CW Questions 08 Flashcards
Conflict resolution is an example of, or component of, which of the following?
(A) Dimensions of Communication Activity
(B) Communication Skills Commonly Used by Management
(C) Stakeholder Management Strategy
(D) Communication Process Types
Correct Answer: (B) Communication Skills Commonly Used by Management
Explanation: Conflict resolution is a communication skill commonly used by management. The other answers are noise [section 10.2]
The company is concerned about its position during the economic downturn. Its CEO is a risk taker. Of several strategies on the table for consideration, which is he most likely to pursue?
(A) Mandating that senior management lay the ground work for a reduction in force in the event it is necessary
(B) Entering a relatively untested market in the hope of significant reward
(C) Trying new markets that do not require significant investment while mandating traditional “belt-tightening” procedures
(D) None of the answers
Correct Answer: (B) Entering a relatively untested market in the hope of significant reward
Explanation: A risk seeker mentality is that of looking for the big reward and being prepared to pay significantly if it is missed. The risk-averse mentality is a very conservative approach to risk. A risk-neutral mentality is somewhere between that of a risk seeker and risk-averse mentality. [section 11.2.7]
What type of contract exposes the seller to the most risk when entering into a contract?
(A) Time and materials because there is no provision for an increase in the workers salary
(B) Cost-plus-percentage of cost because the seller’s net can decrease if the cost decreases
(C) Purchase order because there is no provision for an increase in material costs
(D) Fixed-price because there is no provision for increases in the seller’s costs
Correct Answer: (D) Fixed-price because there is no provision for increases in the seller’s costs
Explanation: The fixed-price contract has the most risk for the seller because the contract limits the amount that the buyer will pay for the project. The seller must have a detailed understanding of exactly what is needed on the project so it can control cost. Cost-plus-percentage of cost provides the least risk to the seller. A purchase order provides the seller with no risk because the price for a commodity type item has been established. Time and materials contracts are typically used for smaller amounts of work and staff augmentation. [section 12.1.6]
As a condition of being hired as Project Manager for a defense company, you must sign a non-disclosure agreement. Of the following, which is the best description of this document?
(A) The signer agrees to abide by the defense secrets section of the Standards for the National Industrial Security Program (NISP)
(B) The signer agrees to accede to the terms of the Defense Security Service (DSS) as detailed in the document
(C) The signer agrees to limit discussion of the project to designated personnel
(D) The signer agrees to limit discussion of the project to designated personnel in accordance with the term of the Standards for the National Industrial Security Program (NISP)
Correct Answer: (C) The signer agrees to limit discussion of the project to designated personnel
Explanation: A non-disclosure agreement protects a company’s intellectual property and limits disclosure to designated personnel only. The other answers are noise. [section 13.2.2]
Which of the following is the prioritized order of the project constraints?
(A) Time, risk, cost
(B) Quality, time, cost
(C) Scope, time, budget
(D) They are all of equal importance unless stated otherwise
Correct Answer: (D) They are all of equal importance unless otherwise stated.
Explanation: The constraint of project management states that scope, quality, schedule, budget, resources, and risks are all equal unless otherwise defined as such. [section 3.2]
Which of the following best describes configuration management?
(A) Procedures used to document and control product or service characteristics
(B) System used to store versions of software code
(C) System used to store versions of project documentation
(D) Interface of an automated project management system created to set up project variables
Correct Answer: (A) Procedures used to document and control product or service characteristics
Explanation: Configuration management ensures that the project is building what it should build. It utilizes a very thorough and detailed change control process to ensure that project results conform to requirements and exhibit Fitness for Use. [section 4.7.4]
Which of the following is a heuristic for WBS decomposition?
(A) Breaking down work until it is done by a single resource
(B) Using an organizational structure appearance
(C) Creating a WBS in which the summary activities are equal to the detail underneath
(D) Breaking work down to a realistic level (work packages being the lowest level)
Correct Answer: (D) Breaking work down to a realistic level (work packages being the lowest level)
Explanation: A general rule of thumb is to break down the work of the project into work packages. Breaking work packages or activities down to a single resource assigned is not always practical. Creating a WBS where the summary activities are equal to the detail underneath is a characteristic of a WBS. “Using an organizational structure appearance” is noise. [section 5.3.1]
The Estimate Activity Resources process has just ended. What was created as a result of this process?
(A) Activity list, resource breakdown structure, project schedule network diagrams, and activity resource requirements
(B) Resource breakdown structure, project schedule network diagrams, and activity resource requirements
(C) Resource breakdown structure and activity resource requirements
(D) Milestone list, Resource breakdown structure and activity resource requirements
Correct Answer: (C) Resource breakdown structure and activity resource requirements
Explanation: The key outputs of the Estimate Activity Resources process are the resource breakdown structure and the activity resource requirements. [section 6.3]
Activity A is worth $200, is 100% complete, and actually cost $200. Activity B is worth $75, is 90% complete, and actually cost $120 so far. Activity C is worth $200, is 75% complete, and has cost $175 so far. The total budget is $1,000. What is the cost variance for the project?
(A) 0.84
(B) 0.88
(C) -$77.50
(D) -$57.50
Correct Answer: (C) -$77.50
Explanation: To calculate this value, calculate earned value (EV) and actual cost (AC) first. Multiply the percent complete of each activity by its planned value (PV) to obtain the EV for each activity. Sum the earned value of each activity to determine the total earned value. Sum the actual cost of each activity to determine the total actual cost. Subtract the actual cost of $495.00 from the earned value of $417.50 to determine a CV of -$77.50. This value means that the project is $77.50 over budget. [section 7.14.1]
You are the Project Manager on a project that will improve the manufacturing process at your company which has a 1 Sigma quality standard with its manufacturing process. Quality has been a major issue because there has been an excessive amount spent on inventory with a lot of waste in the building process and product returns. There is a general belief that there are process issues behind this problem. Which of the following options appears to make the most sense in terms of making the process more consistent?
(A) Watching for violations of the Seven Run Rule
(B) Making a greater use of checklists
(C) Increasing the quality standard to a Sigma level greater than 1
(D) Utilizing a Fishbone diagram
Correct Answer: (B) Making a greater use of checklists
Explanation: When followed, checklists help the employee attain consistent process execution. Assuming the checklist is sufficient and that the employee follows it, the process should possess a greater degree of stability. Fishbone diagrams work with problem isolation. Increasing the quality level makes a process more consistent, but it takes tools to do that. The checklist is a good quick fix that can have standard long-term benefit, especially if the Sigma level is increased and higher quality expectations are put in place. [section 8.8.17]
Of the following, which are the key tools and techniques of the Develop Human Resource Plan process?
(A) Networking, organizational skills, and organization charts and position descriptions
(B) Networking, organizational theory, and organization charts and position descriptions
(C) Networking, organizational theory, leadership skills, and organization charts and position descriptions
(D) Networking, organizational skills, leadership skills, and organization charts and position descriptions
Correct Answer: (B) Networking, organizational theory, and organization charts and position descriptions
Explanation: The key tools and techniques of the Develop Human Resource Plan process are networking, organizational theory, and organization charts and position descriptions. [section 9.1]
The key outputs of the Identify Stakeholders process are…?
(A) Stakeholder Register and Stakeholder Management Plan
(B) Stakeholder Register and Stakeholder Management Strategy
(C) Stakeholder Register, Stakeholder Analysis Chart, and Stakeholder Management Strategy
(D) Stakeholder Register, Stakeholder Analysis Chart, and Stakeholder Management Plan
Correct Answer: (B) Stakeholder Register and Stakeholder Management Strategy
Explanation: The key outputs of the Identify Stakeholders process are the stakeholder register and the stakeholder management strategy. The other answers are noise. [section 10.3]
In discussing risk with his project team, the Project Manager begins the conversation by defining risk. Which of the following is the most accurate definition of risk?
(A) A possible negative event
(B) A possible positive event
(C) Answers (A) and (B)
(D) A negative issue that occurs as a result of uncertain factors
Correct Answer: (C) Answers (A) and (B)
(A) A possible negative event
(B) A possible positive event
Explanation: Risk can be of negative or positive consequence on a project. It is something that can occur but hasn’t yet. Risk involves uncertainty with regard to what could occur, not what has occurred. [section 11.1]
Your company is involved in a new project in which the information and intellectual property associated with it are highly sensitive. Given this, which of the following makes the most sense when planning the project?
(A) Outsourcing and having the partner sign a non-disclosure agreement
(B) Having only the creators of the idea work on the project to control who knows about the intellectual property
(C) Outsourcing to an offshore development facility so your local competitors won’t know your intellectual property details
(D) Making the product internally
Correct Answer: (D) Making the product internally
Explanation: When intellectual property and proprietary information are involved, it makes sense for a company to keep the work internal. Having an outsourcing partner sign a non-disclosure agreement is not the best answer. The other answers are noise. [section 12.1.2]
A Functional Manager has come to you and reported that the work due today is going to be three weeks late, but requested that you do not report this to senior management. The Functional Manager is well respected by everyone with the exception of one senior manager who seems to take every opportunity to make the functional manager look bad. What is your professional and social responsibility in this case?
(A) Report the status in an accurate and timely manner
(B) Report the status in an accurate manner, but do not add any details about the expected length of the delay
(C) Report the status in an accurate and timely manner, but eliminate it from the summary, burying it within the detailed report where it would not be noticed
(D) Delay reporting the slippage in the hope that the project will soon get back on schedule and need not be reported
Correct Answer: (A) Report the status in an accurately and timely manner
Explanation: As a Project Manager, you are required to report a status in an accurate and timely manner. Failing to fully disclose the status, to bury the “bad news,” or to delay reporting the slippage (while hoping it gets back on schedule) represent a failure of professional and social responsibility. [section 13.5.1]
