Business Environment Tasks 1 Flashcards
You are working on an agile project for the Department of Defense and the project will be dealing with sensitive information that requires all team members to have an active security clearance. There are also several other industry compliance issues surrounding the storage of this sensitive information. How can you ensure your project stays in compliance?
A. Review the compliance requirements with the team at the outset of the project?
B. Hope the compliance auditor has an agile mindset
C. Use a third party to conduct an audit at the end of the project
D. Make compliance a part of each retrospective to ensure goals are being met throughout the project
Answer: D
Which component is not included on a Risk Register?
A. Category
B. Ranking
C. Management Reserve
D. Owner
Answer: C
Business Environment - Task 1 - Manage Compliance
Management Reserve is not included since that is used to cover things not identified on the Risk Register. A Contingency Reserve would be included, however
After an extensive interview process you have finally been selected as the project manager for a biotech start-up company. Your first project is running according to plan and you are in the Control Quality process. The project team in now focusing on keeping any of the deliverables from reaching the customer with errors. What technique does this best describe?
A. Prevention
B. Product evaluation
C. Inspection
D. Check sheets
Answer: C
Business Environment - Task 1 - Manage Compliance
A is incorrect because prevention takes action to prevent defects from entering the process. B is incorrect because product testing and evaluation provides objective information about the quality of the product. C is correct, inspections examine a product to determine if it conforms to agreed acceptance criteria, check sheets organize facts that facilitate the collection of useful data in reference to a quality problem.
You are working on an agile project and have planned to deal with all compliance requirements at the end of the project. Does this plan adhere to an agile methodology?
A. Yes, so long as there are no compliance issues early in the project
B. Yes, this typically occurs in flow-based agile
C. No, compliance is a part of each retrospective to ensure goals are being met throughout the project
D. No, compliance is a function of the PMO and is not to be included in agile planning
Answer: C
Business Environment - Task 1 - Manage Compliance
Compliance like risk management is woven into each iteration of an agile project. Read more about Compliance in the PMBOK Guide on p 276
Debra is the project manager for a new line of dog leashes. The new product is meant to be a single bundled item with a dog collar and leash packaged together in the same color and style. However, the first run of product created thousands of units where the color of the leash and the color of the collars did not match. The marketing members of the Project Team has proposed selling the two items separately. The team is checking the business case. Which of the following statements is true?
A. The price of the product will have to cover the marketing of the new packaging, the cost of materials and the delay of bringing the original product to market
B. The cost of the current run should be ignored when making the decision on marketing the product
C. The new product is a positive risk that should be exploited
D. Marketing team cannot check a new business case without a change request
Answer: B
Business Environment - Task 1 - Manage Compliance
The cost of the current run is a sunk cost and should not be considered in the business case going forward. A is wrong because we include the sunk cost in cost of materials. C is wrong because the products were a mistake, not a positive risk. D is wrong because the marketing team is not looking at a new business case, they are looking at the current one.
Which of the following would be used to describe the qualitative significance of the negative impact of threats or the positive impact of opportunities each project faces?
A. Dollar amounts
B. Length of expected delays
C. Types of risk responses
D. Very Low, Low, Moderate, High
D. Very Low, Low, Moderate, High
You are a project manager for the Coyote and Road Runner Engineering Group. Your project has been going smoothly and quality defects are well within organizational thresholds. One of your team members informs you about an inspection of your processes by the local state engineer department. As the project manager how should you proceed?
A. Update all plans and verify work prior to the inspection to ensure all work was done in accordance with state policies
B. Have all documentation ready to present to the auditor
C. Conduct a pre-audit to ensure all your policies are up to date prior to the audit
D. Forge any missing required documents and worry about it after the audit
Answer: B
Business Environment - Task 1 - Manage Compliance
Quality audits are structured and independent reviews to ensure the project is adhering to the processes, policies and procedures originally planned. You may have been lured in by answer C, but on the exam, you assume documentation is complete and up-to-date, so there is no need for a pre-audit.
Which of the following is not a tool or technique of Monitor and Control Project Work?
A. Trend Analysis
B. Decision Making
C. Audits
D. Alternatives Analysis
Answer: C
Business Environment - Task 1 - Manage Compliance
The tools and techniques of Monitor and Control Project Work are Expert judgement, Data analysis (Alternatives analysis, Cost-benefit analysis, Earned value analysis, Root cause analysis, Trend analysis, Variance analysis,) Decision making, and Meetings.
Your company performs some tests to determine how long it will take to complete the process of creating a new microchip. These tests must be completed and the data analyzed three weeks before the facility design is finalized. This is an example of what?
A. Historical information
B. Product analysis
C. Constraints
D. Assumptions
Answer: C
Business Environment - Task 1 - Manage Compliance
Constraints are factors that limit the options or progress of the project. In this case the requirement that the test be complete and the data be analyzed is a constraint on completing the project.
You are working on an agile project for the Department of Defense. The project will be dealing with sensitive information that requires all team members to have an active security clearance. There are also several other industry compliance issues surrounding the storage of this sensitive information. How can you ensure your project stays in compliance?
A. Review the compliance requirements with the team at the outset of the project?
B. Hope the compliance auditor has an agile mindset.
C. Use a third party to conduct an audit at the end of the project.
D. Make compliance a part of each retrospective to ensure goals are being met throughout the project.
Answer: D
Business Environment - Task 1 - Manage Compliance
A and C are good answers but D is the best answer available. Read more about Compliance in the PMBOK Guide on p. 276.
You are a vendor who has just won a large contract. As the project manager of this consulting firm, you have over a decade of deep experience in this specific kind of project; however, this is your first time working on a government contract and must now be sensitive to government-specific considerations. For example, government regulations that would limit your options as a project team. These are best described as?
A. Bureaucracies
B. Constraints
C. Workarounds
D. Assumptions
Answer: B
Business Environment - Task 1 - Manage Compliance
Union contracts and government regulations that are imposed on your project are examples of constraints. Constraints are anything that limits your options on a project. This can include time constraints or imposed deadlines as well.
You are a project manager with a mid-sized retail company. You are performing structured independent reviews to ensure compliance with the project’s quality policies and procedures. Which of the following is true about the process this describes?
A. It is the process of monitoring and recording results of executing the quality activities to assess performance.
B. It identifies causes of poor process or product quality and recommends action to eliminate them.
C. It sets forth the way in which the team will meet the quality requirements.
D. It ensures appropriate quality standards and operational definitions are used.
Answer: D
Business Environment - Task 1 - Manage Compliance
This question is describing audits, which are used in the Manage Quality process.
You are managing a project for the development of a new medical device and have completed all of your planning. As the work is commencing, a new regulation is issued by the FDA, effective immediately, which requires some additional steps to be performed in the development of this device. What is the best way to proceed?
A. Stop the work to which the new regulation pertains, issue a change request, and proceed with the other work that is unaffected by the change
B. Stop all work and issue a change request based on the new requirements
C. Stop all work and go back to the planning processes to implement the needed changes
D. Continue completing the work as planned, and notify the sponsor of the new regulation
Answer: A
Business Environment - Task 1 - Manage Compliance
Here, you need to comply with the regulation, so the work which is affected by the new regulation needs to stop temporarily. You will need to issue a change request and follow change control procedures to implement the new change. You would not necessarily need to stop all work, however, as this could be devastating to your project schedule, budget, resource availability, etc.
Audits may be conducted to verify a project’s compliance with organizational policies, standards, procedures and processes. Which of the following would not be an appropriate auditor resource?
A. PMO
B. Project Manager
C. Internal Audit Team
D. 3rd party contractor
Answer: B
Business Environment - Task 1 - Manage Compliance
Neither you as the project manager or anyone or your team would be an appropriate choice for the auditor role, as there could be a conflict of interest. Audits should be conducted by other parties outside of your team.
You have just passed the PMP exam. Your friend is still preparing for the exams and plans on taking the exam next month. You purchased a copy of this book to study from, while your friend purchased a copy of another author’s book. Since you’re finished studying, you want to loan your book with the CD to your friend so that he can use it for his preparation. Which of the following statements is true? Choose the best answer.
A. Since you are a PMP, you’re required to adhere to the PMP Code of Professional Conduct, so sharing the book and CD is not acceptable.
B. Since you are a PMP, you should not share the book and CD with your friend, because it may pose a conflict of interest for your friend.
C. The book and CD are considered intellectual property and should not be copied. However, loaning your copy to your friend to use, as long as she doesn’t copy it, is acceptable.
D. Since you are a PMP, you’re required to adhere to the PMP Code of Professional Conduct and should not share the book and CD with your friend because of the appearance of impropriety.
Answer: C
Business Environment - Task 1 - Manage Compliance
Loaning the book and CD to your friend is an acceptable solution as long as your friend does not make copies of the CD or printed text.
You are working on an agile project and have planned to deal with all compliance requirements at the end of the project. Does this plan adhere to an agile methodology?
A. Yes, as long as there are no compliance issues early in the project.
B. Yes, this typically occurs in flow-based agile.
C. No, compliance a part of each retrospective to ensure goals are being met throughout the project.
D. No, compliance it only the function of the PMO and is not to be included in agile planning.
Answer: C
Business Environment - Task 1 - Manage Compliance
Compliance like risk management is woven into each iteration of an agile project. Read more about Compliance in the PMBOK Guide on p. 276.
You are a project manager on a new project in a start-up organization. Everyone is new and roles are undefined. Due to a new technology a tremendous opportunity exists, but you must act quickly. Your sponsor has scheduled a meeting with you to discuss how to capitalize on this opportunity. Following that discussion what actions should be taken?
A. Describe and document the necessary information from a business standpoint to determine whether the expected outcomes of the activity justify the required investment.
B. Describe and document any contracts, memorandums of understanding or service level agreements that are applicable for the project.
C. Describe and document any government or industry standards, legal or regulatory requirements, marketplace conditions and stakeholder expectations and risk thresholds.
D. All of the above
Answer: D
Business Environment - Task 1 - Manage Compliance
The situation describes the initial stages of initiating a new project, so the outcome of this meeting will be a project charter. Choice A represents business documents (business case); Choice B discusses agreements and Choice C explains enterprise environmental factors, which (along with Organizational Process Assets) are inputs to Develop Charter.
You are in the process of developing risk response options and determining actions to reduce threats to your project’s objectives. When you show the results of your risk response planning to your project sponsor, she is not comfortable with the risks in the project and suggests that the project scope should be decreased. This is an example of:
A. Inappropriate risk management because it is having a direct impact on your project scope
B. Risk Avoidance
C. Risk Mitigation
D. Risk Transfer
Answer: B
Business Environment - Task 1 - Manage Compliance
Risk avoidance involves changing some aspect of the project management plan to eliminate the threat posed by a risk, and reducing the scope of the project would be a good example of such an avoidance.
You are the Team Facilitator leading your team through the current sprint. Which of the following tools would not be relevant for measuring compliance to quality standards on an Agile project?
A. Design for X
B. Ishikawa Diagram
C. Pareto Chart
D. RACI Chart
Answer: D
Business Environment - Task 1 - Manage Compliance
A RACI chart is used to show who is Responsible and Accountable, and who need to be Consulted and Informed on activities. The others are all tools for measuring quality. PMI Authorized PMP Exam Prep Student Guide/ Page 257
You are managing a project to improve water filtration at a water plant. You are in the planning phase when an unexpected change has arisen from a regulatory agency. This change requires additional information to be sent to their office. What is the first thing you should do to handle this situation?
A. Add the regulatory requirement to your requirements documentation
B. Meet with the project team to analyze how the change would impact other project objectives
C. Add the regulatory agency to your stakeholder register
D. Add this as a risk to your risk register
Answer: A
Business Environment - Task 1 - Manage Compliance
You are in the planning portion of the project, so you would add this as a regulatory requirement within your requirements documentation. While adding the regulatory agency to your stakeholder register and adding any new risks to the risk register is a good idea, you want to add the requirement to your requirements documentation as soon as possible. Choice B would imply you have already completed planning and would need to process a change request. When you are planning, there is no need for a change request. The change process is needed when baselines and the Project Management Plan have been approved, which is not the case here.
Which of the following is not an input to Implement Risk Responses?
A. Risk Register
B. Enterprise Environmental Factors
C. Risk Management Plan
D. Lessons Learned Register
Answer: B
Business Environment - Task 1 - Manage Compliance
Enterprise Environmental are notably absent from this process because they had been taken into account previously. This process involves the execution of a plan rather than the development of one, which would necessitate considering those internal and external factors that are outside of the control of the project management team.
You are the project manager working with an agile team to develop a new online motor vehicle registration system for the state of New Jersey in the United States. Functional and nonfunctional requirements were collected from the stakeholders. Which of the following would not be an example of a nonfunctional requirement?
A. The standard hours and days of the week that the new site will be open and available to motor vehicle owners.
B. Response times for the various web pages of the system.
C. The types of motor vehicle registrations that will be supported by the system (cars, trucks, motorcycles, campers, trailers, etc.).
D. The login, password, motor vehicle VIN, license plate and other security-related access protocols needed for system access by valid users.
Answer: C
Business Environment - Task 1 - Manage Compliance
Answers A, B and D, along with business continuity/disaster recovery requirements for the system, are all examples of nonfunctional requirements. Answer C is an example of a functional requirement–what service the system is supposed to provide.
You are coming to the end of your release and your team is working on what you hope is the final sprint. However, you are informed that a new regulatory requirement has been enacted and there is a possibility that your deliverable may not meet this new regulation. What should you do first?
A. Perform an impact analysis of the regulatory requirement.
B. Reprioritize user stories so the ones related to the regulatory requirements are higher priority.
C. Update the risk register.
D. Inform the Product Owner of the new regulations.
Answer: C
Business Environment - Task 1 - Manage Compliance
You may eventually do all of the above, but the question is asking what you should do first. This is a risk, and once a risk has been identified the first thing to do is update the risk register.
You finished laying the foundation for your construction project and are now awaiting a pending inspector validation. The inspector is onsite and it does not seem your project is meeting the specified requirements. What could you have done to avoid this issue?
A. Reviewed lessons learned from previous project, this would have identified the requirements earlier in the project
B. Identified stakeholders during initiating, conducted interviews and collected requirements prior to executing and planning
C. Reviewed OPAs and EEFs to determine any inspection requirements
D. Use the float you built into the project to deal with any delays
Answer: C
Business Environment - Task 1 - Manage Compliance
In preparation for the exam, you should assume adequate documentation has been done, lessons learned and adequate change processes are in place. Reviewing internal policies and procedures, as well as EEFs from the State inspector, would have avoided this issue. Reviewing lessons learned alone, would not identify specifications for the inspector.
You are preparing your quality management plan and are referring to various standards and regulations which govern your work. One team member insists that standards and regulations are the same thing, but you know they are not. How will you describe the distinction between the two?
A. Standards are internal to the organization while regulations are external
B. Standards are regulated by specific industries; regulations are optional.
C. Standards are aspirational; regulations are required.
D. Standards are required; regulations are laws.
Answer: C
Business Environment - Task 1 - Manage Compliance
Standards are in most cases aspirational, but practically speaking, they can often be mandatory. Regulations are always mandatory and are backed by some legal or regulatory body (i.e. Food and Drug Administration).
