Exam Part 2

Question 1

Which type of Project Management Office provides a consultative role to projects by supplying templates, best practices, training, access to information, and lessons learned from other projects?

1. External Consultant
2. Supportive
3. Controlling
4. Directive

Answer 1

Answer: Supportive

Overall explanation

Supportive PMOs provide a consultative role to projects by supplying templates, best practices, training, access to information, and lessons learned from other projects. This type of PMO serves as a project repository. The degree of control provided by the PMO is low. In contrast, Controlling PMOs provide support and require compliance through various means. The degree of control provided by the PMO is moderate. Compliance may include (Adoption of project management frameworks or methodologies, use of specific templates, forms, and tools, conformance to governance frameworks). And finally, Directive PMOs take control of the projects by directly managing the projects. Project managers are assigned by and report to the PMO. The degree of control provided by the PMO is high. Whether or not the PMI is an external consultant is irrelevant to this question.

Question 2

One of the two major influences on projects is known as EEFs. What does “EEF” stand for?

1. Evaluation Elemental Factors
2. Enterprise Estimation Field
3. Empirical Evaluation Failures
4. Enterprise Environmental Factors

Answer 2

Answer: Enterprise Environmental Factors

Overall explanation

The correct answer is Enterprise Environmental Factors. EEFs originate from the environment outside of the project and often outside of the enterprise, and may have an impact at the organizational, portfolio, program, or project level.

Question 3

The Communication Model for Cross-Cultural Communication begins with the Sender being the one to Encode a message. He or she then transmits it, and it is received by the Receiver and decoded. The Receiver then returns some form of acknowledgement to the sender confirming receipt. But what is the thing called which can and does disrupt both the sender transmitting their message and the receiver transmitting their feedback.

1. Culture
2. Feedback Message
3. Noise
4. Not having a Communication Plan

Answer 3

Answer: Noise

Overall explanation

In and of itself, not having a communication plan will not be a contributing factor in disrupting the communication between a sender and a receiver. A cultural difference may cause - but is not in and of itself the thing disrupting) the correct answer, which is Noise. And finally, the Feedback Message - if any is provided by the Receiver - can also be disrupted by Noise. Noise can be anything from personal biases, to cultural differences to actual noise such as loud music or language barriers inhibiting clarity.

Question 4

Which of the following is not considered a data gathering technique for developing a project charter?

1. Responsibility Assignment Matrix
2. Interviews
3. Focus Groups
4. Brainstorming

Answer 4

Answer: Responsibility Assignment Matrix

Overall explanation

While the Responsibility Assignment Matrix, or RAM, may help you identify who is responsible for helping with various parts of the charter, the three main techniques for gathering data to put into a project charter are conducting focus groups, interviews or brainstorming sessions with Subject Matter Experts (SMEs).

Question 5

It’s time for Emma to do her weekly status report again. It’s a very important tool she’s found is effective at letting all of her stakeholders know where things stand at the end of each week, regardless of what level of engagement the stakeholder is at. What input to “Manage Communications” is this status report an example of?

1. Project Management Plan
2. EEFs and OPAs
3. Project Documents
4. Work Performance Reports

Answer 5

Answer: Work Performance Reports

Overall explanation

Work Performance Reports -Reports are circulated to the project stakeholders through this process -Can include status and progress reports -Work performance reports can contain earned value graphs and information, trend lines and forecasts, defect histograms, contract performance information, and risk summaries -They can be presented as dashboards, heat reports, stop light charts, or other representations useful for creating awareness and generating decisions and actions

Question 6

How many data representation techniques are there?

1. 8
2. 10
3. 15
4. 5

Answer 6

Answer: 15

Overall explanation

There are 15. Affinity diagrams, cause-and-effect diagrams, control charts, flowcharts, hierarchical charts, histograms, logical data model, matrix diagrams, matrix-based charts, mind mapping, probability and impact matrix, scatter diagrams, stakeholder engagement assessment matrix, stakeholder mapping/representation and text-oriented formats.

Question 7

There’s a set of technical guidelines known as DfX (Design for X) which can be used to manage quality. Using the DfX that’s decided upon within your project may result in cost reduction, quality improvement, better performance, and what?

1. Customer Satisfaction
2. Improved Engagement
3. Better Communication
4. Shortened Project Schedule

Answer 7

Answer: Customer Satisfaction

Overall explanation

Design for X (DfX) is a set of technical guidelines that may be applied during the design of a product for the optimization of a specific aspect of the design. DfX can control or even improve the product’s final characteristics. The X in DfX can be different aspects of product development, such as reliability, deployment, assembly, manufacturing, cost, service, usability, safety, and quality. Using the DfX may result in cost reduction, quality improvement, better performance, and customer satisfaction. The other three choices here have nothing to do with product design.

Question 8

Which of the following measures is considered the most critical EVA (Earned Value Analysis) metric and measures the cost efficiency for the work completed?

1. CPI (Cost Performance Index)
2. AC (Actual Cost)
3. VAC (Variance at Completion)
4. CV (Cost Variance)

Answer 8

Answer: CPI (Cost Performance Index)

Overall explanation

The cost performance index (CPI) is a measure of the cost efficiency of budgeted resources, expressed as a ratio of earned value to actual cost. It is considered the most critical EVA metric and measures the cost efficiency for the work completed. Equation: CPI = EV (Earned Value)/AC (Actual Cost).

Question 9

How do you manage a project’s core objectives during the Executing phase?

1. Managing Budget
2. Managing Quality
3. Managing Expectations
4. Managing Time

Answer 9

Answer: Managing Quality

Overall explanation

Thougth managing expectations, the budget and time are all important qualities of an effective Project Manager, a project’s core objectives are specifically managed by ensuring what’s being produced during the Executing phase is of acceptable quality. Specifically, Quality Management is the process of translating the Quality Management Plan into executable quality activities that incorporate the organization’s quality policies into the project.

Question 10

Which project roles are responsible for identifying both individual and overall project risks?

1. All project roles
2. Project Manager
3. Business Analyst
4. Project Sponsor

Answer 10

Answer: All project roles

Overall explanation

The Project Management Book of Knowledge (PMBOK) makes it clear that “all project stakeholders should be encouraged to identify individual project risks. It is particularly important to involve the project team so they can develop and maintain a sense of ownership and responsibility for identified individual project risks, the level of overall project risk, and associated risk response actions.”

Question 11

Fill in the blank: A portfolio is a collection of projects, programs, subsidiary portfolios, and ____________ managed as a group to achieve strategic objectives.

1. Requirements
2. Operations
3. Budgets
4. Resources

Answer 11

Answer: Operations

Overall explanation

This defintion of a portfolio comes straight from the Project Management Book of Knowledge. It is Operations which rounds out that definition, as Operations within the context of organizational structure support a company’s strategic objectives at the same level as projects do…the hierarchy is: Strategic Objectives –> Portfolio –> Programs –> Projects & Operations –> Shared Resources and Stakeholders.

Question 12

There are three types of project management charts to help display schedules and timelines in more visual ways. If you have a stakeholder who only wants to see the start and end dates of major milestones, which type of chart is best-suited to her needs?

1. Project Schedule Network Diagrams
2. Milestone Charts
3. Pivot Tables
4. Bar Charts (aka Gantt Charts)

Answer 12

Answer: Milestone Charts

Overall explanation

A Bar Chart is a graphical display of project elements, dates and durations, typically used by project teams. A Milestone Chart is a graphical display of significant events in the project, usually completion of major deliverables. This type of display is often used for Executive Management. Project Schedule Network Diagrams are a graphical way to view tasks, dependencies, and the critical path of a project. These often resemble Visio diagrams (flowcharts) and provide a clear “sequence of events” that has to take place from now through project completion. Pivot Tables are an Excel feature that hasn’t much to do with displaying a project schedule. A Milestone Chart will give your stakeholder what she’s looking for.

Question 13

If you work in a hospital’s Information Technology department, and you are in charge of managing only network and server changes because you’re IT, while the neuroscience managers are responsible for implementing a remote stroke assessment network, the billing department manager is responsible for implementing new billing codes hospital-wide and the Facilities manager is responsible for the project to modernize all hospital elevators, what structural type of organization is your employer?

1. Weak matrix organization
2. Balanced matrix organization
3. Projectized organization
4. Functional organization

Answer 13

Answer: Functional organization

Overall explanation

Each department in a functional organization will do its project work independently of other departments. That’s not to say that other departments don’t get called upon for tasks, such as the neuroscience manager requiring IT to open up network ports or firewalls for their software to work, but the actual project management happens within each functional silo rather than from a centralized Project Management Office.

Question 14

During which project phase does Monitoring and Controlling project work really ramp up?

1. Planning
2. Closing
3. Initiating
4. Executing

Answer 14

Answer: Executing

Overall explanation

Monitoring and Controlling project work ramps up once the project is in execution.

Question 15

Directing and Managing Project Work and Managing Project Knowledge are the two components of which part of which of the following:

1. Core Objectives Management
2. Facilitation Management
3. Executing Process
4. Project Integration Management

Answer 15

Answer: Project Integration Management

Overall explanation

Directing and managing project work is he process of leading and performing the work defined in the project management plan and implementing approved changes to achieve the projects objectives. Managing project knowledge is the process of using existing knowledge and creating new knowledge to achieve the project’s objectives and contribute to organizational learning. These two components define Project Integration Management.

Question 16

An input to identifying project stakeholders is:

1. Project Management Plan
2. Statement of Work (SOW)
3. Business Case
4. Enterprise Environmental Factors (EEF)

Answer 16

Answer: Enterprise Environmental Factors (EEF)

Overall explanation

The only one of these four that is a true input to the Stakeholder Register is the EEF. Both the Business Case and SOW are prequisites to the project Initiating phase, and the Project Management Plan is a deliverable that comes out of the next phase, Planning.

Question 17

Which of the following areas are least likely to fall under the Initiating process group?

1. Obtaining approval to proceed to the next phase of the project
2. Engaging project stakeholders
3. Developing a business case that can be used to inform the creation of a project charter.
4. Understanding a project’s purpose and objectives

Answer 17

Answer: Developing a business case that can be used to inform the creation of a project charter.

Overall explanation

A project manager must engage stakeholders to obtain the information necessary to complete a stakeholder register. The project manager must also understand a project’s purpose and objectives well enough to articulate them in a project charter, and may be the person engaging decision-makers after the charter’s written, in order to obtain approval to proceed. The development of a business case does not happen within the project management life cycle at all, but is a pre-cursor to something becoming a project, and thus while a project manager may have involvement at that stage, it occurs before the Initiating process begins.

Question 18

There are four generic phases of a project life cycle and though not all five of the process groups match those four phases exactly, the Closing process group - while also being able to apply to individual project phases - most closely aligns itself to which generic project phase?

1. Carrying out the work
2. Starting the project
3. Organizing and Preparing
4. Ending the project

Answer 18

Answer: Ending the project

Overall explanation

Ending the project is where you will be able to apply all of the Closing process groups though you can also use some of them if you are closing out contracts or project phases independent of the full and complete end of a project.

Question 19

A project charter is not considered to be a ___________ because there is no consideration or money promised or exchanged in its creation.

1. Project Output
2. Contract
3. Project Artifact
4. Deliverable

Answer 19

Answer: Contract

Overall explanation

An approved project charter formally initiates a project, but contractual agreements are handled separately, often with the Procurement Management arena.

Question 20

Elena’s project to implement a new cost accounting system within a sub-division of her company’s Finance department has to be implemented three months before the end of the organization’s fiscal year so the old system can be decommissioned prior to the new system taking on all the information required for year-end reporting. Which of the four PDM logical relationships exists between the old cost accounting system and the new one Elena’s implementing?

1. Finish-to-start (FS)
2. Start-to-start (SS)
3. Start-to-finish (SF)
4. Finish-to-finish (FF)

Answer 20

Answer: Start-to-finish (SF)

Overall explanation

The correct answer is Start-to-finish (SF). PDM includes four types of dependencies or logical relationships. A predecessor activity is an activity that logically comes before a dependent activity in a schedule. A successor activity is a dependent activity that logically comes after another activity in a schedule. -Finish-to-start (FS). A logical relationship in which a successor activity cannot start until a predecessor activity has finished. -Finish-to-finish (FF). A logical relationship in which a successor activity cannot finish until a predecessor activity has finished. -Start-to-start (SS). A logical relationship in which a successor activity cannot start until a predecessor activity has started. -Start-to-finish (SF). A logical relationship in which a successor activity cannot finish until a predecessor activity has started.

Question 21

What are the three types of bid documents that can be used when seeking bids for goods or services for external companies?

1. RFI, RFQ and RFP
2. SOW, RFI and RFP
3. RFP, SOW and TOR
4. RFI, RFQ and SOW

Answer 21

Answer: RFI, RFQ and RFP

Overall explanation

A procurement Statement of Work (SOW) is one component of an RFI, RFQ or RFP. It is not, on its own, used as a bid document. A TOR, or Terms of Reference, is similar to an SOW, often the two terms being used interchangeably. Like an SOW, a TOR is merely a component of bid documents, but is not used on its own for such. An RFI (Request for Information), RFQ (Request for Quote) and an RFP (Request for Proposal) are the standard bid documents utilized when an organization wants to solicit external vendors for goods or services.

Question 22

What is a project stakeholder?

1. An individual, group or organization who believes very much in the project objectives and does everything they can to promote it to the rest of the involved parties.
2. An individual, group, or organization, who may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a project.
3. A person or group of people who perceive themselves to be affected by the project.
4. Someone who runs the project.

Answer 22

Answer: An individual, group, or organization, who may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a project.

Overall explanation

Stakeholders can be individuals, groups or entire companies, and what makes them stakeholders is the most important part of this definiton, which is “who may affect, be affected by or perceive itself to be affected by.” Remember that for many, perception is reality and so even if their belief is only a perception, they are no less a stakeholder than someone provably affected by the project. Stakeholders do not run the project and those who perceive themselves as affected are not hte only possible types of stakeholders. The final incorrect response describes project champions - these are the proponents of the project…the cheerleaders, if you will…to other individuals, groups and organizations. While champions are usually stakeholders, not all stakeholders are champions.

Question 23

Why is it important to identify and document stakeholders as soon as possible after the project charter has been signed and a project manager has been assigned to a project?

1. All of these.
2. Because a stakeholder can negatively influence the project, it’s best to know about them as soon as possible to help mitigate the risk they pose.
3. Doing so increases a project’s chances of success by ensuring those who need to be involved are involved from the beginning.
4. To provide visibility into aspects of the project that may not have been considered had stakeholders been misidentified or excluded.

Answer 23

Answer: All of these.

Overall explanation

Starting a project’s Planning phase without knowing a) who all the impacted people or companies are, b) understanding why they are impacted, positively or negatively, by the project’s outcome, and c) having a good handle on the environment within which the project is operating, sets a project up for failure rather than success. If the sales manager is not engaged on a project trying to implement new sales goal calculations then he may block the project from implementing even if the project team’s spent 6 months trying to find the best solution, if for no other reason than that he has not lent his expertise to the solution identification process which means something may have been missed that’s important to him or the company, or there may be state laws he knows but the project team didn’t consider.

Question 24

Once a project management plan has been baselined, what is the only way through which any changes may be made to it (which process group)?

1. Perform Integrated Change Control
2. Monitor and Control Project Work
3. Validate Scope
4. Close Project or Phase

Answer 24

Answer: Perform Integrated Change Control

Overall explanation

Before the baselines are defined, the project management plan may be updated as many times as necessary. No formal process is required at that time. But, once it is baselined, it may only be changed through the Perform Integrated Change Control process. Consequently, change requests will be generated and decided upon whenever a change is requested.

Question 25

When are the business case and the benefits management plan developed?

1. During the intiating processes
2. Prior to project initiation
3. While the project is executing it’s project management plan
4. During the closing processes

Answer 25

Answer: Prior to project initiation

Overall explanation

Both the business case and the benefits management plan are developed prior to the project being initiated. Additionally, both documents are referenced after the project has been completed. Therefore, they are considered business documents rather than project documents or components of the project management plan.

Question 26

Integration is a critical skill for project managers. Which of the following is NOT one of the levels that performing integration takes place at?

1. Integration at the Process Level
2. Integration at the System Level
3. Integration at the Cognitive Level
4. Integration at the Context Level

Answer 26

Answer: Integration at the System Level

Overall explanation

The correct answer is “Integration at the System Level” because “System Level’ is made up. Project management may be seen as a set of processes and activities that are undertaken to achieve the project objectives. Although there is no stated definition on how to integrate the project processes, it is clear that a project has a small chance of meeting its objective when the project manager fails to integrate the project processes where they interact. The project manager should strive to become proficient in all of the Project Management Knowledge Areas. In concert with proficiency in these Knowledge Areas, the project manager applies experience, insight, leadership, and technical and business management skills to the project. Finally, it is through the project manager’s ability to integrate the processes in these Knowledge Areas that makes it possible to achieve the desired project results. Project managers need to be cognizant of the project context and these new aspects when managing the integration. Then project managers can decide how to best use these new elements of the environment in their projects to achieve success.

Question 27

The Tuckman Ladder (1965) is one of the models used to describe team development, with Forming being the first stage. How many stages of development does Tuckman outline that a team goes through?

1. 5
2. 4
3. 6
4. 8

Answer 27

Answer: 5

Overall explanation

One of the models used to describe team development is the Tuckman ladder (Tuckman 1965) which includes 5 stages of development that teams go through. Tuckman maintained that these phases are all necessary and inevitable in order for the team to grow, to face up to challenges, to tackle problems, to find solutions, to plan work, and to deliver results. The five stages are: Forming, Storming, Norming, Performing and Adjourning.

Question 28

The key benefits of the Manage Team process are all of the following EXCEPT:

1. Resolves Issues
2. Keeps Stakeholders Engaged
3. Manages Conflict
4. Influences Team Behavior

Answer 28

Answer: Keeps Stakeholders Engaged

Overall explanation

The key benefit of this process is that it influences team behavior, manages conflict, and resolves issues. As a result of managing the project team, change requests are submitted, the human resources management plan is updated, issues are resolved, input is provided for performance appraisals, and lessons learned are added to the organizationʻs database. Managing the project team is not directly beneficial to how, why or the results of keeping project stakeholders engaged.

Question 29

Project management is divided into how many process groups?

1. 10
2. 8
3. 4
4. 5

Answer 29

Answer: 5

Overall explanation

Project Management is divided into 5 Process Groups (Initiating, Planning, Executing, Monitoring & Controlling and Closing Process Group)

Question 30

Which of these Tools & Techniques is NOT used to Manage Stakeholder Engagement?

1. Advertising
2. Communication Methods
3. Interpersonal Skills
4. Management Skills

Answer 30

Answer: Advertising

Overall explanation

Advertising is one of the Tools & Techniques used in Conducting Procurements. Different stakeholders may require different communication methods, or specific interpersonal or management skills from us as the project managers, so our toolkit needs to be fulls of ways to do this.

Question 31

What is the purpose of the initiating process?

1. To develop a business case for the purpose of obtaining authorization to embark upon the project management process.
2. To kick off the planning phase of a project.
3. To create a project charter and stakeholder register.
4. To define a new project or a new phase of an existing project by obtaining authorization to start the project or phase.

Answer 31

Answer: To define a new project or a new phase of an existing project by obtaining authorization to start the project or phase.

Overall explanation

Though the project charter and stakeholder register are outputs of the initiating phase, they are not the reason the phase is done. The purpose of this phase is to obtain someone’s (or a group of someones’) authorization to start a project. The business case doesn’t work here because that’s a precursor to the initiating phase, allowing a company to decide whether there’s enough of a case to even begin writing a charter, for example. And finally, the planning phase isn’t kicked off by the intiating phase. The planning phase simply begins once signoff on the initiating phase is obtained.

Question 32

Fill in the blank: Portfolio management aligns portfolios with organizational strategies by selecting the right programs or projects, prioritizing the work, and providing the needed __________.

1. Resources
2. Project Manager
3. Assets
4. Funds

Answer 32

Answer: Resources

Overall explanation
While money is necessary to fund any project - even if it’s to pay the salaries of internal employees as the project’s only cost - providing that is simply one of several ways that needed resources can be supplied (e.g. via buying needed materials or hiring consultants). Organizational assets of many kinds also falls under the broader label of resources but simply stating “needed assets” is too limiting for the broader needs of portfolio management. And finally, while many may argue that having the right project manager could make or break a project, a project manager is once again just one of many different resources a portfolio may require to execute its objectives.

Question 33

There are eight inputs to the Close Project or Phase process. Of those listed here, which - when the project is audited - will factor into determining how well the project did what the requirements and scope set out to do?

1. Project documents
2. Project charter
3. Accepted deliverables
4. Business documents

Answer 33

Answer: Accepted deliverables

Overall explanation

Of the answers listed, project documents business documents and the project charter cannot provide you with the information needed to determine whether or not the project’s scope baseline and requirements were met, other than by conveying to you what those were. It’s going to be the accepted deliverables that provide that insight - did those deliverables meet expectations? Meet quality metrics? Meet requirements? Fulfill the scope? Satisfy the stakeholders?

Question 34

Martin is about to change his project’s scope baseline for the fourth time, as his team continues discovering missed business requirements as they work through evaluating different die-casting vendors. So far the first baseline change was to the scope, which also resulted in a schedule change adding 2 months to the timeline. The second baseline change was to the project’s cost, as was the third. Their most recent discovery has resulted in yet another schedule change and the change request to add six more weeks to the project schedule was just approved by the project’s steering committee. When Martin re-baselines the schedule, what is the “starting point” he should use to calculate the new dates?

1. The third baseline
2. the original project schedule/estimated completion date
3. The first baseline
4. The second baseline

Answer 34

Answer: The third baseline

Overall explanation

Changes to baselines are only made from the last baseline forward. Past performance is not changed. This protects the integrity of the baselines and the historical data of past performance.

Question 35

A project is contracted on a Cost-Plus-Incentive-Fee (CPIF) basis. The contract states that if the final costs are less than expected costs, the sharing formula for cost savings is 80:20. The targeted cost is US$750,000 with a 10 percent fee. If the project comes in at US$720,000, what would be the total cost of the contract?

1. US$720,000
2. US$750,000
3. US$756,000
4. US$736,000

Answer 35

Answer: US$756,000

Overall explanation

In a Cost-Plus-Incentive-Fee (CPIF) type of contract, the seller is reimbursed for allowable costs for performing the contract work and receives a predetermined fee. In some cases, if the final costs are less than the expected costs, then both the buyer and the seller benefit from the cost saving based on a pre-negotiated sharing formula. For this question: the predetermined fee is 10% of US$750,000 = US$75,000. Since the project came in at US$720,000, the cost saving is 750,000 - 720,000 = 30,000. The sharing formula is 80:20, so the additional payout to the seller = (20/100)*30,000 = 6,000. Therefore, the total cost of the contract = 720,000 + 30,000 + 6,000 = US$756,000. Clearly this is to the disadvantage of the buyer, whose original estimate was less than this amount.

Question 36

Ediz has been talking to a few other project managers about various communication tools and techniques they use, at his PMI chapter’s annual celebration dinner. While discussion the different PMISs they’re all using, Ediz shares that he prefers providing status reports via a combination of web conferencing, since his stakeholders are scattered across the United States, and publishing the reports and a project monitoring dashboard on a password-protected website only they can access, which also serves as an online project management tool they use to provide statuses to each other. Which PMIS Tool or Technique are Ediz’s preferred methods an example of?

1. All three of these answers are correct
2. Electronic project management tools
3. Social media management
4. Electronic communications management

Answer 36

Answer: All three of these answers are correct

Overall explanation

The following definitions/examples from the PMBOK demonstrate why Ediz’s preferences demonstrate all three of the PMIS tools and techniques under Project Management Information System (PMIS): -Electronic project management tools: Project management software, meeting and virtual office support software, web interfaces and work management tools -Electronic communications management: Email, fax, and voice mail; audio, video and web conferencing; and websites and web publishing -Social media management: Websites and web publishing; and blogs and applications, which offer the opportunity to engage with stakeholders and form online communities

Question 37

How many Knowledge Areas are encompassed within the Closing process group?

1. 4
2. 1
3. 6
4. 10

Answer 37

Answer: 1

Overall explanation

Only Knowledge Area 4, Project Integration Management, has a component within the Closing process group, and that is: Close Project or Phase.

Question 38

Which of the following is not a key benefit of the Initiating process “Develop Project Charter?”

1. creates a formal record of the project
2. it provides a direct link between the project and the strategic objectives of the organization
3. promotes the engagement of team members as local domain experts in integration management
4. shows the organizational commitment to the project

Answer 38

Answer: promotes the engagement of team members as local domain experts in integration management

Overall explanation

Develop Project Charter is the process of developing a document that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities. Key benefits of this process are that it provides a direct link between the project and the strategic objectives of the organization, creates a formal record of the project, and shows the organizational commitment to the project. The one that doesn’t belong is “promotes the engagement of team members as local domain experts in integration management” because this describes how iterative and agile approaches benefit project integration management.

Question 39

Which of the following project documents used to help determine the budget for a project, indicates how the various estimates were derived and can be used to make a decision on how to respond to variances?

1. Cost estimates
2. Project schedule
3. Risk register
4. Basis of estimates

Answer 39

Answer: Basis of estimates

Overall explanation

The amount and type of additional details supporting the duration estimate vary by application area. Regardless of the level of detail, the supporting documentation should provide a clear and complete understanding of how the duration estimate was derived. Supporting detail for duration estimates may include: Documentation of the basis of the estimate (i.e., how it was developed), Documentation of all assumptions made, Documentation of any known constraints, Indication of the range of possible estimates (e.g., ±10%) to indicate that the duration is estimated between a range of values), Indication of the confidence level of the final estimate, and Documentation of individual project risks influencing this estimate.

Question 40

When David finishes aggregating all of his cost estimates for the project he’s managing, he adds a contingency of 15% as per his project sponsor’s direction. What is another name for the contingency that David’s adding to what will become the overall project budget?

1. Data Analysis
2. Cost Aggregation
3. Expert Judgment
4. Management Reserves

Answer 40

Answer: Management Reserves

Overall explanation

A data analysis technique that can be used in the Determine Budget process includes but is not limited to reserve analysis, which can establish the management reserves for the project. Management reserves are an amount of the project budget withheld for management control purposes and are reserved for unforeseen work that is within scope of the project. Management reserves are intended to address the unknown unknowns that can affect a project. The management reserve is not included in the cost baseline but is part of the overall project budget and funding requirements. When an amount of management reserves is used to fund unforeseen work, the amount of management reserve used is added to the cost baseline, thus requiring an approved change to the cost baseline.

Question 41

One of the tools and techniques for developing the project schedule involves identifying which series of tasks will take the longest to complete. What is this technique called?

1. Resource Optimization
2. Schedule Compression
3. Critical Path Method
4. Data Analysis

Answer 41

Answer: Critical Path Method

Overall explanation

The correct answer is the Critical Path Method, in which you identify which path (series of tasks) within the project is the longest from start to finish, which includes taking into consideration all predecessors and successors. Data Analysis methods includes “what-if” scenarios and simulations. Schedule Compression refers to fast tracking a project, which is high risk, or crashing a project, which is high cost. And finally, resource optimization involves scheduling projects around resource availability versus other factors.

Question 42

The way a RACI chart is matrixed typically assumes that how many people will be accountable for a work package?

1. none
2. 3 or more
3. 1
4. 2

Answer 42

Answer: 1

Overall explanation

The RACI matrix format shows all activities associated with one person and all people associated with one activity. This also ensures that there is only one person accountable for any one task to avoid confusion about who is ultimately in charge or has authority for the work.

Question 43

Danielle is managing a project to build a new passenger-bearing rocket that a private company is planning to launch into space in five years. She has been reviewing her activity list and adding information as she receives it, and tying together predecessors and their successors, leads and lags, resource requirements and the locations where all of the different components are being manufactured. What are all of these things Danielle is adding to the project’s activities called?

1. Project Management Plan
2. Resource Requirements
3. Activity Attributes
4. Project Schedule

Answer 43

Answer: Activity Attributes

Overall explanation

Activity attributes. These extend the description of the activity by identifying multiple components associated with each activity. The components for each activity evolve over time. During the initial stages of the project, they include the unique activity identifier (ID), WBS ID, and activity label or name. When completed, they may include activity descriptions, predecessor activities, successor activities, logical relationships, leads and lags, resource requirements, imposed dates, constraints, and assumptions. Activity attributes can be used to identify the place where the work has to be performed, the project calendar the activity is assigned to, and the type of effort involved. Activity attributes are used for schedule development and for selecting, ordering, and sorting the planned schedule activities in various ways within reports.

Question 44

Which of the following is not a Project Procurement Management process?

1. Monitor Risks
2. Control Procurements
3. Conduct Procurements
4. Plan Procurement Management

Answer 44

Answer: Monitor Risks

Overall explanation

As with all proceses contained within the PMBOK Guide, you first plan and then do (conduct) and then monitor or in this case, control. Monitoring risks is an overarching process a Project Manager must do throughout the project life cycle, not specifically tied to the project procurement processes.

Question 45

Fill in the blank: __________ ___________ analysis is an analytical technique used to determine the basic underlying reason that causes a variance, defect, or risk.

1. Alternative Process
2. Documented Data
3. Process Improvement
4. Root Cause

Answer 45

Answer: Root Cause

Overall explanation

Root cause analysis is an analytical technique used to determine the basic underlying reason that causes a variance, defect, or risk. A root cause may underlie more than one variance, defect, or risk. It may also be used as a technique for identifying root causes of a problem and solving them. When all root causes for a problem are removed, the problem does not recur. The other three options as shown are not valid processes within the Project Management Book of Knowledge.

Question 46

If you engaged any external vendors or contractors for project work, what do you have to ensure is closed out during the Closing process group?

1. Contracts
2. Open risks
3. Formal communication between them and you
4. RFP

Answer 46

Answer: Contracts

Overall explanation

The contracts made with any external entitities for project work must be closed out, which includes final payments and sign-off on completion. Though you may formally end communication between you and them, that is not a requirement of the Closing phase. Similarly, if there are open risks then the project is either not ended or those risks are being transferred to Operations as part of the Closing process. And finally, an RFP is a point-in-time document used to solicit bids from external vendors for the work you need performed or the goods you need to procure. An RFP is not a living-breathing document that will need to be closed by the time you’ve reached the end of the project.

Question 47

While Sophie is updating the cost and schedule forecasts for the project she’s managing, she realizes that as they proceed with executing the project management plan there are three other project documents she needs to keep updated. Which of the following is NOT one of those she should be updating while monitoring and controlling her project?

1. Issues Log
2. Project Charter
3. Lessons Learned Register
4. Risk Register

Answer 47

Answer: Project Charter

Overall explanation

Project documents that may be updated as a result of this process include but are not limited to: -Cost forecasts, -Issue log, -Lessons learned register, -Risk register, and -Schedule forecasts. A project charter is a one-and-done point-in-time document that is not ever updated after it is signed off.

Question 48

If your boss asks you to take on collection of projects, programs, sub-portfolios, and operations managed as a group to achieve strategic benefits, which of the following titles would you be acting as?

1. Program Manager
2. Portfolio Manager
3. Project Manager
4. Operations Manager

Answer 48

Answer: Portfolio Manager

Overall explanation

It would be a portfolio manager who would oversee all these.

A Project Manager manages a project.

A Program Manager manages a group of related projects in a coordinated way.

An Operations Manager might be a Stakeholder in your project, program or portfolio, but not the actual portfolio manager.

Question 49

Which of the following does not describe a Project Manager’s role in Managing Project Resources?

1. The project manager should ensure that all procurements meet the specific needs of the project, while working with procurement specialists to ensure organizational policies are followed
2. The project manager should suitable effort in acquiring, managing, motivating, and empowering team members
3. The project manager is responsible for proactively developing team skills and competences while retaining and improving team satisfaction and motivation
4. The project manager should be both the leader and the manager of the project team

Answer 49

Answer: The project manager should ensure that all procurements meet the specific needs of the project, while working with procurement specialists to ensure organizational policies are followed

Overall explanation

While procurements include project resource management, the key to knowing that it was NOT one of the truths of Project resource management is that this is explicitly called out as part of the project procurement process. That procurement might be one of the ways that the project manager accomplishes their need to acquire team members or obtain equipment required to complete the project.

Question 50

When you are tasked with “project knowledge management,” what type of project knowledge is it that you are managing?

1. Tacit Knowledge
2. Knowledge of the project’s requirements
3. Both Tacit and Explicit Knowledge
4. Explicit Knowledge

Answer 50

Answer: Both Tacit and Explicit Knowledge

Overall explanation

Project knowledge management through the lens of the Project Management Institute, involves the management of both objective information (explicit) and subjective information (tacit). While explicit knowledge is structured and fixed (e.g. “the facts”), tacit knowledge is personal and context specific (e.g. feeling or judgment). Knowledge of the project’s requirements is handled via the documentation of requirements, which is one example of explicit knowledge, but isn’t the only knowledge you are tasked with managing on a project.