Total Questions: 370 MODULE QUIZ ANSWER KEY. Fundamentals 1 & 2

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1 Fundamentals 1 & 2 1. Answer: B Process Group. Each project management knowledge area is subdivided into specific process group, each of which is characterized by their inputs, tools and techniques, and outputs. 2. Answer: D Project management. The question refers to the specific definition of project management as provided in the PMBOK Guide, 5th edition, Page Answer: C Performance measurement criteria. This is an example of an organizational process asset. Enterprise environmental factors are those internal and external factors that surround and influence project success. Organizational process assets include policies, procedures, templates and other items that will assist in guiding the completion of project work. Refer to pages 27 and 29 in the PMBOK Guide, 5th edition. 4. Answer: B Sponsor. The sponsor provides the financial resources and is considered to be a key stakeholder. The customer or user is considered to be the recipient or end user of the product of the project. Refer to page 31 of the PMBOK Guide, 5th edition. 5. Answer: A Stakeholder identification will continue throughout the project life cycle. As the project proceeds through each phase, additional stakeholders may become involved while others will be released. Stakeholder identification is conducted primarily by the project management team but some stakeholders may be identified in the project charter. Stakeholders may include people and organizations that may be affected either negatively or positively by the project outcome. 6. Answer: B At the conclusion of a project phase the project manager and team should assess the performance of the project and determine if acceptable conditions exist to support a decision to move forward or discontinue the project. Risk levels will vary as the project progresses and the end of a phase is generally considered to be a good point to reassess risk. Project control procedures should be enforced throughout the project life cycle. Refer to page 39 of the PMBOK Guide, 5th edition. 7. Answer: A Cost and staffing is generally at the lowest levels during the startup and first phase of a project. Refer to page 40 of the PMBOK Guide, 5th edition. 8. Answer: A Progressive elaboration is defined as moving forward in increments and adding more detail as the project progresses. Project selection precedes the detail or progressive planning of a project. Monitoring and controlling is ongoing throughout the project lifecycle and is utilized during and after detailed planning and elaboration of the project. Decomposition is generally associated with the development of the work breakdown structure and refers to the breakdown of large items into smaller, more manageable components. 9. Answer: C Projects have some characteristics that are similar to operations. Projects and operations require resources, they are planned and scheduling is involved. Projects, however, are generally considered temporary, regardless of total scheduled time. Operations are ongoing and support the day to day functions of an organization. Refer to page 3 in the PMBOK Guide, 5th edition. 10. Answer: B This is a project to develop something new and unique and will have a defined end date. It is not part of operations, nor is it a program. The new product is separate from the existing product. Refer to pages 3 & 4 of the PMBOK Guide, 5th edition. 1

2 11. Answer: B The project manager s level of authority usually depends on the type of organizational structure. These structures include Functional, Matrix (Weak, Balanced and Strong), and Projectized. Communications skills and technical ability may affect level of authority in some organizations but managerial structure is generally the major factor. Refer to page of the PMBOK Guide, 5th edition. 12. Answer: A In a functional structure, people are grouped by technical expertise and are a assigned to one clearly defined manager. This establishes efficient internal operations and communications. The functional structure can create difficulties with communication between groups. Technical skills are not generally shared with other functional groups or operations. Functional work generally receives the highest priority. 13. Answer: D The project scope statement is an output of the Define Scope process and is part of the Planning process group. 14. Answer: C Project integration management combines all of the processes within the entire project life cycle through the five major process groups Initiating, Planning, Executing, Monitoring & Controlling, and Closing. 15. Answer: C Constraints are restrictions or limitations and must be managed throughout the project life cycle. Examples include resource availability, predetermined schedules and predetermined budgets. Framework 1. Answer: C 5 Process Groups, 47 Processes and 10 Knowledge Areas 2. Answer: A Initiating 3. Answer: B Planning 4. Answer: C Executing 5. Answer: D Monitoring & Controlling 6. Answer D Closing Integration Management 1. Answer: C Notice that this question uses the product life cycle, not the project life cycle. You will need to look out for this style of question and make sure you read it properly. The product lifecycle covers all aspects of the product from inception, design and manufacture to end of life, recycling and obsolescence. Monitoring and controlling are one of the five process groups. 2. Answer: B Program is correct because a program is a group of projects that are interrelated in some way. A project may be part of a program, but a program will always have projects. 2

3 3. Answer: C OPM3 stands for Organizational Project Management Maturity Model and part of the model is used to assess where on a scale an organization sits in relation to its adoption and application of project management practices. 4. Answer: B A project is differentiated from operational activity by the fact that it is designed to deliver a unique product within a specified time period where as operational work is ongoing and repetitive. 5. Answer: A A project Management Office is responsible for providing organization-wide project management support functions, including common standards, templates and processes. It is also responsible for project delivery. 6. Answer: B The questions provides a lot of information about net present value and the cost of each project but the only relevant information is the net present value because it is the recalculated cost. As a project manager you will always select the project with the highest Net Present Value. 7. Answer: A Change control procedure varies from project to project. However, every change request must be processes through a formal change control process. 8. Answer: A The Monitor and Control Project Work process is responsible for keeping track of the project s measures, including cost. 9. Answer: C Changes can occur in the project at any given time. The Perform Integrated Change Control process is valuable for managing and tracking those changes. 10. Answer: D To facilitate earned value management techniques, the project manager must establish project baselines from which overall progress and variances can be calculated and compared. 11. Answer: A Documented change requests must either be accepted or rejected by the change control board. If change requests are documented, it is implied that they must be reviewed. Deferring a change request is essentially a rejection. 12. Answer: C Important processes of configuration management are configuration identification, configuration status accounting, and configuration verification and auditing. Architecture configuration and control is vague relative to other options. 13. Answer: B Preventive actions are documented actions that aim to reduce the probability of negative consequences associated with project risks. Increasing the project budget to allow for some overrun on costs or increasing the reporting frequency on activities that are critical could be considered preventive actions. 14. Answer: C A CCB is necessary for all projects, large and small. The project manager does not typically head a CCB as it is at a higher level than the configuration management board. It is responsible for approving or rejecting changes to the project baselines. 15. Answer: D Transfer of finished and unfinished deliverables does not take place at the end of the key deliverable, at the end of contract, or as a result of a legal dispute. If the project was terminated prior to completion, the formal documentation indicates why the project was terminated and formalizes 3

4 procedures for the transfer of the finished and unfinished deliverables of the cancelled project to others. 16. Answer: C Project integration management combines all of the processes within the entire project life cycle through the five major process groups Initiating, Planning, Executing, Monitoring & Controlling, and Closing. 17. Answer: A The Project Charter is part of the initiating processes and provides the authorization to move forward. The project scope statement, the project plan, and work authorization process are developed after the charter has been approved. 18. Answer: B Generally project status meetings provide the project team and those stakeholders directly involved in project activities with up to date information about the project. Other stakeholders and higher level managers may receive information through formal reports or specifically scheduled meetings. Workarounds are temporary responses to an unplanned situation and generally require immediate action. 19. Answer: D Configuration management is considered a component of change control and is specifically associated with changes to features, functions and physical characteristics of a product or deliverable. 20. Answer: D The Project management information system is used to track project information and performance. These systems may be either manual or electronic. Such information kept by these systems can include the tracking of time worked, project costs, and other factors that would be communicated to project stakeholders. 21. Answer: B Assumptions documented during the project planning process are generally considered to be non-factual and require validation. 22. Answer: B The project plan is based on estimates, past experience of the project team, and other available information. Generally, the project plan is considered to be a guide that is expected to change 23. Answer: C The project management plan is a combination of several plans that provide overall guidance to the project team. These plans include Schedule Management, Scope Management, Cost management, Resources management and other depending on size and complexity of the project. 24. Answer: A Assumptions are not based on factual information and failure to validate may result is significant risk events. 25. Answer: C Constraints are restrictions or limitations and must be managed throughout the project life cycle. Examples include resource availability, predetermined schedules and predetermined budgets. 26. Answer: A The project management plan is a document that combines the results of all planning processes. Subsidiary plans, such as Time Management and Cost management are the outputs or results the planning processes. 27. Answer: D Subsidiary plans are the outputs of some of the other planning processes associated with Scope, Time, Cost, Quality, Human Resources, Communications, Risk, and Procurement management. Additional plans that can be added to the project management plan include Change 4

5 Management, Process Improvement, Requirements Management and Configuration Management plans. 28. Answer: B As described in the PMBOK Guide, Direct and Manage Project Work is the major process for carrying out the plan. Refer to page 61 of the PMBOK Guide, 5th edition, to review the five major process groups and the 47 project management processes. 29. Answer: C Perform Integrated Change Control includes all of the lower level processes and subsidiary plans that will be used to manage project change throughout the project life cycle. 30. Answer: D The most appropriate action to take in this case is to ensure that the research department fully understands the project scope of work, the change control process, and to determine why change requests continue to be submitted. 31. Answer: C The change control process should be followed by everyone on the project team. Failure to manage change effectively can result in significant scope creep and could result in serious implications and additional risk and liability. 32. Answer: A The change control process was not followed. Failure to follow the agreed upon change control processes may create serious risk situations and jeopardize the entire project. Stakeholder Management 1. Answer: D The stakeholder register is an output from the Identify Stakeholders process. 2. Answer: B It is doubtful that you would be able to document the personal conflict resolution style of stakeholders. Having a thorough stakeholder analysis completed early in the project is an effective aid into several processes. 3. Answer: C The stakeholder register contains all the information you know about all stakeholders on the project. 4. Answer: A a stakeholder analysis matrix lists the stakeholders, their potential impact and assessment and also potential strategies for dealing with any impact on the project. 5. Answer: D Managing stakeholder engagement is one of the most important processes a project manager can focus upon to contribute to project success. 6. Answer: B Communication with stakeholders represents a positive risk if done effectively and a negative risk if done poorly and as such, the communications management plan is an important input in to the Manage Stakeholder Engagement process. 7. Answer: B this question is asking about the types of organizational process assets updates that may be done as a result of Control Stakeholder Engagement process are being carried out. The specific organizational process assets that may be updated as a result of carrying this process out our stakeholder notifications, project reports, project presentations, project records, feedback from stakeholders, and lessons learned documentation. 8. Answer: A Status meetings provide a forum to discuss information about stakeholder engagement. 5

6 9. Answer: C The lessons learned and the project templates are not enterprise environmental factors, but organizational process assets. The commercial databases can provide only very limited information to develop the stakeholder management plan. During the Plan Stakeholder Management process, the organization s culture and structure are of particular importance. 10. Answer: B For any project it would be ideal if all of the key stakeholders were supportive. This would help ensure smooth project progress and timely resolution of issues. In practice, this is often unachievable; nevertheless, it is the most desirable state for all major stakeholders. On the other hand, if all key stakeholders assume a leading role, this could lead to serious and substantial conflicts. 11. Answer: B The core objective for stakeholder engagement management is to ensure that the project stakeholders are kept satisfied and that their expectations are being met throughout the course of the project. Keeping the project team members motivated and using a consistent project management methodology are generic objectives of project management. 12. Answer: C In this scenario, the CFO is a resistant key stakeholder. The CFO must be turned into a project supporter in order to ensure success. Any of the given choices could be the solution to this problem. However, Sarah should first identify all of the available options and analyse them before selecting the best option. 13. Answer: B The stakeholder management plan should be reviewed regularly. Since some of the resistant project stakeholders have now become project supporters, this implies that the current stakeholder classification in the stakeholder management plan is no longer accurate. These stakeholders should now be transferred to the project supporters group, and going forward stakeholder management strategy defined for project supporters should be adopted for these stakeholders. Although, the stakeholder management strategy for the resisting stakeholders has delivered impressive results, it should only be applied to the current resistant stakeholders. 14. Answer: D A power/interest grid plots the relative power and interest each identified stakeholder has in your project. 15. Answer D: Is the best response. Manage stakeholder engagement includes activities related to communicating and working with stakeholders in an effort to meet their requirements and expectations, as well as address any issues arise throughout the project. 16. Answer: C In this case the communications plan and the communications requirements analysis may not have included all Key stakeholders. Informing the stakeholder of the date of the change does not resolve the situation and it may occur again. The existing communications plan may not be complete and explaining stakeholder responsibility without ensuring the process has been agreed upon could result in conflict. Addressing a communications issue during steering committee meeting may assist will not resolve a problem until the communications plan is reviewed and updated as needed. 17. Answer: C The salience model addresses stakeholder power, urgency and legitimate involvement in a project. The Power and interest grid assists in determining the level of influence and interest a stakeholder may have on the planning and outcome of the project. The RAM, Responsibility Assignment Matrix, connects project stakeholders with work breakdown structure components. The stakeholder register is an output of stakeholder analysis. Refer to page 262, PMBOK Guide, 5th edition. 6

7 18. Answer : C - Each and every person in the customer organization may not necessarily be a stakeholder. There may be members of the organization who are not connected with the project at all. 19. Answer: B - Stakeholder management involves processes required to identify stakeholders, analyze their expectations and to develop appropriate strategies to engage them. It does not necessarily mean keeping everybody happy (which may not even be possible). 20. Answer: C - The stakeholder can be interested in a project or be in a position to influence the project. As such, both are important for the project to understand. 21. Answer: A - The strategy for stakeholders who are low on the power-interest grid is Monitor. 22. Answer: C - Stakeholder engagement assessment matrix, which is a tool and technique of the Plan stakeholder management process, is a tool to assess the engagement levels of the stakeholders on a project. 23. Answer: A - Stakeholder register is an input to the plan stakeholder management process. 24. Answer: C - Confrontation is most likely to result in a permanent resolution. All the others involve both parties giving something up. 25. Answer: C - Critical path is the longest path from start to finish. 26. Answer: B - Involving the stakeholders in the project work is a good way to get them to support the project. Simply sending them reports seems a passive way of engaging. 27. Answer: D - Inter-personal skills is an important technique used in the manage stakeholder engagements process. 28. Answer: B - These are all activities typical of managing stakeholder engagements. 29. Answer: B - Issue log is an input to the control stakeholder engagements process. 30. Answer: C - A project manager needs to take cognizance of the significance of the findings and must consult the experts before proceeding further. Activities other than excavation may continue. Scope Management 1. Answer: B Project charter, project stakeholders, and work breakdown structure are not included in the detailed project scope statement. They are produced either before or after completing the scope definition. The product scope description is included in the detailed project scope statement, together with product acceptance criteria, deliverables, exclusions, and constraints. 2. Answer: C Scope control activities do not produce as an output accepted deliverables, project scope management plan, or approved changes The Control Scope process can generate change requests, which are processed for review and disposition according to the Perform Integrated Change Control process. 3. Answer: A The test element that checks for activities is inaccurate because the focus of the question is on the correctness of the deliverable decomposition, not the details of the work required to deliver them. 7

8 4. Answer: D It is not possible to make detailed estimates of costs this early in a project. Detailed cost estimates should be expected in the Planning Process Group. 5. Answer: B The project charter is the founding document for the project and the best pace to look for original descriptions. At the time it is developed, agreed and approved, generally only high level information about the project requirements and product description is known. 6. Answer: B As a project manager when you undertake the process of decomposition to complete your work breakdown structure, you breakdown the deliverables into smaller, more manageable components. The smallest level in the WBS is the work package. A work, package can be further divided into activities but this is beyond the work breakdown structure. 7. Answer: C You are completing the Validate Scope process, which is part of the monitoring and controlling process group. 8. Answer: C You use your project performance measurements to assess the difference between what the scope originally said and what it is now doing. This must always be reflected in the scope baseline. 9. Answer: A The Pareto chart is not a Group Creativity Technique. The others are valid techniques; additional techniques are brainstorming and the Delphi Technique. 10. Answer: B Singularity is not a valid method to reach a group decision. The other choices are valid methods to reach a group decision. 11. Answer: A The work breakdown structure is finalized by establishing control accounts for the work packages and a unique identifier from a code of accounts. This provides a structure for hierarchical summation of costs, schedule and resource information. 12. Answer: C Carl should initiate the third phase of the project. He does not need to revisit Develop Project Charter process. However, he should revisit Identify Stakeholders process to determine any change in the stakeholders for the third phase of the project. Stakeholder Identification is a continuous process. 13. Answer: A Inspection entails measuring, examining, and verifying that the project deliverables adhere to the requirements. 14. Answer: C The project management team is responsible to taking the project charter and creating a project scope statement. They are considered key stakeholders; all stakeholders should provide input to the project scope statement. 15. Answer: B Stakeholder analysis is correct because it is likely that some of the stakeholders requirements were not incorporated into the scope definition of the project, resulting in deliverables missing from the work breakdown structure and the project schedule. 16. Answer: B The project charter authorizes the project but is not a detailed plan. The statement of work generally precedes a contract and provides a narrative description of work to be completed. The project plan is derived from the project scope statement. The scope statement answers the questions of what, why, who, where, how and in combination with the work breakdown structure provides a detailed description of what must be accomplished. 8

9 17. Answer: A Generally, if a project manager is assigned, the project has been approved and authorized. Project selection processes will determine if a project should be approved. The selection of a project manager indicates that planning will begin soon. The scope of the project will be determined during the planning process and verified as the project progresses. 18. Answer: A The project manager should understand the purpose and functions of the product and the needs of the organization that will receive the product. 19. Answer: C This is the essence of progressive elaboration. Scope definition and decomposition are included in the broad definition of progressive elaboration. Rolling Wave planning is a form of progressive elaboration. 20. Answer: C The work breakdown structure is developed after the project scope statement has been defined and accepted. 21. Answer: B Decomposition is the specific process used to develop a detailed work breakdown structure. 22. Answer: A The Define Scope process produces a detailed description of the project and product. The result is the project scope statement, which provides a basis for more detailed planning. Product analysis is included in the define scope process. Cost/Benefit analysis is generally associated with project selection. Initiation precedes the detailed planning process. 23. Answer: A The project charter does not provide project details. The work breakdown structure is developed from the information in the Scope Statement. The work breakdown structure dictionary provides detailed information about elements of the work breakdown structure. 24. Answer: A Product scope refers to the complexity of the product in terms of features, functions, and physical characteristics. Project requirements, project objectives, and the scope statement are associated with project scope. 25. Answer: D Answers A and B are associated with components of a work breakdown structure. The work breakdown structure is a deliverable-oriented grouping of components but the work package is the lowest level deliverable in a branch of the work breakdown structure and contains several activities or an activity list. 26. Answer: C The appropriate action when change requests are submitted is to follow the established and agreed up change control process. 27. Answer: C Verifying the correctness of work is associated with quality management and scope verification. 28. Answer: C Scope creep is the general term used to describe work that has been added to the project scope without proper authorization. 29. Answer: B Inspection of products may be accomplished through reviews, audits and walk-through visits. Walk-throughs are commonly associated with projects that produce physical deliverables that can be observed and tested. Formal acceptance usually follows a successful inspection. Internal failure results from non-conformance to processes. 9

10 30. Answer: B The scope baseline is an output of Create WBS. The project charter initiates the project and provides high level information. Alternatives identification does not provide detailed descriptions of project work. 31. Answer: A The scope baseline is an output of the Create work breakdown structure process. Page 131 PMBOK Guide, 5th edition. 32. Answer: A The work breakdown structure dictionary provides the project team with more detailed information about components of the work breakdown structure. Page 132 PMBOK Guide, 5th edition. 33. Answer: D The scope statement is not an executive summary. The project charter authorizes the project. It does not include all of the information needed to develop a complete cost estimate. The scope statement does define the project in detail and includes descriptive acceptance criteria. 34. Answer: D The correct action is to analyze the change and determine the potential impact on other area of the project. Impact analysis is a key factor in project change control. Time Management 1. Answer: B As a project manager when you developed the WBS your process of decomposition went down to a level where the element of the scope could be accurately estimated for duration and cost. The next step in the decomposition process is to break it down into activities. 2. Answer: C Finish-to-start means that the successor activity can t start until its predecessor activity is finished. Most activities have this sort of relationship. Very few have start-to-finish relationships which mean that the successor activity can t finish until its predecessor activity starts. 3. Answer: C Analogous estimating involves using information from similar projects to estimate elements of your project and is generally less costly and time consuming than other techniques. 4. Answer: D The first iteration of the project network schedule diagram is an output of the Sequence activities process. 5. Answer: A The comprehensive summary activity that is displayed in bar chart reports for control and management communication is called the hammock activity. 6. Answer: A The difference between the early and late finish of a task is called the total float for that task. Total float is the amount of time that scheduled activity can be delayed from its early start date without delaying the project finish date. 7. Answer: D A calendar is a calendar of working days or shifts that establishes those dates on which schedule activities are worked. It also establishes non-working days that determine dates on which schedule activities are idle, such as holidays, weekends and non-shift hours. 8. Answer: C Resource levelling can often cause the original critical path to change. 10

11 9. Answer: A Schedule performance index (SPI) = earned value (EV)/planned value (PV) = The project is 80 percent on schedule, meaning the project is 20 percent behind. Therefore, corrective actions most likely will be required to bring the project back on track. The other options are incorrect. 10. Answer: C The schedule baseline is the approved and signed-off version of the schedule. 11. Answer: B Estimating, budgeting, and cost control processes make up the Project Cost Management knowledge area. Project Risk Management is focused on risks, not solely on costs. Schedule Management concerns the duration and dependencies of tasks. Project Human Resource Management involves identifying necessary resources and checking that they are available. 12. Answer: A EV = Earned Value, SV = Schedule Variance, PV = Planned Value In the question: PV = 5 weeks, EV = 3 weeks SV = EV PV = 3 5 = -2 weeks Percentage of Variance = Scheduled Variance / Planned Value = 2/5 = 40% 13. Answer: C A good example to remember for the inability to divide the work between additional resources is that nine pregnant women cannot bear a child in one month. Screen development and data modelling are clearly distinct. One painter can paint two walls and another painter the other two walls. Different researchers can each be responsible for one of the experiments. However, it is not practical to have more than one person working in a 25 x 20 inch area. Therefore, it will be difficult to shorten the duration of this task even if additional resources are available. 14. Answer: B A what-if scenario analysis runs through all the different outcomes if a particular scenario occurs. This level of information can assist with many types of estimating to get the full range of possibilities. 15. Answer: A The landscaping work needs to start on completion of the office building, so it is a finishto-start relationship. Since it needs to start 15 days before completion of the building, it requires a lead of 15 days. Hence, the answer is finish-to-start with a 15 day lead. 16. Answer: C Sequence activities, activity duration estimates, and estimating resources provide the inputs to the develop schedule process. Page 141 PMBOK Guide, 5th edition. Time management overview. 17. Answer: D Decomposition is included in the tools and techniques of the define activities process. 18. Answer: D Mandatory dependencies are also known as hard logic and are generally inherent in the nature of the work. Discretionary, soft logic, and preferential are generally associated with best practices. 11

12 19. Answer: B Fast tracking involves performing activities in parallel (overlapping) rather than in series (one after the other). Crashing involves the use of overtime or additional resources. Leveling redistributes work and may result in an increase in project schedule. Monte Carlo technique is generally associated with risk management and is used to determine probable project outcomes or results. 20. Answer: A Use the formula (optimistic + 4 times the most likely + pessimistic) divided by 6 {8 + 4(12) + 24} / 6 = Answer: C Crashing, which is adding resources or using overtime, may reduce the duration of an activity. Resource leveling is used when a resource has been over allocated. Heuristics is a term associated with generally accepted information or common knowledge. CPM refers to Critical Path Method. 22. Answer: B Lag introduces delay between predecessor and successor relationships and is usually associated with a physical requirement. Allowing concrete to cure is a common example of lag. Lead is used to accelerate a network path. Float and slack or measures of flexibility in a project schedule. 23. Answer: C Refer to page 156 PMBOK Guide, 5th edition. 24. Answer: D Change requests are an output of the control schedule process. 25. Answer: C Critical chain method identifies the weak links in the project schedule and utilizes buffers to manage the schedule. Refer to page 178 of the PMBOK Guide, 5th edition. 26. Answer: A ADM can only show Finish to start dependencies. 27. Answer: A CPM Critical Path Method and utilizes the forward and backward pass to determine early start, early finish, late start and late finish of each activity. Monte Carlo simulation is a quantitative risk analysis technique. Activity duration estimating precedes the development of the project schedule. 28. Answer: C A constraint is a limitation. Predetermined dates limit options and eliminate alternatives. 29. Answer: D An analogous estimate, a top down estimating technique, can generally be developed quickly. It is not intended to become the final estimate. It range of reliability can be extreme. A bottom up estimate requires significant time to prepare. A PERT estimate, also known as a weighted average estimate is usually associated with specific project activities. 30. Answer: D Free float is the amount of flexibility between the early finish of an activity and the early start of its immediate successor activities. Free float allows an activity to slip for a period of time before affecting its immediate successor. 31. Answer: B An external dependency is related to a non-project activity and is considered outside the control of the project team. 32. Answer: C The scope baseline is an input to the define activities process. Page 149 PMBOK Guide, 5th edition. 12

13 33. Answer: A A project network diagram is produced when the logical relationships of all project activities have been defined. The work breakdown structure and resource breakdown structure do not display logical relationships. 34. Answer: D 35. Answer: C 36. Answer: B 37. Answer: B Generally, after a work breakdown structure has been developed and the work packages fully defined, the project team will develop a network diagram as predecessor and successor relationships are established. 38. Answer: C Overlapping is referred to as fast tracking and can introduce risk into the project. Generally, activities are not removed and the scope is not changed. Crashing involves the addition of resources or the use of overtime and will usually increase project cost. 39. Answer: B Start to Start 40. Answer: A Answer: B Answer: D 11 Cost Management 1. Answer: C During the initial stages of the project, the amount of information available will be limited. Therefore, a Rough Order of Magnitude (ROM) estimate is usually prepared, and it should have an accuracy range of -25% to +75%. 2. Answer: B The CPI is given by the formula CPI = EV/AC where EV is Earned Value and AC is the Actual Cost. Since 50% of the project is complete, EV = 50% of $50,000 = $25,000. Hence CPI = $25,000/$50,000 = Answer: A Interpersonal skills is not a valid choice. The other three choices are analytical techniques. 4. Answer: A The correct response is an S-curve. The cost performance baseline is a time-phased budget and is used as a basis to measure, monitor, and control overall cost performance of the project. It is usually displayed in the form of an S curve and is developed by summing estimated costs by period. 5. Answer: D Although the Earned Value technique of determining the balance work in the project is quick and straightforward, it is not as valuable or accurate as the manual forecasting of the remaining work by the project team. However, manual forecasting is more time-consuming. 13

14 6. Answer: C The three point estimating technique, or PERT analysis, uses a weighted average method to arrive at what should be a more accurate estimate. In this case the correct answer is (15+ (4x25) +70)/6 = Answer: B The process of controlling costs is one of the more technical processes to understand for the PMI exam as it includes the earned value tools and techniques. 8. Answer: C Schedule Variance (SV) = Earned Value Planned Value SV = 15,000 20,000 = -5, Answer: A The percent complete is the work completed, or the earned value divided by the total work to be done. EV/BAC = 24/97 = 25% 10. Answer: A A CPI below 1 tells you that you are experiencing a cost overrun on the project. This is true for the SPI measurement as well. 11. Answer: D QC is part of prevention and appraisal costs (cost of non-conformance). In contrast, costs of non-conformance include costs associated with expenses after the fact such as rework, warranty, or reputational loss due to defects. 12. Answer: B Cost budgeting involved allocating the overall cost estimates to individual activities or work packages to establish a cost baseline for measuring project performance. Cost budgeting is tied to the Determine Budget process but it is not used as a basis for project contingency reserve. 13. Answer: B For month 1, the CPI = EV/AC = 1,000,000/1,250,000 = The statement that CPI at the end of the month 1 is 1.25 is not correct. A CPI value less than 1 indicated a cost overrun of the estimates, and a CPI value of more than 1 indicates a cost under run; hence, at the end of Month 1, the project is behind schedule and over budget. At the end of Month 1, Schedule Variance (SV) = EV PV = $1,000,000 - $1,100,000 = -$100,000, which is true. It is false to state the CPI at the end of Month 1 is Answer: B Direct labour costs, overhead costs, and material costs are inputs to cost budgeting. Sunk costs are costs that have been incurred and that cannot be recovered; therefore, they are not part of the cost budgeting process. 15. Answer: D Human Resource plan is an input to Estimate Costs. 16. Answer: D Cost variance = EV AC = = Answer: B Parametric estimating uses statistical relationships such as cost, duration, and labor rates. Refer to page 205, PMBOK Guide, 5th edition. 18. Answer: B The cost baseline is an output of the Determine Budget process. Refer to page 208 PMBOK Guide, 5th edition. 19. Answer: C Estimate Costs. Pricing/Costing is associated with business decisions related to profit margins. Alternatives analysis refers to considering other options about how to develop and or produce the project s deliverables. Risk assessment is included in the process of estimating costs. 14

15 20. Answer: C Employee benefits, taxes, rent, maintenance are generally considered indirect project costs. 21. Answer: C In this example the EAC = AC + BAC EV = 200, , ,000 or 400, Answer: A A bottom up estimate will produce a definitive estimate. Order of magnitude, parametric and analogous estimates are considered to be top down and have a wide range of probable outcomes. 23. Answer: D The law of diminishing returns states that the incremental return from adding resources will reduce as we go on adding resources 24. Answer: A Generally, opportunity cost is experienced when funding has been assigned to a specific project and a more desirable project opportunity develops. The greater opportunity is missed due to the commitment of capital resources to a previously selected project. The best alternative is not chosen. 25. Answer: C The allocation of the aggregated project cost across the project life cycle is referred to as the time phased budget. Refer to page 209 PMBOK Guide, 5th edition. Estimate at Completion is a forecast of the final project budget based on current performance. The cost control plan provides a method to manage cost changes and identify cost variances. The project schedule displays project activity duration over time and provides an estimate of the total duration of the project life cycle. 26. Answer: B Earned value analysis provides a means to determine cost and schedule variances. Refer to page 215 PMBOK Guide, 5th edition. 27. Answer: C A CPI greater than 1 indicates that the project is performing under budget. An SPI that equals 1 indicates that the project is performing at planned levels (on schedule). 28. Answer: B Earned value greater than planned value indicates the project is ahead of schedule. Actual cost greater than earned value indicates the project is over budget. Refer to page 218 PMBOK Guide, 5th edition. 29. Answer: D The typical project lifecycle begins with low cost and staffing. As the project progresses, costs increase. The project will reach a point when maximum resources are applied and then resources will be systematically released as the project reaches closure. Refer to page 40 PMBOK Guide, 5th edition. 30. Answer: A The TCPI is the level of performance that must be achieved if the CPI falls below 1 and the project BAC must be met. Refer to page 221 PMBOK Guide, 5th edition. 31. Answer: A ROI = Average profit/ average cost x 100 The average profit is 12 million / 6 or 2 million per year. 2million / 6 million = 33% 32. Answer: B Earned value management is generally associated with large, long term projects. Earned value management provides a means to determine project performance at any point in the project life cycle and also provides an opportunity to forecast the possible outcome of the project in terms of cost and schedule. 15

16 Quality Management 1. Answer: B Failure mode and effect analysis (FMEA) is one of several non-proprietary approaches to quality management. 2. Answer: C Kaizen mean improvement in Japanese. It means continuing improvement involving everyone, including managers and workers, alike, from the top to the bottom of the organization. 3. Answer: C Plan Quality Management is the process of identifying quality requirements and standards for both the project and product. 4. Answer: A Control limits are generally set at 3 standard deviations above and below the acceptable mean of data. 5. Answer: C Quality checklists are an output, not a tool, from the Plan Quality Management Process. 6. Answer: D The upper control limit is part of the control chart tool and it is not a quality metric. 7. Answer: B Inspection is not one of Ishikawa s seven tools of quality. The 7 tools of quality according to Ishikawa are: cause and effect diagrams, control charts, flowcharting, histograms, pareto charts, run charts, and scatter diagrams. 8. Answer: C A pareto chart is a type of histogram that shows the rank ordering of defects by type of category so that corrective action can be focused in the correct place. 9. Answer: C A control chart shows the stability of a process over time. 10. Answer: D The process analysis includes root cause analysis. 11. Answer: A Benchmarking is the technique of comparing actual or planned project practices to those of other projects to generate ideas for improvement and to provide a basis by which to measure performance. 12. Answer: D The Design of Experiments is a method that plays a key role in optimization of products or processes. 13. Answer: B The correct response is cost of non-conformance. This includes all costs incurred due to internal and external failures. 14. Answer: D The WBS must contain all of the project and product work including the project management work. This is also called the 100% rule. 15. Answer: B Statistical sampling is the process of random selection and inspection of a work product. 16. Answer: C Products that are produced at an acceptable level of quality and meet the desired requirements of the customer but have limited functionality and features are referred to as low grade. Refer to page 228 of the PMBOK Guide, 5th edition. 17. Answer: A Quality management is integrated with many other project planning processes especially cost and time management. Initiation and work breakdown structure development are included in other planning processes. Refer to page 231 PMBOK Guide, 5th edition. 16

17 18. Answer: A A quality control plan should be utilized during development of the product. A cause and effect diagram is used to determine the root cause of a problem. The work breakdown structure is a key element of the planning process and assist in defining the work of the project. Checklists minimize the omission of important steps and operating errors. 19. Answer: C The scatter diagram is used to determine correlation between two sets of data. Refer to page 238 PMBOK Guide, 5th edition. 20. Answer: A Grade is a classification according to technical characteristics. 21. Answer: B Metrics are an output of Plan Quality and an input to Perform Quality Assurance and Perform Quality Control. Refer to pages 236 and 249, PMBOK Guide, 5th edition. 22. Answer: A Internal failure results in defects, repairs, scrap and rework. External failure is associated with quality issues experience by the customer. Cost of conformance refers to the cost incurred to ensure compliance. Appraisal costs are included in the cost of conformance. 23. Answer: B The fishbone diagram is also referred to as a root cause analysis tool. Pareto diagrams display the frequency of occurrence of identified problems. Scatter diagrams indicate a relationship between sets of data. Attribute sampling identifies deliverables that have failed to meet requirements. 24. Answer: B The quality plan defines the approach to managing quality and may include costs that will include in the project budget. The cost baseline is the final approved project budget. Total quality management is an approach to manage quality within an organization. Cost of quality includes all costs associated with preventing and correcting quality problems. Refer to page 235 PMBOK Guide, 5th edition. 25. Answer: C Inspection is part of quality control, which falls under monitoring and controlling process group. 26. Answer: D Design of experiments (Taguchi method) utilizes a process to determine the best mix of variables or ingredients to produce the desired result. Statistical sampling is performed after products have been produced. Brainstorming and Nominal Group technique are tools and techniques associated with defining requirements or identifying problems. Refer to Page 239 PMBOK Guide, 5th edition. 27. Answer: B A run is a set of data points displayed above or below the process average on a control chart. Generally, seven or more consecutive points above or below the process average but with the upper or lower control limits indicate process is out of control. A trend is a set of data points moving in a specific positive or negative direction. A random cause is considered normal and expected when analyzing processes and will result in some variation from the process average. An alpha risk is the associated with product sampling. 28. Answer: D Appraisal costs are associated with the cost of conformance and include inspections and reviews. 29. Answer: A Quality control is utilized to monitor and record results during execution of quality activities. Refer to page 248 PMBOK Guide, 5th edition. 17

18 30. Answer: B Joseph Juran emphasized continuous improvement, safety, and fitness for use. This means the product should perform as expected in terms of functionality and should be safe for use by the customer. 31. Answer: A A Pareto diagram is used to display errors or problems in the order of frequency of occurrence. A Run chart is a type of control chart. Scatter diagrams are used to determine if a relationship between exits between different sets of data. 32. Answer: D Using a fishbone diagram for root cause analysis is a tool or technique within the process of Control Quality. Perform Quality Assurance is about verifying compliance with quality policies and procedures. Process analysis is a tool and technique included within Perform Quality Assurance. Refer to page,243 PMBOK Guide, 5th edition. 33. Answer: C Expert judgment is not listed as a tool and technique for any of the Quality Management processes. Refer to page 249 PMBOK Guide, 5th edition. 34. Answer: D A quality audit is a review to determine if project activities comply with organizational policies and procedures. Refer to page 247, PMBOK Guide, 5th edition. 35. Answer: A Benchmarking is used to compare planned project practices with established best practices to generate improvement ideas and as a basis for reviewing performance. Benefit/Cost analysis determines if a project is worth accepting and implementing. Flow charting displays a process. Pareto diagrams display problems or errors. Refer to page 239, PMBOK Guide, 5th edition. HR Planning 1. Answer C: Acquisition is a tool or technique in the process Acquire Project Team. 2. Answer C: Project performance appraisal is carried out during the Manage Project Team process. PMBOK 5th Ed., Page Answer B: Lessons learned on organizational structures are used as inputs to the Plan Human Resources Management process. However, these are Organizational Process Assets and not Enterprise Environmental Factors. PMBOK 5th Ed., Page Answer C: The Resource Histogram is a tool for charting human resources and illustrates the number of hours that a person, department or entire project team will be needed each week or month over the course of the project. The chart can include line that represents the maximum number of hours from a particular resource. This can be used for a resource leveling strategy. PMBOK 5th Ed., Page Answer B: Conflict Management is a tool and technique of the Manage Project Team Process. The Control Procurements process has Claims Administration that somewhat relates to conflict management. PMBOK 5th Ed., Page Answer C: A manager with the hands-off attitude toward the project work and the team is considered Laissez Fair. 18

19 7. Answer B: The final steps of problem solving include: implement a decision, review it, and confirm that the decision solved the problem. 8. Answer D: Problem solving (also referred to as collaborating) normally takes more time, but it gets buy-in from everyone, generating a more lasting solution. 9. Answer B: Since the project objectives are stated in the project charter, and it is the sponsor who issues the project charter, helping to prevent unnecessary changes to project objectives is the correct answer. 10. Answer A: The Resource Breakdown Structure (RBS) is a hierarchical list of resources related by category and resource type that is used to facilitate planning and controlling of the resource until small enough to be used in conjunction with the Work Breakdown Structure (WBS) to allow the work to be planned, monitored and controlled. PMBOK 5th Ed., Page Answer C: A Resource Breakdown Structure is helpful in tracking project costs and can be aligned with organization s accounting system. It can contain resource categories other than human resources. PMBOK 5th Ed., Page Answer C: Co-Location also referred as Tight Matrix involves in placing many or all the most active project team members in the same physical location to enhance their ability to perform as a team. PMBOK 5th Ed., Page Answer D: Doing limited testing before integration and finishing testing after integration is an example of compromising. This is the best way for the project manager to resolve the conflict in this situation. 14. Answer A: Team performance assessments evaluate the project team s effectiveness as a whole. Project performance appraisals deal with how each team member is performing on the project. 15. Answer A: Theory Y is the belief that people can direct their own efforts. 16. Answer: D In the functional organizational structure, priorities are established by the functional manager. Projects are considered to be less important than functional work. Refer to page 22, PMBOK Guide, 5th edition. 17. Answer: D - The team normally goes through these stages of development. Forming - team gets formed, Storming - Disagreements start to emerge, Norming - They learn to reconcile and work as a unit, Performing - They start delivering results 18. Answer: C The understanding of power and politics enables the project manager to develop the appropriate approaches and techniques to gain trust and influence project stakeholders. Influencing skills will affect the formal reporting process, upward communication, and writing style. 19. Answer: A In the absence of other information, you have to assume that this is a functional or matrix organization and in such an organization the resources belong to functions. 19

20 20. Answer: C In a balanced organization matrix, the authority of the project manager and the authority of the functional manager are basically equal which may result in some conflict especially when resource assignments are being delegated. Refer to Page 22, PMBOK Guide, 5th edition. 21. Answer: C Among the given options, the project manager's authority is lowest in a weak matrix organization. 22. Answer: C Compromise. In this form of conflict management the parties involved agree to give up something to gain something. This is referred to as a win/lose and lose/win situation. Forcing involves authority and a one sided decision. Smoothing or accommodating refers to discussions that are focused only on what each side is in agreement with or in congruence. Collaboration results in a win/win situation for all parties. 23. Answer: C The third level of Maslow s Hierarchy of Needs is the need for social connections or belonging. Herzberg differentiated between factors that may cause dissatisfaction and conditions or situations that would motivate people. 24. Answer: B The responsibility assignment matrix specifies who is playing what role for various activities. Work packages are elements of the work breakdown structure. Cost accounts are associated packages. Resource pools describe resource skills and availability. Refer to page 262 PMBOK Guide, 5th edition. 25. Answer: A In the projectized structure the project manager has direct control of the project team and the team is dedicated to the project. The project manager has the ability to establish more effective and meaningful work relationships with the team members. 26. Answer: B Collective bargaining is associated with unions and generally there will be specific conditions and restricts that may constrain some actions or prevent the use of certain approaches or procedures. 27. Answer: D Theory X (Douglas McGregor) managers believe that people must be closely supervised in ensure that work is completed. Theory Y managers utilize a participative approach. Theory Z (Ouchi) refers to a concept that worker collectively support higher level organizational goals. Hygienic motivation is a fabricated term. 28. Answer: C Acquisition is a tool or technique in the process Acquire Project Team 29. Answer: D Storming follows the Forming stage and generally includes a significant amount of conflict as team members discuss and identify areas or disagreement. Refer to page 276 PMBOK Guide, 5th edition. 30. Answer: B Acquire Project Team is the process of determining resource requirements, determining availability of resources and acquiring resources through negotiation or appropriate organizational processes. Refer to page 267 PMBOK Guide, 5th edition. 31. Answer: B In the projectized structure the project manager is provided with nearly full authority to manage the project and the project resources. 20

21 32. Answer: B Generally project conflicts should be resolved at the lowest levels or authority whenever possible. In some cases conflict requires the involvement of the project sponsor or executive especially when there is an impasse regarding resource assignments. Customer and contractors would not, in most cases become involved in internal resource management disputes. 33. Answer: A - Theory X. Mcgregor's Theory X suggests that workers need to be watched every minute as they will not deliver results on their own. 34. Answer: C A manager with a hands-off attitude toward the project work and the team is considered Laissez Fair. 35. Answer: B Referent authority is the power that comes from personal charm and charisma. It has many meanings but it is generally referred to as power derived from a perceived connection with people of higher levels of authority. Coercive power is a form of penalty power. Formal power is associated with position of rank. Communication Planning 1. Answer D: Did you include the Project Manager as part of the communication channels? Since there are actually five stakeholders therefore there are ten channels of communication. The question is asking how many channels of communication you have with a team of five people. The formula is (n x (n-1) / 2 or (8 x 7) / 2 = Answer: C The communications model emphasizes awareness about developing the appropriate message to be delivered, the potentials barriers that may be encountered and the importance of a feedback loop to improve delivery and understanding of a message. 3. Answer B: The project manager is an integrator - in the sense that he integrates the output of all the processes and channels them in the direction of meeting the project's requirements. This is the primary driver for communications. 4. Answer B: Because of the differences in culture and the distance between team members, formal written communications is needed. 5. Answer D: Working over various regions and cultures in the world you need to have an understanding of both basic definitions and areas of cultural impact. As project managers, you need to have good communication skills and a willingness to adapt to other cultures. 6. Answer D: All reports can have Earned Value Management (EVM) information. 7. Answer: B Earned value analysis report. It provides information about cost and schedule variances and also includes the forecast for the total budget. 8. Answer D: This issue should be over, but since there were so many meetings and arguments about the requirements being removed, it is unlikely the issue will be eliminated by the stakeholders. Since it has not come up again and the project was started six months ago, spending time in a meeting is excessive. The other choices are easier, have less impact on the project, and are therefore things that could be done. 21

22 9. Answer A: 93% of the message in nonverbal communications. 10. Answer C: The major result of communications blockers and miscommunications as a whole is conflict. 11. Answer A: An Information management system refers to the facilities, procedures and processes that are used to collect, store, and distribute information. 12. Answer D: Communications planning is including in the planning process which is generally completed before execution. Updates to the project plan, including the communication plan, will occur during the entire project life cycle. Refer to page 290 PMBOK Guide 5th edition. 13. Answer A: Communications technology is a tool and technique and not the output of the manage communications process. 14. Answer C: Use the formula # of channels = N * (N-1) / 2 First team: 12 (12-1) / 2 = 66 Second team: 17 (17-1) / 2 = 136 Team difference: = 70 Note: In similar questions you may have to consider that the project manager is not included in the actual count of team members and may have to be added to the count to determine the number of channels. Example if you have a team of 12, the project manager would be added making the count 13 for calculating the number of channels. 15. Answer A: Informal verbal is the correct method of communications. We need to assume this is the first offense since it was not specified in the question. If it happens again then the correct communication method is formal written. 16. Answer: C The communications model emphasizes awareness about developing the appropriate message to be delivered, the potentials barriers that may be encountered and the importance of a feedback loop to improve delivery and understanding of a message. 17. Answer: B Earned value analysis report. It provides information about cost and schedule variances and also includes the forecast for the total budget. 18. Answer: C - 16 * 15/2 19. Answer: B Communications planning is including in the planning process which is generally completed before execution. Updates to the project plan, including the communications plan, will occur during the entire project life cycle. Refer to page 290 PMBOK Guide, 5th edition. 20. Answer: A Communications requirements analysis determines the information needs of the stakeholders and identifies information that is most critical to success or failure. Refer to page 291, PMBOK Guide, 5th edition. 21. Answer: B The project manager is an integrator -in the sense that he integrates the output of all the processes and channels them in the direction of meeting the project's requirements. This is the primary driver for communications. 22. Answer: A Information management systems refers to the facilities, procedures and processes that are used to collect, store, and distribute information. 22

23 23. Answer: A The project status report is included in Report Performance outputs. Status reports address the current condition of a project including risks, and issues. Progress reports refer to work that has been completed during a reporting period. Forecasts refer to future scheduled work. 24. Answer: B - Number of communication channels = n ( n - 1)/2; i.e. 11 * 10/2 = Answer: B CPI is a calculation associated with Earned Value Analysis that indicates the efficiency with which project monetary resources are expended. Refer to page 219. PMBOK Guide, 5th edition. 26. Answer: C Use the formula: # of Channels = N*(N-1) / 2 = 10(10-1)/ 2 = 45 = 13(13-1)/ 2 = = 33 (Note, in similar questions you may have to consider that the project manager is not included in the actual count of team members and may have to be added to the count to determine the number of channels. Example if you have a team of 10, the project manager would be added making the count 11 for calculating the number of channels.) 27. Answer: C Areas of common interest and experience will contribute to the effectiveness of the communications process. Areas of responsibility or function may create communications barriers. Personality and perception screens may distort the message. 28. Answer: D-The audience should be tailored by who is interested and capable of contributing to the meeting. Not necessarily inviting the largest number of people. 29. Answer: C Urgency is not included in the basic communications model but should be considered when determining the method of communications to be used. Refer to page 294, PMBOK Guide, 5th edition. 30. Answer: A - Communications technology is a tool and technique and not the output of the manage communications process. 31. Answer: C - Noise is anything that causes disruption in the message being transmitted and affects the interpretation of the message correctly. 32. Answer: D Enterprise environmental factors are a key input to the plan communications process. Refer to page 289, PMBOK Guide, 5th edition. Reporting systems is a tool or technique within the Report Performance process. Interpersonal skills are associated with the Manage Stakeholder Expectations process. Project performance reports are an output of the Report Performance Process. Risk Management 1. Answer: A - A fixed bid project has lesser risk for the firm that gives high-risk work on contract. 23

24 2. 3. Answer: A One of the risk strategies available to you is avoidance. 4. Answer: A - (55% x US$550,000) (20% x US$100,000) = US$275,000 US$20, Answer: B Identification of risk is an ongoing effort throughout the project. 6. Answer: B You don't determine probability of risks until completing qualitative and quantitative risk analysis so the first iterations of your list of identified risks may not have probability on them. 7. Answer: B A contingency reserve is budget that was in the cost baseline is allocated to identify risks that have been assessed quantitatively. 8. Answer: C Project risks are identified during the Identify Risk process. 9 Answer: B You can choose to accept positive risks as an acceptable risk response. 10. Answer: C Beta, Normal, and Triangular distributions are all used in quantitative risk analysis. Obtuse distribution is not a term referenced within the PMBOK guide. 11. Answer: A Buying insurance is a process of transferring the impact of the risk to another party. 12. Answer: D Risk audit is the process of evaluating the effectiveness of risk response plans. 13. Answer: A In this case the risk has occurred and created an impact on the project so there is no need to begin formal evaluation processes. Your risk response plan would identify that a workaround is the best option for unanticipated risks. 14. Answer: C SWOT stands for strengths, weaknesses, opportunities and threats. 24

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