CW Questions 07 Flashcards
Correct Answer: (B) The procurement department’s rejection of the senior manager’s idea is the best course of action
Explanation: A company who fails to perform as defined in the contract is in default of the contract. That the vendor is in default is obvious; the customer will only be in default if it stops payment for work already accomplished. [section 12.2.10]
Correct Answer: (A) $535K
Explanation: This is a calculation question. The $560K is the expected value of the contract. Actual cost of the contract is $510K. This means that there is $50K saved. The 50/50% share means that $25K of the savings go to the seller. The actual cost of $510K and $25K saving share makes the total value of the contract worth $535K. [section 12.1.7]
You learn that someone has been hired as a PMP In-process. You ask him about this provision because you are not familiar with an “In-process” specialization in the PMP Certification. The employer apparently assumed that this provision was a specialization in the certification when actually the person being hired was simply trying to indicate that he was studying for the exam. What would have best eliminated this confusion?
(A) The person being interviewed should have clarified the status to the employer when the confusion became apparent
(B) The employer should have known more about the PMP Certification
(C) The employer should have confirmed the certification on the PMI Web site
(D) The employee should have kept quiet until he passed the test
Correct Answer: (A) The person being interviewed should have clarified the status to the employer when the confusion became apparent
Explanation: Regardless of your status as a PMP, you should be professionally responsible and let someone know of any misinterpretation associated with your background or qualifications. The other answers are not correct because the responsibility falls on the person to report accurate information in a timely manner.
[section 13.5]
All the following are examples of projects interacting with operations except…
(A) Upgrading a factory line with new computer components
(B) Initiating the Go-live phase of a project
(C) Increasing output to meet unusually high customer demand
(D) Closing a large sales office
Correct Answer: (C) Increasing output to meet unusually high customer demand
Explanation: Accommodating high demand still falls under the realm of operations. Anticipating and scheduling daily, monthly, seasonal, or cyclical fluctuations are common duties for “operational” individuals. All other answers involve a project impacting the day-to-day operations in some significant way. [section 3.1.1]
The project to create a new drill type for an oil exploration initiation has been in progress for twelve months. Of the following, what best describes when it closes?
(A) When the Verify Scope process is completed for the project
(B) When the project is cancelled
(C) When the project funds are depleted
(D) All the answers
Correct Answer: (D) All the answers
Explanation: Whenever a project ends, it should be formally closed. This closure allows the team and organization to learn what worked and what didn’t on the project and to formally close out the initiative. When a project completes the Verify Scope process, the deliverables of the project are formally accepted and thus, the project is complete. When a project is cancelled or when it runs out of money the administrative activities associated with closure of the project are conducted. [section 4.8]
During what processes is work decomposition performed?
(A) Create WBS and Define Activities
(B) Define Scope and Create WBS
(C) Define Activities and Control Schedule
(D) Create WBS and Control Scope
Correct Answer: (A) Creating the WBS and Define Activities
Explanation: The work of the project is decomposed in the Create WBS process to establish work packages and in the Define Activities process (Time knowledge area) to create activity lists. No other process involves the systematic break down of work elements. [section 5.3 and 6.1]
Which of the following is an example of a lag?
(A) The latest a new system can be ordered from the manufacturer without delaying the project
(B) The critical path
(C) A delay after the sheetrock (wall board) is done in a house to allow it to dry before continuing work in that area
(D) The earliest a new system can be ordered from the manufacturer
Correct Answer: (C) A delay after the sheetrock (wall board) is done in a house to allow it to dry before continuing work in that area
Explanation: A delay after the sheetrock is done to allow it to dry before continuing work in that area is an example of a lag. The delay is not part of either activity but occurs between the activities. The other answers are noise. [section 6.2.5]
Project A has an NPV of $165K over three years. Project B has an NPV of $330K over six years. Project C has an NPV of $170K over six years. Which of the following do you select?
(A) Project A
(B) Project B
(C) Project C
(D) Project A and C
Correct Answer: (B) Project B
Explanation: Project B is the most attractive project because it has the highest dollar amount. The years listed with the NPV are noise because they are already factored into the dollar amount of the project. Project A and C are of less value than Project B. [section 7.2]
The Project Manager and his team are using an Ishikawa or fishbone diagram during the Plan Quality process for the coal extraction project. Of the following, which best describes the reason they are utilizing this diagram?
(A) To assess the defects which are creating quality issues
(B) To evaluate project activities which have the potential to create defects
(C) To review symptoms to determine the source of the defects
(D) B and C
Correct Answer: (D) B and C
Explanation: Ishikawa diagrams are utilized in the Plan Quality process to evaluate project activities which have the potential to create defects. Ishikawa diagrams are utilized after the planning process to review symptoms in an effort to determine the source of the defects. The other answers are noise. [section 8.8.19]
The Project Manager has created the Human Resource Plan and is getting ready to start the project soon. Résumés are being reviewed and some people have been interviewed. The lead candidate for the technical architecture position has been offered a position. In what process is the Project Manager involved?
(A) Hiring and interviewing
(B) Develop Project Team
(C) Estimate Activity Resources
(D) Acquire Project Team
Correct Answer: (D) Acquire Project Team
Explanation: Acquire Project Team involves getting people on the project. Estimate Activity Resources occurs before interviewing starts. Develop Project Team occurs after staff acquisition is complete. “Hiring and interviewing” is noise. [section 9.3]
There are five basic performance reports. Of the following, which best describes the contents of a forecast report?
(A) Information related to the state of the schedule, budget, and scope of the project at various parts of time
(B) Information related to the present overall state of the project
(C) Information related to future project occurrences
(D) Information related to recent project occurrences
Correct Answer: (C) Information related to future project occurrences
Explanation: The forecast report shows what is expected to occur on the project. The progress report shows what has been completed since the last reporting period. The status report shows where the project is to date. The variance report shows the difference between planned and unplanned occurrences. The earned valued report shows the state of the schedule, budget, and scope of the project at various points in time. [section 10.7.1]
The telecom project is scheduled to run until year’s end. There is a strong possibility that the union collective bargaining agreement will not be renewed immediately upon its expiration next month. Union negotiation is outside the control of the project and of senior management, so senior management has decided to reassign the job responsibilities of union personnel to non-union personnel to minimize project schedule slippage. Of the following, what best describes the type of risk response represented by this decision?
(A) Risk avoidance which avoids negative risk by taking actions to prevent it
(B) Risk transference which avoids negative risk by transferring or reassigning responsibilities
(C) Risk mitigation which mitigates negative risk by taking actions to lessen its impact
(D) Risk acceptance which accepts negative risk and has a plan to deal with it if it occurs
Research Answer
You are the Project Manager working with the customer on a call center implementation. Your company is responsible for the call center infrastructure. The customer needs some modifications to the scope of the project due to the availability of new functionality. This modification requires that the scope of work to the contract be modified. Who can modify the contract?
Correct Answer: (B) The contract administrator for the company
Explanation: The Contract Administrator for the company is the only person with the authority to change the contract. The Project Managers from the buyer and the seller will likely have input to the changes, but the Contract Administrator is the person making those changes to the contract. [section 12.3.1]
A Project Manager is in the execution phase of a highly visible project and a major milestone is due in one week. The Project Manager has discovered that a vendor’s deliverable for this milestone will be two weeks late. What should the Project Manager do?
(A) Do not report this problem in the status meeting
(B) Meet with the team and brainstorm how to create a workaround for this problem
(C) Halt all payments to the vendor until the deliverable is received
(D) Report the status of the missed milestone
Correct Answer: (B) Meet with the team and brainstorm how to create a workaround for this problem
Explanation: Meeting with the team and brainstorming how to create a workaround for this problem is the first step the Project Manager should try. Reporting the status of the missed milestone is the second option. Failure to report this problem in the status meeting violates professional and social responsibility on reporting accurate information. Halting all payments to the vendor puts your company in default of a signed contract.
[section 13.1.3]
Which of the following is an example of an Enterprise Environmental Factor?
(A) Project life cycle documentation
(B) Stakeholder risk tolerance
(C) Standard performance measurement criteria
(D) Financial, change, and risk control procedures
Correct Answer: (B) Stakeholder risk tolerance
Explanation: All incorrect answers are examples of Organizational Process Assets. [section 4.2]
The new system integration project impacts all the departments in the company, directly or indirectly. Which of the following is the best description of tools used for the project’s communications?
(A) Communications Management Plan (CMP)
(B) Communications Model Media (CMM)
(C) Information Distribution Planning (IDP)
(D) Project Management Information System (PMIS)
Correct Answer: (D) Project Management Information System (PMIS)
Explanation: The Project Management Information System (PMIS) is a system that stores and distributes project information. It can be a manual or a high tech system. The other answers are noise. [section 4.4.5]
