Questions Dump 2 Flashcards
Project Management Office (PMO), which is a centralized organizational unit to oversee and coordinate the management of projects and programs under its domain throughout the organization, has all of the following functions EXCEPT:
A. Identify and develop the organization’s methodology, administrative practices, guidelines, policies, procedures, and rules.
B. Establish and maintain templates, policies, procedures, best practices, and standards for project management methodologies.
C. Monitor compliance with organizational project management processes, policies, procedures, and other items.
D. Be involved heavily during project initiation as a key decision maker and integral stakeholder to make recommendations, prioritize projects, terminate projects, or take other actions as required.
Answer: A
Explanation: The PMO identifies and develops the project management methodology, best practices, policies, procedures, and standards, but not the organizational methodology, administrative practices, guidelines, policies, procedures, and rules.
What is the name of PMI’s organization maturity model for project management that helps to determine the level of ability of an organization to deliver the desired strategic outcomes in a reliable, controllable, and predictable manner?
A. ISO 9000
B. OPM3
C. Project Management Maturity Model (PMMM)
D. Six Sigma
Answer: B
Explanation: OPM3 is the PMI’s organizational project management maturity model. This model helps to determine the level of ability of an organization to deliver the desired strategic outcomes in a reliable, controllable, and predictable manner.
Which one of the following PMO structures mostly provides guidelines, policies, and templates and requires compliances and usually has a moderate level of control over projects and programs?
A. Supportive
B. Controlling
C. Directive
D. Constructive
Answer: B
Explanation: The controlling PMO provides guidelines, policies, and templates and requires compliances. This type of PMO usually has a moderate level of control over projects and programs.
Which one of the following is TRUE about power of the project managers in different organizational structures?
A. In a project-oriented organization, the project manager has no real authority and power.
B. A strong matrix maintains many characteristics of project-oriented organization, where much of the authority rests with the project manager.
C. In a weak matrix, the authority is shared between the functional manager and the project manager; the project manager does not have full authority over the project and its funding.
D. A balanced matrix maintains many characteristics of a functional matrix; the project manager role is like that of a coordinator or expeditor (communication coordinator or staff assistant) than that of a true project manager.
Answer: B
Explanation: The authority of the project manager varies greatly depending on the organizational structure. In a project-oriented organization, the project manager has almost total authority. A strong matrix maintains many characteristics of project-oriented organization where much of the authority rests with the project manager. In a balanced matrix, the authority is shared between the functional manager and the project manager; the project manager does not have full authority over the project and its funding. A weak matrix maintains many characteristics of a functional organization; the project manager role is like that of a coordinator or expeditor (communication coordinator or staff assistant) than that of a true project manager. In a functional organization, the project manager has no real authority and power.
Which one of the following PMO structures mostly serves as a project repository, plays a consultative role, and usually has a low level of control over projects and programs?
A. Supportive
B. Controlling
C. Directive
D. Constructive
Answer: A
Explanation: A Supportive PMO mostly serves as a project repository and plays a consultative role. This type of PMO usually has a low level of control over projects and programs.
You are overseeing the implementation of the internal website of your organization to view the company’s event calendar. Your role is to coordinate activities, resources, equipment, and information on the project, but you have limited authority in making project decisions and have to negotiate with the functional manager to get required resources for your project. Which kind of organization are you working in?
A. Balanced matrix
B. Composite structure
C. Weak matrix
D. Strong matrix
Answer: C
Explanation: You are working in a weak matrix organization. Your role is of a project expeditor or project coordinator where you mostly act as a staff assistant and communication coordinator with limited authority and have no control over the project’s budget. You have to negotiate with the functional manager to get needed resources for the project.
Which one of the following is NOT true about functional organizational structure?
A. Project work is considered to be priority work in all functional groups.
B. Similar resources are grouped by specialists.
C. The project manager has little or no authority and could even be part time.
D. Multiple projects compete for limited resources and priority.
Answer: A
Explanation: In a functional structure, similar resources are grouped by technical expertise and are assigned to one supervisor. Team members give more importance to their functional responsibility to the detriment of the project.
All of the following are examples of Organizational Process Assets EXCEPT:
A. Organizational policies, procedures, and guidelines for any area such as safety, ethics, risk, financial, change control, reporting, and others.
B. Existing facilities and infrastructure.
C. Templates for common project documents such as WBS, network diagram, SOW, and contract.
D. Historical information and past lessons learned.
Answer: B
Explanation: Enterprise Environmental Factors are things that impact the project but are not part of the project itself. Existing facilities and infrastructure are Enterprise Environmental Factors.
The level of power and authority of a project manager may fluctuate due to various factors. Typically, how much power and authority a project manager will have depends on which of the following?
A. The organizational structure
B. The negotiation skills of the project manager
C. Project management knowledge and technical competency of the project manager
D. The relationship of the project manager with senior management, especially with the sponsor
Answer: A
Explanation: The authority of the project manager varies greatly depending on the organizational structure. In a project-oriented organization, the project manager has almost total authority. A strong matrix maintains many characteristics of project-oriented organization where much of the authority rests with the project manager. In a balanced matrix, the authority is shared between the functional manager and the project manager, and the project manager does not have full authority over the project and its funding. A weak matrix maintains many characteristics of a functional organization; the project manager’s role is like that of a coordinator or expeditor (communication coordinator or staff assistant) than that of a true project manager. In a functional organization, the project manager has no real authority and power. Relationship, negotiation skills, and technical ability may affect the level of authority in some organizations, but managerial structure is generally the major factor.
You are managing a group of related or unrelated projects or programs and other works to achieve specific strategic business objectives and goals. You are a:
A. Program owner
B. Project manager
C. Program manager
D. Portfolio manager
Answer: D
Explanation: A portfolio can be generally described as a group of projects or programs and other works to achieve a specific strategic business goal. The programs may not be related other than the fact that they are helping to achieve the common strategic goal. A portfolio manager is usually assigned to manage these groups of projects, programs, and other works. Portfolio management encompasses identifying, prioritizing, authorizing, managing, and controlling the collection of projects, programs, other work, and sometimes other portfolios to achieve strategic business objectives. For example, a construction business has several business units such as retail, single and multifamily residential, and others. Collectively, all the programs, projects, and work within all of these business units make up the portfolio for this construction business.
As a project manager in a balanced matrix organization, what type of authority you have?
A. Low to moderate
B. Little to none
C. High to almost total
D. Moderate to high
Answer: A
Explanation: A project manager has a low to moderate authority in a balanced matrix organization.
The management framework within which project decisions are made is called:
A. Project Management Information System (PMIS)
B. Configuration management system
C. Project management plan
D. Project governance
Answer: D
Explanation: Project governance is the management framework within which project decisions are made. The role of project governance is to provide a decision-making framework that is logical, robust, and repeatable to govern an organization’s capital investments. This framework provides the structure, processes, decision-making models, and tools to the project manager and team for managing the project. It also provides the team a comprehensive, coherent method of controlling the project and helps safeguarding project success by defining, documenting, and communicating reliable, repeatable project practices. The PMIS consists of the data sources and tools & techniques used to gather, integrate, analyze, and disseminate the results of the combined outputs of the project management processes. It is an automated system that can serve as a repository for information and a tool to assist with communication and with tracking documents and deliverables. The PMIS also supports the project from beginning to end by optimizing the schedule and helping collect and distribute information. The Configuration Management System is the subset of the Project Management Information System (PMIS) that describes the different versions and characteristics of the product, service, or result of the project and ensures accuracy and completeness of the description. The Project Management Plan is a single-approved document that defines how the project is executed, monitored and controlled, and closed
Which one of the following is NOT a planning process?
A. Create WBS
B. Perform Qualitative Risk Analysis
C. Estimate Costs
D. Develop Team
Answer: D
Explanation: Develop Team is a process in the Executing Process Group. All three remaining processes belong to the Planning Process Group.
Steve has been overseeing a project to implement a new wireless media streaming device for a local networking company. The team has completed all the technical work in the project. The senior management asked Steve to report on the remaining activities in the project. Which one of the following will Steve report as the remaining work?
A. Completion of the lessons learned
B. Validation of the Project Scope
C. Completion of the Quality Management Plan
D. Completion of Risk Response Planning
Answer: A
Explanation: The lessons learned are usually done once the work is completed in the project. The Quality Management Plan and the Risk Response Plan are created during the Planning Process Group. The Validate Scope process is done, not during closing, but in the Monitoring & Controlling Process Group.
You just finished creating your project charter. Which of the following will NOT be included in the charter?
A. Detailed work package descriptions
B. High-level roadmap and milestones
C. Assumptions and constraints
D. Authority level of the project manager
Answer: A
Explanation: High-level roadmap and milestones, assumptions and constraints, and authority level of the project manager should be included in the Project Charter. A Project Charter is created during Initiating Process Group, but a Project Scope Statement is created during Planning Process Group. The Scope Baseline will have the Project Scope Statement, WBS, and details on WBS work packages.
While working in the Initiating Process Group, you are mainly focusing on creating a Project Charter and a Stakeholder Register. You will use all of the following as inputs EXCEPT:
A. Organizational values and work ethics
B. Project scope statement
C. Configuration management knowledgebase
D. Historical information and past lessons learned
Answer: B
Explanation: Organizational Process Assets such as configuration management knowledgebase, historical information, and past lessons learned as well as Enterprise Environmental Factors such as organizational values and work ethics are inputs in Initiating Process Group. Project Scope Statement is an output of the Planning Process Group
Which one of the following is NOT a component of a change request?
A. Corrective actions
B. Preventive actions
C. Defect repairs
D. Issue Log
Answer: D
Explanation: A change request consists of corrective actions, preventive actions, and defect repairs. Corrective actions are taken to bring expected future performance of the project work in line with the project management plan. Preventive actions are taken to reduce the probability of risk items in the project. Defect repairs are taken to repair defects or entirely replace components that are faulty or dysfunctional. An issue is an obstacle that threatens project progress and can block the team from achieving its goals. An issue log is a written log to record issues that require solutions. It helps monitor who is responsible for resolving specific issues by a target date.
Last week you submitted 5 new change requests to the Change Control Board (CCB). After exploring different options, the board approved 3 of the change requests. Approved change requests will be inputs to which process group?
A. Initiating
B. Planning
C. Executing
D. Closing
Answer: C
Explanation: You will be coming up with change requests both in the Executing and Monitoring and Controlling Process Groups. These change requests will be an input to the Perform Integrated Change Control process in the Monitoring and Controlling Process Group. Approved change requests from the Perform Integrated Change Control process are fed back into the Direct and Manage Project Work process for implementation in the Executing Process Group.
Your team is very devoted to the project and can’t wait to move on to the next phase of the project. What is the most important factor to make sure prior to moving on to the next phase?
A. Making sure that you have sufficient fund for the next phase.
B. Verifying that the current phase satisfied its objective and stakeholders formally accepted its deliverables.
C. Making sure that you have all the resources you need for the next phase.
D. Confirming that there will be no negative stakeholders in the next phase.
Answer: B
Explanation: A project phase must be formally closed by meeting its objective and by receiving the formal acceptance on its deliverables prior to moving on to the next phase.
While managing a complex project, you realize that the processes of a certain Process Group occur simultaneously as the processes of all remaining 4 process groups. You are referring to:
A. Monitoring and controlling
B. Closing
C. Executing
D. Planning
Answer: A
Explanation: Monitoring and controlling is something we are continuously doing in a project. Don’t get confused thinking that we monitor and control only after executing.
A project is just initiated under a contract in your organization, and you were assigned as the project manager. You were expecting a Statement of Work (SOW), which will describe the business need, product scope, and other elements. In this case, from whom should you expect the SOW?
A. The project sponsor
B. The buyer
C. The contractor
D. The Project Management Office (PMO)
Answer: B
Explanation: Usually the buyers come up with the SOW in a project that is initiated by a contract.
While managing a data center project, you used a Configuration Management System to describe the different versions and characteristics of the product, service, or result of the project and to ensure the accuracy and completeness of the description. All of the following are configuration management activities in the Integrated Change Control process EXCEPT:
A. Configuration verification and audit
B. Configuration identification
C. Forecasting and variance analysis
D. Configuration status accounting
Answer: C
Explanation: Configuration management activities in the Integrated Change Control process are configuration identification, configuration status accounting, and configuration verification and audit.
You are a project manager at a dairy farm that offers several dairy products to its clients in different states, especially on the West Coast. You have sent a few of your team members to China to get specialized training on a spectacular dairy food processing equipment recently introduced in the market. The team members just completed the training, and this is one of the work results you have collected and recorded. This output describes which of the following in the Direct and Manage Project Work process?
A. Deliverables
B. Work Performance Data
C. Change requests
D. Project Management Plan update
Answer: A
Explanation: This output describes a deliverable. Note that deliverables can be intangibles, such as the completion of a training program.
All of the following statements are true regarding assumptions EXCEPT:
A. Assumptions are factors used for planning purposes and may be communicated to a project team by several different stakeholders.
B. Assumptions are generally considered to be true, real or certain, and nonfactual
C. Assumptions are absolute and nonnegotiable.
D. A Failure to validate assumptions may result in significant risk events.
Answer: C
Explanation: Assumptions are not based on factual information, and failure to validate may result in significant risk events. Assumptions are documented mostly during the project initiating and planning processes. These assumptions are not absolute and can be negotiable.
You are one of the members of the project prioritization and selection committee in your organization. The selection team is debating between two projects, which are both considered to be very important. The organization has to make an initial investment of $250,000 with expected cash inflows of $75,000 in the first year and $25,000 per quarter thereafter for the first project. The second project has a payback period of thirty-five months. Based solely on this information, which project should the selection committee recommend?
A. First project as it has a smaller payback period
B. Second project as it has a smaller payback period
C. None of them since both of them have the same payback period
D. Either of the two projects since payback period is not important
Answer: A
Explanation: 1. The first project will have the cash inflows of $75,000 in the first twelve months, and for the rest of the investment ($250,000– $ 75,000 = $175,000) it will take seven quarters to recapture it; thus, for the first project, the total payback period is 12 + 21 (each quarter has three months; thus, seven quarters have 7 * 3 = 21 months) = 33 months. The first project has a smaller payback period than that of the second project; thus, we should select the first project.
You are the project manager for a cable service provider that is providing Internet, TV, and phone service throughout the United States. Your company recently introduced its service in Canada and made you the project manager for a critical project, which is two months in execution at this time. You are reporting on project elements such as deliverable status, schedule progress, resource utilization, costs incurred, and others. Which of the following outputs of the Direct and Manage Project Work does this describe?
A. Deliverables
B. Work Performance Data
C. Change requests
D. Project Management Plan update
Answer: B
Explanation: Work Performance Data describes how far along a deliverable is and how it is progressing against the plan. It can include several work performance data of interest, such as deliverable status, schedule progress, resource utilization, costs incurred, and quality standards.
While managing a large construction project, you are ready to assign resources to the project using a work authorization system. All of the following statements are true about a work authorization system EXCEPT:
A. It is a formal, documented procedure to describe how to authorize and initiate work in the correct sequence at the appropriate time
B. It is a tool & technique of the Monitor and Control Project Work process.
C. It is a component of the enterprise environmental factors, which are inputs in the Monitor and Control Project Work process.
D. It is used throughout the project executing process.
Answer: B
Explanation: A Work Authorization System is not a tool & technique of the project monitoring & controlling process. It is a subset of the Project Management Information System (PMIS) and is considered a component of the Enterprise Environmental Factors, which are inputs in the Monitor and Control Project Work process. It is a formal, documented procedure to describe how to authorize and initiate work in the correct sequence at the appropriate time and is used throughout the executing process group.
You are working as a project manager at a consulting firm and recently received a Statement of Work (SOW) from the client. As per your expectation, the SOW should contain or reference which of the following elements?
A. Business need, product scope description or what is to be done, and how the project supports the strategic plan
B. Measurable project objectives, business need, product scope description or what is to be done, and how the project supports the strategic plan
C. Project purpose, business need, product scope description or what is to be done, and how the project supports the strategic plan
D. Business need, product scope description or what is tobe done, and project purpose
Answer: A
Explanation: The project SOW should contain the business need, product scope, and strategic plan.
You are the project manager for ITPro Consultancy. You have a project in mind that will be able to meet the strategic objective of your organization. While evaluating the project, your team found out that the project would cost $600,000. Since you are introducing a new potential product in the market, you are very hopeful that your expected inflows will be $30,000 per quarter for the first two years and then $90,000 per quarter thereafter. What is the payback period of this project?
A. Thirty-six months
B. Thirty-eight months
C. Forty-eight months
D. Fifty-two months
Answer: A
Explanation: The cash inflow is $30,000 per quarter, so in the first year the project will get back $120,000 in four quarters. In the first two years, the project will have a return of $240,000. The remaining investment will be $600,000 – $ 240,000 = $360,000. It will take four quarters or twelve months to have it back at a rate of $90,000 per quarter in the third year. The total amount of time it will take to get the entire investment back will be 24 months + 12 months = 36 months, or three years.
While managing a data recovery project, you are performing the following activities: comparing actual project performance against the project management plan, analyzing, tracking, monitoring project risks, assessing performance to determine whether any corrective or preventive actions are required, providing information to support status reporting, monitoring implementation of approved changes, providing forecasts to update current costs and schedule information, and other things. Which process are you in at this time?
A. Manage Stakeholder Expectations
B. Monitor and Control Risks
C. Direct and Manage Project Work
D. Monitor and Control Project Work
Answer: D
Explanation: All these activities are performed in the Monitor and Control Project Work process.
Your company can accept one of three possible projects. Project A has a Net Present Value (NPV) of $30,000, it will take five years to complete, and the associated cost will be $10,000. Project B has a NPV of $60,000, it will take three years to complete, and the cost will be $15,000. Project C has a NPV of $80,000, it will take four years to complete, and it will cost $40,000. Based on the information, which project would you pick?
A. They all have the same value
B. Project A
C. Project B
D. Project C
Answer: D
Explanation: The number of years and cost are not relevant as they are accounted for in the calculation of Net Present Value (NPV). You simply select the project with the highest NPV; in this case, it is Project C that has a NPV of $80,000.
A project manager for a pharmaceutical project is reviewing the project contract and going through the narrative description of products and services to be supplied under the contract. He is meeting with subject matter experts, key stakeholders, and business analysts to evaluate whether or not the project is worth the required investment of $1 million. He also asked the team members to carry out a feasibility study on the project and report to him the findings as soon as possible. Which of the following documents would be created as an output in the process?
A. Project Management Plan
B. Project Statement of Work
C. Project Charter
D. Requirements Documentation
Answer: C
Explanation: The project manager is in the Develop Project Charter process in Project Integration Management. The output of this process is a Project Charter, which is used to formally initiate a project. In this case, the project manager is using a Statement of Work (SOW) to understand the product requirements and descriptions. The project will be initiated under the contract, and the SOW was given to the project manager by the client.
All of the following statements regarding Integration Management are true EXCEPT:
A. The need for Integration Management is one of the major driving forces for communication in a project.
B. Project integration is a key responsibility of the project team.
C. The project manager’s role as an integrator is to put all the pieces of a project into a cohesive whole.
D. Project Integration Management is the set of combined processes implemented by the project manager to ensure all the elements of the project are effectively coordinated.
Answer: B
Explanation: Project integration is a key responsibility of the project manager.
The Scope Management Plan, Schedule Management Plan, Schedule Baseline, Process Improvement Plan, Change Management Plan, and others are which one of the following to the project plan?
A. Subsidiaries
B. Appendixes
C. Constraints
D. Glossary
Answer: A
Explanation: The subsidiary plans are usually included to support the overall project management plan and are developed for the purpose of providing more detailed information, guidelines, and control processes for specifically defined project elements or planning components. These are the outputs of some of the other planning processes associated with scope, time, cost, quality, human resources, communications, risk, procurement, and stakeholder management. Additional plans such as change management, process improvement, and configuration management plans, can also be added to the project management plan.
You are working on a construction project and successfully completed all the work. Your stakeholders were very pleased and recently communicated their final acceptance of the project. You are now meeting with your team to update the organizational process assets with a record of knowledge gained about the project to help future project managers with their projects. Once the lessons learned is completed, what should you do next?
A. Release the team.
B. Close the contract.
C. Get formal acceptance.
D. Write lessons learned.
Answer: A
Explanation: You should release the team once the lessons learned are documented and added to the organizational process assets. Most contracts have payment terms that allow for some period of time before full payment is required; thus, the last thing you do on the project is close the contract. When closing the project, the order should be get formal acceptance, write lessons learned, release the team, and close the contract.
Your cyber security implementation project has a Schedule Performance Index (SPI) of 1.2 and Cost Performance Index (CPI) of 1.3. Now that you are ahead of schedule and under budget, you can add work without delaying your project or exceeding the budget. You realized that throughout the project, your team made several mistakes and ignored few best methods for securing the network and preventing various types of attack. Your sponsor was very disappointed that a Denial of Service (DOS) attack was carried out against your organization recently. You tried to identify information on similar mistakes from previous projects but failed to identify any relevant Lessons Learned Register. You decided to develop a Lesson Learned Register that you need to update:
A. At the completion of the entire project
B. At the completion of each phase
C. Bi weekly
D. Throughout the project
Answer: D
Explanation: A live document such as Lesson Learned Register should be regularly updated throughout the project for the benefit of the entire organization. It should be an excellent source of information on mistakes and areas for improvements for current and future similar projects.
You are in the Close Project or Phase process of your construction project. All of the following occur during this process EXCEPT:
A. Confirm work completion to requirements
B. Determine the Net Present Value of the project
C. Gain formal acceptance of the product
D. Hand off completed product
Answer: B
Explanation: Determining the Net Present Value (NPV) is done during the Develop Project Charter process in the initiating phase, not during the Closing Project or Phase process.
Product scope describes the features, functions, and physical characteristics that characterize a product, service, or result. Completion of the product scope is measured against which one of the following?
A. Scope statement
B. Project requirements
C. Project objectives
D. Product requirements
Answer: D
Explanation: Completion of the product scope is measured against the product requirements to determine successful fulfillment. The project requirements, project objectives, and the Project Scope Statement are associated with project scope.
As per the project manager’s instruction, the team has decomposed project deliverables and project work into smaller, more manageable components to develop a WBS and WBS dictionary. The team finalized the WBS by establishing control or cost accounts and unique identifiers for the lower-level components of the WBS called work packages. Normally presented in the chart form, this WBS provides a structure for hierarchical summation of:
A. Cost and schedule information
B. Cost and requirements information
C. Cost, resource, and schedule information
D. Schedule and requirements information
Answer: C
Explanation: A Work Breakdown Structure (WBS) is the foundational block to the initiating, planning, executing, monitoring & controlling, and closing phases. Normally presented in chart form, it is a deliverable-oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables. It provides a structure for hierarchal summation of cost, schedule, and resource information.
A project manager managing a data center project had the opportunity to attend several meetings about the project prior to the creation of the project charter. In one of the meetings, the sponsor specifically denied funding for two very specific items. Two months into the project, a couple of stakeholders requested the project manager add work for one of the items that was strongly denied by the sponsor. What will be the best thing the project manager can do in this situation?
A. Add the work if it does not have much impact on the schedule.
B. Inform the stakeholders that the work cannot be added.
C. Evaluate the impact of adding the work on time, cost, quality, risk, human resource, and other elements.
D. Immediately inform the sponsor about the request that was denied by him.
Answer: B
Explanation: The most appropriate thing to do in this kind of situation is to find out the root cause of the problem, but the option is not presented here. Based on the information provided, there is no reason to find out the details and try to convince the sponsor to add the work (C & D). The project manager should inform the sponsor, but the best course of action will be to inform the stakeholders that the work could not be added. Even though there is no impact on the schedule, there may be impact on other areas. A project manager should not implement a change request without performing an impact analysis and must get the approval for the change from the Change Control Board.
Verified deliverables are inputs in which of the following scope management processes?
A. Define Scope
B. Create WBS
C. Validate Scope
D. Control Scope
Answer: C
Explanation: Verified deliverables are the deliverables that have been completed as per the documented scope and checked for defects by the project team members in the Control Quality process. These deliverables are inputs in the Validate Scope process and are given to the customers and stakeholders for their acceptance.
All of the following are true regarding the Control Scope process EXCEPT:
A. It assures that underlying causes of all requested changes and recommended corrective actions are understood and processed through the Integrated Change Control process.
B. One of the key focuses in the process may be dispute resolution related to project scope.
C. It monitors the status of the project and product scope, maintains control over the project by preventing overwhelming scope change requests, and manages changes to the scope baseline.
D. It verifies the correctness of work results.
Answer: D
Explanation: Verifying the correctness of work is associated with the Control Quality process.
Your project is approaching completion, and you were able to release some of the team members from the team to be assigned to other projects. Your team has successfully resolved all the issues in the issue log except for one, which will be fixed in the next version of the application as per the agreement with the client. You are ahead of schedule but $3,500 over budget due to an unexpected price increase for one of the major pieces of equipment. Your team also successfully performed quality control inspections and met quality requirements for all of the items except one. You called a meeting and requested the client for product verification, and surprisingly the client mentioned that they wanted to make a major change to the scope. In this situation, the project manager should:
A. Immediately inform management about this surprising new change.
B. Have an urgent meeting with the team members to explore the feasibility of making the change.
C. Inform that it is too late now to make a major change.
D. Request the client for a description of the change.
Answer: D
Explanation: Note that in this kind of situation you should always try to gather as much information as possible if the time allows. You simply should not say no without knowing the details of the change and its possible impact on the project (C). The client only mentioned that they wanted a change but did not provide you with any description of it. You may inform management (A) and also have a meeting with the team if their inputs are needed (B) but not before understanding what the change is all about.
Your company, ITPro Consultancy, has assigned you as the project manager to upgrade the call center in your organization. The number of calls the customer support agents have to answer each month has increased drastically in the last five months, and the phone system is approaching the maximum load limit. Your team has worked on the requirements document and the Project Scope Statement, and you are now ready to create the WBS with the help of your team members. All of the following are true regarding the WBS EXCEPT:
A. The WBS represents all the work required to be completed in the project.
B. Each level of the WBS represents a verifiable product or results.
C. Activities in the WBS should be arranged in the proper sequence they will be performed.
D. The WBS should be decomposed to a level called the work package level where cost and schedule can easily be calculated.
Answer: C
Explanation: Note that we do not usually include the activities in the WBS, especially for the large projects, even though we decompose the WBS work packages to get our activities during the Define Activities process in time management. Once the activities are defined, sequencing is done in the Sequence Activities process. Note that WBS has no particular sequence to it.
The sponsor has recently assigned you as a project manager to design and develop a custom video conferencing tool. As per the sponsor, the project must be completed in four months and should integrate with the existing infrastructure and applications in the organization. This is an example of which of the following?
A. Constraints
B. Assumptions
C. Expert judgment
D. High-level planning
Answer: A
Explanation: Constraints specify the limitations and restrictions, such as constraints on time, budget, scope, quality, schedule, resources, and technology that a project faces. By specifying a time limit and technology compliance, the sponsor is limiting the options for the project.
All of the following are TRUE about the Validate Scope process EXCEPT:
A. Customer acceptance of the project deliverables is a key output of this process.
B. It is an input to the Develop Project Management Plan process and an outputof the Control Quality process
C. It should be performed at the end of each phase of the project.
D. This process is closely related to the Control Quality process.
Answer: B
Explanation: The output of the Validate Scope process is the customer acceptance of the project deliverables. This process is performed during the monitoring & controlling process group. To get approval of the phase deliverables, it is done at the end of each project phase in addition to other points to get approval for the interim deliverables. Both the Control Quality and Validate Scope processes can be performed simultaneously, but Control Quality is usually performed prior to Validate Scope. Control Quality verifies correctness of the work, whereas Validate Scope confirms completeness. Control Quality is focused on measuring specific project results against quality specifications and standards, whereas Validate Scope is mainly focused on obtaining acceptance of the product from the sponsor, customers, and other stakeholders. It is not an input to the Develop Project Management Plan or an output of the Control Quality process.
A project manager is in the Control Scope process of monitoring the status of the project and product scope, maintaining control over the project by preventing overwhelming scope change requests, and managing changes to the scope baseline. Which one of the following is NOT true about this process?
A. The Control Scope process must be integrated with other control processes.
B. It should be performed prior to scope planning.
C. Variance analysis is used as a tool & technique in this process.
D. Work Performance Information and Change Requests are the key deliverables in this process.
Answer: B
Explanation: Scope planning should be performed prior to the Control Scope process. A change in one control process impacts the others; thus, the Control Scope process is integrated with other control processes.
Your project to build a new substation to supply power to a newly developed industrial park is not going too well. You are overwhelmed with numerous issues in the project and got really frustrated when the city conducted an inspection and reported a building code violation. You were asked by management to ensure full compliance to the mandatory city and construction industry standards. At this time, you are also approaching the final deadline of the project in two weeks. You have identified a couple of changes that will drastically enhance performance and make your clients very happy. While trying to sort all these messes out, you received a call from the senior engineer informing you that he would be leaving the company soon. Which is the MOST critical issue you should address first?
A. Notify the customers about the possible delay in the project.
B. Initiate the change control process to implement new changes.
C. Find a replacement for the senior engineer.
D. Ensure compliance with the city and construction industry standards.
Answer: D
Explanation: A project manager is responsible for prioritizing the most critical issue to concentrate on. The situation here does not really specify whether the senior engineer is playing a vital role in the project or not. “Gold Plating,” or giving customers extra, is not actually required in the project. The project manager should evaluate the current situation and then determine if the project will require additional time or not to complete. The most critical item for the project manager is to ensure full compliance with the city and construction industry standards.
Sarah, a project manager, is in the Define Scope process of developing a comprehensive, detailed description of the project and product. Which of the following is NOT a tool & technique used in this Define Scope process?
A. Interpersonal and Team Skills
B. Product Analysis
C. Decision Making
D. Inspection
Answer: D
Explanation: Inspection is used as a tool & technique in the Validate Scope process, not in the Define Scope process.
You have been selected as the project manager for a major data center upgrade at your company headquarters. The sponsor has handed you a Project Charter and wished you best of luck. What should you do next as the first step?
A. Instruct the team to work on a Project Scope Statement.
B. Instruct the team to work on the WBS.
C. Review the charter and make sure that all key stakeholders have inputs into the scope.
D. Start working on planning the project.
Answer: C
Explanation: You should review the Project Charter and make sure that you have inputs from all key stakeholders in order to avoid confusion and unnecessary change requests in the future. You should then concentrate on creating the Project Scope Statement, the WBS, and the project plan.
Walkthroughs, reviews, product reviews, and audits are examples of which one of the following methods of examining work or a product to determine whether it conforms to documented standards or not?
A. Observation
B. Verification
C. Inspection
D. Decision Making Techniques
Answer: C
Explanation: Inspection includes activities such as measuring, examining, and verifying to determine whether work and deliverables meet requirements and product acceptance criteria. Inspections are sometimes called walkthroughs, reviews, product reviews, and audits.
You are overseeing a project to implement a web-based traffic monitoring system. You have requested three programmers, three database developers, and two testers; senior management only approved five team members for your project. Which one of the following may you use to produce a resource-limited schedule by letting the schedule slip and cost increase in order to deal with a limited amount of resources, resource availability, and other resource constraints?
A. Resource Leveling
B. Fast-Tracking
C. Crashing
D. Critical Path Method
Answer: A
Explanation: Resource leveling is used to produce a resource-limited schedule by letting the schedule slip and cost increase in order to deal with a limited amount of resources, resource availability, and other resource constraints. It can be used when shared or critically required resources are only available at certain times, are in limited quantities, or when resources have been over allocated. Fast- tracking is the technique of doing critical path activities in parallel when they were originally planned in series. Crashing is the technique of adding additional resources to a project activity to complete it more quickly. The critical path is the longest path through a network diagram and determines the shortest time to complete the project as well as any scheduling flexibility. It is not the project schedule, but it indicates the time period within which an activity could be scheduled considering activity duration, logical relationships, dependencies, leads, lags, assumptions, and constraints.
Steve is the project manager for a construction project to convert an old nursing home into a new multistory office complex. The architectural design and site surveys are completed, and Steve is now waiting for the clearance and permit from the city to start the construction. This is an example of which kind of dependency?
A. Mandatory dependency
B. Internal dependency
C. External dependency
D. Discretionary dependency
Answer: C
Explanation: External dependencies are driven by circumstances or authority outside the project and must be considered during the process of sequencing the activities. Internal dependencies are based on the needs of the project and are mostly under the control of the project team. Mandatory dependencies are mandatory and unavoidable dependencies that are inherent in the nature of the work or are contractually required. They are like laws of nature and are also called “hard logic.” Discretionary dependencies are also called “preferred logic” or “soft logic” as they are the preference of the project planner and the team members. These dependencies may be determined by best practices or by local methodology and may vary from project to project.
Your team has been working with the WBS for a while and has completed the decomposition of the work packages. After a week, the team finalized the estimates of all activities and completed the network diagram. Which of the following activities will be the next to concentrate on for the project manager?
A. Develop a preliminary schedule and get the approval from the team members
B. Finalize the Project Scope Statement
C. Use the precedence diagramming method for sequencing the activities
D. Develop the risk management plan and add it to the total Project Management Plan document
Answer: A
Explanation: The project manager should now focus on developing the preliminary schedule and get the approval from the team members. Finalizing the Project Scope Statement should have been completed prior to completing the WBS. The team members have completed the network diagram, which suggests that the activities sequencing is also completed. Since the project schedule is an input to risk management, developing the risk management plan should be done once the schedule is completed.
Which of the following is FALSE about analogous estimating?
A. It measures the project parameters such as budget, duration, size, complexity, and duration based on the parameters of a previous similar project and historical information.
B. It is usually done during the early phase of the project when not much information is available.
C. It uses a bottom-up approach.
D. It usually is the overall project estimate given to the project manager from management or the sponsor.
Answer: C
Explanation: Analogous estimates take a top-down approach, and the overall project estimate is usually given to the project manager from the management or the sponsor. It is usually done during the early phase of the project when not much information is available. It is less accurate even though it is less costly and less time consuming. In a bottom-up approach, one estimate per activity is received from the team members.
You recently took over a project from another project manager. While reviewing the network diagram, you find that there are four critical paths and three near-critical paths. What can you conclude about the project?
A. The project will likely be completed on time and within budget.
B. The project is at high risk.
C. The project will require more people and additional budget.
D. The project should be terminated.
Answer: B
Explanation: The project is definitely at high risk because activities on critical path and near critical path can be delayed anytime causing the entire project to be delayed. Having more than one critical path and several near-critical paths does not necessarily mean that more resources and additional budget will be required to complete the project. There is no valid reason to terminate the project just because it is at high risk of schedule delay.
You are overseeing a data center project for one of your clients. The team members have finished creating the Work Breakdown Structure (WBS) and Work Breakdown Structure Dictionary. The team members also submitted their activity duration estimates to you. Recently, you came up with the project estimate by adding estimates for all activities from the team members. What did you do wrong in this case?
A. The estimates should be coming from senior management
B. The project estimate should be the same as the required completion date from the customer
C. You didn’t use a Network Diagram
D. You should come up with the estimates for all activities by yourself
Answer: C
Explanation: As a project manager, you should not be coming up with individual activity estimate. The team members will be working on the activities and should come up with the estimates for their activities. Estimates should also not be coming from senior management or customers but they may let you know their expected completion date for the project. You will be able to identify that some activities may take place concurrently by refrying to your Network Diagram. If you just add up all the activity estimates without considering the sequence and concurrent activities, your estimate will not be correct.
Your project sponsor is extremely disappointed with the project as it is over budget by $20,000 and also behind schedule by several weeks. The sponsor has asked you to take care of the situation immediately. While desperately exploring different options to shorten the project duration, you realize that you have no access to additional resources. Your team took care almost all of the risk items and currently you have only discretionary dependencies. As a project manager, what will be your best course of action?
A. Remove a big activity from the project
B. Remove resources from an activity
C. Add additional resources to complete remaining activities faster
D. Fast track the project
Answer: D
Explanation: Removing an activity may save you time but your customer will be very unhappy if you do so. Removing resources will not really save you any time. You can’t add additional resources as you have no access to it. Since most of the risk items are closed and you have discretionary or preferential dependencies, you should be fast-tracking or working on some of the activities concurrently.
The project manager and the team members have just finished working on the WBS and have almost finalized the project schedule. The project manager is also planning to start working on the project budget. Which document will be used for planning, estimating, budgeting, and controlling costs so that the project can be completed within the approved budget?
A. Earned value management
B. Cost baseline
C. Cost Management Plan
D. Funding limit reconciliation
Answer: C
Explanation: The project Cost Management Plan is a component of the overall project management plan, and it defines how the project cost will be planned, managed, expended, and controlled throughout the project life cycle.
The Earned Value Management (EVM) will NOT be very beneficial in which situation?
A. To measure a project’s progress against the project scope, cost, and schedule baselines.
B. To forecast future performance and the project’s completion date and final cost.
C. To provide schedule and budget variances during the project.
D. To develop the project cost baseline.
Answer: D
Explanation: Earned value analysis provides a means to determine cost and schedule variances, not to develop the project cost baseline.
You are preparing a Cost Management Plan for the data center project you are managing for ITPro Consultancy, LLC. All of the following is true regarding this plan EXCEPT:
A. Activity cost estimates will be rounded to a prescribed precision; for example, $100, $1,000, and so on.
B. Units of measurement such as hours, days, weeks, or a lump sum amount will be used to estimate resources.
C. The primary concern is determining the amount of resources needed to complete the project activities.
D. The WBS provides a framework for the Cost Management Plan, and a control account (CA) in the WBS is used to monitor and control the project cost.
Answer: C
Explanation: The primary concern for Project Cost Management is to determine the cost of resources, not the amount to complete the project activities.
You estimated your project cost to be $80,000 with a timeline of eight months. After four months in the project, you found out that 40 percent of the project is completed; the actual cost is $25,000. What does the SPI tell you in this case?
A. There is not enough information to calculate the SPI.
B. The project is behind schedule.
C. The project is ahead of schedule.
D. The project is progressing as per the plan.
Answer: B
Explanation: Here we have BAC = $80,000 We know that EV = BAC * Actual % Complete So EV = BAC * 40 percent completion = $80,000 x 40 percent = $32,000 Also PV = BAC * (Time Passed/Total Scheduled Time) And PV = $80,000 * (4 months/8 months) = $40,000 So SPI = EV/PV = 32,000/40,000 = 0.8 SPI is less than one, which suggests that the project is behind schedule.
You estimated your project cost to be $80,000 with a timeline of eight months. As of today, you found out that 40 percent of the project is completed; the actual cost is $30,000. What does the CPI tell you in this case?
A. There is not enough information to calculate the CPI.
B. The project is over budget.
C. The project is under budget.
D. The project is costing as per the plan.
Answer: C
Explanation: Here we have BAC= $80,000 and AC = $30,000 We know that EV = BAC * Actual % Complete So, EV = BAC * 40 percent completion = $80,000 * 40 percent = $32,000 So, CPI = EV/AC = 32,000/30,000 = 1.066 CPI is more than one, which suggests that the project is under budget.
You just completed your Cost Management Plan and defined how the project cost will be planned, managed, expended, and controlled throughout the project life cycle. You also looked into your variance threshold, which is usually expressed as percentage deviations from the cost baseline that the sponsor or stakeholders are willing to allow before any action is required. This threshold is called:
A. Approved threshold
B. Variance limit
C. Control threshold
D. Control limit
Answer: C
Explanation: Control thresholds are usually expressed as percentage deviations from the cost baseline that the sponsor or stakeholders are willing to allow before any action is required.
Which one of the following is FALSE about TCPI?
A. TCPI calculates the performance that must be achieved in order to meet financial or schedule goals.
B. TCPI usually determines the status on the remaining work with respect to the funds remaining.
C. If the cumulative CPI falls below the baseline plan, all future work must be performed at the TCPI to achieve the planned BAC
D. If the cumulative CPI falls below the baseline plan, all future work must be performed below the TCPI to achieve the planned BAC.
Answer: D
Explanation: TCPI calculates the performance that must be achieved in order to meet financial or schedule goals and determines the status on the remaining work with respect to the funds remaining. If the cumulative CPI falls below the baseline plan, all future work must be performed at the TCPI to achieve the planned BAC.
All of the following statements are true about cost baseline EXCEPT:
A. It is a time-phased budget used to monitor, measure, and control cost performance during the project.
B. It is usually displayed in the form of an S-curve.
C. It assigns cost estimates for expected future period operating costs.
D. It aggregates the estimated costs of project activities to work packages, then to control accounts, and finally to the project.
Answer: C
Explanation: Expected future period operation costs are considered to be ongoing costs and should not be part of the project costs.
While working on your project budget, you also calculated the contingency reserve. This contingency reserve is the estimated cost to be determined, managed, and controlled at your discretion to deal with which of the following?
A. To compensate inadequacies in your original cost planning.
B. To address the cost impact of the risks remaining during the Plan Risk Responses process.
C. To handle anticipated and certain events in your project.
D. To handle unanticipated events or surprises in your project.
Answer: B
Explanation: The project manager determines, manages, and controls the contingency reserves, which will address the cost impact of the risks remaining (residual risks or known unknown risks).
Lori is the project manager for a software development firm and has been assigned to create an accounting automation application for a dentist’s office. While reviewing the cost estimate with Lori, the sponsor expressed her frustration with the higher cost and asked to reduce the estimate by at least ten percent. The sponsor is not too worried about the project duration estimate and suggested that Lori seek her help with the schedule if needed. What is the best course of action for Lori in this kind of situation?
A. Replace a couple of expensive resources with lower-cost resources.
B. Continue with the project and constantly find an opportunity to save money for a total savings of 10 percent.
C. Have an urgent meeting with the team members and ask them to be innovative and squeeze their estimate.
D. Inform the sponsor of the activities to be cut.
Answer: D
Explanation: The project manager is expected to come up with a realistic estimate that does not include padding. The project manager also should not simply reduce the estimate whenever asked by the sponsor or clients. If the project manager must reduce the estimate, she needs to explore other options such as cutting scope, reducing quality, or replacing expensive resources with lower-cost resources. In this case, Lori should inform the sponsor the activities to be cut in order to reduce the estimate by ten percent.
Selina is a project manager involved in the Estimate Costs process in the early phase of her project when a limited amount of detail was available to her. The range of her estimate was $75,000 to $200,000, and the actual cost came to be around $150,000. What would you call such an estimate?
A. A variable estimate
B. A definitive estimate
C. A rough order of magnitude estimate
D. A budget estimate
Answer: C
Explanation: A rough order of magnitude (–25 percent to 75 percent) is an approximate estimate made without detailed data. This type of estimate is used during the formative stages for initial evaluation of a project’s feasibility. In this example, $75,000 and $200,000 are –25 percent to +75 percent of $150,000.
You have fifteen components to work on in a software development project. As per your estimation, the first six components would cost $1,500 each, and the remaining nine would cost $1,400 each. Your schedule projected that you would be done with 40 percent of the components today. While collecting the status updates from the team members, you found out that the first five components were completed at a cost of $8,000. What is the SPI?
A. 1.2
B. 0.132
C. 0.833
D. Cannot be determined
Answer: C
Explanation: The budget for the first six components is 6 * $1,500 = $9,000, and the budget for the remaining nine components is 9 * $1,400 = $12,600. So, BAC = $9,000 + $ 12,600 = $21,600 We know PV = BAC * Planned % Complete So, PV = 21,600 * 40 percent = $8,640 We have a total of fifteen components and so far, completed five components. EV = BAC * (Work Completed/Total Work Required) So, EV = $21,600 * 5/15 = $7,200 So, SPI = EV/PV = 7200/8640 = 0.833
You are working on a project to convert an old nursing home to a new office complex. While reviewing the progress of your project, you found out that your EV = $26,000 and AC = $27,000. One of your site supervisors calls to inform you that there are several damages in the foundation that were not discovered earlier, and it will result in a significant cost overrun. What will you do FIRST?
A. Make sure that the contingency reserves you have will be sufficient enough to cover the cost overrun.
B. Call the sponsor immediately and inform her that additional funds will be needed.
C. Ask the supervisor to figure out why these damages were not discovered earlier.
D. Evaluate the cause and size of this cost overrun.
Answer: D
Explanation: The first step should be to get as much information as possible about the damages in the foundation by evaluating the cause and size of the damage and the amount needed for the fix. You can take other actions as appropriate once you have all the details.
You are managing a software application project budgeted for $90,000 to develop an online PMP exam simulator. The team has completed design work, received approval from technical review team, and initiated coding work. You think that the current variances are atypical, and that similar variances will not occur in the future. You found that AC = $30,000 and EV = $35,000. What is your Estimate at Completion (EAC)?
A. $85,000
B. $77,586
C. $90,000
D. $60,000
Answer: A
Explanation: If current variances are considered as atypical and you anticipate that similar variances will not occur in the future, the correct EAC formula is EAC = AC + (BAC – EV). In this case, BAC = $90,000 EAC = $30,000 + ($90,000 – $35,000) = $85,000 c
Monitoring specific project results to determine if they comply with relevant quality standards and identifying ways to eliminate causes of inadequate results is:
A. Quality assurance
B. Quality planning
C. Quality control
D. Quality management
Answer: C
Explanation: Quality control is utilized to monitor and record results during execution of quality activities.
Conformance to specifications—or making sure a project produces what it was created to produce—prevention over inspection, and zero defects are key items emphasized by:
A. W. Edwards Deming
B. Phil Crosby
C. Joseph Juran
D. None of the above
Answer: B
Explanation: Phil Crosby popularized the concept of the cost of poor quality, advocated prevention over inspection and “zero defects,” and defined quality as conformance to specification (project produces what it was created to produce).
You are planning to hire a third-party auditor to perform a scheduled or random structured review to determine whether your quality management activities comply with organizational and project processes, policies, and procedures. All of the following will be done in this quality audit EXCEPT:
A. Identify ineffective and inefficient activities or processes used on the project.
B. Identify required improvements, gaps, and shortcomings in the processes.
C. Create quality metrics.
D. Recommend changes and corrective actions to Integrated Change Control.
Answer: C
Explanation: A quality audit is done in the Manage Quality process, and quality metrics, which are the outputs in the Plan Quality Management process, are used as inputs in the Manage Quality process.
You are overseeing a software application project to implement a custom accounting and financial system for medium to large- sized corporations. The quality assurance team submitted a defect report that has relevant information on the description, severity, root causes, possible resolutions, owner, due date, and reporter of the defects. You intend to know which causes of defects are most serious so that you can prioritize the potential causes of the problems. Which of the following tools should you use to isolate the critical few causes of defects from the uncritical many?
A. Control chart
B. Pareto chart
C. Scatter diagram
D. Fishbone diagram
Answer: B
Explanation: A Pareto chart illustrates which causes of error are most serious. It is displayed as a histogram and shows frequency of error according to cause. The concept is based on the 80/20 rule: “80 percent of the problems come from 20 percent of the causes;” thus, it is important to pay close attention to the 20 percent of critical causes in order to resolve 80 percent of the problems. A Pareto chart: – Helps focus attention on the most critical issues – Prioritizes potential causes of the problems – Is used to determine priorities for quality improvement activities – Separates the critical few from the uncritical many.
A project manager was recently recognized for delivering a high-quality product with no noticeable defects. Some of the stakeholders were skeptical about limited features offered by the product. This kind of product that has a high- level of quality but does not include many of the features of comparable products is referred to as:
A. Low quality
B. Low grade
C. Inaccurate
D. Sketchy
Answer: C
Explanation: Products that are produced at an acceptable level of quality and meet the desired requirements of the customer but have limited functionality and features compared to similar products are referred to as low grade.
Plan Quality Management is the process of identifying all the relevant quality requirements, specifications, and standards for the project and product and detailing how the specifications will be met and should be performed:
A. During the initial phase of the project.
B. Prior to the approval of the Project Charter.
C. After the work breakdown structure has been developed.
D. In parallel with the other planning processes.
Answer: D
Explanation: Quality management is integrated with many other project planning processes, especially cost and time management.
A project manager working on implementing WIMAX connectivity in a rural area has to deploy several network devices and set up POPs to house those devices. She performed a cost-benefit analysis and was apprehensive about the high cost of nonconformance, or cost that will incur if proper quality is not implemented in her project. In quality management, which one of the following is NOT an attribute of the cost of nonconformance?
A. Processing customer complaints
B. Machinery maintenance and calibration
C. Bad word-of-mouth advertising
D. Field repair work
Answer: B
Explanation: Machinery maintenance and calibration is an appraisal function that is included in the cost of conformance. All other costs listed are costs of nonconformance.
As a project manager, you are trying to decide the trade-offs between quality and grade in your project. Which one of the following is correct with respect to a product developed or a service performed?
A. There is no difference between quality and grade.
B. Neither low grade nor low quality is acceptable.
C. Low quality is acceptable, but low grade is not.
D. Low quality is not acceptable, but low grade is.
Answer: D
Explanation: A product that is produced at a high-level of quality but does not include many of the features of comparable products is referred to as low grade. A low grade product with limited features may be acceptable, but a low quality product or service is unacceptable.
