PRACTICE EXAMS Flashcards
Choose the answer that best describes the relationship of Project Quality Management to Project Management.
a. Plan-Do pertains to project management; Check-Act pertains to Project Quality Management
b. Quality Management processes occur only in the close out phase of project management
c. Quality Planning occurs in the project initiation phase; Quality Assurance occurs in the Project Planning phase; Quality Control occurs in the Project Execution phase; and Quality Improvement occurs in the close out phase
d. Quality Management needs to be performed in each phase of the project lifecycle
D
The best answer choice is D because the Quality Management plan provides guidance and direction on how quality will be managed and validated throughout the life of the project.
The Program Evaluation Review Technique is used for:
a. Developing cost histograms
b. Estimating project duration when there is a degree of uncertainty with the activity duration estimates
c. Determining project duration when it is necessary to factor in the conditional probabilistic treatment of logical relationships
d. Presenting project summary status to upper management
B
The best answer choice is B because PERT uses three estimates to define an approximate range for an activity’s duration. Duration estimates based on three points with an assumed distribution provide an expected duration and clarify the range of uncertainty around the expected duration. It may also be used for cost and labour hour estimates.
You are a project manager in a large software development company. Your former manager, Susan, was director of the Project Management Office. Susan left the company on very good terms. When she was at your company, she developed a comprehensive Project Management methodology with a number of useful forms and templates. Susan was also a personal friend of yours. She called you last week and left you a voicemail requesting that you send her electronic copies of the forms and templates she developed. When you return Susan’s call, what should be your response to her request?
a. Try to avoid the question unless she brings it up in conversation
b. “Since you developed the templates, I would be happy to send them to you.”
c. “I’m sorry but I cannot send you the templates as they are proprietary information of the company.”
d. Do not call back and attempt to end your friendship with Susan
C
The best answer choice is C because according to the PMI Code of Ethics and Professional Conduct, every project manager has the responsibility to respect the confidentiality of sensitive information obtained in the course of professional activities.
You have just finished the Dodd-Frank project that involved the implementation of a new product for your financial corporation. What are the next steps you should take?
a. Ensure all of the changes that were requested are properly approved and that all stakeholders are aware of the changes that have been requested
b. Collect and disseminate all project performance information
c. Complete and settle all contracts related to the project, including resolution of any open items
d. Talk to your manager to find out the next project to which you are being assigned to prevent any downtime
C
The best answer choice is C because you should formally close the project and ensure all of the contracts are completed and settled, including settling any open items, along with payment for final invoices.
The contingency reserve is at $20,000 on the project. The project manager has authorized the following reserve allocations to the cost accounts: Design +$4,000, Build +$8,000, Test –$2,000, Rollout $0, Training +$4,000. The remaining contingency reserve is:
a. $14,000
b. $18,000
c. $34,000
d. $6,000
D
The best answer choice is D because adding together the Design, Build, Test, and Training phases costs ($14,000) and subtracting that from the contingency reserve of $20,000 leaves $6,000.
You are the project manager on a large technology contract. This project involves installing your new customer information system application. You need to get to market quickly in order to maintain a competitive advantage. What type of contract should you negotiate with the contracting company to motivate it to implement the new application as quickly as possible?
a. CPFF
b. FFP
c. FIP
d. CPIF
D
The best answer choice is D because CPIF, Cost Plus Incentive Fee, is a contract type where the buyer reimburses the seller for the seller’s allowable costs and the seller earns a profit if it meets defined performance criteria. In this example the criterion would be speed of implementation.
You have been assigned to lead a global project with team members from Korea, Germany, and Japan. Your team members from Germany insist that German engineering is superior. You have been evaluating what you can do in this situation and have identified this as an example of:
a. Ethnocentrism
b. Stereotyping
c. Lack of cultural sensitivity
d. A diversity issue
A
The best answer choice is A because ethnocentrism is the idea that one’s own group is superior.
You are the project manager for a major telecommunications project. The company has just announced plans to undertake a reduction in force and you are concerned that this may negatively impact your ability to get resources for your project. To make a case to senior management, you determined that you should create a report that shows the expected effort hours from the beginning to the end of the project. What report will you create?
a. Historical data curve
b. Standard deviation
c. S Curve
d. Resource levelling
C
The best answer choice is C because an S-curve shows a graphical display of cumulative costs, labor hours, or other relevant quantities plotted against time.
You are the project manager for a major software implementation project, and you have just completed a major phase of the project. You and your team have started to conduct a review of key deliverables and project performance. The reason for this review is to:
a. Learn from the success of the phase
b. Plan the next phase
c. Gain approval to continue the project
d. Estimate resources for the next phase
A
The best answer choice is A because each phase and end of the project should be closed out with a review of the key deliverables and project performance to formalize the acceptance of the products or services, to analyze project success, to gather lessons learned, and to archive information for future use.
You are the project manager on a very large highway transportation project. You have just received the remaining costs for the project and need to calculate the final payment to the subcontractor. You used a Fixed Price Incentive Fee contract for this agreement. Per the contract, the target cost was $500,000, the target profit was $50,000, the ceiling price was $700,000, and the share ratio was 80/20. You calculated an actual cost of $465,000 through a review of the last invoices. What is the amount of the incentive the contractor will receive?
a. $35,000
b. $7,000
c. $20,000
d. $42,000
B
The best answer choice is B because the cost savings is $500,000 – $465,000 = $35,000. With the 80/20 split, the contractor will receive $7,000 incentive (or 20% of the cost savings).
A new project manager has just been assigned a project that is in progress and is three weeks behind schedule. Her team members are about to be redistributed to another project based on original time estimates provided by the functional manager. What is the first step she should take?
a. She should revise the Gantt chart with new timelines
b. She should contact the steering committee for the project and request new team members
c. She should first show sympathy with the current team and delay decision making for another week
d. She should check the project plan for contingencies concerning resources and speak with the functional manager
D
The best answer choice is D since contingencies may have been planned for to address this risk and therefore minimize the impact of resources being redistributed.
You work for a major project management consulting firm. A potential client with a large data-warehousing project has requested that your company respond to its request for proposal (RFP). In your response, you have outlined that you will engage a subcontractor from a small database consulting firm specializing in object- oriented databases. You have identified three possible consulting companies that may be able to provide the level of expertise you will need for this project. To ensure all the sellers have a common understanding of the project, you should:
a. Advertise the opportunity
b. Send them the request for proposal
c. Get proposals back from each of the three vendors
d. Hold a bidder conference
D
The best answer choice is D because the bidders’ conference is a meeting between the buyer and all prospective sellers prior to submittal of a bid or proposal. Bidder conferences are used to ensure that all prospective sellers have a clear and common understanding of the procurement requirements and that no bidders receive preferential treatment.
Terry is a project manager in your company. He approached you for advice on ways that he can expand his list of prospective sellers. What is your advice for Terry so that he can get more sellers engaged in responding to his proposal?
a. Advertise in the professional journals
b. Hold a bidder conference
c. Send the procurement documents to all of the sellers
d. All of the above
A
The best answer choice is A because often existing lists of potential sellers can be expanded by placing advertisements in general circulation publications, such as trade publications, or online.
You are the project manager on a new software system implementation project for your company. This is your very first assignment as a project manager for your organization. You are trying to decide what roles you need to complete the project successfully. After review, you have decided that you need all the following roles except one. Which role do you not have on this project?
a. Team Lead
b. Human resources administrator
c. Requirements manager
d. Quality assurance
B
The best answer choice is B because human resource administration activities are seldom a direct responsibility of the project management team.
There are five general techniques for resolving conflict on projects. The method that considers searching for solutions that bring some degree of satisfaction to all parties in order to temporarily or partially resolve the conflict is called:
a. Problem solving
b. Forcing
c. Smoothing
d. Compromising
D
The best answer choice is D because compromising considers various issues by bargaining and searching for solutions that attempt to bring some degree of satisfaction to the parties in conflict.
According to Herzberg’s theory, which of the following are examples of motivating factors?
a. Social needs
b. Company policies
c. Working conditions
d. Opportunity for recognition
D
The best answer choice is D because Herzberg’s theory states that poor hygiene factors destroy motivation but changing hygiene factors alone will not increase motivation. The motivating factors are: opportunity for achievement, opportunity for recognition, the work itself, responsibility, advancement, and personal growth.
“Expected value” is a is a statistical concept that calculates the average outcome of a decision. The two values used to calculate the EV are:
a. Probability and occurrence
b. Impact and occurrence
c. Present and future value
d. Probability and impact
D
This option is correct.
Projects typically are authorized as a result of any of the following except:
a. Market demand
b. Organization need
c. Project team member request
d. Customer request
C
The best answer choice is C because the business case determines whether or not the project is worth the required investment. The business case is created as a result of one or more of the following: market demand, organizational need, customer request, technological advance, legal requirement, ecological impacts, or social need.
Your project is approximately 50% complete. Cost performance is expected to be similar to current performance. Given the following information, what is the VAC? EV = 950; AC = 800; PV = 850; BAC = 1,000; CPI = 1.19; and SPI = 1.12.
a. 160
b. 133
c. 50
d. 200
A
The best answer choice is A because VAC = BAC – EAC with EAC = BAC / CPI. Therefore, 1,000 / 1.19 = 840.34. Therefore, 1,000 – 840.34 = 159.66, or 160.
You are a project manager on a small insurance claims project designed to improve service quality and remove inefficient steps. One of your coworkers indicated that she worked on a similar type of project a year ago. Where will you go to get the most comprehensive information about this project?
a. Review the project plan of her project
b. Review the Quality Management plan of her project
c. Set up a meeting with her to discuss her experience on the project
d. Review historical data and lessons learned
D
The best answer choice is D because historical data and lessons learned will provide you with information that can be used to help you plan your current project.
Your project team identified six related projects with major dependencies on your deliverables. Some of these projects have a very similar scope and may overlap with your deliverables. In light of this, which of the following should you be most concerned about?
a. Scope change control
b. Scope verification
c. Risk response planning
d. Communications planning
C
The best answer choice is C because the number of dependencies on your deliverables increases the likelihood of increased risk. Risk response planning is critical to ensuring the on-time and on-budget completion of your deliverables.
In Risk Management, purchasing insurance is an example of:
a. Risk transference
b. Risk mitigation
c. Risk acceptance
d. Risk avoidance
A
The best answer choice is A because you are transferring the financial risk to the insurance company. Having insurance would minimize any cost impacts that might occur as a result of the risk event.
An activity has an early start date of the 15th and a late start date of the 24th. The activities duration is 5 days, and there are no nonworking days. Given this information, what can be concluded about the activity?
a. The Late Finish is the 27th
b. The Early Finish date of the activity is the end of the day on the 18th
c. Total Float for the activity is 9 days
d. Total calendar time to complete the activity is 5 days
C
The best answer choice is C because total Float is the amount of time that a scheduled activity can be delayed or extended from its early start date without delaying the project finish date or violating a schedule constraint. Total float is determined by subtracting the early start date from the late start date: 24 – 15 = 9.
Which term describes a modification of a logical relationship that delays a successor task?
a. Slack
b. Float
c. Lead
d. Lag
D
The best answer choice is D because lag is the amount of time whereby a successor activity will be delayed with respect to a predecessor activity.
Which of the following includes the processes required to ensure the project includes all the work and only the work required to complete the project successfully?
a. Cost Management
b. Scope Management
c. Schedule Management
d. Customer satisfaction management
B
The best answer choice is B because the Scope Management plan establishes the activities for developing, monitoring, and controlling project scope.
Effective project integration usually requires an emphasis on:
a. The personal career goals of the team members
b. Timely updates to the project plan
c. Effective communication at key interface points
d. Establishing internal controls
C
The best answer choice is C because project integration requires the direction and management of project work across all knowledge areas and phases of the project.
A project manager discovers during planning that part of the scope of work is undefined. The project manager should:
a. Continue to plan the project because the scope of work is not ready to be defined
b. Do what he or she can get the scope of work defined
c. Wait until the scope of work is defined and issue a change request to the project
d. Inform senior management of the problem
B
The best answer choice is B because without definition of scope, the project cannot be defined, validated, and controlled. The Scope Management plan is a significant input into the Develop Project Plan process and other Scope Management processes.
You are a new project manager who has never managed a project before, and you have been asked to plan a new project. It would be best in this situation to rely on ___________________ during planning in order to improve your chances of success.
a. Your intuition
b. Your project management training
c. Historical records
d. Responsibility Assignment Matrices
C
The best answer choice is C because historical information and lessons learned information are transferred to the lessons learned knowledge base for use by future projects or phases. This can include information on issues and risks as well as techniques that worked well that can be applied to future projects.
A project manager is unsure how much cost reserve to add to a project. There is a 50% chance of a weather delay causing an impact of $100,000 and a 30% chance of a delay in the testing center with a $20,000 impact. How much should the cost reserve be?
a. Less than $50,000
b. More than $120,000
c. Less than $20,000
d. More than $56,000
D
The best answer choice is D because 50% of $100,000 = $50,000 and 30% of $20,000 = $6,000. $50,000 + $6,000 = $56,000.
You are the chair of the project portfolio committee that meets for purposes of identifying and selecting projects that best serve the organization to achieve its strategic objectives. Everyone on the committee has many years of experience with the organization and its products and services. The committee prefers to use informal methods to select projects. Which of the following methods is the committee least likely to use?
a. Comparative approaches
b. Decision trees
c. Customer reviews
d. Benefit contribution
B
The best answer choice is B because decision trees are examples of a constrained optimization method and are a generalized technique. All other choices listed each serve as a type of benefit measurement method.
Which of the following regarding work performance reporting is correct?
a. It is part of the executing processes
b. It is part of the planning processes
c. It is part of the monitoring and control processes
d. It is part of the closing processes
C
The best answer choice is C because work performance reporting organizes and summarizes the performance data gathered. The performance data typically provides status and progress information on the project at the level of detail required by the various stakeholders.
You are the project manager on a large multimillion-dollar project to implement a new financial reporting system. You have just engaged a consulting firm to complete an audit of your new financial system. What are the four project management practices you need to apply in dealing with the consulting firm in the contracting relationship?
a. Project Plan Execution, Performance Reporting, Quality Control and Change Control
b. Change Control, Performance Reporting, Project Plan Execution and Contract Documentation
c. Change Control, Quality Control, Performance Reporting and Contract Documentation
d. Change Control, Quality Control, Performance Reporting and Procurement Audit
A
The best answer choice is A because the project manager is responsible for applying the appropriate processes in managing the relationship, including: (1) Project Plan Execution to authorize the contractor’s work at the appropriate time; (2) Performance Reporting to monitor contractor cost, schedule, and technical performance; (3) Quality Control to inspect and verify the adequacy of the contractor’s product; and (4) Change Control to ensure that changes are properly approved and that all those with a need to know are aware of such changes.
You are the project manager on a new business improvement project. Your stakeholder calls you frequently to ask you the status of the project and has indicated a number of times that there is not enough information available to him on a timely basis. This could have been avoided by:
a. Sending a hard copy report on a consistent basis
b. Determining the appropriate sponsor for your project
c. Sending a weekly email to the stakeholder to communicate status
d. Developing and implementing a Stakeholder Management plan
D
The best answer choice is D because projects require the development and implementation of a Stakeholder Management plan so that information is disseminated based on the information needs of the project stakeholders.
You have just completed a software implementation project for your organization that was performed under budget by an outside vendor. You have called the vendor to finalize the contract. As your last steps in the project, what documents do you need to have available to review for purposes of closing out the contract?
a. Project archives
b. Payments provided on the contract
c. All project performance and product documentation
d. Only the project performance documents that relate to the specific contract
C
The best answer choice is C because all documentation produced to record and analyze project performance must be available for review. In addition, all documents produced to describe the implemented products must be available.
You are the project manager on a website development project. You hired a software company to assist you in developing this new software product. Since this is a new product, your company wants to limit the risk and have the contractor cover the risk of cost overruns. What type of contract will you want the contractor to accept for this engagement?
a. Cost Plus Percentage Fee
b. Cost Plus Incentive Fee
c. Cost Plus Fixed Fee
d. Firm Fixed Price
D
The best answer choice is D because in price-based contracts, such as lump-sum contracts, the contract price is deemed to cover all costs, overheads, and profits. The contractor covers all overruns for risks specified or implied in the total price.
You are a project manager for a large telecommunications project that is tasked with implementing a new global network. A database server that you had installed in Canada has failed. You did not have any extra server equipment or funding identified in your risk response plan to accommodate this failure. You do have a backup database server in another facility location that you could use on a temporary basis until a replacement server can be procured. What is this called?
a. Risk avoidance
b. A workaround
c. A contingency plan
d. Risk transference
B
The best answer choice is B. Since this failure was not identified in the risk response plan, this was an unplanned response to a negative risk event—a workaround.
As a project becomes more complex, the level of uncertainty in scope:
a. Decreases
b. Remains the same
c. Increases
d. Decreases then increases
C
The best answer choice is C because as complexity increases, the adequacy of available information tends to decline, which contributes to scope uncertainty.
Which of the following aspects of leadership is MOST important for a project manager?
a. Team building
b. Technical capabilities
c. Communication
d. Project control
C
As project managers spend over 80% of their time communicating, especially during project execution, the correct choice is communication.
You are the project manager for a project that has just received numerous change requests from the customer. You are preparing the scope change requests for the Change Control Board comprised of key stakeholders. The Change Control Board plans to meet next week to review changes that have been submitted. The board will want to know how these requested changes will affect the project. In order to understand how the scope change requests will affect the project, you will:
a. Review the impact of the changes requested by reviewing their impact to the project charter
b. Compare the work required to accommodate the change requests against the Work Breakdown Structure
c. Review the lessons learned to determine how previous changes affected the project scope
d. Conduct a planning meeting with the team to discuss the change requests
B
The best answer choice is B. Change requests affect the scope of the project. The impact to scope can be determined by reviewing the WBS.
You are a project manager who is managing a project for the construction of a new office building. During this past week, initial inspections were conducted on the plumbing work that was completed. The inspection reported that the flow rate is not high enough and the water pressure is way too low. The inspector has submitted a change request to bring the plumbing system up to code. You are concerned about how this is going to impact the remaining project work. After careful consideration, you figure out that by doing some of the work after hours and some on weekends, and by rearranging the sequence of the contractor’s work, you can have the plumbing system up to code within five days and not lose any time on the schedule. This approach demonstrates:
a. Problem solving and collaboration
b. Effective listening skills
c. Effective project management skills
d. The kinds of risks that occur on every project
A
The best answer choice is A because to resolve these issues, you’ll need to meet with various stakeholders and employ communication, interpersonal, and management skills.
As the project manager, you are reviewing the project schedule. You discover that one task has been reestimated with a longer duration. The critical path includes tasks A, D, E, and F. The task that has been reestimated is task B. It was originally planned to take 6 days with 4 days of float. The reestimate indicates that it will take 8 days to complete. After inputting the new information into the project schedule, you should expect to see the following affect on the schedule:
a. Task B has become a part of the critical path
b. The critical path still includes only tasks A, D, E and F
c. Resources will need to be reallocated to complete task B
d. The project completion date is now extended by two days
B
The best answer choice is B because task B will not become part of the critical path until all float is expended. Critical path is the longest path through the project where the float is equal to zero.
As the project manager for the Acme project, you just finished demonstrating the prototype of the new product to the sponsor. The new features the sponsor had requested were approved. However, the sponsor has determined that three of the deliverables that were previously requested are no longer needed. Eliminating the three deliverables reduces the project budget by $50,000, the project completion date is three months earlier, and five technical Subject Matter Experts will no longer be needed for previously defined work assignments. The scope change request was submitted and approved by the Change Control Board. The best course of action for you to take as the project manager is to:
a. Move the hours and costs from the cancelled deliverables to tasks that are behind schedule and over budget
b. Reallocate the budget to purchase higher quality materials for the project, and reassign the five Subject Matter Experts to another project
c. Add the unused budget to the management reserve for potential future risks and do not change the project completion date
d. Update the project schedule to remove the cancelled deliverable and re-baseline the project to reflect the approved changes
D
The best answer choice is D because replanning the project by canceling the deliverables and reallocating resources to reduce the critical path will ensure that the changes in the schedule are incorporated to reflect the changes in scope.
You are the project manager, and your company uses the 50/50 rule to calculate earned value. You have determined that task A is 75% complete with a BAC of 500 hours. Task B is 25% complete with a BAC of 250 hours. Task C is 50% complete with a BAC of 500 hours. The schedule indicates that the planned value is 1,000 hours. You have calculated the Schedule Performance Index and will report this project as:
a. Ahead of schedule by 250 hours
b. Ahead of schedule by 500 hours
c. Behind schedule
d. On schedule
C
The best answer choice is C because this question requires you to calculate the SPI. SPI is calculated with the following formula: SPI = EV / PV. All tasks meet the 50/50 rule since none is complete, and the tasks are included in the calculation of the SPI as follows: Task A: EV = 250; Task B: EV = 125; Task C: EV = 250. Totaling all EVs = 625. PV = 1,000. Therefore, 625 / 1,000 = 0.625. Less than 1 is behind schedule.
The Acme Company uses the payback method to select projects. You are presenting a project for approval. The accountant assigned to the project has provided the following information about the project: Initial Investment = $100,000; Cash Flows Year 1 = $20,000; Cash Flows Year 2 = $50,000; Cash Flows Year 3 = $30,000; Cash Flows Year 4 = $50,000; and Cash Flows Year 5 = $400,000. Using this information, you calculate the payback period for the project as:
a. 3 years
b. 5 years
c. 2 years
d. 7 years
A
The best answer choice is A because a payback period is the length of time needed to recover the initial investment. The length of time is calculated using cash inflows. Initial investment – Cash flow until the results = 0. Therefore, $100,000 (initial investment) – (20,000 Y1 + 50,000 Y2 + $30,000 Y3) = 0.
You have been assigned to be the project manager in the middle of a project. The project is within tolerances of the baseline, but the customer is not happy with project performance. What is the first thing you should do?
a. Discuss it with the project team
b. Recalculate the baseline
c. Renegotiate the contract
d. Meet with the customer
D
The best answer choice is D because meeting with the customer in a timely manner will help you understand the customer’s issues with the project so that you can then determine an effective course of action.
You are a project management consultant and have been hired by a company to help it develop a new high- precision medical product. To complete the quality planning, you need to review the company’s quality policy. The quality policy will provide:
a. A formal statement of the company’s view of quality that is expressed and supported by senior management
b. The results of the completed checklist
c. Specifically which quality methods and tools should be used by project managers
d. Specific improvements that must be made for the project to be considered successful
A
The best answer choice is A because a quality policy states the organizations acceptable level of quality. The quality policy usually is created by the quality experts and supported by senior management.
Your company has recently received several complaints from customers regarding the quality of a new product they have purchased. As a senior project manager, you have been asked to help assess the reasons for the complaints. You decide that a quality audit should be performed to determine the nature and cause of the errors. The audit team found that there is an error in the sampling process. The failure in the sampling process resulted in what Cost of Quality?
a. Special cause variations
b. Training costs
c. External failure costs
d. Prevention costs
C
The best answer choice is C because external failure costs occur when products or services are delivered to the customer that do not meet requirements. Costs included are customer complaints and warranty repairs.
Your company has recently learned that quality assurance practices result in higher-quality products. The company already has a very successful quality control program. The company has created a new policy requiring that quality assurance processes be part of every project. The company has asked you to implement a quality assurance program. You are reviewing a number of different options to include in the program. Which of the following will not be included in the quality assurance program?
a. Training resources on the correct manufacturing process
b. The use of quality audits to determine future quality improvements
c. Inspecting work results to find defects
d. Quality improvement opportunities in the current project
C
The best answer choice is C because inspecting work results to find defects is a method used in quality control. It is also a reactive approach to managing quality as opposed to addressing it proactively.
You are the project manager for a new project that involves the installation of the new retooling machinery. The quality control team is concerned about the quality of the output of a specific machine. After discussing the issue with the team, you ask them to provide quantitative data to validate their concerns. The quality control team leader informs you that on average, 6 articles out of every 250 produced by a certain machine are defective. What is the probability that an article chosen at random is defective?
a. 1.5
b. 0.17
c. 0.02
d. 0.05
C
The best answer choice is C because there are 6 chances out of 250. 6 / 250 = .024.
You work for an international company that designs and implements manufacturing plants in international locations. You are currently leading an international project team to establish a new manufacturing site. You have become aware that the project team members in the other country have a high group-dependent culture. In managing the project team in this other country, you should expect that:
a. The team will consider team issues to be more important than individual issues
b. The team will value individual rewards and recognition over team rewards
c. Team members will expect everyone to think for themselves
d. The team will prefer that decisions to be by majority rules
A
The best answer choice is A because group-dependent cultures focus on consensus and working together more than on individualism.
Generally speaking, one of the most common sources of conflict during planning is:
a. Project deliverables and priorities
b. Cost objectives
c. Personality differences
d. Technical opinions
A
The best answer choice is A because when developing the project management plan, competing priorities often surface across various stakeholder groups who are potentially impacted by the project.
A document that formally recognizes the existence of a project and identifies the project manager’s authority to achieve the project objectives is called:
a. An invitation for bid
b. A Statement of Work
c. A project charter
d. A Request for Proposal
C
The best answer choice is C because Develop Project Charter is the process of developing a document that formally recognizes the existence of a project and provides the project manager with the authority to apply organizational resources to achieve the project objectives.
Project Communications Management can best be described as:
a. Meeting management techniques, such as preparing agendas, facilitating meetings and managing conflict
b. Processes necessary to ensure that the information needs of a project and its stakeholders are met through development and implementation of activities designed to achieve effective information exchange
c. A broad body of knowledge that is not unique to project management
d. Sender-receiver models including feedback loops, barriers and channels of communication
B
The best answer choice is B because it is the definition of Project Communications Management in the PMBOK® Guide—Sixth Edition.
The type of power that comes from the ability to gain support because project personnel perceive the project manager as being officially empowered to issue work assignments is:
a. Expert power
b. Referent power
c. Formal power
d. Reward power
C
The best answer choice is C because formal power is the ability to gain support when project personnel perceive the project manager as being officially empowered to issue directions to the project team members.
A project manager needs to determine how the manufacturing is going for the new micro satellites. Each satellite takes about three days to manufacture and costs $125,000. The inspection process has been a source of concern. The satellites are so small that inspection would destroy them. Under these circumstances, what should the project manager do?
a. Outsource the inspection to another firm with more expertise
b. Evaluate the attributes of the population
c. Inspect a sample of the satellites
d. Decrease the costs of quality
C
The best answer choice is C because sampling involves choosing a part of the population of interest for inspection.
Which is an output of the Develop Project Charter process?
a. Performance measurements
b. Project Charter
c. Work Breakdown Structure
d. Expert judgment
B
The best answer choice is B because project charter and assumption log are identified in the PMBOK® Guide—Sixth Edition as outputs.
Organizational process assets include all of the following except:
a. Templates
b. Company culture
c. Project files
d. Lessons learned
B
The best answer choice is B because organizational process assets include organizational standard processes, policies and processes definitions, templates, and historical information and lessons learned.
A contract has been signed with an external customer for work to be performed on a project that you have been assigned as the project manager. The contract includes a detailed Statement of Work, a milestone schedule, a Requirements Traceability Matrix, and user acceptance criteria. You next step is to:
a. Write a business case for the project
b. Start detailed planning for the project
c. Create a project charter for the project
d. Begin identifying requirements for the project
C
The best answer choice is C because the project charter formally authorizes the existence of a project and gives the project manager authority to apply organizational resources to accomplish the project objectives.
All of the following are tools and techniques used during the Acquire Resources process except:
a. Pre-assignment
b. Risk assessment
c. Negotiation
d. Virtual teams
B
The best answer choice is B because the tools and techniques for Acquire Resources include: preassignment, negotiation, acquisition, virtual teams, and multicriteria decision analysis.
In many process areas in the PMBOK® Guide, a change request is an output. When managing the project work, it is an input. This is because directing and managing the project work:
a. Typically follows monitoring project work in the sequence of processes
b. Involves setting the performance measurement baseline for the project
c. Is concerned with implementing approved change requests
d. Involves measuring performance to detect variances from the project management plan
C
The best answer choice is C because this process involves performing the work defined in the project management plan and implementing approved changes to achieve the project’s objectives.
You are managing a project and have come to realize that one of your virtual project team members is not fulfilling the tasks that have been assigned to her. You have decided to remove her from the project team. Assuming you can carry through with this decision, what is going to be your immediate priority?
a. The impact this termination has on the individual
b. The human resource implications that your decision has on you
c. Finding someone else to perform her responsibilities
d. Making sure that your boss supports your decision
C
The best answer choice is C because you want to ensure that you have someone to assume her responsibilities on the project so as not cause any delays in task accomplishments.
All of the following are activities performed during the Develop Team process except:
a. Establish ground rules
b. Provide performance feedback
c. Identify pre-assignments
d. Colocation
C
The best answer choice is C because pre-assignment is part of the Acquire Resources process.
Every organization has specific guidelines for measuring project team performance. Most managers agree on which of the following objectives?
a. Achievement of technical specifications and staying within budget
b. Achieving technical specifications and staying within budget
c. On-time performance, staying within budget and achieving performance specifications
d. On-time performance and staying within budget
The best answer is C because these parameters typify the competing demands of a project: cost, time, and scope.
You have inherited a cost reimbursable contract project reported to be on schedule. However, as you review the status, you realize the project is seriously behind schedule. There is also an important time constraint. The client really needs the end product when originally promised. What is your strategy?
a. Meet with the project team to develop a crash schedule that includes overtime
b. Bring in some proven contractors to try to put the project back on track
c. Meet with the client to evaluate the realistic schedule and cost and scope trade-offs
d. Develop several different fast-track scenarios
C
The best answer choice is C because meeting with the client will help manage needs and expectations while clarifying and resolving the issues that have been identified.
To manage communication effectively within the project team, all of the following are important for the project manager except:
a. Promoting harmony and trust between team members
b. Recognizing the importance of the interpersonal communication network
c. Ensuring feedback occurs in both directions
d. Formalizing and controlling communications between team members
D
The best answer choice is D because all of the other choices are tools and techniques of the Manage Communications process.
Which tool would you use to identify which functional units are responsible for work packages?
a. Work Breakdown Structure
b. Responsibility Assignment Matrix
c. Organizational Breakdown Structure
d. Organization Chart
C
The best answer choice is C because an Organizational Breakdown Structure is arranged according to an organization’s existing departments with project activities or work packages listed under each department.
As the project manager, you find that your schedule has slipped. In order to meet the current deadline, you must adjust the schedule. Which option provides the least amount of cost impact?
a. Crashing
b. Fast tracking
c. Working overtime
d. Reducing scope
B
The best answer choice is B because fast tracking is a schedule compression technique in which activities normally done in sequence are performed in parallel for at least a portion of their duration. Fast tracking may result in rework and increased risk, but does not typically result in increased costs.
What is the difference between Manage Quality and Control Quality?
a. Manage Quality is concerned with verification of measures; Control Quality is concerned with processes
b. Manage Quality means to identify alternative ways of coming back into compliance; Control Quality is measuring those alternatives
c. Manage Quality is concerned with satisfying standards defined in the Quality Management Plan; Control Quality is concerned with monitoring and recording the results of executing quality management processes
d. Manage Quality is monitoring changes to quality; Control Quality is documenting the impacts of quality changes
C
The best answer choice is C because as defined by the PMBOK® Guide, quality assurance is the process of ensuring that appropriate quality standards are used, and quality control is the process of monitoring and recording results of quality activities to assess compliance to standards.
Which of the following conflict resolution techniques will generate the most lasting solution?
a. Forcing
b. Smoothing
c. Compromising
d. Problem solving
D
The best answer choice is D because problem solving incorporates multiple viewpoints and insights from differing perspectives and requires an open dialogue and attitude that typically results in consensus and commitment.
What does a Gantt chart show that a Responsibility Assignment Matrix does not?
a. Scheduled time
b. Tasks
c. Owners of each task
d. Interrelationships
A
The best answer choice is A because a Responsibility Assignment Matrix equates project team resources to tasks and does not show time.
A project stakeholder is known to make many changes during the projects that involve them. What should the project manager do if this person is one of the project stakeholders on a new project?
a. Not allow the stakeholder to make changes
b. Get the stakeholder involved early on in the project planning phase
c. Talk to the stakeholder’s boss
d. Complain to management about the stakeholder’s past behaviours
B
The best answer choice is B, which is an example of developing appropriate management strategies to engage stakeholders both early and effectively throughout the project life cycle based on an understanding of their needs and interests in the project.
The primary customer of a project has requested an application change during user testing. As the project manager, how should you address this issue?
a. Develop a risk mitigation plan
b. Through a formal change request
c. Inform the project sponsor of how this change impacts cost, time and scope parameters of the project
d. Ensure that the scope change complies with all relevant contractual provisions
B
The best answer choice is B as any changes requested should go through formal change control during any phase of the project.
A project manager has just been notified of a cost increase from a seller. The project manager should first determine if:
a. There is enough reserve to handle the change
b. Less expensive resources are available
c. Another task can save money
d. The task is on the critical path
A
The best answer choice is A because there may be no need to pursue other options if there is enough money in contingency reserves to cover the increased cost.
The testing results for the new computer modulation project have arrived from the seller. The results indicate the project is not meeting overall quality requirements. If the project manager meets with the team to analyze the problem, the project manager is involved in:
a. Project Quality Management
b. Plan Quality Management
c. Manage Quality
d. Control Quality
D
The best answer choice is D because one of the key benefits of Control Quality is identifying the causes of poor process or product quality and recommending or taking action to eliminate those causes.
You are in the middle of executing a major modification to an existing product when you learn that the resources promised at the beginning of the project are not available. The best thing to do is to:
a. Show how the resources were originally promised to your project and request that they be placed back on your project
b. Replan the project without the resources
c. Explain the project impact ramifications to the resource manager if the resources are not made available
d. Crash the schedule
C
The best answer choice is C because you should always communicate the impact of decisions made regarding your project in terms of the impact decisions have on the cost, time, scope, quality, and risk of your project.
As the project manager, you have determined that following regarding the status of your project: PV = $2,200, EV = $2,000, AC = $2,500, and BAC = $10,000. What is your project’s Schedule Variance?
a. + $500
b. - $500
c. + $200
d. - $200
D
The best answer choice is D because the formula for Schedule Variance = EV – PV; therefore, $2,000 – $2,200 = –$200.
As the project manager, you have determined the following regarding the status of your project: PV = $2,200, EV = $2,000, AC = $2,500, and BAC = $10,000. What is the CPI for this project, and what does it tell you about cost performance thus far?
a. 0.20, and costs are exactly as planned
b. 0.80, and costs have exceeded planned costs
c. 80, and costs have exceeded planned costs
d. 0.20, and costs are below planned costs
B
The best answer choice is B because the formula for calculating CPI = EV / AC; therefore, $2,000 / $2,500 = .80. With a CPI of less than 1.00, the project is exceeding planned costs.
If a risk has a 90% chance of occurring and the impact will be $10,000, what does $9,000 represent?
a. Risk value
b. Present monetary value
c. Expected monetary value
d. Contingency budget
C
The best answer choice is C because Expected Monetary Value is determined by multiplying the probability of occurrence by the potential impact costs; therefore, .90 ×10,000 = $9,000.
You are the project manager on a large multinational customer service project. You have a diverse number of stakeholders on your project. You understand that their affect or influence and involvement in the project may not occur or become evident until later stages in the project. What is the best thing you can do to ensure that you focus on the relationships necessary to ensure the success of the project?
a. Develop a comprehensive Communications Management plan
b. Provide weekly status updates via conference calls to all interested stakeholders
c. Review and update your stakeholder engagement plan regularly and treat it as a living document
d. Rely on senior managers to keep their direct reports informed and involved in the project
C
The best answer choice is C because it is critical for project success to identify stakeholders early in the project or phase and to analyze their levels of interest, their individual expectations, as well as their importance and influence on a regular basis as stakeholder needs and interests will change throughout the project life cycle.
It is important to collect project records at the end of the project for all of the following reasons except to:
a. Document decisions made on the project
b. Recall what happened on the project
c. Show implications of cost decisions
d. Support the risks on the project
D
The best answer choice is D because documenting your decisions is part of creating document records for OPA. Recalling what happened on the project is part of lessons learned and historical information and documenting implications of cost decisions made during the life of the project. You would not do it for purposes of supporting risks.
Using a structured problem-solving method will help eliminate the problem and develop and long-lasting solution. Problem solving methods include all of the following except:
a. Defining the problem and identifying the root cause
b. Determining who is responsible for the problem
c. Generating and choosing the best solution
d. Implementing the solution and verifying the solution effectiveness
B
The best answer choice is B. All the other choices address the problem. Assessing blame is not an effective problem-solving technique.
A project is considered closed when the:
a. Client accepts the product
b. Lessons learned are completed
c. Archives are completed
d. Contract is finished
C
The best answer choice is C, which is the last step in finalizing all activities to complete a project.
Which of the following statements concerning bid documentation is/are correct?
a. Well-designed bid documentation can simplify comparison of responses
b. Bid documentation must be rigorous with no flexibility to allow consideration of seller suggestions
c. Bid documents generally should not include evaluation criteria
d. Bids are always a component of the SOW
A
The best answer choice is A because the goal of bid documentation is to ensure that it is designed in such a way to facilitate ease of vendor selection.
Based on the following information, what is the total expected value? Task A: 10% probability with a $20,000 impact. Task B: 30% probability and a $45,000 impact. Task C: 68% probability and an $18,000 impact.
a. $83,000
b. $27,740
c. $65,653
d. $34,657
B
The best answer choice is B because multiplying the probability of each task by its impact and adding them up results in $27,740. 10% × $20,000 = $2,000, 30% × $45,000 =$ 13,500, and 68% × $18,000 = $12,240; therefore, $2,000 + $13,500 + $12,240 = $27,740.
Tim is a new project manager to his organization. He has been assigned a new project and has been asked to begin developing the project charter. What is the best document that Tim should consider in order to get started?
a. Lessons learned from previous projects
b. Business case
c. Organizational Breakdown Structure
d. A Work Breakdown Structure from a similar project
B
The best answer choice is B because the business case describes the necessary information from a business perspective to determine whether or not the project is worth the required investment. It is a key input to the development of a project charter.
Which of the following would be the best project to select?
a. A project that will take six years to complete and has a NPV of $45,000
b. A project that will take three years to complete and has a NPV of $85,000
c. A project that will take eight years to complete and has a NPV of $30,000
d. A project that will take ten years to complete and has a NPV of $60,000
B
The best answer choice is B because the Net Present Value (NPV) of a project is the potential change in an investor’s wealth caused by that project while time value of money is being accounted for. NPV equals the present value of net cash inflows generated by a project less the initial investment on the project. In case of standalone projects, accept a project only if its NPV is positive, reject it if its NPV is negative, and stay indifferent between accepting or rejecting if NPV is zero. In case of mutually exclusive projects (i.e., competing projects), accept the project with the higher NPV.
Which of the following choices indicates that your project is under budget?
a. PV = 100, EV = 110
b. AC = 110, EV = 100
c. AC = 100, EV = 110
d. PV = 100, AC = 110
C
The best answer choice is C because if we use the formula for examining cost variance (EV – AC = CV), we conclude that our cost variance is 110 – 100 = +10. Positive means that we are under planned costs.
You are the project management on the XYZ project and are developing a duration estimate on Activity D to build a widget. There are five resources assigned to the activity that are available to work four hours each day. You have estimated that this activity should require approximately 160 hours of effort to complete. What is the duration of this activity?
a. 10.5 days
b. 9 days
c. 7.5 days
d. 8 days
D
The best answer choice is D because the formula for calculating duration is Duration = Effort / Availability / # of resources. Therefore, 160 / 4 = 40, then 40 / 5 = 8 days.
What is the present value of $300,000 received three years from now if we expect the interest rate to be 10%?
a. $230,544
b. $218,561
c. $225,394
d. $210,924
C
The best answer choice is C because present value means the value today of future cash flows. The formula is as follows: PV = FV / (1 + r) n with FV = future value, r = investment rate, and n = the number of time periods. To solve the problem, 300 / (1 + .1) 3 = 300 / 1.331, which equals $225,394.
As the project manager, you have begun planning your project. You have an initial meeting with your team to help clarify a valid sequence of core planning processes. Your team members disagree on the order in which key planning activities should occur. You decide a valid sequence of core planning processes for your project is as follows:
a. Resource planning, cost budgeting, procurement planning
b. Scope development, schedule development, activity duration estimates
c. Project plan development, cost estimating, staff acquisition
d. Define activities, sequence activities, estimate activity resources
D
The best answer choice is D, as those areas list the sequence of planning processes for time management.
The data date for a current project is taken midway through a 12-month, $500,000 baseline. The PV at this date equals $350,000, EV is equal to $360,500, and the cost variance is $7,210. What does the AC equal?
a. $352,960
b. $346,040
c. $349,790
d. $353,290
D
The best answer choice is D because by knowing that the EV is $360,500 and using the formula for cost variance, EV – AC = CV, we can solve this algebraically by subtracting $7,210 from $360,500, resulting in the answer of $353,290.
You are a project manager working for a company that uses a straight-line depreciation method. For your project, the total cost of the new desktops is $200,000, with a useful life of five years. At the end of five years, your company plans to sell the desktops for $50,000. How much will the company depreciate by the end of year 5?
a. $200,000
b. $150,000
c. $250,000
d. $30,000
B
The best answer choice is B because straight-line depreciation is calculated by (Cost – Salvage) / Years, giving the depreciation amount per year. To calculate the total for five years: (200,000 – 50,000) / 5 = 30,000 × 5 years = $150,000.
Given the following information, which project has the least amount of Cost Variance? Project A with PV = $1,500, AC = $1,400, and EV = $1,200. Project B with PV = $2,200, AC = $1,500, and EV = $2,300; Project C with PV = $3500, AC = $3,500, and EV= $3,500. Project D with PV = $1,800, AC = $2,200, and EV = $1,700.
a. Project A
b. Project C
c. Project B
d. Project D
B
The best answer choice is B because the formula for Cost Variance is EV – AC. $3,500 – $3,500 = 0, which means this project is on budget.
Your project is wrapping up, and your sponsor has provided formal written acceptance of the final deliverables. The project uses four different consulting firms. You have reviewed the termination clauses in each contract to ensure compliance. The accounting department has reviewed all of the invoices, and payment of the final bill has been authorized. The final remaining task is to:
a. Prepare performance appraisals for each of your project team members
b. Invite all of the team members to the celebration party
c. Formally notify the consulting firms that you wish to close the contracts
d. Determine if the resources should be retained for work assignments on your other projects
C
The best answer choice is C because the last step in closing a contract is to notify the consulting firms that the contract has been completed.
You are working on a building construction project and are creating the Work Breakdown Structure for the construction of the new building. To fully understand the total scope of work, you continue to break the work down into smaller components. You stop breaking down the work when the work package describes the work and an estimate can be completed. The technique you are using is called:
a. The refinement technique that enhances the development of deliverables
b. The application of lessons learned to work packages to create a scope statement
c. The application of historical information to create a Work Breakdown Structure
d. The decomposition of the deliverables into work packages that can support further planning
D
The best answer choice is D because decomposition is a technique used for dividing and subdividing the project scope deliverables into smaller, more manageable parts until there is a sufficient level of detail to support estimating and planning.
Your project has a series of deliverables that are now ready for review by your project sponsor. The sponsor has requested a formal inspection of the work results at a meeting that will take place today. Upon completion of the meeting, the project sponsor has agreed to provide you with written notification to signify his approval of the work products. Which of the following best describes the process used to inspect the deliverables?
a. A performance measurement to inspect the project deliverables
b. Validate Scope to formally accept the project’s deliverables
c. A Manage Quality technique to verify the quality of the deliverables
d. A scope change technique the sponsor uses to assess the need for scope changes
B
The best answer choice is B because Validate Scope is concerned with acceptance of the project deliverables.
Team development normally occurs in which process?
a. Initiating
b. Planning
c. Executing
d. Controlling
C
The best answer choice is C because Develop Team is an executing process.
A Configuration Management plan is any documented procedure used to apply technical administrative surveillance and direction to:
a. Identify and correct problems arising in functional areas of project implementation
b. Test new systems
c. Estimate and control risks
d. Identify and document physical characteristics of an item
D
The best answer choice is D because Configuration Management is the application of technical and administrative direction and surveillance to identify and document the functional and physical characteristics of a product, result, or service component and used to control any changes to characteristics of such.
The sum of the expected values of all the risk events provides an indication of the:
a. Worst case PERT estimate
b. Contingency funding requirements
c. Probability of each occurrence
d. Highest risks on the risk matrix
B
The best answer choice is B because contingency reserves are the budget within the cost baseline that is allocated for identified risks, which are accepted and for which contingent or mitigating responses are developed.
During the completion of the project, a project manager wants to ensure that the quality processes identified in the Quality Management plan were effective. The best way to do this is by:
a. Checking quality processes used against the standards set in the Quality Management plan
b. Identifying the quality standards you want the end product to meet
c. Performing cost-benefit analysis
d. Determining the cause of a problem using a fishbone diagram
A
The best answer choice is A because Manage Quality is the process of translating the quality management plan into executable quality activities that incorporate the organization’s quality processes into the project.
“I cannot test the software until I code the software.” This statement describes which type of dependency relationship?
a. Discretionary logic
b. Soft logic
c. Hard logic
d. Preferential logic
C
The best answer choice is C because this type of dependency is also referred to as mandatory dependency and is either required or inherent in the nature of the work.
You are a project manager for a large multinational company. You have team members all over the country who need to have access to copies of documents, design specifications, and test plans. You decide the best ways to do this is to create a:
a. Manual filing system
b. Database management system
c. Information management system
d. Communications management system
C
The best answer choice is C because an Information Management system is the tool identified for managing and distributing project information.
Which of the following best describes the project manager’s role relating to changes?
a. Serve the customer and do what the customer wants
b. Monitor and track changes to ensure they benefit the project
c. Evaluate how a change impacts the project and communicate that to the project steering committee
d. Deny change requests whenever possible
C
The best answer choice is C because it is the responsibility of the project manager to understand and monitor how changes can impact the project plan, project documents, or product deliverables.
When evaluating the Gantt chart, the project manager determines that the project is behind schedule. What should she do?
a. Obtain approval from the project sponsor to push the end date
b. Report findings to the project steering committee
c. Evaluate alternatives with the team
d. Evaluate alternatives with the customer
C
The best answer choice is C because prior to speaking with the customer, the project manager is responsible for considering and evaluating alternatives, in this case, schedule compression techniques, and for understanding potential impacts.
A Monte Carlo analysis is used to:
a. Get an indication of the overall risk involved in the project
b. Estimate the duration of an activity
c. Simulate the order in which activities will occur
d. Prove to management that additional resources will be needed
A
The best answer choice is A because a Monte Carlo analysis is a simulated process that generates hundreds or thousands of performance outcomes based on probability distributions for cost and schedule on individual tasks.
Project information has been distributed according to the Communications Management plan. Some project deliverables have been changed. Those changes were made according to the Change Control plan. One stakeholder expressed surprise to the project manager upon being informed of a previously published change to a project deliverable. All stakeholders received the communication containing notification of the change. What should the project manager do?
a. Determine why the stakeholder did not receive the information and let him or her known when it was published
b. Review the Communications Management plan to determine why the stakeholder did not understand his responsibility
c. Review the Communications Management plan and make revisions if necessary
d. Address the situation in the next steering committee meeting so others do not miss published changes
C
The best answer choice is C because it is the responsibility of the project manager to develop and implement a Communications Management plan that defines and addresses the specific information needs of each stakeholder and aids in the management of their engagement.
During earned value analysis, you, as project manager, want to forecast a new estimate at completion knowing that the current variances are seen as atypical and similar variances are not likely to occur in the future. What formula would you use for EAC?
a. EAC = AC + ETC
b. EAC = AC + BAC - EV
c. EAC = (AC + (BAC - EV)) / CPI
d. EAC = BAC / CPI
B
The best answer choice is B because this EAC method accepts project performance to date (whether favorable or unfavorable) as represented by the actual costs and predicts that all future ETC will be accomplished at the budgeted rate. It is used when variances are atypical and will not occur in the future.
Value engineering is performed to get:
a. More value from the cost analysis
b. Management to buy into the project
c. The team to buy into the project
d. A less costly way of doing the same scope of work
D
The best answer choice is D because value engineering is an approach used to optimize project life cycle costs, save time, increase profits, improve quality, solve problems, and use resources more effectively.
Formal written correspondence with the customer is required when:
a. Defects are detected
b. A customer requests additional work not covered under contract
c. The project has a schedule slippage that includes changes to the critical path
d. A project has cost overruns
B
The best answer choice is B because it is necessary to document the request in writing since it is not covered under the existing contract.
A report that is focused on predicting future project status is called a:
a. Trend report
b. Forecast report
c. Status report
d. Variance report
B
The best answer choice is B because a forecast report provides a prediction of conditions and events in the project’s future based on information available at the time of the forecast.
Validate Scope is normally done in parallel with:
a. Control Quality
b. Activity sequencing
c. Quality assurance
d. Quality planning
A
The best answer choice is A because verified deliverables are project deliverables that are completed and checked for correctness through the Control Quality process.
You have just discovered an error in the Implementation plan that will prevent you from meeting a milestone date. The best thing you can do is:
a. Develop alternative solutions to meet the milestone date
b. Change the milestone date
c. Remove any discussion about due dates in the project status report
d. Educate the team about the need to meet milestone dates
A
The best answer choice is A because it is the responsibility of the project manager to consider various schedule compression techniques that could be used to shorten the schedule in order to meet schedule constraints without reducing project scope.
You are the project manager working in a small software company that has invested heavily in the latest technology hardware and software. You have a dispute with a vendor about the features and cost of a product you need to use in conjunction with your latest software project. Before contacting the vendor to discuss these issues, you decide that you need to look up the dispute resolution procedures. Where would you find this information?
a. Project performance system
b. Work authorization system
c. Project management information system
d. Contract change management plan
D
The best answer choice is D because the Contract Change Management plan includes the paperwork, tracing systems, dispute resolution procedures, and approval levels necessary for authorizing changes.
You are the project manager on a large new financial system project. After a careful selection process, you have hired a large company with a significant contract. This vendor has been acquired to analyze the requirements of your new system. You need to monitor the performance of the consultants against the plan set out in the SOW. What is the best approach to accomplish this task?
a. Meetings with the vendor
b. Variance analysis
c. Monitoring constraints
d. Calculating planned value
B
The best answer choice is B because variance analysis involves comparing actual project results to the plan.
Quality control measurements, verified deliverables, work performance information, and change requests are all examples of:
a. Inputs to Control Quality
b. Outputs of Control Quality
c. Tools and techniques used in Control Quality
d. Quality reviews
B
The best answer choice is B as these are all defined as outputs to Control Quality.
You are a project manager working on a project to build a new bridge over a river. You have been working on a contract with one of the subcontractors. You are ready to negotiate. What must the contract negotiations resolve?
a. A proposal of the requirements on the new bridge
b. Standard contract language approved by the legal staff and sponsors
c. Mutual agreement on the structure and requirements of the contract prior to signing
d. Contract financing including the specifics on payments and incentives
C
The best answer choice is C because contract negotiation is a tool to clarify and gain mutual agreement on the structure and requirements of the contract prior to signing the contract.
You are managing a landscaping project for a new housing development neighborhood. The customer has signed a Time and Materials contract with your company. There are no penalties for early termination. After reviewing the site, the customer feels the landscaping is complete and the project is done. The customer wishes to terminate the contract. This special case of contract close-out is:
a. Procurement audit
b. Early termination
c. Contract change request
d. Statements of work
B
The best answer choice is B because early termination is defined as a special case of contract close-out because not all work may have been completed or not all funds may have been paid.
The Delphi technique is a tool that can be used in risk identification. This technique is used to:
a. Derive a consensus using a panel of experts to arrive at a convergent solution for a specific problem
b. Explore assumptions validity
c. Interview subject matter experts to identify risks based on their experience
d. Diagram how the various risks of the project interrelate
A
The best answer choice is A because the Delphi technique is a way to reach consensus of experts.
You have been assigned as the project manager on a very large project. One of your first activities is to identify inputs you need to consider in developing a Risk Management plan. You have a meeting scheduled with the project team to discuss developing a Risk Management plan. Which of the following documents will you not bring to this meeting?
a. Roles and responsibilities
b. Work breakdown structure
c. Risk response plan
d. Project charter
C
The best answer choice is C because the Risk Response plan is a document created after the Risk Management plan has been developed to respond to specific risks.
You are the project manager of a project designed to implement a new software system. Several months ago, the sponsor reviewed and approved the Project Charter and Work Breakdown Structure. Your team has been working hard on the prototype for the sponsor to review. At the meeting to present the prototype of the new system, the sponsor requested a few modifications. To ensure that the requests are properly approved, funded, and tracked, you decide a process is needed. What type of process will you implement to track and approve modifications requested?
a. A configuration management process
b. A performance measurement process
c. A scope change control process
d. A project management information system
C
The best answer choice is C because a scope Change Control process ensures that the changes are approved and budgeted.
Susan is a project manager for a very large company and has been assigned to assume responsibility for a large project that is in the planning phase. She has become increasingly concerned about the lack of responsiveness on the part of stakeholders to information she disseminates. She discusses this dilemma with a coworker and realizes that perhaps she doesn’t understand the information needs of her stakeholders. Susan realizes her next step should be to:
a. Analyze project objectives
b. Analyze business needs in support of requirements
c. Conduct a cost-benefit analysis
d. Conduct a stakeholder analysis
D
The best answer choice is D because a stakeholder analysis is a technique of systematically gathering and analyzing qualitative and quantitative information to determine whose interests should be taken into account throughout the life of the project.
All of the following are interpersonal skills used to manage stakeholder’s expectations except:
a. Build trust
b. Fast track the schedule to keep stakeholders happy
c. Resolve conflict
d. Practice active listening
B
The best answer choice is B because all of the other choices listed are examples of interpersonal skills that can serve as tools and techniques to manage stakeholder expectations.
Which of the following are benefits to formally planning the close-out of a project or phase?
a. Billing the vendor for work completed
b. Freeing up resources for additional training opportunities
c. Providing lessons learned to the organization’s knowledge base
d. Scheduling conflicts have been resolved
C
The best answer choice is C because at the close of a project or phase, historical information and lessons learned are transferred to the organization’s knowledge base for use by future projects or phases.
The Project Charter has been approved on your project, and an extremely large number of stakeholders have expressed interest in the project. You decide to meet with your team to complete a Salience model. The purpose of this tool is to:
a. Group stakeholders based on their level of authority
b. Group stakeholders based on their ability to effect change
c. Group stakeholders based on their organizational breakdown structure
d. Group stakeholders based on their ability to impose their will, their need for immediate attention and to determine if their involvement is appropriate
D
The best answer choice is D because a Salience model describes classes of stakeholders based on their power, urgency, and legitimacy.
The output of Identify stakeholders is:
a. A stakeholder management plan
b. An issues log
c. A stakeholder register
d. An organization breakdown structure
C
The best answer choice is C because the Stakeholder Register contains all details related to the identified stakeholders and is a living document that should be updated throughout the life of the project.
During a steering committee meeting, the project manager reported that his project was on schedule. The project has an earned value of $2,000, a planned value of $5,000, and the actual cost is $3,000. Why do you question the project manager about his interpretation of the schedule?
a. The Project Cost and Schedule Performance Indices are less than 1, meaning the project is behind schedule and over budget
b. The project has a Schedule Variance greater than 1, which means the project is on schedule
c. The Project Cost Performance Index is less than 1, which means that the project is over budget
d. The Project Cost Performance and Schedule Performance Indices are less than 1, which means the project is on budget and on schedule
A
The best answer choice is A because the project is both behind schedule and over budget based on the Cost Performance Index and the Schedule Performance Index. Cost Performance Index is calculated by Earned value / Actual cost. Schedule Performance Index is calculated by Earned value / Planned value. CPI = 2000/3000 = .66, SPI = 2000/5000 = .4. Indices less than 1 indicate behind-schedule or over-budget situations. While C is also correct, A is the best answer as it gives a more complete description of project status.
You are finalizing the monthly project status reports that are due now to your manager when you discover that several project team members are not reporting actual hours spent on their assigned project activities. Consequently, the project plan statistics are skewed. What is the most appropriate action you should take?
a. Discuss the impact of these actions with team members
b. Report team member actions to the functional manager
c. Continue to report information as it is presented to you
d. Provide accurate and truthful information regarding all project information in reports
D
The best answer choice is D because it is the responsibility of the project manager to validate any and all project information that is provided prior to disseminating the information to stakeholders. Doing this ensures that all project information is accurate.
Once a risk response is created, which of the following statements best describes the project manager’s role regarding risks while the project work is being completed?
a. Meet with stakeholders to inform them that risk responses have been created
b. After a risk event occurs, reassess risk rankings
c. Implement planned workarounds
d. Decide if risk owners need to be assigned to identified risks
B
The best answer choice is B because controlling risks is an ongoing process throughout the life of the project. Monitoring Risks involves tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk processes effectiveness.
When would a milestone chart be used instead of a Gantt chart?
a. During project planning
b. When reporting to team members
c. During risk analysis
d. When reporting to senior management
D
The best answer choice is D because senior management is primarily concerned with a summary view of the accomplishment of key deliverables, which is depicted in a milestone chart.
A project has a payback period of 10 months. What does this mean?
a. It will take the project 10 months to start incurring costs
b. The project will be complete in 10 months
c. The first 10 months of the project will provide a profit to the organization
d. It will take the project 10 months to cover the investment and start generating revenue
D
The best answer choice is D because the definition of payback period is the number of time periods it takes to recover your investment in the project before you start generating revenue.
If a project has a 60% chance of a US $100,000 profit and a 40% chance of a US $100,000 loss, the Expected Monetary Value for the project is:
a. US $100,000 profit
b. US $60,000 loss
c. US $40,000 loss
d. US $20,000 profit
D
The best answer choice is D because by subtracting the $40,000 loss from the $60,000 profit, the answer yielded is $20,000 profit.
As a senior project manager, you have been asked to coach a newly hired project manager in the area of Project Risk Management. How do you describe how Risk Management fits into the project management process?
a. Risk Management is an event that occurs only in the Initiation and Planning phase of a project
b. Risk Management is an event that occurs only in the Planning phase of a project
c. Risk Management is a process that continues through the first three phases of project management
d. Risk Management continues throughout a project up through the close out phase
D
The best answer choice is D because Risk Management planning is the process of defining how to conduct Risk Management activities effectively throughout the entire project life cycle.
Your project charter has been approved, and you have received direction to begin planning the project for a new resource management system for your organization. In order to ensure that key stakeholders have a common understanding of the rationale for the project, the major deliverables, and the project objectives, you decide that the next key task is:
a. Ask for stakeholder involvement in the development of the project plan
b. Create a Work Breakdown Structure
c. Develop a Communications Management plan
d. Develop a written scope statement
D
The best answer choice is D because preparation of a detailed project scope statement is critical to project success and builds on major deliverables, assumptions, and constraints that are documented during project initiation.
The data date for a current project is taken midway through a 12- month, $500,000 baseline. The PV at this date equals $350,000 and the SPI is 1.03. What does the EV equal?
a. $345,750
b. $353,250
c. $360,500
d. $357,000
C
The best answer choice is C because by using the formula SPI = EV / PV with the unknown being EV, we multiply PV × SPI. Therefore, $350,000 × 1.03 = $360,500.
You have just been assigned to lead a major technology project that is approximately 50% complete. The project involves numerous vendors and 25 people on your project team. You would like to review communications requirements for the project and what technology is being used to aid in project communications. You should refer to:
a. The Information Distribution plan
b. The Gantt Chart
c. The Communications Management plan
d. The project plan
C
The best answer choice is C because the Communications Management plan is a component of the project management plan and describes how project communications are planned, structured, monitored, and controlled.
You have been assigned as the project manager for a top-priority project in your organization. The deliverables defined for the project have hard time constraints, and the project is very complex. As the project manager, what must you do to get the resources you need to staff this project in a timely manner?
a. Insist on getting the best project resources in the organization to ensure timely delivery
b. Negotiate the appropriate staff who are available in the necessary time frame
c. Build in a reward program to motivate people on your project team
d. Identify team members in the same location so they can work closely together to ensure an on-time delivery
B
The best answer choice is B because most projects require negotiation to gain the staffing required to complete them in the needed time frame.
You have just been assigned as the project manager to rescue a troubled project. You have completed an initial evaluation of the problems and have uncovered a number of items that need to be addressed. The project is behind schedule and over budget due to a number of requests by the customer for additional functionality. The initial product that was selected has failed many initial quality assurance tests. The project team is seriously considering replacing the product with a different one. The product vendor has indicated the company is locked into the contract, and it cannot be changed. What should you do first?
a. Hire an attorney and sue the vendor for damages
b. Perform a quality audit on the testing processes
c. Implement an integrated Change Control system
d. Discuss the impacts on schedule and cost because of change requests made by the customer
C
The best answer choice is C because you need to get control over the project. Implementing an integrated Change Control process will provide you with formal procedures to start monitoring the project. The Change Control process will include the approval process and levels necessary to make changes to the project.
You have been assigned to manage a new business improvement project. You want to ensure the right people are involved and communicated to during the project. To identify all the stakeholders who should be involved in the project, you decide to conduct a stakeholder analysis. You decide that all of the following will be included in your analysis with the exception of:
a. Those who have a direct relationship with the project
b. Everyone with a hierarchical relationship to the resource managers for the project
c. Those who can influence the project
d. Those whose interests will not be affected by the project
D
The best answer choice is D because a stakeholder analysis consists of determining those who have a relationship with the project, can influence the project, and have a vested interest in the project.
The ZM Desk implementation project is planned to take 20 months to complete for a project cost of $150,000. Currently the status at month 12 reveals the following information: PV = $90,000, EV = $120,000, and AC = $100,000. Based on this information, what is the new ETC?
a. $60,000
b. $25,000
c. $30,000
d. $50,000
B
The best answer choice is B because the formula for calculating ETC is: ETC = EAC – AC. In order to complete this calculation, EAC must be calculated with the formula of EAC = BAC / CPI. We can first determine the CPI by dividing $120,000 (EV) by $100,000 (AC). Therefore, CPI = 1.2. Using this information, we can now calculate EAC using the aforementioned formula: EAC = 150,000 / 1.2 = $125,000. Using the original formula for ETC: ETC = $125,000 – $100,000 = $25,000. This indicates that the expected cost to finish all project work is $25,000.
You are a senior project manager and have been asked to lead a team to put measures in place in support of project selection. The company’s senior management has determined that the current method of selecting projects using the payback method is inadequate. Several of the team members have opposing opinions on which decision model should be selected. You have called a meeting to discuss various decision models. Which of the following will not be discussed at the meeting?
a. Cost benefit analysis
b. Estimate at completion
c. Scoring models
d. Net present value
B
The best answer choice is B because Estimate at completion is a forecasting technique used in earned value management. It is not a project selection calculation.
You are a project manager on a project that has just received several change requests from the customer. You are preparing the scope change requests to be presented to the Change Control Board next week. At the meeting, the Change Control Board will want to know how the scope change requests will affect the project. In order to provide this information to the Change Control Board, you will:
a. Review the affect of the change by reviewing its impact to the project charter
b. Compare the work required for the change requests against the Work Breakdown Structure, along with the project schedule
c. Review the lessons learned to determine how previous changes affected project scope
d. Conduct a planning meeting with the project team to discuss the changes
B
The best answer choice is B because scope change requests affect the scope and schedule of the project. The impact to scope can be determined by reviewing the Work Breakdown Structure.
You are the project manager at a manufacturing plant. Your current project is to upgrade several of the manufacturing processes with new equipment. The timing of human resources and equipment is critical to your project. In planning your project schedule, you make two assumptions: that equipment will be delivered on time and that human resources will be made available to your project as scheduled. The assumptions you made are:
a. Considered real, true or certain
b. Project scope constraints
c. Stated as part of the project objectives
d. Factors that limit the project team options
A
The best answer choice is A because assumptions are defined as factors that are considered real, true, or certain until validated.
You are a project manager who works primarily on projects that are heavily regulated by state and federal government agencies. As a result, when planning your Schedule Management approach, you know it is critical that project stakeholders have a very clear understanding of the task relationships on your project. You decide to use:
a. A milestone chart
b. An Organizational Breakdown Structure
c. An Arrow Diagramming Method schedule
d. A project schedule network diagram
D
The best answer choice is D because project schedule network diagrams are used to show activity relationship dependencies in a pictorial manner.
The project sponsor is reviewing the schedule variances of several projects that you have been managing. The sponsor is pleased to find that the majority of the projects are ahead of schedule. What conclusion can the sponsor make about the costs associated with those projects that are ahead of schedule?
a. The projects will finish under budget
b. The projects are ahead of schedule but spending more than the budget on resources
c. No conclusions can be drawn about the costs or budgets
d. The unused budgets from the projects can be reallocated to those that are over budget
C
The best answer choice is C because schedule variances do not include cost variances.
Which of the following is an example of quality assurance?
a. Pareto diagrams
b. Team training
c. Fishbone diagrams
d. Inspection
B
The best answer choice is B as quality assurance seeks to build confidence that a future output or an unfinished output will be completed in a manner that meets specified requirements and expectations. Training the team would help prevent defects.
You are the project manager of a project to create high-precision atmospheric measurement instruments. A quality control analyst found variations in your new manufacturing process. The quality control team has been analyzing the variations for the last three weeks. To date, the analysis has not impacted the project schedule. The team found that variation is due to special causes. The most appropriate action for you to take is:
a. Ignore the variations since some variations in a process are normal
b. Identify and eliminate the sources of variation
c. Conduct a quality audit to determine the sources of variation
d. Prepare a Quality Management plan to present to the sponsor
B
The best answer choice is B because special-cause variations can be controlled. These variations can be eliminated from the process to improve quality.
You are the project manager for a pharmaceutical company. Producing quality products is very important to your company, and your customers have always associated the company name with high-quality products. As a result, the company has set a Six Sigma standard for all products. You know that the cost of nonconformance to quality can exceed the original development costs in the industry. You are preparing a report on the cost of nonconformance to quality for the project. You determine the following information will be included in your report:
a. Training doctors on the correct dosages of the drugs
b. An ongoing quality control team to continuously monitor the new drug
c. Audit the project for conformance to standards and regulations
d. The liability costs of producing and distributing a poor quality drug
D
The best answer choice is D because liability costs are costs of nonconformance to quality.
You are evaluating the defects in the current manufacturing process to determine the best approach to improve the process. You decided to include only the top 20% of the defects that appear to be causing 80% of the problems in the process improvement project. You arrive at this information by using:
a. A control chart
b. A scatter diagram
c. A cause and effect diagram
d. A Pareto diagram
D
The best answer choice is D because Pareto diagrams are used to stratify data into groups from the largest to the smallest. Such diagrams identify the most common causes or occurrences of variation in a process.
Fixed-price contracts place the most risk on the:
a. Buyer
b. Seller
c. Project Manager
d. Project Sponsor
B
The best answer choice is B because under fixed-price contracts, sellers are legally obligated to complete such contracts and face possible financial damages if they do not.
Careful inspection of goods and services produced:
a. Is the most effective way to ensure the delivery of quality products
b. Is used to determine if the deliverable conforms to the documented standards
c. Needs to be carried out only randomly
d. Should be carried out on the first 10% of produced goods
B
The best answer choice is B because an inspection is the examination of a work product to determine if it conforms to documented standards.
You have been asked to update the organizational process assets as part of closing your project. You have decided it is appropriate to include:
a. Deliverable acceptance and sign off
b. Lessons learned documents
c. Procurement documents
d. All of the above
D
The best answer choice is D because these are key elements that are part of organizational process asset updates upon closing out a project.
You have been working as the project manager on a one-year project and have decided to conduct a post-project review at the end of your project. You advise your project sponsor of your plans to do this because:
a. It provides an opportunity to look back over the life of the project and conduct a lessons learned
b. It provides an opportunity to place blame for things that did not go well on the project
c. It provides an opportunity to celebrate the successes accomplished by the project
d. It provides an opportunity for the stakeholders to conduct a detailed technical review of the project deliverables
A
The best answer choice is A because lessons learned provide information as to what has been experienced and process improvement recommendations that could be used to improve future procurements.
You are new to your organization and have been assigned as the project manager to initiate a new project. You realize one of the first things you need to do is to identify stakeholders on your project. The best approach to identifying stakeholders would be to use the following documentation:
a. Project Charter and any procurement documents
b. Project plan and communications matrix
c. Stakeholder register
d. Meeting minutes and project charter
A
The best answer choice is A because the purpose, project description, and high-level requirements that are documented in the charter are a good first place to identify people.
You are managing a project for a highly bureaucratic organization where the culture and politics are very influential in how you manage the project. In this highly bureaucratic organization, you need to make sure you have plenty of documentation as well as a Communications Management plan that takes into consideration the multiple layers of information and approvals required throughout your project. In response to this type of organizational culture, you need to:
a. Develop a comprehensive communications matrix
b. Have weekly meetings that are open to interested stakeholders
c. Provide project information in person supported by written reports
d. Develop a stakeholder management plan
D
The best answer choice is D because organizational culture and politics is highly influential in how you plan to manage stakeholder engagement on a project.
You are the project manager leading an enterprise wide project to implement a new Project Management Information System. Throughout the preliminary meetings you have held, you have discovered that there are competing needs and interests across stakeholder groups who will be using the new project management software tool. The best strategy to mitigate this situation is to:
a. Publish all scope documents so that stakeholders understand the boundaries of the project up front
b. Prioritize the functionality to be delivered based on organizational hierarchy
c. Talk to your stakeholders throughout the project to ensure a common understanding of the project scope, benefits and time and cost estimates
d. Plan the project in phases that will address all stakeholder needs
C
The best answer choice is C because engaging stakeholders early and throughout the project, so they have a common understanding, will help ensure their continued support of the project.
You are managing a software implementation project for your company, and throughout the customization phase, numerous changes have surfaced from key stakeholders. At the same time, other stakeholders are expressing their frustration with the number of changes and are becoming increasingly concerned about meeting the schedule deadline for implementation. The best thing you should do to manage these stakeholders is:
a. Schedule face-to-face meetings and employ active listening skills to build trust
b. Discuss the concerns with your project sponsor
c. Meet with your project team to define response strategies
d. Allow them to vent their frustrations
A
The best answer choice is A because in order to manage stakeholders effectively, you need to pay particular attention to their needs, promoting open communication and building trust.
You are the project manager on a project, and you are working to determine when an activity will be completed. You decide to use a weighted average (PERT). The optimistic duration is 7 days, the most likely duration is 10 days, and the pessimistic duration is 16 days. What is the PERT weighted average for the activity duration?
a. 10.5
b. 11.2
c. 9.5
d. 8.7
A
The best answer choice is A based on the following PERT formula: Optimistic + (4). Most likely + Pessimistic / 6. Therefore, 7 + 40 + 16 / 6 = 10.5.
You are the project manager for the installation of the new customer relationship management software for your company. The project has been proceeding successfully; however, you have begun to notice that key decision makers on your project have not been present at the last three meetings. The best thing you should do is to:
a. Document this as an issue in the issues log and monitor it closely
b. Meet with these stakeholders to determine their support for the project and see how you can get them actively engaged in the project again
c. Discuss the issue in a team meeting and seek input from resolution strategies
d. Discuss the issue with your project sponsor since he or she should be informed of any issues on the project
B
The best answer choice is B because controlling stakeholder engagement involves revisiting the Stakeholder Management plan and comparing it with work performance data to determine whether the plan is having the intended effect or whether you need to find more effective ways to engage the project stakeholders.
As a project manager, you have learned that good Risk Management practices help you understand what risks should or can be mitigated on projects. You heard that you might eventually be assigned to a new project that requires procuring vendors to provide key deliverables for the project. The procurement office in your organization has proceeded with the necessary steps to finalize the contract process. You express concern that a contract should not be finalized before a project manager is assigned to the project. Your rationale is that:
a. Contracts are one way to help manage risks and should not be created before a project manager is assigned
b. You need to understand all detailed aspects of the project so it can be properly planned
c. You have not had a chance to review the project charter
d. You have not been involved in the creation of the SOW
A
The best answer choice is A because the project manager is considered the authority on project risks and can greatly assist in making the contract appropriate to the project.
You are the project manager assigned to a very complex project that spans geographical territories. You rarely have the chance to meet with your sponsor face to face. You recently realized that much of the communications you provide via telephone is not interpreted properly. You realize this is a problem of:
a. Encoding
b. Decoding
c. Transmitting
d. Receiving
B
The best answer choice is B because decoding is interpreting the message that has been sent.
