Medium Difficulty 4 Flashcards
Which type of conflict resolution is usually the best when tensions and emotions are high?
Withdrawal
At what stage of Tuckman’s Ladder do team members complete the work and move on from the project?
Adjourning
What is the best practice in regard to the Team Charter?
The Team Charter works best when the team develops it, or at least has an opportunity to contribute to it.
Name three hierarchical charts used in Project Resource Management?
- Work breakdown structure (WBS) - Organizational breakdown structure (OBS) - Resource breakdown structure (RBS)
What are the various types of communication? (6)
- Internal and external
- Formal and informal
- Vertical and horizontal
- Official and unofficial
- Written and oral
- Verbal and non-verbal
How should stakeholders be classified?
According to their interest, influence, and involvement in the project.
What are the steps involved in the Identify Stakeholders process?
- Identify the potential stakeholders - Determine their power, influence and impact to the project - Assess the likely reaction of key stakeholders in various situations
What are the various methods used to classify stakeholders?
- Power/interest grid, Power/influence grid, Impact/influence grid - Stakeholder cube - Salience model - Direction of Influence - Prioritization
What information about the project stakeholders does the Stakeholder Register typically contain?
- Identification info (name, position, location, role, contact info) - Assessment info (requirements, expectations, influence, interest) - Stakeholder classification (internal/external, supporter/neutral/resistor)
What is the purpose of managing stakeholder engagement?
It allows the project manager to increase support and minimize resistance from stakeholders.
What are the 5 key components of a basic communication model?
- Encode - Transmit message - Decode - Acknowledge - Feedback/Response
Give at least three examples of noise in communication.
- Distance - Physical noise - Any language that the receiver doesn’t understand - Unfamiliar technology - Lack of knowledge or interest
What are the 3 types of communication methods?
- Interactive communication - Push communication - Pull communication
Give at least 3 examples of Push Communication.
- Letters - Reports - E-mails - Press releases
Give at least 3 examples of Pull Communication.
- Web sites - e-Learning Tools - Document repositories
In which document would you find a glossary of common project terminology?
The Communications Management Plan
In which document would you find the template for project status reports?
The Communications Management Plan
In which part of the project life cycle is Monitor Communications process performed?
Throughout the project life cycle
Give three examples of formal written communication.
- A legal notice - A change request - A tender
Give two examples of formal verbal communication.
- A presentation - A speech
Give two examples of informal written communication.
- An email - A hand-written note
Give two examples of informal verbal communication.
- Praising the team’s effort in a team meeting - A conversation between two team members
The verbal elements of a speech outside of spoken words, such as pitch, tone, rate, etc., are known as ______________ factors.
The verbal elements of a speech outside of spoken words, such as pitch, tone, rate, etc., are known as <u>paralingual</u> factors.
What information is usually distributed to stakeholders when the project is under execution?
Performance reports, deliverable status, schedule progress, cost incurred, presentations, and other information required by stakeholders.
What is the purpose of a Change Log?
It is used for communicating changes and their impact to the project in terms of time, cost, and risk to the impacted stakeholders.
What document provides the escalation process should issues arise on the project?
Communications Management Plan
What are Stop Light charts commonly used for?
Presenting status of project work.
How does the interactive communication model enhance the basic communication model?
Interactive communication model adds the following 2 elements: - Acknowledge - Feedback/response
Give examples of Business Risk.
- Competitor activities - Bad weather - Inflation - Recession - Customer response - Availability of resources
Give examples of Pure Risk.
Examples of Pure or Insurable risks include risk from fire, floods, accidents, theft, liabilities resulting from product failure and bodily injuries to employees, loss of key personnel etc.
What are the types of Insurable Risk?
- Direct property damage - Indirect consequential loss - Legal liability - Personnel
Who can authorize the use of Contingency Reserves?
The Project Manager
Which document lists the risk owners?
Risk Register
What are the objectives of Project Risk Management?
Increase the probability and impact of positive events, and decrease the probability and impact of negative events in the project, in order to optimize the chances of project success.
A risk that has occurred should be considered as ____________.
A risk that has occurred should be considered as <u>an issue</u>.
What are the components of a Risk Management Plan?
Risk strategy; Methodology; Roles and responsibilities; Funding; Timing; Risk categories; Stakeholder risk appetite; Definitions of risk probability and impact; Probability and impact matrix; Reporting formats; and Tracking
What are the commonly used categories of project risks?
- Internal - External - Organizational - Technical - Quality - Procurements - Management
Who can help to identify risks on a project?
- Project manager - Project team members - Customers - End users - Subject matter experts - Risk management experts - Other Stakeholders
How can Risk Breakdown Structure (RBS) be used in Risk Identification?
The lowest level of the RBS can be used as a risk identification checklist.
Give an example of a well described project risk.
Heavy rain (Cause) can lead to flooding at the construction site (Event) resulting in serious injuries to the workers and damage to the equipment (Effect).
What does the Risk Register contain at the end of the Identify Risks process?
- List of identified risks - Potential risk owners - List of potential responses
How does an Influence Diagram help in risk analysis?
The factors which influence a risk can be shown hierarchically in an influence diagram, to demonstrate their influence on key outcomes.
Which type of risks does SWOT Analysis help in identifying?
Internal risks (originating from within the organization)
What is the purpose of a Probability and Impact Matrix?
To rate risks (low, moderate, high).
Apart from probability and impact, what are the other important factors in determining risk rating?
Risk urgency, proximity and dormancy
What are the risk register updates from Perform Qualitative Risk Analysis? (7)
- Probability and impact of each risk
- Risk priority level or score
- Nominated risk owners
- Risk urgency information
- Risk categories
- Watch list of low-priority risks
- Risks requiring further analysis
Why should Perform Quantitative Risk Analysis process be repeated after Plan Risk Responses process?
To determine whether the overall project risk has satisfactorily decreased as a result of planned responses.
Which type of risk analysis is required on all projects?
Qualitative risk analysis
Which type of risk analysis (qualitative or quantitative) is more important on most projects?
Qualitative
What are the common forms of probability distributions used in Quantitative Risk Analysis?
Triangular, normal, lognormal, beta, uniform, or discrete distributions.
What do the schedule and cost probability distributions represent?
Uncertainty in schedule or cost estimates
How is the EMV of a project calculated?
By multiplying the value of each possible outcome by its probability of occurrence and adding the products together
Which visual analytical tool uses EMV analysis to calculate the expected values of competing alternatives?
Decision Tree
How are decision nodes represented on a Decision Tree?
By squares
How are chance nodes represented on a Decision Tree?
By circles
How are the end of branches represented on a Decision Tree?
By triangles
Which technique is commonly used for simulating the combined effects of project risks on project outcomes?
Monte Carlo technique
What is the purpose of using Simulation technique in quantitative risk analysis?
To determine the likelihood of achieving specific schedule or cost targets of the project.
What are the risk report updates from Perform Quantitative Risk Analysis?
- Assessment of overall project risk exposure - Probabilistic analysis of the project - Prioritized list of risks - Trends in quantitative risk analysis results - Recommended risk responses
How does the Tornado Diagram help in Sensitivity Analysis?
A Tornado Diagram graphically displays the result of single-factor (or one-way) Sensitivity Analysis. It allows visual comparison of the relative importance of many input variables on the outcome.
How do we deal with the outcome of Residual Risks?
We put contingency plans in place.
What types of risks are put on the watch list?
Non-critical or low-priority risks
What do we do with the risks on the watch list?
Review them periodically in the Monitor Risks process.
Who can authorize the use of Management Reserves?
The change control process is used to obtain approval to move the applicable management reserve funds into the cost baseline.
What are the common strategies to deal with Negative Risks?
- Escalate - Avoid - Transfer - Mitigate - Accept
What are the common strategies to deal with Positive Risks?
- Escalate - Exploit - Share - Enhance - Accept
Give at least three examples of risk avoidance.
- Extend the schedule - Reduce scope - Cancel the project
Give at least three examples of risk transference tools.
- Insurance - Performance bonds - Warranties - Agreements
Give at least three examples of risk mitigation.
- Conducting more tests - Prototyping - Designing redundancy into a system
What is a common active threat acceptance strategy?
Establish a contingency reserve
What is passive risk acceptance?
Take no action, except to document the risk and let the project team deal with the risk as it occurs, and periodically review the threat to ensure that it does not change significantly.
What are the common strategies for both negative and positive risks?
- Escalate - Accept
Give an example of risk exploitation.
Assign an experienced resource to a project to ensure that the work is completed ahead of schedule or at a lower cost.
Give an example of risk sharing.
Forming a partnership, team or a joint venture.
Give an example of risk enhancement.
Adding more resources to an activity so that it finishes early.
What is accepting an opportunity?
Being willing to take advantage of the opportunity if it comes along, but not actively pursuing it.
Give at least 3 examples of Risk Triggers.
- A milestone is missed
- A key resource leaves the company
- A competitor goes bankrupt
- A 10% drop in the price of a raw material
- Crude oil price touches $100 per barrel
Which document defines the frequency of Risk Audits on a project?
Risk Management Plan
Who is responsible for ensuring that Risk Audits are performed at an appropriate frequency on a project?
Project Manager
Where are the actual outcomes of project risks documented?
In the Risk Register
Which process is performed first - Qualitative risk analysis or Quantitative risk analysis?
Qualitative risk analysis
How should you treat an event that has 100% chance of occurrence during the course of a project?
It should be treated as “an issue”.
Which tool is used to categorize risks by area of project affected?
WBS can be used to categorize risks by area of project affected.
What are the two main types of non-event risks?
- Variability risk - Ambiguity risk
Give three examples of Variability Risk.
Productivity may be above or below target, the number of errors found during testing may be higher or lower than expected, or unseasonal weather conditions may occur during the construction phase.
Give three examples of areas of Ambiguity Risk.
Elements of the requirement or technical solution, future developments in regulatory frameworks, or inherent systemic complexity in the project.
List the steps to build project resilience in dealing with emergent risks.
- Include budget and schedule contingency for emergent risks - Flexible project processes, including strong change management - Empowering project team - Frequent review of warning signs - Stakeholder buy-in to adjust scope and strategy in response to emergent risks
What are the two levels at which risks exist in projects?
- Independent project risk - Overall project risk
Project managers should try to mitigate every possible risk on the project. True or False?
False. Different risk response strategies may be adopted based on the nature of the risk, with mitigation being one of them.
Who is responsible to ensure that all procurements meet the specific needs of the project while adhering to organizational procurement policies?
Project Management Team
In which process are make-or-buy decisions made?
Plan Procurement Management
If an organization decides to use a contract in order to reduce a project risk, what kind of risk response strategy are they using?
Transfer
Why do contracts go through an extensive review and approval process?
Because contracts are legally binding in nature.
Which type of contract is generally preferred by buyers around the world?
Firm Fixed Price (FFP)
What are the three primary types of contracts?
- Fixed Price (FP) - Cost Reimbursable (CR) - Time and Material (T&M)
What are the three main types of Fixed Price contracts?
- Firm Fixed Price (FFP) - Fixed Price Incentive Fee (FPIF) - Fixed Price with Economic Price Adjustment (FP-EPA)
Who has the cost risk in a Fixed Price contract?
Seller
Which type of contract is more appropriate when the scope of work is clearly defined?
Fixed Price (FP)
Which type of contract would be most suitable for an R&D project?
Cost Reimbursable (CR)
Which type of contract would be most suitable when a project team needs personnel to augment its staff?
Time and Material (T&M)
Which type of contract would be most suitable if the project work spans over 5 years?
Fixed Price with Economic Price Adjustment Contracts (FP-EPA)
Which type of contract accounts for currency rate fluctuations, inflation, changes in the price of raw materials and labor rates, etc., over the course of the project?
Fixed Price with Economic Price Adjustment (FP-EPA)
Which type of contract sets a ceiling price for the seller?
Fixed Price Incentive Fee (FPIF)
Which type of contract would be most appropriate when the buyer doesn’t have the time to audit invoices?
Fixed Price (FP)
Which type of contract would be most appropriate if the buyer expects the product to be built with the best quality material available, in the shortest possible time?
Cost Plus Incentive Fee (CPIF)
What are the three main types of Cost Reimbursable contracts?
- Cost Plus Fixed Fee (CPFF) - Cost Plus Incentive Fee (CPIF) - Cost Plus Award Fee (CPAF)
Which type of contract would be most suited if the project work involves high risks?
Cost Reimbursable (CR)
Which type of contract does not motivate the sellers to control costs?
Cost Plus Fixed Fee (CPFF)
If a project management team wants to hire the services of a risk management consultant on the project, which type of contract would be most suited for their requirement?
Time and Material (T&M)
Which document describes the types of contracts to be used on the project?
Procurement Strategy
In which type of contract would you use a Request for Proposal (RFP)?
Cost Reimbursable (CR)
In which type of contract would you use an Invitation for Bid (IFB)?
Fixed Price (FP)
In which type of contract would you use a Request for Quotation (RFQ)?
Time and Material (T&M)
What types of procurement documents are used when price is the main factor in awarding the contract?
Bids, tenders or quotations
When is price the main source selection criterion?
When the product, service or result is readily available in the market from a number of sellers.
Are the bidder conferences held before or after the submission of the bids or proposals?
Before
How does a prequalified seller list help the procurement process?
It reduces the time required to conduct procurements and reduces the uncertainty (or risk) associated with the process.
What are the two common types of non-competitive procurements?
- Single Source - Sole Source
What is the purpose of a Weighting System in procurement management?
It is used for evaluating seller proposals. An evaluation committee assigns a “score” to each seller based on the source selection criteria and the evaluation criteria defined for the procurement. Sellers are ranked according to their score.
What are bid documents comprised of?
- Procurement Statement of Work - Description of response format - Any other contractual requirements
What are Screening Systems used for in procurement management?
To shortlist sellers (eliminate those who do not meet certain minimum requirements).
In which process does the buyer conduct a structured review of the work being performed by the contractor?
Control Procurements
When are procurements closed?
When all the work on a contract is completed or the contract is terminated before completing the work.
In a CPIF contract, which is the most important constraint?
Cost
In a CPIF contract, which is the least important constraint?
Time
In a CPAF contract, which is the most important constraint?
Performance
In a CPAF contract, which is the least important constraint?
Cost
In a CPFF contract, which is the most important constraint?
Performance
In a CPFF contract, which is the least important constraint?
Cost
In an FFP contract, which is the most important constraint?
Performance
In an FFP contract, which is the least important constraint?
Cost
In an FPIF contract, which is the most important constraint?
Cost
In an FPIF contract, which is the least important constraint?
Time
In a T&M contract, which is the most important constraint?
Cost
In a T&M contract, which is the least important constraint?
Performance
Generally, who can initiate contract closure - buyer, seller or either of the two?
Buyer
In which type of contract is the full value of the contract not defined up front?
Cost Reimbursable
In which type of contract does seller’s profit remain constant even as the seller’s effort goes up?
Cost Reimbursable (as the seller’s effort increases, the project cost continues to go up, but the seller’s profit remains constant).
In which type of contract does seller’s profit go down as his effort goes up?
Fixed Price (as the seller’s effort increases, the project cost remains constant, but the seller’s profit continues to fall).
Which type of contract should the buyer opt for if he wants the work to start soon?
Time and Material (T & M)
In which project management process are procurements closed?
Control Procurements
What are the various levels of stakeholder engagement?
- Unaware - Resistant - Neutral - Supportive - Leading
In which document would you find the stakeholder communication requirements?
Communications Management Plan
At what stage of the project is stakeholders’ influence the highest?
Initial stage
In which document or plan are the stakeholder management strategies documented?
Stakeholder Engagement Plan
