PMQ Exam Questions Flashcards
Explain two stages in the risk management process.
Initiate-identify-analyse-response-closure
Identify
* 2nd stage.
* Risk register is created.
* Use a range of risk identification techniques such as brainstorm, interviews, checklists, prompt lists (PESTLE, SWOT, VUCA).
* Capture ID, date, author, description.
* This is then circulated to stakeholders and project team.
* Supports the PM in identifying all known risks.
* Purpose here is to identify all potential risks and be aware of them. Can then take action around identified risk.
* The identify stage is supposed to have a wide ranging reach across the project team and stakeholders to get everyone’s opinion.
Assess
* 3rd stage.
* Need to understand the risk priority after the risks have been identified.
* We need to understand the probability and impact.
* Use risk matrix to give priority scores to potential risks. Allows you to rank the risks.
* This is then added to the risk register.
* It is done qualitatively and then quantitatively.
* PM understands the impact of each risk and then can move to next stage.
* The purpose is that the PM can then understand the priority to give to each depending on the assessment around probability and impact.
Explain three key benefits of risk management for projects
Reassures stakeholders
* that there is a process in place for risk, and that the team is aware of how to raise them,
* demonstrating that the risks are under good control.
* gives confidence that analysis to identify potential risks has been completed.
* The risk mgmt plan is a valuable resource for all stakeholders that need information on the risk organisation and control structure as well as the precise roles and duties for risk management
Better and more accurate plans
* using risk management to identify possible threats to the project and building contingency for the potential risk into the plan.
* This increases stakeholder confidence in a successful outcome by giving the plans more credibility.
* For example, if a task has a risk of taking longer than anticipated and a 7-day contingency plan is in place, it shows that there are careful measures are in place.
development of the team’s ability to assess risks
* People will become more aware that risks may exist around them just by the fact that risk analysis is being done.
* As a result, they often consider risk when choosing what to do now/in the future.
* risk awareness enhances the skills of those responsible for creating and carrying out plans by forecasting risks and comparing their predictions to reality
Enables greater risk taking
* absence of risk management plan means outcome is more unpredictable.
* Opportunities can remain unexploited.
* Having risk management plan means business can take greater level of risk with lower levels of contingency, thus improving overall return in investment (continency is cost).
* Proactive management of risk will remove some threats to opportunities.
* This means that the project is able to take more risks as the risk management plan will help reduce the risks in each area, so it becomes less risky.
Explain 2 key aspects of issue management
Log & analyse
purpose
* PM to record the issue immediately in the issue log so that it is documented for audit purposes.
* PM must understand exactly what the issue is, what caused it, and potential effects if it is not resolved, so that the sponsor is informed and subsequently able to assist
* Analyse the issue to understand the impacts to the project success criteria and benefits to the business based on time/cost/quality so the sponsor has this information to supply to the steering group
* Was this a risk already identified? investigate why the mitigation actions didn’t work?
Escalation
Purpose
* issues require support from the sponsor,
* the issue is escalated by the PM as soon as possible with their analysis and thoughts on possible actions to be undertaken
* If further action is necessary, the sponsor may then refer the matter to the steering group so that decisions can be made towards actions and authority can be assigned quickly.
Explain 2 ways in which risk can be identified
Prompt lists
Purpose
* Aide memoire for identifying risk.
* Can support other techniques such as brainstorming. This means that the project team thinks “outside the box” and will start to address areas that they may not have thought of without the prompt lists.
* PESTLE and SWOT are examples of Prompt lists
* Uses headings to help people identify risks be structured as hierarchical structure of major risks and then broken down into sub risks.
Brainstorming
Purpose
* aim is to give as many individuals as possible the opportunity to participate and assess the risks.
* Discussions can prompt other people’s thought processes to help identify as many potential risk areas as possible.
* Captures risks quickly
* Usually done in groups but can be done on an individual basis too.
* provides a way to increase team engagement for the risk management process
* Can be used to engage project stakeholder in the process of identifying risks.
* Independent facilitator is used to facilitate the session to make sure it is well organisationanised and keeps a reasonable pace.
* produces a list of risks described by a phrase or sentence indicating the cause of the risk.
* Risks are transferred to the risk management register.
Explain 3 responses to risk
Avoid-reduce-transfer-accept (threat) exploit-enhance-share (opportunity)
Reduce
* A proactive approach to risk is to reduce the likelihood of it happening regarded as being preventative
* This usually has a price tag attached to it, although the cost should not be greater than the impact of the risk.
* the risk is not entirely eliminated, but the purpose is to reduce the likelihood and/or impact of the risk occurring, thus lowering the risk’s overall risk score and reducing the overall impact on the project.
Transfer
* a proactive response to risk involves passing the responsibility of bearing the impact of the threat to a third party.
* For example the purchase of insurance.
* This reduces impact but does not reduce the probability of the threat occurring.
* Reduce probability only if they can control the risk better
* Only reduce probability if they are able to better manage the risk.
* Costs associated are typically quite high
* The purpose is to transfer any potential risk exposure away from the project and the business and to lessen the “stress” surrounding the risk
Acceptance
* Accepting a risk is a reactive response.
* The risk will be taken on by the project if there is no feasible or acceptable method of avoiding or reducing it
* For example, tasks may be on the critical path that cannot be avoided.
* PM will let stakeholders know if they are likely to be impacted by accepting the risk
* This response is used If the risk’s probability and potential impact are low so the PM can concentrate on other issues with far higher risk scores.
Describe two benefits of having an embedded PMO
PMO can be embedded, Central or Hub and spoke.
* Embedded within the project, PM gets their own dedicated project management office resource to help with the deployment of the project
* Detailed understanding of the project and can provide more targeted input solely of the project with no interruptions from other projects or programmes.
* An embedded project management office (PMO) sits under programme management in an organisation and often used by larger projects only as they are the only ones able to afford the expert advice on offer.
* An embedded PMO delivers best practice guidance to project managers based on organisational standards.
* UK corporate governance laws dictate that organisations must have standard processes in project management that all projects adhere to.
* Therefore, by giving out best practice guidance on topics such as risk and issue management and how to complete change control documents, the PMO is ensuring that the organisation is compliant with the law.
* Also, more effective project management through best practice guidance increases the chances of a successful project, leading to a more profitable outcome for the organisation.
- The PMO is made up of experts in specific project management tasks, for example, estimators, schedulers and risk managers.
- Project managers can consult with these experts to solve problems in their own projects and ensure that they are as successful as possible when managing risks, for example. More accurate risk management could mean that risks are analysed with more uniformity in keeping with the organisations risk appetite.
- Therefore, threats will not be underestimated that they could terminate the project prematurely.
- It would also prevent risky projects from proceeding and ensure that risks could be taken by the organisation with more awareness of consequences.
describe two ways in which a PMO can assist a pm to successfully deliver a project
Additional resource
The PMO function has the ability to give the project more resources. The additional resource can be used by the PM to perform tasks. As a result, the project team will grow in size and tasks can be divided up among the PMO team.
The PMO could be asked by the PM to provide training and deployment assistance. This will relieve the PM’s workload by lowering the amount of outside resources needed for the project. The PM could also request assistance from the PMO for the activity of quality control testing.
Reports and admin
The PMO team will be able to support and maintain consistency in the project’s processes allowing the PM to spend their time on other activities. For example distributing reports to stakeholders, maintaining the most recent version of project documents, supporting continuous improvement and sharing best practice.
explain three differences between the types of organisation
functional
-matrix
Management
In a functional organisation, employees only report to their functional line managers whereas In a matrix organisation, employees report to both the project manager and their functional line manager this could create problems if the individual is given more work than they are capable of handling and deciding which work takes priority.
Resources
In a functional organisation employees operate within their function in functional silos, they don’t move outside of that function. For example, HR, marketing. They are subject matter experts in their function and work undertaken is focussed on operational business as usual work. Whereas in a matrix organisation a mix of skilled resources are employed on a temporary basis to the project, which is an advantage to the project as they only need to be part of the team for the specific tasks required, and can then return to business as usual.
Authority
In a functional organisation the functional manager has the authority for the work undertaken within their function whereas in a matrix organisation the matrix manager does not have authority, there will be different managers who will have different authorisation levels and thereby some decisions can take longer as they will not have sole responsibility for all decisions to be made. This requires good interpersonal relationships as well as regular effective communication between all areas of the organisation.
explain three differences between temporary and permanent organisation
Teams
Business as usual (BAU) are Permanent structures, they have stable teams for routine/operational work whereas projects, will have temporary teams to deliver specific objectives within predetermined time frames
BAU need specific resources to carry out routine tasks. A stable team is required as the team will be specialists within the role and therefore bring efficiencies to the tasks. Whereas within a project environment, the tasks are varied and unique, therefore it requires temporary teams who bring different skills to the tasks.
Targets
In permanent teams, focus will be on the long-term goals of the business lots of different KPI’s and targets that the business will drive towards and there will be strategic thinking as well from the leadership. Whereas the temporary teams will focus on the project output on making sure the project delivers against very specific goals and targets and the PM will drive the project team looking at the project targets only.
Resources
In temporary teams, resources are flexible and limited. Team members will join and leave during the project and be replaced by other people. The hierarchical structure will be flexible and not established. Whereas in permanent teams, the resources are fixed and established.
The permanent teams need the permanent resource as the activities to be completed are long term and specialised.
The temporary team resource will be adaptable since it will be able to work around the project’s immediate activity.
Flow of authority/responsibility. Within a functional organisation the authority flows downwards with the functional manager responsible for their department only. In a matrix organisation the functional managers maintain responsibility for their departments but work together with the project managers who have a project authority that flows across the functions (i.e. sideways) to achieve the goals of a project. This shared authority will shift dependent on the type of matrix organisation, weak, balanced or strong. In the 1st authority lies with the functional manager and in the latter with the project manager.
Complexity A functional structure is relatively simple and convenient to manage, being focussed on the delivery of a simple product line and normally located in one location. While a matrix structure is complex in nature due to the combination of two organisational structures (or potentially more) and the need for communication between them. The matrix structure lends itself to the delivery of multiple product lines, potentially across multiple locations and tend to be projectized.
Explain two elements of a procurement strategy and why these are important
Make or buy
The purpose is to determine whether the company can procure the goods/services internally and minimise interactions with suppliers.
If so, costs will typically be lower and take less time to obtain.
If it is not possible to procure the goods/services internally they will be purchased externally from the marketplace once the supplier has been evaluated for their capability in relation to the requirements.
Going externally requires finding the right supplier for the business using the supplier selection process.
Supplier reimbursement methods
How the purchased goods will be paid for. Depending on the reimbursement type, time, cost, and quality may all be significantly impacted. Costs must first be agreed upon and then included in the contract. The project may suffer if the wrong approach is chosen if costs increase and it’s not a fixed cost contract for example. The purpose is to select the best approach for the project. It is crucial since it could have an enormous impact on the project’s costs and management time.
Relationship management – Centrally managed by procurement in many businesses. Can be controlled by the PM to ensure that they know what is happening and how it is progressing. Frequency of reviews is decided. Service level agreements can be managed and maintained to ensure success. The purpose is to ensure that the requirements of the procurement are met in terms in time, cost and quality. Management of the contract(s) means that the PM is able to keep on top of any potential issues and deal with them as they arise rather than having surprises at the end of the contract thereby avoiding any potential failure points.
explain three steps in the supplier process for a project
Research-pre-qualification-tender-award-manage-close
Research
The PM and the project team will do their research. First deciding whether to Make or buy. If the decision is to buy they will make a list of potential suppliers. Create a list of requirements for the supplier. so that suppliers with the necessary capabilities will be found which could result in a lengthy list. By conducting the research, the PM can be certain of the number of potential suppliers that may be used and whether this will be a challenge. If there are no suppliers, the PM will need to explore elsewhere and may need to develop a new plan.
Tender
The pre-qualified suppliers that have been chosen will be asked to submit bids for the contract. PM might try to get professional assistance for their expert opinion. Clear requirements must be stated, and all suppliers must be given an equal chance. After reviewing each bid, the bidding process will select the best one for the project based on the tender’s success criteria. The purpose is to choose a supplier or suppliers who will continue the process after the tender process, this can be accomplished through presentations or interviews.
Manage
is a crucial phase because it controls the relationship with the provider. To make sure the supplier is carrying out the contract, the PM or project team will keep in regular contact with them to drive for success, considering time, money, and quality. During this period, the PM may be required to settle conflicts. Dealing with supplier problems like delays in delivery is a possibility. The purpose is to ensure that the agreed procurement with the supplier meets the time, cost and quality agreed in the contract between both parties, through regular communication and management by the PM and the project team until the procurement date arrives.
describe three types of contractual relationship that an organisation may choose to procure goods or services for the project
Parallel contracts
* similar work is awarded to multiple contracts.
* more than one supplier here.
* The work will be done by multiple suppliers at the same time.
* This gives competition between suppliers.
* Ensures that there is no one single failure point.
* harder to manage for the PM as there is more than one supplier.
* Multiple suppliers are chosen to complete the work, which enables procurement to happen in a variety of ways and allows for timely completion of the project.
One comprehensive contract
* one single supplier
* Communication from PM to supplier is much easier being only one supplier.
* Less management time for the PM.
* No competition between suppliers.
* there is a single point of failure, this creates higher risk for the Project manager than having multiple suppliers. Liaison between project team and supplier is much easier as one supplier will supply all the goods and services for the project.
* may get less competitive prices than those for resources from the multiple contractual relationship model,
Sequential contracts
* These could be used to assign project deliverables in a sequential sequence to various suppliers based on when they are delivered.
* As an example, design and construction could be outsourced out to independent suppliers.
* The advantage of this is that spending commitments are phased, preventing large upfront cash commitments before knowing whether the final project can be completed.
* The interfaces and supplier relationships along this path would be more complicated.
* This could lead to disputes between providers, with each party putting the blame for any mistakes, discrepancies, or failures on the other.
In an iterative life cycle explain 2 components of the project management plan that need to be taken into account when arriving at the deployment baseline
Minimum viable product (MVP)
* The MVP is established with the product owner.
* The product owner is responsible for the product into the business.
* It sets out the minimum functionality that an output must satisfy.
* Not an exhaustive list of functionality- describes at a high level what the final product should achieve.
* This allows scope to remain fluid through the project.
* The purpose of the MVP is that it will determine the scope and therefore will feed into the baseline plan as the PM can determine how much time is needed to fulfil the MVP.
Time available
* How much time do we have to deliver the MVP must be answered for the project.
* The time available will inform what is achievable in terms of the MVP.
* Also determines how many iterations there will be.
* Also determines how long each iteration can last.
* Allows PM to keep close eye on progress against the MVP.
* This means that the time available is a key factor in determining the timelines of the project.
* The time on the project will therefore determine the plan around deployment to ensure that the time element is met.
explain three different methods of estimation in projects
Analogous
* also known as comparative estimating.
* It is dependent on data being available of a similar project to the one being estimated.
* You can use the data if the preceding project had a similar size, complexity, and methods used.
* If necessary, you may then include a component for material cost increases, say 10%, to obtain an overall estimate. Data must be readily available; else, it will be challenging.
* The data, such as estimates of costs and completion dates, will be used by the PM in constructing the PMP plan.
Analytical
also known as “bottom up” estimating.
* By combining the work breakdown structure and the detailed scope to generate estimates for both labour and non-labour tasks.
* To obtain an overall estimate for all of the work packages, the individual work estimates are added together.
* To make this estimation work, the work breakdown structure must be precise.
* utilised solely to estimate costs; not for duration.
* When you combine all the factors, you will have a thorough understanding of the expenses.
* you may exclude certain factors to lower the cost of activities that are not top priorities, which can result in effective cost management.
Delphi
* The purpose is to ensure that no one person’s perspective is given more weight than others.
* Subject matter experts provide their own opinions in a private setting to prevent problems with group discussions.
* The facilitator analyses the data and then provides feedback to the group via a review document.
* The members then provide further information to generate the project estimate.
* The document is then reviewed by the PM and the project team and estimates are produced, which is then fed back to the group for further comments.
State four sources of conflict within a project
Concept – When gathering requirements to define scope. PM and operations can have differences of opinion. Wrong people could be involved. Different perceptions of quality. Preconceived solutions from certain people.
Definition – Assembling the PMP and the schedule. Disagreements over-estimates. Line managers not wanting to release funds. Agreement from operations around resource differing from wants of the PM and project.
Deployment – Problems with suppliers. Items not arrived on time. Not met quality criteria as agreed in the contracts. Could cause delay to deployment and conflict.
Transition – Refusal to take ownership of the deliverables. Perception that product doesn’t meet criteria. Users want change in scope of product. Blame game around lessons learnt in project.
explain three common causes of conflicts arising in the following phases of the life cycle one from each phase concept definition deployment
Concept phase
* between the project sponsor and the organisation: Conflict securing funding or support for the project and obtaining business case approval
* between the end user and the project sponsor: Conflict agreeing the high-level scope of the project and balancing varying stakeholder influences
Definition
* Between the PM and project team and operations when trying to secure resources for the project.
* The PM will have to liaise with the business in relation to the deployment plan for the project.
* This will mean securing resources and time from operations to support with deployment.
* The project timeline was clash with operational challenges such as holidays etc, therefore the PM will have conflict with the operation as to when best deploy.
* Project timeline may have to push out or operations will have to be more flexible.
Deployment
* Between project team members if they join the team and responsibilities or ways of working have not clearly been defined and communicated.
* Between PM team if progress is behind where it should be (schedule/cost) etc.
* If the PM had not made it clear who is responsible for what activity, this could cause confusion and stress and lead to conflict.
* Team members could be duplicating work and activities will not be completed anywhere near as efficiently.
Transition
* Between end user and project manager if the outputs do not meet the end user acceptance criteria.
* The BAU needs to “sign off” the product before acceptance.
* If the output does not meet the user requirements, there could be push back and conflict from operations.
* business as usual will insist that the product needs to meet the requirements and the PM will need to ensure that it does to resolve the issue.
* This could mean a delay getting the output into BAU and hence the benefits realisation will be delayed, placing a greater strain between the project and the business.
Explain three benefits of a communication plan to a project
Systematic not ad-hoc
* Communication plan ensures that any communication that goes out is done systematically.
* You can plan the communication to go out at certain times and therefore it is not ad-hoc.
* This will mean that communications can be staggered and structured.
* Stakeholders will have confidence from this as all communication follows a plan.
* Everyone gets the communication at the right time.
* The communication is not sporadic and therefore keeps the drum beat of communications going.
Right information is provided
* Having a comms plan means that the correct information is given out.
* It comes from one source.
* Does not cause confusion.
* Can be version controlled.
* Information is controlled by the project manager and the project team.
* Information can be timely and focused on the right level.
* It can be be-spoke to the team that is receiving the information.
* The right information help ensure that compliance can be achieved.
* Helps with training of user teams.
Enhances stakeholder engagement
* the communication plan will be created having identified and assessed the stakeholders of the project and therefore the target audience.
* Once this is done, the project manager and team can then decide the best way of engaging with the stakeholders and by documenting these actions in a communication plan, so that nothing gets missed.
* By implementing the plan, the project manager ensures that the stakeholders are adequately communicated with over the course of the project, with relevant information, thus enhancing their engagement.
Explain two reasons why projects are structured in phases in a linear project life cycle
Facilitates management control - governance
* by reviews of each phase. Organisations can use phase reviews at the end of each phase of the linear life cycle to review the project and check that it is still on track to deliver the benefits as defined in the business case.
* The end of each phase in a linear life cycle will have predefined milestones and requirement of what the project should have achieved. This transparency will allow for maximum control and governance over the project.
Helps resource allocation
* If resources need to be acquired for the project, will make scheduling the resource much easier.
* Each team will know when to give their resource and they can then plan much better.
* Also, much easier to see shortfalls in resource from both project and business perspective.
* By understanding when the phases start and finish, the PM and the business can much better plan resources around the project. For example, in deployment the business can plan around holidays and operational stress points to support the project.
Allows focus on the work which is current
* Better information available to team which allows better plans to be generate by the outputs.
* Focus from all teams is on the current work. This will mean greater productivity and chances of timelines being hit when they should.
* All teams move together and have similar focus. This can also be true of the project team.
* Everybody knows what phase they are in and therefore can ensure that all the relevant activities are completed within that phase.
explain three differences between linear and iterative life cycles
Scope
* In a linear life cycle, all the work for the scope is done in the concept phase. Lots of work is done, so that the scope is clearly defined.
* The scope in a linear life cycle is very robust it does not change through the project.
* In a linear life cycle If you want to change anything you must submit a change request and go through the change control process
* In an iterative lifecycle, the scope will change through the project.
* The minimum viable product MVP is created at the start, Which is the basics that you want this output to deliver, but then it will change and built upon as you go through each iteration
* project manager will need to choose which lifecycle to follow and it the “output” is defined clearly, then a linear cycle would be best, If it is not (such as building an app) then an iterative one would be more suited.
Customer/user interaction
* In a linear life cycle, lots of customer interaction up front, whilst the scope is being defined.
* As you move through the linear lifecycle, there is then little customer interaction.
* In an iterative life cycle, there is lots of customer interaction throughout.
* As each iteration takes place, lots of interaction to ensure that the product is fit for purpose.
* In an iterative lifecycle this is so that the scope can be defined and shaped with all the feedback.
* In a linear lifecycle scope is already defined, so you don’t need anywhere near the same level of interaction and feedback.
Change
* In an iterative life cycle, change is constant Change will take place throughout each iteration in the project.
* In linear, once the scope is set in the concept phase. Change is monitored through a robust change control process. It is much less common in linear life cycles and much more strictly controlled.
* Iterative by nature will be change focused as when you go through the life cycle, in sprints, you will complete the sprint and then change for the next sprint.
* In linear there is little change because the scope should not change.
Describe two elements that need to be considered when allocating resources to a project schedule in a linear life cycle
How much does resource cost
* Cost is incurred through the use of resources.
* Rescheduling of resource may need to take place if predetermined cost limits are breached.
* A cashflow project can be created, often used to stage payments to suppliers.
* Provides basis for being able to set milestones.
* Then can create a cost breakdown structure (CBS) this can then be used in the PMP for the project manage to really understand how much the resource is against the plans.
When are resources needed
* You can map the resource requirement to the time schedule.
* Resource would include – people, machinery and materials.
* Helps to create the responsibility assignment matrix.
* You can use optimisation tools as smoothing and levelling on the resource.
* This means that the right resource and amount is allocated to each phase in the life cycle, particularly the deployment phase when resource would be supporting from the operation, so the PM needs to ensure that the resource levels are correct to support good resource management.
explain three key differences between resource smoothing and resource levelling
Resource
* How much resource is available to the project.
* In resource levelling, main constraint is resource availability. If resource is sparse, you extend the project duration as required and spread the resource over a longer period of time.
* In resource smoothing, no constraints around resource, so you can add resource in order to hit the project end date. This means that you can ensure that activities remain on track and the overall duration of activities is unaffected.
Time
* When will the project finish?
* In resource levelling, time is not a constraint. It does not matter when the project finishes. If you use resource levelling, the end date will be pushed back.
* In resource smoothing, time is the main constraint. The end date will not be pushed back in smoothing.
* Overall project will not be delayed. Activities only delayed within their float (so don’t overrun).
* This means that projects that use smoothing, will remain on track and projects that use levelling will overrun.
Critical path
* the shortest duration that the project will take in logical order.
* In resource levelling, changes can be made to the activities on the critical path (they can be extended outside their float time)
* In resource smoothing, changes cannot be done to activities on the critical path.
* In smoothing the critical path does not change, it levelling it does (will be pushed out).
* This means that the PMP will be impacted by levelling, but not by smoothing.
Explain two key differences between projects and business as usual
Risk
* Projects are inherently risky. The outcome is not guaranteed, The business has invested, as it is a new venture.
* BAU is not “risky” it is routine work and it is therefore not risky.
* The business knows the exact outcome of the BAU work.
* In project management it is uncertain and therefore risky.
* By undertaking the project, the business needs to assess if it will succeed.
* This is not done in everyday BAU work.
* There is a chance of failure in the project. The business is established and therefore failure rates are much lower. The project is something not done before and therefore it creates an element of risk for the business.
* If it was BAU, it would be certain and therefore not risky.
Time
* Projects are limited in time. They are timebound. There is a defined start and a defined end point to a project. The PM will need to manage the project in relation to time and schedule as a key success driver.
* BAU is not timebound. It is ongoing. Managers in BAU do not manage time of the BAU activities to completion before it runs out of time.
* Projects have a timeframe as the business will need to convert the output to an outcome and then the benefits as fast as is possible. If the project had no end time, the benefits could not be realised.