a. Test 1 Flashcards

1
Q

Jack is training a new project manager, Charles, on the procurement processes at their firm. Jack informs Charles that as the project manager, he is expected to participate in the negotiations of a contract. Charles asks why this is the case when the firm has a centralized procurement office. What should Jack’s response be?

a. The project manager always has authority over the contract terms.

b. The project manager should protect the relationship with the seller.

c. The project manager should be present only to introduce the seller to the staff in the procurement office.

A

The project manager should protect the relationship with the seller.

The project manager should participate in the negotiation stage of a contract to protect the relationship with the seller. The contract must be beneficial for the buyer and the seller to protect the quality of the project, but also the relationship between the seller and the buyer. The project manager does not always have authority over the contract terms. This is especially true if the firm has a centralized procurement office. The project manager cannot always set the price of a contract. Price is one of the key elements that is often negotiated. The buyer and seller should work together to set a price that is beneficial for both parties. The project manager will likely connect the seller to the procurement office, but the project manager’s role should be much stronger than this. The project manager should work in the negotiation stage to maintain a beneficial relationship between the buyer and seller.

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2
Q

You are having lunch with Martha, another project manager at your firm, when she mentions her team’s charter. She asks what the process is for altering a team charter. What will you tell her?

a. Altering the team charter requires an approved change request in the integrated change control process.

b. The team charter cannot be altered once the project has begun.

c. The team charter can only be altered by the project manager when the project is underway.

d. The team charter can be altered by any team member at any time.

A

The team charter can be altered by any team member at any time.

The team charter is a working document that the entire project team owns and can alter at any point in time. Making a change to the team charter does not require a change request in the integrated change control process. The integrated change control process is typically used for adjusting project management plans that include baselines such as the cost baseline. The team charter should be owned and maintained by the entire team and can be altered at any point.

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3
Q

Mikayla is a project manager with many years of experience in the construction industry. After moving into the software development industry, she is responsible for managing her first lean, agile project. What might she want to ensure her project team understands in a lean, agile project more so than in a traditional, waterfall project when planning for potential problems?

a. The definition of the problem

b. The triggers and signals of an upcoming problem

c. The roles of those involved in the problem

d. The strategy for addressing the problem

A

The triggers and signals of an upcoming problem

Overall explanation
Because agile projects are adaptive, it is more critical to be aware of triggers and signals of an upcoming problem. In agile projects, the scope is not defined for the entire project upfront, meaning the team will need to have a shared understanding of what potential problems may arise and how to get ahead of them. While understanding the definition of the problem, the roles of those involved in the problem, and the strategy for addressing the problem are all critical in any project, these are done similarly across agile projects and waterfall projects. Because waterfall projects involve more scope definition upfront, the triggers and signals of an upcoming project can be better anticipated in a waterfall project than in an agile project. Therefore, in an agile project, the team should have a greater shared understanding of what they may look for to catch an upcoming problem.

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4
Q

Liza is the project manager responsible for the success of a five-phased project. The project is mid-way through the third phase when she realizes that two major requirements compete with one another. What is should Liza use to help evaluate what requirement is best for her project?

a. The requirement that will generate the most ROI

b. The requirement that is stipulated from a stakeholder with more experience

c. The requirement that will shorten the schedule

d. The requirement that is most aligned to the project’s business case

A

The requirement that is most aligned to the project’s business case

Liza should work with the requirement that is most aligned to the business case. The requirement that will generate the most ROI, the requirement that will shorten the schedule, and the requirement coming from the stakeholder with more experience all have the potential to be unrelated to the project’s rationale. The requirement that is most aligned to the project’s business case is the requirement that is most closely related to the project’s rationale.

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5
Q

Larissa is managing a project that is over budget and has exceeded the schedule. Stakeholders are very unhappy and team morale is low. Which of the following options is the least likely to have contributed to this?

a. Unclear project objectives

b. Conflicting stakeholder needs

c. Not gathering all stakeholder requirements

d. Interpersonal conflict within the project team

A

Interpersonal conflict within the project team

While all of these options can cause severe issues for a project, interpersonal conflict within the team is the least likely to be the main cause. In fact, interpersonal conflict within the team is likely a result of the other options: unclear project objectives, conflicting stakeholder needs, and missing stakeholder requirements. These issues can all result in tension within the team and project strain.

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6
Q

Which of the following is not a reason to include the project manager in a contract’s negotiation?

a. The project manager represents the best interests of both the buyer and the seller.

b. The project manager can prevent future contract changes by responding to bidders’ questions upfront.

c. The project manager can help vet the sellers’ abilities to successfully deliver the project’s deliverables.

d. The project manager can write the contract.

A

The project manager can write the contract.

The project manager should not write the contract between a buyer and a seller. The procurement office is responsible for writing a contract. The project manager should be present in the negotiation stage to protect the best interests of both the buyer and the seller. The project manager should also be present to answer any of the bidders’ questions about the project. This will prevent changes to the contract in the future if these questions can be addressed initially. The project manager can also attest to a seller’s suitability and skillset. The project manager should understand all aspects of the project and what sellers can or cannot perform adequately to meet the project’s goals.

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7
Q

Your PMO has asked you to provide a stakeholder engagement plan by the end of the week. What should you be sure to include in your stakeholder engagement plan?

a. When communication needs to be shared with stakeholders

b. How communication needs to be shared with stakeholders

c. Why certain information needs to be shared with stakeholders.

d. What information needs to be shared with stakeholders.

A

Why certain information needs to be shared with stakeholders.

The purpose of the stakeholder engagement plan is to express why information needs to be communicated to certain stakeholders and how that information will manage stakeholders’ expectations and engagement. When communication is shared, how it is shared, and what information is shared is expressed in the communications management plan, not the stakeholder engagement plan.

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8
Q

Jesse’s project is a multi-national project with hundreds of stakeholders. Of course, there is not enough time for Jesse to meet with every stakeholder individually. Which stakeholder should Jesse prioritize meeting with?

a. An influential stakeholder who is resistant to the project

b. The project sponsor who is very supportive of the project

c. The engineers who will be completing the project work

d. A new employee who requires technical training to contribute to the project

A

An influential stakeholder who is resistant to the project

Jesse should prioritize meeting with the stakeholder who is resistant to the project. This individual influences the project and should be reassured by Jesse to ensure that the project is successful. Negative influence has the potential to disrupt a project. Therefore, Jesse should meet with this stakeholder to prevent any disruption and learn why the stakeholder is resistant, and try to work with them. Because the project sponsor is already supportive, there is no need to invest much time in meeting with this stakeholder. While the work of the engineers and employees is critical, Jesse will not have time to meet with all stakeholders with little influence.

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9
Q

Phoebe, your project sponsor, has asked you to relate the project requirements and activities to the project’s strategic objectives. What could you send Phoebe that contains this information?

a. Scope statement

b. Requirements traceability matrix

c. Context diagram

d. Mind map

A

Requirements traceability matrix

The requirements traceability matrix will contain information that relates to project requirements and strategic objectives. While helpful, a context diagram does not relate the project requirements to the strategic objectives; it simply defines the scope. Similar to the purpose of a context diagram, a mind map is useful to collect requirements but does not necessarily relate them to strategic objectives. A project’s scope statement will not necessarily explicitly state the relationship between a project’s requirements and the strategic objective; it will simply state the scope.

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10
Q

Carrie is reviewing her project’s network diagram and she comes across a task that can be delayed 3 days without impacting the delivery milestone date. This task is said to have:

a. Total float

b. Free float

c. Project float

d. Lead

A

Total float

This task has total float. Total float refers to a task that has room to be delayed without impacting the target completion date of the project or milestone. This is not free float because free float refers to a delay between two tasks. This example specifically references the milestone delivery date, not a task. The same is the case for the project float. Project float refers to how much a task can be delayed before impacting the customer. Because the example references a milestone date, this would not necessarily impact the customer. This is not an example of lead, because we do not know if this task can start without the completion of the task before it.

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11
Q

In estimating durations with your project team, you must calculate the expected duration with a beta distribution. Your senior technical architect tells you that more than likely, the activity will take 8 days. He is hopeful that he can get it done in 6, however worst-case scenario, it is done in 14 days. What is the beta distribution estimate for this work?

a. 9.33 days

b. 8.66 days

c. 28 days

d. 8 days

A

8.66 days

This beta distributed estimated duration is 8.66 days. The beta distribution is calculated by multiplying the most likely case by 4 (4 * 8) then adding the optimistic and pessimistic estimates (6 days and 14 days) then dividing that sum by 6.

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12
Q

A developer on your team has pointed out a problem with the server that your project relies on to deliver code. The server will have to be replaced. This was not foreseen in the planning stages. What should be done about the cost of the new server?

a. The new server should be paid for out of the contingency reserve.

b. The new server should be paid for out of the management reserve.

c. The team will have to find a workaround as they cannot purchase a new server.

d. The project will have to be canceled as a new server cannot be purchased.

A

The new server should be paid for out of the management reserve.

The new server should be paid for out of the management reserve. The management reserve covers the cost of unforeseen issues. This new server should not be charged to the contingency reserve because this was an unforeseen issue that the team did not account for. The team does not need to develop a workaround nor should the project be canceled. This kind of situation is addressed by a management reserve to keep the project going on track.

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13
Q

David’s project team has been planning a project for about 2 weeks. They have a thorough understanding of the scope and expectations. David asks the team to provide a cost estimate range that is very refined after several rounds of discussion. What should the team provide to David?

a. Rough order of magnitude estimate

b. Three-point estimate

c. Budget estimate

d. Definitive estimate

A

Definitive estimate

The team should provide David with a definitive estimate. A definitive estimate is typically within +/-10% and is the most accurate estimate range. A rough order of magnitude is the least accurate estimate range. This choice is incorrect because a rough order of magnitude is usually estimated in the initiation stage and is not refined. The budget estimate is also not very refined. The budget estimate is usually around -10 to +25% and is a slightly more refined estimate from the rough order of magnitude. A three-point estimate is not a budget range. A three-point estimate is an average of the optimistic, likely, and pessimistic cost associated with an item.

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14
Q

Your project’s sponsor has asked that you report any indirect costs to the PMO. Which of the following is an example of an indirect cost?

a. Salaries for engineers on your project’s team

b. Wood required for construction

c. Bill for the pizza that you ordered for a project team party

d. Cost of the internet for the office

A

Cost of the internet for the office

Indirect costs are costs that are incurred for more than one project or an organization’s overhead. Therefore, the internet for the office is an example of an indirect cost. Every other option, the salaries for the team members, the wood for the project, the pizza for the project team’s celebration, are all examples of direct costs as they are strictly for your project.

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15
Q

In the middle of planning, Evan, a software engineer asks what the purpose of a WBS is after planning is over. All of the following statements about a WBS are true except:

a. A WBS helps control scope creep.

b. A WBS helps define team members’ roles.

c. A WBS determines if change requests should be approved or rejected

d. A WBS can be used as a communication tool to discuss the project.

A

A WBS determines if change requests should be approved or rejected.

A WBS does not determine if a change request should be approved or rejected. While a WBS serves to help evaluate the effects of a change request, it does not relegate what should be approved or rejected. A WBS does help control scope creep, define team members’ roles, and serve as a communication tool to discuss the project.

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16
Q

Mathew’s PMO is looking to be more granular in their project selection method and move to a more mathematical approach to evaluate projects. Which project management method will be most successful for Mathew’s PMO?

a. Peer review

b. Scoring models

c. Murder board

d. Dynamic programming

A

Dynamic programming

The only example of a mathematical evaluation approach is dynamic programming. This is a quantitative evaluation approach. Peer review, scoring models, and a murder board are all examples of qualitative comparative approaches. Dynamic programming is the only option that utilizes a formulaic approach to evaluate projects.

17
Q

At the start of your project’s execution, you identify an opportunity to lower the interest rate for your project. Initially, the project had a future value of $4M with an interest rate of 8% over 2 years. You were able to negotiate the interest rate down to 5%. What is the effect on the present value of your project?

a. The present value has decreased by $199,000.

b. The present value has increased by $199,000

c. The present value has increased by $3,800,000.

d. The present value has increased by $3,200,000.

A

The present value has increased by $199,000.

The present value has increased by $199,000 based on the calculations for present value. The present value is calculated by adding the interest rate to 1 and then exponentially multiplying this by the number of time periods. From here, the future value should be divided by this amount. Initially, the present value would have been about $3.429M. With the new interest rate, the present value is now about $3.629M. Therefore, the present value has increased by about $199,000.

18
Q

Your PMO has tasked you with hiring a new project manager for the organization. They’ve asked that you specifically find someone with mentorship experience. What core competency deals most with mentorship?

a. Industry-specific skills

b. General management

c. Project management

d. Lengthy experience

A

General management

Mentorship is encompassed by general management. While other competencies can include mentorship, mentorship is a form of general management that is not constrained by an industry, project management, nor years of experience.

19
Q

The COO of your software development company has asked you to develop a rough prototype of a piece of software to test a proof of concept for her team. Which development approach is best suited for this project?

a. Predictive development

b. Waterfall development

c. Incremental development

d. Hybrid development

A

Incremental development

The best development approach for this project would be an incremental development approach. This is because the COO asked for a prototype to test a proof of concept. An incremental approach is best to deliver a usable portion of a product after a small period of development. Predictive development, also called waterfall development, is not suitable for this project because predictive/waterfall development requires a great deal of planning and scoping upfront. This level of planning is not necessary when only the testing of a proof of concept is needed. Hybrid development refers to a mix of incremental and predictive development. This is not necessary for a project that is only to test a proof of concept.

20
Q

Jennifer is an emotionally-intelligent team leader. Which of the following conflict resolution techniques is she most likely to embody?

a. Smoothing

b. Withdrawal

c. Forcing

d. Compromising

A

Smoothing

Emotionally intelligent leaders are more likely to use a smoothing conflict resolution technique. Smoothing involves making some concessions but focuses on an agreement. Withdrawal, forcing, and compromising all result in a “lose-lose” for those involved in the conflict. With smoothing, there is likely to be more involvement by all parties and result in some form of agreement.

21
Q

Elsie is a junior Project Manager at your firm and you are responsible for training her on risk management and monitoring policies. She asks what should result from risk monitoring. What will you not tell her to expect as a result of risk monitoring?

a. Changes to the business case

b. Updates to the risk register

c. Changes to the risk management plan

d. Budget change requests

A

Changes to the business case

The business case would not change as a result of risk monitoring. The business case is established before the project begins, therefore cannot be changed during the project. Updates to the risk register, risk management plan, and budget change requests are expected results from risk monitoring.

22
Q

Brooke’s project team is well underway in the development of a complex technical project. A team member informs Brooke that a functional manager is receiving the weekly status report, but not the monthly progress report. He expressed that he must receive the monthly progress report. What should Brooke do next?

a. Brooke should update the communications management plan to include sending the monthly progress report.

b. Brooke should send the monthly progress report to all stakeholders and team members.

c. Nothing; The stakeholder does not need to receive the monthly progress report because he is receiving the weekly status report.

d. Brooke should note this in the issue log and send the monthly progress report to this stakeholder.

A

Brooke should update the communications management plan to include sending the monthly progress report.

Brooke should update the communications plan. Anytime a change to a communication method or stakeholder is needed, the communications plan must be updated. Sending the monthly progress report to all stakeholders and team members may not be necessary; therefore, this is not the best option. Brooke ignoring the problem is never appropriate and not providing the manager with this information may be detrimental to the project; therefore, doing nothing is not appropriate. Noting this in the issue log and then sending the monthly progress report to the manager is not the best option because this change must be reflected in the communications management plan.

23
Q

Brooke should update the communications plan. Anytime a change to a communication method or stakeholder is needed, the communications plan must be updated. Sending the monthly progress report to all stakeholders and team members may not be necessary; therefore, this is not the best option. Brooke ignoring the problem is never appropriate and not providing the manager with this information may be detrimental to the project; therefore, doing nothing is not appropriate. Noting this in the issue log and then sending the monthly progress report to the manager is not the best option because this change must be reflected in the communications management plan.

$163,000

$36,000

$70,000

$44,100

A

$163,000

The earned value can be calculated by adding the schedule variance and planned value, yielding $163,000.

24
Q

Your PMO has presented you with a project, Project A, that has a present value of $1.2M. You must decide if this project will be more valuable than an existing project, Project Z, with a future value of $1.4M and an interest rate of 10% over 2 years. Which project is more valuable?

a. Project A is more valuable as it has a higher present value.

b. Project Z is more valuable as it has a higher present value.

c. Project A is more valuable as it has a higher internal rate of return.

d. Project Z is more valuable as it has a higher internal rate of return.

A

Project A is more valuable as it has a higher present value.

Project A has a higher present value. The present value is calculated by first adding 1 to the interest rate (r) and then exponentially multiplying this value by the number of time periods (n) - [PV=FV/(1 + r)^n]. For Project Z, this gives us (1.10)^2, which is 1.21. Next, divide 1.4M by 1.21 which gives you a present value of about $1.15M. Therefore, Project A has a higher present value. There is not enough information in this example to calculate the internal rate of return.