PMP TEST 2 Flashcards
1
Which organization structure is a combination of all structures?
SELECT THE CORRECT ANSWER
Tight Matrix
Strong Matrix
Composite
Functional
Correct Option:C
EXPLANATION
Composite structure is a combination of all organizational structures.
1) Tight Matrix- collocated
2) Strong Matrix - the project manager with equal or more power than the functional manager. The project manager has primary control over resources
3) Composite - combination of all structures
4) Functional - organization is grouped into departments where people with similar skills are kept together in forms of groups
2
John is managing a project. The project is about three-fourths done. Then, the site engineer reports that due to inherent complexities in a certain task, the deliverables would be delayed. This would involve additional analysis and then implementation. He requests that this new work, which was not envisioned earlier, be added to the scope and the time required be added to the schedule. You and the site engineer have analyzed the impact of this change to cost and have written up a change request and requested approval from the change control board. Just today, you have received approval from the change control board. What should be the immediate course of action?
SELECT THE CORRECT ANSWER
Start work immediately
Ascertain the impact of this change to scope, schedule, and cost before making any change
Perform Quality Assurance
Make sure that the scope and schedule baselines are updated to reflect the approved change before implementing the change
Correct Option:D
EXPLANATION
As the change has been approved, you should always update the baseline (in this case, the scope and schedule baselines) before implementing the change. This will ensure that you track performance against the new scope and schedule, and not against the old benchmarks.
3
You are in charge of managing a software development project that is related to simulations for driving racing cars. In one of your team meetings, it is revealed that a lot of issues have been reported in the air tunnel modelling module. On deeper analysis, it is found that many of the issues could have been prevented had a simple code review checklist been used. You prepare a code review checklist and ensure the code is reviewed per the checklist. This is a good example of:
SELECT THE CORRECT ANSWER
Corrective Action
Preventive Action
Defect Repair
Quality Control
Correct Option:A
Nonconformity - issues reported during Quality Assurance
1) Corrective action - is always preceded by nonconformity
2) Preventive action - is never preceded by nonconformity
3) Defect repair - issues found in the current delivery
4
You have replaced an earlier project manager in a project. The earlier project manager has left the organization and you are now responsible for the project. On reviewing the project management plan, you are disturbed because a number of procurement contracts have been signed off and they all turn out to be Cost plus fixed fee contracts. Why are you worried?
SELECT THE CORRECT ANSWER
All the risk is now with the seller
Contracts should always be Time and Material
Seller has no motivation to control cost and cost could spiral
Contracts should always be Fixed Price
Correct Option:C
EXPLANATION
FIXED - known, seller owns the risk
COST - uknown (all work delivered by seller), buyer owns the risk
T&M -uknown (small part of work work delivered by seller),
As a project manager, you indeed have a reason to be worried if your project has already been signed off on Cost Plus Fee type of contracts. In such contracts, you, the buyer, needs to pay the seller for all the costs and also an agreed percentage of the cost. As a result, there is no motivation on the seller to control the costs; in fact, it is in the interest of the seller to increase the costs. It is not necessary that all projects should always be T and M or Fixed Price. Option A is clearly wrong since all the risk is, in fact, with the buyer and not the seller.
5
You are managing a software development project for a banking product. In one of the team meetings, a debate arises if defects found during Quality control need to undergo change control. Some team members are convinced that all defects should undergo change control, while others are convinced that defects need not undergo change control. Which of the following statements is untrue?
SELECT THE CORRECT ANSWER
Defects to deliverables need to undergo change control
Defects to deliverables need not undergo change control
Corrective actions need to undergo change control
Preventive actions need to undergo change control
Correct Option:B
EXPLANATION
Defects to deliverables, corrective actions, and preventive actions need to undergo change control. So, all the above statements, except option B, are true.
6
You are responsible for managing a project that deals with laying out a freeway connecting two major port cities. Progress on the project has been smooth, and you and your team are very confident on completing the project well within the stipulated timelines. On reviewing, you see that the project has also run below the budget, resulting in savings. You decide to add an extra feature of reflector strips on the road every mile. You do a quick calculation and are satisfied that neither budget nor schedule will slip. You feel that by adding these extra features, you could also be guaranteed some future projects. This is an example of:
SELECT THE CORRECT ANSWER
Scope Creep
Gold Plating
Integrated Change Control
Fast Tracking
Correct Option:B
EXPLANATION
1) Scope Creep -extra features are added to a project at the request of a client.
2) Gold plating - project team adds on features that were not requested by the client
3) Integrated change control - formally approving or rejecting all changes before they are implemented
4) Fast tracking - activities are performed in parallel
This is an example of Gold Plating. Integrated change control deals with formally approving or rejecting changes before they are implemented, so it is not the correct answer. Fast tracking is a schedule compression technique, so it too is not the correct answer. While Scope Creep is related to change in scope, it is related to uncontrolled changes in product or projects scope and is often due to client interference. Gold plating is done intentionally or knowingly for some strategic purpose. Here, the manager believes that by adding the extra features, future projects could be bagged.
7
You are in charge of a project that deals with laying out a lavish 18-hole golf course. You have a number of contractors working on the project and you know that communication is key to success of the project. You have identified 10 stakeholders with whom you need to communicate. Due to some internal and external organizational changes at the client’s end, three new stakeholders have been added with whom you need to communicate. You also had to reduce one of the contractors with whom you were communicating. How many communication channels do you have now?
SELECT THE CORRECT ANSWER
45
78
91
66
Correct Option:D
EXPLANATION
Originally, you had 10 stakeholders to communicate with, so the number of communication channels was 10 * (10-1) /2 = 45. However, 3 new stakeholders were added, while 1 stakeholder was removed. So, the total number of stakeholders = 10 + 3 -1 = 12. The total number of communication channels is (12 * (12-1)) /2 = 66.
8
You are in charge of a project, and to ensure things go well, you have had monthly meetings with the stakeholders. The project is running on schedule and budget. You are in your fourth month of execution, but the stakeholder indicates dissatisfaction with the deliverables. Making changes in the deliverables would mean a delay in the schedule. Which process could have prevented this situation?
SELECT THE CORRECT ANSWER
Scope Planning
Scope Control
Schedule Control
Risk Monitoring and Control
Correct Option:A
EXPLANATION
The process that could have prevented this situation is Scope Planning. Project deliverables are defined during scope planning, so proper implementation of this process could have prevented this situation.
9
The project that you were in charge of has been successfully completed. The last of the deliverables have been formally accepted by the client. You had several contractors with whom contracts were prepared. With the project done, you decide to communicate the completion details and closure of contracts. Which is the best form of communication?
SELECT THE CORRECT ANSWER
Formal written
Formal verbal
Informal verbal
Informal written
Correct Option:A
EXPLANATION
As this is related to a contract, it must be a formal written form of communication. Any other form of communication related to contracts is not acceptable.
10RISK
Your company has bagged a number of government contracts dealing with setting up infrastructure. This includes setting up roads and bridges. This is a very big and prestigious project, so your company wants to ensure everything is planned well in advance. You are the project manager of this project. Considering its importance, you and your team come up with a list of risks. One of the subject matter experts indicates that during the months of July and August, the construction work of the bridge across the river would need to stop on account of past history of flooding of the river. You agree with the expert and plan the schedule accordingly. What strategy did you just apply?
SELECT THE CORRECT ANSWER
Accept
Exploit
Mitigate
Transfer
Correct Option:A
EXPLANATION
This is an example of Risk acceptance strategy as there is nothing you can do about situations not in your control. Risk exploitation is meant for positive situations, while risk mitigation is where you have a strategy to either reduce the risk impact or probability. Transfer is also not correct as the question does not state that someone else will be responsible for handling the risk.
11
You are in the process of defining activities and have broken down the WBS into individual activities. You now tag each activity with a unique code. So, you have defined a(n) __________ for each activity.
SELECT THE CORRECT ANSWER
Schedule Network Diagram
Activity List
Milestone List
Activity Identifier
Correct Option:D
1) Schedule Network Diagram - visualizes the sequential and logical relationship between tasks
2) Activity List - all the activities in detail
EXPLANATION
The question states that you have decided to uniquely tag each identified activity, which is known as Activity Identifier. This is done during creation of the Activity List.
12
You are managing a project that has teams located in different parts of the world. While the advantage of colocation is beneficial, the team structure or locations cannot be changed. Being an experienced manager, you realize that lack of a proper communication channel can quickly lead to chaos. What would your choice of communication be?
SELECT THE CORRECT ANSWER
Formal and Verbal
Formal and Written
Informal and Written
Informal and Verbal
Correct Option:B
EXPLANATION
Considering cross-located teams and difference in cultures, the best choice of communication in this case would be formal and written.
13
You are developing strategies to effectively engage stakeholders throughout the project life cycle. What process you are working on?
SELECT THE CORRECT ANSWER
Plan Stakeholder Engagement
Identify Stakeholders
Manage Stakeholder Engagement
Control Stakeholder Engagement
Correct Option:A
EXPLANATION
Plan Stakeholder Engagement is the process of developing a strategy to effectively engage stakeholders throughout the project life cycle.
14
You head the engineering department in your company. Lately, you have observed that certain deliveries of a specific team member are missing the schedule. You decide to discuss it with the team member. Initially, the team member is reluctant to discuss but finally opens up and indicates that the cause of the delays is often different instructions coming in from you as well as the project manager. She indicates that at such times she is confused about whose instructions to follow, thereby causing delays. What kind of an organizational structure is this most likely to be?
SELECT THE CORRECT ANSWER
Functional
Projectized
Weak Matrix
Balanced Matrix
Correct Option:D
EXPLANATION
1) Funcional - organization is grouped into departments where people with similar skills are kept togethe
2) Projectize - works by arranging activities into portfolios or programs and executing them through projects.
3) Week matrix - functional manager controls the project budget
4) Balnced matrix - authority is balanced between the project manager and the functional manager
Here the team member is being expected to follow instructions from both the Project Manager and the Functional Manager. This is never the case in a Functional or Projectized organization where the lines of authority are clearly defined. A weak matrix organization is more like a Functional Organization where the project manager has almost no authority. The scenario explained above is typical of a balanced matrix organization where power resides equally distributed between the functional and project manager.
15The release criteria include:
SELECT THE CORRECT ANSWER
The timing of the release of team members
The method in which you will release them
Both of the above are true
None of the above
Correct Option:C
EXPLANATION
The release criteria include both the timing of the release of team members and the method in which you will release them.
16As a project manager, you have successfully delivered all project deliverables within stipulated timelines. Your senior management wants you to calculate the Cost of Quality. As a project Manager, what costs would you NOT consider while making this calculation?
SELECT THE CORRECT ANSWER
Cost of Hiring
Prevention costs
Appraisal costs
External and Internal Failure costs
Correct Option:A
EXPLANATION
Option A is incorrect as hiring costs have nothing to do with Cost of Quality. Prevention and Appraisal Costs refer to expenditure during the project to avoid failures, while Internal and External Failure Costs are those incurred during and after the project because of failures.
17Which of the following is part of the Manage Quality process?
SELECT THE CORRECT ANSWER
Benchmarking
Cost of Quality
Design of experiments
Quality audits
Correct Option:D
EXPLANATION
Quality audits are part of the Manage Quality process.
18You are the project manager for a project. You are updating the WBS during Define Activities. This process is often called ________.
SELECT THE CORRECT ANSWER
Refinement
Update
Analysis
Supporting detail
Correct Option:A
EXPLANATION
Updating the WBS during Define Activities is often called Refinement. It occurs with riskier projects.
19
The Project Quality Management process must __________.
SELECT THE CORRECT ANSWER
Address the quality of the product
Improve project management
Ensure that the project satisfies customer requirements
All of the above
Correct Option:D
EXPLANATION
Project Quality Management addresses both the management of the project and the product. It improves project management as well as the quality of the product. It ensures that the project will satisfy customer requirements.
20
You are a project manager in a company, and your project is currently in the execution phase. The customer has requested you to perform additional work. This work will affect the budget but not the schedule of the project. What should you do next?
SELECT THE CORRECT ANSWER
Add the additional requirements to the project plan
Ignore the request
Explain the change procedure and ask to submit a request for change
Discuss with the project team about the change
Correct Option:C
EXPLANATION
Explaining the change procedure and asking to submit a request for change is the best choice.
21
You are managing a project and you have decided to outsource a part of the project to a vendor. You have offered a bonus to the vendor if the work is completed in two months. This is an example of:
SELECT THE CORRECT ANSWER
Project incentive
Project goal
Fixed price contract
None of the above
Correct Option:A
EXPLANATION
This is an example of project incentive.
Bonus as additional motivation
22
You and your team have just created a schedule network diagram. You have come up with the estimates, defined the durations, and identified the Critical Path. You now decide to do a Backward Pass through the Schedule Network Diagram. What would you be calculating?
SELECT THE CORRECT ANSWER
The Early Start and Early Finish for each activity
The Late Start and Late Finish for each activity
The duration of paths other than the critical path
The duration of the critical path
Correct Option:B
EXPLANATION
Options C and D are incorrect as Backward Pass is not used to calculate the duration. In fact, the critical path is calculated based on duration. Option A talks about Early Start and Early Finish, which are calculated using Forward Pass. Backward Pass is used to calculate the Late Start and Late Finish of all the activities in the network diagram.
23
Of the following types of contracts, which has the highest risk for the seller?
SELECT THE CORRECT ANSWER
Cost plus fixed fee - CPFF
Time and Material - T and M
Firm Fixed Price Contract - FFP
Cost plus Incentive fee CPIF
Correct Option:C
EXPLANATION
The riskiest for the seller among the options stated is Firm Fixed Price Contract, FFP. It’s a Fixed price contract in which total costs are fixed. The scope of work is clearly defined and stated. Cost-reimbursable contracts are the least risky for the seller since the costs are not fixed and paid at actuals. Time and material have medium risk from the perspective of the buyer and seller and are typically used for smaller dollar amounts.
24
What is the best use of a Work Authorization System?
SELECT THE CORRECT ANSWER
It manages the timing and sequence of activities that need to be performed.
It manages who performs the activity.
It identifies the resources needed to complete activities.
It is used for comparing actual work against the baselines.
Correct Option:A
EXPLANATION
It defines how work will be authorized and how work will be done at the right time and in the right sequence. Option B is not correct since who performs the work comes from the responsibility assignment matrix. Option C is also wrong. Option D is related to monitoring and controlling work performance data, which is not covered by Work Authorization System.
25
You are in charge of a software project that is almost 40% complete. The project stakeholders want a performance report to date. You had planned to use Earned Value Management methodology. You come up with the following numbers: EV = 100, AC = 300, PV = 150, and BAC = 600. Your team has faced numerous issues till now. However, you choose to ignore the current work performance and decide to go with what was originally planned. Based on this information, what would be the EAC for the project?
SELECT THE CORRECT ANSWER
800
200
600
1800
EV - Earn value AC - Actual cost PV - Planned value BAC - Budget at complete EAC - Estmate at complete
Correct Option:A
EXPLANATION
It is stated that the issues experienced in the project were ignored, so the past performance is not considered and the planned values are considered. So, EAC = AC + (BAC - EV) = 300 + (600 - 100) EAC = 800.
26
Your team has delivered phase one of a project to the client. Based on client feedback and issues found by the client, you decide to do some introspection to identify root causes so that the subsequent deliverables do not face the same issues. What techniques would you choose to apply?
SELECT THE CORRECT ANSWER
Perform Quality Audits
Review Activity Network Diagrams
Look up Process decision program charts
Perform Process Analysis
Correct Option:D
Quality Audits - project activities conform to the policies and procedures
Activity Network Diagrams - used for scheduling,
Process decision program charts - used to anticipate intermediate steps
Process Analysis - used to identify a problem and its cause and develop preventive actions
EXPLANATION
Quality Audits are meant to ascertain if the project activities conform to the policies and procedures, so it is not the correct answer. Activity Network diagrams are used for scheduling, while Process decision program charts are used to anticipate intermediate steps. The correct answer is Process Analysis, which is used to identify a problem and its cause and develop preventive actions.
27
Over lunch, you meet a colleague who is managing a large turnover project for setting up a chemical plant. Your colleague is worried because the client is being unreasonable and asking for changes that will have a severe impact on the scope, schedule, and cost. The client is also not ready to absorb the additional impact on schedule and cost. She seeks your advice. What should she do?
SELECT THE CORRECT ANSWER
Refuse to budge and not make any changes
Request her executive management to initiate legal action against the client
Make the changes and absorb the impact on cost, schedule, and scope
Set up a meeting with the client to better understand the changes being asked for
Correct Option:D
EXPLANATION
Why is the client being unreasonable? Why does the client want to make these changes? Obviously, your colleague is in a tough situation. However tough the problem is, a project manager must not act impulsively by seeking legal action or immediately making the changes. When faced with a problem, a project manager should first try and find the root cause and not react. So, in this case, the best advice for your colleague would be to set up a discussion with the client and try to understand the needs of the client.
28
You are managing a project to set up a brand new play area for the community. You and your team have been working as per the plan, and things are moving smoothly. Suddenly, one of the stakeholders indicates that the play area must also include a sand pit. This was not originally planned for, so you analyze the impact on the cost, schedule, and scope. You then submit the change request to the Change control board for their approval .You immediately receive approval. What should your next step be?
SELECT THE CORRECT ANSWER
Start the work done immediately
Update the impacted baselines - scope, cost, and schedule
Update the work performance reports and share them with stakeholders
Set up a meeting with the change control board
Correct Option:B
EXPLANATION
Once you have created the change request and submitted it for approval, you don’t need to set up a separate meeting with the change control board unless asked for. Work performance reports will be shared according to the frequency agreed upon. However, this is irrelevant to the question. You might be tempted to jump in and start work immediately, but you must first update the impacted baselines. In this case, all the three baselines have to be updated. This is necessary to ensure that performance information is tracked against the new baselines and not the old ones.
29
As a project manager, you are expected to calculate the cost of Poor Quality. The project work is in progress. What costs would you consider?
SELECT THE CORRECT ANSWER
Cost of Hiring
Prevention costs
Appraisal costs
External and Internal Failure costs
Correct Option:D
EXPLANATION
Cost of Hiring has nothing to do with cost of Poor Quality, so it is not the correct answer. Cost of Poor Quality is just another term for Failure Cost. Failure Costs are generally categorized into External and Internal Failure costs, so option D is correct. Prevention and Appraisal costs are costs of conformance, which are the costs incurred to avoid failures. Hence, these are not considered cost of Poor Quality.
30
You are in charge of building a bridge across a river. All the initial groundwork and structural designs have been completed, and the work is in progress. You know that the next two months will be particularly critical, involving activities such as Arc welding of stiffener plates. You know your company employs welders who specialize in this kind of work. However, you are apprehensive about their availability for the next two months. What should you refer to first to find out if these welders are available for the next two months?
SELECT THE CORRECT ANSWER
Milestone List
Pareto Chart
Histograms
Resource Calendars
Correct Option:D
EXPLANATION
The correct answer is Resource Calendars. These provide information regarding availability of resources and also the duration of their availability. So, referring to these documents would be the first course of action.
31
You and a group of managers conduct a weekly meeting for sharing information and project management best practices. Joe, who is a colleague of yours, explains the need for correctly identifying all the project stakeholders. He explains that in his current project, he has made use of Stakeholders Engagement Assessment Matrix. Many of the other colleagues are not quite aware of the need and usage of this matrix. Which of the following best describes this tool?
SELECT THE CORRECT ANSWER
Lists all the stakeholders along with their current engagement and desired engagement
Lists all the stakeholders
Lists only those stakeholders who are Resistant
Lists only those stakeholders who are Supportive
Correct Option:A
EXPLANATION
As the name suggests, Stakeholders Engagement Assessment Matrix is used to identify the current engagement level of project stakeholders. It can also be used to indicate the desired level of engagement. Through this analytical process, gaps in engagement levels can be identified and action plans and communication plans can be generated to bridge these gaps. The Stakeholder Engagement Assessment Matrix does not list stakeholders depending on their engagement level, so options C and D are clearly wrong. While you might be tempted to choose option B since you do list down all the stakeholders in a matrix in the document, the better answer is Option A.
32Your company policy allows you to gift customers within a certain limit. You have unintentionally given a gift to the customer that is beyond the limit mentioned in your company policy. What should you do?
SELECT THE CORRECT ANSWER
Forget it and don’t tell anyone
Contact your company’s senior management and ask for assistance
Ask your customer to return the gift
Ask your customer to give you a gift which has the same cost
Correct Option:B
EXPLANATION
The best option is to contact your company’s senior management and ask for assistance.
33
Earned Value Analysis is used to measure performance based on a few parameters. Identify them.
SELECT THE CORRECT ANSWER
Scope and Cost
Scope and Schedule
Scope, Cost, and Schedule
Cost and Schedule
Correct Option:C
EXPLANATION
Earned Value Analysis is used to measure performance based on Scope, Schedule, and Cost.
34
When handling a team with diverse cultures, the project manager should focus on:
SELECT THE CORRECT ANSWER
Recording the minutes of meeting
Face-to-Face meetings
Increasing the reporting frequency
Empowering the team to make their own decisions
Correct Option:D
EXPLANATION
Empowered teams norm better and perform better. Since they come up with solutions, the ownership is better.
35
What is the purpose of a fishbone diagram?
SELECT THE CORRECT ANSWER
Illustrates how various factors might be linked to potential problems or effects
Determines if a process is in control
Shows trends in a process over time
Shows the pattern of relationship between two variables
Correct Option:A
EXPLANATION
A fishbone diagram is used to illustrate how various factors might be linked to potential problems or effects.
36
Which of the following best describes Vroom’s Expectancy theory?
SELECT THE CORRECT ANSWER
Employees will put in efforts dependent on expectancy, valence, and instrumentality.
Employee motivation is not achievable
Hygiene factors will ensure that job dissatisfaction does not occur; however, it does not ensure job satisfaction.
People have needs starting with Physiological Needs and ending with self-actualization.
Correct Option:A
EXPLANATION
Vroom’s Expectancy theory is based on the idea that people believe there are relationships between the effort they put in at work, the performance reviews/ratings they are credited for the effort, and the rewards they receive from their effort and performance review ratings. So, people will be motivated if they believe that hard work and effort will lead to good performance reviews and good performance reviews will lead to desired rewards. This theory consists of three key elements: Expectancy (perception of an employee of how much and what amount of effort will lead to a desirable performance rating), Instrumentality (perception or expectation that a good performance rating would translate into a hefty salary hike), and Valence (preference of an employee for a certain reward). Option B is clearly unrelated to this theory, so it is not the correct answer. Option C is related to Herzberg’s Hygiene theory, so it too is not the correct answer. Option D is about Maslow’s Theory of Hierarchical needs, so it’s not the correct answer.
37
Who among the following gave the framework for Continuous improvement?
SELECT THE CORRECT ANSWER
Peter Drucker
Joseph Juran
Philip Crosby
Edward Deming
Correct Option:D
EXPLANATION
Deming’s cycle is known as PDCA-Plan-Do-Check-Act
38
You are managing a project which involves building software for the aeronautical domain. The nature of the work is complex and needs a lot of research. During Quality assurance, both the development team and testing team suggest that the quality assurance process be changed to include White Box testing and not just rely on Black Box testing. The teams want to make this shift in approach as they believe this would lead to better quality of deliverables. What is the best course of action?
SELECT THE CORRECT ANSWER
As the changes will help improve quality, execute white box testing
Create a change request
Refuse to adopt this change as this would mean a change in the agreed process
Analyze the impact of the change on scope, schedule, and cost, and then write up a Change Request
Correct Option:D
EXPLANATION
This is a question meant to test your understanding of change management. Any change, however small or big, should always be first analyzed for its impact on the constraints’ scope, cost, and schedule and then submitted to change control for approval. Changes without formal approval should not be implemented.
39
The Scope Baseline consists of _____.
SELECT THE CORRECT ANSWER
Approved Project Scope Statement, WBS, WBS Dictionary
Preliminary Project Scope Statement, Approved Project Scope Statement, WBS, WBS Dictionary
Scope Management Plan, WBS, WBS Dictionary
Scope Management Plan, Approved Project Scope Statement, WBS Dictionary
Correct Option:A
EXPLANATION
Scope Baseline
Baseline: an initial estimate (scope, cost, schedule)
used for further planning and control.
Includes
* Scope Statement - describes, in detail, the project’s deliverables and
the work required to create those
* Work Breakdown Structure (WBS)
* WBS Dictionary - extra scope details organized
to assist in further planning and control
40
As the project manager, you’ve decided to outsource a part of the project to a vendor. The vendor has discovered some issues that impact the cost and schedule of the work. How does the vendor update the agreement?
SELECT THE CORRECT ANSWER
A new contract needs to be signed by your company and the vendor
A contract addendum needs to be signed by your company and the vendor
An SOW needs to be signed by you and the vendor
None of the above
Correct Option:B
EXPLANATION
A contract addendum needs to be signed by your company and the vendor.
41RISK
As a manager on a project, you have to ensure that the project delivers within the scheduled timelines with minimal rework and customer delight. For some time now, the project work is proceeding smoothly with a CPI and SPI a perfect 1. One of your team members approaches you and indicates the possible need for a long vacation on personal grounds two months from now. You look up the schedule and find that this team member is scheduled to execute activities that are on the critical path, and the team member’s absence in two months’ time would cause a delay in schedule. You decide to take some action and reschedule task allocation to ensure that this team member is not planned to work on any of the critical path activities. What did you just do?
SELECT THE CORRECT ANSWER
Mitigate the risk
Avoid the risk
Transfer the risk
Exploit the risk
Correct Option:B
EXPLANATION
You have avoided the risk. By interchanging the tasks, you have ensured that the resource who wants to go on a long vacation does not work on critical path activities. There is no question of exploiting the risk as this is not a positive risk. This is not a case of risk mitigation since you have neither created a backup plan nor come up with an alternate strategy.
42
You are in the process of executing a project that deals with laying out electrical cables connecting two cities. You have been reporting progress on a monthly basis. This month, due to unplanned vacations, many of the staff have not turned up at work. This has caused a delay in the schedule. You decide to check if the schedule variance is within the allowable threshold. What document should you refer to?
SELECT THE CORRECT ANSWER
Project Management Plan
Schedule Management Plan
Project Schedule Network Diagram
Activity Definition
Correct Option:B
EXPLANATION
The acceptable schedule variances are defined in the Schedule Management Plan.
Schedule variances - are defined in the Schedule Management
Plan.
- the difference between the cost of work
performed
and the cost of work scheduled
43
Which of the following activities is not performed as a part of Project Closure?
SELECT THE CORRECT ANSWER
Ensuring all the deliverables meet contract requirements
Creating lessons learned and updating Organizational Process Assets
Final acceptance
Verifying scope
Correct Option:D
EXPLANATION
All the options except verifying scope are performed during project closure. Ensuring deliverables meet contract requirements and formal acceptance are key activities of project closure. Capturing lessons learned is also a very important activity performed during project closure. However, verifying scope is not performed during project closure. It belongs to the Monitoring and Controlling process group.
44
You have recently taken over a project that is using Agile methodology. Your team is in the process of understanding the user requirements and trying to prioritize them. Which technique will be most useful?
SELECT THE CORRECT ANSWER
Interviews
Kano Model
Delphi Technique
None of the above
Correct Option:B
EXPLANATION
MoSCoW model, 100 points method, and Kano model are techniques generally used in Agile projects.
Kano model
Breaks down quality definitions of a project into 5
categories:
* Must-be - customers expect these and take them for
granted.
* 1-dimensional - result in satisfaction when fulfilled,
result in dissatisfaction when unfulfilled.
* Attractive - result in satisfaction when fulfilled,
do NOT result in dissatisfaction when unfulfilled.
* Indifferent - neither good, or bad, don’t result in
satisfaction or dissatisfaction
* Reverse - by satisfying some, dissatisfy others.
45
You are in charge of building a shopping portal. You are fairly confident as you have a team experienced in doing such work. As per the agreement, at the end of the first month, you organize a demonstration of the software. You invite the sponsor and key stakeholders. Later, the sponsor informs you that she is not very happy with the progress, indicating that one of the clients who would be using this software is not satisfied as her needs are not being met. Satisfying this client’s needs would mean some radical changes with an impact on both cost and schedule. What could be the root cause of this issue?
SELECT THE CORRECT ANSWER
Deliverables were not as per requirement
The stakeholder is making unrealistic demands
The scope statement was ambiguous
All the stakeholders were not identified
Correct Option:D
EXPLANATION
When client expectations were not met
Stakeholder analysis deals with identifying all the stakeholders,
their needs and expectations,
and their influence.
The correct answer in this case is improper stakeholder analysis - Option D. While options A, B, and C could be true, the question gives no indication of these being the case. The question does mention an important client whose expectations were not met. Stakeholder analysis deals with identifying all the stakeholders, their needs and expectations, and their influence. In this case, the client’s needs are not being met, which indicates that stakeholder analysis and identification were not done correctly.
46
Reviews held at the end of each sprint to help the team know what went well and where continuous improvement can be done are called:
SELECT THE CORRECT ANSWER
Sprint review
Backlog review
Retrospective
Product review
Correct Option:C
EXPLANATION
Retrospectives are held at the end of each iteration to help the team look back at an iteration and plan improvements for the next one.
47
The ____ is the international organization that controls the standards for quality.
SELECT THE CORRECT ANSWER
ISO
PMP
PMI
ISCII
Correct Option:A
EXPLANATION
The ISO is the international organization that controls the standards for quality.
48Your company has won a large project’s administering funds for one of the fund houses. The project work has been going smoothly, and the customer has been praising the work done so far. The client has planned a visit the next month to go over the plans for the next phase of the project as well as to meet with the project team. Your senior management realizes that this client could potentially need additional capabilities in the derivatives segment. Your company has a strong exposure to this segment, having executed numerous similar projects. Your senior manager also invites key managers from the derivatives segment to showcase the organization’s abilities in the derivatives vertical. What is this an example of?
SELECT THE CORRECT ANSWER
Mitigating the risk
Avoiding the risk
Transferring the risk
Exploiting the risk
EXPLANATION
This is an example of exploiting the risk. The client is happy with the work progress, and there might also be an opportunity that the client could be interested in the derivatives segment. This opportunity could lead to more business. By inviting key managers from the derivatives segment, you are enhancing the possibility of generating additional revenue. Hence, this is an example of exploiting the risk. Note that this is a positive risk.
49
Which factors can either support or limit the project management options, act as inputs for planning processes, and have a negative or positive influence on a project outcome?
SELECT THE CORRECT ANSWER
Enterprise Environmental Factors
Organizational Standards
Norms
PMIS
Correct Option:A
EXPLANATION
These factors are conditions not under the immediate control of the team, but can influence, constrain, or direct the project, program, or portfolio
50
You are responsible for the complete makeover of a shopping mall, which involves civil work and painting. After going through the details, you have come up with the cost estimates. After approval, you have arrived at the cost baseline. Work is now in progress. You and the senior management are happy with the work. Suddenly, you realize that ceiling repair work was not factored in the estimates though it was very much a part of the scope. You decide to make use of Contingency reserves, but your senior manager advises you to make use of the Management reserve. What is the correct action?
SELECT THE CORRECT ANSWER
Making use of both the Management Reserve and the Contingency Reserve
Making use of Management Reserve
Making use of Contingency Reserve
None of the above
Correct Option:B
EXPLANATION
Management reserve is meant for unknown unknowns and is part of the scope of the project. The question clearly states that the work is in the scope. Contingency reserves are for known unknowns, which is not the case here. The correct answer is Management Reserve.
51
You are in your third month of project execution, which is expected to continue for 14 months. Your sponsor has asked for a performance report. You decide to create an S curve. Based on the S curve, you report your Actual Cost, which is more than the Earned Value. Also, the Planned Value is greater than the Earned Value. What would be the interpretation of this data?
SELECT THE CORRECT ANSWER
The project is over budget and behind schedule
The project is on schedule and on budget
The project is over budget but on schedule
The project is on budget but behind schedule
Correct Option:A
EXPLANATION
This is because both SPI and CPI are less than 1.
Schedule Performance Index = EV/PV
Cost Performance Index = EV/AC
52
You have been asked to provide cost estimates for a project involving complete electrical installation in warehouses. As a project manager, you have had past experience in similar projects in your previous organization. The organization you have joined also has recently done a similar project. The executive management wants you to quickly come up with an estimate. What estimation technique would you adopt?
SELECT THE CORRECT ANSWER
Ask your previous organization for the estimates
Use Parametric Estimating technique
Use Bottom-up Estimating
Use Analogous Estimating
Correct Option:D
EXPLANATION
Analogous estimating relies on previous similar projects as the basis of estimation. So, it relies on historical information. This technique is used when there is limited amount of detailed information, like during the early phases of the project. It is less costly and less time-consuming. As time is a constraint, this is the best choice.
Top-down I perform an analysis at the whole-project level.
Fast, not too accurate.
(2) variations that are top-down.
* Analogous (estimating by analogy, or history)
"uses history"
'Since similar projects have cost about $65,000,
this project should also cost about $65,000.'
* Parametric (estimating by history and a little math/parameters)
"uses history and a bit of math
'Other projects have taught us it takes about 10 days to build
1 km of road. This project requires 10 km, therefore should take
about 100 days.'
Parameter -> 1 km road = 10 days duration...
Bottom-up I perform an analysis on each activity, and roll
the totals up to a single project total.
Accurate, not too fast.
No variations. Merely Bottom-up.
53
You are managing a project for constructing a shopping complex. However, you have not made good progress due to the occurence of a flash flood. There have been a lot of escalations from key stakeholders, and executive management is pressing you to get the project on track. In a review meeting, your lead architect, sensing the urgency, suggests a change that could significantly reduce the schedule. She is very confident that the suggested change will work to get things on track. As a project manager, what is the best course of action?
SELECT THE CORRECT ANSWER
The project is lagging, so implement the change request as it would reduce the schedule
Reject the idea of making the change as this will need an approval from change control
Create a change request and submit it to change control board
Identify the impact of the change on the scope and cost and then include this information in the change request
Correct Option:D
EXPLANATION
No changes should be made without a formal approval, so option A is clearly wrong. Rejecting ideas without doing a thorough analysis of the impact is also not the correct approach. Now, the option of creating a change request and submitting it for approval sounds like the right option. However, the better approach is to do an analysis of the impact on scope, time, and cost and then submit the change request. So while option C is correct, the better option is D.
54You are in charge of constructing a high-rise residential building. After creating a Network diagram, you have identified the Critical Path. Work has started, but due to inclement weather, plinth work is delayed. This plinth work activity was on the critical path. As a manager driving this project, would you be worried and why?
SELECT THE CORRECT ANSWER
No - It will not matter if the Plinth work is delayed
No - Activities on the critical path do not impact the schedule
Yes - Any delay of activities on the critical path would lead to a delay of the entire project
Yes - you will now have to relay this bad news to the client
Correct Option:C
EXPLANATION
If activities on the critical path are delayed, it can lead to a delay in the entire Project. Hence, options A and B are incorrect. Option D is a very subjective answer, and the problem does not state how the stakeholders would take the news. So, the best answer is option C.
55
You know that the success of your project will be determined by how well you manage risks. You know that identifying risks upfront can help you be better prepared with risk response strategies. You consult with other project managers in the company. One manager suggests using SWOT to identify risks. What would you do next as a part of this technique?
SELECT THE CORRECT ANSWER
Gather team members and experts to discuss and identify risks
Gather anonymous responses from experts and identify risks
Perform root cause analysis to identify problems, their cause, and potential responses
Identify the organization’s strengths and weaknesses
Correct Option:D
EXPLANATION
SWOT involves identification of the strengths and weaknesses of the organization. This technique then identifies the threats due to organization’s weakness as well as opportunities due to the organization’s strengths. So, option D is the correct answer. The other three options are also risk identification techniques, but the question is specific to SWOT.
56
You have been assigned to a project that deals with developing a software product for the BFSI domain. You and your team are building the schedule network diagram. While sequencing activities, one of the Architects in your team suggests that rather than interacting with the database on every activity, you should introduce an activity that would cache the data. The team member argues that this will improve performance and suggests that the activity be introduced in the sequence prior to other activities that deal with database interaction. What kind of a dependency is this?
SELECT THE CORRECT ANSWER
This is an example of Mandatory Dependency.
This is an example of External Dependency.
This is an example of Discretionary Dependency or Soft Logic.
This is an example of Hard Logic.
Correct Option:C
EXPLANATION
Discretionary Dependency is also known as Soft Logic or Preferred Logic or Preferential Logic. Note that this is not a mandatory dependency as it is not a Must Have but more a Should have. Discretionary dependency decisions are usually based on best practices and business knowledge. In this case, a Software architect can be assumed to be an expert in his field.
Dependency:
- Mandatory “hard logic”
‘Part of the way you have to do the work’ (“nature” of the work)
“We need to wait 2 weeks for concrete to dry and cure before
we start building.” - Discretionary “soft logic”
‘The team can use their preference or “discretion”’.
‘We can build the servers at our desk and then take them to the lab, or just build them in the lab…’ - External (outside the work/project)
“We can’t start construction until City Hall has approved Blue-prints.” - Internal (inside the work/project)
‘… within the team’s control…’
“As soon as we’ve brought the concrete mix on-site, we can start building the concrete pad.”
57
You and your team are in the process of creating WBS and WBS Dictionary. What would be the best choice of attributes in a WBS Dictionary?
SELECT THE CORRECT ANSWER
Work Package ID and Work Package Description
Work Package ID, Control Account ID, and Work Package Description
Work Package Description
Work Package ID, Control Account ID, Work Package Description, Acceptance Criteria, Responsible Organization, Cost, Assumptions
Correct Option:D
EXPLANATION
Options A, B, and C describe what a WBS Dictionary should contain. So, they all seem like the right choices. However, the question asks about the BEST choice of attributes in a WBS Dictionary, which is provided in Option D. Note that the WBS and WBS Dictionary are correlated by WBS Name and Work Package ID
58
Project manager’s role is part time in _________ organization structure?
SELECT THE CORRECT ANSWER
Matrix
Composite
Functional
Projectized
58Project manager’s role is part time in _________ organization structure?
SELECT THE CORRECT ANSWER
Matrix
Composite
Functional
Projectized
Correct Option:C
EXPLANATION
PM’s role is part time in functional type of organization structure. The functional manager has authority.
59S Curve depicts a relationship between:
SELECT THE CORRECT ANSWER
Resource Availability and time
Remaining budget and time
Actual Cost, Planned Value, and Earned Value
Cost and Quality
Correct Option:C
EXPLANATION
S curve shows a relationship between Actual Cost, Planned Value, and Earned Value.
60Which of the following statements is false regarding Risk Management?
SELECT THE CORRECT ANSWER
All identified risks are maintained in the Risk Register.
Risk prioritization occurs in Qualitative Risk Analysis.
Risk prioritization occurs in Quantitative Risk Analysis.
Low-priority risks are maintained in a Watch List.
Correct Option:C
EXPLANATION
All of the statements are true except the statement regarding Quantitative Risk Analysis. Quantitative Risk analysis does not deal with prioritizing risks. The prioritization occurs in the Qualitative Risk Analysis process. Quantitative Risk Analysis deals with assigning numeric values to risks.
61Which of the following statements is NOT true regarding Contracts?
SELECT THE CORRECT ANSWER
Contracts are legally binding in nature.
Contracts obligate the buyer to provide compensation and the seller to provide some product or service in return.
By careful administration of terms and conditions, the buyer can transfer some of the risks to the seller.
Contracts undergo an approval process like any other plan.
Correct Option:D
EXPLANATION
This question tests your knowledge of contracts and procurement. At the onset, all the answers seem to be correct with respect to contracts. A contract is legally binding in nature; it’s an agreement between the seller providing some service or product and the buyer compensating the seller. Some of the risks can indeed be transferred to the seller through terms and conditions. Due to the legal nature, contracts are subject to an intensive approval process, much more intense than other plans. Hence in the context of the question, option D is the right answer.
62
You are in charge of a project for the electrical layout of a five-star hotel. You see this as a very simple project as you and your team have a lot of experience executing similar projects. As a result, your organization has a wealth of Organizational Process assets. You have worked out the exact details of the work involved and have a very detailed WBS with granular-level activities defined. You decide to employ the services of a contractor for laying out of the cable trays. What kind of a contract would be the best choice?
SELECT THE CORRECT ANSWER
Cost-reimbursable contract
Fixed-price contract
Time and Material contract
None of the above
Correct Option:B
EXPLANATION
When as a buyer you are clear of the scope and statement of work, the contract choice should be Fixed-price. In this type of contract, the scope is clearly defined, and almost all the risk lies with the seller. Here, the buyer has experience executing similar projects in the past and has also broken down WBS into detailed activities. So, the scope is clear, and the correct answer is option B.
63
Which hierarchical chart shows resources?
SELECT THE CORRECT ANSWER
RBS
OBS
WBS
Scope statement
Correct Option:A
EXPLANATION
The Resource Breakdown Structure shows various resources, both human and mechanical, needed for the project.
64Your company has won a project to build a school playground with specific toys and a sandpit. The school has mandated that the project be completed before the start of the school year. You review the plan and see that the estimated completion date is nearly a month after the desired completion date. As resources are sparse, you do not have the option to add additional resources. However, you see that the sand pit work can start in parallel with the play kits being installed. Your analysis tells you that by performing these activities in parallel, the project would meet its schedule. This is an example of:
SELECT THE CORRECT ANSWER
Scope Creep
Resource Levelling
Crashing
Fast Tracking
Correct Option:D
EXPLANATION
Crashing deals with adding additional resources and is not an option here. Fast Tracking is a schedule compression technique of performing activities in parallel. Note that Fast Tracking may result in increased risk and rework.
1) Scope Creep -extra features are added to a project at the request of a client.
2) Reource levelling - start and finish dates are adjusted based on resource constraints
3) Crashing - action to decrease the total project durations
4) Fast tracking - activities are performed in parallel
65You are in charge of a project to build a bridge across a river. You are halfway through the project. However, due to changes in environmental laws, the project can no longer proceed and would need to be terminated. Executive management has asked you to document the level of work completed for the project. In which of the following processes would this be done?
SELECT THE CORRECT ANSWER
Project Closure
Contract closure
Project charter
Scope Verification
Correct Option:D
EXPLANATION
Scope verification is performed not only while a project is being executed but it is also performed when a project is terminated. It is used to determine the level of completion.
66You have asked your team members to provide estimates of tasks. You see that a specific team member has provided estimates on the higher side. You discuss this with the team member. The team member admits that they did not have an idea of how long the task would take, so they came up with an estimate and then doubled it to be safe. What is this known as?
SELECT THE CORRECT ANSWER
Lead
Lag
Free Float
Pad
Correct Option:D
EXPLANATION
Pad is adding time as a buffer to project estimate. As the team member was uncertain of the time it would take, they doubled the estimate to be safe. Padding is a sign of poor Project Management.
PAD - is adding time as a buffer to project estimate.
LAG - delay between tasks that have a dependency
67
You are in the process of making cost estimates for a project. However, detailed requirements are not yet available. A similar project was executed by your company, and you decide to use the past project’s historical data to come up with your estimates. This is called:
SELECT THE CORRECT ANSWER
Analogous estimating
Parametric estimating
Bottom-up estimating
Three point estimating
Correct Option:A
EXPLANATION
The correct answer is Analogous estimating. It relies on past or historical data of a similar nature. As the project is at an early state where the detailed requirements are not yet available, this is the best technique to come to an early estimate, though it may not be very accurate.
68You are the project manager for a large Project. You are currently busy with approximating the number of work periods required to complete individual activities with estimated resources. Which of the following inputs do you need for this?
SELECT THE CORRECT ANSWER
Activity List
Resource requirements
Resource Breakdown structure
All of the above
Correct Option:D
EXPLANATION
The process is Estimate Activity Durations. For this process, all the options mentioned are used as inputs.
69
You are starting a new project. You break up the work into discrete work packages. To ensure that each work package has all the necessary details, you and your team decide to write down detailed information for each work package, such as Statement of work, details of the work package, and who will be responsible for the work package. Where would you store this information?
SELECT THE CORRECT ANSWER
Project Management Plan
WBS
WBS Dictionary
Approved Project Scope Statement
Correct Option:C
EXPLANATION
This is where this information is stored.
70You are the project manager of a software project. You have just analyzed activity sequences, durations, resource requirements, and schedule constraints and created project schedule. To which process does the above tasks belong?
SELECT THE CORRECT ANSWER
Define Activities
Sequence Activities
Develop Schedule
Control Schedule
Correct Option:C
EXPLANATION
Analyzing activity sequences, durations, resource requirements, and schedule constraints and creating project schedule belong to Develop Schedule process.
71You know that the success of your project will be determined by how well you manage risks. You know that identifying risks upfront can help you be better prepared with risk response strategies. So, you decide to identify risks by taking help of experts. You have identified some experts, and rather than calling them to your office, you send them questionnaires. You promise them complete anonymity so that they give unhindered responses. What information gathering technique are you adopting?
SELECT THE CORRECT ANSWER
Brainstorming
Root Cause Identification
SWOT analysis
Delphi Technique
Correct Option:D
EXPLANATION
All the four options listed above are information gathering techniques, but the correct answer is Delphi Technique. This is a form of information gathering technique where inputs from experts is solicited anonymously without gathering them together.
72Which of the following options best describes Achievement Theory of Motivation?
SELECT THE CORRECT ANSWER
Employees given a reward are most likely to be motivated.
People cannot be trusted and must be governed and monitored regularly to ensure tasks get done.
People are motivated by achievement, power, and affiliation.
Employees will put in an effort in direct proportion to the perceived review and reward.
Correct Option:C
Correct Option:C
EXPLANATION
Option A and Option D are related to Expectancy theory; Option B is related to Theory X style of management. So, these options are not the correct answers. Option C is the correct answer. The Achievement Theory of Motivation states there are three types of motivational needs: need for achievement, need for authority and power, and need for affiliation. As per this theory, a strong affiliation motivation undermines a manager’s objectivity because of the need to be liked, and this affects a manager’s decision-making capability. A strong authority motivation will produce a determined work ethic and commitment to the organization. Such people are attracted to the leadership role, though they may not possess the required flexibility and people-centered skills. People with strong achievement motivation make the best leaders, although there can be a tendency to demand too much of their staff in the belief that they are all highly achievement-focused and results-driven, which most people are not.
