Questions BANK with accurate answers. PMP. 100% Verified. Rated A

Questions BANK with accurate answers. PMP. 100% Verified. Rated A What is the earned value name for "How much you have spent to date?" - Actual Cost What are direct costs? - Costs incurred directly by the project What are fixed costs? - Costs that do not change with project activity What is a Management Reserve - An amount of time or money set aside to cover unforeseen risks What is the Cost Variance formula? How do you interpret the result? - CV = EV - AC Negative = over budget Positive = under budget What is the Schedule Variance formula? How do you interpret the result? - SV = EV - PV Negative = Behind schedule Positive = Ahead of schedule What is value analysis? - Finding a less costly way to complete the work without affecting the quality. What is parametric estimating? - Using mathematical relationships found in historical information to create estimates (e.g. Dollars per foot) What is total float? What's the formula for it? - Total float is the amount of time an activity can be delayed without delaying the project. Float = LS - ES Float = LF - EF What schedule network analysis technique uses buffers? - Critical Chain What does Present Value mean? - The value today of future cash flows Cost risk is greater for the buyer in what type of contract? - Cost Reimbursable What is the range of accuracy with a definitive estimate? - +/- 10% What does a benefit cost ratio of 2.5 mean? - The benefits are 2.5 times the costs A critical path activity will generally have how much float? - Zero Why would a project manager want to use resource leveling? - To smooth the peaks and valleys of monthly resource usage consumed by the project What does a milestone chart show? - Dates of significant events on the project What is the duration of a milestone? - Zero What is analogous estimating? - Top-down estimating Why would you want to crash a project? - To shorten the project duration. The "what-if" scenario method of schedule network analysis makes use of what technique? - Monte Carlo analysis What are sunk costs? - Expended costs. Not to be considered. What does a finish-to-start relationship mean? - An activity must finish before it's successor can start What schedule network analysis technique involves crashing? - Schedule compression What does the Estimate at Completion tell you? - What we currently expect the TOTAL project to cost. The types and quantities of resources required are calculated in what part of time management? - Estimate Activity Resources What does the schedule variance tell you? - How far you are behind or ahead of schedule What is the formula for estimate at completion? - BAC/Cumulative CPI What is the critical path? - The longest path in the network; the shortest time to complete the project What estimating method would use optimistic time estimates? - PERT three-point estimate "How much work should be done" has what earned value name? - Planned value What is operations? - an organizational function performing the ongoing execution of activities that produce the same product or provide a repetitive service What is a project? - a temporary endeavor undertaken to create a unique product, service, or result What is a program? - a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually What is a portfolio? - A collection of projects or programs and other work that are grouped together to facilitate effective mgmt of that work to meet strategic business objectives What is project management - the application of knowledge, skills, tools and techniques to project activities to meet the project requirements What is program management? - the centralized coordinated mgmt of a program to achieve the program's strategic objectives and benefits What is portfolio management? - refers to the centralized mgmt of one or more portfolios which includes identifying, prioritizing, authorizing, managing and controlling projects, programs, and other related work to achieve specific strategic objectives What is a project manager? - the person assigned by the performing organization to achieve the project's objectives What is a project management office? - an organizational body or entity assigned various responsibilities related to the centralized and coordinated mgmt of those projects under its domain What are enterprise environmental factors? - internal or external environmental factors that surround or influence a project's success When is the end of a project reached? - when project objectives have been achieved or when the project is terminated because its objective cannot be met or the need for the project no longer exists What are the five process groups and their definitions? - initiating-those processes performed to define a new project or a new phase of an existing project by obtaining authorization to start the project or phase planning-those processes required to establish the scope of the project, refine the objectives and define the course of action required to attain the objectives that the project was undertaken to achieve executing-those processes performed to complete the work defined in the project management plan to satisfy the project specifications monitoring and controlling-those processes required to track, review, and regulate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes closing-those processes performed to finalize all activities across all process groups to formally close the project of phase What is the project life cycle? - a collection of generally sequential and sometimes overlapping project phases whose name and number are determined by the mgmt and control needs of the organization or organizations involved in the project, the nature of the project itself and its area of application What is the product life cycle? - this life cycle lasts from the creation of a new product to its withdrawal. a product life cycle can have many projects over its life Fill in the blanks. Ability to influence the final characteristics of the product, w/o significantly impacting cost is ____ at the start of the project, and _____ as the project progresses towards completion - highest, decreases Fill in the blanks. cost and staffing levels are _____ at the start, _____ as the work is carried out, and ______ rapidly as the project draws to a close. - low, peak, drop When is stakeholder influences, risk, and uncertainty greatest during a project? - at the start of a project What is a sequential relationship? - where a phase can only start once the previous phase is complete What is an overlapping relationship? - where the phase starts prior to completion of the previous one What is an iterative relationship - where only one phase is planned at any given time and planning for the next is carried our as work progresses on the current phase and deliverables Who are stakeholders? - persons or organizations who are actively involved in the project or whose interests may be positively or negatively affected by the performance or completion of the project Name 10 types of stakeholders - customers/users, sponsor, portfolio mgr/review board, program managers, PMO, project mgrs, project team, functional mgrs, operations mgmt, sellers/business partners Name the project mgmt constraints. - scope, time, cost, quality, human resources, communications, risk 1. There are 2 categories of Project Selection Methods, what are they? - Benefit Measurement Method and Mathematical Models 2. What are Mathematical Models also known as? - Constrained Optimization Method 3. What do Project Selection Methods involve? - They involve measuring value or attractiveness to the project owner/organization 4. What are types of Benefit Measurement methods? - Scoring Models, Economic Models, Comparative Approaches 5. What are examples of Benefit Measurement methods? - ROI, IRR, Payback Period, Opportunity Cost etc 6. What are examples of Mathematical Models? - Linear, Multi-objective, integer and dynamic programming (recent interpretations by PMI have also added decision trees as examples of mathematical models) 7. What is the key distinction between EPV and NPV? - NPV does not consider risk factors and EPV does consider risk factors 8. What is the definition of ROI? - return ratio that compares the net benefits of a project/product verses its total cost 9. What is the definition of Opportunity Cost? - economic value of next best alternative given up 10. Which is the 2 key inputs to Develop Project Charter? - SOW and Business Case 11. What are the top 3 characteristics of SOW? - Business Needs, Product Description, Strategic Plan 12. What is Life Cycle Cost? - Developmental Cost + Maintenance & Operational Cost 13. What is an example of a Comparative Approach? - Benefit-Cost Ratio (BCR) 14. What are the top three characteristic of a project charter? - Business needs, Justification, Requirements 15. What links the project to the ongoing work of the organization? - Project Charter 16. What is the key input to Identify Stakeholders? - Project Charter 17. What is the key tool of Identify Stakeholders? - Stakeholder analysis 18. What are the three steps of Stakeholder Analysis? - Identify Stakeholders, Identify Impact, Assess Response 19. What are the two most important tools used to identify stakeholder impact? - Power/Interest Grid and Salience Model (power, urgency, and legitimacy) 20. What are the 2 key outputs of Identify Stakeholders? - Stakeholder Register and Stakeholder Management Strategy What is project management - Application of knowledge, skills, tools, and techniques to project activities to meet project requirements. It is accomplished through five overarching process groups (Initiating, Planning, Executing, Monitoring and Controlling, and Closing) What is a constraint - Any restriction or limitation that will affect the performance of the project, or even affect when an activity can be scheduled What is the benefit of portfolio management - Better alignment of projects and programs with organizational objectives, with the goal being to maximize the value of the entire portfolio What are 4 types of organizational structures - Functional (traditional) Matrix (weak, balanced, strong) Projectized Composite What are the organizational characteristics of a projectized structure - Project manager authority: high to almost total Resource availability: high to almost total Budget controlled by: Project Manager Role of project manager: full-time Project management admin staff: full-time Why is the composite organizational structure considered somewhat of a hybrid - In this type of structure, one project may be organized in a functional manner, another using matrix or projectized type of structure. In addition, composite structure could have a separate silo for proj mgmt working alongside resources from other silos who are also managing projects According to PMBOK, what is a portfolio - A collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives What is a project management system - A project-based set of tools and techniques, processes and procedures, control systems, and methodologies that any project manager, PMO, or organization can take advantage of When does the life cycle of a product or service begin - At its conception; it ends with its closure. This cycle can begin with an assessment of the product or service from a business perspective (business need and benefit), continue with the hand off to operations, and end with the discontinuation or completion of the product or service. What are the organizational characteristics of a functional structure - Proj mgr authority - little or none Resource availability - little or none Budget controlled by - functional manager Role of the project manager - part-time Project management administrative staff - part-time What are the overall characteristics of matrix structures - Overall focus - operations and projects Authority - two bosses: functional manager and project manager Manager focus - project manager: control of projects Employee focus - split between projects and operations What are the 4 phases of the product life cycle - Introduction Growth Maturity Decline What are the Project Integration Management processes - Develop Project Charter Develop Project Management Plan Direct and Manage Project Execution Monitor and Control Project Work Perform Integrated Change Control Close Project or Phase In which Process Group does each Project Integration Management process fit - Develop Project Charter - Initiating Develop Project Management Plan - Planning Direct and Manage Project Execution - Executing Monitor and Control Project Work - Monitoring and Controlling Perform Integrated Change Control - Monitoring and Controlling Close Project or Phase - Closing What is the primary deliverable of the Develop Project Charter process - project charter When does Close Project or Phase occur - When the work of the project or phase is complete When the work stops (before the work is complete) What is the definition of a statement of work - Narrative description of the products or services to be supplied by the project What is the term for "activities performed to bring future performance into compliance with the project management plan - Corrective actions Which important project document is described by the following statement: A document, or collection of documents, created by the project manager based on input from the project team, stakeholders, management, and others, that is used to manage the project - project management plan What are the 5 inputs to Develop Project Charter - Project statement of work Business case Contract Enterprise environmental factors Organizational process assets What are the 3 outputs of the Monitor and Control Project Work process - Change requests Project management plan updates Project document updates Which project document identifies why the project should be funded and how the project meets the business needs described in the SOW? - Business case Which project management process involves doing the work outlined in the project management plan to achieve the project goal - Direct and Manage Project Execution What is the responsibility of the change control board - To review, evaluate, and approve (or reject) change requests What is "initiator" - The person (or organization) with the ability to authorize the project Who does the following description refer to: The person, or group, providing the financial resources for the project - Project Sponsor What are the organizational process assets - The organization's processes or knowledge base that describes how the organization manages projects Is expert judgement an input, tool and technique, or output - Tool and technique Management Framework - Management Framework 1. The project life cycle is comprised of which of the following? A. Phases B. Milestones C. Estimates D. Activities - A. The project life cycle is comprised of phases. B is incorrect since milestones may exist within the project plan, but they do not comprise the project life cycle. C is wrong because estimates are not directly related to the project life cycle. Choice D, activities, comprise the phases within the project life cycle, but not the project life cycle itself. Marcy, the project manager for the ERP Project, is about to complete the Project Phase Review. The completion of a project phase is also known as which of the following? A. Lessons learned B. Kill points C. Earned Value Management D. Conditional advancement - B. The completion of a project phase may also be known as a kill point. Lessons learned is a collection of information and knowledge gained through an experience, typically a phase, within the project, so A is wrong. EVM, earned value management, can happen at different times throughout the project, not just at the end of a project phase, therefore C is wrong. Choice D, conditional advancement, is a term that is used to describe the conditions that must be present for the work to continue on a project. Conditional advancement, however, does not have to happen only at the end of a project phase. Which of the following is not a key stakeholder in a project that creates a service internal to an organization? A. Project manager B. External customers C. Project vendors D. Project team members - B. External customers are not key stakeholders in this instance as they are not actively involved in an internal project. A and D are actively involved in the project processes. Choice C, project vendors, is most likely a key stakeholder before an external customer since their ability to perform services and deliver goods may affect project schedule, budget, and completion. Of the following management skills, which will a project manager use most? A. Leading B. Communication C. Influencing the organization D. Negotiations - B. Communication is the key general management skill a project manager will use the most. Choices A, C, and D are necessary, but communication accounts for the majority of a project manager's time Managing is best described as which one of the following? A. Establishing direction B. Functional controls over the project team and stakeholders C. Consistently producing key results expected by stakeholders D. Motivating and inspiring the project team to produce results that are expected by project stakeholders - C. Managing has to do with consistently producing key results that are expected by stakeholders. Choices A and D describe the leadership processes a roject manager must possess, therefore they are wrong. Choice B is incorrect as it describes the functional management position over project team members. Ron, the project manager, expects formal communications for change requests. Of the following, which is most likely not an example of formal communication? A. Reports B. Oral presentations C. E-mail D. Team meetings - C. Of all the choices presented, answer C is most likely not a formal communication. Choices A, B, and D are likely to be formal communications within a project. Which of the following is an example of negotiation? A. Arbitration B. Formal communications C. Conferring D. Scope creep - A. Arbitration (sự phân xử, sự làm trọng tài phân xử) is a form of negotiation. Technically, it is a form of assisted negotiation. B is not a negotiation technique. Choice C, conferring, is not negotiating, but a process to seek consensus on a decision. D is incorrect as scope creep is the process of allowing additional activities into the project scope. 8. You are the project manager for your organization. Influencing your organization requires which of the following? A. An understanding of the organizational budget B. Research and documentation of proven business cases C. An understanding of formal and informal organizational structures D. Positional power - C. To influence an organization (in order to get things done), a project manager must understand the explicit and implied organizational structures within an organization. Choice A is incorrect since the project manager may not even have access to an organizational budget. B is incorrect because a proven business case may not map to every scenario when influencing an organization. Finally, D is incorrect because positional power may relate to only a small portion of an organization, not to multiple facets of influence. 9. Your global project is sabotaged by rumors and gossip about the project deliverable. This is an example of: A. Cultural achievability B. Cultural influences with the project team C. Project team mutiny D. Ineffective planning - A. Rumors and gossip can sabotage a project. This is an example of cultural achievability. B and C are incorrect since rumors and gossip may happen internally and externally to the project team. D may be tempting, but the rumors and gossip could happen outside of the effective planning completed by the project manager and the project team. What is the difference between a standard and a regulation? A. Standards are mandatory; regulations are not B. Standards are optional; regulations are not C. Regulations and standards are essentially the same D. Regulations are mandatory; standards may be seen as guidelines - D. Of all the choices presented, D is the best answer since regulations are mandatory requirements. Choice A is incorrect because it does not accurately describe regulations and standards. Choice B is incorrect since regulations are not optional, they are mandatory. C is incorrect standards and regulations are not the same. You are the project manager of a project that spans the globe in its implementation. Your team is non-collocated and many of the project team members will need to travel between sites to complete the project work. Which of the following is least relevant to internationalization? A. Time zones B. Travel requirements C. Project schedule D. Teleconferences versus videoconferences - C. The project schedule is the least relevant when compared to the other factors of internationalization. Choices A, B, and D are all greatly affected by the geographical locale, difference in time zones, and availability of resources in these different countries. 12. Which of the following is an example of a deliverable at the end of the requirements gathering phase in a software design project? A. Responsibility matrix creation B. Detail design document C. Business needs D. Project team assembled - B. The detail design document is an output of the requirements gathering phase. Choice A is incorrect because the responsibility matrix creation is a process, not an output of itself. C is incorrect because business needs may prompt the project to begin, not an output of a phase. D is also wrong because the project team assembled is part of the project process; it is not an output. You are the project manager for the ERP Project. Your organization uses a project office. The primary purpose of a project office is to: A. Support the project managers B. Support the Project Sponsor C. Support the project team D. Identify the stakeholders - A. The project office supports the project manager. B and C are incorrect because the project office does not support the Project Sponsor and project team. Choice D is incorrect because stakeholder objectives may vary from stakeholder to stakeholder. Which of the following best describes a project deliverable? A. The resources used by the project to complete the necessary work B. The resources exported from the project as a result of the project work C. The end result of a project planning session D. The tangible good or service created by the project team - D. Recall that projects are temporary endeavors to create a unique product or service. A is incorrect because resources devoted to the project do not constitute a project deliverable. B and C are incorrect since project work is not a deliverable and there will be multiple planning sessions on most projects. The work of a project often will result in a deliverable, not resources or a work product. At what point in a project would a kill point be acceptable? A. When a project team member is not performing as planned B. When a project reaches the end of a project phase C. When a project reaches the end of its budget D. When a project manager determines the project cannot continue - B. Kill points are typically at the end of a project phase. A kill point does not mean the project is killed, just that the potential for termination exists. Choices A, C, and D may appear to be correct, but they do not adequately describe a kill point. Of the following, which is not an exit criterion? A. Customer sign-offs B. Quality metrics C. Stakeholder expectations D. Regulatory inspections - C. Exit criterion are activities or evidence that allow a project to move forward. Stakeholder expectations are universal to the entire project, not just to one project phase. Choices A, B, and D are all examples of activities that can be considered exit criteria. The compilation of all the phases within a project equates to ____________________. A. Project life cycle B. Product life cycle C. Project completion D. Project processes - A. The project life cycle is comprised of all of the project phases within a project. B describes the life of many projects that create a unique product or service. C and D are incorrect since they do not accurately describe the project life cycle. Management has asked Nancy to determine if a project concept is valid and can be completed using a reasonable amount of time and finances. Management is asking for which of the following? A. Kill points B. Cost and time estimates C. A project case study D. A feasibility study - D. Management is looking for a feasibility study to determine if it is feasible for a project to exist. Choice A is incorrect since kill points are within a project and typically don't prove project feasibility. Cost and time estimates, answer B, are not the elements Nancy or management needs at this juncture. Choice C, Project Case Study, may seem correct, but D is a superior answer since it is the formal name for the report documenting the project's feasibility. Henry, the project manager of the MHB Project, has allowed a subsequent project phase to begin before the predecessor phase is complete. This is an example of which of the following? A. Crashing B. Fast tracking C. Risk management D. Tandem scheduling - B. Fast tracking is the process of allowing successor phases (or activities) to begin before predecessor phases (or activities) are complete. A is incorrect because crashing is the process of adding more resources to the project in an attempt to complete the project sooner. C, risk management, happens throughout the project, therefore it is wrong. D is also wrong because tandem scheduling is not a relevant term in this instance. Which of the following describes the early stages of a project? A. High costs and high demand for resources B. A high demand for change C. A high demand for project team time D. Low costs and low demand for resources - D. Projects typically have low costs and low demand for resources early in their life cycle. Choices A, B, and C are incorrect statements in regard to projects. At which point is the risk of failure the least, but the consequence of failure the highest? A. During the early stages B. During the middle stages C. During the final stages D. Risk of failure is even across all project phases - C. As the project moves closer to completion, the likelihood of risk diminishes. Choices A, B, and D are incorrect in regard to risk assessment in a project. Tracey is the project manager of the KHG Project. Her organization is a classic functional environment. Her level of authority as a project manager can be best described as which of the following? A. Low B. Moderate C. Balanced D. High - A. Tracey will most likely have a low amount of authority in a functional organization structure. Choices B and C are incorrect because they describe the matrix structures. Choice D is incorrect since it is relevant to a projectized structure. Project team members are most likely to work full-time on a project in which of the following organizational structures? A. Functional B. Weak matrix C. Strong matrix D. Projectized - D. Projectized structures often have project team members assigned to the project on a full-time basis. Choices A, B, and C are incorrect since these structures have part-time project teams. A project with much risk and reward is most likely to be accepted in which of the following? A. An entrepreneurial company B. A heavily regulated company C. A non-profit organization D. A community - A. Projects with much risk and reward are most likely to be accepted within an entrepreneurial organization. Choices B, C, and D are typically more adverse to risk and likely wouldn't accept a project with a large amount of risk. Where can a project manager expect to receive templates? A. Commercial databases B. The project office C. The project sponsor D. PMIS - B. The project office is the best choice since its role is to support the project manager. Choice A, commercial databases, may be feasible, but it is not the best choice presented. Project Sponsors, Choice C, are not typically going to provide the project manager with templates. Choice D, project management information systems, may have project templates available, but the project office is the best choice presented. Ethics and professional responsibility questions make up 10% - Ethics and professional responsibility questions make up 10% You read a great article over the weekend, and you think your team could really benefit from it. What should you do? A. Photocopy the article and give it to the team members B. Type up parts of the article and email it to the team C. Tell everyone that you thought of the ideas in the article yourself D. Buy a copy of the magazine for everyone - Answer: D You should never copy anything that's copyrighted. Make sure you always respect other people's intellectual property! You find out that a contractor that you're working with discriminates against women. The contractor is in another country, and it's normal in that country. What should you do? A. Respect the contractor's culture and allow the discrimination to continue B. Refuse to work with the contractor, and find a new seller C. Submit a written request that the contractor no longer discriminates D. Meet with your boss and explain the situation - Answer: B It's never okay to discriminate against women, minorities, or others. You should avoid doing business with anyone who does. You're a project manager at a construction company that's selling services to a client. You are working on a schedule and a budget when the CEO at the client demands that you do not produce those things. Instead, he wants you to begin work immediately. What the BEST thing that you can do? A. Meet with the CEO to explain why the budget and schedule are necessary B. Stop work immediately and go into claims administration C. Don't produce the schedule and budget D. Ask the buyer to find another company to work with - Answer: A This is a difficult situation for any project manager. But you can't cut corners on the project management processes, and you certainly can't tell the client that you're refusing their business. The best thing you can do is meet with the CEO to explain why you need to follow the rules. You're working on a project, when the client demands that you take him out to lunch every week if you want to keep his business. What's the BEST thing to do? A. Take the client out to lunch and charge it to your company B. Refuse to take the client out to lunch because it's a bribe C. Take the client out to lunch, but report him to his manager D. Report the incident to PMI - Answer: B The client is demanding a bribe, and paying bribes is unethical. You should not do it. If your project requires you to bribe someone, then you shouldn't do business with that person. You are working on one of the first financial projects your company has attempted, and you have learned a lot about how to manage the project along the way. Your company is targeting financial companies for new projects next year. What's the BEST thing for you to do? A. Talk to your company about setting up some training sessions so that you can teach others what you have learned on your project B. Keep the information you've learned to yourself so that you'll be more valuable to the company in the next year C. Decide to specialize in financial contracts D. Focus on your work with the project and don't worry about the helping other people to learn from the experience - Answer: A You should always try to help other people learn about managing projects. You find out that you could save money by contracting with a seller in a country that has lax environmental protection rules. What should you do? A. Continue to pay higher rates for a environmentally safe solution B. Take advantage of the cost savings C. Ask your boss to make the decision for you D. Demand that your current contractor match the price - Answer: A You should never contract work to a seller who pollutes the environment. Even though it costs more to use machinery that doesn't damage the environment, it's the right thing to do. You overhear someone on your team using a racial slur. This person is a critical team member and you are worried that if they leave your company it will cause project problems. What should you do? A. Pretend you didn't hear it so that you don't cause problems B. Report the team member to his boss C. Bring it up at the next team meeting D. Meet in private with the team member and explain that racial slurs are unacceptable - D You should make sure that your team always respects other people. You've given a presentation for your local PMI chapter meeting. This is an example of what? A. A PDU B. Contributing to the project management body of knowledge C. Donating to charity D. Volunteering - B Any time you help share your knowledge with others, you are contributing to the project management body of knowledge, and that's something you should do as a certified project manager! You are about to hold a bidder conference, and a potential seller offers you great tickets to a baseball game for your favorite team. What should you do? A. Go to the game with the seller but avoid talking about the contract B. Go to the game with seller and discuss the contract C. Go to the game, but make sure not to let him buy you anything because that would be a bribe D. Politely refuse the tickets - D You have to refuse the tickets even if the game sounds like a lot of fun. The tickets amount to a bribe, and you shouldn't do anything that might influence your decision in awarding your contract. Your company has sent out an RFP, and your brother wants to bid on it. What's the BEST thing for you to do? A. Give your brother inside information to make sure that he has the best chance at getting the project B. Publicly disclose your relationship with him and excuse yourself from the selection process C. Recommend your brother but don't inform anyone of your relationship D. Don't tell anyone about your relationship but be careful not to give your brother any advantage when evaluating all of the potential sellers - B You have to disclose the relationship. It's important to be up front and honest about any conflict of interest that could occur on your projects. CHAPTER TWO Project Management Framework - CHAPTER TWO Project Management Framework Four project managers are having lunch together and discussing their projects. Most of the time they are just complaining about how hard projects are to manage in their company. Some complain about the stakeholders and the number of changes they cause. Others talk about how hard it is to get people to cooperate and perform. One project manager wants to focus on the advantages of the matrix-type organization they all work in for their projects. Which of the following would he mention? A. Improved project manager control over resources B. More than one boss for project teams C. Communications are easier D. Reporting is easier - Answer A Explanation Remember that if the question doesn't state what it is comparing to, it is comparing to a functional organization. Two project managers have just realized that they are in a weak matrix organization and that their power as project managers is quite limited. One figures out that he is really a project expediter and the other realizes he is really a project coordinator. How is a project expediter different from a project coordinator? A. The project expediter cannot make decisions. B. The project expediter can make more decisions. C. The project expediter reports to a higher-level manager. D. The project expediter has some authority. - Answer A Explanation The project coordinator reports to a higher-level manager and has authority to make some decisions. The project expediter has no authority to make decisions. In a projectized organization, the project team: A. Reports to many bosses. B. Has no loyalty to the project. C. Reports to the functional manager. D. Will not always have a home - Answer D Explanation The main drawback of the projectized organization is that at the end of the project, the team is dispersed but they do not have a functional department (home) to which to return. A project manager is trying to complete a software development project, but cannot get enough attention for the project. Resources are focused on completing process-related work and the project manager has little authority to properly assign resources. What form of organization must the project manager be working in? A. Functional B. Matrix C. Expediter D. Coordinator - Answer A Explanation In a functional organization, the project manager has the least support for the project and has little authority to assign resources. Choices C and D are roles in a weak matrix organization. A project manager has very little project experience, but he has been assigned as the project manager of a new project. Because he will be working in a matrix organization to complete his project, he can expect communications to be: A. Simple. B. Open and accurate. C. Complex. D. Hard to automate. - Answer C Explanation Because a project done in a matrix organization involves people from across the organization, communications are more complex. A project team member is talking to another team member and complaining that many people are asking him to do things. If he works in a functional organization, who has the power to give direction to the team member? A. The project manager B. The functional manager C. The team D. Tight matrix - Answer B Explanation In a functional organization, the functional manager is the team member's boss and probably also the project manager's boss. Who has the MOST power in a projectized organization? A. The project manager B. The functional manager C. The team D. They all share power - Answer A Explanation In a projectized organization, the entire company is organized by projects, giving the project manager the most power. All of the following are characteristics of a project EXCEPT: A. Temporary. B. Definite beginning and end. C. Interrelated activities. D. Repeats itself every month. - Answer D Explanation Choice D implies that the whole project repeats every month. Generally, the only things that might repeat in a project are some activities. The whole project does not repeat. All of the following are parts of the team's stakeholder management effort EXCEPT: A. Giving stakeholders extras. B. Identifying stakeholders. C. Determining stakeholders' needs. D. Managing stakeholders' expectations. - Answer A Explanation Giving stakeholders extras is known as gold plating. This is not effective stakeholder or quality management. A manager and the head of engineering discuss a change to a major work package. After the meeting, the manager contacts you and tells you to complete the paperwork to make the change. This is an example of: A. Management attention to scope management. B. Management planning. C. A project expediter position. D. A change control system. - Answer C Explanation This is an example of a project expediter position because you are not evaluating the change, looking for impacts, etc. You are merely implementing others' requests. In this case, you are acting as the project expediter. The project is in the planning process group when three stakeholders come to the project manager asking for information on the company's new project management methodology. They want to know where it came from and why it is different from the way they currently manage projects. These stakeholders are also friends of the project manager, and the entire group has worked together for years. The project is using some new terms like corrective action that are making some stakeholders nervous, as they are unsure whether the way projects will be managed is going to change along with new terms. What should the project manager do? A. Advise the stakeholders that she will keep them in the communication loop for the project. B. Supply a list of new terms and their definitions. C. Notify the project management office (PMO). D. Make sure she maintains her authority as the project manager even though the stakeholders are her friends. - Answer C Explanation Some students may think this question has more than one right answer. It does not. There are many things the project manager can do, but what should be done? The company policies are managed by the project management office and the project manager should make sure the stakeholders have clear information by sending them directly to the authority on company policies for project management. A project manager is managing his second project. It started one month after the first and both are ongoing. Though his first project is small, this one seems to be growing in size every day. As each day passes, the project manager is beginning to feel more and more in need of help. The project manager has recently heard that there was another project in the company last year that is similar to his second project. What should he do? A. Contact the other project manager and ask for assistance. B. Obtain historical records and guidance from the project management office (PMO). C. Wait to see if the project is impacted by the growth in scope. D. Make sure the scope for the project is agreed to by all the stakeholders. - Answer B Explanation There are many things the project manager could do. Choice A is not the best choice, as the other project manager might not be an experienced mentor. His advice might not be adequate to help this project manager. Choice C is reactive, while a project manager should be proactive. Choice D is not the best choice. It would be helpful, but does not specifically address the issues in this situation. If the PMO is contacted, the project manager can receive the knowledge of many project managers, historical information from many projects, and have the assistance of someone whose job it is to help. The project life cycle differs from the product life cycle in that the project life cycle: A. Does not incorporate a methodology. B. Is different for each industry. C. Can spawn many projects. D. Describes project management activities. - Answer B Explanation The project life cycle does incorporate a methodology-for doing the work-so choice A cannot be best. It is the product life cycle that spawns many projects, so choice C cannot be best. Project management activities are described in the project management process, so choice D cannot be best. The project life cycle is different for each industry, so choice B is the best answer. Management by objectives works only if: A. It is supported by management. B. The rules are written down. C. The project does not impact the objectives. D. The project includes the objectives in the project charter. - Answer A Explanation The best answer is the need for management to support the objectives. Your management has decided that all orders will be treated as projects and that project managers will be used to update orders daily, to resolve issues, and to ensure that the customer formally accepts the product within 30 days of completion. Revenue from the individual orders can vary from US $100 to US $150,000. The project manager will not be required to perform planning or provide documentation other than daily status. How would you define this situation? A. Because each individual order is a temporary endeavor:' each order is a project. B. This is program management since there are multiple projects involved. C. This is a recurring process. D. Orders incurring revenue over $100,000 would be considered projects and would involve project management. - Answer C Explanation Because orders are numerous and of short duration, this situation is a process, not a project. The previous project manager for your project managed it without much project organization. There is a lack of management control and no clearly defined project deliverables. Which of the following would be the BEST choice for getting your project better organized? A. Adopt a life cycle approach to the project. B. Develop lessons learned for each phase. C. Develop specific work plans for each work package. D. Develop a description of the product of the project. - Answer A Explanation Choice B would help improve subsequent phases, but would do nothing for control and deliverables. Choice C would help control each phase, but would not control the integration of the phases into a cohesive whole. Choice D would help, but not help both control and deliverables for each phase. Effective project management requires a life cycle approach to running the project. Choice A is the only answer that covers both control and deliverables. A project team is working on manufacturing a new product, but they are having difficulty creating a project charter. What is the BEST description of the real problem? A. They have not identified the project objectives. B. They are working on a process and not a project. C. The end date has not been set. D. They have not identified the product of the project. - Answer: B Explanation This work has entered the manufacturing stage. Manufacturing is generally considered a process, not a project, as it is not temporary. A project charter will not be appropriate here. One of your team members informs you that he does not know which of the many projects he is working on is the most important. Who should determine the priorities among projects in a company? A. The project manager B. The project management team C. The project management office D. The team - Answer C Explanation Because the question talks about priorities among projects, this cannot be the role of the project manager (choice A), the project management team (choice B), or the project team (choice D). A market demand, a business need, and/or legal requirement are examples of: A. Reasons to hire a project manager. B. Reasons projects are initiated. C. Reasons people or businesses become stakeholders. D. Reasons to sponsor a project. - Answer B Explanation These are all reasons projects are initiated. Operational work is different from project work in that it is: A. Unique B. Temporary C. On-going and repetitive. D. A part of every project activity. - Answer C Explanation Operational work is that which is ongoing to sustain an organization. Company procedures require the creation of a lessons learned document. Which of the following is the BEST use of lessons learned? A. Historical records for future projects B. Planning record for the current project C. Informing the team about what the project manager has done D. Informing the team about the project management plan - Answer A Explanation Notice that this question asks about the use of a tool of project management. Many people can learn from a book what a lessons learned document is, but questions like this can more readily be answered if you actually use the tool and know from experience its value. Ask yourself about the other tools of project management. Why are they beneficial? The BEST use of lessons learned is choice A. There are other tools that are better for accomplishing the things listed in the other choices. Lessons learned are BEST completed by: A. The project manager. B. The team. C. The sponsor. D. The stakeholders. - Answer D Explanation The best answer is stakeholders, as their input is critical for collecting all the lessons learned on each project. The term stakeholders includes all the other groups. Consideration of ongoing operations and maintenance is crucially important to products of projects. Ongoing operations and maintenance should: A. Be included as activities to be performed during project closure. B. Have a separate phase in the project life cycle, because a large portion of life cycle costs is devoted to maintenance and operations. C. Not be viewed as part of a project. A project is temporary with a definite beginning and end. D. Be viewed as a separate project. - Answer C Explanation Remember the definition of a project: temporary and unique. Operations and maintenance are considered on-going activities, not temporary. Therefore, such work is not considered a project or part of a project. What is a program? A. An initiative set up by management B. A means to gain benefits and control of related projects C. A group of unrelated projects managed in a coordinated way D. A government regulation - Answer B Explanation Did you select choice C? If so, you missed the word unrelated:' Programs are groups of related projects. A company is making an effort to improve its project performance and create historical records of past projects. What is the BEST way to accomplish this? A. Create project management plans B. Create lessons learned. C. Create network diagrams D. Create status reports - Answer B Explanation Lessons learned help to avoid future pitfalls and use the good ideas of past projects. This leads to improvements in future projects. Project Management Processes CHAPTER THREE In which project management process group is the detailed project budget created? A. Initiating B. Before the project management process C. Planning D. Executing - Answer C Explanation Notice the use of the word "detailed." Such a budget is created during the planning process group. The project charter is created in which project management process group? A. Executing B. Planning C. Closing D. Initiating - Answer D Explanation The project charter is needed before planning and execution of the work can begin. The project team has just completed the initial project schedule and budget. The NEXT thing to do is: A. Identify risks. B. Begin iterations. C. Determine communications requirements. D. Create a bar (Gantt) chart. - Answer C Explanation Communications requirements and quality standards are needed before risks (especially risks relating to communications and quality) can be determined (choice A). Iterations (choice B) cannot begin until the risks are identified, qualified, quantified, and responses developed. These then create the need to revise the WBS and other parts of the project management plan. A bar chart (choice D) would have been done during the creation of the schedule, so it cannot be the next thing. Of the choices listed, determine communications requirements (choice C) is the best. A detailed project schedule can be created only after creating the: A. Project budget. B. Work breakdown structure. C. Project management plan. D. Detailed risk assessment. - Answer B Explanation In the project management process, the project budget (choice A), project management plan (choice C), and detailed risk assessment (choice D) come after the schedule. The only answer that could be an input is the WBS. The person who should be in control of the project during project planning is the: A. Project manager. B. Team member. C. Functional manager. D. Sponsor. - Answer A Explanation The project manager should be named early in the project, during project initiating if possible. Which of the following is NOT an input to the initiating process group? A. Company processes B. Company culture C. Historical WBSs D. Project scope statement - Answer D Explanation Notice the question asks which is NOT an input to the initiating process group. Did you read it correctly? The project scope statement (choice D) is an output of the planning process group. Did you select choice A? Companies should have processes in place for hiring resources, reporting, and managing risks on projects (to name only a few). Does yours? The project sponsor has just signed the project charter. What is the NEXT thing to do? A. Begin to complete work packages. B. Verify Scope. C. Start integrated change control. D. Start to create management plans. - Answer D Explanation The project charter is created during the initiating process group. Therefore the question is asking what is done next in either the initiating process group or the planning process group. For this type of question, you should look for the choice that occurs closest to the process group you are in. Choice A is done during the executing process group. Choices Band C are done during the monitoring and controlling process group. Choice D is the best choice, as it is part of the planning process group. The high-level project schedule constraints have just been determined. What project management process group are you in? A. Initiating B. Planning C. Executing D. Monitoring and controlling - Answer A Explanation High-level project constraints are determined during the initiating process group. The WBS and WBS dictionary are completed. The project team has begun working on identifying risks. The sponsor contacts the project manager, requesting that the responsibility assignment matrix be issued. The project has a budget of US $100,000 and is taking place in three countries using 14 human resources. There is little risk expected for the project, and the project manager has managed many projects similar to this one. What is the NEXT thing to do? A. Understand the experience of the sponsor on similar projects. B. Create an activity list. C. Make sure the project scope is defined. D. Complete risk management and issue the responsibility assignment matrix. - Answer B Explanation Look at the order of planning the project the team has chosen. Though understanding the experience of the sponsor (choice A) might sound like a good idea, the sponsor is a stakeholder and understanding the stakeholders is part of stakeholder analysis. That should have occurred before the creation of a WBS. In planning the project, the project scope is defined (choice C is another way of saying finalize the project scope statement) and would come before creating a WBS. Choice D cannot be best, as that work does not come next in the process. Other work, like creating a network diagram, should be completed before risk management can effectively be done. The only correct choice is the activity list (choice B). A project manager does not have much time to spend planning before the mandatory start date arrives. He therefore wants to move through planning as effectively as possible. Which of the following would you recommend? A. Make sure you have a signed project charter and then start the WBS. B. Create an activity list before creating a network diagram. C. Document all the known risks before you document the high-level assumptions. D. Finalize the quality management plan before you determine quality metrics. - Answer B Explanation This question is asking which of the choices is the most effective way to move through the planning process. Choice A skips the important steps of defining the scope and other activities. High-level assumptions are determined prior to risk identification in the planning process, making choice C incorrect. Metrics are part of the quality management plan, making choice D incorrect. Choice B is best, as the activity list is created immediately before the network diagram. The BEST time to assign a project manager to a project is during: A. Executing. B. Closing. C. Initiating. D. Planning. - Answer C Explanation The project manager must be assigned during initiating. A project manager gets a call from a team member notifying him that there is a variance between the speed of a system on the project and the desired or planned speed. The project manager is surprised because that performance measurement was not identified in planning. If the project manager then evaluates whether the variance warrants a response, he is in what project management process? A. Initiating B. Executing C. Monitoring and controlling D. Closing - Answer C Explanation Even though the measurement was not identified in planning, the project manager would still have to investigate the variance and determine if it is important. Therefore, the project manager is in the project monitoring and controlling process group. A team member notifies the project manager that the activities comprising a work package are no longer appropriate. It would be BEST for the project manager to be in what part of the project management process? A. Corrective action B. Integrated change control C. Monitoring and controlling D. Project closing - Answer C Explanation If you chose another part of the project management process, you probably forgot that the situation needs to be evaluated by the project manager before recommending a change or entering integrated change control. During a team meeting, a team member asks about the measurements that will be used on the project to judge performance. The team member feels that some of the measures related to activities assigned him are not valid measurements. The project is BEST considered in what part of the project management process? A. Closing B. Monitoring and controlling C. Executing D. Initiating - Answer C Explanation This situation does not describe an actual measurement (a monitoring and controlling activity) but rather a meeting occurring during project executing talking about control issues. Which of the following would be the MOST appropriate thing to do during the initiating process group? A. Create a detailed description of the project deliverables. B. Get familiar with the company culture and structure as it relates to the project. C. Identify the root cause of problems. D. Ensure all project management processes are complete. - Answer B Explanation Choice A occurs during the planning process group as part of creating the project scope statement. Since you must already have problems in order to determine their root cause, choice C must occur during the monitoring and controlling process group, not initiating. Choice D occurs during the closing process group. Which of the following is a characteristic of project management processes? A. Iterative B. Unique C. Unnecessary D. Standardized - Answer A Explanation As the project life cycle progresses, more information becomes available, allowing the team to manage the project to a more detailed level. Which project management process group normally takes the MOST project time and resources? A. Planning B. Design C. Integration D. Executing - Answer D Explanation Doing the actual work will normally take the MOST project time and resources. All of the following must be performed during project initiating EXCEPT: A. Identify and document business needs. B. Create a project scope statement. C. Divide large projects into phases. D. Accumulate and evaluate historical information. - Answer B Explanation A project scope statement (choice B) is generally created in project planning. Closure includes all of the following EXCEPT: A. Determining performance measures. B. Turning over the product of the project. C. Documenting the degree to which each project phase was properly closed after its completion. D. Updating the company's organizational process assets. - Answer A Explanation Performance measures are determined earlier in the project so they can be used to measure progress during the project, making choice A the only correct answer to this question. The first phase of your project has come to an end. What should you ensure is done BEFORE beginning the next phase? A. Verify that the resources are available for the next phase. B. Check the project's progress compared to its baselines. C. Confirm that the phase has reached its objectives, and have its deliverables formally accepted. D. Recommend corrective action to bring the project results in line with project expectations. - Answer C Explanation A phase or project must be formally closed and accepted. In which process group does the team measure and analyze the work being done on the project? A. Initiating B. Executing C. Monitoring and controlling D. Closing - Answer C Explanation During the monitoring and controlling process group, project performance is measured, and needed changes are identified and approved. Which process groups must be included in every project? A. Planning, executing, and closing B. Initiating, planning, and executing C. Initiating, planning, executing, monitoring and controlling, and closing D. Planning, executing, and monitoring and controlling - Answer C Explanation All five process groups are addressed in each project. It is the responsibility of the project manager to determine the level of attention to give to each process group. Control Schedule, Report Performance, and Administer Procurements are parts of which process group? A. Initiating B. Planning C. Executing D. Monitoring and controlling - Answer D Explanation All of these processes are part of monitoring and controlling. Which process group focuses on completing the requirements of the project? A. Initiating B. Planning C. Executing D. Closing - Answer C Explanation The executing process group is where work is done to produce the product of the project. All of the following occur during the planning process group EXCEPT: A. Develop Project Charter. B. Create WBS. C. Estimate Costs. D. Sequence Activities. - Answer A Explanation Develop Project Charter (choice A) occurs in the initiating process group. Integration Management CHAPTER FOUR - Integration Management CHAPTER FOUR Effective project integration usually requires an emphasis on: A. The personal careers of the team members. B. Timely updates to the project management plan. C. Effective communications at key interface points. D. Product control. - Answer C Explanation This question is asking for the most important of the choices. Think about what is involved in integration: project management plan development, project management plan execution, and integrated change control. In order to integrate the project components into a cohesive whole, communication is key when one activity will interface with another, one team member will interface with another, and any other form of interfacing will occur. Choices Band D are parts of the monitoring and controlling process group, while integration includes more than control. Choice A falls under project management plan execution. The need for is one of the major driving forces for communication in a project. A. Optimization B. Integrity C. Integration D. Differentiation - Answer C Explanation The project manager is an integrator. This is a question about your role as an integrator and communicator. Which of the following describes the BEST use of historical records from previous projects: A. Estimating, life cycle costing, and project planning B. Risk management, estimating, and creating lessons learned C. Project planning, estimating, and creating a status report D. Estimating, risk management, and project planning - Answer D Explanation Historical records are not generally used for life cycle costing (choice A), lessons learned (choice B), or creating status reports (choice C). When it comes to changes, the project manager's attention is BEST given to: A. Making changes. B. Tracking and recording changes. C. Informing the sponsor of changes. D. Preventing unnecessary changes. - Answer D Explanation Project managers should be proactive. The only proactive answer here is preventing unnecessary changes. A project manager has managed four projects for the company and is being considered to join the project management office team. The following is discovered during the evaluation of his performance. The project manager's first project had an ending cost variance of -500, used two critical resources, needed to rework the project charter during project executing and was ranked 14th in priority within the company. The second project finished with a schedule variance of +100, was completed with a vastly compressed sc