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- Regarding management and leadership all of the following are true except
A. On a project, particularly a larger project, the project manager is generally expected to be the project's leader as well. B. Technical leadership is of primary importance in project management C. Managing is primarily concerned with consistently producing key results expected by stakeholders D. Leading involves establishing direction, aligning people, motivating and inspiring
OBVIOUS QUESTION!!
2. 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, 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,
2 year: $ 125,
3 year: $ 220,
Assumed is a discount rate of 5 % per year. Looking at the present values of these projects' revenues 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%.
NPV = CF 0 + CF 1 + CF 2 + CF 3 …. CFN NPV(1) = 120,000 + 120,000 + 120,
(1+r) 1 (1+r) 2 (1+r) 3 (1+r) 3 (1+.05) 1 (1+.05) 2 (1+.05) 3
NPV(2) = 15,000 + 125,000 + 220,
(1+.05)^1 (1+.05) 2 (1+.05) 3
3. 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 acceptable control limits are 19.955 cm and 20.045 cm.
The measurements made at the end of the process yielded the following results:
20.033 cm, 19.982 cm, 19,995 cm, 20.006 cm, 19.970 cm, 19.968 cm, 19.963 cm, 19.958 cm, 19.962 cm, 19.979 cm, 19.959 cm.
What should be done?
A. The process is under control. It should not be adjusted. B. The process should be adjusted. C. The control limits should be adjusted. D. The measuring equipment should be recalibrated.
PP 196 PMBOK – Control Charts – A process is considered out of control when a data point exceeds a control limit or if seven consecutive points are above or below the mean.
- What are the 4 stages of team development?
A. Forming, Storming, Norming, Performing. B. Enthusiasm, Hope, Panic, Solution. C. Assignment, Kickoff, Training, Communicating. D. Direction, Motivation, Cooperation, Collaboration.
PP 223 PMBOK
5. During a software project Earned Value Analysis is performed and gives the following results:
EV: 523,000;
PV: 623,000;
AC: 643,000.
Which results are correct?
A. CV: +120,000; SV: +100,000.
B. CV: +100,000; SV: +120,000.
C. CV: -100,000; SV: -120,
D. CV: -120,000; SV: -100,000.
CV = EV-AC ~ 523,000 – 643,000 = -120,
SV = EV- PV ~ 523,000 – 623,000 = -100,
- Which of the following is not normally an element of the Project Charter?
A. The formal authorization to apply organizational resources to project activities. B. Work package descriptions. C. The business need that the project was undertaken to address. D. The product description or a reference to this document
PP 121, PMBOK - WBS dictionary contains work package descriptions.
- Where is the result node (outcome) shown on a typical Ishikawa or Fishbone diagram?
A. Top. B. Bottom. C. Right hand side. D. Center.
PP 209 PMBOK
- A project management team has subcontracted work to a service company. The process of ensuring that this service company's performance meets contractual requirements is called
A. Contract Administration. B. Staff Acquisition. C. Contract Closeout. D. Contract Negotiation
PP 335 PMBOK – Administer Procurements
- What are workarounds in project management?
A. Workarounds are essentially the same as rework. B. Workarounds are alternative strategies. C. Workarounds are unplanned responses to emerging risks that were previously unidentified or accepted. D. Workarounds are activities performed according to applicable contingency plans
PP 312, PMBOK – Change Requests
- What are faits accomplis?
A. A French dinner after a kick-off meeting. B. Unachievable deliverables. C. Accomplished objectives. D. Decisions made earlier which limit the options for decision making.
Definition of term.
17. 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. Upon further investigation, he determines that this occurred because there were no other project assignments available for these people. The customer is unaware of these facts.
What should the project manager do?
A. Try to find some productive work for these staff members in the project and leave them on the team. B. The best thing is to do nothing. The customer will not realize the problem anyway. C. Try to find a responsible person for the over-assignment who can be made accountable. D. Take the two people off the team immediately and arrange for the refund of the excess charges to the customer.
Ethics Issue
18. 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?
A. Activity B has a free float of 10 d. B. Activity B has a total float of 10 d. C. Activity A has a free float of 10 d. D. Activity A has a total float of 10 d.
PP 451 PMBOK – Total Float
- Which of the following is not considered to be part of Project Resource Management?
A. Working staff. B. Materials. C. Equipment. D. Time and money.
Triple Constraint Question
- Tools and Techniques of Risk Response Planning include
A. Identifying, quantitative and qualitative analysis, monitoring and control. B. Avoidance, transference, mitigation, acceptance. C. Identification, assessment of magnitude and probability, assessment of costs of response. D. Risk management reviews
PP 303, PMBOK
21. A project manager performs Earned Value Analysis and finds the following values:
EV: 100,000; PV: 125,000; AC: 100,
A. The project is on schedule but costs exceed budget. B. The project is on schedule and on budget. C. The project is behind schedule but on budget. D. Then project is behind schedule and costs exceed budget.
CV = EV-AC ~ 100,000 – 100,000 = 0
SV = EV- PV ~ 100,000 – 125,000 = -25,
- Project costs are over budget when
A. CPI > 1.
B. CPI < 1.
C. CPI < 0.
D. SPI = 1.
- Which of the following statements is not true?
A. Only those who realize that cultural differences are a resource to be fully utilized will survive. B. There is a common ground for people from different cultures on which they can interact without unsolvable conflicts. C. Cultural differences will always be an obstacle to be overcome. D. Culture is a critical lever for competitive advantage.
- What is a quality audit?
A. A team meeting dedicated to measuring and examinations. B. A quality based inspection of work results. C. A structured review of quality management activities. D. A meeting with the customer to identify quality requirements.
30. You are assigned as the project manager in a project with an aggressive schedule. During a recent meeting your team complained about the high pressure applied and the many hours of overwork time.
What is the preferred solution to handle the problem?
A. Try to obtain additional budget and time. B. Improve team communication and availability of high quality data on risks. Use this information to enable you to make well-founded decisions earlier. C. The problem might be the customer disturbing project rhythm. Keep him on distance from the team. D. Apply fast tracking to shorten project duration without additional work.
- Activity 1 has 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?
A. 36 days B. 37 days C. 39 days D. 42 days
CP = 20 + 10 – 2 +3 + 6 = 37
32. Which of the following statements is true concerning Scope Definition? (BAD QUESTION)
A. The Activity List is a principle output used for resource allocation and is an input to network diagramming. B. The Scope Statement is a principle output containing a narrative description of project work and deliverables. C. The Project Charter is a principle output and authorizes the project. D. The Work Breakdown Structure is a principle output and should be broken down to a level which allows sufficient accuracy in planning.
- All the following statements regarding "whistle blowing" are true except
A. It is the term used to define an employee’s decision to disclose information on unethical, immoral or illegal actions at work to an authority figure. B. 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. C. The consequences of whistle blowing are often extreme and include possible being branded as having bad judgment, firing, civil action and imprisonment. D. Carefully considered whistle blowing can lead to the end of unethical business practices.
- Which of the following statements concerning cross-cultural differences is true?
A. There is no one "best way" for project organization. B. Some cultures have values, some not. C. Cultural dilemmas should be denied to not allow them to disrupt project work. D. Communicating across cultures should only be done using language. The nonverbal dimension bears too many risks.
- What are dummy activities?
A. Activities in PDM which are not necessary and can be dropped if time is running out. B. Arrows in ADM which represent dependencies between nodes without real activities. C. Activities, which can be passed to the team members with the lowest IQ. D. Activities in PDM which are not performed by team members.
- Which of the following are not cost of quality?
A. Prevention costs. B. Failure costs. C. Transportation costs. D. Appraisal costs.
- What is a trigger in project risk management?
A. An expected situation causing an unidentified risk event to occur. B. A warning sign that an identified risk event might have occurred. C. An unexpected situation causing an identified risk event to occur. D. An unexpected situation causing an unidentified risk event to occur.
43. According to the project plan, a contractor is scheduled to deliver some software components at the end of the day. A regular payment is due to be made to this contractor tomorrow.
The project team received a note this morning informing them that the software delivery will be delayed by 2 weeks.
This morning, the project team received a note that the software will be delayed by 2 weeks.
How should the project management team react?
A. The project management team should delay payment for 2 weeks. B. The project management team must immediately find a different contractor. C. The project management team should conduct a meeting with the contractor to resolve the delivery issues before making the payment. D. The project management team should make the payment and reschedule the project plan.
44. 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?
A. Concurrent engineering. B. Resource over-allocation. C. Resource pooling. D. Program management
- What does the acronym RAM commonly stand for in project management?
A. Responsibility Assignment Matrix. B. Remotely Applied Measurements. C. Risk Aware Management. D. Randomly Accessible Material.
- What is not handled as a constraint in project management?
A. Laws and regulations. B. Limits of authorization. C. Team preferences. D. Physical constraints.
- A precontract agreement that establishes the intent of a party to buy products or services is called a
A. Seller initial response. B. Seller immediate response. C. Letter of intent. D. Letter of credit.
- Which of the following is generally not regarded to be a motivator according to Frederick Herzberg?
A. Working conditions and interpersonal relations. B. Responsibility for enlarged task. C. Interest in the task. D. Recognition for achievement.
- Companies and institutions commonly hire leaders with
A. A strong position in negotiating. B. Experience in tricking business partners. C. Integrity and expertise. D. A strong link to local traditions.
55. You are the project manager and have contracted with a service provider to develop a complicated software solution. This software is necessary to control the machinery equipment which your project team will develop. It is a lump-sum contract with additional incentives for meeting predefined schedule targets. The payment schedule and incentives are as follows: 10% with order 20% after submission of prototype (+ 5% if delivered one week early) 50% after product delivery (+ 5 % if delivered one week early) 20% after final product acceptance (+ 5 % if delivered one week early)
Yesterday the company submitted the prototype to your project team. This was 2 weeks after the scheduled delivery date and 3 weeks after the date necessary to qualify for the incentive payment.
This morning, the manager of the contractor approached you to ask for changes to the payment schedule. They found that their initial work and costs were much higher than originally expected and they now wish to increase the second payment to 30% and reduce the final payment to 10%.
During the discussion you got the impression that the company is in serious financial trouble.
Which of the following might be the most appropriate initial step?
A. Offer to pay 25% now and to reduce the final payment down to 15%. B. Point out that the contractor is not in a position to demand a change to the contract. C. Demand an urgent meeting with the seller. D. Revisit the planning processes of project risk management to understand the upcoming risks in conjunction with the seller before any further decisions are made.
- A review of management processes and the associated documentation is commonly called
A. Audit. B. Inspection. C. Testing and measuring. D. Screening.
- Which of the following is true in regard to the Code of Accounts?
A. It allows one to easily identify the breakdown level of the item in the resource structure. B. It describes the coding structure used by the performing organization to report financial information in its general ledger. C. It is the collection of unique identifiers generally assigned to WBS items. D. It defines ethical behavior in the project and the responsibilities to the customer and the profession.
58. You are a member of your company's project office. The company is running many concurrent projects; most of them share a resource pool. Understanding how resources are utilized across projects is seen as being essential to cost effectiveness and profitability.
You recently received an inquiry to assess the benefits of using project management software to manage the company's project portfolio.
Which of the following is true?
A. Project management software has the capability to help organize resource pools. B. Project management software will dramatically simplify the task of leveling resources across projects with different project management teams. C. Supporting project portfolio management is not the project office's business. D. Evaluating project management software is not the project office's business.
- What are SMART objectives?
A. Objectives specified with far more detail than necessary for a successful project. B. Easily achievable objectives. C. Objectives that should be achieved in order to attain formal recognition. D. Objectives that have specific, measurable, assignable, realistic and time-related specifications.
60. You have been assigned to a new project and have finished the scope statement. You and your team are now going to create a Work Breakdown Structure. You are spending a lot of time discussing how to create a completely decomposed Work Breakdown Structure.
Which of the following is not relevant to this discussion?
A. Status/completion is measurable. B. Time/cost is easily estimated. C. Start/end events are clearly defined. D. Resource availability can be reliably foreseen.
65. A project management team discusses what scope means in a project.
All of the following statements are true except
A. The processes, tools, and techniques used by project scope management are mostly depending on the application area. B. Product scope includes features and functions that are to be included in a product or service. C. Project scope includes the work that must be done in order to deliver a product with the specified features and functions. D. Project Scope Management includes the processes required to ensure that the project includes all the work required and only the work required.
66. What is the S-curve in project management?
A. A graph that is generated if a normal curve is integrated. B. A graph that is to be integrated to generate a normal curve. C. A metaphoric description of the short term uncertainties that are present in every project. D. The graph that describes the typical growth of earned value during the course of the project.
- The output of the resource planning process is a document "resource requirements". This is a description of what types of resources are required in what quantities...
A. where the term resources is limited to equipment and materials. B. for each element at the lowest level of the work breakdown structure. C. where the term resources is limited to human resources. D. to be obtained solely from the performing organization.
- The major output document of Scope definition is the.
A. Hierarchically structured WBS. B. Flat Activity List. C. Narrative Scope Statement. D. The Project Charter for the project manager
- In regards of a cost baseline all of the following is true except
A. It is a time-phased budget that will be used to measure and monitor cost performance on the project. B. It can be easily created and updated as necessary. C. It is developed by summing estimated costs by period. D. It is usually displayed in the form of an S-curve.
- Which is not true in regard of ROI (Return on Investment)?
A. It defines the cumulated net income from an investment at a given point in time or during a defined period. B. It includes investment, direct and indirect costs and may include allowances for capital cost, depreciation, risk of loss, and/or inflation. C. It is generally stated in currency units, as a percentage or as an index figure. D. It is the time when cumulated net income is equal to the investment.
- Regarding Delphi Technique all of the following statements are true except
A. It is a way to reach a consensus of experts. B. Experts are identified but participate anonymously while a facilitator uses a questionnaire to solicit ideas. C. The experts are encouraged by the facilitator to make direct contact with each other during the assessment process to create a higher number of feedback loops. D. The responses are submitted and are then circulated to the experts for further comment.
- Network templates which contain only portions of a network are often referred to as
A. Subnets or fragments B. Subprojects C. Programs D. WBS items
- You are the project manager for a seminar and training session that approximately 2,000- employees will be attending. You have rented a hall for the seminar; however, you are unsure exactly how many people will attend. Moreover, the number of tables required will change depending on attendance. The cost of the furniture should be considered?
A. Variable cost B. Direct cost C. Fixed cost D. Transient cost
- Which of the following is the correct formula for calculating present value of a business or organization?
Note: R = Interest rate, n = time periods
A. Present Value = Future Value/(1+R)n B. Present Value = Future Value/(1-R)n C. Present Value = (1+R)n D. Present Value = (1-R)n / Future Value
- A narrative description of products or services to be supplied under contract is called:
A. the project plan. B. a statement of work. C. an exception report. D. Pareto analysis.
- An example of scope verification is:
A. reviewing the performance of an installed software module. B. managing changes to the project schedule. C. decomposing the WBS to a work package level. D. performing a benefit/cost analysis to determine if we should proceed with the project.
- Which of the following is not an example of a source of scope change?
A. a variation in government regulations. B. failure to include a required feature in the design of a telecommunication system. C. a need to engage in bottom-up cost estimating. D. introducing technology that was not available when scope was originally defined.
- The subdivision of major project deliverables, as identified in the scope statement, into smaller, more manageable components is called:
A. parametric estimation. B. scope definition. C. feasibility analysis. D. benefit-cost analysis.
- The process of establishing clear and achievable objectives, measuring their achievement, and adjusting performance in accordance with the results of the measurement is called:
A. strategic planning. B. alternative objectives inventory. C. management by objectives. D. contingency planning.
- Configuration management is:
A. used to ensure that the description of the project product is correct and complete. B. the creation of the work breakdown structure. C. the set of procedures developed to assure that project design criteria are met. D. a mechanism to track budget and schedule variances.
- A fundamental tenet of modern quality management holds that quality is most likely to be achieved by:
A. planning it into the project. B. developing careful mechanisms to inspect for quality. C. striving to do the best job possible. D. conducting quality circle activities.
- Your most recent project status report contains the following information: BCWP = 3,000, ACWP = 3,500 and BCWS = 4,000. The schedule variance is:
A. + 1,000.
B. + 500.
C. - 500.
D. - 1,000.
SV = EV – PV = 3000-4000 = -
