1 - Project Integration Management - Test

What is the most common reason companies initiate a project?

* Customer Request Other reasons: - Market Demand or Business need - Technological advance - Legal requirement or ecological impact - Social need

What are the outputs of Perform Integrated Change Control?

- Approved Change Requests - Change Log - PMP Updates - Project Document Updates

What are the 2 types of Project Selection Methods (PSM)?

- Business based - Financial based

What are the outputs for Monitor & Control Project Work?

- Change requests - Work performance reports - PMP updates - Project document updates

What are 3 Configuration Management activities?

- Configuration Identification - breaking down project deliverables into individual configuration items and creating a unique numbering system - Configuration Status Accounting - Recording events which have happened to a system under development to allow comparison with the development plan and provide traceability - Configuration Verification and Audit - Intended to demonstrate the products produced conform to current specifications and all procedures have been followed

What are the outputs for Direct & Manage Project Work?

- Deliverables - Work performance data - Change requests - PMP updates - Project document updates

What are the processes involved in the Integration Management process group?

- Develop Project Charter - Develop Project Management Plan - Direct and Manage Project Work - Monitor and Control Project Work - Perform Integrated Change Control - Close Project or Phase

What is the purpose of a Cost Benefit Analysis (CBA)?

- Enables the financial viability to be measured - Confirms why the forecasted cost and time will be worth the investment - Should justify the project based on estimated costs and value of the projected benefits

What are the tools and techniques for Close Project or Phase?

- Expert Judgement - Analytical Techniques - Meetings

What are the tools and techniques of Perform Integrated Change Control?

- Expert Judgement - Meetings - Change Control Tools

What are the tools and techniques for Develop Project Management Plan?

- Expert judgement - Facilitation techniques

What are the tools and techniques for Direct & Manage Project Work?

- Expert judgement - Project Management Information Systems - Meetings

What are the tools and techniques for Monitor & Control Project Work?

- Expert judgement - Analytical techniques - Project Management information systems - Meetings

Tools & Techniques for Develop Project Charter

- Expert judgement - Facilitation techniques

What are the outputs for Close Project or Phase?

- Final Product, Service or Result Transition - Updates to OPA

What does the project charter do?

- Formally authorizes the project - Names the project manager and provides them with the authority to use the organization's resources to accomplish project objectives - The project does not exist without a charter

What is the purpose of the Project Management Plan?

- Guide the team in its execution, monitoring, and control of the project - Aid stakeholder understanding by communicating the team's intentions - Is a living document - Must have buy in of key stakeholders

What is documented in a Project Charter?

- High level requirements (scope) - Summary milestone schedule (time) - Summary budget (cost) - PM name - Project sponsor's name and signature Serves to inform stakeholders

What are the 3 main types of meetings for Direct & Manage Project Work?

- Information exchange - Brainstorming - Decision making

What are the inputs to Develop Project Management Plan?

- Project Charter - outputs from other processes - EEF - OPA

What are the inputs for Close Project or Phase?

- Project Management Plan - Accepted Deliverables - OPA

What are the inputs of Perform Integrated Change Control?

- Project Management Plan - Work Performance Reports - Change Requests - EEF - OPA

What are the inputs for Direct & Manage Project Work?

- Project Management Plan - Approved change requests - EEF - OPA

What are the inputs for Monitor & Control Project Work?

- Project Management Plan - Schedule forecasts - Cost forecasts - Validated changes - Work Performance information - EEF - OPA

Every documented change request must be either approved or rejected by...

- Project Sponsor - Project Manager - Appropriate Stakeholder - Change Control Board (CCB)

What are 3 examples of Analytical Techniques?

- Regression Analysis - Grouping Methods - Causal Analysis

What's re the inputs of Develop Project Charter?

- SOW - Business Case - Agreements - EEF - OPA

How many Management plans are there?

9 - One for each knowledge area except for Integration 4 - other area management plans: Change, Configuration, Requirements Management Plan and Process Improvement Plan

What is a Cost Forecast?

A calculated EAC or a Bottom-up estimate which is documented and communicated to Stakeholders - Date is derived from EVM - CV and Cost Performance Index (CPI) - Comparing the Estimate to Complete to the Budget at Completion is also useful - Usually based on the progress of the project as measured against the Cost Baseline

What is a Project Management Plan

A single guide to project execution comprised of management plans, baselines and other documents Serves as the foundation for project work

Expert judgement is always...

A tool or technique

This is used to establish the legal framework in which the project is to be conducted

Agreements Can be verbal, email or other written documents - Buyer agreements serve as an output of the Conduct Procurements process - Seller agreements are an Input of the Develop Project Charter process

The person or group responsible for evaluating change on ap roject is: A. Change control board B. The sponsor C. The project team D. The program manager

Answer - A

Approved corrective action is an input to A: Verify scope B. Direct and manage project execution C. Develop Project charter D. Develop Schedules

Answer - B

If you are creating a single document to guide project execution, monitoring and control and closure, you are creating: A. The execution plan B. The project management plan C. The integration plan D. The project framework

Answer - B

When changes are approved and made to the project, they should be: A. Tracked against the project baseline B. Incorporated into the project baseline C. Included as an addendum to the project plan D. Approved by someone other than the project manager

Answer - B

Change control meetings are held as part of which process: A. Direct and Manage Project Execution B. Monitor and Control Project Work C. Perform Integrated Change Control D. Evaluate Requested Changes

Answer - C

The output of Direct and Manage Project Execution process is A. The work packages B. The project management information system C. The deliverables D. The work breakdown structure

Answer - C

You are a new project manager who has never managed a project before. You have been asked to plan a new project. It would be BEST in this situation to rely on ____ during planning in order to improve your chance of success. A. Your intuition and training B. Stakeholder analysis C. Historical information D. Configuration management

Answer - C

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

Answer - C Both B & D delay the project. Prevent the situation by sharing the impacts / consequences

A defect in the product was brought to the project manager's attention and now the project team is engaged in repairing it. Which project management process would be the most applicable to this? A. Perform Integrated Change Control B. Monitor and Control Project Work C. Direct and Manage Project Execution D. Close Project or Phase

Answer - C - as it is also including fixing it / doing work

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

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

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

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

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

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

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

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

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

Answer A Straight line depreciation uses the same amount each time period.

18. The project charter for a project was approved for planning and you have just been assigned as project manager. Realizing that project planning is an ongoing effort throughout the project, which processes are you MOST likely to combine? A. Create WBS and Define Activities B. Estimate Activity Durations and Develop Schedule C. Develop Human Resource plan and Estimate Costs D. Estimate Costs and Determine Budget

Answer A The Create WBS process consists of subdividing major project deliverables (scope) into smaller, more manageable work packages. The Define Activities process defines the activities that must take place to produce those deliverables.

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

Answer A The project charter (choice B) is created in initiating. The project management plan (choice C) is an output of the planning process group. You have not seen the term risk analysis plan (choice D) in this book, so it is unlikely to be the best answer.

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

Answer B Choice A could be done, but notice that it is not proactive? It would be helpful to get to the root cause of why this department always comes up with such ideas or changes after the project begins. However, this is not the immediate problem: the change is, and therefore choice A is not best. The type of project organization described is a matrix organization. There is not anything inherently wrong with such an organization, nor is there anything wrong in this particular situation that would require it to be changed, so choice C cannot be best. The department's history makes choice D something that should definitely be done, but the proposed change needs more immediate attention. Only choice B begins integrated change control by looking at the impact of one change on other project constraints.

11. Approved corrective action is an input to: A. Verify Scope B. Direct and Manage Project Execution C. Develop Project Charter D. Develop Schedule

Answer B Choice B is the only correct response.

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

Answer B Integration refers to combining activities, not team members (choice D). Could the project manager smash two team members together and create one big team member? (I just wanted to see if you are still laughing about this PMP thing!)

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

Answer B Sunk costs (choice B) are expended costs. The rule is that they should not be considered when deciding whether to continue with a troubled project.

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

Answer B The best thing to do would be to show the impact. This is the only choice that prevents future problems-always the best choice. The other choices just pretend the problem does not exist.

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

Answer B The project manager is asking how to make a change. The procedures, forms, sign-offs, and other similar requirements for handling changes should have already been defined in the change management plan (choice B). Because they weren't, the project manager will waste valuable work time trying to figure it out after the fact.

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

Answer B This situation implies that there are six areas concerned with this project. In addition to added communications requirements, you should be concerned with competing needs and requirements impacting your efforts on configuration management.

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

Answer B Who does each activity (choices A and D) is managed with the schedule and responsibility assignment matrices. The project schedule manages when each activity is done (choice C). A work authorization system is used to coordinate when and in what order the work is performed so that work and people may properly interface with other work and other people.

Project Management Plan Updates are NOT an output of: A. Perform Integrated Change Control B. Develop Project Plan C. Direct and Manage Project Execution D. Close Project or Phase

Answer B - before the plan happens!!

You are meeting with a new Project Manager who has taken over a project that is in the middle of executing. The previous project manager has left the company and the new project manager is upset that the change reports are streaming in from numerous sources including his boss, the customer and various stakeholders. The project manager is not even aware of how to process all of these incoming change requests. Where would you refer him? A. Project Scope Statement B. Project Management Plan C. The previous project manager D. Project Charter

Answer B - guides the ENTIRE project

The project charter is: A. Developed before the project statement of work, and after the project management plan. B. Developed after the project statement of work and before the project management plan C. Developed before the contract and after the project management plan D. Developed before the project and before the project management plan

Answer B. Contract is an input to the charter, so contract HAS to be first.

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

Answer C

Producing a Project Plan may BEST be described as: A. Creating a network logic diagram that identifies the critical path. B. Using a software tool to track schedule, cost & resources C. Creating a document that guides project plan execution D. Creating a plan that contains the entire product scope

Answer C

13. You are a new project manager who has never managed a project before. You have been asked to plan a new project. It would be BEST in this situation to rely on ____ during planning in order to improve your chance of success. A, Your intuition and training B. Stakeholder analysis C. Historical information D. Configuration management

Answer C Because you have no experience, you will have to look at the experience of others. This information is captured in the historical records from previous projects.

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

Answer C Before you can do anything else, you have to know what YOU are going to do. Developing the management strategy will provide the framework for all the rest of the choices presented and the other activities that need to be done.

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

Answer C Choices B and D are essentially delaying the situation. Instead, the project manager should try to prevent the situation by showing the consequences if the resources are not available (choice C). This is a more effective strategy than saying "but you gave them to me," as in choice A.

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

Answer C Do you remember what to do when there is a change? Evaluate first. You wouldn't take action before getting approval, so compressing the schedule (choice A) and cutting scope (choice B) would happen after choices C and/or D. You would not go to the customer before going to YOUR internal management, so choice D is not the correct thing to do next. The next step is to discuss options with the sponsor (choice C).

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

Answer C Notice how many situations are thrown at you in this question. It is important to practice reading through questions to discover what is important and what is just background information. In this question, the only thing relevant was the corrective action taken. Once you discover what the issue is, look at the choices to find out which is best for addressing the issue. What is the issue here? Did you realize that the team member's note is about a non-critical path activity? ("Until the project float is in jeopardy" means that there is float and, thus, it is not on the critical path.) So is the issue the non-critical path activity or the documentation? You might disagree with the logic, but in this case, the answer is the documentation. In the real world, problems often repeat. Without a record of what was done, there is no opportunity to consider the same solution for future problems. Documentation is critical to projects. Because documentation becomes part of the historical records database, choice C is correct.

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

Answer C Remember, the internal rate of return is similar to the interest rate you get from the bank. The higher the rate is, the better the return.

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

Answer C The exam will ask questions like this to make sure you know the benefits you should be getting out of the process and tools of project management. The details of what needs to be done (choice A) are found in the WBS dictionary. The names of team members (choice B) are included in the responsibility assignment matrix and other documents. Project history (choice D) is found in the lessons learned and other project documents.

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

Answer C The project management plan contains more than just a bar or Gantt chart and the project manager's plan for completing the work. It includes all the management plans for the project.

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

Answer C The project manager is an integrator. This is a question about your role as an integrator and communicator.

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

Answer C The sponsor issues the project charter and so he or she should help the project manager control changes to the charter. The primary responsibility lies with the sponsor.

5. A project manager has managed four projects for the company and is being considered to join the project management office team. The following is discovered during the evaluation of his performance. The project manager's first project had an ending cost variance of -500, used two critical resources, needed to rework the project charter during project executing and was ranked 14th in priority within the company. The second project finished with a schedule variance of +100. was completed with a vastly compressed schedule, and received a letter of recommendation from the sponsor, but the product of the project was not used. The third project had 23 percent more changes than expected, had an SPI of 0.90, and 25 open items in the issue log when the project was completed. Each of these projects had a cost of $1,000 and 20 to 28 percent more changes than others of its size. The project management office decided to not add this project manager to the team. Which of the following BEST describes why this might have happened? A. The project manager has only managed low-priority projects, and he had to compress the schedule, showing that he does not have the skill to work in the project management office B. Issue logs should not be used on projects of this size, showing that the project manager does not have the knowledge to work in the project management office C. The project manager did not effectively involve the stakeholders, showing that he does not have the knowledge to work in the project management office D. The project manager had two critical resources on his team and still needed to rework the project charter, showing that he does not have the discipline to work in the project management office

Answer C This is a very confusing question. Notice all the distracters that may or may not be relevant? Since most project schedules are compressed by the project manager during project planning, choice A is not a logical reason and so cannot be the best choice. Issue logs can be used on smaller projects, which means choice B is not the best choice. The number of critical (or hard- to-get) resources noted in choice D has no bearing on the need to rework the project charter. Since it does not make logical sense, it cannot be the best choice. Take another look at the second and third projects. In the second project, the product of the project was not used. This implies many things, induding the possibilities that either the project manager did not identify the requirements of all the stakeholders or that the business need of the project changed dramatically and the project manager did not notice. This indicates a major flaw in the project manager's abilities. In the third project, there were 25 concerns of the stakeholders that were not addressed before the project was completed. Again, this shows a major lack of project management knowledge. The needs of the stakeholders and not just the sponsor must be taken into account on all projects. This makes choice C the best choice.

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

Answer C This question is asking for the most important of the choices. Think about what is involved in integration: project management plan development, project management plan execution, and integrated change control. In order to integrate the project components into a cohesive whole, communication is key when one activity will interface with another, one team member will interface with another, and any other form of interfacing will occur. Choices B and D are parts of the monitoring and controlling process group, while integration indudes more than control. Choice A falls under project management plan execution.

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

Answer C We need to know that double declining balance is a form of depreciation. That eliminates choice D. We also know that double declining balance is a form of accelerated depreciation, eliminating choices A and B. Therefore, C is the correct response.

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

Answer D A change management plan indudes the processes and procedures that allow smooth evaluation and tracking of changes. Lessons learned (choice D) are reviews of the processes and procedures to improve them; they are not part of the system.

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

Answer D A project control system (choice D) is set up during the planning process group, not during project executing. Did choice B confuse you? A WBS is created in project planning, but can be used to help manage the project du ring project executing. The wording here was not "creating the WBS" but "using the WBS".

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

Answer D A project manager must manage a project. If all activities are delegated, chaos ensues and team members will spend more time jockeying for position than completing activities.

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

Answer D As you work on a project, you need to constantly reevaluate the project objectives and how the project relates to other concurrent projects. Is your project still in line with corporate objectives? If the other project will impact yours, you need to be proactive and work on options now.

36. All of the following would occur during the Close Project or phase process EXCEPT: A. Creating lessons learned B. Formal acceptance C. Reducing resource spending D. Performing benefit cost analysis

Answer D Benefit cost analysis (choice D) is done earlier in the project to help select between alternatives. All the other choices are done during closing. Therefore, choice D must be the best answer.

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

Answer D Did you pick choice A? Then you may have forgotten that the Verify Scope process is done during the monitoring and controlling process group, not the closing process group. The other plans (choices Band C) are done earlier in the project. The lessons learned (choice D) can only be completed after the work is completed.

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

Answer D First, you need to find out why the customer is not happy. Then meet with the team and determine options.

3. Which of the following describes the BEST use of historical records from previous projects: A. Estimating, life cycle costing, and project planning B. Risk management, estimating, and creating lessons learned C. Project planning, estimating, and creating a status report D. Estimating, risk management, and project planning

Answer D Historical records are not generally used for life cycle costing (choice A), lessons learned (choice B), or creating status reports (choice C).

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

Answer D If we were to rephrase the question, it is asking, "Who creates the project management plan?" The best answer is that project management plans are created by the project manager but require input from the team.

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

Answer D Notice that the first paragraph is extraneous. Also notice that the question states that the change has already been made. Your actions will be different than if the change had not been made. It is the project managers job to investigate impacts, as the project manager is the only one who can tell how a change impacts the project as a whole. Choices A, B, and C could all be done, but they do not address the immediate concern. Choice D is the best answer since it begins the project managers analysis of the impacts to the project as a whole by finding out what analysis has already been done. He can then determine how he must finalize the analysis as it applies to the entire project. Can you see that?

The primary purpose of Project Management Plan development is to:

Create a document to guide project execution and control

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

Answer D Project managers should be proactive. The only proactive answer here is preventing unnecessary changes.

43. Your company can accept one of the three posible projects. Project A has a net present value (NPV) of $30,000 and will take six years to complete. Project B has a net present value of $60,000 and will take three years to complete. Project C has an NPV of $90,000 and will take four years to complete. Based on this information, which project would you pick? A. They all have the same value B. Project A C. Project B D. Project C

Answer D Remember, project length is incorporated when computing NPV. You would choose the project that provides the most value, in this case the project with the highest NPV.

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

Answer D The other impacts to the project should be evaluated first. Such impacts include scope, cost, quality, risk, resources, and customer satisfaction. Once these are evaluated, the change control board, if one exists, can approve or deny the change.

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

Answer D This question may seem simple, but it is really testing if you know what is a correct project charter. Choices A and B do not come until project management planning, after the project charter. A project charter may include the names of some resources (the project manager, for example), but not detailed resources (choice C).

15. You are taking over a project and determine the following: Activity B has an early finish (EF) of day 3, a late finish (LF) of day 6 and an early start of day 2. Activity L is being done by a hard-to-get resource. The cost performance index (CPI) is 1.1, and the schedule performance index (SPI) is 0.8. Based on this information, what would you be more concerned about? A. Float B. Resources C. Cost D. Schedule

Answer D You may not understand this question until you review the rest of the book. Come back to it. This question tries to integrate a lot of information and test your ability to discern what information is relevant to the question. Though some figures to calculate float are provided (choice A), there is no information to say that the float is a problem. Most projects have hard-to-get resources (choice B). The question does not give an indication that having hard-to-get resources is a problem. CPI (choice C) is greater than one, so cost is not something to worry about. SPI is less than one, so choice D is the best answer.

The project management information system would likely include all of the following EXCEPT: A. A scheduling tool B. An information distribution system C. A system for collecting information from team members D. A system for identifying stakeholders

Answer D - as that is a manual process

Who can initiate a Change Request?

Any Stakeholder involved in the project, directly or indirectly, internal or external, optional or mandated by law or contract. - Should be submitted in a written form

What is a Validated Change?

Any change or repair to a deliverable (or part of a deliverable) still in progress that has been approved - Output of the Control Quality process

What are Analytical Techniques?

Any technique used to predict conceivable outcomes based on potential variations of project or environmental variables and their relationship to other variables

Benefit-Cost Ratio formula

BCR = Benefit/Cost

What are some facilitation techniques?

Brainstorming, conflict resolution, problem solving, meeting management Always a tool or technique

What does the SOW reference?

Business need, product scope description and (if internal) strategic plan

All changes, whether approved or rejected, are updated in a:

Change Log

Focus on identifying, documenting, approving/rejecting, changes to project documents, deliverables and baselines is part of what process...

Change control

Focus on specifications of deliverables and processes is part of what process...

Configuration Control

What is opportunity cost?

Opportunity cost is the loss of potential future return from the second best unselected project. In other words, it is the opportunity (potential return) that will not be realized when one project is selected over another. The smaller the opportunity missed the better.

Review change requests, approve or reject such requests and manage approved changes is the purpose of what process?

Perform Integrated Change Control

What are the outputs for Develop Project Management Plan?

Project management plan

What is the objective in developing a business case?

Provide a justification for carrying out the project - it must show the expected costs and benefits of the project and how it fits in with the company strategy and contributes to the corporate goals of the organization

This is a formal document describing the activities, deliverables, and timescale for the performance of specified project work.

SOW

What are the 3 baselines?

Scope, Schedule, Cost

What is Internal Rate of Return?

The interest rate at which a monetary investment will return a zero Net Present Value. Bigger is better!

What is the payback period?

The number of periods to pay back a project's cost The smaller the payback period the better

Who is accountable for producing the Project Charter?

The project sponsor Often delegated to the PM

What is Work Performance Data?

The raw observations and measurements identified during activities being performed to carry out the project work - Passed on to the Monitor & Control processes of each knowledge area

What are Work Performance Reports?

The representation of Work Performance Information compiled in project documents intended to generate decisions, actions and awareness

What is the definition and formula for Present Value (PV)?

The value of a project right now PV = FV / (1 + i)^n FV = future value i = interest rate n = number of years Bigger is better!

What is Net Present Value (NPV)?

The value of a project right now with the costs added Bigger is better!

What is discounted cash flow?

The worth of money received today is more than the money received in the future Uses a compound interest calculation to reflect the cost of money by discounting future cash flows to an equivalent Present value Bigger is better!

What is the purpose of a Business Case?

To demonstrate why a project is viable in its own right and why it should be favored over others

What is the purpose of Monitor & Control Project Work?

Track, review and report the progress made in meeting the performance objectives detailed in the Project Management Plan

What is Work Performance Information?

Work Performance Data which is made useful and used to make decisions on projects - Output of the Validate Scope process

What is a Benefits Realization Plan?

Defines what the desired benefits of the project are and how to achieve them

What are Schedule Forecasts?

Estimates or predictions of conditions and events in the project's future based on the information and knowledge available at the time of the forecast. - Data is derived from Earned Value Measurements (EVM) - Schedule Variance (SV) and Schedule Performance Index (SPI) - Usually based on the progress of the project based on the Schedule Baseline

What is the purpose of the Close Project or Phase process?

Finalize the project activities of all the process groups to complete the project or phase in an organized, formal manner. Formally marks the end of project work, it also provides the opportunity to document lessons learned and orchestrate the release of resources

What is ROI?

How much return you'll make on your investment ROI = (Net Income - Cost) / Cost Bigger is better!

Changes can be submitted by any Stakeholder, but must be...

In writing

Overall change control is primarily concerned with:

Influencing factors that cause change, determining that change has occurred, and managing actual changes as they occur.

The processes and activities needed to identify, define, combine, unify, and coordinate the processes and project management activities within the various process groups is the definition of what?

Integration Management

What is Economic Value Add?

It's an internal management performance measure that compares net operating profit to total cost of capital. EVA = Net Operating Profit (after tax) - Cost of Capital Bigger is better!

What is Return on Invested Capital (ROIC)?

Looks at how the organization uses the money invested in a project ROIC = Net Income (from project) / Total Capital (invested in project) Bigger is better!