Engage Stakeholders and Manage Budgets and Resources Flashcards
You are the project manager for a banking firm. All projects must have strict cost baselines. Your organizational process assets provide numerous templates to ensure standardized cost management and reporting. You use Earned Value Management to track and predict project cost performance. What is the project manager responsible for from a cost management standpoint?
A. Predicting regular cost increases
B. Calculating SV and SPI to track and forecast project costs
C. Providing an exact, detailed cost estimate
D. Planning work, materials, and equipment resources
Answer: D
Process - Task 5 - Manage Budget and Resources
The project manager is responsible for planning the work required, the materials required, and the equipment resources required to ensure the project is successful. While the PM has other roles in ensuring costs are contained, Answers A-C do not reflect those roles.
Cherie is the replacement project manager for a global team. The prior project manager just retired and before leaving published a host of staffing recommendations that could benefit the next phase of the project. Cherie wants to respect his input and get started on staffing the project phase immediately so she is beginning to plan accordingly. Which of the following is an input to Plan Resource Management?
A. Organizational Process Assets
B. Cost Performance Baseline
C. Activity Duration Estimates
D. Networking
Answer: A
Process - Task 5 - Manage Budget and Resources
Activity Resources requirements, Enterprises Environmental factors and Organizational Process Assets are all inputs to Plan Resource Management. Answer B, Cost Performance Baseline, is an output of the Determine Budget process. Answer C, Activity Duration Estimates, is an output of the Estimate Activity Durations process. Answer D, Networking, is a tool and technique of the Manage Communications process.
You are managing a project with an EV of $15,000, PV of $12,000 and AC of $11,000. How would you best describe this project?
A. The project is ahead of schedule and under its budget
B. The project is behind schedule and under its budget
C. The project is ahead of schedule and over budget
D. The project is behind schedule and over budget
Answer: A
Process - Task 5 - Manage Budget and Resources
First calculate SPI, as follows: EV / PV = $15,000 / $12,000 = 1.25, so your project is ahead of schedule. Then calculate CPI as follows: EV / AC = $15,000 / $11,000 = 1.36, so your project is within its budget.
A project that should have been 90 percent complete by now is only 84 percent complete. The total project budget is US$110,000 and the actual cost of work performed (ACWP) is US$82,000. What is the schedule performance index (SPI) and cost performance index (CPI) for this project?
A. The SPI is 0.93, and the CPI is 1.13.
B. The SPI is 1.07, and the CPI is 0.99.
C. The SPI is 1.15, and the CPI of .93.
D. The SPI is 0.96, and the CPI is 1.18.
Answer: A
Process - Task 5 - Manage Budget and Resources
EV = EV = Actual% * BAC = 0.84$110,000 = $92,400; PV = Plan% * BAC = 0.90$110,000 = $99,000; AC = $82,000 (given); SPI = EV/PV = $92,400/$99,000 = 0.93; CPI = EV/AC = $92,400/$82,000 = 1.13. PMBOK Guide Sixth Edition (2017) /PMI/7.4.2.2/263
Which process ensures that assigned resources are available as planned?
A. Monitor and Control Project Work
B. Manage Resources
C. Control Resources
D. Plan Resource Management
Answer: C
Process - Task 5 - Manage Budget and Resources
The question asks which process ensures that assigned resources are available. Control Resources is the process of ensuring that the physical resources assigned and allocated to the project are available as planned. Monitor and Control Project Work is focused on integrating information collected by other monitoring and controlling processes. Plan Resource Management provides the framework for resource management. There is no “Manage Resources” process - be careful for made up processes like this.
__ and __ __ __ is focused on integrating information collected by other monitoring and controlling processes.
Monitor and Control Project Work is focused on integrating information collected by other monitoring and controlling processes.
__ __ __ provides the framework for resource management.
Plan Resource Management provides the framework for resource management.
You are the project manager for a large IT company. You are part of a directive PMO. You are standardizing your project performance metrics since different project managers report different results. Project performance is best measured by which of the following?
A. Project dashboard
B. The project sponsor
C. Earned value management
D. Performance reports
Answer: C
Process - Task 5 - Manage Budget and Resources
Earned Value Management (EVM) measures project performance in economic terms from a cost and schedule perspective. Performance reports and status reports don’t measure performance; they are used to report performance.
You are in the early stages of project planning and decide that a small number of prototype testers is an accurate enough description for the resources needed for a specific work package during the prototyping phase. Based on past experience with a similar project you assume that once the prototype is designed and functional, you’ll need to bring in a specific number of experts to test it. Which of the following best describes the portion of the resource planning process this question refers to?
A. Resource Requirements
B. Expert Judgment
C. Resource Calendars
D. Estimating schedule durations
Answer: A
Process - Task 5 - Manage Budget and Resources
Resource Requirements describe the type and quantity of resources needed to fulfill each element of the work package level of the WBS. In the early phases, the pool description can be high-level, while later in the project, more specifics are detailed regarding the exact number and required skills of the resources.
If earned value (EV) = 350, actual cost (AC) = 400, planned value (PV) = 325, what is the cost variance (CV)?
A. 350
B. -75
C. 400
D. -50
Answer: D
Process - Task 5 - Manage Budget and Resources
CV = EV - AC. Thus, 350 - 400 = -50.
You are a new project manager with a large international biotech company. You have just been assigned your first project and you want to make a good initial impression. You understand that obtaining stakeholder requirements early in the project is critical to project success. All of the following are true regarding stakeholders except?
A. Stakeholders can be at different levels of the organization
B. Stakeholders must be internal to the performing organization
C. Stakeholders may exert influence over the project and its deliverables
D. Stakeholders can be organizations as well as individuals
Answer: B
Process - Task 4 - Engage Stakeholders
Choices A, C, and D are all correct about stakeholders. Choice B is wrong, because stakeholders can also be external to the performing organization.
You are a project manager for the federal government. You have been responsible for multiple projects with great success. However, this sponsor is new and requires additional status reporting. You have been asked to provide a project forecast for the stakeholders, showing them what you believe your total costs will be at the end of the project. Which metrics should you use?
A. EV and AC
B. SV and CV
C. ETC and EAC
D. SPI and CPI
Answer: C
Process - Task 5 - Manage Budget and Resources
Estimate to Complete (ETC) shows how much additional costs will be incurred from the present time until project completion, while Estimate at Completion (EAC) shows what you believe the final project costs will be.
__ __ __ shows how much additional costs will be incurred from the present time until project completion,
Estimate to Complete (ETC) shows how much additional costs will be incurred from the present time until project completion,
__ __ __ shows what you believe the final project costs will be.
Estimate at Completion (EAC) shows what you believe the final project costs will be.
You are managing a large project for a hospital. You meet with stakeholders regularly, and they appear to be pleased. You received minor changes to the requirements, but you have some significant risk events in the future. Also, you are concerned that the schedule has some resource constraints that may be challenging to overcome. You received a short work stoppage due to a minor labor dispute, but this variance is atypical and should not occur again. You have the following measurements for one of your projects: EV = 145, PV = 162, AC = 138 and BAC = 200. What is the VAC?
A. 0
B. 7
C. 9.5
D. 62
Answer: B
Process - Task 5 - Manage Budget and Resources
First, you need to calculate the EAC since the formula for VAC is BAC-EAC. The EAC formula for this question, since variances are atypical, is: EAC = AC + (BAC - EV). Plugging in the numbers from the question, you get 138 + (200-145) = EAC of 193. VAC = BAC - EAC, therefore 200 - 193 = 7.
You are a project manager for a small start-up company. You have a tight budget, and your organization needs to deliver your project on time. Also, your organization’s leadership is risk-averse. You need to brief your sponsor on how much work has been completed. Which of the following would best indicate the percentage of the planned work completed to date?
A. AC / BAC
B. EAC / BAC
C. EV - AC
D. EV / BAC
Answer: D
Process - Task 5 - Manage Budget and Resources
AC = Actual cost of work performed. EAC = Estimate at Completion. BAC = Budget at Completion EV = Budgeted cost of work performed. EV/BAC indicates the ratio of budgeted cost of work performed to budgeted cost of total work. Therefore, this would give you the best indicator of how much of the planned work you have completed. AC/BAC is not relevant as it is a ratio of actual costs to budget at completion; it does not indicate value earned. Thus, choice A is incorrect. EAC/BAC would indicate projected performance with respect to the original budget. Thus, choice B is incorrect. EV - AC is cost variance. Thus, choice C is incorrect.
You are 6 months into a project and have done quite a bit of work when you discover that the original budgeting was based on flawed information. Your sponsor has asked for a revised budget and indicates that they believe the variances are likely to continue. Which of the following is the appropriate calculation to employ?
A. BAC / CPI
B. AC + [(BAC-EV)/(CPI*SPI)]
C. AC + BAC-EV
D. AC + EV
Answer: A
Process - Task 5 - Manage Budget and Resources
Answer B considers both time and cost, but the sponsor only indicated issues with the budget. C would be used when the project encounters variances which are atypical (not expected to continue). D is a made-up formula.
You have the following activity cost estimates: Optimistic = $1,000, Pessimistic = $2,400, Most Likely = $1,400. What is the estimated activity cost using a beta distribution?
A. $1,400
B. $1,500
C. $1,600
D. $2,400
Answer: B
Process - Task 5 - Manage Budget and Resources
This question is asking you to use the beta distribution (aka PERT) formula for 3-point estimates, which is: (O + 4ML + P) / 6 = ($1,000 + 4x$1,400 + $2,400) / 6 = $1,500.
You are managing a critical global project for an IT organization. You utilized rolling wave planning throughout the project and have been closely managing risk. You are confident that your project is on schedule. You just determined that your CPI is .5625. What do you know about this project?
A. It can be finished on time if we crash the schedule.
B. We will need an extra 6 weeks to complete it.
C. The project is at budget risk.
D. The project will finish behind schedule.
Answer: C
Process - Task 5 - Manage Budget and Resources
A CPI less than 1.0 suggests that the project is experiencing poor cost performance and is therefore at budget risk.
A stakeholder is upset and confronts you about ignoring his requirements. Due to this predicament, several activities are behind schedule and you will be over budget. You know questionnaires and surveys among other documents were sent to this stakeholder and they failed to respond. How could this have been avoided?
A. By informing the sponsor about the non-participation of the stakeholder
B. By reporting the stakeholder for non-participation according to the stakeholder engagement assessment matrix
C. By updating the stakeholder engagement assessment matrix and stakeholder engagement plan
D. By submitting a change request for missed changes and follow integrated change control procedures according to the project management plan
Answer: C
Process - Task 4 - Engage Stakeholders
The question asked how this could have been avoided. When having an issue with a stakeholder, PMs are expected to be proactive early. By referring back to the stakeholder engagement assessment matrix, we would have identified the lack of engagement from the stakeholder early and determined it was not adequate for the project. The PM would then modify the stakeholder engagement plan to ensure proper engagement.
Which of the following best describes analogous estimating?
A. Most reliable on all occasions
B. Also called Bottom-up estimating
C. Provides a lower accuracy level but is relatively simple and quick to perform
D. Provides a moderate accuracy level and requires much time and effort to perform
Answer: C
Process - Task 5 - Manage Budget and Resources
Analogous estimating (also called top-down estimating) is less accurate than other estimating methods because it simply looks at past experiences and plugs in that figure. It should be used when expedience is valued over precision. Bottom-up estimating would yield the most accurate estimate but is very time consuming.
You are managing an automation project. This is the first automation project your consulting company has ever been awarded. Your client has requested that you use EVM to calculate performance and forecasting data. You are reviewing a summary status report from the start of the project through the end of Week 4, and find that AC = $39,000 and EV = $34,000. The work content of all activities is linear. If the project is budgeted at $65,000, what is the EAC (assuming that the current cost performance is typical for the remainder of the project)?
A. $84,087.97
B. $79,314.63
C. $74,541.28
D. Cannot be determined
Answer: C
Process - Task 5 - Manage Budget and Resources
Budget At Completion (BAC) = $65,000 ; CPI = EV / AC. Thus, $34,000 / $39,000 = .872. If the Cost Performance Index remains the same, EAC equals BAC / CPI. Here that works out to $65,000 / .872 = $74,541.28.
Your project has been experiencing delays so far, based on a lack of available human resources for a critical piece of work that resulted from a labor dispute. After months of negotiations, the labor dispute has finally been resolved, and you will have ready access to the resources you need moving forward. In this context, which formula would you use to determine what the project will likely have spent in total upon completion?
A. EAC = BAC / CPI
B. EAC = AC + Bottom-up ETC
C. EAC = AC + (BAC - EV)
D. EAC = (BAC - EV) / (BAC - AC)
Answer: C
Process - Task 5 - Manage Budget and Resources
If past results (variances) are not expected to continue, the correct EAC formula is AC + (BAC -EV).
Your stakeholder register is replete with stakeholders both internal and external to the project and your company. As you assess the various communication requirements of your stakeholders, you are trying to determine what communications will meet those needs. The Stakeholder Engagement Plan is most helpful in managing stakeholder expectations based on which of the following attributes?
A. It keeps the stakeholder involved with the day-to-day management of the project.
B. It helps identify all stakeholder needs and objectives for the project.
C. It gets stakeholders involved in the planning process.
D. It helps the project manager to understand stakeholder expectations and define an appropriate communications approach for each
Answer: D
Process - Task 4 - Engage Stakeholders
Various stakeholders require different types of communications, frequency, detail, etc., and the project manager must be keenly aware of these requirements in order to properly manage their expectations.
You are performing earned value management (EVM) on your project and have determined the following metrics: SV = -150, CV = 200, SPI = .85, CPI = 1.15. Which EVM metric is considered the most critical?
A. SPI
B. CPI
C. CV
D. SV
Answer: B
Process - Task 5 - Manage Budget and Resources
CPI is considered the most critical EVM metric. CPI is a measure of cost efficiency on a project and is the ratio of earned value (EV) to actual costs (AC).
Janelle is new to the organization but has a lot of experience in her field. As the new project manager, she has been asked to create a bottom-up budget for a high profile project. What are the potential drawbacks Janelle may face when conducting such an estimate?
A. It is inaccurate
B. It is very time consuming
C. It is hard to report
D. It is difficult to budget for unknown risks
Answer: B
Process - Task 5 - Manage Budget and Resources
Bottom-up budgets are calculated by engaging SMEs and detailed information while estimating and then adding up each individual component to come up with a total. The main drawback is they are very time consuming. However, they are very accurate.
The resources for a customer have not completed the required training. The project manager has to consider the risk it poses to the timely completion of the project. Customer resource training is a required project deliverable. Which action should the project manager perform?
A. Communicate with the project stakeholders to address the risk.
B. Revise the risk register and discuss it at the next project status meeting.
C. Dedicate additional post-implementation support to mitigate the risk.
D. Modify the project schedule to account for the training delay.
Answer: A
Process - Task 4 - Engage Stakeholders
Since the customer is a key stakeholder, the project manager should engage with them to address this risk. PMBOK Guide Sixth Edition (2017), 11 Project Risk management / 11.5.2.9 Decision Making, p446
Your agile team has a burn rate of $10,000 and completed 90% of their story points during their last sprint. Due to insufficient estimating, excessive overtime was required. The actual cost incurred for the sprint was $12,500. Based on this information, what is your CPI?
A. 0.90
B. 0.80
C. 0.72
D. 1.11
Answer: C
Process - Task 5 - Manage Budget and Resources
Option C is correct. Cost performance index is calculated using the following formula: EV / AC. The questions provides you with the planned value of $10,000. Additionally, we were told we finished 90% of the story points. Based on this, we can calculate earned value (EV) is equal to $9,000 (90% of $10,000). Finally, our actual cost (AC) of $12,500 is provided. Therefore, $9,000 / $12,500 = 0.72. This indicates we earned $0.72 for every dollar planned during our sprint.
The project sponsor is interested in your latest progress with the estimate costs process. She asks for a quick synopsis from you and the project team on any analogous estimates you have gathered thus far. Analogous estimating is also known as ________ estimating.
A. Bottom-up
B. Parametric
C. Top-down
D. Similar
Answer: C
Process - Task 5 - Manage Budget and Resources
This type of estimating looks to historical figures for comparable endeavors as a basis for estimating the project as a whole. In doing so, it often sacrifices accuracy for expedience. Bottom-up estimating, which is time-consuming but much more accurate, assigns estimates on a very granular level, and then aggregates the individual items to form an estimate. Similar estimates are not a PMBOK term.
What components of the Project Management Plan may require a change request as part of the Control Resources process?
A. Cost baseline
B. Resource Management Plan
C. Schedule Baseline
D. Any of these
Answer: D
Process - Task 5 - Manage Budget and Resources
Any of these areas may require modification due to actual experience in managing project resources. All changes to a baselined Project Management Plan should be submitted through the Perform Integrated Change Control Process.
You are the project manager for a large telecommunications company. You have recently been asked to lead a project to revise the interface of a cellular telephone. Your team is global and you plan to manufacture the product off-shore. Which of the following are inputs to Estimate Costs?
A. Activity cost estimate, Project Schedule, Human resource plan, Risk Register, Enterprises environmental factors, change request
B. Cost management plan, Scope baseline, Project Schedule, Human resource plan, Risk Management Plan, Enterprises environmental factors, Organizational process assets
C. Cost management plan, Scope baseline, Project Schedule, Quality management plan, Risk Register, Enterprise environmental factors, Organizational process assets
D. Scope baseline, Project Schedule, Human resource plan, Risk Register, Project funding requirements, contracts
Answer: C
Process - Task 5 - Manage Budget and Resources
The inputs to the Estimate costs process are cost management plan, scope baseline, project schedule, quality management plan, Risk Register, Enterprises environmental factors, and organizational process assets.
You are the project manager for a highway construction project. Your sponsor has asked for an updated project forecast. The project has spent $100,000 of the total budget of $400,000 and has a CPI of .85. The cost variances you have experienced thus far are expected to continue. How much more money will you spend on your project?
A. $470,588
B. $370,588
C. $240,000
D. $340,000
Answer: B
Process - Task 5 - Manage Budget and Resources
This question is asking you to calculate estimate to complete (ETC). The formula for ETC is EAC - AC. So you must first calculate EAC by using the formula BAC / CPI. $400,000 / .85 = $470,588. Now you can calculate ETC as EAC - AC = $470,588 - $100,000 = $370,588.
During work on a government project, stakeholders pressure the project manager to submit to their preferred actions. While the project manager must coordinate and plan with multiple stakeholders, the project manager must also deal with complex relations and frequently changing scenarios. What should the project manager consider doing?
A. Use the Prioritization method of categorization.
B. Use the Transition model of categorization.
C. Use the Transformation model of categorization.
D. Use the Transaction model of categorization.
Answer: A
Process - Task 4 - Engage Stakeholders
Both salience model and prioritization needs to be used to categorize for government contracts especially when the scenario is for frequently changing, complex relationships with multiple representatives involved. PMBOK Guide Sixth Edition (2017), 13. Project Stakeholder Management / 13.1.2.4 Data Representation, p513
You are the project manager for a large software company. You are currently managing a project to create a new app that will deliver dry cleaning to your location. You need to coordinate the resources required, especially the vehicles necessary to make the deliveries. Inputs to Estimate Activity Resources include which of the following?
A. Project scope statement, Activity list, Activity attributes, Milestone list, OPA
B. Enterprise Environmental Factors, Organizational Process Assets, Activity List, Activity Attributes, Resource Calendars
C. Enterprise Environmental Factors, Organizational Process Assets, Scope baseline
D. Decomposition, Rolling Wave Planning, Expert Judgment
Answer: B
Process - Task 5 - Manage Budget and Resources
The inputs to the Estimate Activity Resources process are Resource Management Plan, Risk Register, Cost Estimates, Enterprise Environmental Factors, Organizational Process Assets, Activity List, Activity Attributes and Resource Calendars.
You are the project manager for a project to create a new mobile application. According to your plan, the cost of development is $50,000 and will take 6 weeks to complete. Which of the following measurements represents the value of work that has been completed to date?
A. EAC
B. VAC
C. EV
D. PV
Answer: C
Process - Task 5 - Manage Budget and Resources
Earned Value (EV) is the value of the work that has been completed to date.
You are the project manager of a small research start-up company. In the middle of a project, you have calculated the cost performance index (CPI) as 0.8. When researching the cause of this, you note the project cost budget was estimated analogously. Which of the following is true?
A. Estimated costs should be used to measure CPI
B. SPI should be used, not CPI
C. Bottom-up estimating would have allowed for a more accurate budget estimate
D. Past history was not taken into account
Answer: C
Process - Task 5 - Manage Budget and Resources
The best way to estimate is bottom-up (Answer C). Such estimating would have improved the overall quality of the estimate, though it is very time consuming.
You are the project manager of the Everest Consulting Project. The project has a budget of $290,000 and is expected to last three years. The project is now ten percent complete and on schedule. The project is currently $10,000 over budget. What is the BAC?
A. $280,000
B. $290,000
C. $300,000
D. $870,000
Answer: B
Process - Task 5 - Manage Budget and Resources
The BAC is the budget at completion, which is given to you in the question.
Kimberly is calculating the annual depreciation of a forklift used on her project. The forklift has a book value of $30,000 and the depreciation rate is 7%. What is the annual depreciation expense?
A. $27,900
B. $2,100
C. $700
D. $428
Answer: B
Process - Task 5 - Manage Budget and Resources
The formula for this question is as follows: book value x depreciation rate $30,000 x .07 = $2100
You have determined the deliverables for a nationwide training project. However, you realize the work can not be completed alone based on the aggressive timeline. For which of the following can the work breakdown structure be used?
A. Verifying that all work items have been captured
B. Showing calendar dates for each task
C. Showing the team members assigned to the project
D. Showing the business need for the project
Answer: A
Process - Task 5 - Manage Budget and Resources
A WBS is used to break down and categorize all work items required on a project. The WBS does not provide information on specific tasks, which is why B is not correct. Team member assignment and business need would be noted on the WBS Dictionary, which is a separate output.
Which of the following indicates that a project has a CPI of 1.2?
A. PV = 4000, EV = 4800
B. AC = 4000, EV = 4800
C. AC = 4800, EV = 4000
D. PV = 4800, EV = 4000
Answer: B
Process - Task 5 - Manage Budget and Resources
CPI (Cost Performance Index) = EV/AC, and 4,800 / 4,000 = 1.2. Choices that contain information about EV and PV are irrelevant for CPI.
How is the Earned Value component of CPI derived for Agile projects?
A. It is the number of completed features or story points.
B. It is the value of the user stories in the sprint.
C. It is the value of completed features or story points.
D. It is the value of the estimated costs of the release.
Answer: C
Process - Task 5 - Manage Budget and Resources
A would be correct for SPI, not CPI. B and D are incorrect. Page 69, Agile Practice Guide
Jack, your boss and the Director of Innovation, is new to the organization and has never been part of an agile project. As the project manager, you have realized that Jack’s expectations for the project are based on misconceptions about agile frameworks. Jack has asked you to stay within strict budgetary constraints and wants definitive budget reporting. What should you do as the project manager?
A. Tell Jack that you can adapt the project to his budgetary constraints but this will most likely affect the project scope and/or schedule.
B. Tell the sponsor that this is an Agile environment and budgets do not matter, he must have an agile mindset.
C. Submit your resignation letter after you have updated LinkedIn and the Issue Log.
D. Tell Jack that this is not possible in an agile project and set aside time to educate him on the methodology.
Answer: A
Process - Task 5 - Manage Budget and Resources
Agile projects can exist in an environment with strict budgetary requirements but it will affect the project scope and schedule this should be communicated early in the project. PMBOK Guide p. 234. Make sure to know the “Considerations for Agile/Adaptive Environments” paragraphs for each knowledge area.
You are managing a software development project for a venture capitalist launching a new application. Speed to market is critical for this new app to be successful and gain significant market share. You are performing earned value management for your project and have gathered the following data: EV=100, CPI=1, SV=80. What is the value and actual cost of the work you have completed so far?
A. 100, 100
B. 1, 100
C. 1.5, 50
D. 20, 200
Answer: A
Process - Task 5 - Manage Budget and Resources
The answer is actually in the question. If EV=100, then the value of the work completed to date (EV) is $100. Since CPI= EV/AC, if CPI = 1.0, and EV is 100, then AC needs to be 100 also.
Vikas is estimating the costs to purchase graphic design software for his project. He knows that software from various providers can have different licensing and purchase agreements that may impact his cost estimates. This particular software suite is a one-time cost. What type of cost is the graphic design software?
A. Fixed cost
B. Indirect cost
C. Overhead cost
D. Variable cost
Answer: A
Process - Task 5 - Manage Budget and Resources
One-time costs on a project are fixed costs.
In order to increase the probability of project success, it is important to compare the current engagement level of stakeholders with the desired engagement level. The best way to do this is via a:
A. Stakeholder engagement plan
B. Stakeholder register
C. Stakeholder management matrix
D. Stakeholder engagement assessment matrix
Answer: D
Process - Task 4 - Engage Stakeholders
The primary purpose of the stakeholder engagement assessment matrix is to assess engagement levels. Neither the stakeholder engagement plan nor the stakeholder register provides this. There is no such document as the stakeholder management matrix
While implementing risk responses, you find that some of the risk owners are outside of the project team. What is the best way you can encourage their participation?
A. Monetary incentives
B. Telling them that they will be held to account for their actions and inactions
C. Problem solving
D. Influence
Answer: D
Process - Task 4 - Engage Stakeholders
The use of influence would be appropriate in this situation, as the risk owners do not fall under the Project Manager’s authority.
You are a newly hired project manager who is taking over a project. You have been informed by your sponsor the project is not in compliance, because the last project manager did not keep the stakeholders happy. The project is in the middle of execution without a clear plan on how to proceed. As the project manager, what is the first thing you should do?
A. Re-baseline the project so you have a fresh start and follow the project management plan
B. Conduct a review of communication documents and the requirements traceability matrix
C. Conduct an assessment of stakeholder needs and project requirements
D. Identify stakeholders and analyze their needs and requirements per the stakeholder engagement plan
Answer: D
Process - Task 4 - Engage Stakeholders
You may be inclined to select answer C in this situation. However, since you are taking over the project, the best answer is to identify stakeholders and determine their needs and requirements. The question states the stakeholders were not happy, so the first thing is to identify who they are, determine what their needs and requirements are and analyze the current stakeholder engagement plan. Maintaining stakeholder satisfaction throughout the lifecycle is required to successfully implement a project.
You are the project manager for a large health industry company. You are currently managing a project to develop medical equipment for people with obstructive sleep apnea using neurostimulation technology that delivers mild stimulation to airway muscles during sleep. Since it is in the health industry it is highly regulated and must meet strict financial constraints. Which of the following describes a Time-Phased Budget?
A. Dividing the project budget by the project duration
B. Reporting costs week by week, or month by month
C. Averaging the budget over a fixed time
D. Determining the budget needs over time, based on the resources needed to complete the work on schedule
Answer: D
Process - Task 5 - Manage Budget and Resources
Determining the budget over time based on the resources needed to complete the work on schedule is the definition of a time-phased budget.
Our potential customer, Jack, is concerned that the agile methodology your company wants to use will not work due to the fixed budgetary constraints he has for the project. You discuss an option with Jack that will allow his organization to change the scope of the project at predetermined points this will allow your customers to adjust features to fit budget capacity. What option is being discussed?
A. Dynamic scope option
B. Early Cancelation option
C. Not-to-exceed time and materials
D. The point of total assumption
Answer: A
Process - Task 5 - Manage Budget and Resources
Agile projects can exist in an environment with strict budgetary requirements but it will affect the project scope and schedule this should be communicated early in the project. In this case, the “options” listed are all described in the Agile Practice Guide p. 78.
Pat is leading a project to change the telecommunications technology throughout a college campus. He had an initial planning process with his sponsor and was informed stakeholder identification is critical in this process as previous projects with this client were delayed. So Pat seeks methods to streamline and tailor his project management process. When should Pat start and end the process of identifying stakeholders?
A. Pat should identify stakeholders either at the same time the project charter is developed or shortly after the charter is approved; it is repeated as necessary and performed at the start of each phase and when a significant change in the project or the organization occurs. This ends when the project is completed.
B. Pat should start the process as soon as the project charter is signed off; it is performed at the start of each phase. This ends when the project is completed.
C. Pat should start the process as soon as possible, and complete it at the end of the project phase.
D. Pat should start the process as soon as possible and complete it as soon as the Planning Process Group is completed.
Answer: A
Process - Task 4 - Engage Stakeholders
The Identify stakeholders process occurs for the first time either at the same time the project charter is developed and approved, it is repeated as necessary and performed at the start of each phase and when a significant change in the project or the organization occurs. This process ends when the project is completed. The process does not have to wait until the project charter has been completed (Choice B). The process can reoccur and is not truly complete until the entire project has been completed (making Choices C and D incorrect).
You have a Fixed Price contract and your variances are typical. Which of the following subsidiary plans defines how project team members are released from the project?
A. Project management plan
B. Resource management plan
C. Requirements management plan
D. Risk management plan
Answer: B
Process - Task 5 - Manage Budget and Resources
The resource management plan determines how project team members are acquired and released from the project team, among other things like training, compliance, rewards, safety, etc. Choice A is also technically correct since the resource management plan is a component of the project management plan, but B is the more precise answer choice.
A project is underway and is 50% completed. An essential project team member requests 1.5 months leave for personal matters. What should the project manager do first?
A. Check with this team member to see if the leave can be postponed.
B. Discuss the issue with the functional manager and request a replacement.
C. Assess how the leave will impact on the project.
D. Refer to the resource management plan.
Answer: C
Process - Task 5 - Manage Budget and Resources
The FIRST thing the project manager needs to do is to understand what impact (if any) this absence will have on the project. PMBOK Guide Sixth Edition (2017) PMI/PMI/11.3.2.3/p423
You are the PM of a project developing a new mobile device application. What type of data analysis can best be used to determine resources needed at upcoming stages of the project?
A. Alternatives Analysis
B. Trend Analysis
C. Cost-benefit Analysis
D. Performance Reviews
Answer: B
Process - Task 5 - Manage Budget and Resources
The question specifies that you are seeking to use Data Analysis to determine resources needed for upcoming stages of the project, which would indicate Trend Analysis. While the other answers are types of Data Analysis, they do not offer the same insight.
You are the project manager for a large insurance company. You are currently managing a project to create a custom-tailored lending program for commercial property and casualty insurance agents. You find that you are under budget and your Program Manager has requested a review of all project budgets. Undistributed budget is used in which of the following ways?
A. Retained for contingencies
B. Held until work authorizations are provided for any work that has not yet been performed or been assigned a control account
C. Distributed to other projects falling behind on costs
D. To increase profit
Answer: B
Process - Task 5 - Manage Budget and Resources
Undistributed budget is kept in a holding account for scope work that is yet to be assigned to a control account.
Which of the following tools helps in determining the probability of completing the project within specific cost targets?
A. Assumption Testing
B. Precedence Diagramming Method
C. What-If Scenario Analysis
D. Monte Carlo Simulation
Answer: D
Process - Task 5 - Manage Budget and Resources
Choice A is wrong because assumption testing deals with establishing the stability of assumptions and consequences on the project objectives against an assumption turning out false. Choice B is incorrect because the precedence diagramming method is a networking technique for activity sequencing with dependencies. Choice C is wrong because What-If Scenario Analysis is the process of evaluating scenarios to predict their effect on the project objectives. Choice D is correct. Monte Carlo Simulation helps in determining the probability of completing the project within specific cost ranges by running a computer model which randomly generates results to predict the most likely outcomes.
__ __ deals with establishing the stability of assumptions and consequences on the project objectives against an assumption turning out false
assumption testing deals with establishing the stability of assumptions and consequences on the project objectives against an assumption turning out false
__ __ method is a networking technique for activity sequencing with dependencies.
precedence diagramming method is a networking technique for activity sequencing with dependencies.
__-_ __ __ is the process of evaluating scenarios to predict their effect on the project objectives.
What-If Scenario Analysis is the process of evaluating scenarios to predict their effect on the project objectives.
__ __ __ helps in determining the probability of completing the project within specific cost ranges by running a computer model which randomly generates results to predict the most likely outcomes.
Monte Carlo Simulation helps in determining the probability of completing the project within specific cost ranges by running a computer model which randomly generates results to predict the most likely outcomes.
Your project expenses have been well above baseline for the past 3 months. You are interested in determining the root cause of the variance in your project financials. You have begun by looking at your direct costs to see if any key items stand out. A direct cost to a project could be ____?
A. Corporate salaries
B. Office cooling devices
C. Materials
D. Health insurance for company employees
Answer: C
Process - Task 5 - Manage Budget and Resources
Raw material is the only item that is likely to be a direct cost, meaning it is directly attributable to the project work. Corporate salaries, office cooling devices, and health insurance are known as general, indirect or overhead costs.
You and your team are creating the initial Stakeholder Register. Besides the name, location and contact information for each stakeholder, there are several other pieces of information that are important to capture. Which of the following would not be included?
A. Current attitude towards the project
B. Threat risk tolerance level (risk seeking or risk averse)
C. Communication preferences
D. Category or classification
Answer: A
Process - Task 4 - Engage Stakeholders
Attitude is tracked on the Stakeholder Engagement Assessment Matrix (current and desired).
Your team is estimating the tasks for the current sprint. They are trying to determine the cost of the activities and have arranged the tasks based on the relative size of the tasks. The categories that these tasks can fall into are XL, L, M, S, XS. Which of the following would best describe the estimating tool used here?
A. Analogous Estimating
B. T-shirt sizing
C. Parametric Estimating
D. Planning Poker
Answer: B
Process - Task 5 - Manage Budget and Resources
The above estimating refers to T-shirt sizing. Analogous refers to comparing to historical information. Parametric uses a statistical relationship and Planning Poker uses a modified Fibonacci sequence. PMI Authorized PMP Exam Prep Student Guide/ Page 72
You are the project manager for a large IT company. You are currently managing a project to create a network for a mid-sized marketing and advertising company in New York. You are located in California so are utilizing a virtual team. What are the tools and techniques of Estimate Activity Resources?
A. PDM, Schedule Network Templates, Dependency Determination, Applying Leads & Lags
B. Enterprise Environmental Factors, Organizational Process Assets, Activity List, Activity attributes, Resource Calendars
C. Expert Judgment, Alternatives Analysis, Meetings, Project Management Information Software
D. Decomposition, Rolling Wave Planning, Expert Judgment
Answer: C
Process - Task 5 - Manage Budget and Resources
Expert Judgment, Alternatives Analysis, Meetings, Project Management Information Software are among the tools and techniques of the Estimate Activity Resources process.
Which of the following is not an effective technique for Controlling Resources?
A. Authorization
B. Problem Solving
C. Negotiation
D. Influencing
Answer: A
Process - Task 5 - Manage Budget and Resources
Negotiation and Influencing are both types of Interpersonal and Team Skills used by a Project Manager.
What is the key benefit of the Control Resources process?
A. Ensuring resources are available where needed, when needed
B. Supervising the resources
C. Ensuring that cost and schedule objectives are being not exceeded by resources
D. Providing management and supervision to resources
Answer: A
Process - Task 5 - Manage Budget and Resources
The key benefit of Control Resources is ensuring that the assigned resources are available to the project at the right time and in the right place and are released when no longer needed. The other answers allude to basic management responsibilities.
You are a project manager in the financial industry. All of your projects are cost constrained and you actively manage cost using CPI and CV. All of the following are tools used to determine budget except which one?
A. Cost aggregation
B. Data analysis
C. Earned value management
D. Historical relationships
Answer: C
Process - Task 5 - Manage Budget and Resources
Cost Aggregation, Data Analysis, Expert Judgment, Historical Relationships, and Funding Limit Reconciliation are the tools and techniques of Determine Budget.
You are the PM of a project that is falling behind schedule due to resource shortages. You have documented the problem and believe that you have implemented a good solution, which you are now checking. What step in Problem Solving did you skip?
A. Define the problem
B. Solve
C. Analyze
D. Check the Solution
Answer: C
Process - Task 5 - Manage Budget and Resources
The six steps of Problem Solving can include: Identify the problem, Define the problem, Investigate, Analyze, Solve, Check the Solution. Given the scenario and the possible answers, the Analyze step (Find the root cause of the problem) is the only one that is not specified as having been completed.
The six steps of Problem Solving can include:
The six steps of Problem Solving can include: Identify the problem, Define the problem, Investigate, Analyze, Solve, Check the Solution.
