PgMP Test Questions Flashcards
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- A program comprises of 10 projects. As the projects are performing the Validate Scope process, what should be the focus of the program manager?
a. Create a high level work breakdown structure for the program (PWBS)
b. Manage by exception and handle the change requests coming out of this process through the program level change management processes
c. Verify that the project deliverables will help deliver the intended benefits
d. Ensure that the projects are following the appropriate test procedures and strategies Score
Answer: c) The program manager needs to integrate the project deliverables in order to deliver the benefits to the organization.
Validate scope at the project level refers to the final acceptance tests for the projects. Here, the program manager needs to make sure that the** deliverables enable the program to deliver the intended benefits.**
- An engineering company is working on a program for a client that is spread across 6 countries and 12 sites. Each site is considered a project and the program manager also manages the client relationship and the finances. Which of the following is the most important risk for the program manager?
a. The tax regime in one of the countries is volatile and may have implications for a project in the program.
b. The program earns revenues in dollars and spends in 6 different currencies, hence exchange rate fluctuations is a risk.
c. One of the sites is fairly remote and this causes transportation costs to go up.
e. Though the client representative is quite friendly, she is known to be a tough task master and will not tolerate delays in completion.
Answer: b) This question is essentially trying to get the participant to prioritize the risks. Remember we are talking about the program manager’s view point.
A and C are valid risks, but probably will be managed by the respective project managers.
B and D are both program level risks. D says the client is particular about dates (all clients are!), whereas B talks about a currency fluctuation risk and seems to be higher priority.
- A program consists of 10 projects, each headed by a project manager. Who should be responsible for the identification of risks on the program?
a. The program manager
b. The program managers and the project managers
c. The program team
d. All the stakeholders of the program
Answer: d) The risk identification process ideally should involve everybody associated with a program. Hence choose the broadest possible answer, which in this case is D.
- A program has several projects that rely on the services of a vendor for delivery of critical parts. The parts are pretty standardized and usually procured under firm fixed price contracts. During a particular year, the supplier asks for renegotiating the prices because the dramatic increase in input costs has made the supply of parts unviable. What should you do as a program manager?
a. Forward the request to the procurement team and let them handle this as per their normal procedures
b. Agree to the request only in the cases of projects which have a positive cost variance and can accommodate an increase
c. Refuse the request as the supplier bears the cost risk in a fixed price contract
d. Agree for the negotiation taking the project managers and the procurement team into confidence
Answer: d) Though it is true that the supplier bears cost risk in case of fixed price contracts, the** buyer needs to be considerate in case of events that go beyond the control of the supplier**.
The contract is good only if it helps both seller and buyer to realize value from it. When the seller loses money on a contract, their commitment to deliver will go down, which would be a major impact for the program. So, it is only reasonable that renegotiations are entered into.
- A program manager wants to initiate a new component that will help improve the efficiency of the existing components. One of the members of the program board disputes the reasons for the new component and feels the results can be achieved without a new component. The program board is split equally in the two camps. What is the best way to arrive at a decision?
a. The program sponsor should decide
b. There should be a vote and the majority decision should be respected
c. The discussions should continue until a consensus is reached
d. The request should be turned down as there is not enough support behind the component
Answer: a) This is clearly a program board decision, but the board seems to be split in the two camps. Under the circumstances, the best way to proceed would be for the program sponsor to take a decision. The governance board is not a consensus committee, but the program sponsor normally has veto powers.
- The World Bank is evaluating whether or not to fund a mass transportation improvement program in a major city. Since the funding is for a social benefit, the first ask is to conduct a benefits analysis and identify benefits. Which is the best description of what will take place during benefits identification?
a.Create and prioritize projects and establish benefits metrics
b. Determine benefits, evaluate benefits, and setting up metrics to measure benefits
c. Monitor projects, maintain benefits register, and create benefits reporting
d. Create benefits monitoring and the benefits realization plan and align benefits into the program management plan
Answer: b) The activities and deliverables of benefits identification are determine benefits, evaluate benefits, and set up mechanisms to measure benefits.
- Project A and Project B are part of a program. Project B depends upon the output of project A. From the project perspective, this is an example of:
Internal dependency
External dependency
Mandatory dependency
Finish-to-Start dependency
Answer: b) For project B, the dependency is on another project, hence from a project perspective, it is an external dependency. There is not enough information to say if it is mandatory or finish-to-start.
- The program scope statement has been finalized, the distribution of work among various components has been determined and the program WBS has been created. The program manager asks the project managers to create a work breakdown structure. The project managers are having difficulty understanding what purpose the project level WBS will serve over and above the PWBS. Which statement best explains the need for a project level WBS?
a. To be able to determine which parts of the program’s work should be done in-house and which parts can be outsourced.
b. To gain a better understanding of the dependencies among the work of different projects and to sequence the activities accordingly.
c. To better organize the work of the projects into smaller, more manageable units that the project manager can keep a track of.
d. To be able to meet compliance requirements to the relevant standards in project and program management.
Answer: c) The reason to develop a WBS is to basically break the work down into smaller deliverables that can be better managed by the project managers.
All other answers have some inaccuracies. For example, WBS does not involve make or buy analysis or determine sequencing. The WBS is a tool that benefits better management, not necessarily to satisfy some compliance requirements scope.
- Company A is performing due diligence and is in talks to acquire Company B. One of the agenda items is to understand the ongoing programs from Company B and getting an understanding about likely cash inflows and outflows on the programs in the coming years. Where is this information most likely to be found?
a. Program management plans and benefits realization plans of ongoing programs in Company B
b. The portfolio and strategic management plans for Company B
c. The financial management and benefit realization plans of the ongoing programs
d. The business case and program charters of ongoing programs
Answer: c) The program financial management plan documents funding schedules, initial budgets, contract payments and financial metrics.
The benefits register provides the list of planned benefits and target dates and milestones for benefits achievement.
Together, these documents can provide the information necessary for due diligence.
- A program manager is a big believer in the value of industry academia partnership. She would like the projects to establish an internship program and perform some research work with university support. The project managers have not been forthcoming on this front, as they believe their work is business critical and cannot rely on academic alliances. What is the best way for the program manager to proceed?
a. Establish a policy that 10% of the project’s staff should be student interns
b. Call for a meeting with the project managers and impress upon them the value of the partnership
c. Find a component that is willing to pilot this concept and start small
d. Call the dean of the local university to make a presentation so that the project managers can be convinced
Answer: c) This concept cannot be pushed by diktat (Option A) or rhetorical speeches (Option B). Calling the university to pitch this concept may not be advisable until the apprehensions of the project managers have been allayed (Option D). Option C seems to be a reasonable option. Start a small pilot and build on it.
- How exactly can a program manager ensure that the benefits from a program are indeed being realized?
By dividing responsibilities between the program team members
By planning specific activities for benefits realization, then monitoring and tracking benefits delivery
By creating a benefits realization plan
By setting appropriate performance objectives for the project managers around benefits realization
Answer: b) Merely creating benefits realization plan does not help in realizing the benefits, nor does assignment of responsibility or assigning performance objectives. The program manager needs to plan specific activities for benefits realization.
- A program manager who is being appointed to a new program is insisting that the program charter be issued. Which of the following is the MOST important purpose of the program charter?
It lays down the initial set of requirements and intended benefits
It defines the structure of the program and the related components
It formally authorizes a program and secures senior management buy in to apply organizational resources to it
It provides the business case for the program
Answer: c) The main reason for a charter is that through a charter, the senior management of the organization formally brings a program into existence and agrees to commit organizational resources to it.
- A retail store is expanding in a new country and is looking for an IT supplier to provide PoS equipment, networking, computers, and application maintenance services for its stores. An RFP has been floated. How should the prospective sellers respond to the RFP?
a. They should establish their capability of meeting the requirements specified in the RFP and accordingly supply a quote for the work involved
b. They should work on feasibility, followed by detailed estimation and then send a detailed proposal after looking at the requirements
c. The feasibility has to be established from a financial, technical and capabilities view point and the commercial viability of the proposal has to be established before filling in the bid documents
d. They should understand the decision criteria and the people who will be making the decision and see how best they can be influenced to win the contract
Answer: b) The response to an RFP has to be a detailed proposal.
Not just a quote or a bid.
Trying to influence the decision makers before the decision is not in keeping with professional responsibility.
- Which of the following areas should NOT be the focus of the program management domain?
Managing interfaces between the components
Managing transition of components and the overall program
Aligning the program with strategy
Ensuring strategic decisions are taken in accordance with legal frameworks
Answer: d) The program manager is expected to ensure A, B, and C but not D. Strategic decision making typically happens at a level above the program manager and the program manager is not competent to vouch for the legal validity of the decisions.
- A construction program frequently needs diesel generation sets for construction activity in a remote site where electricity supply has not yet arrived. The program policy is to rent the generator sets rather than buy them. A project manager made a request to buy a generator for his project, because he would like to have greater control over the availability, specifications and conditions of use. The other projects are perfectly happy with the renting arrangement. What should you do as a program manager?
Refuse the request and explain the rationale behind the rent vs. buy policy
Discuss the requirements of the project manager with the supplier from whom the sets are rented and try to work out a solution
Agree to the request of the project manager after making an exception
Change the policy of buy vs. rent for the entire program rather than only one project
Answer: b) The reason for the project manager’s dissatisfaction has to be understood and discussed with the supplier before making the call. There may be reasons behind the policy being what it is and it should not be changed lightheartedly. Nor should the request be denied out of hand without establishing the need and trying to address it.
Fix
Answer: b) The work is known to be technically complex and the scope of work is unstable. Therefore fixed price contract cannot be used. Among options A, B, and C which all recommend cost reimbursable contracts, option B is best because it would provide an incentive to the vendor.
Answer: b) The Ishikawa diagram is useful for isolating the area or areas that could be causing the problem. Identifying the root cause is the first and important step in finding a remedy. The Pareto diagram is useful for determining the priorities between possible underlying causes. The flowchart is a diagram that displays the connectivity between pieces of a system. The control or run chart is useful for determining the measured output over the manufacturing process for acceptable and failed products.
- What is the ideal role for the Program management in the change management process?
To control unnecessary changes
To act as a process police, ensuring that the process is followed at all times
To expedite the routing of the change requests to the program board
To delay changes as far as possible so that the program can stay on track with plans
Answer: a) Preventing unnecessary changes is the best service that the program manager can provide to a program with regard to change management. They are uniquely positioned to do this because they have a view of the organization’s expectations about benefits and the correlation of the activities to achieving the benefits.
- A company working in the pharmaceutical industry has been acquired by another company. The new owners are reviewing the existing programs and taking a decision whether they fit into their strategy or not. Which of the following will be LEAST useful while making the decision about strategic alignment?
Business Case
SWOT analysis
Governance plan
Benefits realization plan
Answer: c) The governance plan is about how the program will be administered and governed, and does not really address the strategic alignment.
The business case gives an idea about the high level goals of the program.
SWOT analysis gives the positioning of the program with regard to its environment
and the benefits realization plan outlines the benefits and the plan to realize them.
Except for the governance plan, all others are useful for determining alignment with strategy.
- Three projects which were part of a program are complete. The deliverables have been validated and accepted by the customer. While a final review before transition was in progress, the manager of the operational unit responsible for supporting the deliverables has expressed concern that his staff has not been trained in the support procedures. What should the program manager do?
Withhold the transition until the operations have been adequately enabled.
Set up a training plan and identify resources for the training before approving the transition.
Ask the customers if they are willing to accept a drop in service quality while the training is completed.
Ask the project managers why the training was not completed and log in the lessons learned.
Answer: a) The transition plan needs to be executed (not just planned as in option B) before the transition can be completed.
Without adequate enablement of the operations staff, there is no point in approving the transition.
Asking customers to put up with a lower quality of services exposes the lack of maturity in the program’s processes.
Analyzing the reasons for the training not being completed is necessary but would not be the first thing on the program manager’s mind at this point.
- Which of the following will NOT feature as subsidiary plan(s) of the program management plan?
Benefits management plan
Governance plan
Stakeholder engagement plan
Project management plans
Answer: d) The program management plan is a high level plan that outlines how the overall program will be management. It provides guidance and direction to individual project management plans but does not necessarily contain all the project management plans as subsidiaries.
- A project manager is selecting a vendor for a complex piece of work on her project, for the project does not have in-house technical expertise. Which of the following vendors should the program manager recommend?
Vendor A, which is the preferred vendor for the program at large
Vendor B, which has quoted the lowest price
Vendor C which has the most experience in the technology
Vendor D, which has the best reputation for after sales service
Answer: c) The selection of the vendor should be based on the reasons for outsourcing. Here, the reason is absence of in-house technical competency. Therefore (in absence of any other information), Vendor C, which seems to be the best choice
- A project is part of a program. The project manager has used different techniques to identify and analyze risks and plan responses. She has further provided for contingency reserves. However, she tells the program manager that her gut feel suggests there are probably more risks that could arise during the project execution. What would be your advice while finalizing the plan?
To have a set of workarounds ready in case some unidentified risk occurs.
Tell the project manager not to worry because the program level contingency reserves can be utilized for these.
Set aside some management reserves to be used in case an unknown risk event occurs.
Tell the project manager not to worry too much; if an unknown risk occurs it is always possible to raise a change request to cover for the impact.
Answer: c) The program manager must advocate a proactive approach towards risk management. C is the best choice because it recognizes the existence of some risks which may not have been identified upfront and provides for it. Workaround by definition is an unplanned response, so it cannot be decided in advance. The program level contingency reserves should be used for program level risks, not to cover unknown unknowns at project level.
- A manufacturer of luxury automobiles is keen on entering into a new market, which seems to have a lot of potential. What should be the first step for the company on this venture?
Establish a joint venture with a local automobile company which has a better understanding of the local market and local regulations.
Prepare a business case to understand the implications of this venture for the overall organization.
Undertake a detailed market study to figure out the demand for luxury automobiles in the target market.
Issue a program charter and appoint a program manager who is a resident of the target market region and an expert in the automobile industry.
Answer: b) The first step should be to prepare a business case and come up with a business justification.
The market study may be a part of the business case preparation activity, but not necessarily so.
If there is already data available about the target market, then the market research may not be required.
Also, establishment of a joint venture may or may not be desirable and seems a bit presumptive, when the program is still in the evaluation stage.
For similar reason, issuance of a program charter is a little premature. The business justification needs to be created first.
- Project A and Project B are part of a program. Project B depends upon the output of Project A’s deliverable and has been delayed. What should the program manager do?
Work with the manager of project A to complete the deliverable as soon as possible
Work with the manager of project B to mitigate the impact of the delay to the extent possible
Analyze the impact of the delay on the ability of the program to deliver the benefits
Understand the impact of the delay on the overall program schedule
Answer: c) The program manager should focus on the benefits that are expected from the program rather than on individual projects or specific aspects of the Scope, Cost, and Time equation for the program.
- A project manager is outsourcing a complex piece of work on her project, as the project does not have in-house technical expertise. As a result of this change, the program had to shell out additional funds. Further, the program and project now needs to worry about the reliability of the vendor. This is an example of:
Residual risk
Secondary risk
Peripheral risk
unknown unknown
Answer: b) Secondary risks arise from the response plans employed to address an existing risk.
- A program is initiated to reduce the energy needs of a chemicals refinery. One of the measures is to adopt renewable resources for preheating which reduce the overall energy needs. However, this will lead to increase in the operational costs. How should the program manager handle this?
Go ahead with this change as it is in line with the program benefits
Since it impacts operations, get their buy in before submitting the change request
Submit the change request to the program board for approval
Reject this change as the program manager cannot unilaterally bring in a change that increases operational cost
Answer: b) This change is definitely valid because it is in line with the requirements for this program. However, the impact on operations has to be studied and evaluated before going ahead with the change request.
- A program comprises of 8 projects with complex interlinkages. What is the level of detail expected in the program management plan?
a. The plan should be as detailed as possible to cover all possible scenarios and provide detailed guidance to the program and project team members.
b. The level of detail in the plan should be customized to the degree of granularity that the program manager and program office desire and can effectively handle.
c. The plans should be very high level, leaving all the details in the project management plans.
d. The level of details should be customized based on the guidance received from the program management office.
Answer: b) The program manager (not the PMO) should determine how detailed or high level the plan should be. This should be based on the assessment of how much detail the program office can handle and require.
- An organization is embarking on a change initiative to use six sigma principles on its operations to achieve higher quality. The program is sponsored by a senior executive and the program manager has been appointed. The program manager fears that there would be a lot of passive resistance at lower levels of the organization. Which approach is likely to be most effective in overcoming this?
A communication campaign around the benefits of six sigma and the expected benefits to the organization.
A top down approach where the CEO throws his weight behind the initiative and sets up objectives for all departments.
The program manager meets the stakeholders in smaller settings and tries to convince them about the need for change.
Start with a group that is willing to pilot it and then use the success of the pilot to win support across the organization.
Answer: d) Change initiatives that cut across organizational boundaries are likely to create resistance. Of the stated approaches, D seems most likely to succeed, because it will use past data in the same organization to propagate in a wider setting. Hence, start with a group that is willing to pilot it and then use the success of the pilot to win support across the organization.
- What is the normal order in which the closure processes take place on a program?
Component closure, Program Procurement closure, Program transition and benefits sustainment, Program Financial Closure, Program closure
Program transition and benefits sustainment, Components closure, Program Financial closure, Program Procurement closure, Program Closure",0, ,,,Program Closure
Components Closure, Program Closure, Program transition and benefits sustainment, Program Financial closure, Program Procurements closure
Explanations:Answer: a) It makes sense that the components of the program must close first. The program procurements must be closed, which may have an impact on the transitions and finances. The program will close only when all of these processes are completed.
- A music company based in the UK is launching a new album with a new upcoming artist who has recently won a popular reality show on television. The album is expected to be a big hit and all the reviews have been excellent. The company now learns that one of the songs in the album may have been copied from a song popular in Korea What risk response strategy should the program manager use in this case?
Risk Avoidance
Risk Acceptance
Risk Mitigation
Risk Transference
Answer: a) This is a professional responsibility question. This risk should be avoided at all costs.
- A program has been initiated by a telecom company to launch 4G telecom services. There are multiple components to this program with complex interlinkages. The program manager is working on preparing the Program Work Breakdown Structure. A newly joined program coordinator who is assisting with the data collection is confused. What can you tell him about the contents of the PWBS?
Work packages contained within all the components of the program
Key activities and milestones within the program
The breakup of the program deliverables into smaller units
A detailed description of all the program packages which are in scope
Answer: c) The PWBS is “deliverables based”, which rules out option B.
It does not contain all the work packages it only goes up to a level of granularity that the program manager wants to manage at.
The PWBS does not contain the description of the program packages.
It merely breaks up the program deliverables into smaller, more manageable units.
- Project A has a budget of $400K and is 100% complete, Project B has a budget of $150K and is 90% complete, Project C is worth $400K and is 75% complete. What is the earned value for the overall program?
$835K
$900K
$850K
$990K
Answer: a) The earned value is the budgeted value of the work complete and can be computed as: 400 * 1 + 150 *0.9 + 400 * 0.75 = $835K
- A consumer electronics company is looking forward to launch a new version of an electrical shaver. What is the best way for it to get clear requirements?
Questionnaires sent to existing customers
Interviews with customers who do not currently use electric shavers
Experts in the personal goods industry
Observations and historical records of feedback from customers
Answer: d) In this case it is hard for a customer to articulate or verbalize requirements; hence the team needs to figure out the requirements based on past customer feedback and by observing and experimenting.
- A program manager is reviewing the business case for a few projects which have been suggested for funding in the forthcoming portfolio cycle. Project A is forecasting a NPV of $15 million; Project B is forecasting a payback period of 26 months; Project C has a benefits cost ratio of 1:1.5; Project D has an IRR of 12% as against a cost of capital of 8%. Which project would you select if you can only invest in one?
Project A - NPV of $15 million
Project B - payback period of 26 months
Project C - BCR 1: 1.5
Project D - IRR 12% vs cost of capital 8%
Answer: d)
Option C is not a viable project as BCR < 1.
NPV and IRR are better measures of benefit cost analysis than payback period as they consider the time value of money.
Option D provides more conclusive supporting data because it provides not just a value for the IRR, but also informs that it exceeds the hurdle rate.
Option A Whereas an NPV of $15 million may be good or bad, depends upon the overall return on investment it provides and whether it is an acceptable rate of return.
BCR - Benefit-Cost Ratio
NPV - Net Present Value - calculated in absolute terms
IRR - Internal Rate of Return - uses %
Decision making is easy in NPV but not in IRR
NPV - estimate future cash flows disccounted to present value (discount rate is the cost of captial)
- A music company based in the UK is reviewing new artists for its latest album when they come across a new upcoming artist who has recently won a popular reality show on television. The music is of a very high quality and there seems to be tremendous potential to create value for the company, though the artist is relatively junior and not very well known. Which strategy might be most useful in this case?
Enhance
Transfer
Exploit
Share
Answer: d) The opportunity exists both for the artist and the company, so the best approach would be to establish a venture to share the opportunity. This would involve the company signing up the junior artist for a specific duration to create music.
- A program manager is keen on ensuring a high level of quality. Which of the following policies are most suitable to be imposed from the program level?
The program will follow applicable ISO standards
All projects will follow uniform and standardized acceptance tests for raw materials and project deliverables
The test processes in all projects will be reviewed and approved by the program manager
All projects will have mandatory quality consciousness trainings for all team members
Answer: a) The program’s role in quality is to determine policies and standards that can be applicable to multiple components.
The adherence to ISO standards is an example.
Other statements may not be universally applicable and attempts to impose them without considering project level realities may backfire.
- Project A and Project B are part of a program. Project B depends upon the output of project A. Work in project B can start about 1 week after Project A has handed over its deliverables. This is an example of:
Lag
Lead
Critical Path
Start to Finish relationship
Answer: a) When there is a time gap between two activities, it is an example of a lag.
- A program manager and the project managers working on the program are working on the resource management plan. One of the difficulties is to figure out which resources are managed at the program level as opposed to the project level. Which is the best set of guidelines to follow to resolve this issue?
Typically human resources are managed by the projects, whereas other resources are managed by the program.
All resources are owned by the program and merely allocated to the projects as necessary.
Expense thresholds are established and the less expensive resources should be managed by projects and more expensive ones at the program level.
Resources that are shared by multiple projects can be managed at the program level, dedicated resources can be managed by projects.
Explanations:Answer: d) Program manager can add value by ensuring optimal utilization, assignment and prioritization of shared resources. This is probably the most logical distribution of responsibilities for resource management in the program.
- A textile company is working on introducing a new technology that will reduce the cost of manufacturing which will be done through a program. Which of the following would probably be the first step in the sequence of activities for the program?
Evaluate the risk level on the program to make sure it aligns with the risk threshold
Ensure the strategic alignment of the program
Assign a program manager
Determine the time lines by which the cost reductions can be realized
Answer: c) Explanation: A, B, and D are activities that the program manager will work on. The assignment of the program manager should probably be the first logical step.
- A program for developing new models of mobile phones in line with market trends is part of an important portfolio within an organization. After the phones are launched in the market, they are maintained and serviced by the customer service department. The program manager makes a case that the maintenance and service for the phones launched through the program should also be an operational part of the program. What is the best justification that the program manager provide for this to the program board?
It will streamline operations and projects and make the management simpler.
Customers can get better services due to the involvement of the development teams.
Knowledge of the customer complaints and feedback will enable development of newer models that are more in tune with the market realities.
This will create a revenue stream for the program which can be deployed in the new model development activity.
Answer: c)
A is too generic a statement and will not make any sense to the business.
There is no guarantee that option B will actually occur.
D may be valid, but there is no justification provided about why the program needs additional funds.
C makes most sense to the business owners because it provides a clear indication about how this operation can help the program add more benefits to the organization.
- Project A is part of a program for a steel plant. Building a motor assembly is an activity on the critical path for Project A, which ultimately delivers mixing units to the program. The team working on the motor assembly estimates the time required to be 30 days. The manager of project A reckons it should be 20 days, and the program manager thinks it should take no more than 15 days. What can be done to resolve the issue?
Buy the motor assembly from the market
Use the program manager’s estimate and try to crash the schedule
Use the project manager’s estimate and reset expectations at the program level
Use the team’s estimates and try to look for options to reduce the time
Answer: d) If the team’s estimate does not meet the elapsed time expectations of the project and program manager, options to crash the schedule can be explored. But mismatch in time expectations cannot on its own be the basis of a procurement decision (Option A). The team’s estimates cannot be replaced with that of the program manager (B) or project manager (C) because the team’s estimates are likely to be more reliable.
- In preparing the lessons learned and historical records for a program that was driven by several research projects which would be the most valuable information?
What findings were uncovered and how, what decisions were made and how, new techniques discovered.
Decisions taken, record of changes approved, financial and legal records.
Findings and basis for making conclusions, change requests received and decisions made, final acceptance.
Schedule and cost variances, benefits realized vs. initially planned, final acceptance and change records.
Answer: a) A is the most valuable information because it focuses on the research aspects and documents the findings, decisions and new techniques. For such a project, variances, final acceptances and decisions made are probably less important.
- What should be the outlook of a program manager about the quality management planning processes?
Quality is the responsibility of the projects and the project managers should get specific goals around quality.
Program level quality planning is to provide guidelines and policies and set up governance frameworks around quality.
Quality is of paramount importance and there should be all out efforts to create a quality conscious culture.
The program must review the cost of quality calculations for all the projects to make sure that the investment in quality enhancements is well targeted.
Answer: b) Option A puts the onus on the projects through performance goals. This is a hands-off approach and does not gel with the concept of management ownership of quality. C is a philosophical statement with no real action. D is only partially correct, because although the theory of cost of quality is correct, the program manager cannot review the calculations for every project. The program manager’s efforts are best spent on setting up guidelines, policies, and a governance mechanism.
- A program manager has 15 project teams distributed across the globe. What would be least effective in enabling effective communications on the program?
Provide for high travel budget to have more face-to-face communication
Leverage technology such as instant messaging, video conferencing and team wikis
Standardize a reporting format so that the details of all the tasks on all the projects are available to all team members through a weekly report
Cultural sensitivity training for everybody on the program
Explanations:Answer: c) A, B, and D are all mechanisms that can be used to enhance and enable communications on a distributed team. C is not a good idea because details of all tasks on all projects would result in information overload and add little value.
- Which of the following quality philosophies embraces management ownership for quality?
Kanban
Total Quality Management
Kaizen
Zero Defects
Answer: b) Deming’s quality philosophy was Total Quality Management (TQM) which involves being proactive, utilizing accountability and leadership, and continuously improving as a company.
- A program consisting of 10 projects is very demanding on resources. In planning for resources what should the program manager be most concerned about?
Making sure that the resources with the right skill set are available at the right time to all the projects.
Policies around compliance, diversity, equal opportunity, etc. are respected while recruiting resources.
Making sure that the resources are under the direct management control of the projects so that their availability can be guaranteed.
Making sure that the existing resources are being utilized optimally across the program management plan.
Answer: d) The program manager needs to ensure that the resources are being optimally utilized by the projects, especially given that the program is resource intensive.
- A program has a number of projects with a lot of interdependencies. One of the senior technical architects in a project made a change to the specifications of one of the deliverables. The other projects are dependent on the original specifications and now need to rework. Who is responsible to solve this problem?
The program board and program sponsor along with the program manager
The program manager, concerned project managers and technical experts
The program manager and the concerned project managers
The project manager who approved the change to the specifications
Explanations:Answer: b) The change is technical in nature, so it needs technical expertise. It also needs the project and program managers to analyze the impact. Therefore B represents the best set of people to solve this problem
- During the project level HR planning, which aspect of the planning process should the program manager pay MOST attention to?
Resource leveling to ensure that there is optimum resource utilization
Recruiting the right set of resources with the correct set of skills
Ensuring that the correct team culture is maintained within all projects in the program
Performance management and effective employee engagement to ensure that employee retention is maximized
Answer: a) One of the ways in which program managers provide additional benefits and control is by ensuring that the resources are shared and their utilization across projects is optimized. Especially for the critical resources, this is what the program manager will focus on.
- A program manager believes in the Y-Theory and giving maximum autonomy to the team. Most of the project managers believe in the X-Theory and close management. What should be the recommended management style for the program?
The program manager should manage at a high level and the projects should have closer management
The program manager should adapt to the project manager’s style of managing
The project managers should adapt to the program manager’s style of management
It should depend on the needs of the projects and program at any given point in time
Answer: d) The management style should be driven by whatever is appropriate at the given moment in time. There is no right or wrong style.
- A program manager is discussing with the project managers about the best form of contract to be used with the suppliers to the program. Which of the following is the most accurate statement in this regard?
The advantage of cost reimbursable contracts is that the costs can be kept in check and the seller will be judicious in incurring expenses
The advantage of fixed price contracts is that it locks the two parties into a price and guarantees on time delivery
The risk associated with a time and materials contract is that the seller has too much control over the resources
The risk associated with a fixed price contract is that if the agreed price becomes unremunerative for the sellers, their commitment to the contract may diminish
Answer: d) All other statements have some issue. The seller has no incentive to control costs in a CR contract. FP contracts do not guarantee on time delivery. In a T&M contract, the buyer is in control of the resources.
- A program manager works in a matrix organization and is leading a cross functional program. The project managers all report into specific functions and have no direct reporting relationship with the program manager. Midway through the program, the VP of the IT function suddenly withdraws all the resources assigned to this program saying it is no longer fitting into his function’s priorities. What should the program manager do?
Escalate the matter to the Program Sponsor and ask for his assistance
Set up a meeting with the VP to explain the importance of the resources to your program
Analyze the impact of the absence of resources on the program
Note this as a risk in the program risk register and come up with a risk response plan
Explanations:Answer: a) In a matrix organization, the resources are owned by the functions. The program manager needs to seek senior management intervention to protect the program’s resources by approaching the program sponsor.
- A program manager is reviewing the business case for a few projects which have been suggested for funding in the forthcoming portfolio cycle. Apart from establishing financial, market and technological feasibility, what other consideration may be most important for the program manager to evaluate during the chartering process?
Whether the organization has the necessary resources, capabilities, and willingness to work on the project
Whether there is a valid business case behind the project
Whether the project manager is certified as a PMP
Whether the project will indeed deliver the benefits that have been promised in the statement of work
Answer: a) Feasibility from an organization’s standpoint needs to be evaluated. In asserting that financial and market feasibility is established, the business case is already taken care of. The project manager being certified will be beneficial but not sufficient factor for accepting it. Whether or not the project actually delivers the results cannot be known for certain in the beginning.
- During the “Deliver Program Benefits” phase of the program lifecycle, the program manager ensures that components are initiated and transitioned. While issuing the charters for the components, what should be the most important consideration for the program manager?
The components should be initiated in the right sequence, as per the schedule laid out in the program management plan.
Prior approval of the program board is secured to make sure there only the necessary components are chartered.
To make sure that the business cases for the components are thoroughly reviewed and validated before charters get issued.
To make sure that the components that are being initiated are contributing to the benefits that the program is expected to deliver.
Answer: d) Components that are initiated should contribute to the benefits. This should be the primary concern of the program manager, since we are in the benefits delivery phase. Other considerations are also valid, but option D is the most important.
- An engineering company known for excellence in turnkey programs has recently won a large order from a foreign government for a large infrastructure program. Which of the following represents the first set of priorities for the program manager?
Terminate existing programs with lower ROI so that all resources are potentially available for the new program if needed
Ensuring that the programs are broken down to the appropriate level of details for the project managers
Ensuring that as much of the work as possible is outsourced
Ensuring that the right resources are in place for the new work
Answer: d) Ensuring availability of resources to work on a foreign government project is of paramount importance as compared to the other statements.
- A program for implementing a critical upgrade to a company’s IT systems was implemented using 5 vendors spread across 6 continents. The program is approaching a deadline and there are several issues that are discovered during testing. There is a lot of finger pointing going on and very little progress being made towards resolving the issue. Which of the following will be most useful in this situation?
Colocation
Add penalty clauses to the contracts of all the vendors
Call for a program summit and issue a firm deadline to all the project managers
Increase the contingency reserves with regard to cost and time in anticipation of overruns
Answer: a) The word finger pointing indicates that nobody is taking ownership for the issues. At such a time, bringing everybody together in the same location (Colocation) may help getting focus back on resolving the problems in a timely manner.
- A program is considered to be fraught with risk. The program manager would like to ensure that the initial risk identification uncovers as many risks as possible so that they can be planned by the program and its components. Which of these techniques would help in coming up with wide range of risks?
Pareto analysis
The Delphi technique
Ishikawa diagrams
Mind maps
Answer: b) The requirement is to identify risks, which requires lateral thinking. Pareto analysis is used to prioritize and not really useful in the initial identification. Ishikawa diagrams are used to uncover root causes and may hint at some risks, but will not really give rise to a lot of them. Mind map is a technique used to organize the thoughts in a systematic manner. It might also help in risk identification, but the technique that will probably result in the biggest bang for the buck in terms of number of risks uncovered would be the Delphi technique.
- Who should be involved in the preparation of the Program WBS?
The program manager, the project managers, and the teams.
The program manager, the project managers, and the program sponsor.
The program manager and the program office team.
The program manager, the project managers, and subject matter experts.
Answer: a) The preparation of the PWBS should ideally involve the teams, along with the program and project managers because it creates a buy in from the team.
- The program scope statement has been finalized, the distribution of work among various components has been determined and the program WBS has been created. Which of the following activities should the program manager and the project manager’s focus on next?
Baseline the scope first, then move on to scheduling, budgeting and risk planning.
Work on scheduling, budgeting, risk, and quality planning.
Baseline the scope first, then move on to planning the resources and procurements related to the projects and the program.
Determine the schedule, cost, and resource requirements and the implications on risk and quality.
Answer: d) A and C are incorrect because the scope cannot and should not be baselined independent of the schedule and financial requirements. Among the rest, D is a more complete answer than B as it recognizes that schedule, cost, and resource needs will have to be balanced and this will impact risk and quality considerations.
- A program includes an operational department that provides support to the products produced by its projects. Since it is a newly introduced function the program manager is closely monitoring it. The program manager notices that average time to serve a customer has gone up for the past 7 consecutive days even though it is still within the service standard threshold set by the organization. What should the program manager do?
Continue to monitor the situation, intervening if the trend continues for some more time.
There is no need to do anything as long as the service threshold is not breached.
Make discreet inquiries about what is happening behind the scenes.
Direct the operations manager to launch an investigation and present an action plan.
Answer: d) The rule of 7 states that 7 consecutive points in ascending and descending sequence calls for an investigation and the process is deemed to be out of control. Hence the program manager must intervene and make sure that action is taken to rectify the situation.
- During a routine scan through of the project reports, the program manager noticed that one of the projects on the program had not yet baselined the scope and was into the execution stage for a long time. What should the program manager do?
Advice the project manager to move towards base lining the scope immediately
Ask the project work to be stopped until a clear scope baseline can be arrived at
Ignore the finding because managing project scope is the project manager’s responsibility
Discuss with the project manager about the scope definition activities on the project and help if necessary
Explanations:Answer: d) The scope not being baselined is not necessarily a showstopper. For example, sometimes projects will want to try out different options before deciding how and what it wants to accomplish. However, the program manager should inquire if there is anything that can be done to bring scope clarity for the project and help if necessary.
- Program management has similarities and differences with project management. Which of the following captures the essence of the differences?
Programs and projects create deliverables, projects create incremental benefits
Programs are run within a governance structure, projects have a lose governance framework
Programs and projects create deliverables, programs create benefits
Projects are run within a governance structure, programs have a lose governance framework
Answer: c) Program and projects can both create deliverables, with the main focus of the program being to create incremental benefits via the project deliverables. Projects themselves do not create incremental benefits, those come via the program. Both programs and projects should be run within a governance structure.
- A large construction complex is being built. The complex consists of many residential apartment blocks and some commercial establishments. The program manager is about to start the planning process after the approval of the program charter. Which of the following steps should be done first?
Prepare the project level plans first and then the program management plan can be an aggregation of the plans.
Identify the potential benefits from the program compared with the likely cost and see if the program is justified.
Determine the features needed, budget, and time available; and seek the best possible compromise.
Proceed to define the scope and how it should be managed.
Answer: d) Scope planning is usually the starting point in all the planning processes on a program or project. The project plans cannot be the starting point for the program plan (Option A). Identification of benefits and costs is done during business case development, so B is not correct. The scope, cost, and time cannot all be fixed at the same time. Therefore, D is the best answer.
- A program has achieved most of its objectives and is nearing closure. Which of the following represents the most comprehensive list of activities to be performed?
Approve closure and transition of components, close contracts, perform financial closure, plan for benefits transition and sustainment and create lessons learned.
Approve component transitions, document lessons learned, archive project and program records, close contracts and take acceptance from the customer.
Close the program, approve component transitions, deliver required reports along with financial and benefit realization reports and document lessons learned.
Close projects and document lessons learned, produce financial and benefit realization reports, close contracts and release the resources of the program.
Answer: a) A is the most complete set of activities. B and D are missing the transition and sustainment of benefits, whereas C is missing closure of contracts.
- Which is the best statement about projects, programs, and portfolios?
A project provides a set of deliverables to a program which integrates them to create benefits which flow into the portfolio which is of strategic importance to the organization.
A project provides benefits to a program, which coordinates them to create a strategic value, whereas portfolios effectively maintain and sustain the benefits for the organization.
A projects goal is to create something of temporary and unique value, whereas a program takes over what a project creates and a portfolio elevates it to a strategic level.
A portfolio creates a program for effectively delivery management of projects, which then deliver the strategic benefits.
Answer: a) A is the best statement keeping in mind the definitions of projects, programs and portfolios. A project provides a set of deliverables to a program which integrates them to create benefits which flow into the portfolio which is of strategic importance to the organization.
- A program has created a new service for a telecom company that is ready for a rollout. The cost of a marketing campaign and the whole launch process is $5 million. Expectations are that the first year’s cash margin itself will recover the launch costs. However, there is a 50% chance that revenues may be lower due to problems in the broader economy. What parameters should the program manager take into consideration before deciding whether to go ahead with the launch?
Economic forecasts, the launch costs, the capital expenditure incurred till date, cash flow projections for the coming year.
Launch costs, cash flow projections for the coming years and NPV based on the launch costs and future cash flows.
Economic forecasts, the capital expenditure incurred till date, NPV of the projected cash flows in the future.
Economic forecasts, the capital expenditure including the launch costs incurred till date, projected payback period based on these.
Answer: b) The principle sunk costs suggests that the costs that are already incurred should not be taken into consideration while taking forward looking decisions. This rules out considering capital expenditure incurred in the past (A, C, and D). Option B makes sense because it is considering the cash flows in the coming year and using the time value concepts to make an informed decision.
- A program for developing road infrastructure has multiple stakeholders and getting everybody’s expectations understood and aligned is proving to be a challenge. Which is the best way to move forward?
Identify the stakeholders, establish their interest and impact, determine the engagement strategy.
Get the project managers to identify the stakeholders, determine who is positive and who is negative, and focus on engaging the positive stakeholders first.
Call all stakeholders for an all-expenses paid offsite meeting with drinks and cocktails to secure their buy in and reduce their opposition.
Ask the sponsor to provide guidance on which stakeholders should be managed and who can be ignored.
Answer: a) Option A provides a systematic approach for stakeholder engagement. Options B and D imply that engaging some stakeholders is not important, which may be a folly. Option C is a distracting answer, which seems to imply that taking stakeholders on a junket will magically align their expectations.
- A program manager is working on an IT application maintenance program consisting of multiple projects that take care of a suite of custom software applications for a client. The program has been transitioned to a new supplier at an offshore location recently. The project manager for one of the teams escalates to the program manager that she is having difficulty figuring out requirements for the new release because the customer is not providing clear requirements and is not being responsive to emails. What is the best way to deal with this situation?
Ask the project manager to quantify the impact of unclear requirements and send a note to the sponsor warning of a slip in the plans
Take help from the program sponsor to make the customer more willing to provide requirements
Consider collocating the customer with the team for some time until clarity about requirements is reached
Tell the project manager that it is her problem to solve
Answer: c) Option A does not solve the problem it merely documents the impact. Option D also does not solve the problem it pushes it back without any value addition. Option C is superior to option B because B is about arm-twisting the customer which may prove to be counterproductive in the long run, whereas C is providing a way to get past the situation.
- Zulu communications is a cell phone handset manufacturer. Its models have been popular in the past but it has been out paced by other companies which have introduced models with new features at a much faster rate, leading customers to believe Zulu is an old and stale company. It is launching a program to introduce next generation of phones that can successfully compete in the market. How should the program manager go about gathering the requirements for this program?
Organize brainstorming with representatives from the stakeholder groups and the team.
Circulate questionnaires and surveys to gather inputs.
Let the project managers drive the requirements process with the direction that they need to appeal to Gen Y.
Contact some industry experts and apply Delphi techniques to arrive at a feature set.
Answer: a) This is a program that will require a lot of lateral thinking to figure out which set of features will enable the company to compete successfully. This is best accomplished in a face-to-face setting that facilitates ideation. Option a (brainstorming) is the only technique that involves face-to-face discussions and seems most appropriate in this case.
