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101 Cards in this Set

  • Front
  • Back
A problem occurs in the design of a grocery cart. In this case it is determined that the wheels will wear out much quicker in areas of heavy snow and ice because the salt will corrode the wheel bearings. Using sealed bearing wheels will significantly increase cost, and it is determined that the carts themselves will be rusty and damaged at about the same time the wheel bearings begin to fail. By injecting the wheel bearings with a high temperature grease the life of the wheel bearings is increased considerably. The project recommends using the high temperature grease. This is called:

A. Risk acceptance.
B. Risk avoidance.
C. Risk mitigation.
D. Risk deflection.
C. Risk mitigation.

Risk Mitigation is a risk response planning technique associated with threats that seeks to reduce the probability of occurrence or impact of a risk to below an acceptable threshold.
A systematic and independent examination to determine whether quality activities and related results comply with planned arrangements and whether these arrangements are implemented effectively and are suitable to achieve objectives.
Quality Audit
Which of the following is an example of quality planning?

A. Control charts
B. Quality audits
C. Fishbone diagrams used to evaluate a defect
D. Benchmarking
D. Benchmarking

Explanation - Benchmarking is the process of comparing the cost, time or quality of what one organization does against what another organization does. The result is often a business case for making changes in order to make improvements. Benchmarking is a moderately expensive process, but most organizations find that it more than pays for itself.
The process of developing options, and determining actions to enhance opportunities and reduce threats to the project’s objectives. It follows the Qualitative Risk Analysis and Quantitative Risk Analysis processes. It includes the identification and assignment of one or more persons (the “risk response owner”) to take responsibility for each agreed-to and funded risk response. Risk Response Planning addresses the risks by their priority, inserting resources and activities into the budget, schedule, and project management plan, as needed.
Risk Response Planning
Histograms, ordered by frequency of occurrence, that show how many results were generated by type or category of identified cause. The project team should take action to fix the problems that are causing the greatest number of defects first. Pareto diagrams are conceptually related to Pareto's Law, which holds that a relatively small number of causes will typically produce a large majority of the problems or defects.
Pareto Diagrams
The three project situations that require the most negotiation skills are:

A. Working with functional managers to ensure that resources are available to support the project, providing performance appraisals to project team members, and developing the WBS.
B. Developing the WBS, determining the master schedule, and managing project changes.
C. Using subcontractors, developing the project scope statement, and managing changes after the project is under way.
D. Securing upper management support for the project, working with functional managers, and building the project team.
C. Using subcontractors...

The use of subcontractors accounts for more litigation than all other aspects of the project combined, and project managers report that developing the scope statement and managing changes are the most common and troublesome issues they face. Thus, having the ability to negotiate an approach that satisfies all stakeholders is important.
A collection of formal documented procedures that define how project deliverables and documentation will be controlled, changed, and approved. In most application areas the change control system is a subset of the configuration management system.
Change Control System
Progressive elaboration is a attribute of projects that integrate the concepts of temporary and unique. In project plan development, progressive elaboration also is important in terms of which of the following?

A. Assumptions
B. Constraints
C. Work breakdown structure
D. Organizational policy development
A. Assumptions

Progressive Elaboration. Continuously improving and detailing a plan as more detailed and specific information and more accurate estimates become available as the project progresses, and thereby producing more accurate and complete plans that result from the successive iterations of the planning process.
Used only when we know the minimum, maximum and most likely values. It leads to a less conservative estimate of uncertainty. The ______ ______ is useful for stochastic modeling rather than statistical analysis because of its artificial nature. Distribution Formula: Probability (cost < most likely) = (most likely - min) ÷ (max - min).
Triangular Distribution
Organizations that desire very much to avoid high-impact risks may use which of the following techniques during qualitative risk analysis?

A. Avoidance.
B. Data precision ranking with low precision.
C. A probability-impact risk rating matrix using nonlinear scales.
D. The organization would not use any techniques.
C. A probability-impact risk rating matrix using nonlinear scales.

A nonlinear scale can provide a greater risk score for risks with high impacts and probabilities. This allows the organization with high-impact risk aversion to better rank and focus on these risks. The use of data with low precision as suggested may lead to qualitative risk analysis of little use to the project manager.
Takes the form of a purchase order—a standardized form listing routine items at standard (for example, vendor catalog) prices. The seller usually accepts the purchase order automatically. Unilateral contracts issued in this way normally do not involve any negotiation and contain relatively low monetary amounts.
Unilateral Contract
In an effort to reduce project team members' increasing stress levels, you decided to conduct power yoga sessions during every project status meeting. You need to hire someone to conduct these sessions. Citing the organization's project management methodology, your subcontracts department informed you that the following document must be prepared before starting the procurement:

A. Statement of work
B. Procurement management plan
C. Evaluation methodology
D. Contract terms and conditions
B. Procurement management plan

The procurement management plan describes how the procurement processes, from procurement planning through closing will be managed. This includes the type contracts to be used, preparation of independent estimates, actions to be taken by the procurement department and the project management team, location of standardized procurement documents, management of multiple providers, and coordination of the procurement with other aspects of the project.
Those processes performed to authorize and define the scope of a new phase or project or that can result in the continuation of halted project work. A large number of the initiating processes are typically done outside the project’s scope of control by the organization, program, or portfolio processes and those processes provide input to the project’s initiating processes group.
Initiating Processes
A project manager is planning a project when he discovers that the project has many different phases, and each phase must be done in a sequence. What of the following is the best option for the project manager?

A. Obtain a charter for each phase.
B. Make sure the WBS has tasks that include extra team meetings.
C. Make sure each team member knows how their tasks interact with other tasks.
D. Make sure the communication plan addresses interdependencies.
A. Obtain a charter for each phase.

Project Charter - a document issued by the project initiator or sponsor that formally authorizes the existence of a project, and provides the project manager with the authority to apply organizational resources to project activities
Involves 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. These other projects can be within the performing organization or outside of it, and can be within the same or in another application area.
Benchmarking
A project manager and team from a firm that designs railroad equipment are tasked to design a machine to load stone onto railroad cars. The design allows for 2% spillage, amounting to over two tons of spilled rock per day. In which of the following does the project manager document quality control, quality assurance, and quality improvements for this project?

A. Quality management plan.
B. Quality policy.
C. Control charts.
D. Project management plan.
A. Quality management plan.

The quality management plan describes how the project management team will implement its quality policy. The quality management plan should describe the project quality system: the organizational structure, responsibilities, procedures, processes, and resources needed to implement quality management. It also provides input to the overall project plan and must address quality control, quality assurance, and quality improvement for the project. The quality management plan may be formal or informal, highly detailed or broadly framed, depending on the requirements of the project.
________ is typically not referred to as a buffer type in Critical Chain project management.

A. Resource buffer
B. Free buffer
C. Feeding buffer
D. Project buffer
2 Chapter 22 - Critical Chain Project Management, in: Project Management: A Systems Approach to Planning, Scheduling, and Controlling, Eighth Edition by Harold Kerzner,
http://pmi.books24x7.com/viewer.asp?bookid=8147&chunkid=773020332
A company has to make a choice between two projects, because the available resources in money and kind are not sufficient to run both at the same time. Each project would take 9 months and would cost $250,000.

1. The first project is a process optimization which would result in a cost reduction of $120,000 per year. This benefit would be achieved immediately after the end of the project.

2. The second project would be the development of a new product which could produce the following net profits after the end of the project:

1. year: $ 15,000
2. year: $ 125,000
3. year: $ 220,000

Assumed is a discount rate of 5% per year. Looking at the present values of the benefits of these projects in the first 3 years, what is true?

A. Both projects are equally attractive.
B. The first project is more attractive by app. 7%.
C. The second project is more attractive by app. 5%.
D. The first project is more attractive by app. 3%.
4 Chapter 14 - Pricing and Estimating, in: Project Management: A Systems Approach to Planning, Scheduling, and Controlling, Eighth Edition by Harold Kerzner,
http://pmi.books24x7.com/viewer.asp?bookid=8147&chunkid=773020332
A production process has been defined as part of an industrial equipment manufacturing project. The process is intended to produce steel bolts with a length of 20 cm. The control limits are 19.955cm and 20.045cm.

The measurements made at the end of the process yielded the following results:

20.033cm, 19.982cm, 19,995cm, 20.006cm, 19.970cm, 19.968cm, 19.963cm, 19.958cm, 19.962cm, 19.979cm, 19.959cm.

What should be done?

The process is under control. It should not be adjusted.
A special cause should be investigated, the process should be adjusted.
The control limits should be adjusted.
The measuring equipment should be recalibrated.
2 PMBOK® Guide 4th Edition, pp 196, 209
Your project management team includes two external consultants each from a different company. You found that repeated conflicts between the two consultants already slow down project progress and jeopardize achievement of objectives.

Which stage of team development can be difficult to overcome in such a situation?

Storming from Forming, Storming, Norming, Performing
Panic from Enthusiasm, Panic, Hope, Solution
Kickoff from Assignment, Kickoff, Training, Communicating
Frustration from Direction, Frustration, Cooperation, Collaboration
1 PMBOK® Guide 4th Edition, p 233
During a project Earned Value Analysis is performed and gives the following numbers:

EV: 523,000; PV: 623,000; AC: 643,000.

Which results are correct?

CV: +120,000; SV: +100,000
CV: +100,000; SV: +120,000
CV: -100,000; SV: -120,000
CV: -120,000; SV: -100,000
4 PMBOK® Guide 4th Edition, pp 181-183
A project manager spent some days to create a multi-page document which he called Project charter. The document should have been issued by the project sponsor. The sponsor found the document outsized and asked for a condensed document.

Which of the following is not normally an element of the Project charter?
The authority level of the project manager
Detailed control account and work package descriptions
The business need that the project was undertaken to address
High-level risks
2 PMBOK® Guide 4th Edition, pp 73-78
A document called ____________ is created by decomposing the project scope into smaller, more manageable elements.

Scope Statement
Network Logic Diagram
Work Breakdown Structure
Requested Change
3 PMBOK® Guide 4th Edition, pp 116-122
Which of the following tools is used to create a Risk Management Plan?

Risk planning meetings
Documentation reviews
Data precision rankings
Diagramming techniques
1 PMBOK® Guide 4th Edition, p 279
In order to speed up a project, you made a decision to fast-track a phase currently performed with five team members and another one which was planned to begin in four weeks time with another five team members.

Which of the following activities should you do first?

Make sure that all exit criteria of the consecutive phase have been met to ensure the flow of communications in a team situation which is more complex by a factor of 2.
Make sure that all entry criteria of the previous phase have been met by planning and performing a phase gate meeting to assess technical aptness.
Make sure that all exit criteria of the previous phase have been met by planning and performing a phase gate meeting to assess technical performance.
Restructure your team and delegate tasks in order to ensure the flow of communications in a team with the number of communication channels increased by a factor of 4.5.
4 PMBOK® Guide 4th Edition, pp 21, 157, 253
A project manager needs a certain number of identical valve housings for a power station project.

He starts with 100 raw items which are made as metal castings. Out of this batch, 15 are found leaking from micro-porosities in a subsequent pressure test. 6 of these housings can be recovered by a special sealing process for raw castings.

The 91 housings are then being machined. After this process step 10 machined castings are found leaking. 3 of these items can also be saved using another sealing process for machined castings.

The remaining 84 housings are getting mounted to the power plant pipe work. During a pressure test after this process step it is found that 12 valves are leaking. Out of these a number of 6 valves can be saved by replacing the sealing rings used.

Finally the project manager has 78 valves which he can use. What is true?



RTY = 0.84
RTY = 0.78
RTY = 0.91
RTY = 0.65
4 Chapter 5 - Crafting Insightful Metrics, in: Managing Six Sigma: A Practical Guide to Understanding, Assessing, and Implementing the Strategy That Yields Bottom-Line Success by Forrest W. Breyfogle III, James M. Cupello and Becki Meadows
http://pmi.books24x7.com/viewer.asp?bookid=7255&chunkid=0788075441
You found the following Earned Value Analysis information for a recently closed out project:

SPI = 0.7, CPI = 1.0

The project has been cancelled while it was executed. At that time the project was behind schedule and on budget.
The project's deliverables have all been finished. The project came in behind schedule but on budget.
The project's deliverables have all been finished. The project came in ahead of schedule but on budget.
The project's deliverables have all been finished. The project came in on schedule but over budget.
1 PMBOK® Guide 4th Edition, p 183
Which should be included in a Requirements management plan?



The document should trace requirements to project scope / WBS deliverables.
It should describe how requirements activities will be planned, tracked, and reported.


It should trace high-level requirements to more detailed requirements.
It should trace requirements to business needs, opportunities, goals, and objectives.
2 PMBOK® Guide 4th Edition, pp 110-111
In a traditionally drawn decision tree, a circle represents ___________.

a chance to which no Expected Monetary Value can be assigned so that a likely pay-off can not be shown.
a decision to which no Expected Monetary Value can be assigned so that a likely pay-off can not be shown.
a chance to which an Expected Monetary Value may be assigned to calculate the most likely pay-off.
a decision to which an Expected Monetary Value may be assigned to calculate the most likely pay-off.
3 PMBOK® Guide 4th Edition, p 299
A project management team has subcontracted work to a service company. Which of the following tools is the best choice to assure that this company will be able to meet the quality requirements of the project?

Quality audit
Deliverable inspection
Fixed price contract
Service level agreement
1 PMBOK® Guide 4th Edition, p 204
With your team you are using judgment from subject matter experts to identify and analyze project risks. There is a small number of experts available, but some of them have long been in a teacher-student or manager-assistant relationship.

Which of the following techniques can ensure best that there is no dominating opinion during an expert review?



Peer review
SWOT analysis


Delphi technique
Monetary value calculation
3 PMBOK® Guide 4th Edition, p 286
You are running a project for a customer based on a cost reimbursable contract with the following terms:

Target costs: $ 1,000,000
Fixed fee: $ 100,000
Benefit/cost sharing: 80% / 20%
Price ceiling: $ 1,200,000

Which is the PTA (= Point of total assumption, Break point) of the project?

$1,300,000
$1,500,000
$80,000
$1,125,000
4 Chapter 9 - Quantitative Methods in Project Contracts, in: Quantitative Methods in Project Management by John Goodpasture
http://pmi.books24x7.com/viewer.asp?bookid=8442&chunkid=845042298
During execution of a project which is performed for a customer on a T&M (Time and Material) contract base, a new project manager is taking over the assignment.

He discovers that two members assigned to the project have charged time without performing any work for the project customer. Upon further investigation, he determines that this occurred because there have been no other project assignments open for these employees. The customer is unaware of these facts.

What should the project manager do?

Try to find some productive work for these staff members in the project and leave them on the team.
The best thing is to do nothing. The customer will not realize the problem anyway.
Try to find a responsible person for the over-assignment who can be made accountable.
Take the two people off the team immediately and arrange for the refund of the excess charges to the customer.
4 Chapter 5 (Honesty) - PMI® Code of Ethics and Professional Conduct
http://www.pmi.org/PDF/ap_pmicodeofethics.pdf
In the following network logic diagram start dates are defined as early morning, finish dates are evening.

If tasks are scheduled to begin at early start date, what is true?


Activity B has a free float of 10 d.
Activity B has a total float of 10 d.
Activity A has a free float of 10 d.
Activity A has a total float of 10 d.
2 PMBOK® Guide 4th Edition, p 1553

Chapter 5 - Time Management, in: The Project Management Question and Answer Book by Michael W. Newell and Marina N. Grashina
http://pmi.books24x7.com/viewer.asp?bookid=5597&chunkid=252742885
Your project is executed with a globally spread virtual team. The project progress has been found to be too slow. Which measure is most likely to immediately speed up the project?

Technical training for all team members
Daily phone conferences and detailed reporting
A team meeting at a location convenient to all team members
Collocation of team members at a suitable place
4 PMBOK® Guide 4th Edition, p 234
A project management team wants to procure some customized products which are available in identical grade and quality from many vendors. What should be included in the procurement package to ensure that their offers will be comparable?

A statement of work describing the needs of the project in sufficient detail to enable vendors to make suitable proposals


A statement of work specifying attributes and metrics of the requested deliverables in detail to allow vendors submission of bids


The approved project scope statement, the WBS which should be broken down to Work Package level and the WBS dictionary
The risk management plan and the reports from those risk management reviews which have been made so far
2 PMBOK® Guide 4th Edition, pp 325-326 (12.1.3.4 2nd phrase)
Which of the following becomes increasingly important in a virtual team environment?
Requirements engineering
Communication planning
Formal procurements closure
Network diagramming
2 PMBOK® Guide 4th Edition, p 228
You are assigned as the project manager to a project which is executed for a customer under FP contract. Your customer informed you this morning that they insist on certain "refinements" of the project scope.

You agree that the requested actions make really sense to the project, but believe that they constitute a major change increasing the project scope. What should you do next?

Accept the request of the customer. Diligently document the additional costs and working hours spent by yourself and the team on the implementation of the change and invoice these to the customer at appropriate rates.
Perform Earned Value Analysis to assess the current status of the project and get all the numbers you need to communicate the case to the Change Control Board which then will have to make the best decision regarding the customer request.
Check the contract, the project charter, the scope statement and other documents related to the project and the contract. Implement ADR (Alternative Dispute Resolution) procedures if the conflict cannot be resolved otherwise.
Talk to the project sales department and find a joint solution with them how to best reject the request considering the commercial and strategic value of the customer to the organization you are working for.
3 PMBOK® Guide 4th Edition, p 339 (12.3.2.6)
During a project the scope of a product purchased on a cost reimbursable contract has increased. The contract defines a fixed fee to cover the contractor‘s indirect costs and allow a profit. What is most likely to be true?

The contractor‘s indirect costs will increase and the customer‘s payment for them will increase, too.
The contractor‘s indirect costs will increase but the customer‘s payment for them will not increase.
The contractor‘s indirect costs will not increase but the customer‘s payment for them will.
Neither the contractor's indirect costs nor the customer‘s payment for them will increase.
4 PMBOK® Guide 4th Edition, p 323
A project management team is evaluating the causes that might contribute to unsatisfactory performance and quality. Which of the following statements is not true?

Normal process variation is attributable to random causes and sometimes also called "white noise".
Special causes are easier to predict and handle than random causes (also called common causes).
Special causes are unusual events which are difficult to foresee and mostly produce outliers.
A process can be optimized to limit the bandwidth of variations due to random causes.
2 PMBOK® Guide 4th Edition, pp 421 and 441
You are performing a project management audit in your company and find that most of the project plans are neither consistent nor up-to-date.

Which of the following statements is not true?

Projects should never be executed without a valid, updated and working project management plan.
The consistency of the project management plan is secondary because it is only the results that matter.
A great deal of effort is required to develop and update a project plan, but the benefits include less pressure on all stakeholders and a resulting product that will satisfy the requirements.
Poor planning and insufficient updating of project management plans are common reasons for cost and time overruns.
2 Chapter 11 - Planning, in: Project Management: A Systems Approach to Planning, Scheduling, and Controlling, Eighth Edition by Harold Kerzner
http://pmi.books24x7.com/viewer.asp?bookid=8147&chunkid=445524266
You want to perform active risk acceptance. What should you do?

Create contingency reserves in resources, money and time.
Develop a plan to minimize impact in case that an identified risk occurs.
Develop a plan to minimize the probability of occurrence for identified risks.
Make additional resources available to speed up the project.
1 PMBOK® Guide 4th Edition, p 304
A project manager made 3-point estimates on a critical path and found the following results:

Assuming ±3 Sigma precision level for each estimate, what is the standard deviation of the allover path?

App. 4.2 days
App. 5.2 days
App. 6.2 days
You can not derive the path standard deviation from the information given.
2 Chapter 2 - Introduction to Probability and Statistics for Projects, in: Quantitative Methods in Project Management by John Goodpasture
http://pmi.books24x7.com/viewer.asp?bookid=8442&chunkid=216152584

Chapter 12 - Network Scheduling, in: Project Management: A Systems Approach to Planning, Scheduling, and Controlling, Eighth Edition by Harold Kerzner
http://pmi.books24x7.com/viewer.asp?bookid=8147&chunkid=610313952
When do bidder conferences normally take place?

After the contract has been awarded to keep alternatives open.
After submittal of bid or proposal, but before contract award.
Prior to the submittal of a bid or proposal by the bidder.
After technical meetings with bidders to discuss contract requirements.
3 PMBOK® Guide 4th Edition, p 331
What is defined by control limits?

A measuring instrument solely used to describe process capability. The process is found capable if the ±3 Sigma range is exceeded by not more than 0.3% of a tested sample lot.
The limits of the six Sigma area on either side of a control chart to plot measured values; data found outside the area are out of specification and can lead to rejection of an entire batch.
The area consisting of typically three standard deviations on either side of a mean value of a control chart to plot measured values found in statistical quality control
The area consisting of typically three standard deviations on either side of a mean value of a control chart to plot measured values found in quality assurance
3 PMBOK® Guide 4th Edition, p 422
The Scope baseline consists of what?
Scope statement, WBS, and WBS dictionary
Cost baseline, Quality baseline and Schedule baseline
Configuration management plan and Configuration identification document
Procurement statement of work and Project scope statement
1 PMBOK® Guide 4th Edition, p 331
Activity 1 has a duration of 20 days, Activity 2 of 10 days, Activity 3 of 5 days and Activity 4 of 6 days.

What is the minimum total duration between the Milestones A and B?

36 days
37 days
39 days
42 days
2 PMBOK® Guide 4th Edition, pp 138 and 140
Which tool and technique is used to Create WBS and Define activities?

Nominal group technique
Human resource assignment
Brainstorming
Decomposition
4 PMBOK® Guide 4th Edition, pp 116 and 133
Which of the following statement(s) regarding whistle-blowing is/are not true?

1. It is a term used to define an employee’s decision to disclose information on unethical, immoral or illegal actions at work to an authority figure.
2. An employee should always discuss the matter with people external to the company before following the "chain of command" and discuss it with the immediate superior.
3. The consequences of whistle-blowing are often extreme and include possible being branded as having bad judgment, firing, civil action and imprisonment.
4. Carefully considered whistle-blowing can lead to the end of unethical business practices.

a
b
b, c
c, d
2 Chapter Seven - Nudge, Test, and Escalate Gradually, in: Leading Quietly: An Unorthodox Guide to Doing the Right Thing by Joseph L. Badaracco, Jr.
http://pmi.books24x7.com/viewer.asp?bookid=5478&chunkid=305478503

Chapter 13 - Role of Corporate Governance, in: No Excuses: A Business Process Approach to Managing Operational Risk by Dennis I. Dickstein and Robert H. Flast
http://pmi.books24x7.com/viewer.asp?bookid=29831&chunkid=339693288
Which of the following statements is not true?

Attribute sampling is the process of assessing whether results conform to specifications or not.
Prevention means keeping errors out of the process by applying actions before the process starts changing its input.
Variables sampling means that the result is classified into one of the 3 categories:
"acceptable" - "acceptable after rework" - "rejected".
Inspection is often mainly done to keep errors out of the hands of the customer instead of as a means of process control.
3 PMBOK® Guide 4th Edition, p 206
Which statement describes best why you should document assumptions?

Assumptions might prove to be wrong. Knowing which assumptions were incorrect allows baseline adjustments in case of project crisis.
Assumption analysis is a valuable tool and technique to explore the validity of assumptions during risk identification.
Assumptions limit the project management team's options for decision making because they can not be controlled by the team.
In case of schedule or budget overruns, the documentation of assumptions supports a clear assignment of responsibility.
2 PMBOK® Guide 4th Edition, p 286
Which is normally not regarded as an element of Cost of quality?

Prevention costs
Maintenance cost
Appraisal costs
Failure costs
2 PMBOK® Guide 4th Edition, p 195
You have recently been assigned as a project manager to a new B-O-T (Build, Operate, Transfer) capital project. Reviewing the initial documentation you found out that it has been calculated with a very small margin during operations of its product for the shareholders. What should you do?

As you are not responsible for lifecycle costing, you don't have to worry about operation profits. Focus on project costs from initiation through handover.
Ensure maximum profits by buying the best and cheapest items, components and modules - potentially from a big number of different suppliers - and integrating them.
Create a realistic plan broken down to a sufficient level of detail. Perform all risk management processes. Ensure real-time communications with all stakeholders.
Try to get a second project manager assigned to share decision making and accountability to shareholders with the person.
3 Chapter 2 - What Is Project Finance? in: Principles of Project Finance by Edward Yescombe
http://pmi.books24x7.com/viewer.asp?bookid=5680&chunkid=905004848 (on BOT Projects)

PMBOK® Guide 4th Edition, p 234 (on issues of responsibility for unrealistic expectations by management)
A project is handled by departments of an organization and expedited by a project coordinator. Which of the following statements is most likely to be true?

The performing organization is a weak matrix.
The performing organization is doing "management by projects".
The performing organization is a strong matrix.
The performing organization is projectized.
1 PMBOK® Guide 4th Edition, p 29
You are project manager in a global project with a team consisting of people from various countries. What can you try to prevent misunderstandings due to cross-cultural differences?

Use all communication methods available that are suitable for the team and follow up in writing when communicating verbally. Remember that cultural and individual diversity may help project teams solving unforeseen problems during the course of the project.
When you are about to form a team for your project, keep in mind that some cultures are developed, others are more primitive. Some have values, some not. You should consequently avoid choosing members from countries with cultures that are not similar to your own.
Cultural dilemmas can prevent any project from being successful. They should therefore be smoothed or suppressed so as to make sure that they cannot disrupt project work. Your effort should concentrate on communication that can help reach that goal.
As norms regarding communication habits differ significantly across various cultures, communicating between people from different countries should only be done using language. The nonverbal dimension simply bears too many risks.
1 Chapter 25 - Teamwork Process—Global Teams – Crosscultural Communication, in: The Project Management Tool Kit: 100 Tips and Techniques for Getting the Job Done Right by Tom Kendrick
http://pmi.books24x7.com/viewer.asp?bookid=4546&chunkid=594080577
Which statement on conflicts is true?
Conflict resolution should focus on people, not issues.
Conflict is natural and forces a search for alternatives.
Conflict should always be handled in private and not in the team.
Too much openness is a common cause of conflict.
2 PMBOK® Guide 4th Edition, p 239
A change request in a project has been rejected some weeks ago. Yesterday, the project manager found out that it nevertheless has been implemented by the team members, who knew of the change request, but not of the rejection.

In order to avoid such a situation, Rejected change requests should be consistently communicated to stakeholders through which process?
Report performance
Verify scope
Perform integrated change control
Monitor and control risks
3 PMBOK® Guide 4th Edition, p 94
What is a trigger in project risk management?

An expected situation causing an unidentified risk to occur
A warning sign that a previously identified risk might be occurring or has occurred
An unexpected situation causing an identified risk to occur
An unexpected situation causing an unidentified risk to occur
2 PMBOK® Guide 4th Edition, p 444
According to the project plan, a contractor is scheduled to deliver some software components today afternoon. A regular payment is due to be made to this contractor tomorrow.

You and your project team received a note this morning informing you that the software delivery will be delayed by 2 weeks.

What should you do right now?

You should delay the payment also for 2 weeks.
You must immediately find a different contractor.
You should conduct a meeting with the contractor to resolve the delivery issues before making the payment.
You should make the payment and reschedule the project plan.
3 PMBOK® Guide 4th Edition, p 412
In a software company a large number of simultaneously performed projects utilize the same groups of human and other resources.

What is the term commonly used for this situation?

Concurrent engineering
Resource over-allocation
Resource pooling
Program management
3 Chapter 15 - Project Management in the Information Age, in: The New Dynamic Project Management: Winning Through the Competitive Advantage, Second Edition by Deborah S. Kezsbom and Katherine A. Edward
http://pmi.books24x7.com/viewer.asp?bookid=8645&chunkid=911998160
What does the acronym RACI commonly stand for in project management?

Responsible, Accountable, to be Consulted, to be Informed
Remote, Attached, Connected, Integrated
Risk Analysis and Caution Initiative
Randomly Accessible Cashflow Information
1 PMBOK® Guide 4th Edition, p 221
You have used estimates made by your team members and applied the Critical path method to compute a Network logic diagram for your project. Then you found out that it cannot be sufficiently optimized for scarce resources and fast progress towards a given deadline. What should you do next?

Apply resource leveling heuristics to uncritical activities only.
Reduce estimates on duration and work efforts by an adequate percentage.
Apply Three-point estimation and Critical chain project management.
Remove physical constraints and replace hard logic with soft logic.
3 PMBOK® Guide 4th Edition, pp 150 (Three-point estimation) and 155 (Critical chain)

Chapter 1 - Begin in the Beginning, in: Critical Chain Project Management, Second Edition by Lawrence P. Leach
http://pmi.books24x7.com/viewer.asp?bookid=10254&chunkid=0357832958
Liquidated damages (LDs) are contractually agreed payments in order to...
...give the contractor an incentive to meet an aggressive schedule or challenging quality objectives.
...penalize the contractor for late completion of a project or failure to meet specifications.
...cover the customer's costs caused by late completion or failure to meet specifications by the contractor.
...make a bid or proposal binding for the offerer while the customer has time to select among various bidders.
3 Chapter 7 - Project Contracts—(2) Ancillary Contracts, in: Principles of Project Finance by Edward Yescombe
http://pmi.books24x7.com/viewer.asp?bkid=5680&destid=230#230
What should not be covered by a risk management plan?
Roles and responsibilities for handling project risks
Timing of project risk management activities
The methodological approach used for risk management
Individual risks and potential responses to them
4 PMBOK® Guide 4th Edition, pp 279-282 and 288
You are assigned as the project manager to a project which had a on-time cost variance in the past caused by unexpected rework which has meanwhile been finished.

You perform Earned Value Analysis and find the following results:

EV: 250,000; PV: 200,000; AC 275,000

BAC is 500,000.

What is right?

EAC = 550,000
EAC = 525,000
EAC = 500,000
EAC = 425,000
2 PMBOK® Guide 4th Edition, p 184
An estimation has been made that the construction of a residential home will cost a certain amount per square foot of living area. This is an example of what type of estimating?

Analogous estimating
Bottom-up estimating
Top-down estimating
Parametric modeling
4 PMBOK® Guide 4th Edition, p 431
What is true for prototypes?
Prototyping causes significant costs and should be avoided wherever possible.
They are tangible and allow for early feedback on requirements by stakeholders.
Prototypes are mostly developed toward the end of a design or build phase.
Prototypes increase the risk of misunderstandings between developers and users.
2 PMBOK® Guide 4th Edition, p 109
What is a constructive change?
A change request that helps improving the project and its product, service or result and is discussed generally in a friendly style.
A direction by the buyer or an action taken by the seller that the other party considers an undocumented change to the contract.
A field change or ad-hoc change mandated by the project customer in a public construction project.
A change request which will lead to the re-construction of an older version of the project performance baseline by the contractor.
2 PMBOK® Guide 4th Edition, p 341
Which of the following is generally not regarded to be a motivator according to Frederick Herzberg?

Working conditions and interpersonal relations
Responsibility for enlarged task
Interest in the task
Recognition for achievement
1 Chapter 5 - Motivation, in: Management Skills for New Managers by Carol W. Ellis
http://pmi.books24x7.com/viewer.asp?bookid=8854&chunkid=588141747
What is true for modern project management? Project managers need...

... to have a strict standing in negotiating
... to show experience in tricking business partners
... to be team players and facilitators instead of "bosses"
... to be strongly linked to local traditions
3 Chapter 1 - Importance of People Skills in Project Management, in: People Skills for Project Managers by Steven W. Flannes and Ginger Levin
http://pmi.books24x7.com/viewer.asp?bookid=6208&chunkid=108499407
You are the project manager in an engineering project and have recently signed a contract with a software vendor for the development of a complicated control solution. The software will be used to control machinery equipment which your project team is currently developing. The contract is a lump-sum contract. The contractor has target cost estimated which seem rather low to you. Which of the following statements is not true for this situation?

It is the contractor's risk in this type of contract that their profit may vanish if costs have been underestimated.
This form of contract should only be chosen when all the requirements for the building of the product are well-known by all parties involved.
In a fixed-price contract, change requests can cause issues regarding additional time and extra costs for the changes to be applied.
It is likely that your organization may have to assume any unexpected additional costs for the software development.
4 Chapter 21 - Contracts and Procurement, in: Project Management: A Systems Approach to Planning, Scheduling, and Controlling, Eighth Edition by Harold Kerzner
http://pmi.books24x7.com/viewer.asp?bookid=8147&chunkid=0922709277
A review to determine whether of project activities comply with organizational and project policies, processes, and procedures is commonly called

Quality auditing
Inspection
Quality testing
Reject screening
1 PMBOK® Guide 4th Edition, p 204
Which of the following is true in regard to the Code of Accounts?

It allows one to easily identify the breakdown level of the item in the resource structure.
It describes the coding structure used by the performing organization to report financial information in its general ledger.
It is the collection of unique identifiers generally assigned to WBS items.
It defines ethical behavior in the project and the responsibilities to the customer and the profession.
3 PMBOK® Guide 4th Edition, p 421
You are the manager of your company's project management office. The company is running many concurrent projects; most of them share a resource pool of technical staff. Understanding how resources are utilized across projects has been found essential to overall project performance, including cost effectiveness and profitability.

This morning you received a message that the resource pool members will be unable to perform as planned for the next months because the overall work load has grown too high and while delays are adding up, the morale of the staff is going down.

What should you do next?

Ensure that quantitative information for all projects is being made available in a uniform and reliable fashion and verify that the project management methodology is adhered to. Then consolidate the information to get an understanding of the problems related with the use of shared resources.
Implement an enterprise project management software solution which is able to level the human resources across the various projects and which has the capability to model resource assignment on a percentage level thus optimizing resource utilization for the overall organization.
Do nothing related to the described problem unless you are explicitly requested by the organizations upper management. Supporting decision making on the level on which project portfolio management is done, is not the project management office's business.
Evaluate project management software which supports planning and scheduling across enterprise-wide project portfolios. Avoid managing the availability of shared enterprise resources for the projects run by an organization because this is not the business of a project management office.
1 PMBOK® Guide 4th Edition, p 11
You have been criticized that certain specifications in your Scope Statement do not pass the test for SMART objectives. What are SMART objectives?

Objectives specified in far more detail than necessary for a execution of a successful project.
Easily achievable objectives which help you reducing the pressure on yourself and the team.
Objectives that should be achieved in order to attain formal recognition by both the customer and the project sponsor.
Objectives that are described using specific, measurable, assignable, realistic and time-related specifications.
4 Chapter 3 - Performance Management, in: Management Skills for New Managers by Carol W. Ellis
http://pmi.books24x7.com/viewer.asp?bookid=8854&chunkid=742856503
You have been assigned as a project manager to a software project. While you and your team are working on a WBS (Work breakdown structure), estimations for activity durations based on the activity list vary significantly. Which additional documents may help you clarify this situation?

Milestone list and scope baseline.
Project schedule network diagrams and human resource plan.
Activity cost estimates and scope baseline.
Activity attributes and project scope statement.
4 PMBOK® Guide 4th Edition, p 51
You are performing Earned value technique on your project.

After budget approval, an additional and unexpected cost item has been identified, which made the project more expensive some weeks ago. The item has meanwhile been paid by the project team, and it is expected that for the remaining duration of the project, costs will be as budgeted.

In this case, which is the best formula to calculate EaC (Estimate at Completion)?

EaC = BaC - CV
EaC = BaC / CPI
EaC = AC + BtC / CV
You can not compute the EaC.
1 PMBOK® Guide 4th Edition, pp 182 (CV = EV - AC) and 184 (EAC = AC + BAC - EV)
During a company event, you had the opportunity to talk to a colleague project manager. He told you that in his current project actual costs are 15% under cumulated costs budgeted for today.

What do you think?
The information given to you by the colleague is not sufficient to assess project performance.
The project will probably be completed with total costs remaining under budget until the end.
A significant cost increase during the further course of the project will probably bring the costs back to baseline level.
Original cost forecasting and budgeting for the project must have been poor to allow this variance.
1 PMBOK® Guide 4th Edition, pp 173-174
What is the meaning of a concept called the "Journey to Abilene"?

Project managers should visit their customers far more often than what is usual in order to avoid misunderstandings and bad emotions.
International projects may have an increased need for traveling which can lead to additional costs and troubles with time zones.
Committee decisions can have the paradox outcome, that a jointly made or approved decision is not desired by any individual group member.
A project is a temporary endeavor undertaken to create a unique product, service or result. Repeating it would be similar to making the same journey twice.
3 Chapter 6 - Managing Project Conflict, in: People Skills for Project Managers by Steven W. Flannes and Ginger Levin
http://pmi.books24x7.com/viewer.asp?bookid=6208&chunkid=202583813
Which of the following statements describes best the relationship between project phases and the Project life cycle?

The Project life cycle includes the time when the project is performed and the expected product lifespan after that.
In project management, the sequence of project phases and phase gates is often referred to as Project life cycle.
The Project life cycle is regarded as a sequence of project activities while phases are defined to control overlapping activities.
The Project life cycle describes how iterations of project management processes are used when a project schedule is developed.
2 PMBOK® Guide 4th Edition, p 15
Which is an appropriate order in most project situations for the development of scope-related documents?

1. Project SOW (Statement of work),
2. Project charter,
3. Project scope management plan,
4. Project scope statement,
5. WBS (Work breakdown structure) and WBS dictionary.
1. Work breakdown structure,
2. Scope statement,
3. Project charter,
4. CSOW (Contractual statement of work),
5. Contractual Work breakdown structure
1. Feasibility study
3. Contract,
4. CWBS (Contractual work breakdown structure),
5. Scope of work descriptions,
6. PID (Project initiation document).
1. BOM (Bill of materials),
2. CAP (Control account plan),
3. Project charter
4. Change management plan,
5. Scope baseline.
1 PMBOK® Guide 4th Edition, p 43 (overview), 74 (project charter input: sow), 104 (scope management plan), 112 (define scope process output: scope statement), 116 (create wbs process)
What is the S-curve in project management?


A graph that is generated if a normal curve is integrated.
A graph that is to be integrated to generate a normal curve.
A metaphoric description of the short term uncertainties that are present in every project.
The graph that describes the typical growth of earned value during the course of the project.
4 PMBOK® Guide 4th Edition, p 178
An output of the Estimate activity resources process is a document called "Activity resource requirements". It identifies the types and quantities of resources...
...while the term resources is limited to equipment and materials.
...required for each activity in a work package.
...while the term resources is limited to human resources.
...to be obtained solely from the performing organization.
2 PMBOK® Guide 4th Edition, p 145
What is not the purpose of Configuration control when Configuration management is applied in a project?
Verification that the configuration identification for a configuration item is accurate, complete, and will meet specified program needs.


Ensuring that proposed and approved changes to configuration items are fully analyzed.
Ensuring that proposed and approved changes to configuration items are fully documented.
Managing and controlling the frequently requested changes to a project by applying agreed rules.
1 http://www.pmi.org/PDF/Members/Standards/PS_ProjectConfiguration.pdf pp. 29, 48, 56 ("Configuration control" and "Configuration identification")
Which statement describes best the meaning of the term Cost baseline?
A cost baseline is always created by translating time-phased cost information into cost data on activity or work-package level.
A cost baseline is an approved time-phased budget that will be used to measure and monitor cost performance on the project.
Data to draw a cost baseline can be easily generated and updated as necessary from information related to actual project cost.
A cost baseline is usually displayed in the form of an inverse S-curve drawn from the beginning of the project until data date.
2 PMBOK® Guide 4th Edition, p 178
Which is not true in regard of RoI (Return on Investment) for a project?

It defines the cumulated net income from an investment at a given point in time or during a defined period.
It includes investment, direct and indirect costs and may include allowances for capital cost, depreciation, risk of loss, and/or inflation.
It is most commonly stated as a percentage of the investment or as a dimensionless index figure.
It is the time when cumulated net income is equal to the investment.
4 Chapter 1 - Defining the Project Business Case and Getting Buy-in from Top Management, in: Maximizing Project Value: Defining, Managing, and Measuring for Optimal Return by Jeff Berman
http://pmi.books24x7.com/viewer.asp?bkid=16115&destid=56&destid=42&destid=42&term=return+on+investment+(ROI)
A project sponsor requested Earned Value Data on two concurrent projects from the project managers. Both projects are regarded as equally important and strategically beneficial and have been finished by over 80%. He received the following information:

Project A:
PV: $1,800,000
EV: $2,300,000
AC: $2,100,000

Project B:
PV: $2,000,000
EV: $1,500,000
AC: $1,600,000

The sponsor considers to shift some resources from Project A to Project B to speed up the second project which is currently behind schedule.

What is the most likely outcome of such a measure?



Changing team assignments during late course of a project typically increases cost efficiency.
Changing team assignments during late course of a project typically increases time efficiency.


According to the Law of diminishing returns, the consolidated Cost variance of the two projects will decrease.


According to the Law of diminishing returns, the consolidated Cost variance of the two projects will increase.
3 Chapter 3 - Project Estimating, in: The Project Management Question and Answer Book by Michael W. Newell and Marina N. Grashina
http://pmi.books24x7.com/viewer.asp?bookid=5597&chunkid=518142829
Which of the following statements describes best the relationship of quality and grade?

Low grade is always a problem; low quality may be overcome by a good rework and repair process.
Grade is a category or rank given to entities having different functional requirements but the same need for quality.
Both quality and grade can often be improved through intelligent measuring, testing and examining.
Low quality is always a problem as it bears on the ability of an item to meet requirements; low grade may sometimes be acceptable.
4 PMBOK® Guide 4th Edition, p 190
Network templates which contain only portions of a network are often referred to as

Subnetworks or fragment networks
Subprojects
Programs
WBS items
1 PMBOK® Guide 4th Edition, p 141 (6.2.2.4)
What is the Internal Rate of Return (IRR) of a project?

The time period needed to pay back the investment from a project when future income is discounted.
The inherent discount rate or investment yield rate produced by the project over a pre-defined period of time.
The rate of negative risk that can be accepted for a project without turning the Expected net present value negative.
The expected benefit from a project’s deliverable calculated as a percentage of the original investment over a specified time period.
2 Chapter 1 - Defining the Project Business Case and Getting Buy-in from Top Management, in: Maximizing Project Value: Defining, Managing, and Measuring for Optimal Return by Jeff Berman
http://pmi.books24x7.com/viewer.asp?bkid=16115&destid=56&destid=42&destid=42&term=return+on+investment+(ROI)
You just created the following network logic diagram to describe the planned flow of activities for your project which will start tomorrow:

Which potential inconsistency in the diagram should you solve right now?

Activity E is a logical dangle in relation to the sink before the finish milestone.
Activity F is a logical dangle in relation to the burst point after the start milestone.
You cannot calculate a critical path when lags and/or leads are calculated in percent.
Activities E to F need another task drawn as a hammock to calculate Level Of Effort.
1 PMBOK® Guide 4th Edition, pp 138-141
Great Free Study URL
http://www.oliverlehmann.com/pmp-self-test/75-free-questions.htm
A forward and backward pass indicted total float is equal to - 20 days. This indicated that:

A. The critical path must be evaluated to determine actual slack time.
B. The project is estimated to be-20 days ahead of schedule.
C. Two branches converge on a node.
D. Duration compression may be required to meet the original project scope.
D. Duration compression may be required to meet the original project scope.
Which of the following is useful in risk identification because it permits a systemic
evaluation of the work?

1. Work breakdown structure
2. Design specification
3. Project flow chart
4. Project chart
1. Work breakdown structure
You are the project manager responsible for developing a new hybrid engine for an auto manufacturer. You are in the process of developing the project schedule and would like to access the feasibility of your project schedule under various different conditions. Which of the following scheduling techniques is the LEAST appropriate?

1. Resource leveling
2. Critical path method
3. Variance analysis
4. Monte Carlo analysis
4. Monte Carlo analysis
A control chart indicates the last 12 weights produced were outside the upper control limit. What should the project manager do?


A. Stop production
B. Work to better meet ISO 9000 standards
C. Look for the non-random causes for the variations
D. Plan to rework the 12 weights
A. Stop Production

A control chart is a graph that displays data taken over time and computed variations of those data. Control charts are used to show the variation on a variety of variables including average (X) and range (R) and also the number of defects (PN), percent defective (P), defects per variable unit (U), and defects per fixed unit (C). The control chart allows you to distinguish between measurements that are predictably within the inherent capability of the process (normal causes of variation that are to be expected) and measurements that are unpredictable and produced by special causes.
A structured, independent review to determine whether project activities comply with organizational and project policies, processes, and procedures. The objective of a ______ _____ is to identify inefficient and ineffective policies, processes, and procedures in use on the project.
Quality Audit
A detailed estimate taking into consideration a number of small estimates and summarizing them to a total for the project or subproject being estimated. A top-down estimate is usually a less accurate method that estimates the cost of the entire project by means of parametric, analogous, or some other estimating method.
Bottom-up estimate
A project manager and the project team identify several specific risks in a project. The expected value of these risks is estimated at $10,000. The impact on the project brought about by these risks is estimated at $40,000. What value should be entered into the management reserve for these risks?

A. $0
B. $10,000
C. $25,000
D. $40,000
A. $0

The management reserve is money that is set aside for dealing with unknown risks. These unknown risks cannot be specifically identified. The risks mentioned in the question are identified and therefore no money should be put into the management reserve for them.
Administrative closure should not be delayed until project completion because:


A. Useful information may be lost
B. The project manager may be reassigned
C. Project team members may be reassigned by that time
D. Sellers are anxious for payments
A. Useful information may be lost

Closure includes collecting project records, ensuring that the records accurately reflect final specifications, analyzing project or phase success and effectiveness, and archiving such information for future use. Each phase of the project should be properly closed while important project information is still available.
Organize and summarize the information gathered and present any analysis results. These reports should provide the information and detail that stakeholders require, as documented in the communications management plan.
Performance Reports