Chapter 11, 12, 13 - Project Management
based on the preceding numbers what is the amount needed for the contingency fund? * multiply probability by Ex$V and add up all Ex$V of each risk
$117,150 the probability times the impact shows the Ex$V. the sum of the Ex$v column reveals the risk exposure; the inverse is ideal contingency reserve.
what would risk 6 be based on the following information: Marty is 60 percent certain that he can get the facility needed for 45,000 which is 7,000 less that what was planned for?
.60, $7,000, $42,000 - marty is 60 percent certain he can save the project $7000. the 42,000 represents the 60 percent certainty of the savings.
you are the project manager for the gli project for your organization. your project sponsor has asked that you use an approach to measure the probability and impact of the risk events and then to rank the events accordingly. which risk analysis provides the project manager with a risk ranking?
Qualitative - the risk ranking is based on the qualitative values of very high, high, medium, low and very low attributes of the identified risks
you are the project manager for a project that will create a new and improved website for your company. currently your company has more than 8 million users around the globe. you would like to poll experts within your organization with a simple anonymous form asking about any foreseeable risks in the design, structure, and intent of the web site. with the collected information, subsequent anonymous polls are submitted to the group of experts. This is an example of.....
The Delphi technique - an anonymous poll allowing experts to submit their opinion freely without fear of backlash is an example of the delphi technique
the water sanitation project manager has determined that the risks associated with handling certain chemicals are too high. he has decided to allow someone else to complete this portion of the project so he has outsourced the handling and installation of the chemicals and filter equipment to an experienced contractor. This is an example of which of the following?
Transference - because the risk is not eliminated but transferred to someone else or another entity; it is considered transference
you are the project manager of the ghy project for your organization. a portion of this project included dangerous work although members of the project team could likely complete the work, your sponsor does not want to accept the risk. in this situation which of the following may be used as a risk mitigation tool?
a contract - a contract can be used as a risk mitigation tool. procurement of risky activities is known as transference - the risk does not disappear but the responsibility for the risk is transferred to the vendor
what can a project manager use to determine whether it is better to make or buy a product?
a decision tree analysis - a decision tree model can separate the pros and cons of buying versus building
bonnie is the project manager for the hgh construction project. she has contracted a portion of the project to the abc construction company and has offered a bonus to abc if they complete their portion of the work by August 30. This is an example of which one of the following?
a project incentive - bonus to complete the work by august 30 is an incentive
terry is the project manager of the mvb project. she needs to purchase a piece of equipment for her project. the accounting department has informed Terry she needs a unilateral form of contract. accounting is referring to which of the following?
a purchase order - a unilateral form of a contract is simply a purchase order
with in your organization all project managers are required to document the performance quality ratings, delivery performance and contractual compliance of each vendor with which they interact. this is known as what?
a seller rating system - this scenario describes the seller rating system, which can help future project managers choose the best vendor based on past performance
as a project manager you must understand the components of identified risk, a risk response a risk trigger, risk threshold and issues. a risk trigger is also called which of the following?
a warning sign - risk triggers can also be known as warning signs, triggers signal that a risk is about happen or has happened
all of the following are types of communication that are related to stakeholder engagement except for which one?
ad hoc communication - its not a structured stakeholder management communication type. it is used to facilitate quick informal communications but it is not a structured planned approach to managing communication to and from project stakeholders
as a pmp candidate you must be familiar with the different approaches to risk identification. one approach is called swot. which of the following describes swot?
an analysis of strengths, weaknesses, opportunities and threats
martha is the project manager of the mnb projet. she wants a vendor to offer her one price to do all of the detailed work. martha is looking for which type of document
an invitation for bid - an IFB is typically a request for a sealed document that lists the sellers firm price to complete the detailed work
you are the project manager for the 89a project. you have created a contract for your customer. the contract must have what two things?
an offer and consideration - contracts have an offer and a consideration
one of the tools you have to use as a project manager in the stake holder management knowledge area is management skill. management skills help you organize stakeholder concerns and keep the project moving forward. all of the following are examples of management skills except for which one?
analyzing work performance information - is not a management skill but it is a facet of data analysis and preparing for stakeholder engagement
yolanda has outsourced a portion of the project to a vendor. the vendor has discovered some issues that will influence the cost and schedule of its portion of the project. how must the vendor and yolanda update the agreement?
by submitting the change request to the contract change control system
beth is the project manager of a new constuction project for her organizations client. this project will construct a new beidge in a major thoroughfare in her city. beth is preparing for stakeholder identification because she wants to capture all of the internal and external stakeholders who may influence and be influenced by this project. in her preparations, beth will need all of the following documents as inputs except for which one?
communications management plan - beth will not need the communications management plan as part of the stakeholder identification process
you are the project manager of the hhq project for your company. you have hired a vendor to complete a portion of the project but the vendor doesnt seem to have met the project requirements as defined in the contract. you have tried alternative dispute resolutions to no avail and you think the claims administration may have to be escalated. the united states backs all contracts through which of the following?
court system - all contracts in the United States are back by the US court system
you are a project manager for your organization and are progressing through the procurement management process. who should receive the procurement document package?
each vendor that participates in the bidding will need to receive the procurement document package.
a key component of the project procurement management knowledge is the actual seller selection. seller selection is based on many inputs and enterprise environmental factors by which the project manager must be able to abide. from a pmp candidate perspective in what process group does source selection happen?
executing - source selection happens during the execution process group
how should you manage unhappy but compliant stakeholders?
explain the benefits of the project
sammy is the project manager of the dsa project. he is considering proposals and contracts presented by vendors for a portion of the project work. of the following which contract is least dangerous to the dsa project?
fixed price - a fixed price contract contains the least amount of risk for a project. the seller assumes all of the risk because cost overruns are the sellers responsibility
you are the project manager of a project that will span 6 years in Columbus ohio. you are negotiating with your project customer for consideration for inflation, cost of utilities and other cost factors that will likely fluctuate over the course of the project. what type of contract should your project have?
fixed price with economic price adjustments - projects that last for several years often use a fixed price with economic price adjustments for cost categories that are likely to increase over the project duration
henry has sent the abn company a letter of intent this means which of the following?
henry intends to buy from the abn contracting company
which of the following best describes the concept of interactive communication in stakeholder management?
hosting a project status meeting - interactive communication means that the stakeholders can communicate with one another. meetings, video conferences, and teleconferences
as a pmp candidate you must understand the provisions of project procurement even if your typical projects do not include procurements. based on the information in this chapter a contract cannot have provisions for which of the following?
illegal activities - a contract cannot include provisions for illegal activities
you are about to begin your execution phase when your sponsor calls to inform you you have left out some stake holders during the projects planning phase. what should you do now?
immediately contact the stakeholders apologize and analyze the stakeholders
you are the project manager of a large project that will affect ow your organization accepts and processes orders from customers. many of the stakeholders have strong opinos about the project and how it should be proceed. thomas the manufacturing manager and jane the sales manager have been in conflict with one another over some of the project requirements. youve met with these two stakeholders to resolve the conflict, negotiate the difference and come to an agreement about the requirements in the project. what stakeholder engagement tool and technique have you used effectively in this scenario?
interpersonal skills - building trust, resolving conflict, active listening, and overcoming resistance to change
which one of the following is not one of the inputs for stakeholder engagement?
issue log
you are the project manager of your organization, and you're working with your project team and the project stakeholders to identify the risks within the project. some of the risks have not yet happened and some of the risks are already issues. you tell the project team that all risks must be documented in the risk register but they are not familiar with this document. which one of the following best describes the risk register?
it documents all of the outcomes of the other risk management processes - the risk register documents all of the outcomes of the other risk management processes
Beth is the project manager for her company, and Mary, her supervisor is concerned with the possibility of Beth accepting one of the project risks. Beth explains that this is a risk that should be accepted within the project. When is it appropriate to accept a project risk?
it is appropriate to accept risk if the risk is in balance with the reward - Risks that are in balance with the reward are appropriate for acceptance
bennie is the project manager for his company and hes working with his project stakeholders to determine the pros and cons of the different contract types for a portion of his prokect. of the following contract types which one requires the seller to assume the risk of cost overruns?
lump sum - a lump sum is a fixed fee to complete the contract; the seller absorbs any cost over runs
which of the following can determine multiple scenarios given various risks and probability of their impact?
monte carlo simulations - monte carlo simulations can reveal multiple scenarios and examine the risks and probability of impact
you are the project manager for the server update project for your organization. this project has 543 stakeholders ,any of which are end users. some of the end users are critical of the server update because they are concerned about where the data is stored, how they will access the data in the future and their mapped drives. youve communicated with all of the users that the server update will change how the users will access their files and home folders in the future. now some of the end users have been complaining to their functional managers about the change. in this scenario, what type of stakeholders are the end users?
negative - negative stakeholders are people who do not want your projet to succeed or event exist.
Frances is the project manager of the LKJ project. Which of the following techniques will she use to create the risk management plan?
planning meetings - planning meetings are used to create the risk management plan. The project manager project team leaders, key stakeholders and other individuals with power to make decisions regarding risk management attend the meetings
a table of risks their probability their impact and a number representing the overall risk score is called a....
probability and impact matrix
sam recently discovered a scheduling conflict with two vendors on his project. sam knows the conflict will likely cause a two week delay in the completion of the project. what should sam do?
propose a solution to management
an understanding of the different types of risk events can help the project manager work better with the enterprise environmental factors and the organizational process assets that affect the risk management in a project. based on this information a ________ includes fire, theft or injury and offers no chance for gain?
pure risk - pure risks are the risks that could threaten the safety of the individuals on the project
what type of communication is secured email considered to be?
push - push communication describes information that is sent out to an audience or stakeholders via email, memos, letters or reports
you are the project manager of a large software deployment project for your organization. this project will replace the operating system on the computers of employees. many of the employees are in favor of the change while others are not. as part of your plan you complete an analysis of the stakeholders. in this analysis you and the project team have also learned that the functional managers are not in favor of the change. how would you classify these stakeholders?
resistant - these negative stakeholders can be accurately classified as resistant to the project goals
what is the EMV for risk event 3 probability = .45 impact = -$300
risk event 3 has a probability of 45 percent and an impact cost of -$300 which equates to -$135 -300 x .45 = -135
the customers of the project have requested additions to the project scope. the project manager brings notice that additional risk planning will need to be added to the project schedule, why?
risk planning should always occur whenever the scope is adjusted - when the scope has been changed the project manager should require risk planning to analyze the additions for risk to the projects success
in addition to the project staffing management plan what other document should you update?
stakeholder register - it contains information about the stakeholders that are currently involved in the project. when a stakeholder leaves the project you should update the stakeholder register so that you dont include non stakeholders in project communications and engagement.
Harold is the project manager for a large construction project his company is completing for a client. this project has internal and external stakeholders, including members of the community who are opposed to the project although it has been approved by the city. Harold is preparing to create a stakeholder management plan and hes gathering several inputs for the plans creation. which one of the following inputs will most help harold create a strategy for stakeholder management and engagement?
stakejolder register - harold needs the stakeholder register to create a stratefy for stakeholder management and engagement. the stakeholder register defines the role, interest contract information and attitudes of the stakeholders towards the project objectives
you are the project manager for a seller but you are managing another companys project as well. things have gone well on the project and the work is nearly complete. there is still a significant amount of funds in the project budget. the buyers representative approaches you and asks that you complete some optional requirements to use up the remaining budget. you should do which one of the following?
submit the proposed change through the contract change control system - any additional work is a change in the project scope. changes to the project scope should be approved by the mechanisms in the change control system. the stakeholders need to approve the changes to the project scope
You are the project manager of the HQQ project and part of your requirement in this role is to create a risk management plan. Which of the following is not part of a risk management plan?
technical assessment board compliance - the technical assessment board may be used as part of the change control system. It is not relevant to risk management planning
you are the project manager for the hhn project you are working with the project stake holders including the project team and the project sponsor to identify risks within the project. the project sponsor wants to know which tools youll use to identify them. which one of the following is an acceptable tool for risk identification?
the Delphi technique - the delphi technique is an anonymous risk identification method
thomas is the project manager for his organization and he is preparing the procurement process for his project. several enterprise environmental factors and organizational process assets assist thomas in making the vendor selection. in the enterprise environmental factors are several evaluation criteria that thomas must consider when he chooses a vendor for the project. which one of the following is not a valid evaluation criterion for source selection?
the age of the contact person at the seller - the age of the contact person at the seller should not influence the source selection
you are the project manager for a company that completes the installation of electrical fixtures in manufacturing environments. part of your typical contractual agreement included coverage of intellectual rights and privity. privity is what?
the contractual, confidential information between customer and the vendor
how does the issue log help you prepare to control stakeholder engagement?
the issue log will help you track and respond to issues and communicate issue status
gary is a project manager for his organization and hes evaluating the risks within his project. some of the risk events have a high impact while other risk events have low probability. in this project many risks have high risk impact scores but an overall low risk score. how is this possible?
the probability of each risk is low - a risk can have a very high impact on the project but inversely have an extremely low probability score. for example the possibility of a tornado wrecking the projects construction site would have a high impact if it happened but the probability of it happening is relatively low
the stakeholder management plan includes all of the following except....
the relationships among the project team
mary is the project manager of the jhg project. she has created a contract statement of work for a vendor. all of the following should be included in the contract sow except for which one?
the signatures of both parties agreeing to the sow - a signature of both parties agreeing to the sow is not required. that stipulation will be included in the contract
a project manager and the project team are actively monitoring the pressure gauge on a piece of equipment. sarah, the engineer recommends a series of steps to be implemented should the pressure rise above 80 percent. the 80 percent mark represents what?
the threshold
hans is a project manager for his organization, and hes working with his sponsor to identify the organizations risk tolerance. understanding the risk rolerance and any associated enterprise environmental factors will help hans and the project team plan for risk responses. an organizations risk tolerance is also known as what?
the utility function - the utility function describes a persons willingness to tolerate risk
the wbs and the wbs dictionary can help a project manager plan for purchases and acquisitions. which one of the following best describes this process?
the wbs defines the requirements for acceptance of the project. this information also serves as valuable input to the process of determining what needs to be procured. the wbs defines what the end result of the project will be. in dealing with vendors to procure a portion of the project the work to be procured must support the requirements of the projects customer
a project manager is considering the marketplace and how it may affect the pricing on the procured portion of her project. she determines that in her market there is only a single source seller. a single source seller means what?
there is only one seller the company wants to do business with
in your organization all project procurement must pass through a centralized contracting office. all correspondence between you and the vendors must be recorded and stored as part of the procurement records management system. these rules also provide instructions for the projects procurement document packages from procurement planning through contract closure. which one of the following is true about procurement document packages?
they ensure the receipt of complete proposals - procurement document packages detail the requirements for the work to ensure complete proposals from sellers
you are the project manager of the ghk project. you and the manufacturer have agreed to substitube the type of plastic used in the product to slightly thicker grade should there be more than a 7 percent error in production. The thicker plastic will cost more and require that the production slow down but the errors should diminish. this is an example of which of the following?
threshold - a error of 7 percent represents the threshold under which the project is allowed to operate. Should the number of errors increase beyond 7 percent the current plastic will be substituted.
you are the project manager of the kjhl project. this project will last two years and has 30 stakeholders. how often should risk identification take place?
throughout the project - risk identification happens throughout the project. recall that planning is iterative as the project moves toward completion new risks may surface that call for identification and planned responses
risk identification is an iterative process in the project and it requires participation from the project manager, the project team and other key stakeholders. because of the nature of risk when should risk identification happen?
throughout the project life cycle - risk identification is an iterative process that happens throughout the project life cycle
benji is the project manager of lpl project. he has hired an independent contractor for a portion of the project work. the contractor is billing the project 120 per hour plus materials. this is an example of which one of the following?
time and materials - the contractors rate of 120 per hour plus the cost of the materials is an example of a time and materials contract
what is the purpose of the stakeholder management plan?
to manage the stakeholders attitudes towards the project - the stakeholders management plan essentially creates a strategy to manage the stakeholders attitudes towards the project.
you are the project manager of a large software deployment project for your organization. this project will replace the operating systems on the computers of the employees. many of the employees are in favor of the change in operating systems while others are not. as part of your plan you complete an analysis of the stakeholders. in this analysis you and the project team have discovered that some of the project stakeholders didnt know about the change. how would you classify these stakeholders?
unaware - stakeholders who dont know about your project are classified as unaware
a project risk is a ______ occurrence that can affect the project for good or bad.
uncertain - risks are not planned they are left to chance. the accommodation and the reaction to a risk can be planned but the event itself is not planned
a contract between an organization and a vendor may include a clause that penalizes the vendor if the project is late. the lateness of a project has a monetary penalty. this the penalty should be enforced or waived based on which one of the following?
who caused the delay and the reason why - the party that caused the delay is typically the party responsible for it. it wold not be acceptable for the project manager to cause a delay willingly and then penalize the contractor because the project was late.
you have been working on a new project that will affect your entire organization of 1233 people. you and the project team know that you should create stakeholder register for the stakeholders but is it necessary to create 1233 entries in this register?
yes it is appropriate to group the stakeholders for easier management
