MAN 4583 Mod 7,8,9,10
Your project is officially completed when your team
Closes all the accounting codes
All of the following are post-project objectives except ___________.
Closing the WBS
A ____ is an alternative that will be used if a possible foreseen risk event becomes a reality
Contingency plan
Which of the following is true of quality assurance?
Convinces stakeholders that the project is well planned
Of the following types of contracts - which has the HIGHEST risk for the buyer ? A. Cost plus Incentive fee - CPIF B. Time and Material - T and M C. Firm Fixed Price Contract - FFP D. Fixed Price Incentive Fee Contracts - FPIF
Cost plus Incentive fee - CPIF
All of the following roles belong to the customer unit EXCEPT
Customer analyst
What is the role of the Project Manager in Procurement ? A. Ensure contract contains all the project management requirements such as status reporting , meeting attendance and communication needs B. Ensure contract is satisfying the needs of the project C. Control changes to the contract D. All of the above
D. All of the above
Your company has won a large project for one of the fund houses to administer their funds.The project work has been going on smoothly and the customer has been singing praises about the work done so far.The client has planned a visit the next month to go over the plans for the next phase of the project as well as to meet with the project team.Your senior management realizes that this client could potentially need additional capabilities in the derivatives segment.Your company happens to have a strong exposure to this segment having executed numerous such projects.Your senior manager also invites key managers from the derivatives segment to showcase the organizations abilities in the derivates vertical - this is an example of ? A. Mitigating the risk B. Avoiding the risk C. Transferring the risk D. Exploiting the risk
D. Exploiting the risk
___ is a measure of how easy it would be to notice that a risk event was going to occur in time to take mitigating action, that is, how much warning you would have
Detection difficulty
Ways to manage project risk
Develop a risk management plan 1. Identify risks 2. Perform qualitative & quantitative risk analysis 3. Risk response plans 4. Risk register
You are project manager for an organizational restructuring project with a team of 7 consultants. The goal of the current phase is to develop 105 job descriptions within 7 business days. That means, the goal is to develop 15 job descriptions each day. Based on the burden rate of your consultants, it costs $100 to develop one job description. On the 4th day, your team has worked the equivalent of $5,500 to develop 45 job description. You are using the 0/100 rule to measure earned value for a work element. What is the cost variance?
-$1000
You are project manager for an organizational restructuring project with a team of 7 consultants. The goal of the current phase is to develop 105 job descriptions within 7 business days. That means, the goal is to develop 15 job descriptions each day. Based on the burden rate of your consultants, it costs $100 to develop one job description. On the 4th day, your team has worked the equivalent of $5,500 to develop 45 job description. You are using the 0/100 rule to measure earned value for a work element. What is the schedule variance?
-$1500
If earned value is 350, actual cost is 400, and planned value is 325, what is the cost variance?
-50
You are working on a project to design a new software for your company to use. Creating the software involves an extensive amount of high level coding. This yields for a potentially high risk. How long should your sprints be?
1 week
3 steps in Understanding Risks
1. Hold a brainstorming session 2. Industry specific risk categories 3. Look at WBS and identify risks by tasks or group of tasks
Sally receives the following information on her project: PV=100, AC=75, EV=100. How well is the project doing in terms of budget?
25 under budget
Which of the following is your least important risk? Risk/Probability/Impact A 50% $90,000 B 75% $100,000 C 25% $200,000 D 40% $160,000
A 50% $90,000
A key distinction between a risk response and a contingency plan is
A risk response is part of the actual implementation plan and action is taken before the risk can materialize, while a contingency plan goes into effect only after the risk has transpired
Your company has bagged a number of government contracts dealing with setting up infrastructure. This includes setting up roads and bridges. This is a very big and prestigious project so your company would like to ensure everything is planned well in advance. You are the project manager of this project. Considering its importance - you and your team come up with a list of risks. One of the subject matter experts indicates that during the months of July and August the construction work of the bridge across the river would need to stop on account of past history of flooding of the river. You agree with the expert and plan the schedule accordingly. What strategy did you just apply ? A. Accept B. Exploit C. Mitigate D. Transfer
A. Accept
You are project manager for an organizational restructuring project with a team of 7 consultants. The goal of the current phase is to develop 105 job descriptions within 7 business days. That means, the goal is to develop 15 job descriptions each day. Based on the burden rate of your consultants, it costs $100 to develop one job description. On the 4th day, your team has worked the equivalent of $5,500 to develop 45 job description. You are using the 0/100 rule to measure earned value for a work element. What is the planned value on day 4?
$10,500
You are project manager for an organizational restructuring project with a team of 7 consultants. The goal of the current phase is to develop 105 job descriptions within 7 business days. That means, the goal is to develop 15 job descriptions each day. Based on the burden rate of your consultants, it costs $100 to develop one job description. On the 4th day, your team has worked the equivalent of $5,500 to develop 45 job description. You are using the 0/100 rule to measure earned value for a work element. What is the earned value on day 4?
$4500
While planning for a project you decide to keep a good grip over project risks.You and your team members have come up with the list of possible risks and would now like to prioritize them based on their probability and impact.This activity would take place in which process? A. Perform Qualitative Risk Analysis B. Perform Quantitative Risk Analysis C. Risk Identification D. Risk Register
A. Perform Qualitative Risk Analysis
You are managing a project and to ensure things run smoothly - you have decided to provide project information periodically to all the stakeholders.You have decided that you would report against the baselines for scope , cost and schedule.Which of the following would be the best choice ? A. Performance reporting B. Status reports C. Forecasts D. Risk Register
A. Performance reporting
You are negotiating with a contractor for additional staff augmentation - a number of software developers and a few testers .As a buyer you don't quite have the exact statement of work ready.What kind of contract is MOST appropriate for this kind of work ? A. Time and Materials - T& M B. Cost plus fixed fee - CPFF C. Firm Fixed Price Contract - FFP D. Fixed Price Incentive Fee Contracts - FPIF
A. Time and Materials - T& M
You are hiring an intern to work with your team on a new project. There is a risk that they intern will make mistakes throughout the project since they are still learning. What would be the best risk response?
Accept
Which of the following groups should NOT be a part of the risk identification process?
All of these groups can be included in the risk identification process
All of the following are full-time roles in the development unit EXCEPT
Architect
After your team has successfully identified potential risks that could affect the project, what is the next step
Assess identified risks
Tools such as a risk assessment form and a risk severity matrix are used to
Assess risks
For your construction project, the architect's design isn't fit for the purpose of the structure. There is a chance that if your team builds the structure, it will not last as long as intended. What would be the best risk response?
Avoid
Adopting proven technology instead of experimental technology in order to eliminate technical failure would be an example of which risk response?
Avoiding
Choosing to move a concert indoors to eliminate the threat of bad weather is an example of ____ a risk
Avoiding
When considering risk response development, changing the plan to eliminate the risk or condition is known as ____ the risk
Avoiding
The value that tells you the planned value of work that has actually been completed is the:
EV
The cost variance for a project is calculated by
EV-AC
Which of the following methods will measure the cost efficiency of the work accomplished to date?
EV/AC
Which of the following represents the estimated value of the work actually accomplished?
Earned Value
Which of the following is TRUE about quality control?
Ensure that the deliverable meets required specifications
You are project manager for an organizational restructuring project with a team of 7 consultants. The goal of the current phase is to develop 105 job descriptions within 7 business days. That means, the goal is to develop 15 job descriptions each day. Based on the burden rate of your consultants, it costs $100 to develop one job description. On the 4th day, your team has worked the equivalent of $5,500 to develop 45 job description. You are using the 0/100 rule to measure earned value for a work element. What is the actual cost on day 4?
$5500
You are project manager for an organizational restructuring project with a team of 7 consultants. The goal of the current phase is to develop 105 job descriptions within 7 business days. That means, the goal is to develop 15 job descriptions each day. Based on the burden rate of your consultants, it costs $100 to develop one job description. On the 4th day, your team has worked the equivalent of $5,500 to develop 45 job description. You are using the 0/100 rule to measure earned value for a work element. What is the budget at completion?
$6,000
The risk management plan should be created prior to a ________
Baseline Schedule
Roger want to gather meaningful lessons learned from his team. How can he ensure that he receives this information from his team?
Be positive when wording questions
Which of the following statements are false regarding Risk Management? A. All identified risks are maintained in the Risk Register. B. Risk prioritization occurs in Qualitative Risk Analysis. C. Risk prioritization occurs in Quantitative Risk Analysis. D. Low priority risks are maintained in a Watch List.
C. Risk prioritization occurs in Quantitative Risk Analysis
You have replaced an earlier project manager in a project .The earlier project manager has left the organization and you are now responsible for the project. On reviewing the project management plan you are disturbed because a number of procurement contracts have been signed and they all turn out to be Cost plus fixed fee types of contracts - why are you worried ? A. All the risk is now with the seller B. Contracts should always be T and M C. Seller has no motivation to control cost and in fact cost could spiral D. Contracts should always be Fixed Price
C. Seller has no motivation to control cost and in fact cost could spiral
___ systems involve reporting, controlling, and recording changes to the project baseline
Change management.
Waterfall project management differs from Agile project management in that
It requires a high degree of certainty
An analysis carried out during and shortly after the project life cycle that attempts to capture positive and negative learning is represented in which of the following?
Lessons learned
Risks are evaluated in terms of
Likelihood and impact
___ reserves are controlled by the project manager and the owner of the project and are used to cover major unforeseen risks to the entire project
Management
Which of the following is identified to cover major unforeseen risks and, hence, are applied to the total project
Management Reserves
Testing a new project on a smaller isolated area prior to installing it for the entire organization is an example of ____ a risk
Mitigating
When considering risk response development, reducing the likelihood that an event will occur and/or reducing the impact that an adverse event would have on a project is known as ____ the risk
Mitigating
Specific features are created using Scrum methodology according to four distinct phases. Which of the following is NOT one of these phases?
Monitor
The risk response plans should have _______ owner(s
One
A CPI or SPI value less than one indicates that the project is
Over cost or behind schedule
The earned value system starts with the time-phased costs that provide the project baseline, which is called the
Planned budgeted value of work scheduled
The point in time when project execution gives way to project closing is when the _____________ accept(s) the project deliverable.
Primary customer
What are two important basic concepts at the core of any type of project risk analysis?
Probability and Impact
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:
Product owner
The scrum master is like a:
Project manager
You need to hire someone to come paint a large building after your normal vendor went out of business. You aren't sure what other vendors are out there. What form would you use?
RFI
Which of the following forms is best to use when you are looking to purchase new hard hats and don't need additional information from the vendor or partner?
RFQ
Agile project management requires __________ amounts of planning as compared to waterfall project management.
Relatively the same, both requiring ample
Flooding would be devastating to the project; however, it is very unlikely. The project manager is most likely to ____ this risk
Retain
The risk associated with the unlikelihood that one of the key members will be struck by lightning would most likely be handled by which of the following
Retaining
When considering risk response development, assuming the risk because the chance of such an event is slim is known as ____ the risk
Retaining
An uncertain event or condition that, if it occurs, has a positive or negative effect on project objectives is termed a
Risk
The first step in the risk management process is ____
Risk Anticipation
The ____ form identifies each risk event, the likelihood of it occurring, the potential impact, when it may occur, and the degree of difficulty in detecting it
Risk Assessment
The attempt to recognize and manage potential and unforeseen trouble spots that may occur when a project is implemented is known as
Risk Management
A document that describes how project risk management will be structured and performed on a project
Risk Plan
A list of questions that address traditional areas of uncertainty on a project is known as a
Risk Profile
The ____ matrix is divided into red, yellow, and green zones representing major, moderate, and minor risks
Risk Severity
Which of the following is NOT one of the steps in the risk management process
Risk Tracking
You are out for lunch with a fellow project manager. She is in charge of a project that deals with laying out electrical cables across two towns. As you understand the plan of the layout - you realize that the cabling would cover a neighborhood with a history of criminal problems. You advise your fellow team manager that it would be prudent to insure the copper cables through a theft insurance. You also advise her regarding which insurance companies would give her the best insurance covers against theft. What risk response strategy did you just adopt? A. Risk mitigation B. Risk avoidance C. Risk transfer D. Risk acceptance
Risk Transfer
According to the Failure Mode and Effects Analysis (FMEA), Impact x Probability x Detection = ____
Risk Value
Organizations use ____ in conjunction with work breakdown structures to help management teams identify and eventually analyze risk
Risk breakdown structures
Nancy tells her supervisor that as of right now, $1.05 worth of work has been accomplished for each $1 worth of scheduled work. Nancy got this information from viewing the
SPI
A key tenant of Agile PM is that ___________.
Something of value will be delivered at the end of each sprint
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
All of the following roles belong to the customer unit Except: A. customer analyst B. business analyst C. subject matter expert D. product owner
Subject matter expert
The indicator that tells you the amount each remaining dollar must earn in order for the project to stay within budget is the
TCPI
Which of the following defines risk mitigation?
Taking action that will cause the risk to do as little damage to the project as possible
Risks that can result in a system or process that will not work are known as
Technical risks
A cost performance index (CPI) of 0.89 means
The project is getting 89 cents out of every dollar invested
Jessica just received the following information on her project: PV =200, EV=300, AC=250, BAC=1500, EAC=1208. In terms of cost at completion
The project will currently finish under budget
For your project, you want to hire a software engineer to assist with some tasks. What type of contract would be best for this procurement?
Time and Materials Contract (T&M)
Which of the following document is the best place to find the planned value (cost) of different periods within the project? A. Schedule B. Cost estimates C. Time-phased budget D. Charter
Time-phased budget
Performance bonds, warranties, and insurance are examples of ____ a risk
Transferring
Purchasing an accident insurance policy would be an example of responding to a risk by ____ it
Transferring
When considering risk response development, passing risk to another party instead of changing it is known as ____ the risk
Transferring
A fixed price contract is an example of
Transferring risk
The event or point in time when a contingency plan will be implemented is called a ____
Trigger
A risk profile is a list of questions that have been developed and refined from previous, similar projects
True
Budget reserves are set up to cover identified risks associated with specific segments of a project while management reserves are set up to cover unidentified risks associated with the total project
True
Contingency funding is made up of budget reserves and management reserves
True
One common mistake that is made early on in the risk identification process is to focus on consequences and not on the events that could produce consequences
True
The probability that a risk event will occur is higher during the initial stages of a project
True
What is the difference between vendors and partners
Vendors are used when you know exactly what you want
In which of the following types of projects would agile project management be appropriate?
Video game development
A Risk Response Matrix contains all of the following EXCEPT
When the risk will occur
A schedule performance index (SPI) of 0.76 means:
You are progressing at 76 percent of the rate originally planned
What is a benefit of using vendors for procurement?
You don't have to maintain relationships
When a project manager reduces the intensity of the conflict by smoothing over differences or interjecting humor when dysfunctional conflict arises, they are attempting to _________ the conflict.
control the conflict
Responses to all identifiable risks should be a top priority for the project manager
False
Risk management is a reactive approach that is designed to ensure that surprises are reduced and that negative consequences associated with undesirable events are minimized
False
The project being delayed is an example of a major risk that should be assessed
False
The risk identification process should be limited to just the core project team
False
Something that will probably happen and will have a significant impact on the project will score _____ and ______on the risk assessment.
High,high
The initial step in the risk management process is to
Identify risks
Which of the following is NOT one of the potential responses to a specific risk event
Ignoring
As a manager on a project your key outlook is to ensure that the project delivers within the scheduled timelines with minimal rework and customer delight.For some time now the project work is proceeding smoothly with a CPI and SPI a perfect 1.One of your team members approaches you and indicates that she might possibly need a long vacation on personal grounds.She indicates this could possibly occur in two months from now.You look up the schedule and as luck would have it - this team member happens to be scheduled to execute activities which are on the critical path - and her absence in two months time would cause a delay in schedule.You decide to take some action and reschedule task allocation to ensure that this team member is not planned to work on any of the critical path activities.What did you just do ? A. Mitigate the risk B. Avoid the risk C. Transfer the risk D. Exploit the risk
B. Avoid the risk
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 a contract would be the best choice ? A. Cost-reimbursable contract B. Fixed-price contract C. T and M contract D. None of the above
B. Fixed-price contract
Funds that are for identified risks that have a low probability of occurring and that decrease as the project progresses are called ______ reserves
Budget
____ reserves are identified for specific work packages and are distributed by the project manager and the team members.
Budget
You are looking for to purchase high quality glass for a new technology that your team is developing. You are trying to build product that puts you further ahead of your competition. You find a vendor that provides a type of glass that you really like. What would you do?
Build a product instead of going through a vendor
Of the following types of contracts - which has the HIGHEST risk for the seller ? A. Cost plus fixed fee - CPFF B. Time and Material - T and M C. Firm Fixed Price Contract - FFP D. Cost plus Incentive fee - CPIF
C. Firm Fixed Price Contract - FFP
For your project, you want to purchase Smart boards for the team to use. What type of contract would be best for this procurement?
Fixed Contract
Which type of contract has the highest level of risk for the vendor or service provider?
Fixed contract
One common mistake made early in the risk identification process is to
Focus on consequences and not on the events that could produce consequences.
When planning for a sprint, what do you do to gain commitment from the entire team?
Get team members to commit to what they think they can complete
All of the following are ways to control risk EXCEPT: A. Have one team member be responsible for monitoring big risks B. Develop a response plan prior to an incident occurring C. Assign team members to monitor risks D. Periodically identify if new risks surface
Have one team member be responsible for monitoring big risks
When a project is closed, what additional responsibilities does the project manager have?
Help team members find new jobs/projects
