if necessary. Now, A has left to see his father and B is filling in for him. But B is taking more than expected time to get up to speed and this impacts project cost and schedule. This is an example of a: a) Residual risk b) Secondary risk c) Contingency plan d) None of the above

b) Secondary risk

Residual risk is a risk: a) Found in reserve analysis b) That remains after all risk responses have been implemented c) That will be eliminated after applying the appropriate risk response d) None of the above

b) That remains after all risk responses have been implemented

If CPI=1.3, SPI=.8, what's the status of the project? a) Over budget and behind schedule b) Under budget and behind schedule c) Under budget and ahead of schedule d) Over budget and ahead of schedule

b) Under budget and behind schedule

In a time-materials contract, the possibility of a cost increase: a) lies more with the seller b) lies more with the buyer c) is the same for seller and buyer d) Can't say

b) lies more with the buyer

One option for altering the pattern of demand is:

back orders.

The process of identifying other organizations that are best at some facet of your operations, and then modeling your organization after them is known as

benchmarking

22. A common rule of thumb in the world of high-tech product development is that a six-month project delay can result in a loss of product revenue share of ___ per cent. a. 10 b. 20 c. 33 d. 45 e. 50

c A common rule of thumb in the world of high-tech product development is that a six-month project delay can result in a 33 per cent loss in product revenue share.

49. A common rule of thumb in the world of high-tech product development is that a six-month project delay can result in a loss of product revenue share of ___ per cent. a. 10 b. 20 c. 33 d. 45 e. 50

c A common rule of thumb in the world of high-tech product development is that a six-month project delay can result in a 33 per cent loss in product revenue share.

21. Which of the following is the first step in developing a set of strategies designed to best meet the needs of customers? a. Market research b. Define the integrated project management system c. Environmental analysis d. Project selection e. All of the answers are correct

c Project management is critical both to development of customized products and services and to sustaining lucrative relationships with customers.

38. Which of the following is the first step in developing a set of strategies designed to best meet the needs of customers? a. Market research b. Define the integrated project management system c. Environmental analysis d. Project selection e. All of the answers are correct

c Project management is critical both to development of customized products and services and to sustaining lucrative relationships with customers.

54. Which of these is not part of the 'technical dimension' of project management? a. WBS b. Budgets c. Problem solving d. Schedules e. Status reports

c See Figure 1.3. The technical and sociocultural dimensions of the project management process.

31. Which of these is not part of the 'technical dimension' of project management? a. WBS b. Budgets c. Problem solving d. Schedules e. Status reports

c See Figure 1.3. The technical and sociocultural dimensions of the project management process..

35. From among the following activities, which is the best example of a project? a. Attaching tags on a manufactured product b. Taking class notes c. Writing a new piano piece d. Responding to customer emails e. All of the answers are correct

c See Table 1.1 Comparison of routine work with projects.

50. From among the following activities, which is the best example of a project? a. Attaching tags on a manufactured product b. Taking class notes c. Writing a new piano piece d. Responding to customer emails e. All of the answers are correct

c See Table 1.1 Comparison of routine work with projects.

16. The advent of project management has been most profound in a. automobile manufacturing b. construction c. information technology d. departments of defense e. film making

c The impact of project management is most profound in the area of electronics industry, where the new folk heroes are young professionals whose Herculean efforts lead to the constant flow of new hardware and software products.

8. The advent of project management has been most profound in a. automobile manufacturing b. construction c. information technology d. departments of defense e. film making

c The impact of project management is most profound in the area of electronics industry, where the new folk heroes are young professionals whose Herculean efforts lead to the constant flow of new hardware and software products.

19. From among the following activities, which is the best example of a project? a. Processing insurance claims b. Producing automobiles c. Writing a semester paper d. Practicing scales on the piano e. All of the answers are correct

c See Table 1.1 Comparison of routine work with projects.

47. From among the following activities, which is the best example of a project? a. Processing insurance claims b. Producing automobiles c. Writing a semester paper d. Practicing scales on the piano e. All of the answers are correct

c See Table 1.1 Comparison of routine work with projects.

'Gold plating' is a) Beating customer expectations b) Producing excellent deliverables c) Addition of a feature not in the original scope plan d) All of the above

c) Addition of a feature not in the original scope plan

RBS stands for: a) Resource breakdown structure b) Risk breakdown structure c) Both a and b d) Neither a nor b

c) Both a and b

Change requests are the outputs of which process: a) Validate Scope b) Define Scope c) Control Scope d) Change Scope

c) Control Scope

A critical path activity: a) Is crucial for the project to be completed successfully b) Needs to be signed of by the stakeholder c) Is an activity on the critical path in the project schedule d) Is an activity that cannot be substituted by a different activity

c) Is an activity on the critical path in the project schedule

When your client is ready to accept the product your project has produced, you should: a) Refer to the quality plan to see if the product meets specifications b) Refer to project management plan c) Obtain client sign off and follow administrative closure process d) Let go off the project resources and assign them to other projects

c) Obtain client sign off and follow administrative closure process

Your brother can influence bids in the vendor company that has been contracted for your project. You should: a) Disclose the bid price that is most likely to give him an advantage when bidding b) Reject other vendors and award him the contract c) Refrain from the decision-making process and make a full disclosure to stakeholders and wait for their decision before you proceed d) Hint to the stakeholders that your brother might be involved in bidding

c) Refrain from the decision-making process and make a full disclosure to stakeholders and wait for their decision before you proceed

If a stakeholder directly asks a team member to make changes and the team member accommodates it: a) Admonish the team member during the team meeting so that other team members are also aware b) Inform the stakeholder that he should not talk to your team member c) Talk to the stakeholder and team member in private, and emphasize gently that the Integrated Change Control process should be followed d) Pretend to not know about the change and let it happen

c) Talk to the stakeholder and team member in private, and emphasize gently that the Integrated Change Control process should be followed

A room where team members work on issue resolution is called: a) Conference room b) Resolution room c) War room d) Video conferencing room

c) War room

A CPM critical path has: a) Non-zero float b) Negative free float c) Zero total float d) None of the above

c) Zero total float

Unclear scope definition in a project using Fixed price contract can lead to losses for: a) the buyer b) the vendor c) both buyer and vendor d) Neither as these are sunk costs

c) both buyer and vendor

A process results in a few defects occurring in each unit of output. Long-run, these defects should be monitored with:

c-charts C-charts are used to monitor the number of defects per unit

The quality control improvement tool that resembles a "fishbone" is

cause-and-effect diagrams

The _________ process involves technical change analysis, cost benefit analysis and change tracking release management version management change management cost management

change management

87. The final stage in the project life cycle is the __________ stage.

closing Explanation: Closing includes three activities: delivering the project product to the customer, redeploying project resources and post-project review.

96. The final stage in the project life cycle is the __________ stage.

closing Explanation: Closing includes three activities: delivering the project product to the customer, redeploying project resources and post-project review.

62. Training the customer, reassigning staff and releasing resources occurs in the ________ stage of the project life cycle.

closure Explanation: Includes three activities: delivering the project product to the customer, redeploying project resources and post-project review. Delivery of the project might include customer training and transferring documents.

95. Training the customer, reassigning staff and releasing resources occurs in the ________ stage of the project life cycle.

closure Explanation: Includes three activities: delivering the project product to the customer, redeploying project resources and post-project review. Delivery of the project might include customer training and transferring documents.

The most common circumstance for project closure is simply a ___________ project Completed Overdue Overbudget Underachieving

complete

In conducting meetings, an effective project manager will take the role of a: A) Parliamentarian B) Master of ceremonies C) Conductor D) Cattle herder E) Teacher

conductor

Closing out ________ is often messy and filled with untied ends project review meetings reports teams contracts

contracts

A time-ordered plot of representative sample statistics is called a(n)

control chart. Control charts are time-ordered plots of sample statistics.

79. Increased competition has placed a premium on customer satisfaction and the development of __________ products and services.

customized Explanation: Customers want customized products and services that cater to their specific needs.

89. Increased competition has placed a premium on customer satisfaction and the development of __________ products and services.

customized Explanation: Customers want customized products and services that cater to their specific needs.

45. In which of the following stages is a major portion of the physical and mental project work performed? a. Conceptualizing b. Defining c. Planning d. Executing e. Delivering

d A major portion of the project work takes place in the executing stage—both physical and mental.

28. Which of the following activities is not considered a project? a. Developing a new software program b. Designing a space station c. Preparing the site for the Olympic Games d. Production of automobile tires e. Developing a new advertising program

d A project is not routine, repetitive work! Ordinary daily work typically requires doing the same or similar work over and over, while a project is done only once; a new product or service exists when the project is completed.

41. Which of the following activities is not considered a project? a. Developing a new software program b. Designing a space station c. Preparing the site for the Olympic Games d. Production of automobile tires e. Developing a new advertising program

d A project is not routine, repetitive work! Ordinary daily work typically requires doing the same or similar work over and over, while a project is done only once; a new product or service exists when the project is completed.

1. Which of the following is not a benefit of the integrative approach to project management? a. Provides an overview of all project management activities b. Provides the big picture of how organizational resources are used c. Provides a linkage to actual project management execution d. Provides a focus on an individual project progression e. Provides an assessment of the portfolio of projects

d Full insight of all components of the organization is crucial for aligning internal business resources with the requirements of the changing environment. Integration enables management to have greater flexibility and better control of all project management activities.

39. Which of the following choices is not one of the driving forces behind the increasing demand for project management? a. Compression of the product life cycle b. Knowledge explosion c. Triple bottom line d. Decreased customer focus e. Corporate downsizing

d Increased customer attention has prompted the development of customized products and services.

6. Which of the following choices is not one of the driving forces behind the increasing demand for project management? a. Compression of the product life cycle b. Knowledge explosion c. Triple bottom line d. Decreased customer focus e. Corporate downsizing

d Increased customer attention has prompted the development of customized products and services.

46. Which of the following statements is true? a. Project management is becoming a standard way of doing business b. Project management is increasingly contributing to achieving organizational strategies c. Project management is being used at a consistent percentage of a firm's efforts d. Both A and B are true e. A, B and C are all true

d Project management is no longer a special-need management. It is rapidly becoming a standard way of doing business. The future promises an increase in the importance and the role of projects in contributing to the strategic direction of organizations.

52. Which of the following statements is true? a. Project management is becoming a standard way of doing business b. Project management is increasingly contributing to achieving organizational strategies c. Project management is being used at a consistent percentage of a firm's efforts d. Both A and B are true e. A, B and C are all true

d Project management is no longer a special-need management. It is rapidly becoming a standard way of doing business. The future promises an increase in the importance and the role of projects in contributing to the strategic direction of organizations.

11. Which of the following is not considered to be a characteristic of a project? a. An established objective b. A clear beginning and end c. Complex tasks d. Only for internal use e. Never been done before

d See list within the section What is a Project?.

44. In which of the following stages are you more likely to find status reports, many changes and the creation of forecasts? a. Conceptualizing b. Defining c. Planning d. Executing e. Delivering

d Time, cost and specification measures are used for control.

55. In which of the following stages are you more likely to find status reports, many changes and the creation of forecasts? a. Conceptualizing b. Defining c. Planning d. Executing e. Delivering

d Time, cost and specification measures are used for control.

57. In which of the following stages is a major portion of the physical and mental project work performed? a. Conceptualizing b. Defining c. Planning d. Executing e. Delivering

d A major portion of the project work takes place in the executing stage—both physical and mental.

51. Which of the following is not considered to be a characteristic of a project? a. An established objective b. A clear beginning and end c. Complex tasks d. Only for internal use e. Never been done before

d See list within the section What is a Project?.

Crashing: a) Is a schedule compression technique b) Increases cost c) Is achieved by adding resources d) All of the above

d) All of the above

The cost management plan can establish: a) Control thresholds b) Organizational procedures links c) Level of precision d) All of the above

d) All of the above

Tools for Plan Quality Management are: a) Cost-benefit analysis b) Cost of quality c) Benchmarking d) All of the above

d) All of the above

Which of the following is true? a) RACI (Responsible-Accountable-Consult-Inform) is a type of RAM (Responsibility Assignment matrix) b) RAM shows the resources' responsibilities on the project c) RAM and RACI are matrix-based charts d) All of the above

d) All of the above

A project is behind schedule. Two senior resources are added to help speed up work. The result is (choose the best answer): a) Project will be completed on time b) Project cost will not increase c) Project may not be completed on time due to increased number of communication channels d) None of the above

d) None of the above

'Budget at Completion' is also called: a) Actual cost b) Budgeted cost of work performed c) Earned value d) Total Planned value for the project

d) Total Planned value for the project

61. The initial stage in the project life cycle is the __________ stage.

defining Explanation: Specifications of the project are defined; project objectives are established; teams are formed; major responsibilities are assigned.

64. The initial stage in the project life cycle is the __________ stage.

defining Explanation: Specifications of the project are defined; project objectives are established; teams are formed; major responsibilities are assigned.

80. The establishment of project goals, specifications and responsibilities usually occurs in the ________ stage of the project life cycle.

defining Explanation: Specifications of the project are defined; project objectives are established; teams are formed; major responsibilities are assigned.

99. The establishment of project goals, specifications and responsibilities usually occurs in the ________ stage of the project life cycle.

defining Explanation: Specifications of the project are defined; project objectives are established; teams are formed; major responsibilities are assigned.

Which of the following is an input to aggregate planning?

demand forecasts for each period

Aggregate planning for services is more difficult than aggregate planning for manufacturing because __________ and __________ are more difficult to predict

demand; capacity availability

Quality control, in contrast to quality assurance, is implemented:

during production. Quality control is used to monitor processes during production; quality assurance is used to evaluate processes' outputs.

Fixing a problem will often cost money; to minimize these costs it is best to find and fix the problem

during the design phase

15. Project management is ideally suited for a business environment requiring all of the following except a. accountability b. flexibility c. innovation d. speed e. repeatability

e Competing in a global market influenced by rapid change, innovation and time to market means organizations manage more and more projects.

29. Project management is ideally suited for a business environment requiring all of the following except a. accountability b. flexibility c. innovation d. speed e. repeatability

e Competing in a global market influenced by rapid change, innovation and time to market means organizations manage more and more projects.

23. The importance of project management has increased due to a. the offshoring of manufacturing operations b. time to market c. the movement toward flatter and leaner organizations d. both A and B are true e. A, B and C are all true

e One of the most significant driving forces behind the demand for project management is the shortening of the product life cycle. In today's flatter and leaner organizations, where change is a constant, project management is replacing middle management as a way of ensuring that things get done. Corporate downsizing has also led to a change in the way organizations approach projects. Companies outsource significant segments of project work, and project managers have to manage not only their own people but also their counterparts in different organizations.

42. The importance of project management has increased due to a. the offshoring of manufacturing operations b. time to market c. the movement toward flatter and leaner organizations d. both A and B are true e. A, B and C are all true

e One of the most significant driving forces behind the demand for project management is the shortening of the product life cycle. In today's flatter and leaner organizations, where change is a constant, project management is replacing middle management as a way of ensuring that things get done. Corporate downsizing has also led to a change in the way organizations approach projects. Companies outsource significant segments of project work, and project managers have to manage not only their own people but also their counterparts in different organizations.

25. Which of the following is not typically the responsibility of a project manger? a. Meeting budget requirements b. Meeting schedule requirements c. Meeting performance specifications d. Coordinating the actions of the team members e. All of the answers are correct

e Project managers must ensure that appropriate trade-offs are made between the time, cost and performance requirements of the project.

37. Which of the following is not typically the responsibility of a project manger? a. Meeting budget requirements b. Meeting schedule requirements c. Meeting performance specifications d. Coordinating the actions of the team members e. All of the answers are correct

e Project managers must ensure that appropriate trade-offs are made between the time, cost and performance requirements of the project.

3. Which of the following statements is true? a. Project managers must work with a diverse cast of characters to complete projects b. Project managers are ultimately responsible for performance c. Project managers provide direction, coordination and integration to the project team d. Both A and B are true e. A, B and C are all true

e Project managers must work with a diverse cast of characters to complete projects (see The Project Manager).

34. Which of the following statements is true? a. Project managers must work with a diverse cast of characters to complete projects b. Project managers are ultimately responsible for performance c. Project managers provide direction, coordination and integration to the project team d. Both A and B are true e. A, B and C are all true

e Project managers must work with a diverse cast of characters to complete projects (see The Project Manager).

13. The major functions of portfolio management are to a. improve communication among all stakeholders b. oversee project selection c. monitor aggregate resource levels and skills d. improve customer services e. A, B and C are all true

e See list under Integration of Projects through Portfolio Management.

18. The major functions of portfolio management are to a. improve communication among all stakeholders b. oversee project selection c. monitor aggregate resource levels and skills d. improve customer services e. A, B and C are all true

e See list under Integration of Projects through Portfolio Management.

69. In the __________ stage of the project life cycle a major part of the project work, both physical and mental, takes place.

executing Explanation: A major portion of the project work takes place—both physical and mental.

97. In the __________ stage of the project life cycle a major part of the project work, both physical and mental, takes place.

executing Explanation: A major portion of the project work takes place—both physical and mental.

In the Snapshot from practice 'Managing Expectations', one of the key aspects to project success was stated to be the managing of stakeholder: A) Relations B) Expectations C) Involvement D) Influence E) Input

expectations

Which is not a cost of quality?

extended service contract costs

Warranty service, processing of complaints, and costs of litigation are examples of

external failure costs

You are in charge of a project for the electrical layout of a 5 star hotel. You see this as a very simple project as you and your team have a lot of experience executing similar such projects. As a result your organization has a wealth of organizational process assets. You have worked out the exact details of the work involved and have a very detailed WBS with granular level activities defined. You decide to employ the services of a contractor for laying out of the cable trays. What kind of contract would be the best choice? cost-reimbuseable contract fixed-price contract T and M contract None of the above

fixed-price contract THERE IS NO MENTION OF A SINGLE CONTRACTOR OR STAFF AUGMENTATION; T&M DOES NOT APPLY

Releasing the project team typically occurs ________ during the closure phase rarely gradually rapidly all at once

gradually

The "Control" phase of DMAIC is intended to ensure that

improvements are sustained

The more effective and all-encompassing a firm's quality control and continuous improvement efforts, the less that company will need to rely on

inspection. The best companies emphasize designing quality into the process, thereby greatly reducing the need for inspection.

Lost production time, scrap, and rework are examples of:

internal failure costs

ISO certification differs substantially from the Baldrige Award in that it

is an ongoing process Unlike the Baldrige Award, ISO registered companies face an ongoing series of audits, and they must be reregistered every three years.

66. The growth in new ________ has increased the complexity of projects because projects typically include the latest advances.

knowledge Explanation: The growth in new knowledge has increased the complexity of projects because projects encompass the latest advances. Product complexity has increased the need to integrate divergent technologies. Project management has emerged as an important discipline for achieving this task.

73. The growth in new ________ has increased the complexity of projects because projects typically include the latest advances.

knowledge Explanation: The growth in new knowledge has increased the complexity of projects because projects encompass the latest advances. Product complexity has increased the need to integrate divergent technologies. Project management has emerged as an important discipline for achieving this task.

A written preliminary contractual instrument prepared prior to the issuance of a definitive contract that authorizes the contractor to begin work immediately, within limitations, is known as: Definitive contract Preliminary contract Letter of contract/Letter of intent Purchase order

letter of contract / letter of intent

Six sigma programs involve both __________ and __________ components

managerial, technical

Which of the following is not an input to the aggregate planning process?

master production schedules

The direct result of disaggregating the aggregate plan is the

master schedule

65. The advent of many small projects has created the need for an organization that can support __________ management.

multiproject Explanation: This climate has created a multiproject environment and a plethora of new problems. Sharing and prioritizing resources across a portfolio of projects is a major challenge for senior management.

81. The advent of many small projects has created the need for an organization that can support __________ management.

multiproject Explanation: This climate has created a multiproject environment and a plethora of new problems. Sharing and prioritizing resources across a portfolio of projects is a major challenge for senior management.

A c-chart is used for

number of defects per unit.

46. In a project, a cost incentive contract has been awarded to a contractor with the following parameters: What is the point of total assumption (PTA, breakpoint) of the project?46 o $1,000,000 o $1,100,000 o $1,125,000 o $1,200,000 Target cost:$1,000,000Target contractor fee:$100,000Cost benefit sharing ratio:80%/20%Price ceiling:$1,200,000

o $1,125,000 ceiling price - target PRICE/buyer ratio 0.80 lastly + target cost

108. Your project exceeded costs in the past caused by an underestimation of resource costs in the cost baseline: PV: $1,200,000, EV: $1,000,000, AC: $1,200,000 You expect the underestimation to influence the future as much as it did in the past. If the value of the remaining work (BAC - EV) is at $1,000,000, what should be your new EAC (estimate at completion)?108 o $1,800,000 o $2,000,000 o $2,200,000 o $2,400,000

o $2,400,000 underestimation of resource costs = SCHEDULE IMPACT EAC - If both the CPI and SPI influence the remaining work, use:").

161. In project management, work authorization is normally not... 161 o ...a permission written by the project manager to begin work on a specific activity. o ...a permission written by the project manager to begin work on a specific work package. o ...a written direction used by a project manager to ensure work is done properly and correctly. o ...a document issued by a sponsor authorizing the project manager to apply resources to project activities

o ...a document issued by a sponsor authorizing the project manager to apply resources to project activities

67. Your management announced that they want to put you on a stretch assignment. In this situation, you should consider that...67 o ...a stretch assignment is going beyond your qualifications right from the start. Whatever your education, knowledge and skills are, you cannot fail personally. Congratulations. o ...key stakeholders must have timely and complete information regarding your qualifications to make decisions regarding your suitability for the assignment. o ...stretch assignments bear an increased risk of failure, and this is rarely outweighed by the learning and development experience expected to come with the assignment. o ...you should avoid the increased hassle coming with the assignment. It will not be enough for you to simply satisfy requirements and achieve objectives. You will have to learn a lot

o ...key stakeholders must have timely and complete information regarding your qualifications to make decisions regarding your suitability for the assignment.

153. When control charts are used, outliers are...153 o ...singular measurements outside the bandwidth between an upper and lower control limit. o ...a typical result of a rare random cause which is difficult to replicate and to verify. o ...insignificant results, often measurement errors, the causes of which should not be further investigated. o ...measurements inconsistent with a run of 7 results over or under a mean value

o ...singular measurements outside the bandwidth between an upper and lower control limit.

57. Geert Hofstede's cultural dimension of individualism refers to... 57 o ...the degree of dependence relationships between individuals. o ...the significance of the person versus that of the group. o ...the identification with the gender role of an individual. o ...the tolerance for ambiguity or uncertainty in the workplace

o ...the significance of the person versus that of the group.

87. A project was assessed and the following earned value data have been found: PV: $750,000 EV: $750,000 AC: $900,000 What is the burn rate of the project?87 o 1.20 o 1.10 o 1.00 o 0.83

o 1.20 burn rate = 1/CPI

94. Together with your team, you applied three-point estimation on a critical path which consists of two activities. The following duration uncertainties are all calculated assuming a ±3sigma confidence interval. The duration uncertainty—defined as pessimistic minus optimistic estimate—of the first activity is 18 days; the second estimate has an uncertainty of 24 days. Applying the PERT formula for paths (beta distribution), what is the duration uncertainty of the entire path? 94 o 21 days o 30 days o 42 days o No statement is possible from the information given

o 30 days std dev= 3 4 variance = 9 16 total variance = 25 square root to get std deviation = 5 5 * 6 = 30 to get uncertainty

193. What is a product backlog?193 o A description of what is to be delivered in a product o A to-do list of tasks to be finished o A breakdown of scope for an iteration o A time-phased list of technical requirements

o A description of what is to be delivered in a product

49. What is typical for high-context cultures?49 o Technical means for communications can focus on transfer of spoken and written language. o Communication is preferred which avoids passing over a great deal of additional information. o A message has little meaning without an understanding of the surrounding context. o To understand a message, no information on history or personal opinions is needed

o A message has little meaning without an understanding of the surrounding context.

5. What does the term best practice often refer to?5 o A standardized set of deliverables, like plans, reports, and checklists. o A set of tools and techniques that a project manager should master. o The concept of state of the art applied to project management. o A specific sequence of work, described in terms of soft logic

o A specific sequence of work, described in terms of soft logic discretionary dependency - arbitrary float

198. For one of the risks identified in your project, propinquity has been marked as "high" in the risk register. What does this mean?198 o A stakeholder believes it is of high relevance. o The team believes it is quite likely to occur. o Management is generally reluctant to create reserves for it. o The risk is closely related to other project risks.

o A stakeholder believes it is of high relevance.

62. What is the meaning of the acronym CSOW?62 o A statement of work that is part of a contingency plan; it is commonly linked with Contingency reserves. o A statement of work that has been formally agreed upon by both parties and is therefore part of a contract. o A statement of work that is currently valid; this contrasts with the scope baseline, a formerly valid SOW. o A statement of work on project level that cumulates statements of work on cost account level

o A statement of work that has been formally agreed upon by both parties and is therefore part of a contract.

187. Which is an area where project managers should particularly collaborate and share detailed knowledge about the project with other professionals?187 o With C-suite managers o With colleagues from the functional organization o With colleagues from competitors o Across disciplines and company borders

o Across disciplines and company borders

86. You took over a customer project for your company. From the inputs available, including contract, statement of work and project charter, you have developed a project management plan. You already presented that plan in a meeting with key stakeholders including your project sponsor and some representatives from the customer organization. During the meeting you sensed a high level of dissatisfaction by the customer executives, who signaled that the project might not produce the results that their company had expected. In your understanding, all necessary actions have been planned to meet the customer's requirements. What should you do next?86 o Request a written statement from the customer detailing the requirements which they believe are not addressed by your plan. Use this statement to update the project plan. o Arrange meetings with the customer to identify their needs, wants and expectations for the project. Then create a narrative Scope statement from this information to document the agreed upon project scope. o Request a formal meeting on top executive level to get the misunderstandings sorted out, then arrange a change request, re-plan your project where necessary and go ahead with the project work. o Do not over-react. Performed according to your plan, the project will produce a convincing product for the customer. As soon as the executives will see it, they will probably change their opinion and accept it.

o Arrange meetings with the customer to identify their needs, wants and expectations for the project. Then create a narrative Scope statement from this information to document the agreed upon project scope.

28. You are in the process of planning a project and found that stakeholders often have varying objectives and requirements. This makes it hard to come up with a plan with which all objectives will be met. What is probably most helpful to ensure common understanding?28 o Ask the project stakeholders to build focus groups in order to discuss and remedy conflicting interests. o Create an exhaustive document describing your point of view and ask stakeholders to review it. o Let each stakeholder write a statement of work, merge the documents to a project scope statement. o Use your authorization as the project manager to clearly prioritize the different objectives.

o Ask the project stakeholders to build focus groups in order to discuss and remedy conflicting interests. focus groups: bring together stakeholders or SMEs to learn about their expectations and attitudes about proposed product, service, result.

45. The term baseline is used in both disciplines project management and configuration management. Which statement is not true?45 o Baselines in system configurations are often also referred to as deltas. o In configuration management, baselines are used to control change. o Project management baselines are used for performance measurement. o In project management, baselines help assess variance and trends

o Baselines in system configurations are often also referred to as deltas.

A customer is requiring a minor scope change and expects you to do this without delays and additional costs. You believe that you have adequate authorization to make the decision by yourself, but you are not quite sure. What should be your next steps? o A requested change is always an opportunity to get more money paid by the customer and to secretly solve schedule and quality problems. You should make some reasonable estimates on time, costs, risks etc. and then add a nice margin on top of that to calculate the new price. o Customer satisfaction is your top priority. The customer gives you an opportunity to increase their satisfaction, which you should use to the maximum benefit. Most project managers have contingencies to cover risks; these can be used to pay the additional costs. o Before making a decision you should have a look at the customer's parking lot. If you find there many expensive, new models, it is likely that you can use the requested change to increase the profit from the contract. Otherwise you should reject the request. o Handle the request according to the integrated change control processes described in your management plans. Then make a decision together with the appropriate change control body, whether the increased customer satisfaction will be worth the extra costs, work, risks etc.

o Before making a decision you should have a look at the customer's parking lot. If you find there many expensive, new models, it is likely that you can use the requested change to increase the profit from the contract. Otherwise you should reject the request.

168. A project manager tracks the work of team members using a network logic diagram. Which effect will the presence of an actual finish date have on the calculation of float for the finished activity?168 o Finished activities have only float left when they have been completed on schedule. o Calculating free float and total float is generally not reasonable for finished activities. o When an activity has been finished, total float gets often converted to become free float. o When an activity has been finished, float gets often converted to become slack.

o Calculating free float and total float is generally not reasonable for finished activities.

12. How should change management be planned for?12 o Changes are generally not predictable, therefore planning for change management cannot be reasonable. o Planning for change management should be done while the various change control processes are being applied. o Change management can be planned in a set of management plans or a specific change management plan. o Changes are a sign of bad planning. One should avoid changes during a project, thus eliminating the need to manage them

o Change management can be planned in a set of management plans or a specific change management plan.

How should change management be planned for? o Changes are generally not predictable, therefore planning for change management cannot be reasonable. o Planning for change management should be done while the various change control processes are being applied. o Change management can be planned in a set of management plans or a specific change management plan. o Changes are a sign of bad planning. One should avoid changes during a project, thus eliminating the need to manage them.

o Changes are generally not predictable, therefore planning for change management cannot be reasonable.

79. Which statement on constructive changes is false?79 o Constructive changes are contract changes which are construed from actions taken by either party, not from a change document. o Changes in projects under contract are called constructive changes if they yield benefits for both parties. o Constructive changes are a frequent cause of disputes and claims of one contract party against the other. o Field changes should be meticulously documented to avoid an interpretation as constructive change

o Changes in projects under contract are called constructive changes if they yield benefits for both parties.

89. Your project, performed for a customer, is coming to an end. The customer has been contractually granted a three years warranty period for the product of the project. What should you do first?89 o Hand all relevant documentation over to the organizational unit responsible for handling the warranty. o There is no additional work to be done. The contract should describe all processes in sufficient detail. o Changes on the product can affect warranty clauses. Ensure that these clauses are aligned with the final specifications. o According to many legislations, you cannot formally close a project before the end of the warranty period

o Changes on the product can affect warranty clauses. Ensure that these clauses are aligned with the final specifications.

44. During code inspection in a major software development project, a project management team identified frequent occurrences of critical programming errors. These errors are scattered across the code and occur without a discernible pattern. Which tool is most likely to help the team identify areas of error concentration in order to develop a prioritized response strategy?44 o Check sheet o Influence diagram o Decision tree o Process decision program chart

o Check sheet are tally sheets, useful for gathering attributes data while performing INSPECTION to identify defects

Being assigned as a project manager, you noticed during project execution that conflicts arise in the team on both technical and interpersonal levels. What is an appropriate way of handling conflicts? o Conflicts distract the team and disrupt the work rhythm. You should always smooth them when they surface. o A conflict should be handled in a meeting so that the entire team can participate in finding a solution. o Conflicts should be addressed early and usually in private, using a direct, collaborative approach. o You should use your coercive power to quickly resolve conflicts and then focus on goal achievement.

o Conflicts should be addressed early and usually in private, using a direct, collaborative approach.

141. You are running a project to engineer and implement a set of business processes and a software solution for customer relationship management. The project involves a big number of performing organizations―a major corporation and many suppliers of different sizes. During the project you observed a restraining effect of differences between the companies' corporate cultures. This leads to different expectations on how such a project should be handled and to frequent misunderstandings between stakeholders. Another effect is a growing degree of distrust and skepticism. What should you try first to integrate the diverse stakeholder groups?141 o Focus on project work. As a project manager you should not get distracted by big egos. o Let the problems grow further until they are obvious for all. Then escalate them. o Develop a joint quality policy for the project and seek commitment by all organizations. o Analyze probability and impact of the risks linked with the situation and plan how to respond to them.

o Develop a joint quality policy for the project and seek commitment by all organizations.

19. As the project manager in a software project which is currently initiated, you want to assess high-level risks. What should you do?19 o Develop the project charter and a risk management plan to start identifying risks based on those and other documents. o Identify and analyze risk events using qualitative and quantitative techniques. o Develop contingency plans and fallback plans in case the original plan proves wrong. o Discuss the risks documented in your Risk register with the project key stakeholders.

o Develop the project charter and a risk management plan to start identifying risks based on those and other documents.

As the project manager, you decided to arrange a team meeting to identify and analyze lessons learned from quality control with stakeholders. What should you do with them? o Document them and make them part of the historical database for the project and the performing organization. o Discuss them with management and make sure that they remain otherwise confidential o Publish them in the corporate newsletter. o Follow your strategic decisions, independent from lessons learned. These decisions have been made and should be implemented whatever the outcomes are.

o Document them and make them part of the historical database for the project and the performing organization.

147. Which is not an example of a correctly handled contract closure procedure?147 o Early termination of a contract because of a repudiatory breach o Settling and finally closing the contract agreement o Product verification by stakeholders and administrative closure o Early termination of a contract because of an immaterial breach

o Early termination of a contract because of an immaterial breach

72. Which of the following are not common barriers to project team building?72 o Differing outlooks, priorities, and interests o Role conflicts o Excessive team member commitment o Unclear project objectives/outcomes

o Excessive team member commitment

Which are the stages of team development? o Honeymoon, rejection, regression, acceptance, re-entry o Forming, storming, norming, performing o Tell, sell, consult, join o Direct, support, coach, delegate

o Forming, storming, norming, performing

30. What is typical for critical path project management?30 o Forward and backward pass analysis o Level-of-effort activities o Management of security protocols o Management of resource over-allocations

o Forward and backward pass analysis Critical path method - minimum project duration - longest path - 0 float - without regard for resource - forward/backward pass!!!

185. What is not a characteristic of what is referred to as an "organic organization"?185 o Low project manager authority o Low resource availability o Full-time project management administrative staff o Flexible work groups

o Full-time project management administrative staff

174. What is the purpose of control limits?174 o Identifying "rule of seven" patterns in control charts. o Increasing process quality from 3σ to 6σ. o Specifying the range of acceptable results. o Identifying whether the process is in control or not.

o Identifying whether the process is in control or not. Specifying the range of acceptable results. (=tolerances)

196. Which is an advantage of self-organizing teams?196 o Freedom of the project manager to make decisions o Faster decision-making processes by the project manager o Increased sense of responsibility of team members o Higher visibility of individual team members

o Increased sense of responsibility of team members

7. _________ are usually not a manifestation of unique organizational cultures and styles.7 o Shared visions, values, norms, beliefs, and expectations o Individual traits and attitudes of co-workers o Views of authority relationships o Policies, methods, and procedures

o Individual traits and attitudes of co-workers

84. What is least important when it comes to archiving project records? 84 o A well-designed records management system o Integration of the archive with business software o Updated records reflecting final results o Easy availability of information for future use

o Integration of the archive with business software

8. Which of the following is generally not regarded as an element of active listening?8 o Making eye contact o Paraphrasing o Interpreting the information o Interrupting when appropriate

o Interrupting when appropriate

Which of the following is generally not regarded as an element of active listening? o Making eye contact o Paraphrasing o Interpreting the information o Interrupting when appropriate

o Interrupting when appropriate

129. You are planning quality management for your project. How can a process flowchart help you? 129 o It may help identify outliers. o It may help understand the COQ in a process. o It may help spot accountable staff. o It may help react later

o It may help understand the COQ in a process.

Which document is developed along the risk management processes from identify risks through perform qualitative risk analysis to control risks? o List of risk triggers o Risk register o Risk mitigation o Decision tree

o List of risk triggers

189. A project manager hears about an issue and decides to ask the project team about more details as to how and when this happened. Is this more of a team management or more of a team leadership approach in this moment?189 o More of a team management approach o More of a team leadership approach o Both o Neither

o More of a team management approach

20. In most jurisdictions, a legally required order of formal statements establishing a contract is: o Invitation to treat, offer, PO o Inquiry, bid, order o Offer, acceptance o MoU, LoI, final agreement

o Offer, acceptance

132. You are currently finishing a project under contract to develop and build some machining equipment for a customer. Your organization took over the obligation to solve certain problems if they come up during a contractual warranty period of one year after start of production. What do you not have to consider during the warranty period? 132 o Parts which were marked as-is must be held available for free replacement in case of failure. o Incoming problems reported to the team must be handled immediately and with high priority. o Some team members must be held available during the warranty period in case that they have to solve problems. o At the end of the warranty period, the responsibility for the equipment will be turned over to the customer

o Parts which were marked as-is must be held available for free replacement in case of failure.

83. An organization is considering various contract types in order to motivate sellers and to ensure preferential treatment. What should they consider before deciding to use an award fee contract? 83 o Payment of an award fee would be linked to the achievement of objective performance criteria. o Any unresolved dispute over the payment of an award fee would be subject to remedy in court. o Payment of an award fee would be agreed upon by both the customer and the contractor. o Payment of an award fee is decided upon by the customer based on the degree of satisfaction

o Payment of an award fee is decided upon by the customer based on the degree of satisfaction

158. You are performing integrated change control. Which of the following will not be part of what you do?158 o Reviewing and approving change requests o Maintaining the integrity of baselines o Performing milestone trend analysis (MTA) o Documenting the allover impact of requested changes

o Performing milestone trend analysis (MTA)

What is not a reason for companies to organize lessons learned? o Lessons learned databases are an essential element of the organizational process assets. o Lessons learned should focus on identifying those accountable for errors and failures. o Lessons learned sessions should bring about recommendations to improve future performance on projects. o Phase-end lessons learned sessions provide a good team building exercise for project staff members.

o Phase-end lessons learned sessions provide a good team building exercise for project staff members.

_________ are usually not a manifestation of unique organizational cultures and styles. o Shared visions, values, norms, beliefs, and expectations o Individual traits and attitudes of co-workers o Views of authority relationships o Policies, methods, and procedures

o Policies, methods, and procedures

91. Which is generally not regarded as one of the three categories of culture that managers should master? 91 o National culture o Organizational culture o Project culture o Functional culture

o Project culture

157. Which is not a type of project review meeting?157 o Team review meetings o Project status meetings o Executive management review meetings o Customer review meetings

o Project status meetings

116. A project customer and a contractor agreed on regular quality audits during execution by a third party audit team, which is working on an assignment for the customer. What should the contractor have prepared for the audits?116 o Work results o Measurements and test results o Quality documentation o Contract-related correspondence

o Quality documentation

69. In configuration management, which of the following is necessary to maintain the integrity of baselines?69 o Analyzing variances by comparing baseline information with actual project data. o Releasing only approved changes for incorporation into products or services. o Ensuring that team members adhere to a code of ethical conduct and behavior. o Ensuring transparency across all project management processes and activities

o Releasing only approved changes for incorporation into products or services.

136. You are running a project to develop the production process for a future electronic component. Evaluating some first test batches, you found out that the precision is generally very good, but that you have some irregular outliers in a completely unpredictable pattern. What should you do?136 o Ignore the outliers; they are not relevant as long as the yield from the production is sufficiently high. o Try to increase the accuracy of the process by adjustments, thus reducing the number of outliers. o Inform the designated production manager of your observations and ask him to take care after handover. o Research outliers, they may give you important insights into problems which may trouble later production

o Research outliers, they may give you important insights into problems which may trouble later production

98. You created a baseline of your system configuration and added several changes to that as amendments. Meanwhile you are afraid that the big number of Deltas may cause inconsistencies and make you unable to understand the current system configuration. What should you do?98 o Proclaim a design freeze. o Go on with amendments. o Revise the baseline. o Create an entirely new configuration

o Revise the baseline.

188. Which of the following is usually recognized as a form of power for a project manager?188 o Legal power o Budgetary power o Reward-oriented power o Culture-oriented power

o Reward-oriented power

178. For a project to replace an older ERP software with a more modern tool in an organization, you have identified a number of risks. You have documented them in a detailed list. A manger from executive level has asked you now to summarize the overall project risk exposure with appropriate metrics, as well as individual high-level risks along with a quick presentation of responses with their pros and cons. Which document is probably required by the person in this situation?178 o Risk register o Risk management plan o Risk report o Risk traceability matrix

o Risk report

144. What is the five whys method used for? 144 o Root cause analysis o Identification of random causes o Identification of special causes o Identification of causes of conflicts

o Root cause analysis

The communications management plan is a document which includes descriptions of o Project level performance reports o Activity level status reports o Stakeholder communication requirements o Responsibility assignments

o Stakeholder communication requirements

121. _______ is normally not a method of RoI (return on investment) analysis.121 o Net present value projection o Sunk cost analysis o Simple payback calculation o Internal rate of return

o Sunk cost analysis

29. Projects frequently do not meet customer expectations for which of the following reasons? 29 o Poor risk management by the contractor running the project o Poor technical ability of the contractor running the project for the customer o Technical inability and poor risk management by the contractor o Unclear scope definition by the customer for whom the project is performed

o Technical inability and poor risk management by the contractor

170. The situational leadership model as defined by Paul Hersey and Ken Blanchard consists of the stages____.170 o Must-be requirements, one-dimensional requirements, attractive requirements o Telling, selling, participating, delegating o Direct style, instrumental style, relational style o Acquisition stage, learning stage, performance stage, exhaustion stage

o Telling, selling, participating, delegating situational leadership model as defined by Paul Hersey and Ken Blanchard

93. Some colleagues told you that they are planning, executing, monitoring and controlling a project by use of milestones only with durations between 1 and 4 weeks. What do you think?93 o The approach is erroneous. A milestone is a significant point with zero duration to highlight achievements. o It is a good approach as long as the milestones reflect fixed or imposed dates during the project lifecycle only. o It is a good approach if the milestones are used for reviews between consecutive project phases only. o It is a good approach because it saves from progress measurement on activities and work packages

o The approach is erroneous. A milestone is a significant point with zero duration to highlight achievements.

54. What is best used to calculate the profit from an internal project?54 o Discounted net revenues from the product over n years minus project costs for internal charges o Discounted net savings from the product over n years minus project costs for internal charges o The economic value added (EVA) to the organization taking into account taxes and capital costs o The reduction in total cost of ownership (TCO) of the current product compared with its predecessor product

o The economic value added (EVA) to the organization taking into account taxes and capital costs

80. You are assigned as a project manager for an internal project. During cost planning and budgeting you discovered that there are peak times of costs during the project and other times when costs are fairly low. What could this mean for the project?80 o The fiscal budget mechanism which is used by the performing organization may not allow for cost peaks in your project, and you may have to level out expenditures over time. o You can silently create budget contingencies during low-cost periods and re-use them later during those periods when you have to cover peak levels in project costs. o You may find another project manager with a project that has a different rhythm of high and low costs. Then, you may be able to move budget during one project's low cost periods to the other project. o You are a project manager and work with a lifecycle budget for your project. Fiscal budgets are a matter of the functional organization, and you generally do not have to care about them

o The fiscal budget mechanism which is used by the performing organization may not allow for cost peaks in your project, and you may have to level out expenditures over time

What does the term best practice often refer to? o The net present value is positive, which makes the project attractive. o The net present value is positive, which makes the project unattractive. o The net present value is negative, which makes the project attractive. o The net present value is negative, which makes the project unattractive.

o The net present value is negative, which makes the project unattractive.

Your organization is considering to run a project which will entail an investment of $1,000,000. The product from the project is forecasted to create revenues of $250,000 in the first year after the end of the project and of $420,000 in each of the two following years. What is true for the net present value of the project over the three years cycle at a discount rate of 10%? o The net present value is positive, which makes the project attractive. o The net present value is positive, which makes the project unattractive. o The net present value is negative, which makes the project attractive. o The net present value is negative, which makes the project unattractive.

o The net present value is negative, which makes the project unattractive.

123. You are using a phase gate approach for your project. What do you need to consider?123 o The order of phases must be strictly consecutive without overlapping in order to allow for gates. o Gates are often called kill points, when they are used to eliminate weak team members. o Phase gates are often used to verify entry criteria of a previous phase and exit criteria of the next one. o Approaching phase gates early is a common signal that project planning has been poor

o The order of phases must be strictly consecutive without overlapping in order to allow for gates.

124. Post mortem earned value analysis of a project showed the following data: SPI: 0.78 CPI: 1.00 What is this telling you? 124 o The entire work of the project has been finished behind schedule and on budget. o The entire work of the project has been finished ahead of schedule and on budget. o The project has been terminated before completion. At that time it was behind schedule and on budget o The project has been terminated before completion. At that time it was ahead of schedule and on budget

o The project has been terminated before completion. At that time it was behind schedule and on budget SPI needs to be 1 for successful completion

Which of the following documents is not used as input for the validate scope process? o The project management plan, containing the scope baseline consisting of the project scope statement and its associated WBS and WBS dictionary. o The validated deliverables, completed and checked for correctness by the Perform quality control process. o The requirements traceability matrix, linking requirements to their origin and tracing them throughout the project lifecycle. o The RACI matrix, describing accountabilities in case of product rejection.

o The project management plan, containing the scope baseline consisting of the project scope statement and its associated WBS and WBS dictionary.

92. Post-mortem analysis after scheduled finish date of a project shows a CPI of 0.8 and an SPI of 1.25. What is a plausible explanation for that?92 o The project was terminated early. At that time, it was over budget and ahead of schedule. o The project has produced additional deliverables which were originally not required. o The project has evidently been finished under budget and behind of schedule. o The project has evidently been finished over budget and ahead of schedule

o The project was terminated early. At that time, it was over budget and ahead of schedule. a successfully finished project has an SPI of 1

122. What is the most important benefit of a 360 degree review? 122 o The reviewed person will regard the assessment process as fair and developmental. o Assessments from different perspectives leave no weak spot of a person unaddressed. o Managers will be assessed by their subordinates, enforcing a more participative style. o One can use a simple standard questionnaire to gather data from the reviewers.

o The reviewed person will regard the assessment process as fair and developmental.

85. _______ are not necessarily used to establish the cost baseline of a project.85 o Schedule activity or work package cost estimates o The work breakdown structure and the WBS dictionary o The project schedule and the resource management plan o The risk breakdown structure and the risk report

o The risk breakdown structure and the risk report only risk register

130. A difference between a statement of work and a scope statement is:130 o The statement of work is prepared by the customer while the scope statement is developed by the project management team. o The statement of work focuses on physical or technical matters, while the project scope statement focuses on a functional view. o The project scope statement is in most projects developed before the statement of work is written. o A project scope statement can become a contract document; a statement of work cannot.

o The statement of work is prepared by the customer while the scope statement is developed by the project management team

134. You are the manager of a major project to develop a system of barriers to prevent a seaside city from flooding. Together with your team you created a code of conduct stating that the change control board must be immediately notified of gifts when the value exceeds $90. The same applies to invitations when the value exceeds $150. Today, a contractor executive sent you an invitation for a night at an opera with a value of $95. It is a one-time event and you tried to obtain tickets by yourself without success. The person told you that he would so much wish to join you, but he will not be available on that day, and he could get hold of only one ticket anyway. What do you have to do? 134 o You are allowed to accept invitations with a value of up to $150, so there should be no problem. o One may regard the ticket as a gift, but it is just at the limit: You do not have to notify the CCB. o The ticket is a gift and over of the limit. You have to notify the CCB who will make the decision. o You are the project manager. The rules are in place to strengthen your position. They do not apply to you

o The ticket is a gift and over of the limit. You have to notify the CCB who will make the decision.

186. Stakeholders such as suppliers, customers, and end users have what in common?186 o They are in a similar sphere of influence by project managers o They always share common goals o They usually speak the same language o They usually don't interfere with project management

o They are in a similar sphere of influence by project managers

How does a project management team stay in touch with the work and the attitudes of project team members? o By observation and communication o Using closed questions during team meetings o Through third-party assessments o Through the team members' functional managers

o Through the team members' functional managers

What is the purpose of a project charter? o To formally authorize a project or a phase and document initial requirements which satisfy the stakeholder's needs and expectations. o To document how the project will be planned, executed, monitored/controlled, and closed. o To link the project, which is going to be planned, executed, and monitored/controlled to the ongoing work of the organization. o To describe the process of performing the work defined in the project management plan in order to achieve the project's objectives.

o To formally authorize a project or a phase and document initial requirements which satisfy the stakeholder's needs and expectations.

97. Which is not a goal in both project management and quality management?97 o Prevention over inspection o Customer satisfaction o Management responsibility o Triple constraint

o Triple constraint

The concept of (the) _________ states that changes related to one requirement—scope, time, or cost—will at least influence one other element. o Three-point estimation o Triple constraint o Three wise men o Three needs theory

o Triple constraint

152. Your project team is on its way to finish work on the project, while you have the impression that a staff member is already negotiating the next assignment in another project. You are afraid that the person may come under pressure to start working on the other job before she has finished her work for your project. Her task is very complex, and it would be hard for someone else to take up the partial results and finish them. What action is most likely to resolve the situation?152 o Have a private meeting with the person and discuss your observations. Make the person aware of the contract and of the legal consequences of unfinished work. o Have a meeting with the entire team and discuss the person's expected early leave. Use team dynamics to buy in the commitment from the person to finish work orderly. o Use your network of project managers to find another assignment for the person which allows for smooth transition and does not conflict with your needs. o Ignore your observations and let the team member do her job. It is quite uncommon that staff drops work for a project before it is completely finished

o Use your network of project managers to find another assignment for the person which allows for smooth transition and does not conflict with your needs.

197. Which is a category framework that is suitable for prompt lists?197 o SCOPE o VUCA o FRESH o SOFTEN

o VUCA PESTLE TECOP VUCA

56. What is true for statistical sampling?56 o Statistical sampling can be used to verify for each individual item in a lot, whether it can be accepted or must be rejected. o Attribute sampling means collection of quantitative data showing the level of conformity for each item of a sample. o Variables sampling includes collection of quantitative data on the degree of conformity for each item of a sample. o Statistical sampling is commonly used in quality assurance to examine if items of a lot conform to quality standards.

o Variables sampling includes collection of quantitative data on the DEGREE of conformity for each item of a sample.

140. When is passive risk acceptance an appropriate approach?140 o When the likeliness of risk occurrence is very low. o When the risk occurrence is hard to identify. o When it is best to deal with a risk as it occurs. o When the risk cannot be assessed or analyzed

o When it is best to deal with a risk as it occurs.

133. When should a time and material contract with a contractor been chosen instead of a fixed price contract?133 o When cost risks for the customer should be limited but not schedule risks. o When project scope includes the progressive elaboration of the scope of deliverables. o When subcontractors are being used and the customer will reimburse their invoices. o When only a limited amount of money can be made available to fund the project.

o When project scope includes the progressive elaboration of the scope of deliverables.

194. What does an iteration burndown chart track?194 o Work remaining to be completed for the product o Work remaining to be completed in the iteration backlog o Work finished so far in the iteration o Work ideally completed on average in every iteration

o Work remaining to be completed in the iteration backlog

195. Which is not one of the five levels of increasingly effective quality management?195 o Detect and correct defects before the customer finds them o Use quality assurance to examine and correct the process itself o Create a culture committed to quality throughout the organization o Write test cases before writing software code

o Write test cases before writing software code

75. The sales representative of your company recently contacted you. You made some estimates on direct costs for an offer on a firm fixed-price contract. According to company policies, indirect costs (overheads) are to be calculated as a percentage of the direct costs, the sum of both cost types caused him to calculate a far too high price. How should you not react?75 o You reduce your direct cost estimates by reducing the amount of work and the rates allocated to them. This allows a reduction of the overhead costs and a lower price. o Calculating overheads as a percentage of direct costs is just a model to simplify calculations. A more specific analysis of these costs may lead to a more realistic project price. o Cost estimates are quantitative assessments of the probable costs required to complete project work. These are made by the project team. It is the sales person's job to make the price. o You make the sales person aware that a reduction of direct costs may reduce the numbers for overhead cost allocation, but will not influence the actual overheads

o You reduce your direct cost estimates by reducing the amount of work and the rates allocated to them. This allows a reduction of the overhead costs and a lower price.

37. You scheduled a kick-off meeting in order to announce the start of your project, present the plan and develop consensus on it. Another topic will be explanation of each team member's role. In addition, you planned some time for discussions. You published the agenda of the kick-off meeting some weeks ago to all invited attendees. Now, short term before the event, you receive various cancellations by team members, who say that they cannot join the meeting. But they will be with you when project work will start.37 o The kick-off meeting is secondary, you are happy if the team members will do their jobs. o You should insist on the presence of the team members to the appointed date. o If you force team members' presence, they would anyway be distracted by their current problems. o It is probably a good idea to reschedule the meeting to a day, when all team members can attend.

o You should insist on the presence of the team members to the appointed date.

100. Projects may be initiated by all of the following except____.100 o the project team o a sponsor o a PMO o a portfolio review board

o the project team

72. One of the defining characteristics of a project is that it has a singular purpose, i.e. an established ________.

objective Explanation: Projects have a defined objective—whether it is constructing a 12-story apartment complex by 1 January or releasing version 2.0 of a specific software package as quickly as possible.

77. One of the defining characteristics of a project is that it has a singular purpose, i.e. an established ________.

objective Explanation: Projects have a defined objective—whether it is constructing a 12-story apartment complex by 1 January or releasing version 2.0 of a specific software package as quickly as possible.

Which of the following is NOT true about an organization's strategy?

only top management must understand strategy

A control chart used to monitor the fraction of defectives generated by a process is the:

p-chart. The p-chart monitors the fraction defective.

A run chart is useful to show

patterns and trends in a row of data points

A run chart is useful to show... patterns and trends in a row of data points behavior of data points against control criteria behavior of data points against specifications the error margin of a sample versus a whole population

patterns and trends in a row of data points

103. Project managers are expected to ensure that appropriate trade-offs are made between the time, cost and __________ requirements of the project.

performance Explanation: Project managers are ultimately responsible for performance (frequently with too little authority). They must ensure that appropriate trade-offs are made between the time, cost and performance requirements of the project.

93. Project managers are expected to ensure that appropriate trade-offs are made between the time, cost and __________ requirements of the project.

performance Explanation: Project managers are ultimately responsible for performance (frequently with too little authority). They must ensure that appropriate trade-offs are made between the time, cost and performance requirements of the project.

78. The development of schedules, budgets and identifying risks are common elements to the ________ stage of the project life cycle.

planning Explanation: The level of effort increases, and plans are developed to determine what the project will entail, when it will be scheduled, whom it will benefit, what quality level should be maintained and what the budget will be.

83. The development of schedules, budgets and identifying risks are common elements to the ________ stage of the project life cycle.

planning Explanation: The level of effort increases, and plans are developed to determine what the project will entail, when it will be scheduled, whom it will benefit, what quality level should be maintained and what the budget will be.

86. In the __________ stage, it is determined what the project will entail, when it will be scheduled, whom it will benefit and what the budget will be.

planning Explanation: The level of effort increases, and plans are developed to determine what the project will entail, when it will be scheduled, whom it will benefit, what quality level should be maintained and what the budget will be.

91. In the __________ stage, it is determined what the project will entail, when it will be scheduled, whom it will benefit and what the budget will be.

planning Explanation: The level of effort increases, and plans are developed to determine what the project will entail, when it will be scheduled, whom it will benefit, what quality level should be maintained and what the budget will be.

82. In the _________ stage of the project life cycle what will be accomplished by the project is determined along with the project's schedule and budget.

planning Explanation: The level of effort increases, and plans are developed to determine what the project will entail, when it will be scheduled, whom it will benefit, what quality level should be maintained, and what the budget will be.

98. In the _________ stage of the project life cycle what will be accomplished by the project is determined along with the project's schedule and budget.

planning Explanation: The level of effort increases, and plans are developed to determine what the project will entail, when it will be scheduled, whom it will benefit, what quality level should be maintained, and what the budget will be.

Quality planning and administration, quality training, and quality control procedures are examples of

prevention costs

Essentially, the output of aggregate planning is the

production plan.

68. A _________ is a series of coordinated, related projects that continue over an extended period of time intended to achieve a goal.

program Explanation: A program is a group of related projects designed to accomplish a common goal over an extended period of time.

85. A _________ is a series of coordinated, related projects that continue over an extended period of time intended to achieve a goal.

program Explanation: A program is a group of related projects designed to accomplish a common goal over an extended period of time.

88. Because projects have a defined beginning and end, the ________ is frequently used to manage the transition of a project from start to completion.

project life cycle Explanation: The project life cycle typically passes sequentially through four stages: defining, planning, executing and delivering.

94. Because projects have a defined beginning and end, the ________ is frequently used to manage the transition of a project from start to completion.

project life cycle Explanation: The project life cycle typically passes sequentially through four stages: defining, planning, executing and delivering.

The assurance that processes are performing in an acceptable manner is the focus of:

quality control

Which of the following is not an element of TQM?

quality management as a specialized function within the firm

All of the following are examples of the cost of nonconformance except

quality training

Which of the following statements are false regarding risk management? all identified risks are maintained in the risk register risk prioritization occurs in Qualitative Risk Analysis Risk prioriziation occurs in quantiative risk analysis low priority risks are maintained in a watch list

risk prioritization occurs in quantitative risk analysis all the statements are true, except, prioritization happens in qualitative risk analysis, NOT quantitative

The more __________ a task, the less likely it is that a substantial learning curve will be in effect

routine

A design engineer wants to construct a sample mean char...On three recent production batches, he tested service life on random samples of four headlamps, with these results: If he uses upper and lower control limits of 520 and 480 hours, on what sample(s) (if any) does service life appear to be out of control?

sample 3

67. Like most organizational effort, the major goal of a project is to __________.

satisfy a customer's need Explanation: Like most organizational effort, the major goal of a project is to satisfy a customer's need.

70. Like most organizational effort, the major goal of a project is to __________.

satisfy a customer's need Explanation: Like most organizational effort, the major goal of a project is to satisfy a customer's need.

You are in charge of a project to build a bridge across a river. You are midway through the project.However due to changes in environmental laws the project can no longer proceed and would need to be terminated. Executive management has asked you to document the level of work completed for the project. This would be done in which of the processes? Project Closure Contract closure Project charter Scope verification

scope verified happens both during execution and at project termination. It is used to determine the level of completion

A point which is outside of the lower control limit on an R-chart

should be investigated because an assignable cause of variation might be present. Points outside of the control limits should be investigated as signals of nonrandom variation being present.

101. Leadership, teamwork and negotiation are examples of the _________ dimension of the project management process.

sociocultural Explanation: See Figure 1.3. The technical and sociocultural dimensions of the project management process.

63. Leadership, teamwork and negotiation are examples of the _________ dimension of the project management process.

sociocultural Explanation: See Figure 1.3. The technical and sociocultural dimensions of the project management process.

On a log-log graph, learning curves appear as

straight lines

100. In some organisations, selection and management of projects often fail to support the broad-based _________ of the organisation.

strategic plan Explanation: Today, projects are the modus operandi for implementing strategy. Yet in some organisations, selection and management of projects often fail to support the strategic plan of the organisation.

104. In some organizations, selection and management of projects often fail to support the broad-based _________ of the organization.

strategic plan Explanation: Today, projects are the modus operandi for implementing strategy. Yet in some organizations, selection and management of projects often fail to support the strategic plan of the organization.

71. WBS, schedules and budgets are examples of the _________ dimension of the project management process.

technical Explanation: See Figure 1.3 The technical and sociocultural dimensions of the project management process.

76. WBS, schedules and budgets are examples of the _________ dimension of the project management process.

technical Explanation: See Figure 1.3 The technical and sociocultural dimensions of the project management process.

The amount of inspection needed depends on __________ and __________

the costs of inspection; the costs of passing on defective items The amount of inspection needed is governed by the costs of inspection and the expected costs of passing defective items.

A Pareto chart helps focusing on... causes which create a repeating and often seasonal pattern of problems. the minority of causes, which create the majority of problems and defects. special causes of process variations which should be investigated to avoid major errors. the standard deviation of process variation which should not be investigated.

the minority of causes, which create the majority of problems and defects

Who is ultimately responsible for quality management on the project

the project manager.

Regardless of the criteria differences among different types of projects, typically the most important criterion for project selection is

the project's fit to the organization strategy.

75. In today's high-tech industries the product life cycle is averaging between one and _________ years.

three Explanation: Today in high-tech industries the product life cycle is averaging one to three years. Only 30 years ago, life cycles of 10 to 15 years were not uncommon.

90. In today's high-tech industries the product life cycle is averaging between one and _________ years.

three Explanation: Today in high-tech industries the product life cycle is averaging one to three years. Only 30 years ago, life cycles of 10 to 15 years were not uncommon.

The optimum level of inspection is where the

total cost of inspection and defectives is minimum.

One option for altering the availability of capacity is:

use of overtime or slack time.

Lean Key Points

• Focus on Affordability and the other "illities" early in the design process (Dfx) • Set Based design approach vs. Point Based design • Process to rapidly perform design trades on the different set based concepts • Importance of a Model Based approach with shared common data • Interoperable toolsets via Neutral File Formats