Test Bank For Contemporary Project Management 3rd Edition by Timothy Kloppenborg Chapter 1_15 by QuentinAxel

Chapter 1 - Introduction to Project Management TRUE/FALSE 1. A project is a temporary endeavor undertaken to create a unique product, service or result. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 4 OBJ: CPMT.KLOP.15.01.01 KEY: Bloom's: Knowledge

2. A project is a lasting endeavor undertaken to maintain a reliable product or service. ANS: F DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 4 OBJ: CPMT.KLOP.15.01.01 KEY: Bloom's: Comprehension

3. Most projects are conducted with constraints on the amount of time and funding available to the project manager. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 10 OBJ: CPMT.KLOP.15.01.01 KEY: Bloom's: Comprehension

4. Project plans and goals usually become more specific as early work is completed. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.06

REF: P. 4 OBJ: CPMT.KLOP.15.01.02 KEY: Bloom's: Knowledge

5. Operations consist of the ongoing work needed to ensure the organization continues to function effectively. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 5 OBJ: CPMT.KLOP.15.01.01 KEY: Bloom's: Knowledge

6. Customers may need to sacrifice expectations related to cost or schedule in order to realize their expectations for scope or quality. ANS: T DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.06

REF: P. 10 OBJ: CPMT.KLOP.15.01.01 KEY: Bloom's: Analysis

7. An important factor used to determine the phases in a project life cycle are the control needs of the organization(s) involved in the project. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 6 OBJ: CPMT.KLOP.15.01.02 KEY: Bloom's: Comprehension

8. Generally, project life cycle stages are designed so that the amount of money spent in each of the stages is nearly equivalent. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.06

REF: P. 6 OBJ: CPMT.KLOP.15.01.02 KEY: Bloom's: Comprehension

9. Project customers can be either internal or external to the organization. ANS: T

DIF: Easy

REF: P. 6

OBJ: CPMT.KLOP.15.01.02

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NAT: BUSPROG.CPMT.KLOP.15.03

KEY: Bloom's: Knowledge

10. Different project life cycle models are used for different types of projects. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.06

REF: P. 6 OBJ: CPMT.KLOP.15.01.02 KEY: Bloom's: Knowledge

11. All projects go through a common project life cycle that includes four stages: concept, development, production and close-out. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.06

REF: P. 6 OBJ: CPMT.KLOP.15.01.02 KEY: Bloom's: Analysis

12. The name and number of phases in a project life cycle are determined by the organization(s) involved in the project. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.06

REF: P. 6 OBJ: CPMT.KLOP.15.01.02 KEY: Bloom's: Application

13. Integration management represents the processes and activities to identify, define, combine, unify and coordinate the various processes and project management activities. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.06

REF: P. 9 OBJ: CPMT.KLOP.15.01.03 KEY: Bloom's: Knowledge

14. Scope management includes the processes to manage timely completion of the project. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.06

REF: P. 9 OBJ: CPMT.KLOP.15.01.03 KEY: Bloom's: Application

15. Communications management generally entails the processes that organize, manage, and lead the project team. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.06

REF: P. 9 OBJ: CPMT.KLOP.15.01.03 KEY: Bloom's: Application

16. Stakeholder management is comprised of the processes to identify the people, groups, or organizations that could impact or be impacted by the project, analyze their expectations and impact, and developing strategies for engaging them and managing conflicting interests. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 9 OBJ: CPMT.KLOP.15.01.03 KEY: Bloom's: Knowledge

17. Cost management processes are involved in planning, estimating, budgeting,m financing, funding, managing and controlling costs so that the project can be completed within the approved budget. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 9 OBJ: CPMT.KLOP.15.01.03 KEY: Bloom's: Knowledge

18. The most critical measures of project success are completing the project on schedule and on budget. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.06

REF: P. 11 OBJ: CPMT.KLOP.15.01.04 KEY: Bloom's: Analysis

19. Some projects are considered successful if they reap business benefits like increased profitability, even if completed late or over budget. ANS: T DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.06

REF: P. 11 OBJ: CPMT.KLOP.15.01.04 KEY: Bloom's: Analysis

20. In reality, many projects are fully successful in some ways, but less successful in others. ANS: T DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.06

REF: P. 11 OBJ: CPMT.KLOP.15.01.04 KEY: Bloom's: Analysis

21. In agile projects, the customer representative role is passive, and their involvement is typically limited to the early stages of the project. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 14 OBJ: CPMT.KLOP.15.01.05 KEY: Bloom's: Application

22. The project manager is normally directly accountable for the project results, schedule and budget. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 14 OBJ: CPMT.KLOP.15.01.06 KEY: Bloom's: Comprehension

23. The project management office (PMO) is typically the person or group that provides the financial resources and support for the project, and is accountable for enabling success. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.06

REF: P. 14 OBJ: CPMT.KLOP.15.01.06 KEY: Bloom's: Application

MULTIPLE CHOICE 1. Which of the following examples is NOT a typical or appropriate situation to employ project management? a. b. c. d.

improving an existing work process installing a new computer system conducting a routine, standard customer service operation developing a new product

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 5 OBJ: CPMT.KLOP.15.01.01 KEY: Bloom's: Application

2. Which of the following examples is NOT a typical or appropriate situation to employ project management? a. b. c. d.

improving a soldering process in an assembly line processing deposits and withdrawals in a bank installing a new accounting application on to a server developing a new medical device for use by clinics

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 5 OBJ: CPMT.KLOP.15.01.01 KEY: Bloom's: Application

3. All of the following factors have influenced the increased reliance upon project management in recent years EXCEPT:

a. rapid growth and changes in the information technology and telecommunications industries b. realization that methods for large projects can be modified and used for small projects c. increased international competition and its influence on consumer demands d. the decreased demands of ongoing operational work ANS: D DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 5 OBJ: CPMT.KLOP.15.01.01 KEY: Bloom's: Comprehension

4. Projects often require tradeoffs among all of the following EXCEPT: a. b. c. d.

scope cost schedule programs

ANS: D DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 10 OBJ: CPMT.KLOP.15.01.01 KEY: Bloom's: Comprehension

5. Once projects are completed, they will typically yield all of the following results EXCEPT: a. b. c. d.

a unique product, service or result make or buy decisions stakeholders whose interests are affected by the outcome a primary deliverable along with supporting deliverables

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 4 OBJ: CPMT.KLOP.15.01.01 KEY: Bloom's: Application

6. In an adaptive or change - driven project life cycle: a. the product or deliverable is well understood. b. planning precedes all executing. c. early results lead into planning later work. d. the waterfall approach is commonly used. ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 7 OBJ: CPMT.KLOP.15.01.05 KEY: Bloom's: Application

7. Which of the following statements correctly describes project management? a. b. c. d.

Project management applies knowledge, skills, tools and techniques to project activities. Project management should not involve tradeoffs between scope, schedule and cost. Project management only relies upon checklists to plan and execute the work. Project management’s goal is to maintain efficiency of ongoing operations.

ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.06

REF: P. 4 OBJ: CPMT.KLOP.15.01.01 KEY: Bloom's: Comprehension

8. Which of the following statements regarding project life cycles is most accurate? a. All research and development organizations rely upon a four-stage project life cycle that includes initiating, planning, executing and closing. b. The project life cycle is the same regardless of the type of projects managed by an organization.

c. Many different project life cycle models are used, for different types of projects. d. All project life cycles are the same across every industry ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 6 OBJ: CPMT.KLOP.15.01.02 KEY: Bloom's: Comprehension

9. In the PMBOK, the five logical groupings of the project management inputs, tools and techniques, and outputs are called the: a. project management knowledge areas b. project management process groups c. life cycle stages d. phases and gates ANS: B DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 9 OBJ: CPMT.KLOP.15.01.03 KEY: Bloom's: Analysis

10. When applied to project management, the human resource management knowledge area typically involves which of the following activities? a. b. c. d.

determining the work necessary for project completion estimating, budgeting and controlling project costs identifying, analyzing and controlling project risks organizing, managing and leading the project team

ANS: D DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 9 OBJ: CPMT.KLOP.15.01.03 KEY: Bloom's: Knowledge

11. Which of the ten knowledge areas defined in the Project Management Body of Knowledge includes the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully? a. Project scope management b. Project quality management c. Project communications management d. Project stakeholder management ANS: A DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 9 OBJ: CPMT.KLOP.15.01.03 KEY: Bloom's: Knowledge

12. Which of the ten knowledge areas defined in the Project Management Body of Knowledge includes the activities of purchasing or acquiring products, services or results from outside the project team? a. b. c. d.

Scope management Quality management Communications management Procurement management

ANS: D DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 9 OBJ: CPMT.KLOP.15.01.03 KEY: Bloom's: Knowledge

13. Achieving project success is determined by all of the following EXCEPT: a. b. c. d.

creating deliverables that include all required features involving only important key stakeholders completing the project on schedule and on budget providing outputs that please the project’s customers

ANS: B DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 9 OBJ: CPMT.KLOP.15.01.04 KEY: Bloom's: Analysis

14. Projects are considered successful for all of the reasons below EXCEPT:.. a. b. c. d.

members of the team learn new skills working on the project. the organization captures lessons learned for future projects. the team has demonstrated heroics to meet project objectives the organization reaps business level benefits.

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 11 OBJ: CPMT.KLOP.15.01.04 KEY: Bloom's: Application

15. Which of the following actions will likely cause a project to fail? a. b. c. d.

dedicating valuable team member time to identify risk events spending project funding to procure needed tools and spare parts unclear or conflicting stakeholder expectations conducting a project audit to evaluate performance

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 12 OBJ: CPMT.KLOP.15.01.04 KEY: Bloom's: Application

16. Project failure can result from all of the following causes EXCEPT: a. b. c. d.

support of senior management changes in scope are not agreed upon by all parties involved. too little time is allowed for project completion. planning is not adequate.

ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 12 OBJ: CPMT.KLOP.15.01.04 KEY: Bloom's: Comprehension

17. A project manager in agile projects who serves and leads in a collaborative, facilitation manner is called a: a. b. c. d.

program manager scrum master sponsor functional manager

ANS: B DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 15 OBJ: CPMT.KLOP.15.01.06 KEY: Bloom's: Knowledge

18. Typically, a steering team or leadership team is responsible for all of the following project related roles EXCEPT: a. b. c. d.

selecting, prioritizing and resourcing projects providing rigid policies, procedures, standards and guidelines ensuring accurate progress is reported and adjustments made aligning projects with the organization’s strategic plans

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 14 OBJ: CPMT.KLOP.15.01.06 KEY: Bloom's:Comprehension

19. Which of the following roles is typically associated with the project manager? a. the person assigned by the performing organization to lead the team that is responsible for achieving the project objectives b. the person with management authority over a unit within a functional organization c. the person responsible for project methods, standards and training d. the person responsible for providing the financial resources and support for the project and is accountable for enabling success. ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.06

REF: P. 14? OBJ: CPMT.KLOP.15.01.06 KEY: Bloom's: Application

20. Typically, the senior customer representative is responsible for which of the following project roles? a. b. c. d.

develops the project schedule and budget determines how the project work will be accomplished ensures the needs of the customer’s organization are identified and prioritized helps the project manager with running meetings and providing status reports

ANS: C DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 14? OBJ: CPMT.KLOP.15.01.06 KEY: Bloom's: Knowledge

21. From an agile project management perspective, which of these constraints are considered to be fixed? a. Quality and value c. Scope and time b. Resources and schedule d. Customer satisfaction ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 11 OBJ: CPMT.KLOP.15.01.05 KEY: Bloom's: Comprehension

ESSAY 1. Contrast project management with operations management. How do these differences impact the approach required to manage a project successfully? ANS: Key concepts to be covered in the response include: Operations - Ongoing; continuous; repetitive process- Management approach can include using checklists to guide operational work. Project - Temporary; unique - management of a project entails gathering requirements and creating a project plan. Using a checklist is not sufficient due to the unique nature of the project. DIF: Moderate REF: P. 5 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.01.01 KEY: Bloom's: Comprehension

2. Project managers frequently face competing constraints. Identify these common constraints and describe approaches that project managers can use to make the trade-offs required to succeed. ANS: Key concepts to be covered in the response include: Project constraints are: scope, schedule, cost, quality, resources, and risks.

During management of a project, tradeoffs must be made between these factors. From a client perspective, projects typically have time and cost constraints, so a project manager needs to be concerned with achieving desired scope and quality, subject to the constraints of time and cost. As a project is conducted, many opportunities and challenges may occur. The project manager will need to understand which of these four constraints must take precedence, and which may be sacrificed. Understanding the customer’s desires will help the project manager to make a good decision. DIF: Challenging REF: P. 4, pp. 10 - 11 OBJ: CPMT.KLOP.15.01.01 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Analysis 3. The Project Management Body of Knowledge (PMBOK® Guide) published by the Project Management Institute identifies five process groups. Briefly identify and describe each of these five process groups. ANS: Key concepts to be covered in the response include: A project management process group is a “logical grouping of the project management inputs, tools and techniques, and outputs.” The five process groups defined in the PMBOK Guide are: Initiating: Define the project or new phase and obtain authorization Planning: Establish scope, refine objectives and define actions to attain objectives. Executing: Complete the work defined to satisfy project specifications. Monitoring and controlling: Track, review and regulate progress and performance, identify changes required, and initiate changes. Closing: Finalize all activities to formally close a project or phase. DIF: Moderate REF: P. 9 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.01.01 KEY: Bloom's: Comprehension

4. Compare and contrast predictive, or plan-driven project life cycles with agile, or change-driven life cycles. When might each type of life cycle be appropriate? ANS: Key concepts to be covered in the response include: In a predictive or plan-driven life cycle, the product is well understood. There is a single detailed planning phase that is completed prior to project execution. In an adaptive or change-driven project life cycle, a single detailed project plan is not completed prior to project execution. The plan is developed iteratively and incrementally. Iterations are very rapid and are fixed in time and cost. Early results lead into planning later work. DIF: Moderate REF: P. 7 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.01.05 KEY: Bloom's: Comprehension

5. The leadership of top management is often cited as a factor that is critical to project success. Describe the key project related activities of the steering team, chief projects officer and sponsor.

ANS: Key concepts to be covered in the response include: Steering Team - Often comprised of the CEO and direct reports. Responsible for selecting, prioritizing, and resourcing projects in accordance with the organization’s strategic planning. As the project progresses, they also ensure that accurate progress is reported and adjustments made as necessary. Chief Projects Officer - This role is sometimes called a project management office (PMO), which is “an organizational structure that standardizes the project related governance processes and facilitates the sharing of resources, methodologies, tools and techniques.” The role of the PMO can range from supporting project managers, to controlling them by managing projects directly. Sponsor - PMI’s definition is that a sponsor is “the person or group that provides resources and support for the project and is accountable for enabling success.” This person takes an active role in chartering the project, reviewing progress, mentoring, and assisting the project manager throughout the project. DIF: Moderate REF: P. 14 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.01.06 KEY: Bloom's: Comprehension

Chapter 2 - Project Selection and Prioritization TRUE/FALSE 1. Strategic analysis is an important first step in setting strategic direction. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 28 OBJ: CPMT.KLOP.15.02.01 KEY: Bloom's: Knowledge

2. Strategic analysis is often called SWOT - Strengths, Weaknesses, Opportunities and Threats (SWOT). ANS: T DIF: Easy NAT: BUSPROG: CPMT.KLOP.15.03

REF: P. 28 OBJ: CPMT.KLOP.15.02.01 KEY: Bloom's: Knowledge

3. Strategic analysis is often called SWOT - Start With Objectives Template (SWOT). ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P.28 OBJ: CPMT.KLOP.15.02.01 KEY: Bloom's: Comprehension

4. The internal part of strategic analysis considers opportunities and threats posed by competitors, suppliers and regulatory agencies among others. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 28 OBJ: CPMT.KLOP.15.02.01 KEY: Bloom's: Comprehension

5. The organization’s leadership should establish guiding principles such as the vision and mission for an organization before developing strategic objectives. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 28 OBJ: CPMT.KLOP.15.02.01 KEY: Bloom's: Comprehension

6. The organization’s leadership should establish the strategic objectives to set the stage for the strategic analysis. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 31 OBJ: CPMT.KLOP.15.02.01 KEY: Blooms: Application

7. The vision should present a positive, inspiring and vivid description of the organization as it currently exists. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 29 OBJ: CPMT.KLOP.15.02.01 KEY: Bloom's: Comprehension

8. Strategic objectives should focus decisions regarding which projects to select and how to prioritize them. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 31 OBJ: CPMT.KLOP.15.02.03 KEY: Bloom's: Comprehension

9. Strategic objectives describe both long and short term results that are desired, along with measures to determine their achievement.

ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 31 OBJ: CPMT.KLOP.15.02.03 KEY: Bloom's: Knowledge

10. Projects tend to be the primary method for implementing many objectives. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 31, 33 OBJ: CPMT.KLOP.15.02.01 KEY: Bloom's: Comprehension

11. A portfolio is a collection of projects, programs, subportfolios, and operations managed as a group to achieve strategic business objectives. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 32 OBJ: CPMT.KLOP.15.02.03 KEY: Bloom's: Knowledge

12. A project portfolio is a useful storage medium that enables the project manager to consolidate all project information in a single, convenient location. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 32 OBJ: CPMT.KLOP.15.02.03 KEY: Bloom's: Comprehension

13. Portfolio management aligns with organizational strategies by selecting the right projects, prioritizing work, and providing needed resources. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 31 OBJ: CPMT.KLOP.15.02.03 KEY: Bloom's: Knowledge

14. If an organization does not have the right capabilities, a project may be too difficult to complete successfully. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 34 OBJ: CPMT.KLOP.15.02.03 KEY: Bloom's: Comprehension

15. The degree of formality used in selecting projects varies widely across organizations. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 31 OBJ: CPMT.KLOP.15.02.03 KEY: Bloom's: Comprehension

16. While there is a wide variety of projects across organizations, the degree of formality used in selecting them is largely uniform. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 35 OBJ: CPMT.KLOP.15.02.03 KEY: Bloom's: Comprehension

17. The prioritization of projects in a portfolio should consider whether the demands of performing each project are clearly understood. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 36 OBJ: CPMT.KLOP.15.02.03 KEY: Bloom's: Comprehension

18. Payback period models do not consider the amount of profit that may be realized after the costs are paid. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 37 OBJ: CPMT.KLOP.15.02.02 KEY: Bloom's: Comprehension

19. None of the financial project selection models ensure alignment of the project with an organization’s strategic goals. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 38 OBJ: CPMT.KLOP.15.02.02 KEY: Bloom's: Comprehension

20. Scoring models are most useful when there are multiple projects and several criteria to consider. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 38 OBJ: CPMT.KLOP.15.02.04 KEY: Bloom's: Knowledge

21. Traditional financial models are most useful when there are multiple projects and several criteria to consider. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 38 OBJ: CPMT.KLOP.15.02.04 KEY: Bloom's: Comprehension

22. There are times that certain projects must be selected regardless of any considerations such as strategic fit, profitability or probability of success. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 38 OBJ: CPMT.KLOP.15.02.03 KEY: Bloom's: Comprehension

23. In addition to considering financial factors, project selection should often consider how well each project fits with the organization’s strategic planning. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 38 OBJ: CPMT.KLOP.15.02.04 KEY: Bloom's: Comprehension

24. Scoring models are very useful in providing input regarding the starting order of projects. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 40 OBJ: CPMT.KLOP.15.02.04 KEY: Bloom's: Knowledge

25. Project selection scoring models are very useful in providing performance data that can be used to terminate a project. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 38 OBJ: CPMT.KLOP.15.02.04 KEY: Bloom's: Application

26. When a firm prepares to submit a proposal, it is really conducting a small project with the primary deliverable of the project being a compelling and complete proposal. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 43 OBJ: CPMT.KLOP.15.02.05 KEY: Bloom's: Knowledge

27. When a client company decides to engage an external contractor to perform project work, it must be prepared to submit a proposal and prepare a bid. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 43 OBJ: CPMT.KLOP.15.02.05 KEY: Bloom's: Application

MULTIPLE CHOICE 1. Which of the following statements concerning strategic analysis is true? a. b. c. d.

Strategic analysis focuses exclusively upon external analysis. External analysis focuses on the strengths and weaknesses of the organization. Internal analysis focuses on the threats and opportunities facing the organization. External analysis focuses on the threats and opportunities facing the organization.

ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 28 OBJ: CPMT.KLOP.15.02.01 KEY: Bloom's: Comprehension

2. All of the following factors influence the opportunities and threats an organization must consider when performing a strategic analysis EXCEPT: a. b. c. d.

competitors suppliers regulatory agencies employees

ANS: D DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 28 OBJ: CPMT.KLOP.15.02.01 KEY: Bloom's: Knowledge

3. A clear and compelling vision will have all the following characteristics EXCEPT: a. b. c. d.

often requires extra effort to achieve. often requires several years to achieve. provides detailed roadmap for managing a project helps stakeholders to understand the direction of the firm.

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 29 OBJ: CPMT.KLOP.15.02.01 KEY: Bloom's: Comprehension

4. Which of the following responses most accurately depicts the correct sequence of activities in the strategic planning process? a. b. c. d.

strategic objectives - strategic analysis - guiding principles - flow-down objectives guiding principles - strategic analysis - strategic objectives - flow-down objectives strategic analysis - guiding principles - strategic objectives - flow-down objectives guiding principles - strategic objectives - flow-down objectives - strategic analysis

ANS: C DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 28 - 31 OBJ: CPMT.KLOP.15.02.01 KEY: Bloom's: Application

5. Many writers have stated that effective objectives should be: a. b. c. d.

broad - to cover many dimensions of the business measurable - to track progress unachievable - to inspire maximum performance resource based - to focus on the inputs

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 31 OBJ: CPMT.KLOP.15.02.01 KEY: Bloom's: Comprehension

6. All of the following statements concerning project portfolios are true EXCEPT:

a. b. c. d.

The projects in a portfolio are grouped to be managed collectively. Portfolios cannot include operations and programs. Portfolios usually include a mix of high-risk and low-risk projects. All projects in a portfolio contribute to the organization’s goals.

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 32 OBJ: CPMT.KLOP.15.02.01 KEY: Bloom's: Comprehension

7. Portfolios deal with all of an organization’s projects, while programs deal with: a. ongoing operations b. a specific group of related projects c. resource availability d. tradeoffs between schedule, scope and quality ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 32 OBJ: CPMT.KLOP.15.02.01 KEY: Bloom's: Comprehension

8. Portfolio management helps an organization achieve its strategic goals in all of the following ways EXCEPT: a. b. c. d.

managing ongoing projects providing needed resources selecting the right projects prioritizing work to be done

ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P.31 OBJ: CPMT.KLOP.15.02.01 KEY: Bloom's: Comprehension

9. The document that describes why the project is needed, and may include estimated costs and benefits, is called a: a. program management plan b. business case c. SWOT analysis d. guiding principle ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 35 OBJ: CPMT.KLOP.15.02.03 KEY: Bloom's: Comprehension

10. All of the following factors should be assessed to determine an organization’s ability to perform projects EXCEPT: a. Does the organization have free and open communication, creativity, and empowered decision making? b. Does the organization have a clearly defined project management process? c. Do teams and individuals follow instructions well? d. Does the organization monitor and understand it’s external environment? ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 34 OBJ: CPMT.KLOP.15.02.03 KEY: Bloom's: Comprehension

11. All of the following represent appropriate sources to identify new potential projects EXCEPT: a. existing and potential customers b. the operations staff within the organization

c. industry and trade journals d. lessons learned from previous projects ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 35 OBJ: CPMT.KLOP.15.02.03 KEY: Bloom's: Comprehension

12. Which of the following statements best describes the contemporary use of financial models and scoring models for project selection? a. These methods are often used together to ensure financial and non-financial factors are both considered. b. Financial methods are preferred because they ensure alignment with the organization’s strategic goals. c. Scoring models are unreliable because they fail to consider financial factors. d. One of these techniques is typically used to the exclusion of the other, due to time demands. ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 36 OBJ: CPMT.KLOP.15.02.03 KEY: Bloom's: Application

13. Which of the following statements correctly describes a weakness associated with the financial project selection model? a. The benefit-to-cost models favor projects which generate the smallest absolute return over a specified period. b. Payback period models do not consider the profit to be realized after the costs are paid. c. The Net Present Value (NPV) method does not consider the time value of money. d. The Internal Rate of Return (IRR) method is difficult to use when a project has conventional cash flows. ANS: B DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 37 OBJ: CPMT.KLOP.15.02.02 KEY: Bloom's: Application

14. All of the following criteria serve as a valid basis for identifying potential projects in most organizations EXCEPT: a. b. c. d.

social need environmental considerations technological advances internal politics

ANS: D DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 35 OBJ: CPMT.KLOP.15.02.03 KEY: Bloom's: Knowledge

Criteria:

Strategic Fit

Risk

Market Potential

Probability of Success

Weight:

Weighted Total Score

Project

Project A 3

18 4

21 5

104

Project B

30 3

Project C 2

Project D

35 3

24 2

109

21 5

20 12 35 15 82 Figure 2-1 Project Selection and Prioritization Matrix

15. Based on the information provided in Figure 2-1, which criterion is most important to the leadership team? a. b. c. d.

strategic fit risk market potential probability of success

ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 40 OBJ: CPMT.KLOP.15.02.04 KEY: Bloom's: Application

16. Based on the information provided in Figure 2-1, which project has the highest probability of success? a. b. c. d.

Project A Project B Project C Project D

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 40 OBJ: CPMT.KLOP.15.02.04 KEY: Bloom's: Application

17. Consider the information provided in Figure 2-1. Based on the results in the project selection and prioritization matrix, which project would you select if you were limited to selecting only one project? a. b. c. d.

Project A Project B Project C Project D

ANS: B DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 40 OBJ: CPMT.KLOP.15.02.04 KEY: Bloom's:Application

18. Based on the information provided in Figure 2-1, which project is least attractive based on the strategic fit? a. b. c. d.

Project A Project B Project C Project D

ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 40 OBJ: CPMT.KLOP.15.02.04 KEY: Bloom's: Application

19. Once selected projects have been prioritized, it is time to assign resources to projects based on their order of priority. Resources could include all of the following EXCEPT: a. subject matter experts c. quality metrics b. equipment d. money

ANS: C DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 41 OBJ: CPMT.KLOP.15.02.03 KEY: Bloom's: Knowledge

20. Which of the following is NOT a typical source selection criterion that an organization would use to evaluate potential contractors? a. life cycle cost b. references c. personalities d. technical approach ANS: C DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 43 OBJ: CPMT.KLOP.15.02.05 KEY: Bloom's: Knowledge

21. All of the following organizations can effectively use a scoring model to select and prioritize competing projects EXCEPT: a. b. c. d.

the leadership team client companies contractor companies program management office

ANS: D DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 43 OBJ: CPMT.KLOP.15.02.04 KEY: Bloom's: Application

22. All of the following may be negotiated between a client company and a contractor EXCEPT: a. the amount of money to be paid. b. quality standards c. selection criteria for scoring models d. personnel assignments ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 44 OBJ: CPMT.KLOP.15.02.05 KEY: Bloom's: Comprehension

ESSAY 1. Describe the relationship between the strategic planning process and portfolio management in an organization. ANS: Key concepts to be covered in the response could include, but are not limited to: Project selection should begin with the organization’s strategic planning process, which could include a strategic analysis of the organization’s strengths and weaknesses (SWOT analysis). A vision and mission statement would then be developed, and would be used to set strategic objectives for the organization. Portfolio management would follow, as it “aligns with organizational strategies by selecting the right projects, prioritizing the work, and providing needed resources”. DIF: Challenging REF: P. 31, 44 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.02.01 KEY: Bloom's: Application

2. Describe the advantages and limitations of financial models in project selection.

ANS: Key concepts to be covered in the response could include, but are not limited to: Financial models are helpful because projects are investments. These models can help to ensure that selected portfolio of projects meets the organization’s requirements for revenue, costs and returns. Organizations often temper financial analysis with non-financial factors, which are sometimes included with the financial factors in a weighted scoring model. All financial analysis techniques have both strengths and weaknesses and on their own, and cannot insure alignment with the organization’s strategic goals. They must be tempered with other considerations. DIF: Moderate REF: P. 37 - 38 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.02.02 KEY: Bloom's: Comprehension

3. Describe the advantages and limitations of scoring models in project selection. ANS: Key concepts to be covered in the response could include, but are not limited to: Scoring models are helpful in selecting and prioritizing potential projects. They are useful if there are several criteria for project selection, and multiple projects to consider. Project selection criteria should include how well each potential project fits with the organization’s strategic planning. The company’s leaders should agree on these criteria. Mandatory “must do” criteria should be identified and all criteria should be assigned weights. Projects can then be scored according to each criterion and assigned a weighted score. When completed the weighted scoring models can serve as a starting point for project selection and order of priority However, other factors should be considered such as the urgency of each project, practical details concerning the timing, the cost of delaying expected benefits from selected projects, and conflicting resource needs. DIF: Challenging REF: P. 38 - 41 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.02.04 KEY: Bloom's: Application

Chapter 3 - Organizational Capability: Structure, Culture and Roles TRUE/FALSE 1. In a functional organization, staff are grouped by areas of specialization and managed by a person with expertise in that area. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 54 OBJ: CPMT.KLOP.15.03.01 KEY: Bloom's: Knowledge

2. In a projectized organization the functional manager has the most control. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 55 OBJ: CPMT.KLOP.15.03.01 KEY: Bloom's: Comprehension

3. In a functional organization workers can learn readily from others in their discipline and keep their skills sharp. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 54 OBJ: CPMT.KLOP.15.03.01 KEY: Bloom's: Knowledge

4. In a projectized organization most people are assigned to a project and report upward through the project manager. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 55 OBJ: CPMT.KLOP.15.03.01 KEY: Bloom's: Knowledge

5. In a projectized organization the project manager has extensive authority for budgets, personnel and decision making. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 54-55 OBJ: CPMT.KLOP.15.03.01 KEY: Bloom's: Comprehension

6. Projectized organizations are especially effective at helping team members to maintain their discipline-specific competencies. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 54-55 OBJ: CPMT.KLOP.15.03.01 KEY: Bloom's: Comprehension

7. A matrix organization is any organizational structure in which the project manager shares responsibility with the functional manager for assigning priorities and directing the work of persons assigned to the project. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 56 OBJ: CPMT.KLOP.15.03.01 KEY: Bloom's: Comprehension

8. A form of matrix organization in which the functional manager and project manager have equal amounts of power is called a weak matrix. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P.57 OBJ: CPMT.KLOP.15.03.01 KEY: Bloom's: Comprehension

9. If the project scope is hard to define early in the project or much change is expected, a traditional or plan-driven approach should be adopted. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 64 OBJ: CPMT.KLOP.15.03.04 KEY: Bloom's: Comprehension

10. Organizational culture is comprised of the values, social rituals, and symbols that are shared among members of the organization and taught to new members. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 59 OBJ: CPMT.KLOP.15.03.02 KEY: Bloom's: Knowledge

11. In “role cultures” reliable workers have the utmost respect for regulations and laws. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 60 OBJ: CPMT.KLOP.15.03.02 KEY: Bloom's: Knowledge

12. Hallmarks of “personal cultures” are skill-based assignments, self-motivated workers, and more deference paid to knowledge than to formal authority. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 60 OBJ: CPMT.KLOP.15.03.02 KEY: Bloom's: Comprehension

13. In “personal cultures” people display an attitude that collaboration is satisfying and stimulating. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 60 OBJ: CPMT.KLOP.15.03.02 KEY: Bloom's: Knowledge

14. When the project sponsor and manager are determining how to create the project culture, it is important to make the project culture as ethical as possible. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 61 OBJ: CPMT.KLOP.15.03.02 KEY: Bloom's: Knowledge

15. While differing in details, all of the major types of project life cycle models have a series of exactly four phases with activities that need to be completed and approvals that must be received before the project can proceed to the next phase. ANS: T DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 62 OBJ: CPMT.KLOP.15.03.04 KEY: Bloom's: Application

16. The project sponsor is the person or group that provides resources and support for the project and is accountable for enabling project success. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 66 OBJ: CPMT.KLOP.15.03.05 KEY: Bloom's: Knowledge

17. A scrum master is a project manager who serves and leads in a collaborative, facilitating manner. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 72 OBJ: CPMT.KLOP.15.03.05 KEY: Bloom's: Comprehension

18. The steering team is often responsible for ensuring that several customer related tasks are performed, including identification of the customers and prioritization of their desires.

ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 65, 67 OBJ: CPMT.KLOP.15.03.05 KEY: Bloom's: Comprehension

19. Among the most important behaviors required of project managers are honoring trust, protecting people, establishing a culture of honesty, defending core values and leading major change. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 70 OBJ: CPMT.KLOP.15.03.05 KEY: Bloom's: Knowledge

20. The decision to kill a project if needed is typically reached jointly through agreement between the project customer and the project contractor. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 67 OBJ: CPMT.KLOP.15.03.05 KEY: Bloom's: Comprehension

21. Core teams on agile projects need strong direction from the sponsor and project manager. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 74 OBJ: CPMT.KLOP.15.03.05 KEY: Bloom's: Comprehension

22. It is generally unnecessary to have every function represented on the core team of the project, as that would make communications and scheduling of meetings more difficult. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 73 OBJ: CPMT.KLOP.15.03.05 KEY: Bloom's: Comprehension

MULTIPLE CHOICE 1. Which of the following characteristics is NOT associated with a functional organization? a. b. c. d.

Each employee has one clear superior. Resources are easily shared between departments and projects. Staff are managed by a person with expertise in their area. Staff are grouped by areas of specialization.

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 54, 56 OBJ: CPMT.KLOP.15.03.01 KEY: Bloom's: Comprehension

2. Which of the following is an advantage associated with managing projects in a functional organization? a. b. c. d.

Each unit contains a variety of specialists suited to solving complex problems. Unity of command - one clear supervisor for each worker. Rapid communication between the various functions working on the project. Combines task focus with technical capability.

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 54 OBJ: CPMT.KLOP.15.03.01 KEY: Bloom's: Comprehension

3. All of the following are advantages associated with managing projects in a projectized organization EXCEPT: a. One boss - the project manager

b. Response times and decision making are swift. c. Departmental barriers are reduced. d. New assignment is guaranteed after the project ends ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 56 OBJ: CPMT.KLOP.15.03.01 KEY: Bloom's: Comprehension

4. Projectized organizations often adopt which of the following techniques where project team members are physically placed close to one another to improve communications and working relationships? a. b. c. d.

collaboration co-location coordination consolidation

ANS: B DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 56 OBJ: CPMT.KLOP.15.03.01 KEY: Bloom's: Application

5. Which of the following is a disadvantage associated with managing projects in a projectized organization? a. b. c. d.

Response times and decision making are slow. Team members assigned to a project are often underutilized. Team members have difficulty focusing on project issues. Traditional department barriers are reduced.

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 56 OBJ: CPMT.KLOP.15.03.01 KEY: Bloom's: Comprehension

6. Which of the following organizational structures is designed to achieve a balance of task focus and technical capability? a. b. c. d.

functional organization projectized organization matrix organization siloed organization

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 56 OBJ: CPMT.KLOP.15.03.01 KEY: Bloom's: Comprehension

7. Which of the following organizational structures runs contrary to the unity of command principle - that each employee works for a single supervisor? a. b. c. d.

functional organization projectized organization matrix organization siloed organization

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 57 OBJ: CPMT.KLOP.15.03.01 KEY: Bloom's: Comprehension

8. Which of the following is an advantage associated with the matrix organization? a. Resources can be shared between departments and projects. b. Unity of command - one clear supervisor for each employee.

c. Faster response times and decision making. d. Having multiple bosses. ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 56-57 OBJ: CPMT.KLOP.15.03.01 KEY: Bloom's: Comprehension

9. Through shared values, organizational cultures can informally do all the following EXCEPT: a. b. c. d.

motivate the ethical actions and communications of managers and subordinates. determine how people are treated, controlled and rewarded. establish how cooperation, competition, conflict and decision making are handled. eliminate politics in the workplace

ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 59 OBJ: CPMT.KLOP.15.03.02 KEY: Bloom's: Comprehension

10. When trying to understand a corporate culture, it is helpful to understand the types of power that are used. In “power cultures”: a. b. c. d.

workers closely follow their appointed roles. supervisors exert a great deal of economic and political power. deference is paid to knowledge rather than authority. collaboration is believed to be satisfying and stimulating.

ANS: B DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 60 OBJ: CPMT.KLOP.15.03.02 KEY: Bloom's: Comprehension

11. Some organizational culture characteristics make project success more likely. These characteristics include all of the following EXCEPT: a. b. c. d.

collaboration to meet organizational goals lack of appreciation for project management engagement of stakeholders teamwork across cultures

ANS: B DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 60 OBJ: CPMT.KLOP.15.03.02 KEY: Bloom's: Comprehension

12. The project life cycle where the majority of the project work is conducted in iterations (sometimes called sprints) is called: a. Construction project life cycle b. DMAIC model c. Agile project life cycle d. R & D project life cycle ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 63-64 OBJ: CPMT.KLOP.15.03..04 KEY: Bloom's: Comprehension

13. Project planning teams use project life cycle models because various types of projects have differing demands. Which of the following sequences of stages is most appropriate for a life cycle model for construction projects? a. define - measure - analyze - improve - control b. concept definition - demonstration - development - production c. pre-planning - design - procurement - construction - start up

d. concept - requirements - design - code - test - turnover ANS: C DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 63 OBJ: CPMT.KLOP.15.03.04 KEY: Bloom's: Knowledge

14. Project planning teams use project life cycle models because various types of projects have differing demands. Which of the following sequences of stages is most appropriate for a life cycle model for research and development (R & D) projects? a. define - measure - analyze - improve - control b. project envisioning - requirements gathering - incremental implementation - production release c. pre-planning - design - procurement - construction - start up d. idea generation - idea screening - concept development - validation - transition ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 63-64 OBJ: CPMT.KLOP.15.03.04 KEY: Bloom's: Comprehension

15. In agile projects, the individual who leads in a collaborative manner by guiding teams and removing obstacles to their progress is called the: a. project manager b. sponsor c. scrum master d. facilitator ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 72 OBJ: CPMT.KLOP.15.03.05 KEY: Bloom's: Comprehension

16. According to PMI’s “Code of Ethics and Professional Conduct”, project managers should exhibit all of the following behaviors EXCEPT: a. b. c. d.

authority - exert economic and political power fairness - make decisions and act impartially honesty - understand the truth and act in a truthful manner responsibility - take ownership for decisions

ANS: A DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 61 OBJ: CPMT.KLOP.15.03.03 KEY: Bloom's: Knowledge

17. Which of the following executive roles is responsible for overall priority setting, project selection and prioritization, general guidance and encouragement? a. b. c. d.

Steering Team Sponsor Project Management Office Chief Projects Officer

ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 65 OBJ: CPMT.KLOP.15.03.05 KEY: Bloom's: Comprehension

18. During project execution, the project sponsor’s responsibilities include all of these EXCEPT: a. ensure communications b. charter the project c. nurture key stakeholders d. ensure quality ANS: B

DIF: Moderate

REF: P. 66

OBJ: CPMT.KLOP.15.03.05

NAT: BUSPROG.CPMT.KLOP.15.03

KEY: Bloom's: Comprehension

19. The Chief Projects Officer (CPO) is responsible for the individuals working on a project in all of the following ways EXCEPT: a. b. c. d.

that they follow the detailed project plan that the CPO has created. that they capture lessons learned from completed projects. that they use templates and standards when appropriate. that they receive the training they need.

ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 69 OBJ: CPMT.KLOP.15.03.05 KEY: Bloom's: Comprehension

20. Which of the following are among the challenges faced by project managers? a. b. c. d.

They frequently have more authority than responsibility. They must determine how networks of people function in the organization. They must learn how to accomplish project work unilaterally - on their own. They are not allowed to be flexible about how the project should be accomplished.

ANS: B DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 70-71 OBJ: CPMT.KLOP.15.03.05 KEY: Bloom's: Comprehension

21. There are several tasks that a project customer (or sponsor acting in that capacity) can do to enhance the probability of success. Which of the following are generally performed independent of the project contractor who will perform the work? a. b. c. d.

conduct kick-off meeting develop clear requirements prioritize project write and sign the project charter

ANS: C DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 67 OBJ: CPMT.KLOP.15.03.05 KEY: Bloom's: Knowledge

22. There are several tasks that a project customer (or sponsor acting in that capacity) can do to enhance the probability of success. All of the following are generally performed jointly with the project contractor who will perform the work EXCEPT: a. b. c. d.

terminate project if needed develop clear requirements use a control system conduct a kick-off meeting

ANS: A DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 67 OBJ: CPMT.KLOP.15.03.05 KEY: Bloom's: Knowledge

23. In agile projects, overall planning is at a high level, and only the near-term work is planned in detail. The project work is conducted in iterations (sprints) that are normally: a. no more than one calendar year b. a variable length depending on project scope c. a fixed length of two or four weeks d. assigned to one person on the team ANS: C

DIF: Challenging

REF: P. 64

OBJ: CPMT.KLOP.15.03.04

NAT: BUSPROG.CPMT.KLOP.15.03

KEY: Bloom's: Application

24. Which of the following roles and attributes do NOT describe the core team members on a project? a. Core team members often make project decisions jointly with the project manager. b. Core team members are the small group of people who are usually on the project from start to finish. c. Core team members join the project on a temporary basis to perform specific project activities as necessary. d. Core team members may supervise the work of subject matter experts. ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 73 OBJ: CPMT.KLOP.15.03.05 KEY: Bloom's: Comprehension

25. Subject matter experts often perform specific project activities when necessary. Which of the following statements regarding subject matter experts is accurate? a. The number of subject matter experts is generally limited to fewer than the number of core team members. b. The subject matter experts are typically assigned to the project from start to finish. c. The subject matter experts may not relate strongly with a project due to the temporary nature of their involvement. d. The subject matter experts should only be used for staff augmentation. ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 74 OBJ: CPMT.KLOP.15.03.05 KEY: Bloom's: Comprehension

ESSAY 1. The PMI “Code of Ethics and Professional Conduct” provides guidelines for ethical behavior by project management practitioners. It describes four main values that should guide a project manager’s actions. List these four values and give one example per value of why it should guide a project manager’s actions. ANS: Key concepts to be covered in the response could include, but are not limited to: Responsibility - A project manager should create an atmosphere of integrity and trust within their team. One way to do this is to have the courage to take responsibility for your actions as a project manager, to do what you said you would do and to acknowledge any mistakes that you’ve made. Your team will see the value of taking ownership for their actions, especially if any errors or mistakes are handled in a constructive rather than punitive way. Respect - To be respected, one must act respectfully towards others. If the project manager models this behavior with their team as well as their superiors it will send a strong message that team members should treat one another with respect and cooperation. Fairness - Regardless of any friendships or personal affinities towards certain team members, the project manager should not show any bias or favoritism. All team members should be held to the same standard, and given the same opportunities for growth and achievement. This will contribute to high team morale if people are confident that their efforts will be rewarded.

Honesty - A project manager should insist that all information communicated regarding the project be truthful and accurate. They should demonstrate to the team that they have the courage to share bad news with the sponsor or other stakeholders if this is warranted. This behavior by the project manager should contribute to a culture of transparency, where it is safe to tell the truth. DIF: Challenging REF: P. 61 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.03.03 KEY: Bloom's: Application

2. How might the behaviors of a project manager be different in an agile project life cycle, versus a plan-driven or traditional project life cycle? ANS: Key concepts to be covered in the response could include, but are not limited to: Plan-driven or traditional project life cycle: After project initiation, the project manager is responsible for overseeing the creation of a detailed project plan prior to any project execution. The project scope, schedule, cost, quality and other plans are fully developed. The project plan is a formal, detailed document that is signed off by the sponsor and key stakeholders prior to project execution. During project execution the project manager monitors progress, manages resources and communicates project progress against the plan. Their role is to manage and control performance and to provide overall direction when the project is underway. Change-driven or agile project life cycle: At the beginning of an agile project the overall project scope is unknown, and the project plan is created at a very high level. Detailed planning is done only for the work to be done in the short term. The majority of the project work is performed in short iterations, or sprints, of two or four weeks. The project team agrees to deliver something of value at the end of each iteration. Each iteration has initial planning, a brief daily planning meeting, a demonstration of the value at the end of the iteration, and a retrospective meeting at the end to learn and apply the learnings to the next iteration. In an agile project, the project manager is sometimes called a scrum master to emphasize that their role is to facilitate and remove obstacles rather than command and control. The team needs to be self-directed, with high trust. Customer and stakeholder involvement is also high. DIF: Challenging REF: P. 64 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.03.05 KEY: Bloom's: Application

3. Describe the role of the steering team with respect to projects. ANS: Key concepts to be covered in the response could include, but are not limited to: The steering team is typically composed of top executives in the organization. They are responsible for: Setting overall priorities for the organization. Selecting projects and prioritizing them based on the criteria that have been established.

Selecting the sponsor for those projects that have been approved. Providing general guidance for projects in the form of formal reviews at set calendar dates or project milestones, and informal suggestions any time. Providing encouragement to the project team to demonstrate to the team that their work has value and high visibility in the organization. DIF: Challenging REF: P. 65-66 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.03.05 KEY: Bloom's: Application

Chapter 4 - Chartering Projects TRUE/FALSE 1. The project charter serves as a formal legal contract between the project team and the project sponsor. ANS: F DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 84 OBJ: CPMT.KLOP.15.04.01 KEY: Bloom's: Knowledge

2. The signing of the project charter signals the transition from the high-level project initiating stage into the more detailed project planning stage. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 84 OBJ: CPMT.KLOP.15.04.01 KEY: Bloom's: Knowledge

3. The signing of the project portfolio statement signals the transition from the high-level project initiating stage into the more detailed project planning stage. ANS: F DIF: Moderate REF: P. 84 OBJ: CPMT.KLOP.15.04.01 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension NOT: No such thing as a "project portfolio statement" 4. In contrast to the case that exists with a legal contract, the parties to a signed project charter are merely obligated to the spirit of the charter since specific details will certainly change. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 84 OBJ: CPMT.KLOP.15.04.01 KEY: Bloom's: Comprehension

5. One purpose of the project charter is to help the project team and sponsor commit to the project. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 85 OBJ: CPMT.KLOP.15.04.01 KEY: Bloom's: Comprehension

6. A charter is used to quickly screen potential projects and to eliminate the poor choices. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 85 OBJ: CPMT.KLOP.15.04.01 KEY: Bloom's: Comprehension

7. Charters used in different industries and in different companies have somewhat different elements and formats. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 85 OBJ: CPMT.KLOP.15.04.01 KEY: Bloom's: Knowledge

8. The scope overview and business case sections of the project charter provide the high-level “what and where” of the project. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 87 OBJ: CPMT.KLOP.15.04.02 KEY: Bloom's: Application

9. A well-written business case should persuade decision-makers to support the project.

ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 88 OBJ: CPMT.KLOP.15.04.01 KEY: Bloom's: Comprehension

10. The project business case provides a high-level description of what the project will accomplish and how it will be done. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 87 OBJ: CPMT.KLOP.15.04.02 KEY: Bloom's: Comprehension

11. A background statement is often added to a project charter to help stakeholders better understand the background behind the scope overview and business case. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 88 OBJ: CPMT.KLOP.15.04.02 KEY: Bloom's: Comprehension

12. A background statement is a mandatory element of the project charter that sets the stage for creation of the scope overview and business case. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 88 OBJ: CPMT.KLOP.15.04.02 KEY: Bloom's: Comprehension

13. The project master network is a summary-level schedule that identifies the major schedule milestones or significant points and events in the project. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 88 OBJ: CPMT.KLOP.15.04.02 KEY: Bloom's: Application

14. A deliverable is any unique and verifiable product, result or capability to perform a service that is required to be produced to complete a process, phase, or project. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 88 OBJ: CPMT.KLOP.15.04.02 KEY: Bloom's: Knowledge

15. A key concept in agile projects is that something of value will be delivered at each iteration. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 89 OBJ: CPMT.KLOP.15.04.02 KEY: Bloom's: Knowledge

16. Assumptions identified in the project charter include events that, if they occur, will have either a positive or a negative effect on a project’s objectives ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 89 OBJ: CPMT.KLOP.15.04.02 KEY: Bloom's: Comprehension

17. Risks, assumptions and constraints are included in the project charter so that key participants will be aware of what could prevent them from successfully completing the project. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 89 OBJ: CPMT.KLOP.15.04.02 KEY: Bloom's: Comprehension

18. At the time the project charter is prepared there is typically a very general understanding of the project, so if a budget is included it can only be a rough estimate. ANS: T

DIF: Easy

REF: P. 90

OBJ: CPMT.KLOP.15.04.02

NAT: BUSPROG.CPMT.KLOP.15.03

KEY: Bloom's: Knowledge

MULTIPLE CHOICE 1. Which of the following documents serves as an informal contract between the project team and the project sponsor? a. b. c. d.

team members’ employment contracts project charter project roadmap business case

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 84 OBJ: CPMT.KLOP.15.04.01 KEY: Bloom's: Comprehension

2. The project charter grants the project team the right to: a. begin project execution b. develop the project mission statement c. create a detailed project plan d. write a detailed business case ANS: C DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 84 OBJ: CPMT.KLOP.15.04.01 KEY: Bloom's: Application

3. The project charter serves all of the following purposes EXCEPT: a. b. c. d.

authorizes the project manager to proceed develops a common understanding between the sponsor and the project team quickly screens out obviously poor projects describes skill sets needed for the project

ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: p. 85 OBJ: CPMT.KLOP.15.04.01 KEY: Bloom's: Comprehension

4. The project charter should help the project team and the project sponsor to develop a common understanding of what the project is all about. All of the following items are elements of that common understanding EXCEPT: a. b. c. d.

understanding how the project aligns with the goals of the organization understanding the detailed project schedule understanding project success measures understanding what is included and excluded

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 85 OBJ: CPMT.KLOP.15.04.01 KEY: Bloom's: Comprehension

5. Within the project charter, the scope overview accomplishes all of the following EXCEPT: a. b. c. d.

identifies the major schedule milestones for the project describes the work that must be performed to deliver a product, service or result. distinguishes between what the project will and will not do. describes at a high level what needs to be accomplished and how it will be done.

ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 87 - 88 OBJ: CPMT.KLOP.15.04.02 KEY: Bloom's: Comprehension

6. During iteration planning in an agile project, agreement is reached regarding: a. the length of the next sprint. b. detailed stakeholder requirements. c. the definition of done. d. positive and negative risks. ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 89 OBJ: CPMT.KLOP.15.04.02 KEY: Bloom's: Comprehension

7. Which of the following charter elements defines the project purpose and justifies the necessity of the project? a. b. c. d.

scope control plan acceptance criteria business case scope overview

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 88 OBJ: CPMT.KLOP.15.04.02 KEY: Bloom's: Comprehension

8. Which of the following charter elements should inspire team members to develop a passion for the project and to work hard on it? a. b. c. d.

the project vision statement the business case the project motto the team operating principles

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 88 OBJ: CPMT.KLOP.15.04.02 KEY: Bloom's: Comprehension

9. The milestone schedule in the project charter: a. b. c. d.

is a schedule that provides detailed data for when each project activity should begin. is a detailed schedule that shows the planned duration for every activity in the project. is a summary-level schedule that identifies significant points or events in the project. is a summary-level schedule that shows how major project tasks are sequenced.

ANS: C DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 88 OBJ: CPMT.KLOP.15.04.02 KEY: Bloom's: Application

10. The addition of acceptance criteria factors to the milestones in a project charter helps the team understand who will judge the quality of the deliverable associated with each milestone, and _____: a. b. c. d.

that stakeholder’s role on the team. the risk associated with each milestone. the penalties for not achieving the desired quality. the criteria or standards they will use.

ANS: D DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 89 OBJ: CPMT.KLOP.15.04.02 KEY: Bloom's: Application

11. Project charters typically include all of the following elements EXCEPT:

a. b. c. d.

positive and negative risks project assumptions detailed resource requirements project constraints

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 89 OBJ: CPMT.KLOP.15.04.02 KEY: Bloom's: Comprehension

12. Project managers and teams should consider risks and include them in the project charter for all the following reasons EXCEPT: a. risks that may have a negative impact on project objectives should be identified and addressed. b. all project risks should be eliminated before the project charter is signed. c. risks that may have a positive impact on the project create opportunities and should be capitalized upon. d. the sponsor and core team should be aware of what could prevent them from successfully completing the project. ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 89 OBJ: CPMT.KLOP.15.04.02 KEY: Bloom's: Comprehension

13. Team operating principles are sometimes included in a project charter to enhance team performance. Which of the following statements accurately describes the value of establishing team operating principles? a. Operating principles that address the conduct of meetings and how decisions are made are especially useful in helping the team get off to a good start. b. Operating principles typically detail the specific work that each team member will perform and ensure a more complete understanding of the project. c. Operating principles identify the rules along with the punishments to be administered when the rules are broken. d. Operating principles are especially helpful for a routine project where participants have worked together before ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 90 OBJ: CPMT.KLOP.15.04.02 KEY: Bloom's: Comprehension

14. A project sponsor is wise not to sign a project charter authorizing work until the project manager and team show that they have ____: a. learned to work together well. b. gathered requirements from key stakeholders. c. reviewed lessons learned from previous projects in order to avoid similar mistakes. d. prepared a comprehensive schedule and budget. ANS: C DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 98 OBJ: CPMT.KLOP.15.04.03 KEY: Bloom's: Application

15. Which section of the project charter publicly acknowledges the commitment of the sponsor, managers and team members to the project? a. business case b. signatures and commitment c. decisions and findings d. contract section

ANS: B DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 98 OBJ: CPMT.KLOP.15.04.03 KEY: Bloom's: Comprehension

16. Which of the following statements most accurately identifies the typical contents of the project charter? a. b. c. d.

requirements, specifications, test protocols and test results statement of work, terms and conditions, clauses and delivery instructions business case, milestone schedule, resource estimates and team operating principles purpose, literature review, methodology, results and conclusions

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 88 - 90 OBJ: CPMT.KLOP.15.04.03 KEY: Bloom's: Comprehension

17. Which of the following statements accurately describes the responsibilities typically associated with the development of the project charter? a. b. c. d.

the project sponsor typically prepares the detailed first draft of the charter the project manager typically prepares the business case and scope overview the customer typically prepares and signs the charter the project manager and team typically prepare the majority of the rough draft for the project charter

ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 91 OBJ: CPMT.KLOP.15.04.03 KEY: Bloom's: Comprehension

18. On agile projects the first iteration is planned as a milestone with acceptance criteria. However, subsequent milestones and acceptance criteria are determined on a ___: a. need-to-know basis c. just in time (JIT) basis b. first in first out (FIFO) basis d. first come first served basis ANS: C DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 94 OBJ: CPMT.KLOP.15.04.03 MSC: Bloom's: Comprehension

ESSAY 1. Briefly discuss the importance of the project charter, and compare the roles played by the project sponsor and the project manager with respect to the preparation of this document. ANS: Key concepts to be covered in the response could include, but are not limited to: The project charter serves as an informal contract between the project team and the sponsor. The signing of the charter by the project sponsor serves as the transition of the project from the high level initiation stage into the more detailed planning stage. The project sponsor is often a busy executive. Although the sponsor signs the final draft of the project charter, typically the project team prepares the rough draft of this document. DIF: Moderate REF: P. 84 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.04.01 KEY: Bloom's: Application

2. In the project charter, what types of resources might be estimated and how detailed should the project budget or resource requirements be? Give some examples of how they might be expressed. ANS: Key concepts to be covered in the response could include, but are not limited to: Executives consider projects to be investments that use the organization’s resources. Resources are defined as “skilled human resources, equipment, services, supplies or funds.” During the initiation phase when the project charter is being developed there is only a high level understanding of the project. The resource needs or project budget estimates are very preliminary. In the project charter it is important to communicate how the budget or resource estimates were developed and the team’s confidence level in these estimates, for example: “this is a rough order of magnitude estimate based only upon the milestones, and the actual project cost could range from -25% to +75%.” DIF: Challenging REF: P. 90, 96 - 97 OBJ: CPMT.KLOP.15.04.03 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Application 3. What are risks, and why is it important to identify them in the project charter? ANS: Key concepts to be covered in the response could include, but are not limited to: A risks is defined as “an uncertain event or condition that , if it occurs, has a positive or negative effect on one or more project objectives.” Risks should be identified by the project manager and team for several reasons: Any negative risk that could threaten the project’s schedule, budget, stakeholder satisfaction, or other constraints and prevent its successful completion should be identified. The project manager and team should then assess each risk’s probability of occurrence and the impact to the project if realized. The team should develop formal response plans to address those major risks to the project. Any positive risk or opportunity that could benefits the project should also be identified and assessed. Plans should be developed to capitalize on major opportunities that could enhance the project’s successful completion. Finally, if it is determined that the risk to the organization will be greater if the project is not done, this could provide additional rationale for doing the project. DIF: Challenging REF: P. 89, 95 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.04.03 KEY: Bloom's: Application

Chapter 5 - Stakeholder Analysis and Communication Planning TRUE/FALSE 1. A project management plan is a formal document that defines how the project will be initiated and planned. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 118 OBJ: CPMT.KLOP.15.05.01 KEY: Bloom's: Comprehension

2. Plan Communications is the process of developing an appropriate approach and plan for project communications based on stakeholders’ information needs and requirements and available organizational assets. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 118 OBJ: CPMT.KLOP.15.05.03 KEY: Bloom's:Knowledge

3. Stakeholders include both those who will use the result of a project as well as those who will be affected by the result of a project. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P.119 OBJ: CPMT.KLOP.15.05.01 KEY: Bloom's: Knowledge

4. Stakeholders include those affected by the result of the project, but not those affected by the process of performing the project. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 119 OBJ: CPMT.KLOP.15.05.01 KEY: Bloom's: Comprehension

5. Stakeholders include people who have their routines disrupted by the project. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 119 OBJ: CPMT.KLOP.15.05.01 KEY: Bloom's: Knowledge

6. Authority and urgency are among the aspects that project managers should consider in prioritizing stakeholders. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 120 OBJ: CPMT.KLOP.15.05.01 KEY: Bloom's: Comprehension

7. Project managers should purposefully plan and carry out relationship building activities that lead to respect and trust. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 122 OBJ: CPMT.KLOP.15.05.02 MSC: Bloom's: Comprehension

8. Project relationship building activities include encouraging open communications and using shared learning. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 122, 124 OBJ: CPMT.KLOP.15.05.02 KEY: Bloom's: Comprehension

9. Establishing a positive relationship with all key stakeholders early in the project helps to create a desire among those stakeholders to support the project, and builds the communications foundation for the project. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 125 OBJ: CPMT.KLOP.15.05.02 KEY: Bloom's: Knowledge

10. The communications management plan is finalized during project planning, and should only be changed through a formal change control process. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 126 OBJ: CPMT.KLOP.15.05.03 KEY: Bloom's: Comprehension

11. Common purposes for project communications include status reporting and efforts to obtain approval of project outputs. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 128 OBJ: CPMT.KLOP.15.05.03 KEY: Bloom's: Knowledge

12. The primary output of the “Identify Stakeholders” process is the project communications plan. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 122 OBJ: CPMT.KLOP.15.05.03 KEY: Bloom's: Comprehension

13. Contemporary project communications typically include both push methods such as blogs, and pull methods such as voice mail. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 128 OBJ: CPMT.KLOP.15.05.03 KEY: Bloom's: Comprehension

14. One common feature of agile projects is the “stand-up meeting”. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 130 OBJ: CPMT.KLOP.15.05.05 KEY: Bloom's: Knowledge

15. A stakeholder engagement matrix is a tool that classifies the engagement levels of project stakeholders, including whether they are unaware, resistant, or supportive. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 125 OBJ: CPMT.KLOP.15.05.01 KEY: Bloom's: Knowledge

16. The plan-do-check-act model used to improve processes is also an effective model that project managers can use to improve project meetings. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 131 OBJ: CPMT.KLOP.15.05.05 KEY: Bloom's: Comprehension

17. In order to be sure a project meeting runs according to plan, the project manager should develop an agenda in advance and deliver it to participants as they arrive at the meeting. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 131 OBJ: CPMT.KLOP.15.05.05 KEY: Bloom's: Comprehension

18. An issue log is a document that identifies the specific issues that must be resolved before a particular project management meeting adjourns. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 132 OBJ: CPMT.KLOP.15.05.05 KEY: Bloom's: Comprehension

19. A virtual team is a group of persons with a shared goal, who fulfill their roles largely through face-to-face communications. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 135 OBJ: CPMT.KLOP.15.05.06 KEY: Bloom's: Comprehension

20. While expensive, it is often advisable for virtual team members who live across the globe to meet face-to-face at least once, especially early in the project. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 136 OBJ: CPMT.KLOP.15.05.06 KEY: Bloom's: Comprehension

21. Project team member preferences related to the type and frequency of communication may vary depending upon their country and cultural differences. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 136 OBJ: CPMT.KLOP.15.05.06 KEY: Bloom's: Comprehension

MULTIPLE CHOICE 1. Which of the following statements accurately describes a project management plan? a. a formal document that describes how the project will be initiated and planned b. a formal document that describes how the project will be executed, monitored and controlled c. a formal document that defines how the project will be terminated and closed d. a formal document that focuses on how the project’s financial results will be tracked ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 118 OBJ: CPMT.KLOP.15.05.03 KEY: Bloom's: Comprehension

2. All of the following statements accurately describe a project management plan EXCEPT: a. b. c. d.

It serves as an informal contract between the project team and the sponsor It may be a general, summary document or quite detailed. It may be composed of one or more subsidiary plans. It is developed iteratively, starting at a high level and becoming progressively more detailed as information becomes available.

ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 117 - 118 OBJ: CPMT.KLOP.15.05.03 KEY: Bloom's: Comprehension

3. A project communications management plan generally includes all of the following information EXCEPT: a. communication methods b. communication timing c. communication cost

d. communication purpose ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 128 OBJ: CPMT.KLOP.15.05.03 KEY: Bloom's: Comprehension

4. Project management plans generally include all of the following elements EXCEPT: a. b. c. d.

schedules and budgets business case and recommendations risks and quality considerations communications and stakeholders

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 118 OBJ: CPMT.KLOP.15.05.03 KEY: Bloom's: Comprehension

5. Stakeholders include all of the following people EXCEPT: a. b. c. d.

those who work on the project those who provide people or resources for the project those whose routines may be disrupted by the project those who will not be impacted by the project

ANS: D DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 119 OBJ: CPMT.KLOP.15.05.01 KEY: Bloom's: Knowledge

6. The process of “systematically gathering and analyzing quantitative and qualitative information to determine whose interests should be taken into account throughout the project” is called: a. develop project management plan b. stakeholder analysis c. communications management d. i.d. stakeholders ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 120 OBJ: CPMT.KLOP.15.05.01 KEY: Bloom's: Comprehension

7. Project stakeholders can be prioritized based on a number of factors, including one of the following: a. fame b. impact c. tenure d. personality ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 120 OBJ: CPMT.KLOP.15.05.01 KEY: Bloom's: Comprehension

8. By identifying stakeholders and their needs, project managers can be more effective in all the following ways EXCEPT: a. b. c. d.

prioritize among competing objectives. derive the final budget serve as good stewards of the organization’s resources. develop a shared sense of risk.

ANS: B DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 120 OBJ: CPMT.KLOP.15.05.01 KEY: Bloom's: Comprehension

9. Which of the following activities can be used to build relationships within the core project team?

a. b. c. d.

emphasize individual learning opportunities establish independent agendas regularly celebrate small successes use conflict resolution techniques

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 125 OBJ: CPMT.KLOP.15.05.02 KEY: Bloom's: Comprehension

10. The final item to be recorded on the project meeting minutes is an evaluation of both good and poor points from the meeting. On agile projects, this evaluation is called the ____: a. stakeholder analysis b. lessons learned c. plus-delta process d. retrospective ANS: D DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 133 OBJ: CPMT.KLOP.15.05.05 KEY: Bloom's: Comprehension

11. Which of these is not one of the primary types of information captured in a project meeting? a. action items agreed to. b. evaluation of the meeting. c. new issues raised and old issues closed. d. assumptions and constraints. ANS: D DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 132 OBJ: CPMT.KLOP.15.05.05 KEY: Bloom's: Knowledge

12. Project managers can encourage open communication by employing all of the following tactics EXCEPT: a. b. c. d.

demonstrating that the inputs from others are valued using group decision making techniques in every case keeping people informed respecting confidentiality

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 124 OBJ: CPMT.KLOP.15.05.02 KEY: Bloom's: Comprehension

13. Several factors can contribute to building relationships among project team members. Which of the following is NOT a contributor to relationship building within the core team? a. b. c. d.

Ensure team members understand what is expected of them. Foster a closed environment of secrecy. Ensure team member’s opinions are considered. Provide opportunities to grow and develop.

ANS: B DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 124 OBJ: CPMT.KLOP.15.05.02 KEY: Bloom's: Comprehension

14. A principal idea in agile is that relationships with stakeholders need to be based on collaboration, communications and ____. a. trust b. power

c. confidentiality d. urgency ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 122 OBJ: CPMT.KLOP.15.05.02 KEY: Bloom's: Comprehension

15. The sponsor, project manager and team can establish powerful relationships with key stakeholders. This starts with an understanding of what motivates each stakeholder, which can be summarized by the old saying ______: a. b. c. d.

the early bird catches the worm. what gets planned gets done. you get what you pay for. what’s in it for me?

ANS: D DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 125 OBJ: CPMT.KLOP.15.05.02 KEY: Bloom's: Knowledge

16. Communications to stakeholders are necessary for which of the following reasons? a. b. c. d.

to help them take ownership of the project and make timely decisions to keep them at arms length so progress can continue to shift the burden of risk from the project team to the stakeholders to provide input to team performance reviews

ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 126 OBJ: CPMT.KLOP.15.05.02 KEY: Bloom's: Comprehension

17. A project communications matrix includes all of the following information EXCEPT: a. b. c. d.

Who Why What When

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 129 OBJ: CPMT.KLOP.15.05.03 KEY: Bloom's: Comprehension

18. In the project communications matrix, all of the following “who” items are typically included EXCEPT: a. b. c. d.

Who does the project team need to learn from? Who does the project team need to share with? Who take the minutes at the next status meeting? Who on the project team is responsible for a communication?

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 129 OBJ: CPMT.KLOP.15.05.03 KEY: Bloom's: Comprehension

19. In order to plan for a project meeting, project managers should develop an agenda. All of the following statements accurately describe the development and use of a project meeting agenda EXCEPT: a. the agenda should only be shared with senior management b. the agenda should provide time to summarize decisions made

c. the agenda should provide time to evaluate the meeting d. the agenda should state the purpose of the meeting ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 131 OBJ: CPMT.KLOP.15.05.05 KEY: Bloom's: Comprehension

20. A point or matter in question or in dispute, not settled or over which there are opposing views or disagreements is called a(n) _____: a. b. c. d.

constraint issue risk assumption

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 132 OBJ: CPMT.KLOP.15.05.05 KEY: Bloom's: Comprehension

21. Virtual project teams often encounter increased challenges. All of the following items are among these increased challenges EXCEPT: a. b. c. d.

it is more difficult to understand the stakeholders it takes more time to build relationships differences in time zones are an advantage change control must rely more upon facilitating than directing

ANS: C DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 135 OBJ: CPMT.KLOP.15.05.06 KEY: Bloom's: Comprehension

ESSAY 1. Describe how you would use the plan-do-check-act model to plan, conduct and improve project meetings. ANS: Key concepts to be covered in the response could include, but are not limited to: The plan-do-check-act model is a process improvement model that can be applied to project meetings in the following way: Plan: Meetings should be planned and the agenda distributed well in advance so that everyone can be prepared. A project meeting agenda template could include: meeting logistics, purpose, list of topics, person responsible, and time estimates. Do & Check: The meeting is conducted and minutes are recorded. The information captured includes: decisions made, new issues surfaced, action items agreed to, and an evaluation of the meeting. An easy way to capture these evaluations is with a Plus-Delta template. Act: After the meeting every team member should complete the action items they committed to, and the project manager should follow up to resolve any problems that are preventing team members from completing their work. When all of the steps in the PDCA cycle are applied to project meetings, they are more productive and the project benefits.

DIF: Challenging REF: P. 130 - 134 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.05.05 KEY: Bloom's: Application

2. Describe the importance of project communications, and the essential factors to be considered when creating a project communications plan. ANS: Key concepts to be covered in the response could include, but are not limited to: Projects have many challenges, including the need to communicate with people from various locations, functional areas, companies and cultures. The communications plan should be used to establish and manage expectations from all stakeholders, and to ensure that project work is complete properly and on time. Purpose: The first factor that the team should consider is the purpose for each communication. Purposes might include: outgoing communications to set and manage stakeholders’ expectations, incoming information from stakeholders such as requirements or authorizations, or planning the management and escalation of issues that cannot be handled by the project manager. Structures: Existing organizational communications structures should be used if available. Following a pre-existing structure should enable stakeholders to understand the communication more easily. Methods: Projects may use a combination of “pull” ,“push” or interactive methods of communication depending on the type of communication that is appropriate. Timing: Three levels of timing should be considered in the communication plan: the project life cycle stages, the organizational structure that might include regularly scheduled meetings, and an as-needed basis for other project issues. DIF: Challenging REF: P.126 - 129 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.05.03 KEY: Bloom's: Application

3. Describe the approach you would use to build relationships among the core members of the project team. ANS: Key concepts to be covered in the response could include, but are not limited to: Understand and acknowledge personal goals and individual motives for involvement in the project. Encourage open communication by keeping people informed, valuing everyone’s input, personally sharing feelings, and respecting confidentiality. Work together to jointly establish project meeting agendas so that all team members feel their concerns are being addressed. Team members should also be encouraged to share in meaningful project learning, and share enjoyment of working on the project. The project manager should also reinforce the appropriate decision making and problem solving by the individuals that should be involved. DIF: Challenging

REF: P. 124 - 125

OBJ: CPMT.KLOP.15.05.02

NAT: BUSPROG.CPMT.KLOP.15.03

KEY: Bloom's: Comprehension

4. Describe the approach you would use to build relationships with key external stakeholders. ANS: Key concepts to be covered in the response could include, but are not limited to: Establishing strong relationships with key stakeholders early in the project ensures their interest in the project and builds a strong foundation for communications. A tool for building these relationships is a stakeholder management plan. Within this plan a stakeholder engagement matrix assists the project manager in classifying different stakeholders into categories such as unaware, resistant, or supportive. These categories can help the project manager understand what each stakeholder wants, and to develop a strategy for managing their engagement throughout the project. Developing trust and respect among the project team and all stakeholders is an effort that will continue throughout the project. DIF: Challenging REF: P. 125 - 126 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.05.02 KEY: Bloom's: Comprehension

Chapter 6 - Defining Scope and Constructing Work Breakdown Structures (WBS) TRUE/FALSE 1. Plan scope management is the process of creating a project scope statement. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 146 OBJ: CPMT.KLOP.15.06.01 KEY: Bloom's: Comprehension

2. The project scope refers to the features and functions that characterize a product, service or result. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P.146 OBJ: CPMT.KLOP.15.06.01 KEY: Bloom's: Comprehension

3. The project scope is the work that must be performed to deliver a product, service or result with the specified features and functions. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 146 OBJ: CPMT.KLOP.15.06.01 KEY: Bloom's: Comprehension

4. A thorough scope definition process will often yield multiple project deliverables including intermediate project deliverables due before the project is complete. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 149 OBJ: CPMT.KLOP.15.06.01 KEY: Bloom's: Comprehension

5. The project scope statement will frequently state what features and work elements are excluded from the project in addition to stating which are included. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 149 OBJ: CPMT.KLOP.15.06.01 KEY: Bloom's: Knowledge

6. The best project scope statements are brief, succinct and limit their focus specifically to the work to be performed. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 149 OBJ: CPMT.KLOP.15.06.01 KEY: Bloom's:Comprehension

7. The Work Breakdown Structure is normally developed by listing major deliverables and then progressively smaller ones, until the team feels that every deliverable has been identified. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 151 OBJ: CPMT.KLOP.15.06.03 KEY: Bloom's: Knowledge

8. By using a systematic process of creating a Work Breakdown Structure, project team members can ensure that they remember all deliverables that need to be created. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 151 OBJ: CPMT.KLOP.15.06.03 KEY: Bloom's: Knowledge

9. If a problem occurs during project execution, the Work Breakdown Structure can be used to understand exactly where and why the problem occurred.

ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 151 OBJ: CPMT.KLOP.15.06.03 KEY: Bloom's: Knowledge

10. A Work Breakdown Structure must be decomposed at least four levels in order to be effective. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 154 OBJ: CPMT.KLOP.15.06.03 KEY: Bloom's: Application

11. Since work packages provide the basis for future project planning activities, they should be as detailed as possible. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 154 OBJ: CPMT.KLOP.15.06.03 KEY: Bloom's: Comprehension

12. A Work Breakdown Structure (WBS) component is a term that simply refers to an entry in the WBS that can be at any level. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 155 OBJ: CPMT.KLOP.15.06.03 KEY: Bloom's: Knowledge

13. A WBS dictionary is a document that defines each of the terms used in the project scope statement. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 155 OBJ: CPMT.KLOP.15.06.03 KEY: Bloom's: Comprehension

14. In order to construct a project Work Breakdown Structure, a project team needs to enlist support from subject matter experts who understand how each portion of the work will be accomplished. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 155 OBJ: CPMT.KLOP.15.06.04 KEY: Bloom's: Knowledge

15. The most conventional approach to create a Work Breakdown Structure is to adopt a “top-down” approach, which can be used when the project work is familiar to the team. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 155 OBJ: CPMT.KLOP.15.06.04 KEY: Bloom's: Comprehension

16. Almost all projects have deliverables dealing with documentation and customer enablement in addition to the primary deliverable. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 156 OBJ: CPMT.KLOP.15.06.04 KEY: Bloom's: Knowledge

17. Baselining is defined as a technique for dividing and subdividing the project scope and project deliverables into smaller, more manageable parts. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 157 - 158 OBJ: CPMT.KLOP.15.06.03 KEY: Bloom's: Application

18. Organizing the second level of the Work Breakdown Structure by major design components facilitates rolling wave planning. ANS: F

DIF: Challenging

REF: P. 156

OBJ: CPMT.KLOP.15.06.04

NAT: BUSPROG.CPMT.KLOP.15.03

KEY: Bloom's: Application

19. It is important to assign a unique number to every component in the project Work Breakdown Structure. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 157 OBJ: CPMT.KLOP.15.06.04 KEY: Bloom's: Comprehension

20. Failure to include project management in the Work Breakdown Structure will increase the likelihood that the project will finish late or over budget. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 157 OBJ: CPMT.KLOP.15.06.04 KEY: Bloom's: Comprehension

21. Once the project is underway, each potential change to a project is normally documented by some sort of change request. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 158 OBJ: CPMT.KLOP.15.06.02 KEY: Bloom's: Comprehension

MULTIPLE CHOICE 1. The project scope planning processes include all of the following EXCEPT: a. b. c. d.

how the project scope will be defined how the requirements will be collected how the work breakdown structure will be created how the business case will be created

ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 146 OBJ: CPMT.KLOP.15.06.01 KEY: Bloom's: Comprehension

2. Define Scope is the process of developing: a. b. c. d.

a project scope management plan. a detailed description of the project and product. a project work breakdown structure. a project scope network diagram

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 148 OBJ: CPMT.KLOP.15.06.01 KEY: Bloom's: Comprehension

3. All of the following elements should be included in a project scope statement EXCEPT: a. b. c. d.

project boundaries or exclusions names of the project team members assumptions and constraints that may limit or influence project work key deliverables with acceptance criteria

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 149 - 150 OBJ: CPMT.KLOP.15.06.01 KEY: Bloom's: Comprehension

4. On agile projects, the scope definition begins with :

a. b. c. d.

brainstorming joint application development (JAD) sessions creation of the WBS user stories

ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 150 OBJ: CPMT.KLOP.15.06.01 KEY: Bloom's: Comprehension

5. It is helpful to list requirements and supporting information in a requirements traceability matrix. When requirements are complete, they should meet all of these criteria EXCEPT: a. b. c. d.

identified with the stakeholder who needs it assigned to a team member who will be the requirement owner measurable, so that the value and completion can be verified prioritized so tradeoff decisions can be made if necessary

ANS: B DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 147 - 148 OBJ: CPMT.KLOP.15.06.01 KEY: Bloom's: Comprehension

6. Which of the following items best describes a project Work Breakdown Structure (WBS)? a. b. c. d.

an organizational chart depicting who will perform project work a schedule depicting when project work will be performed a tool that the team uses to progressively divide deliverables into smaller pieces a list of activities to complete the project work packages

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 151 OBJ: CPMT.KLOP.15.06.03 KEY: Bloom's: Comprehension

7. The Work Breakdown Structure (WBS) is a framework that will be used as a basis for further planning activities including all the following EXCEPT: a. b. c. d.

developing the project schedule developing the project cost estimate identifying key stakeholders identifying project risks

ANS: C DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 151 OBJ: CPMT.KLOP.15.06.03 KEY: Bloom's: Comprehension

8. Work Breakdown Structures typically include one or more intermediate levels. Which of the following statements correctly describe the nature of these intermediate levels? a. They generally represent items that need to be created in order to create the final deliverables. b. They generally represent the raw materials required to create the final deliverables. c. They generally represent the resource assignments to create the final deliverables. d. They generally represent the sequence and timing of work packages ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 152 OBJ: CPMT.KLOP.15.06.03 KEY: Bloom's: Comprehension

9. Work Breakdown Structures can be displayed in a variety of formats including which of the following?

a. b. c. d.

a sequential process diagram an inverted pyramid an indented outline format fishbone or cause and effect diagram

ANS: C DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 153 OBJ: CPMT.KLOP.15.06.03 KEY: Bloom's: Comprehension

10. The technique for dividing and subdividing the project scope and project deliverables into smaller, more manageable parts is called: a. b. c. d.

rolling wave planning decomposition parent child relationship requirements traceability

ANS: B DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 157 OBJ: CPMT.KLOP.15.06.04 KEY: Bloom's: Application

11. The approved version of a work product that can be changed only through formal change control procedures is called a ____: a. b. c. d.

requirement. baseline. benchmark. component.

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 158 OBJ: CPMT.KLOP.15.06.03 KEY: Bloom's: Comprehension

12. Which of the following is not a format that is typically used to represent a Work Breakdown Structure? a. b. c. d.

Hierarchical Indented outline Requirements Traceability Matrix Free Format

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 152 - 153 OBJ: CPMT.KLOP.15.06.04 KEY: Bloom's: Comprehension

13. All of the following statements correctly describe a contemporary approach to create the Work Breakdown Structure (WBS) for a project EXCEPT: a. b. c. d.

Project teams may adopt a top-down approach to construct the WBS. Project teams may rely upon a WBS from a previous project as a starting point. Project teams may rely upon the project manager to create the entire WBS Project teams may jump start the effort with a brainstorming session.

ANS: C DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 155 - 156 OBJ: CPMT.KLOP.15.06.04 KEY: Bloom's: Comprehension

14. All of the following conventions are widely adopted when project teams create the second level of the project Work Breakdown Structure (WBS) EXCEPT: a. The second level may be organized by project phase.

b. The second level may be organized by major design components. c. The second level may be organized by work function. d. The second level may be organized by activities and tasks ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 156 OBJ: CPMT.KLOP.15.06.04 KEY: Bloom's: Comprehension

15. Which of the following statements is true concerning the adoption of rolling wave planning in project management? a. It is facilitated when the second level of the work breakdown structure is organized by phase or design components. b. It is initially cumbersome, often delaying a prompt and timely project start. c. It often creates a situation known as “analysis paralysis.” d. It requires detailed bottom-up estimating for every WBS component ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 156 - 157 OBJ: CPMT.KLOP.15.06.04 KEY: Bloom's: Comprehension

16. A deliverable at the lowest level of each branch of a work breakdown structure is known as: a. b. c. d.

a work element. a work package. a work unit. a control account

ANS: B DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 154 OBJ: CPMT.KLOP.15.06.04 KEY: Bloom's: Knowledge

17. Which of the following statements concerning work packages is NOT correct? a. b. c. d.

Work packages are the basis for subsequent project planning activities. Work packages are the basis for subsequent project control activities. Work packages are activity elements with detailed descriptions of tasks and dependencies Work packages are the elements at the lowest level of the WBS.

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 154 OBJ: CPMT.KLOP.15.06.04 KEY: Bloom's: Comprehension

18. For each component in the Work Breakdown Structure (WBS), the WBS dictionary includes all the following fields that will be progressively elaborated EXCEPT: a. b. c. d.

a brief description of the work names of team member(s) responsible for creating the deliverables a list of associated deliverables type of resources needed

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 155 OBJ: CPMT.KLOP.15.06.04 KEY: Bloom's: Comprehension

19. The approved set of procedures that describe how modifications to the project deliverables and documentation will be managed and controlled are collectively known by which of the following terms? a. scope statement

b. change control system c. configuration management plan d. scope management plan ANS: B DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 158 OBJ: CPMT.KLOP.15.06.02 KEY: Bloom's: Knowledge

20. A typical change request form will include which of the following content items? a. b. c. d.

a description of the change along with the impact of making the change a summary of previous changes to the project an issues log a change control process flow diagram

ANS: A DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 160 OBJ: CPMT.KLOP.15.06.02 KEY: Bloom's: Knowledge

ESSAY 1. What are some of the benefits of creating a Work Breakdown Structure (WBS)? ANS: Key concepts to be covered in the response could include, but are not limited to: By using a systematic process for creating the WBS the team can ensure that they identify all of the deliverables to be created. The WBS is a project communications tool. Those stakeholders who help to create the WBS will understand the project. The WBS can also be shown to and reviewed with stakeholders to ensure understanding. The WBS is the basis for all subsequent planning of schedule, resources, cost, quality and risk. Finally, during project execution if a problem occurs the WBS can be used to understand exactly where and why the problem occurred. DIF: Challenging REF: P. 151 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.06.03 KEY: Bloom's: Application

2. Identify and describe the three steps that the team should follow in order to define project scope and create a project scope statement. ANS: Key concepts to be covered in the response could include, but are not limited to: In defining the project scope the project team is creating their response to the requirements gathered from stakeholders. The steps for defining scope and creating a scope statement are: 1) List deliverables and acceptance criteria. These should include not only the final deliverables but also any intermediate deliverables that need to be created. The project team should also define acceptance criteria for each deliverable.

2) Establish project boundaries. These include which features and work elements are included in the project (in scope) and which are not included in the project (out of scope). this information will be helpful in managing expectations regarding the project. 3) Create a scope description. This should be a few sentences that describe the work to be accomplished in order to create the project deliverables. DIF: Challenging REF: P. 149 - 150 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.06.01 KEY: Bloom's: Application

3. Explain how scope is defined on agile projects. ANS: Key concepts to be covered in the response could include, but are not limited to: On agile projects, the scope definition starts with user stories. “Personas” represent user types who will be using the project deliverables. These user stories define scope and functionality. Acceptance tests will also be agreed upon at this time. At the beginning of an agile project the scope is defined at a high level, and a backlog of possible work is identified. The customer or project owner prioritizes the scope based on factors such as business need, value, cost and risk. The team then commits to the amount of work they can complete in the first iteration,. As the project progresses, the scope is described in more detail. DIF: Challenging REF: P. 150 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.06.01 KEY: Bloom's: Comprehension

Chapter 7 - Scheduling Activities TRUE/FALSE 1. In order for activities to be useful as schedule building blocks, they should have tangible output that can be verified. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P.172 OBJ: CPMT.KLOP.15.07.01 KEY: Bloom's: Comprehension

2. There is often terrific pressure to complete a project as quickly as possible. To confront this pressure, a project manager should quickly promise to meet the deadlines requested by the sponsor and then assemble a team to create the corresponding schedule. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 175 OBJ: CPMT.KLOP.15.07.02 KEY: Bloom's: Comprehension

3. The first process in developing a project schedule is to identify all the resources available to work on the project. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 175 OBJ: CPMT.KLOP.15.07.01 KEY: Bloom's: Comprehension

4. While the lowest level of decomposition in a Work Breakdown Structure is the work package, work packages can still be decomposed further into project activities. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 175 OBJ: CPMT.KLOP.15.07.03 KEY: Bloom's: Comprehension

5. Except in rare circumstances, project teams should not attempt to decompose work packages into project activities because work packages provide sufficient detail to develop a project schedule. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 175 OBJ: CPMT.KLOP.15.07.03 KEY: Bloom's: Comprehension

6. A successor activity follows a predecessor activity based on their logical relationship. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 178 OBJ: CPMT.KLOP.15.07.03 KEY: Bloom's: Comprehension

7. The most common type of logical dependency to determine the sequence of project activities is “finish-to-finish”. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 179 OBJ: CPMT.KLOP.15.07.03 KEY: Bloom's: Comprehension

8. A mandatory dependency in a relationship that is contractually required or inherent in the nature of the work. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 178 - 179 OBJ: CPMT.KLOP.15.07.03 KEY: Bloom's: Knowledge

9. The “start-to-start” logical relationship used in activity sequencing applies to the case in which a successor activity cannot start until a predecessor activity has started. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 181 OBJ: CPMT.KLOP.15.07.03 KEY: Bloom's: Comprehension

10. The length of time to perform an activity is often dependent upon who will do that work. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 181 OBJ: CPMT.KLOP.15.07.03 KEY: Bloom's: Knowledge

11. The critical path is the sequence of activities that represent the shortest path through the project, which determines the shortest possible duration of the project. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 184 OBJ: CPMT.KLOP.15.07.05 KEY: Bloom's: Comprehension

12. If a project manager delays the start of an activity on the critical path, then the expected completion date of the project will occur at a later date than originally planned. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 184 OBJ: CPMT.KLOP.15.07.05 KEY: Bloom's: Comprehension

13. The enumeration method of determining the critical path relies upon identification of all paths through the project network. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 189 OBJ: CPMT.KLOP.15.07.05 KEY: Bloom's: Comprehension

14. Even small delays on “near-critical” activities can change the critical path of a project. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 188 - 189 OBJ: CPMT.KLOP.15.07.05 KEY: Bloom's: Comprehension

15. When developing a project schedule, total float (or slack) refers to the amount of time a schedule activity may be delayed from its early start date without delaying the project finish date. ANS: T DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 188 OBJ: CPMT.KLOP.15.07.04 KEY: Bloom's: Comprehension

16. PERT refers to the Program Evaluation and Review Technique, which was developed in the 1950s to better understand how variability in the duration of individual activity durations impacts the entire project schedule. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 190 OBJ: CPMT.KLOP.15.07.02 KEY: Bloom's: Comprehension

17. The primary advantage of PERT is that it removes uncertainty from the estimates of activity durations, thereby increasing confidence in the reliability of a project schedule. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 190 OBJ: CPMT.KLOP.15.07.02 KEY: Bloom's: Comprehension

18. Monte Carlo simulation is a process which generates hundreds of thousands of probable performance outcomes based on probability distributions for cost and schedule on individual tasks. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 191 OBJ: CPMT.KLOP.15.07.02 KEY: Bloom's: Comprehension

19. A Gantt chart is an easy-to-understand tool that can be used to communicate a project schedule. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 192 OBJ: CPMT.KLOP.15.07.06 KEY: Bloom's: Knowledge

20. GANTT refers to the Generalized Activity Network Tracking Technique which was developed to better understand how variability in the duration of individual activities impacts the expected project duration. ANS: F DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 192 OBJ: CPMT.KLOP.15.07.06 KEY: Bloom's: Comprehension

MULTIPLE CHOICE 1. Estimating the number of work periods that will be needed to complete individual schedule activities characterizes which of the following time management processes? a. b. c. d.

Define activities Sequence activities Estimate activity duration Create WBS

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 172 OBJ: CPMT.KLOP.15.07.01 KEY: Bloom's: Comprehension

2. Creating a realistic schedule is often an iterative process because several factors can limit how fast a project can be completed. All of the following factors can limit how fast a project can be scheduled and completed EXCEPT: a. b. c. d.

logical order imposed dates resource availability quality metrics

ANS: D DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 174 OBJ: CPMT.KLOP.15.07.02 KEY: Bloom's: Knowledge

3. Faced with significant schedule challenges, the project manager has several responsibilities. All of the following are among the project manager’s responsibilities EXCEPT: a. b. c. d.

willingly accept end dates dictated by customers or sponsors persuade all stakeholders that the schedule makes sense deliver the project according to the agreed-upon schedule determine a schedule that is possible to achieve

ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 175 OBJ: CPMT.KLOP.15.07.02 KEY: Bloom's: Comprehension

4. All of the following items can provide useful assistance to a project team to define the activities of a project EXCEPT: a. b. c. d.

the work packages from the Work Breakdown Structure issue logs checklists for projects of the same type schedules from similar projects that are already completed

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 175 - 176 OBJ: CPMT.KLOP.15.07.04 KEY: Bloom's: Comprehension

5. Milestones are important points in a project schedule that can serve as check points for project managers and sponsors. All of the following reasons might justify the decision to establish a milestone EXCEPT: a. b. c. d.

completion of a major deliverable the time right before a large amount of money needs to be committed a merging point where multiple activities must be completed before progress can continue scheduling team status meetings

ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 176 OBJ: CPMT.KLOP.15.07.04 KEY: Bloom's: Comprehension

6. An activity that logically comes before a dependent activity in a schedule is called a ___: a. leader activity b. predecessor activity c. successor activity d. mandatory activity ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 178 OBJ: CPMT.KLOP.15.07.03 KEY: Bloom's: Comprehension

7. The sequencing of activities is often based upon dependencies between the activities. The dependencies that should guide activity sequencing can be either: a. b. c. d.

critical or non-critical opportunities or threats mandatory or discretionary interior or exterior

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 178 - 179 OBJ: CPMT.KLOP.15.07.03 KEY: Bloom's: Comprehension

8. Which of the following responses identifies a common type of logical dependency used to sequence project activities? a. b. c. d.

first-in; first-out last-in; last-out finish-to-start last-in; first-out

ANS: C DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 179 OBJ: CPMT.KLOP.15.07,03 KEY: Bloom's: Knowledge

9. The total number of work periods (not including holidays or other non-work periods) required to complete a schedule activity is known as: a. b. c. d.

effort elapsed time duration resource days

ANS: C DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 181 OBJ: CPMT.KLOP.15.07.03 KEY: Bloom's: Comprehension

10. All of the following strategies can help a project team to develop realistic time estimates for project activities EXCEPT: a. b. c. d.

adding a significant buffer to each activity be sure to consider learning curves, interruptions and competing priorities estimate times of completion without initial reference to a calendar verify the time estimates with the people doing the work

ANS: A DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 182 OBJ: CPMT.KLOP.15.07.02 KEY: Bloom's: Application

11. All of the following problems contribute to difficulty in estimating activity durations accurately EXCEPT: a. b. c. d.

merging - multiple predecessors omissions - leaving out key activities general uncertainty in the estimate poor vendor selection

ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 183 OBJ: CPMT.KLOP.15.07.02 KEY: Bloom's: Comprehension

12. Which of the following remedies may reduce the likelihood of omissions when developing activity duration estimates? a. b. c. d.

lessons learned resource buffers learning curve staggering project start dates

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 183 OBJ: CPMT.KLOP.15.07.02 KEY: Bloom's: Comprehension

13. Which of the following statements correctly describes the critical path? a. b. c. d.

The sequence of activities that represents the shortest path through the project network. It determines the latest possible end date of the project. It consists only of activities with zero float (slack). It consists only of activities with lag times

ANS: C DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 184 OBJ: CPMT.KLOP.15.07.05 KEY: Bloom's: Comprehension

14. The amount of time a schedule activity can be delayed without delaying the early start date of any successor is known as: a. b. c. d.

reserve free float contingency lead

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 188 OBJ: CPMT.KLOP.15.07.05 KEY: Bloom's: Comprehension

Figure 7-1 Assembly Project 15. Consider the Assembly Project depicted in Figure 7-1. Based on the information provided, what is the early start date for activity D - “Attach Modules 1 & 2”? a. b. c. d.

Day 0 Day 3 Day 4 Day 5

ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 185 OBJ: CPMT.KLOP.15.07.05 KEY: Bloom's: Application

Figure 7-2 Research Project 16. Consider the Research Project depicted in Figure 7-2. Based on the information provided, what is the late start date for activity C - “Review Reports”? a. b. c. d.

Day 0 Day 2 Day 4 Day 10

ANS: C DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 186 OBJ: CPMT.KLOP.15.07.05 KEY: Bloom's: Application

17. Consider the Research Project depicted in Figure 7-2. Based on the information provided, what is the late start date for activity A - “Plan Research”? a. b. c. d.

Day 0 Day 2 Day 4 Day 10

ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 186 OBJ: CPMT.KLOP.15.07.05 KEY: Bloom's: Comprehension

18. Consider the Research Project depicted in Figure 7-2. Based on the information provided, which activity can you delay by one day without impacting the expected completion date for the project? a. b. c. d.

Activity A Activity B Activity C Activity D

ANS: C

DIF: Challenging

REF: P. 186 - 189

OBJ: CPMT.KLOP.15.07.05

NAT: BUSPROG.CPMT.KLOP.15.03

KEY: Bloom's: Application

19. Consider the Research Project depicted in Figure 7-2. Based on the information provided, what is the slack associated with activity C - “Review Reports”? a. b. c. d.

0 days 1 day 2 days 4 days

ANS: C DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 186 - 189 OBJ: CPMT.KLOP.15.07.05 KEY: Bloom's: Application

Figure 7-3 System Integration Project 20. Consider the System Integration Project depicted in Figure 7-3. Based on the information provided, what is the expected duration of this project? a. b. c. d.

15 days 16 days 17 days 30 days

ANS: C DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 186 - 189 OBJ: CPMT.KLOP.15.07.05 KEY: Bloom's: Application

21. Consider the System Integration Project depicted in Figure 7-3. Based on the information provided, which activities constitute the critical path for this project? a. b. c. d.

A-B-E-F A-C-E-F A-D-E-F A-D-F

ANS: A DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 186 - 189 OBJ: CPMT.KLOP.15.07.05 KEY: Bloom's: Application

22. Consider the System Integration Project depicted in Figure 7-3. Based on the information provided, which activities can be delayed one day without impacting the expected project completion date? a. b. c. d.

Activity E - Install Software and Activity F - Test System Activity C - Purchase Software and Activity E - Install Software Activity C - Purchase Software and Activity D - Prepare Test Plan none of these

ANS: C DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 186 - 189 OBJ: CPMT.KLOP.15.07.05 KEY: Bloom's: Application

23. Consider the System Integration Project depicted in Figure 7-3. Based on the information provided, how many days can you delay the purchase of software (Activity C), without impacting the expected project completion date? a. b. c. d.

0 days 1 day 2 days 4 days

ANS: B DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 186 - 189 OBJ: CPMT.KLOP.15.07.05 KEY: Bloom's: Application

Figure 7-4 Lab Experiment Project 24. Consider the Lab Experiment Project depicted in Figure 7-4. Based on the information provided, what is the expected duration of this project? a. 22 days

b. 24 days c. 26 days d. 28 days ANS: B DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 186 - 189 OBJ: CPMT.KLOP.15.07.05 KEY: Bloom's: Application

25. Consider the Lab Experiment Project depicted in Figure 7-4. Based on the information provided, identify the critical path(s) for this project? a. b. c. d.

A-C-F only A-B-D-F only A-B-E-F only Both A-B-D-F and A-B-E-F are critical paths

ANS: D DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 186 - 189 OBJ: CPMT.KLOP.15.07.05 KEY: Bloom's: Application

26. Consider the Lab Experiment Project depicted in Figure 7-4. Based on the information provided, which activity can be delayed one day without impacting the expected project completion date? a. b. c. d.

Activity B - Calibrate Instruments Activity C - Review Studies Activity D - Monitor Instruments Activity E - Test Samples

ANS: B DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 186 - 189 OBJ: CPMT.KLOP.15.07.05 KEY: Bloom's: Application

27. Consider the Lab Experiment Project depicted in Figure 7-4. Based on the information provided, how many days can you delay the calibration of the instrumentation (Activity B), without impacting the expected project completion date? a. b. c. d.

0 days 1 day 2 days 4 days

ANS: A DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

Activity A B C D E F G H I

REF: P. 186 - 189 OBJ: CPMT.KLOP.15.07.05 KEY: Bloom's: Application

Predecessor(s) --A A A B, C D E E F, G, H

Duration (days) 5 20 15 5 60 15 20 15 2

Figure 7-6 Network Scheduling Data 28. Consider the network scheduling data provided in Figure 7-6. Which activities constitute the critical path for this project network? a. b. c. d.

A-D-F-I A-C-E-H-I A-B-E-H-I A-B-E-G-I

ANS: D DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 186 - 189 OBJ: CPMT.KLOP.15.07.05 KEY: Bloom's: Application

29. Consider the network scheduling data provided in Figure 7-6. What is the expected duration of this project? a. b. c. d.

97 days 102 days 107 days 112 days

ANS: C DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 186 - 189 OBJ: CPMT.KLOP.15.07.05 KEY: Bloom's: Application

30. Consider the network scheduling data presented in Figure 7-6. How many days of slack are associated with activity F? a. b. c. d.

0 15 80 107

ANS: C DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

Activity A - Review Design B - Assemble Item C - Inspect Item D - Package Item

Optimistic Time (a) 18 14 4 5

REF: P. 186 - 189 OBJ: CPMT.KLOP.15.07.05 KEY: Bloom's: Application

Most Likely Time (m) 24 21 6 10

Pessimistic Time (b) 30 28 8 12

Expected Duration 24 21 6 ?

Figure 7-5 Duration Estimates 31. Consider the activity duration estimates presented in Figure 7-5. Based on the information provided and adopting the PERT conventions to calculate expected activity durations, what is the expected duration of Activity D - “Package Item”? a. 9 days b. 9.5 days c. 10 days

d. 12 days ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 190 OBJ: CPMT.KLOP.15.07.02 KEY: Bloom's: Comprehension

32. All of the following statements correctly describe an advantage or disadvantage associated with the use of Monte Carlo Analysis EXCEPT: a. b. c. d.

The flexibility of Monte Carlo Analysis allows for more realistic estimates. Monte Carlo simulation aids in the identification of near-critical paths. Monte Carlo simulations typically require the use of special software and skills. Monte Carlo simulations do not consider risks

ANS: D DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 191 OBJ: CPMT.KLOP.15.07.03 KEY: Bloom's: Comprehension

33. Despite the insights that PERT provides, there are still practical limitations that impact its usefulness. All of the following difficulties are associated with the use of PERT EXCEPT: a. It often requires more effort to generate three estimates than one. b. It highlights uncertainty in project duration c. It does not accurately address the case when two activities both need to be accomplished before a third can begin. d. There is no assurance that three estimates are any more accurate than one ANS: B DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 191 OBJ: CPMT.KLOP.15.07.03 KEY: Bloom's: Comprehension

ESSAY 1. Many factors can impact the accuracy of activity duration estimates. Describe four of the problems associated with estimating time accurately, and the techniques you would use as a project manager to overcome them. ANS: Key concepts to be covered in the response could include, but are not limited to: Omissions: Careful attention to development and refinement of the scope statement and WBS can address the possibility of omissions. Checklists or templates from previous projects can also be used to avoid missing requirements. General uncertainty in the estimate - Use learning curve and study the rate of improvement in order to predict duration with more accuracy. An alternative is to use rolling wave planning to create a detailed plan only for the project work in the near term, with later work planned at a higher level. Common cause variation - Use the PERT technique to create three estimates for each activity: optimistic, most likely, and pessimistic. Using the PERT formula to estimate activity duration helps everyone realize how much uncertainty exists in the project schedule. Queuing - Can be addressed by staggering project start dates or using resource leveling or resource buffers. DIF: Challenging REF: P. 182 - 183 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.07.02 KEY: Bloom's: Application

2. Describe “slack” and how you can use slack to your advantage in managing a project. ANS: Key concepts to be covered in the response could include, but are not limited to: Free float or slack is the amount of time a schedule activity can be delayed without delaying the early start of any successor. It is calculated by subtracting the early start from the late start. Only those activities that are not on the critical path have slack or float during the planning stage. A project manager wants to know how much float each activity has in order to determine where to spend their time and attention. Those activities with a great deal of float can be scheduled in a flexible manner and do not cause a project manager much concern. Resources can also be “borrowed” from those activities with float to use on a critical activity, which needs to be managed closely. DIF: Challenging REF: P. 188 - 189 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.07.05 KEY: Bloom's: Application

3. Describe how you would use the members of your project team to develop and execute a project schedule. ANS: Key concepts to be covered in the response could include, but are not limited to: The project team should create a schedule management plan and then define, sequence, and estimate the duration for all project activities. They can then identify the critical path, using either the two-pass or enumeration method. The critical path is the sequence of activities that represents the longest path through the project, and represents the shortest possible project duration. The critical path determines the end date of the project. By doing a forward and backward pass through the network diagram the team will also be able to calculate the amount of float or slack that each non-critical path activity has. The schedule data can be entered into software such as MS Project and displayed as a Gantt Chart, which is a horizontal bar chart showing each activity’s early start and finish dates. DIF: Challenging REF: P. 184 - 192 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.07.05 KEY: Bloom's: Application

Chapter 8 - Resourcing Projects TRUE/FALSE 1. The process of estimating the types and quantities of material, human resources, equipment, or supplies required to perform each activity is called a “project staffing analysis.” ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 211 OBJ: CPMT.KLOP.15.08.01 MSC: Bloom's: Comprehension

2. Even when a project team does not identify individual activities, it will still need to determine how many resources are needed to complete the project ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 211 - 212 OBJ: CPMT.KLOP.15.08.01 KEY: Bloom's: Knowledge

3. The project resource allocation plan is a component of the human resource management plan that describes when and how project team members will be acquired and how long they will be needed. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 212 OBJ: CPMT.KLOP.15.08.01 KEY: Bloom's: Comprehension

4. When identifying people to work on the project, it is helpful to consider their professional disciplines, skill levels and their physical location. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 213 OBJ: CPMT.KLOP.15.08.01 KEY: Bloom's: Comprehension

5. Estimate Activity Resources focuses exclusively upon the identification of the number of human resources required to perform each scheduled activity. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 211 OBJ: CPMT.KLOP.15.08.01 KEY: Bloom's: Knowledge

6. When constructing a responsibility matrix or “RACI” chart, it is important to ensure that only one person has primary accountability for any activity. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 216 OBJ: CPMT.KLOP.15.08.02 MSC: Bloom's: Comprehension

7. When determining resource availability, project managers need only consider full-time, internal resources. ANS: F DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 213 OBJ: CPMT.KLOP.15.08.01 KEY: Bloom's: Knowledge

8. While a “RACI” chart may be very useful for assigning activities to core team members and project managers, the sheer number of subject matter experts on many projects renders the RACI chart impractical for large projects. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 216 OBJ: CPMT.KLOP.15.08.02 KEY: Bloom's: Comprehension

9. RACI (Responsible, Approve, Consult, Inform) charts go beyond a communication plan in that they identify every project activity and specify the exact involvement of each stakeholder. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 216 OBJ: CPMT.KLOP.15.08.02 KEY: Bloom's: Knowledge

10. When recruiting resources to support a project, it is helpful to bring core team members and key subject matter experts on board as early as possible, to help plan the project and develop the project culture. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 213 OBJ: CPMT.KLOP.15.08.01 KEY: Bloom's: Knowledge

11. When project managers include diverse perspectives in making decisions, they can often avoid major risks that a single perspective would not uncover. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 213 OBJ: CPMT.KLOP.15.08.01 KEY: Bloom's: Knowledge

12. One approach to identify which activities contribute to work overload for a particular resource is to compare the resource histogram to the Gantt chart schedule. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 219 OBJ: CPMT.KLOP.15.08.03 KEY: Bloom's: Comprehension

13. When resource overloads are extreme, project managers may need to consider the acquisition of additional resources, reductions in scope or extensions to the project schedule. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 220 OBJ: CPMT.KLOP.15.08.03 KEY: Bloom's: Comprehension

14. Resource leveling is a network scheduling technique that seeks to assign nearly equivalent work units to each member of the project team. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 220 OBJ: CPMT.KLOP.15.08.03 KEY: Bloom's: Comprehension

15. In order to avoid project delays, project managers confronted with resource overloads will naturally seek to exploit the slack associated with non-critical activities. ANS: T DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 220 OBJ: CPMT.KLOP.15.08.03 KEY: Bloom's: Comprehension

16. The critical chain method is a schedule method that modifies the critical path to account for limited resources. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 228 OBJ: CPMT.KLOP.15.08.05 KEY: Bloom's: Comprehension

17. Critical Chain Project Management (CCPM) attempts to keep the most highly demanded resource busy on critical chain activities. ANS: T

DIF: Moderate

REF: P. 228

OBJ: CPMT.KLOP.15.08.05

NAT: BUSPROG.CPMT.KLOP.15.03

KEY: Bloom's: Comprehension

18. If a project resource is excessively overloaded, it may be necessary to reduce the project scope. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 220 OBJ: CPMT.KLOP.15.08.03 KEY: Bloom's: Comprehension

19. Crashing is a project schedule compression technique that relies extensively on overlapping activities and a high degree of concurrency. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 222 OBJ: CPMT.KLOP.15.08.04 KEY: Bloom's: Comprehension

20. Fast Tracking is a project schedule compression technique in which activities or phases normally done in sequence are performed in parallel for at least a portion of their duration. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 222 OBJ: CPMT.KLOP.15.08.04 KEY: Bloom's: Comprehension

21. Crashing almost always accelerates the schedule while increasing project risk, whereas fast tracking almost always accelerates the schedule while increasing project cost. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 223 OBJ: CPMT.KLOP.15.08.04 KEY: Bloom's: Comprehension

MULTIPLE CHOICE 1. When estimating resource needs, project teams should consider all the following EXCEPT: a. b. c. d.

support needs such as information systems. the time required to communicate between activities. specific knowledge or skills that are required. scoring models.

ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 211-212 OBJ: CPMT.KLOP.15.08.01 KEY: Bloom's: Comprehension

2. The staffing management plan addresses all of the following except: a. b. c. d.

how to identify internal and external human resources for the project. how to create RACI charts. how to handle timing issues in building, developing, and releasing the project team. how to determine the availability of human resources for the project

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 212 OBJ: CPMT.KLOP.15.08.01 KEY: Bloom's: Comprehension

3. A common tool project teams use is a responsibility assignment matrix (RAM). Typically, this chart will depict: a. b. c. d.

the date each activity will begin. the duration of each activity. the roles key members of the team will play on each activity. organizational reporting structure

ANS: C DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 216 OBJ: CPMT.KLOP.15.08.02 KEY: Bloom's: Application

Figure 8-1 RACI Chart 4. Consider the RACI chart presented in Figure 8-1 (RACI stands for Responsible, Approve, Consult, Inform). Who is responsible for development of the specification? a. b. c. d.

the project manager the project engineer the contract officer the data manager

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 216 OBJ: CPMT.KLOP.15.08.02 KEY: Bloom's: Comprehension

5. Consider the RACI chart presented in Figure 8-1. Who is accountable for the data requirements? a. b. c. d.

the project manager the project engineer the contract officer the logistics manager

ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 216 OBJ: CPMT.KLOP.15.08.02 KEY: Bloom's: Comprehension

6. Consider the RACI chart presented in Figure 8-1. What responsibility should the contract officer assume with respect to the statement of work? a. develop b. approve c. consult

d. inform ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 216 OBJ: CPMT.KLOP.15.08.02 KEY: Bloom's: Comprehension

Figure 8-2 Software Programmer Loading Chart 7. Consider the software programmer loading chart presented in Figure 8-2. Which of the following statements most accurately describes the loading of the software programmer? a. b. c. d.

The programmer is never overloaded. The programmer is overloaded on Wednesday only. The programmer is overloaded on Thursday only. The programmer is overloaded on both Wednesday and Thursday.

ANS: D DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 218 OBJ: CPMT.KLOP.15.08.02 KEY: Bloom's: Knowledge

8. Consider the software programmer loading chart presented in Figure 8-2. What percent of available time is the software programmer assigned to work activities on Thursday? a. b. c. d.

80 percent 100 percent 150 percent 200 percent

ANS: D DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 218 OBJ: CPMT.KLOP.15.08.02 KEY: Bloom's: Knowledge

9. Project managers often confront the challenge of reducing excessive time commitments and overloads among project resources. All of the following methods represent a potentially viable strategy to reduce work overloads EXCEPT:

a. b. c. d.

Require all project resources to work overtime Split an activity into two activities and delay the second part. Reorder activities when logically feasible. Reassign certain activities to other workers.

ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 219 - 220 OBJ: CPMT.KLOP.15.08.03 KEY: Bloom's: Comprehension

Figure 8-3 Programmers Resource Histogram 10. Consider the programmers resource histogram presented in Figure 8-3. How many programmers are required during the fifth week of this project? a. b. c. d.

2 programmers 4 programmers 6 programmers 7 programmers

ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 218 - 219 OBJ: CPMT.KLOP.15.08.02 KEY: Bloom's: Comprehension

11. Consider the programmers resource histogram presented in Figure 8-3. If only six programmers are available to support this project, which of the following conclusions is valid? a. b. c. d.

The current schedule is feasible. The demand for programmers during weeks five and six exceeds the number available. The demand for programmers during weeks six through ten exceeds the number available. There is an excess capacity of programmers throughout the duration of this project.

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 218 - 219 OBJ: CPMT.KLOP.15.08.02 KEY: Bloom's: Comprehension

12. Consider the programmers resource histogram presented in Figure 8-3. Which activity is an ideal candidate to delay in order to achieve a feasible schedule? a. b. c. d.

Activity A - Define Requirements Activity B - Design Application Activity C - Draft User Manual Activity F - Correct Defects

ANS: C DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 220 - 221 OBJ: CPMT.KLOP.15.08.03 MSC: Bloom's: Application

13. Critical Chain method was developed to address several problems that are common in organizations that use traditional project scheduling. Which of the following describes a common problem addressed by the critical chain method? a. Many team members render overly optimistic estimates of the time it will take them to complete project activities. b. Many team members work solely on a single task until it is complete - impeding work on other related activities. c. Many team members tend to use all of the time available for an activity rather than completing it early. d. Many team members work best when multi-tasking ANS: C DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 227 OBJ: CPMT.KLOP.15.08.05 KEY: Bloom's: Application

14. The components (principles) of Critical Chain Project Management include which of the following? a. b. c. d.

Estimate activity durations generously Avoid multi-tasking. Adhere strictly to completion deadlines - rather than finishing early or late. Add a comfortable buffer to every activity

ANS: B DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 228 OBJ: CPMT.KLOP.15.08.05 KEY: Bloom's: Application

15. Project managers must often face the challenge of compressing the project schedule. All of the following actions can be taken to reduce the duration of the critical path EXCEPT: a. Reduce the project scope and /or quality. b. Overlap sequential activities using finish-to-finish, start-to-start, or start-to-finish relationships. c. Use the float in critical path activities d. Partially overlap sequential activities by using time leads. ANS: C DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 222 OBJ: CPMT.KLOP.15.08.04 KEY: Bloom's: Application

Figure 8-4 Project Crashing Information 16. Consider the project crashing information presented in Figure 8-4. What is the cost to complete this project in the normal time? a. b. c. d.

$ 40 $ 120 $ 145 $ 405

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 226 OBJ: CPMT.KLOP.15.08.05 KEY: Bloom's: Application

17. Consider the project crashing information presented in Figure 8-4. What is the normal (un-crashed) duration of this project? a. b. c. d.

6 days 7 days 8 days 9 days

ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 226 OBJ: CPMT.KLOP.15.08.05 KEY: Bloom's: Comprehension

18. Consider the project crashing information presented in Figure 8-4. Which activity should you crash to reduce this project by one day with the least incremental cost? a. b. c. d.

Activity A Activity C Activity E Activity F

ANS: C

DIF: Challenging

REF: P. 223 - 226

OBJ: CPMT.KLOP.15.08.05

NAT: BUSPROG.CPMT.KLOP.15.03

KEY: Bloom's: Application

19. Consider the project crashing information presented in Figure 8-4. What is the incremental cost to achieve a one-day reduction in the duration of this project in the most cost efficient manner? a. b. c. d.

$ 30 $ 35 $ 40 $ 60

ANS: B DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 223 - 226 OBJ: CPMT.KLOP.15.08.05 KEY: Bloom's: Application

20. Consider the project crashing information presented in Figure 8-4. What is the total cost to complete this project in 7 days if crashed in the most cost efficient manner? a. b. c. d.

$ 180 $ 220 $ 240 $ 270

ANS: B DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 223 - 226 OBJ: CPMT.KLOP.15.08.05 KEY: Bloom's: Application

ESSAY 1. What methods could a project manager use to resolve resource overloads? ANS: Key concepts to be covered in the response could include, but are not limited to: A project manager could use a variety of methods to ensure that workers are not too overloaded. Some of these methods include: Assign certain activities to other workers. Split an activity into two activities, with the first part performed as scheduled and the last part delayed. Question the logic that was used when creating the schedule, and reorder the activities. Acquire or borrow additional resources. Inform the sponsor if there is a severe overload. DIF: Challenging REF: P. 219 - 220 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.08.05 KEY: Bloom's: Application

2. Describe how crashing and fast tracking can be used to compress a project schedule. What limitations could there be with each of these methods? ANS: Key concepts to be covered in the response could include, but are not limited to:

Crashing: When crashing a project schedule, certain activities are performed at a faster-than-normal pace. This could require additional expenses such as overtime pay, more expensive machinery, etc. Crashing almost always costs more money in order to speed up the schedule. Fast Tracking: In fast tracking, activities that are normally performed in a series (one after another) are performed at the same time. This speeds things up but can add risk. DIF: Challenging REF: P. 223, 226 - 227 OBJ: CPMT.KLOP.15.08.04 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Application 3. What should a project manager’s considerations be when resourcing projects? ANS: Key concepts to be covered in the response could include, but are not limited to: A project manager should be prepared to help key team members develop the necessary skills, if they do not have the requisite skills for the project. Project managers need to understand the tradeoffs between various project constraints - human resources versus other costs versus scope. Project managers need to be aware of resource limitations, to avoid over promising. Finally, project managers should be aware that people are a large portion of project cost, especially when the project requires special knowledge. DIF: Challenging REF: P. 210 - 211 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.08.01 KEY: Bloom's: Application

4. What is a responsibility assignment matrix (RAM)? Describe how you might use a responsibility assignment matrix to manage the resources assigned to your project. ANS: Key concepts to be covered in the response could include, but are not limited to: A responsibility assignment matrix (RAM) is a grid that shows the project resources assigned to each work package. A RACI is a type of RAM that shows responsible, accountable, consult, and inform to define the involvement of stakeholders in the project activities. RACI charts are useful for assigning activities to project team members, SMEs and the project manager. They go further than the original communications plan because they identify every project activity and specify the exact involvement of each project stakeholder. DIF: Challenging REF: P. 215 - 216 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.08.02 KEY: Bloom's: Application

Chapter 9 - Budgeting Projects TRUE/FALSE 1. The component of the project management plan that describes how costs will be planned, structured and controlled is called the project financial plan. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 246 OBJ: CPMT.KLOP.15.09.01 KEY: Bloom's: Comprehension

2. Plan cost management is the process that establishes the policies, procedures and documentation for planning, managing, expending, and controlling project costs. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 246 OBJ: CPMT.KLOP.15.09.01 KEY: Bloom's: Knowledge

3. On small projects, the cost management plan may simply address the accuracy of estimating, the source of funding and cost reporting procedures. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 246 OBJ: CPMT.KLOP.15.09.01 KEY: Bloom's: Comprehension

4. Estimate cost is the process of developing an approximation of the monetary resources needed to complete project activities. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 246 OBJ: CPMT.KLOP.15.09.01 KEY: Bloom's: Knowledge

5. Cost estimating is linked very closely with scope, schedule and resource planning. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 246 OBJ: CPMT.KLOP.15.09.01 KEY: Bloom's: Knowledge

6. Project managers should not lie to themselves or others regarding project costs. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 247 OBJ: CPMT.KLOP.15.09.03 KEY: Bloom's: Knowledge

7. Fixed costs remain the same regardless of the size or volume of work, while variable costs vary directly with volume of use. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 247 OBJ: CPMT.KLOP.15.09.01 KEY: Bloom's: Comprehension

8. Decisions related to fixed and variable costs are very sensitive to changes in volume related factors and project scope. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 248 OBJ: CPMT.KLOP.15.09.01 KEY: Bloom's: Comprehension

9. Direct costs typically include the cost of direct labor as well as other direct costs for items such as material, travel, subcontracts and computer time.

ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 248 OBJ: CPMT.KLOP.15.09.01 KEY: Bloom's: Knowledge

10. Recurring costs tend to occur during project planning and closing while nonrecurring costs tend to occur during project execution. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 248 OBJ: CPMT.KLOP.15.09.01 KEY: Bloom's: Comprehension

11. Typically, expedited costs are preferred over regular costs. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 248 OBJ: CPMT.KLOP.15.09.01 KEY: Bloom's: Comprehension

12. Regardless of what method is used to estimate project costs, supporting detail should be provided. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 253 OBJ: CPMT.KLOP.15.09.02 KEY: Bloom's: Knowledge

13. A contingency reserve is an amount of the project budget withheld for management control purposes, for unforeseen work that is within the scope. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 249 OBJ: CPMT.KLOP.15.09.03 KEY: Bloom's: Comprehension

14. Early in a project when very little detail is known about a project, it is impractical to render even a rough estimate of the final project cost. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 250 OBJ: CPMT.KLOP.15.09.01 KEY: Bloom's: Comprehension

15. Analogous estimating is the most detailed, time consuming and accurate way to estimate. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 252 OBJ: CPMT.KLOP.15.09.02 KEY: Bloom's: Comprehension

16. Most projects will employ bottom-up estimating at some point to serve as a basis for estimating cash flow needs and for controlling the project. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 253 OBJ: CPMT.KLOP.15.09.02 KEY: Bloom's: Knowledge

17. Generally, parametric estimating requires less information and time than analogous estimating. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 252 OBJ: CPMT.KLOP.15.09.02 KEY: Bloom's: Comprehension

18. Special cause variation arises when something out of the ordinary occurs. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 254 OBJ: CPMT.KLOP.15.09.03 TOP: Bloom's: Knowledge

19. Inflating the value of future revenue and cost streams to account for the time value of money enables better project decisions. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 256 OBJ: CPMT.KLOP.15.09.03 KEY: Bloom's: Comprehension

20. Both normal and special cause variation add to project cost and need to be considered by project managers. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 254 - 255 OBJ: CPMT.KLOP.15.09.03 KEY: Bloom's: Knowledge

21. Vendor bid analysis is used to determine whether the price being asked by the vendors appears to be reasonable. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 255 OBJ: CPMT.KLOP.15.09.03 KEY: Bloom's: Knowledge

22. In addition to optimizing project life cycle costs, value engineering can also be used to improve quality or expand market share. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 255 OBJ: CPMT.KLOP.15.09.03 KEY: Bloom's: Comprehension

23. A project manager needs to ensure that the cumulative amount of cash coming into the project either from internal budgeting or from customer payments meets or exceeds the demands for paying cash out. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 259 OBJ: CPMT.KLOP.15.09.04 KEY: Bloom's: Knowledge

MULTIPLE CHOICE 1. All of the following are among the benefits realized as a consequence of developing a cost management plan EXCEPT: a. It shows how to develop and share relevant, accurate and timely information that stakeholders can use to make intelligent and ethical decisions. b. It documents how the business case should be created c. It helps stakeholders to focus on schedule and performance as well as cost. d. It provides feedback that shows how the project’s success is related to business objectives. ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 246 OBJ: CPMT.KLOP.15.09.01 KEY: Bloom's: Comprehension

2. The process of developing an approximation of the cost of the monetary resources needed to complete project activities is known as: a. b. c. d.

capital budgeting. estimate resources. estimate cost. activity resourcing.

ANS: C

DIF: Moderate

REF: P. 246

OBJ: CPMT.KLOP.15.09.01

NAT: BUSPROG.CPMT.KLOP.15.03

KEY: Bloom's: Comprehension

3. Projects often include indirect costs that are not associated directly with one specific project. Which of the following items are most typically considered to be indirect costs? a. b. c. d.

costs associated with material and purchased parts the cost of labor provided by project team members, consultants and subcontractors executive salaries, utilities and insurance travel cost for the project team

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 248 OBJ: CPMT.KLOP.15.09.01 KEY: Bloom's: Comprehension

4. Costs that repeat as project work continues such as writing code are appropriately classified as: a. b. c. d.

fixed costs. indirect costs. nonrecurring costs. recurring costs

ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 248 OBJ: CPMT.KLOP.15.09.01 KEY: Bloom's: Comprehension

5. What type of cost is incurred when a project must be conducted faster than normal, and overtime for workers and / or extra charges for rapid delivery from suppliers are necessary? a. b. c. d.

marginal costs expedited costs nonrecurring costs variable costs.

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 248 OBJ: CPMT.KLOP.15.09.01 KEY: Bloom's: Comprehension

6. Which of the following terms best describes a provision in the project management plan to mitigate cost and / or schedule risk? a. reserve b. insurance c. padding d. discretionary fund ANS: A DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 249 OBJ: CPMT.KLOP.15.09.01 KEY: Bloom's: Knowledge

7. Complex projects such as research and development for new products often employ rolling wave planning to estimate costs. Which of the following best describes “rolling wave” planning? a. Project managers render a definitive estimate for the first stage and an order of magnitude estimate for the remainder of the project. b. Project managers render an order of magnitude estimate for the first stage and a definitive estimate for the remainder of the project. c. Project managers render definitive estimates for all stages of the project during initiation. d. Project managers render an order of magnitude estimate for all stages of the project. ANS: A

DIF: Challenging

REF: P. 251

OBJ: CPMT.KLOP.15.09.02

NAT: BUSPROG.CPMT.KLOP.15.03

KEY: Bloom's: Comprehension

8. Which estimating technique uses historical data from a similar project as a starting point for creating a time or cost estimate? a. analogous estimating b. parametric estimating c. bottom-up estimating d. Monte Carlo estimating ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 252 OBJ: CPMT.KLOP.15.09.02 KEY: Bloom's: Comprehension

9. All of the following factors must be in place in order to develop an analogous estimate effectively EXCEPT: a. b. c. d.

An organization must know details behind the time value of money. An organization must know how the proposed project differs from the previous project. An organization must have experience in performing similar projects. An organization must know how much previous projects actually cost.

ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 252 OBJ: CPMT.KLOP.15.09.02 KEY: Bloom's: Comprehension

10. Which estimating technique uses an algorithm to calculate cost or duration based on historical data and other project parameters? a. b. c. d.

empirical estimating parametric estimating grass roots estimating analogous estimating

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 252 OBJ: CPMT.KLOP.15.09.02 KEY: Bloom's: Comprehension

11. Which estimating technique decomposes the work into detailed pieces for which estimates are prepared and then aggregated into a total quantity for the project? a. b. c. d.

piece meal pricing decomposition estimating bottom-up estimating grass roots estimating

ANS: C DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 252 OBJ: CPMT.KLOP.15.09.02 KEY: Bloom's: Knowledge

12. The documentation of a project cost estimate generally requires substantial supporting detail to include all of these EXCEPT: a. b. c. d.

a description of scope. management reserve needs the estimating methods and a range of possible outcomes. assumptions and constraints.

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 253 OBJ: CPMT.KLOP.15.09.03 KEY: Bloom's: Comprehension

13. There are many causes of variation in project costs. Which of the following accurately describes the nature of this variation? a. Variation is generally greater on projects that use well-known technology and an experienced project team. b. Variation occurs in all work processes and the novelty associated with most projects creates many opportunities for variation. c. Special cause variation comes from many small causes that are inherent in a work process. d. Special cause variation is when something ordinary occurs ANS: B DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 254 OBJ: CPMT.KLOP.15.09.03 KEY: Bloom's: Comprehension

14. All of the following items describe an aspect of life cycle costing EXCEPT: a. b. c. d.

Life cycle cost includes the cost of creating the project and using the result. Many project selection decisions are made based upon life cycle cost. Life cycle cost only includes the project cost from initiating through closing Project managers may need to consider product disposition costs to calculate total life cycle cost.

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 256 OBJ: CPMT.KLOP.15.09.03 KEY: Bloom's: Comprehension

15. Activity based costing allocates indirect costs to fixed costs based on different types of cost drivers. Which of the following is one of the cost drivers that serve as a basis of cost allocation? a. b. c. d.

number of units produced number of labor hours quantity of materials used direct equipment costs

ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 256 OBJ: CPMT.KLOP.15.09.03 KEY: Bloom's: Comprehension

16. The approved time-phased project budget, excluding any management reserves, which can be changed only through formal change control procedures and is used as a basis of comparing actual results, is called a ____: a. measurement baseline. b. cost baseline. c. cost benchmark d. control account ANS: B DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

Work Package 1.2.1 1.2.2 1.2.3 Monthly Budget

Budget 10,000 20,000 16,000

REF: P. 257 OBJ: CPMT.KLOP.15.09.04 KEY: Bloom's: Comprehension

Time-phased Budget FEB MAR 10,000 8,000 12,000 8,000 18,000 20,000

APR

8,000

Cumulative Budget

18,000

38,000

Figure 9-1 Time-phased budget 17. Consider the time-phased budget presented in Figure 9-1. What is the cumulative project budget through the end of April? a. b. c. d.

$ 8.000 $20,000 $38,000 $46,000

ANS: D DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 257 OBJ: CPMT.KLOP.15.09.05 KEY: Bloom's: Application

18. Events discovered during Identify Risks that may or may not occur are often categorized as: a. b. c. d.

known knowns known unknowns unknown unknowns known certainties

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 258 OBJ: CPMT.KLOP.15.09.04 KEY: Bloom's: Comprehension

19. “Unknown unknowns” are unexpected events which can occur when the project is underway. All of the following accurately describe an implication associated with unknown unknowns EXCEPT: a. b. c. d.

They are usually discovered during risk identification They need to be covered in the project budget. They usually require the use of management reserve. They usually cause an increase in cost and / or schedule.

ANS: A DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 258 OBJ: CPMT.KLOP.15.09.04 KEY: Bloom's: Comprehension

20. A milestone is a typical measuring point used when establishing cost control. Which of the following DOES NOT accurately describes the use of cost control milestones? a. Project managers can use their cash flow projections to determine the funding needed to reach each milestone. b. Project managers and sponsors often decide the number of milestones jointly. c. Milestones are often identified in the project charter. d. Milestones are developed during risk planning. ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 259 OBJ: CPMT.KLOP.15.09.04 KEY: Bloom's: Comprehension

ESSAY 1. Discuss how the accuracy of cost estimates becomes more precise during a project. ANS: Key concepts to be covered in the response could include, but are not limited to:

During project initiation, while the project charter is being created, very little detail is understood about the project, so the estimates are only approximate. During the chartering process estimates are typically “rough order of magnitude” estimates that might also be described as ball park or conceptual estimates, which could underestimate the project costs by as much as -40% to +100%. As the project scope becomes well defined in the Work Breakdown Structure, schedules are planned, and specific resources are assigned, the project can be estimated with more precision, and the resulting budget estimate could have an accuracy level of -30% to + 50% Finally, at the end of project planning, after risk, quality, and other plans have been created, the project manager and team should be able to develop a definitive estimate, which has a range of no more than plus or minus 10% to 15%, or even less depending on the organization. The final project budget will be used to determine cash flow needs and will be used as the basis for controlling the project once it is in flight. DIF: Challenging REF: P. 250 - 251 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.09.04 KEY: Bloom's: Application

2. Describe analogous, parametric and bottom-up estimating, and briefly discuss the advantages and disadvantages of each method. ANS: Key concepts to be covered in the response could include, but are not limited to: Analogous estimating is a technique for estimating the duration or cost of an activity or a project using historical data from a similar project. In order for analogous estimates to be effective, the organization needs to have experience in performing similar project, and know how much each of those projects actually cost. Also, the estimator needs to understand how the current project differs from the previous project. finally, the estimator needs to have experience with the methods that will be used to perform the project. Parametric estimating is a technique that uses an algorithm to calculate cost or duration based on historical data and project parameters. More detailed information regarding the project is required in order to complete a parametric cost estimate. Bottom - up estimating is a method of estimating project duration or cost by aggregating the estimates of the lower-level components of the WBS. For this estimating method the WBS must be broken down to the most detailed level, and the specifications need to be very clear. Bottom - up estimating is the most accurate way to estimate, but it is also the most detailed and time-consuming. Every cost item must be included. DIF: Challenging REF: P. 252 - 253 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.09.03 KEY: Bloom's: Comprehension

3. Describe several sources of uncertainty in estimating the cost of a project as well as strategies you can employ to address uncertainty. ANS:

Key concepts to be covered in the response could include, but are not limited to: Variations in project costs can be explained by uncertain events, classified as known knowns, known unknowns, or unknown unknowns. Known knowns are events discovered during planning and can be estimated directly. Known unknowns are events discovered during risk identification that may or may not occur. Contingency reserves should be included in the project budget to provide sufficient funds to cover these identified risks should they occur when the project is in flight. Unknown unknowns are totally unexpected events that may occur during the project, that will impact the cost and schedule. These events cannot be anticipated beforehand for poorly understood or unusual projects. For projects with a high level of uncertainty, a management reserve may be added on top of the contingency reserve to address any unknown unknowns. DIF: Challenging REF: P. 258 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.09.03 KEY: Bloom's: Application

Chapter 10 - Project Risk Planning TRUE/FALSE 1. It is impossible to remove all sources of risk on a project. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 271 OBJ: CPMT.KLOP.15.10.01 MSC: Bloom's: Knowledge

2. A risk is anything that may impact the project team’s ability to achieve the general project success measures and the specific project stakeholder priorities. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 271 OBJ: CPMT.KLOP.15.10.01 KEY: Bloom's: Knowledge

3. When the impact of an event is negative, it is considered a risk; when the impact is positive, the event is considered an opportunity. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 271 OBJ: CPMT.KLOP.15.10.01 KEY: Bloom's: Comprehension

4. The process of deciding how to approach, plan and execute risk management activities for a project is known as Project Risk Absorption Methodology (PRAM). ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 271 OBJ: CPMT.KLOP.15.10.01 KEY: Bloom's: Comprehension

5. The risk management plan is a component of the project management plan that describes how risk management activities will be structured and performed on a project. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 271 OBJ: CPMT.KLOP.15.10.01 KEY: Bloom's: Comprehension

6. A risk management plan should define who has responsibility for causing each risk and hold the responsible party directly accountable for developing an appropriate solution. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 272 OBJ: CPMT.KLOP.15.10.01 KEY: Bloom's: Comprehension

7. The cost per risk for risks discovered early in the project is often more than the cost per risk for risks discovered late because there is more opportunity for the risk to impact several dimensions of the project. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 272 - 273 OBJ: CPMT.KLOP.15.10.01 KEY: Bloom's: Comprehension

8. The primary output of risk identification is the Risk Identification Matrix (RIM). ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 276 OBJ: CPMT.KLOP.15.10.02 KEY: Bloom's: Comprehension

9. The risk register is a living document and new risks can be added as they are discovered.

ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 276 OBJ: CPMT.KLOP.15.10.02 KEY: Bloom's: Knowledge

10. When complete, the risk register presents the results of both qualitative and quantitative risk analysis as well as risk response planning. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 276, 284 OBJ: CPMT.KLOP.15.10.02 KEY: Bloom's: Comprehension

11. In agile projects, early risk planning is done at a detail level. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 270 OBJ: CPMT.KLOP.15.10.01 KEY: Bloom's: Comprehension

12. Perform Quantitative Risk Analysis is the process of prioritizing risks for subsequent further analysis or action by assessing and combining their probability and impact. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 277 OBJ: CPMT.KLOP.15.10.03 KEY: Bloom's: Comprehension

13. The primary questions project teams use in qualitative risk analysis are “how likely is this risk to happen?”, and “if it does happen, how big will the impact be?” ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 277 OBJ: CPMT.KLOP.15.10.03 KEY: Bloom's: Comprehension

14. Perform Quantitative Risk Analysis is the process of numerically analyzing the effect of identified risks on overall project objectives. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 280 OBJ: CPMT.KLOP.15.10.03 KEY: Bloom's: Knowledge

15. Once risks have been identified and analyzed, the project team decides how they will handle each risk. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 281 OBJ: CPMT.KLOP.15.10.04 KEY: Bloom's: Knowledge

16. Plan Risk Responses is the process of developing options to enhance opportunities and reduce threats for every risk that has been identified. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 281 OBJ: CPMT.KLOP.15.10.04 KEY: Bloom's: Comprehension

17. In some cases, project teams will elect to reduce a threat to a level that a sponsor and other stakeholders deem acceptable, rather than eliminate it completely. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 281 OBJ: CPMT.KLOP.15.10.05 KEY: Bloom's: Comprehension

18. Risk response strategies such as acceptance and conducting further research apply to both threats and opportunities. ANS: T

DIF: Moderate

REF: P. 282

OBJ: CPMT.KLOP.15.10.05

NAT: BUSPROG.CPMT.KLOP.15.03

KEY: Bloom's: Comprehension

19. Risk response strategy decisions should reflect a thorough understanding of the priorities that key stakeholders have for cost, schedule, scope, and quality. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 282 OBJ: CPMT.KLOP.15.10.05 KEY: Bloom's: Comprehension

20. Sometimes the risks posed by a project are so great that an appropriate risk response is to not perform the project at all. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 282 OBJ: CPMT.KLOP.15.10.05 KEY: Bloom's: Comprehension

21. Risk response strategies such as mitigation and exploitation apply to both threats and opportunities. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 282 OBJ: CPMT.KLOP.15.10.05 MSC: Bloom's: Comprehension

MULTIPLE CHOICE 1. All of the following are benefits that can be attributed to the effective use of a risk management plan EXCEPT: a. b. c. d.

It enables project managers to eliminate or reduce the impact of some threats. It enables the project manager to identify and eliminate all risks It facilitates communication with various project stakeholders. It enables project managers to capitalize on some opportunities.

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 271 OBJ: CPMT.KLOP.15.10.01 KEY: Bloom's: Comprehension

2. Risk is often considered in terms of impact to project success. Which of the following is NOT a valid measure of project success? a. b. c. d.

meeting specifications customer related measures such as customer satisfaction achieving efficiencies in ongoing operations measures related to the firm’s objectives including market share or new products

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 270 OBJ: CPMT.KLOP.15.10.01 KEY: Bloom's: Comprehension

3. Which of the following accurately describes risk in project management? a. b. c. d.

A risk may impact the project in a positive or negative way. Some projects have no risks. Risk assessment should remain objective and uninfluenced by stakeholder priorities. Project managers should always be risk averse

ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 271 OBJ: CPMT.KLOP.15.10.01 KEY: Bloom's: Comprehension

4. On agile projects, detailed risk management activities may occur during all of the following times EXCEPT: a. b. c. d.

While planning each subsequent iteration. During early risk planning at the start of the project. In daily stand-up meetings. During retrospectives at the end of each iteration.

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 270 OBJ: CPMT.KLOP.15.10.02 KEY: Bloom's: Comprehension

5. All of the following criteria can be used to categorize project risks EXCEPT: a. b. c. d.

whether the risk is a known known the project objective that may be impacted by the risk whether the risk is internal or external to the performing organization the project life cycle phase

ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 272 - 273 OBJ: CPMT.KLOP.15.10.02 KEY: Bloom's: Comprehension

6. All of the following methods have proven to be useful techniques to help project teams identify the risks that might impact the project EXCEPT: a. b. c. d.

reviewing project documents documenting lessons learned interviewing stakeholders brainstorming among team members and subject matter experts

ANS: B DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 275 - 276 OBJ: CPMT.KLOP.15.10.02 KEY: Bloom's: Comprehension

7. Project managers can identify risks by learning and understanding the cause and effect relationships that bear on risk events. All of the following approaches rely upon an understanding of cause and effect relationships to identify risks EXCEPT: a. develop a flow chart that shows how people, materials or data flow from one person or location to another b. conduct a root cause analysis c. understand trigger conditions that indicate a risk is about to occur d. list all risks in a risk register ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 276 OBJ: CPMT.KLOP.15.10.02 KEY: Bloom's: Comprehension

8. Project teams can often identify risks by conducting any of several types of reviews. Which of the following illustrates a valuable type of risk review? a. review the project schedule to determine if certain people are overloaded b. review previous projects to verify that each current assumption is correct c. review the communication plan to determine where poor communications could cause a problem d. review sunk costs to determine project continuance ANS: C

DIF: Challenging

REF: P. 276

OBJ: CPMT.KLOP.15.10.02

NAT: BUSPROG.CPMT.KLOP.15.03

KEY: Bloom's: Comprehension

9. Which of the following describes the activities appropriately performed by the project team during Perform Qualitative Risk Analysis? a. Team members assess the probability of occurrence and severity of impact for identified risks. b. Team members develop contingency plans for all risks to avoid adverse impacts to project objectives. c. Team members identify potential risk events. d. Team members define how to conduct risk management activities for the project. ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 277 OBJ: CPMT.KLOP.15.10.03 KEY: Bloom's: Comprehension

10. Which of the following describes the appropriate use of a cause-and-effect diagram to support project risk analysis? a. The project team begins by identifying strengths, weaknesses, opportunities and threats. b. Assumptions and constraints are organized in a fishbone pattern. c. Although effects are more visible, it is often easier to alter the effect by changing the underlying cause. d. Team members are encouraged to keep asking “when?” to break down risks into more detailed causes. ANS: C DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 280 OBJ: CPMT.KLOP.15.10.03 KEY: Bloom's: Comprehension

11. All of the following describe the appropriate application of Perform Quantitative Risk Analysis in project management EXCEPT: a. Large, complex and expensive projects stand to benefit from the additional rigor of quantitative risk analysis techniques. b. Quantitative techniques are used when it is critical to predict the probability of completing a project on time or within budget with confidence. c. Brainstorming techniques are used by the team and other stakeholders to identify as many project risks as possible. d. Decision Tree Analysis and Simulation techniques such as Monte Carlo Analysis are examples of useful quantitative risk analysis techniques. ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

ID A B C D

REF: P. 280 - 281 OBJ: CPMT.KLOP.15.10.03 KEY: Bloom's: Comprehension

Risk Event Project requires new technology and support structure Web infrastructure lacks sufficient transaction capacity IS resources are spread too thin The intranet site suffers a security breach

Likelihood Medium Medium High Low

Severity Low High High High

Figure 10-1 Excerpt from Internet Project Risk Register 12. Consider the excerpt of the Internet Project risk register presented in Figure 10-1. Which of the following risk events should receive the highest priority for the development of risk responses?

a. b. c. d.

A - project requires new technology and support structure B - web infrastructure lacks sufficient transaction capacity C - IS resources are spread too thin D - The intranet site suffers a security breach

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 277 - 279 OBJ: CPMT.KLOP.15.10.03 KEY: Bloom's: Application

13. Which of the following quantitative risk analysis techniques is used to determine which risks have the most powerful impact on the project, with results displayed in the form of a tornado diagram? a. b. c. d.

Failure Mode and Effects Analysis (FMEA) Expected Monetary Value Sensitivity Analysis Simulation Techniques such as Monte Carlo Analysis

ANS: C DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 281 OBJ: CPMT.KLOP.15.10.03 KEY: Bloom's: Knowledge

14. All of these describe contemporary methods of risk prioritization in project management EXCEPT: a. Risk prioritization is generally based on the probability of occurrence and severity of impact of each identified risk. b. Some organizations place a higher priority on risks that are likely to happen soon. c. Some organizations call attention to the risks that are difficult to detect. d. Results of quantitative risk analysis are used for clarification purposes and are typically not documented in the risk register. ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 281 OBJ: CPMT.KLOP.15.10.04 KEY: Bloom's: Comprehension

15. All of the following describe an appropriate application of Plan Risk Responses in project management EXCEPT: a. Risk response planning should address both opportunities and threats. b. Responses should be created for every identified project risk. c. The expectations of the sponsor and key stakeholders should influence the risk responses that are developed. d. Often multiple strategies are identified for a single risk. ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 282 OBJ: CPMT.KLOP.15.10.05 KEY: Bloom's: Comprehension

16. All of the following are among the classic risk response strategies EXCEPT: a. b. c. d.

share a threat transfer a threat enhance an opportunity avoid a threat

ANS: A DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 282 - 283 OBJ: CPMT.KLOP.15.10.05 KEY: Bloom's: Comprehension

17. When a project team elects to purchase insurance, or adopts a fixed price contract with a vendor, or hires an expert, it is demonstrating which of the following risk response strategies? a. b. c. d.

avoid a threat transfer a threat mitigate a threat assume a threat

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 282 OBJ: CPMT.KLOP.15.10.05 KEY: Bloom's: Comprehension

18. Which of the following activities illustrates a risk response strategy designed to mitigate a threat? a. b. c. d.

adopt a fixed price type contract train a team member to cover for a potentially unavailable key resource change the project plan or scope develop change control procedures

ANS: B DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 283 OBJ: CPMT.KLOP.15.10.05 KEY: Bloom's: Comprehension

19. Which of the following activities illustrates a risk response strategy designed to research a threat or an opportunity? a. b. c. d.

establish triggers and update them frequently establish time or cost contingencies construct a prototype to learn more about a candidate solution identify a risk owner to each high priority risk

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 284 OBJ: CPMT.KLOP.15.10.05 KEY: Bloom's: Comprehension

20. All of the following activities illustrate a risk response strategy designed to exploit an opportunity EXCEPT: a. b. c. d.

identify trigger condition assign more or better resources purchase insurance give the project more visibility

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 284 OBJ: CPMT.KLOP.15.10.05 KEY: Bloom's: Comprehension

21. All of the following activities are appropriate upon completion of risk response planning EXCEPT: a. The risk register should be updated to reflect the risk response strategies. b. The risk register should be baselined after planning is completed, and should not be updated once the project is in flight. c. The project plan should be updated to reflect any changes to the project schedule, budget or resource assignments. d. A single person should be assigned as the owner of each risk. ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 284 OBJ: CPMT.KLOP.15.10.05 KEY: Bloom's: Comprehension

ESSAY 1. Identify and describe three risk identification techniques. What are some of the benefits of each technique? ANS: Key concepts to be covered in the response could include, but are not limited to: One method of risk identification is to conduct a brainstorming exercise, using risk categories or project stages as a starting point. A facilitator could help the group answer the question “what could go wrong”, and document the information gathered. Brainstorming is an effective means of risk identification, as participants can piggy back on one another’s ideas. Another technique is to conduct a SWOT analysis (Strengths, Weaknesses, Opportunities and Threats). A benefit of this technique is that both positive risks, or opportunities, and negative risks, or threats, can be identified. The team can also perform a structured review of project documents, such as the project charter, communication plan, assumptions and constraints, schedule, and WBS. A second look at project documents could reveal potential difficulties, incorrect assumptions, lack of clarity and understanding, or other issues that could lead to project risks. DIF: Challenging REF: P. 275 - 276 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.10.02 KEY: Bloom's: Application

2. How might you approach the prioritization of the risk events identified by your project team and subject matter experts? How would you use the results of this prioritization effort to guide the development of risk responses? ANS: Key concepts to be covered in the response could include, but are not limited to: After the project team and subject matter experts have assigned a probability that each risk will occur and an impact to the project if it does occur, the two values should be multiplied to arrive at a risk score. These scores can be used to prioritize the risks from high to low. The timing of high priority risks could be used to move those risks that are more likely to occur in the near future to a higher priority than those that would occur later in the project. Quantitative risk analysis results should also be documented in the risk register. The team should develop risk responses for the major risks that have been given a high priority in the risk register. Responses should be developed for both positive and negative risks. DIF: Challenging REF: P. 281 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.10.04 KEY: Bloom's: Application

3. Identify five common project risk strategies employed to address threats that your project may face. Give an example of each. ANS: Key concepts to be covered in the response could include, but are not limited to:

Avoid - If the risk is too large and cannot be mitigated, the project plan could be altered to take the risk out of the project. An example would be to reduce project scope or lengthen the schedule so that the risk won’t be a factor. Transfer - Sometimes the risk can be transferred to another organization. An example would be to purchase insurance. Mitigate - Strategies can be developed to lower the risk by either reducing the probability of it’s occurrence or reducing the impact to the project if it does occur. For example, if there is a risk that a key resource might not be available, the team could build in redundancy by training another person as a back up to the key resource. Accept - The risk can be accepted, and additional contingencies of time and/or money can be added to the project to cover the risk if it does occur. Research - Efforts can be made to obtain better information about the risk, by constructing a prototype, test marketing a new product, etc. The team can learn more about the risk by trying their ideas on a small scale. DIF: Challenging REF: P. 282 - 284 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.10.05 KEY: Bloom's: Application

Chapter 11 - Project Quality Planning and Project Kick-off TRUE/FALSE 1. W. Edwards Deming asserted that managers need to understand both serial variation and sequential variation and then work to reduce both. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 295 OBJ: CPMT.KLOP.15.11.01 KEY: Bloom's: Comprehension

2. W. Edwards Deming argued that managers must understand cause and effect relationships to predict future behavior. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 295 OBJ: CPMT.KLOP.15.11.01 KEY: Bloom's: Knowledge

3. Joseph Juran is credited for developing the Quality Trilogy that includes quality planning, quality control, and quality improvement. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 294 - 295 OBJ: CPMT.KLOP.15.11.01 KEY: Bloom's: Knowledge

4. Crosby, a well known quality management thought leader, asserts that quality is meeting requirements, not exceeding them. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 296 OBJ: CPMT.KLOP.15.11.01 KEY: Bloom's: Knowledge

5. The International Organization for Standardization developed a quality management standard that relies upon several quality management areas including management, resources and realization. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 295, 297 OBJ: CPMT.KLOP.15.11.02 KEY: Bloom's: Knowledge

6. Six Sigma is a quality improvement approach that is particularly suited for many service processes that people had previously said were too difficult if not impossible to measure. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 297 OBJ: CPMT.KLOP.15.11.02 KEY: Bloom's: Comprehension

7. DMAIC is typically used as a method of implementing continuous improvement and can thus be practiced repeatedly. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 297 OBJ: CPMT.KLOP.15.11.02 KEY: Bloom's: Knowledge

8. Stakeholder satisfaction requires an understanding of the ultimate quality goals with respect to stakeholders. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 298 OBJ: CPMT.KLOP.15.11.02 KEY: Bloom's: Comprehension

9. Project stakeholders will judge the quality of project work processes as well as project deliverables. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 299 OBJ: CPMT.KLOP.15.11.02 KEY: Bloom's: Comprehension

10. Project quality is defined as the degree to which a set of inherent characteristics fulfills requirements. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 298 OBJ: CPMT.KLOP.15.11.02 KEY: Bloom's: Knowledge

11. The purpose of process control is to be able to have confidence that outputs are predictable. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 300 OBJ: CPMT.KLOP.15.11.02 KEY: Bloom's: Comprehension

12. Fact-based management requires an understanding of variation, deciding what to measure, working correctly with data, and using the resulting information appropriately. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 301 OBJ: CPMT.KLOP.15.11.02 KEY: Bloom's: Comprehension

13. The goal of empowered performance is to improve performance results each and every period. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 303 OBJ: CPMT.KLOP.15.11.02 KEY: Bloom's: Comprehension

14. The quality management plan describes how an organization’s quality policies will be implemented. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 304 OBJ: CPMT.KLOP.15.11.04 KEY: Bloom's: Knowledge

15. On many small, simple projects the quality planning is performed concurrently with other planning and the quality plan is seamlessly incorporated into the project plan. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 397 OBJ: CPMT.KLOP.15.11.04 KEY: Bloom's: Comprehension

16. If necessary, the quality policy on a specific project may violate either the quality policies of the parent organization or of a major customer. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 305 OBJ: CPMT.KLOP.15.11.04 KEY: Bloom's: Comprehension

17. Perform Quality Assurance is the process of auditing the quality requirements, and the results from quality control measurements to ensure appropriate quality standards and operational definitions are used. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 307 OBJ: CPMT.KLOP.15.11.04 KEY: Bloom's: Comprehension

18. Perform Quality Assurance is monitoring specific results to determine whether they comply with relevant quality standards. ANS: F

DIF: Moderate

REF: P. 307

OBJ: CPMT.KLOP.15.11.04

NAT: BUSPROG.CPMT.KLOP.15.03

KEY: Bloom's: Comprehension

19. The outputs of Control Quality may include recommended preventive actions designed to ensure the future performance of project work is aligned with the project management plan. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 308 OBJ: CPMT.KLOP.15.11.05 KEY: Bloom's: Comprehension

20. A high level view of processes and stakeholders, that starts with suppliers and ends with customers, is sometimes referred to as a “Plan-Do-Check-Act” (PDCA) model. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 309 OBJ: CPMT.KLOP.15.11.03 KEY: Bloom's: Comprehension

21. The formality of a kick-off meeting can vary considerably depending on the size and type of project. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 311 OBJ: CPMT.KLOP.15.11.05 KEY: Bloom's: Knowledge

MULTIPLE CHOICE 1. Which of the following statements is consistent with the ideas that W. Edwards Deming promoted regarding quality management? a. Understanding variation is essential to improving quality. b. Statistical concepts rather than behavioral considerations should govern quality improvement efforts. c. A key to quality improvement is to ensure that each part of the system functions effectively, independent from the others. d. The burden of quality falls on those that do the work ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 294 OBJ: CPMT.KLOP.15.11.01 KEY: Bloom's: Comprehension

2. Joseph Juran provided guidance regarding how to conduct quality planning. All of the following items are consistent with his quality planning guidance EXCEPT: a. b. c. d.

identify all customers and their needs quality must be inspected into the process develop methods to satisfy customer requirements develop requirements based on customer needs

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 295 OBJ: CPMT.KLOP.15.11.01 KEY: Bloom's: Comprehension

3. Joseph Juran provided guidance regarding how to control quality. Which of the following items is consistent with his quality control guidance? a. b. c. d.

identify all team members and their needs establish measurement systems prove effects expend necessary efforts to exceed requirements

ANS: B

DIF: Moderate

REF: P. 295

OBJ: CPMT.KLOP.15.11.01

NAT: BUSPROG.CPMT.KLOP.15.03

KEY: Bloom's: Comprehension

4. Which of the following quality management thought leaders is generally credited with contributing the insight that team learning is necessary to improve quality? a. b. c. d.

Ishikawa Senge Taguchi Harrington

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 296 OBJ: CPMT.KLOP.15.11.01 KEY: Bloom's: Comprehension

5. All of the following items are among the key areas covered by the Malcolm Baldrige National Quality Award EXCEPT: a. b. c. d.

Leadership Strategic planning Team Learning Customer focus

ANS: C DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 296 OBJ: CPMT.KLOP.15.11.01 KEY: Bloom's: Knowledge

6. DMAIC is a disciplined process that includes five phases: Define, Measure, Analyze, Improve and Control. DMAIC is most typically associated with which of the following quality improvement approaches? a. b. c. d.

Malcolm Baldrige Total Quality Management (TQM) Six Sigma ISO 9001:2008

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 297 OBJ: CPMT.KLOP.15.11.02 KEY: Bloom's: Comprehension

7. The four core project quality concepts include which of the following? a. b. c. d.

assumption-based management stakeholder satisfaction benchmarking earned value management

ANS: B DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 298 OBJ: CPMT.KLOP.15.11.02 KEY: Bloom's: Comprehension

8. The decision process for developing relevant quality standards on a project includes all of the following activities EXCEPT: a. b. c. d.

identify all stakeholders understand the prioritized stakeholders’ requirements design work systems make tradeoff decisions

ANS: C

DIF: Moderate

REF: P. 298 - 299

OBJ: CPMT.KLOP.15.11.02

NAT: BUSPROG.CPMT.KLOP.15.03

KEY: Bloom's: Comprehension

9. All of the following reasons explain why it is better to design quality into processes than to find problems through inspections EXCEPT: a. b. c. d.

The cost of rework can be expensive. The time spent on rework aggravates time pressures that already exist on projects. Some mistakes are likely to reach the customer. The best inspectors should find every variation and defect

ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 300 OBJ: CPMT.KLOP.15.11.02 KEY: Bloom's: Comprehension

10. Which quality tool provides a crisp definition of what and how to measure specific performance? a. voice of the customer b. root cause analysis c. quality metrics d. benchmarking ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 309 OBJ: CPMT.KLOP.15.11.03 KEY: Bloom's: Comprehension

11. Fact-based management includes four key ideas. Which of the following is among the key ideas associated with fact-based management? a. b. c. d.

the need to understand variation reliance on historical research routine use of interrogations use of analogous estimating

ANS: A DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 301 OBJ: CPMT.KLOP.15.11.02 KEY: Bloom's: Comprehension

12. A source of variation that is inherent in a system and predictable is typically known as: a. b. c. d.

special cause variation. common cause variation. systemic variation. life cycle variation

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 302 OBJ: CPMT.KLOP.15.11.02 KEY: Bloom's: Comprehension

13. All of the following statements accurately describe special cause variation EXCEPT: a. b. c. d.

It is not inherent in the system It comes from external sources It is inherent in the system and is predictable It can be quite unpredictable

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 302 OBJ: CPMT.KLOP.15.11.02 KEY: Bloom's: Comprehension

14. All of the following items contribute to developing empowered performance in an organization EXCEPT:

a. setting an expectation for managers to encourage associates to treat risk events as learning opportunities b. accepting the fact that the project manager has total decision making authority c. training and equipping workers so that they’re willing to take risks d. helping develop specialists who can aid anyone in the organization ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 303 OBJ: CPMT.KLOP.15.11.02 KEY: Bloom's: Comprehension

15. Which of the following documents describes how the project team will implement the performing organization’s quality policy? a. b. c. d.

quality benchmarking plan quality control plan quality management plan quality audit plan

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 304 OBJ: CPMT.KLOP.15.11.04 KEY: Bloom's: Comprehension

16. The project manager is responsible for selecting appropriate quality standards for the project. Typically, these standards apply to all of the following EXCEPT: a. b. c. d.

team selection criteria documentation created during the project deliverables created by the project materials and related inputs used by the project

ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 307 OBJ: CPMT.KLOP.15.11.02 KEY: Bloom's: Comprehension

17. During which DMAIC phase would you find the objectives of identify possible root causes, collect data, and confirm root causes through data analysis? a. b. c. d.

Define Measure Analyze Improve

ANS: C DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 298 OBJ: CPMT.KLOP.15.11.02 KEY: Bloom's: Comprehension

18. After completing detailed planning for a project, it is often helpful for the project manager and team to apply a sanity test to the project plan. Which of the following accurately describes the application of a sanity test? a. It is based largely on the expectations of supervisors and sponsors. b. It is primarily focused on the team members. c. It should include questions to ensure budgets, schedules and resource plans are reasonable and achievable. d. It focuses on whether the project charter should be changed ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 310 OBJ: CPMT.KLOP.15.11.05 KEY: Bloom's: Comprehension

19. Which of the following serves as a pre-condition that must be met in order for a project kick-off meeting to be successful? a. b. c. d.

An atmosphere of trust and relationship building should be set by all. Project performance results should be calculated and made available to team members. Compensation packages and benefits plans should be shared with all team members. The meeting location should always be off-site

ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 311 OBJ: CPMT.KLOP.15.11.05 KEY: Bloom's: Comprehension

20. All of the following items are valid reasons to conduct a project kick-off meeting EXCEPT: a. to give team members a chance to see how all the parts fit together b. to convince stakeholders that the project leaders will be good stewards of the customer’s and organization’s assets c. to help involved workers to understand the touch points where work exchanges hands d. to emphasize that all decisions will be made exclusively by the project manager ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 310 - 311 OBJ: CPMT.KLOP.15.11.05 KEY: Bloom's: Comprehension

21. Which of the following activities are typically included in a project kick-off meeting? a. b. c. d.

The project manager evaluates team member performance. The project team collects lessons learned for use on future projects. The project manager outlines the project goals. The project sponsor brings in a facilitator to conduct a brainstorming exercise

ANS: C DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 311 OBJ: CPMT.KLOP.15.11.05 KEY: Bloom's: Knowledge

ESSAY 1. Deming, Juran, Crosby and Taguchi are among the thought leaders who introduced ideas that fueled the quality revolution. Briefly identify and describe important ideas and concepts that each of these thought leaders contributed. ANS: Key concepts to be covered in the response could include, but are not limited to: Deming - initially asserted that understanding variation was essential to improving quality, then expanded his teachings. His theories were summarized in his “profound knowledge system”, where he noted that companies operate as systems, managers need to understand cause-and-effect relationships to predict future behavior, and that leaders need to understand individual motivations and group interactions. Crosby - Said that quality is meeting rather than exceeding requirements, and that quality should be planned in, by preventing defects the first time, rather than inspected in. Taguchi - Noted that reducing variation saves money, and that project deliverables will be better with a focus on improving methods.

DIF: Challenging REF: P.295 - 296 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.11.01 KEY: Bloom's: Application

2. The quality revolution introduced many tools that can be used to improve the quality of project related processes and outcomes. Identify three quality tools and briefly describe how you would use them to improve project related processes and outcomes. ANS: Key concepts to be covered in the response could include, but are not limited to: Voice of the customer - Project managers and teams need to understand stakeholder requirements and expectations. By focusing on the voice of the customer they can capture desired features and benefits in the customer’s own words. Benchmarking - Organizations can benefit from studying the best practices of competitors and leaders in their field in order to identify ideas for quality improvements. Quality audit - A quality audit is a structured process to ensure that project activities comply with organizational policies and standards. DIF: Challenging REF: P. 309 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.11.03 KEY: Bloom's: Application

3. Assume you have been selected to lead your team in the development of a quality management plan. Identify and describe several components that a quality management plan should contain. ANS: Key concepts to be covered in the response could include, but are not limited to: A project quality management plan has many components but should include: Completeness and correctness criteria for project deliverables, from the customer’s perspective. Quality assurance and quality control activities. Quality roles and responsibilities. Quality tools to be used. Quality reporting plan. DIF: Challenging REF: P. 307 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.11.04 KEY: Bloom's: Application

Chapter 12 - Project Supply Chain Management TRUE/FALSE 1. Supply chain management focuses exclusively upon the parties directly involved in providing supplies to the project team. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 324 OBJ: CPMT.KLOP.15.12.01 KEY: Bloom's: Comprehension

2. Supply chain operations require managerial processes that span across functional areas within individual organizations, and link trading partners and customers across organizational boundaries. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 324 OBJ: CPMT.KLOP.15.12.01 KEY: Bloom's: Comprehension

3. During procurement planning, the project team determines which needs can best be met by acquiring products and services from an outside provider, and which can be accomplished by the team. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 327 OBJ: CPMT.KLOP.15.12.01 KEY: Bloom's: Knowledge

4. Buying from an outside supplier to meet project needs is a practice that is rarely used, because it invariably proves to be more expensive than obtaining materials and services internally. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 327 OBJ: CPMT.KLOP.15.12.01 KEY: Bloom's: Comprehension

5. Among the disadvantages associated with outsourcing is the gradual loss of special skills for doing some specific activities that have been outsourced. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 328 OBJ: CPMT.KLOP.15.12.01 KEY: Bloom's: Comprehension

6. Outputs of Plan Procurement Management include the procurement management plan and procurement statement of work. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 327 OBJ: CPMT.KLOP.15.12.02 KEY: Bloom's: Knowledge

7. The evaluation criteria developed during procurement planning should guide the vendor evaluation and selection. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 328 - 329 OBJ: CPMT.KLOP.15.12.02 KEY: Bloom's: Comprehension

8. On complex projects, despite the importance of factors such as technical capability, managerial capability and previous experience; the selection decision is made mostly or entirely on price. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 329 - 330 OBJ: CPMT.KLOP.15.12.02 KEY: Bloom's: Comprehension

9. Extensive supplier evaluation approaches such as surveys, facility visits and financial analysis should be applied to first-tier suppliers only. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 330 - 331 OBJ: CPMT.KLOP.15.12.02 KEY: Bloom's: Comprehension

10. In many cases, the proposal prepared by the vendor becomes a part of the final contract. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 331 OBJ: CPMT.KLOP.15.12.03 KEY: Bloom's: Comprehension

11. A contract is a unilateral document that obligates the seller to provide specified products and services under terms agreeable to the buyer. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 332 OBJ: CPMT.KLOP.15.12.03 KEY: Bloom's: Comprehension

12. A project organization can serve as either the buyer or the seller in a project related contract. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 332 OBJ: CPMT.KLOP.15.12.03 KEY: Bloom's: Comprehension

13. Contract incentives are often used when the buyer wants to maximize some aspect of performance, such as finishing the project early or providing a higher level of quality. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 334 OBJ: CPMT.KLOP.15.12.03 KEY: Bloom's: Comprehension

14. Fixed price contracts provide low risk for the seller, since the buyer will pay a fixed price, regardless of how much the project actually costs the seller. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 334 OBJ: CPMT.KLOP.15.12.03 KEY: Bloom's: Comprehension

15. One of the important factors that should influence the selection of contract type is the degree of risk for the seller and the buyer that each contract type contains. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 335 OBJ: CPMT.KLOP.15.12.03 KEY: Bloom's: Comprehension

16. Effective project partnerships generally require shared responsibilities, shared resources, shared information, shared rights and shared risks between suppliers and customers. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 337 OBJ: CPMT.KLOP.15.12.04 KEY: Bloom's: Comprehension

17. Traditional project procurement was characterized by win / lose adversarial relations between owner and contractor, whereas contemporary project partnering fosters a relationship of trust and collaboration. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 337 OBJ: CPMT.KLOP.15.12.04 KEY: Bloom's: Comprehension

18. Lean purchasing refers to a manufacturing context where just-in-time (JIT) tools are used to ensure that every step in the supply process adds value, while costs are kept to a minimum. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 340 OBJ: CPMT.KLOP.15.12.04 KEY: Bloom's: Comprehension

19. Project partnerships can be advantageous to both the client and the vendor, in terms of improved project execution, flexibility, and reduced bid administration. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 338 OBJ: CPMT.KLOP.15.12.04 KEY: Bloom's: Comprehension

20. Logistics is the work required to move and position inventory throughout a supply chain. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 341 OBJ: CPMT.KLOP.15.12.01 KEY: Bloom's: Knowledge

21. Supply chains use a combination of modes of transportation including: air, rail, water, pipeline and truck. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 241 OBJ: CPMT.KLOP.15.12.01 KEY: Bloom's: Comprehension

22. Information is a key ingredient at each stage of the project supply chain, as well as within each phase of supply chain decision making. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 341 OBJ: CPMT.KLOP.15.12.01 KEY: Bloom's: Comprehension

MULTIPLE CHOICE 1. All of these are factors that could lead to a decision to buy or outsource rather than make or perform in-house, EXCEPT: a. b. c. d.

flexibility in procurement ability to use specialized suppliers inadequate capacity more control over quality and time

ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 328 OBJ: CPMT.KLOP.15.12.02 KEY: Bloom's: Comprehension

2. All of the following entities are typically included in the supply chain EXCEPT: a. b. c. d.

suppliers public relations consumers project team

ANS: B DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 324 OBJ: CPMT.KLOP.15.12.01 KEY: Bloom's: Comprehension

3. All of the following statements accurately describe supply chain management EXCEPT:

a. b. c. d.

It is a closed-loop system solely within the project organization’s boundaries It spans across suppliers, resellers, project organizations and consumers. It addresses the flow of products, information and funds. It is a system approach to managing the entire flow of physical products.

ANS: A DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 324 OBJ: CPMT.KLOP.15.12.01 KEY: Bloom's: Comprehension

4. Which of the following is one of the PMBOK Guide’s four project procurement management processes? a. b. c. d.

Conduct procurements Perform configuration management Conduct contract reviews Perform value engineering

ANS: A DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 326 OBJ: CPMT.KLOP.15.12.02 KEY: Bloom's: Comprehension

5. The PMBOK process of documenting project procurement decisions, specifying the approach and identifying potential sellers is known as: a. Define supply chain. b. Plan procurement management. c. Schedule procurements. d. Negotiate contracts ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 326 OBJ: CPMT.KLOP.15.12.02 KEY: Bloom's: Comprehension

6. The procurement management plan: a. describes how the procurement division will be managed. b. describes how supply chain partners will be managed. c. describes how a project team will acquire goods and services from outside the performing organization. d. describes how sellers will be audited by the procurement team. ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 327 OBJ: CPMT.KLOP.15.12.02 KEY: Bloom's: Comprehension

7. A description of the procurement item in sufficient detail to allow prospective sellers to determine if they are capable of providing the products, services or results is known as: a. b. c. d.

the contract clauses and special provisions the procurement statement of work the supply invoice the purchase order

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 327 OBJ: CPMT.KLOP.15.12.02 KEY: Bloom's: Comprehension

8. Which of the following factors should be considered when a project team evaluates a “make or buy” decision to procure services? a. prevailing public opinion regarding the economic impact of outsourcing

b. only the direct costs associated with the decision, excluding consideration of indirect costs c. advantages and disadvantages of outsourcing in terms of time, cost and performance control d. project manager’s or sponsor’s preference ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 327 OBJ: CPMT.KLOP.15.12.02 KEY: Bloom's: Comprehension

9. Often a project team will start the selection process by establishing a list of potential suppliers. All of the following information sources are frequently used to identify these potential suppliers EXCEPT: a. supplier catalogs or websites b. sales personnel c. stakeholder register d. trade shows ANS: C DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 329 OBJ: CPMT.KLOP.15.12.02 KEY: Bloom's: Comprehension

10. Evaluations of prospective suppliers by project teams often involve all of the following approaches EXCEPT: a. b. c. d.

financial condition analysis facility visits supplier surveys prototyping

ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 331 OBJ: CPMT.KLOP.15.12.02 KEY: Bloom's: Comprehension

11. All of the following factors are commonly used to assess potential suppliers pursuant to a source selection decision EXCEPT: a. b. c. d.

supply quality personal relationships with senior management inbound transportation cost replenishment lead time

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 332 OBJ: CPMT.KLOP.15.12.02 KEY: Bloom's: Comprehension

12. All of the following accurately describe the features and characteristics of a contract EXCEPT: a. b. c. d.

A contract binds both the seller and the buyer. A contract obligates the seller to provide a specified product or service. A contract obligates the buyer to pay for a specified product or service. The project organization is always a buyer in a contract arrangement

ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 332 OBJ: CPMT.KLOP.15.12.03 KEY: Bloom's: Comprehension

13. Which of the following contract types is most appropriate when costs are NOT well known and the buyer absorbs all of the cost risk? a. Firm-Fixed-Price (FFP) b. Fixed-Price-Incentive-Firm (FPIF)

c. Cost-Plus-Fixed-Fee (CPFF) d. Time and Material (T&M) ANS: C DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 333 OBJ: CPMT.KLOP.15.12.03 KEY: Bloom's:Comprehension

14. Which party to a contract absorbs the preponderance of cost risk when a Firm-Fixed-Price (FFP) contract is used? a. b. c. d.

the seller the buyer the cost risk is equally shared. the insurer

ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 333 OBJ: CPMT.KLOP.15.12.03 KEY: Bloom's: Comprehension

15. Which of the following types of contracts involves payment to the seller for the seller’s actual costs plus a fee typically representing the seller’s profit? a. b. c. d.

fixed-price contract cost-reimbursable contract equitable adjustment contract direct cost contract

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 334 OBJ: CPMT.KLOP.15.12.03 KEY: Bloom's: Comprehension

16. All of the following items are generally considered when selecting the right type of contract EXCEPT: a. b. c. d.

extent of price competition overall degree of cost and schedule risk urgency of requirements project organization’s accounting system

ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 335 OBJ: CPMT.KLOP.15.12.03 KEY: Bloom's: Comprehension

17. Which of the following terms describes a method for transforming contractual arrangements into a cohesive, collaborative project team with a single set of goals and established dispute resolution procedures? a. b. c. d.

a contract unification plan partnering arbitration conflict resolution

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 336 OBJ: CPMT.KLOP.15.12.03 KEY: Bloom's: Comprehension

18. Project partnerships offer all of the following advantages to vendors EXCEPT: a. there is a more dependable stream of work b. the expected outcome is clearly stated c. the buyer gains at the vendor’s expense

d. greater potential profit ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 338 OBJ: CPMT.KLOP.15.12.04 KEY: Bloom's: Comprehension

19. Project partnerships offer which of the following advantages to both clients and vendors? a. b. c. d.

shared motivation potential of lower cost for client potential of greater profit for vendor opportunity for vendor to prove oneself

ANS: A DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 338 OBJ: CPMT.KLOP.15.12.04 KEY: Bloom's: Comprehension

ESSAY 1. Project managers must frequently decide whether to obtain needed products and services from internal sources or from external sources. This decision is often referred to as the “make or buy” decision. Briefly identify and explain at least three reasons that support the decision to “make” the products and at least three reasons that support the decision to “buy” the products. ANS: Key concepts to be covered in the response could include, but are not limited to: Factors that could lead to a “make” decision include: - Lower production cost to create the product in-house. - Lack of suitable suppliers. - The need for a customized item. Factors that could lead to a “buy” decision include: - Ability to utilize specialized suppliers - Flexibility in procurement - Inadequate capacity in-house DIF: Moderate REF: p. 328 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.12.02 MSC: Bloom's: Comprehension

2. According to the PMBOK Guide, the project procurement management knowledge area includes four processes. Identify and briefly describe each of these processes. ANS: Key concepts to be covered in the response could include, but are not limited to: Plan procurement management:

In this planning process the project procurement decisions, the approach to be used, and potential sellers are identified. This step includes determining whether to make or buy needed materials or services. The outputs of this process include a procurement management plan and a procurement statement of work for each item to be procured for the project. Conduct procurements: In this process, which occurs when the project is in flight, seller responses are obtained, prospective suppliers are evaluated using a variety of methods, and contracts are signed with selected vendors. Control procurements: This procurement process is the process of managing procurement relationships, monitoring contract performance, and making any changes or corrections that are required. Close procurements: This final process that occurs near the end of the project, is concerned with finishing the project and realizing the benefits. DIF: Challenging REF: P. 326 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.12.02 KEY: Bloom's: Comprehension

3. Contract types are often associated with two broad categories: fixed-price contracts and cost-reimbursable contracts. Briefly identify the factors to consider when determining which type is most appropriate for a planned contract. ANS: Key concepts to be covered in the response could include, but are not limited to: Fixed price contract - An agreement that sets the fee that will be paid for a defined scope of work regardless of the cost or effort to deliver it. This type of contract is appropriate when the scope and costs are well known, and it is the lowest risk to the buyer. There are several variations on the Fixed Price Contract such as Fixed-Price-Incentive-Fee (FPIF), which allows adjustments to the price for meeting predefined performance criteria, and Fixed-Price-Economic-Price-Adjustment (FP-EPA) to account for market fluctuations or inflation. Cost-Reimbursable Contract - Involve payment to the seller for the seller’s actual costs plus a fee typically representing the sellers profit. In this type of contract the project scope or costs are not well known up front, and the cost risk is absorbed by the buyer. Contract types include Cost-Plus-Fixed-Fee (CPFF) contracts where the buyer reimburses the seller for the seller’s allowable costs plus a fixed amount of profit (fee). Other variations include Cost-Plus-Incentive-Fee (CPFF), Cost-Plus-Award-Fee (CPAF). DIF: Challenging REF: P. 333 - 335 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.12.03 KEY: Bloom's: Comprehension

4. Compare and contrast traditional project procurement management with the more contemporary approach - project partnering. What are the conditions or sharing requirements for effective project partnerships?

ANS: Key concepts to be covered in the response could include, but are not limited to: Project partnering is a newer procurement approach that replaces an adversarial relationship between buyers and sellers with a supportive relationship and mutual goals. Trust and collaboration between clients and suppliers can lead to accomplishing the work faster and cheaper, and reducing litigation. There are several requirements for these types of partnerships to make them effective. The five core requirements are defined as: - Shared responsibilities for outcomes and quality - Shared resources - Open sharing of appropriate information between parties - Shared rights to disagree - Shared project rewards and risks DIF: Challenging REF: P. 337 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.12.04 KEY: Bloom's: Comprehension

Chapter 13 - Leading and Managing Project Teams TRUE/FALSE 1. The value of engaging a subject matter expert early in a project should be balanced against the potentially significant cost of paying for his or her expertise. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 351 OBJ: CPMT.KLOP.15.13.02 KEY: Bloom's: Comprehension

2. The ideal time to on-board core team members is to include them in the chartering process. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 350 OBJ: CPMT.KLOP.15.13.02 KEY: Bloom's: Knowledge

3. All project teams progress uniformly through five stages of team development. ANS: F DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 353 OBJ: CPMT.KLOP.15.13.01 KEY: Bloom's: Knowledge

4. Project manager strategies to promote organization, project and team member needs may vary from one stage of team development to another. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 353 OBJ: CPMT.KLOP.15.13.01 KEY: Bloom's: Comprehension

5. Project managers can further team development by securing agreement on common goals and objectives for the project. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 356 OBJ: CPMT.KLOP.15.13.01 KEY: Bloom's: Knowledge

6. High-performing project teams will typically persevere despite challenges, produce high quality results and consistently meet or exceed stakeholder expectations. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 357 OBJ: CPMT.KLOP.15.13.02 KEY: Bloom's: Knowledge

7. Great team synergy can make a team’s capability better than the individual members’ capabilities. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 357 OBJ: CPMT.KLOP.15.13.02 KEY: Bloom's: Comprehension

8. The “relationship” topics within team ground rules, such as protect confidentiality and avoid misunderstandings, should eliminate the need for conflict management techniques. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 363 - 364 OBJ: CPMT.KLOP.15.13.06 KEY: Bloom's: Comprehension

9. Leadership within a project team should be demonstrated only by the project manager. ANS: F

DIF: Moderate

REF: P. 359

OBJ: CPMT.KLOP.15.13.02

NAT: BUSPROG.CPMT.KLOP.15.03

KEY: Bloom's: Comprehension

10. Proactive project managers realize that conducting clear, succinct, one-way communication is a major key to their team’s success. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 359 OBJ: CPMT.KLOP.15.13.02 KEY: Bloom's: Comprehension

11. A project manager leads by placing the demands of the parent organization and the project above the needs of the project team members. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 357 OBJ: CPMT.KLOP.15.13.02 KEY: Bloom's: Comprehension

12. One important way to build team capacity is to create a desirable team identity. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 360 - 361 OBJ: CPMT.KLOP.15.13.02 KEY: Bloom's: Comprehension

13. The adoption of specific ground rules that specify acceptable and unacceptable behaviors can help prevent potential problems and improve working relationships, effectiveness, and communication. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 362 OBJ: CPMT.KLOP.15.13.03 KEY: Bloom's: Comprehension

14. The standard approach to making decisions on a project is to clearly and consistently vest decision making authority in the project manager. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 365 OBJ: CPMT.KLOP.15.13.04 KEY: Bloom's: Comprehension

15. When a decision needs to be made quickly or requires significant authority it is often useful to delegate the decision to one or two team members. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 365 OBJ: CPMT.KLOP.15.13.04 KEY: Bloom's: Comprehension

16. When many members of the project team disagree, then it may be best to delay the decision, gather more data, or agree to let one or two team members investigate and recommend a strategy for the whole team. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 365 OBJ: CPMT.KLOP.15.13.04 KEY: Bloom's: Comprehension

17. When a project team member is not performing, rewards may not prove as effective as a coercive approach that threatens the team member with undesired consequences. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 367 OBJ: CPMT.KLOP.15.13.05 KEY: Bloom's: Comprehension

18. Information is power. Withholding or distorting project information is a viable and potentially useful approach to increase power for the project manager. ANS: F

DIF: Moderate

REF: P. 367

OBJ: CPMT.KLOP.15.13.05

NAT: BUSPROG.CPMT.KLOP.15.03

KEY: Bloom's: Comprehension

19. Conflict over ideas on how to proceed with a project can lead to more creative approaches. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 371 OBJ: CPMT.KLOP.15.13.06 KEY: Bloom's: Comprehension

20. Many conflicts on projects have multiple causes. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 372 OBJ: CPMT.KLOP.15.13.06 KEY: Bloom's: Knowledge

21. The negotiation process involves several steps such as: preparing for negotiation; knowing your walk-away point; and working towards a common goal. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 374 OBJ: CPMT.KLOP.15.13.06 KEY: Bloom's: Comprehension

MULTIPLE CHOICE 1. All of the following are advantages associated with assigning both core team members and subject matter experts to the project as soon as possible EXCEPT: a. b. c. d.

implementers are more motivated when they help create the plan early assignment of SMEs to the project saves money early assignment helps ensure team members are available when needed plans are more realistic when those who will perform the work are involved in the planning

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 350 - 351 OBJ: CPMT.KLOP.15.13.01 KEY: Bloom's: Comprehension

2. The process of improving the competencies, team interaction, and the overall team environment to enhance project performance is known as: a. b. c. d.

Acquire project team Develop project team Connect project team Manage project team interactions

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 352 OBJ: CPMT.KLOP.15.13.02 KEY: Bloom's: Comprehension

3. All of the following are among the activities a project manager should undertake to develop a highly effective team EXCEPT: a. b. c. d.

assess sponsor capability assess project team capability establish team ground rules assess individual member capability

ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 352 OBJ: CPMT.KLOP.15.13.02 KEY: Bloom's: Comprehension

4. It is argued that project teams progress through five stages of team development. Which of the following sequences best represents this progression? a. b. c. d.

forming, norming, storming, performing, reforming forming, storming, norming, performing, adjourning forming, storming, norming, performing, reforming forming, performing, reforming, norming, adjourning

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 354 OBJ: CPMT.KLOP.15.13.01 KEY: Bloom's: Comprehension

5. During which stage of team development do team members attempt to jockey for power, ask many questions and establish dubious goals? a. b. c. d.

forming storming norming performing

ANS: B DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 354 OBJ: CPMT.KLOP.15.13.01 KEY: Bloom's: Comprehension

6. High-performing teams include members who typically hold which of the following values? a. b. c. d.

a high need for achievement a strict adherence to their personal points of view a commitment to self-promotion a strong need for authority

ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 356 OBJ: CPMT.KLOP.15.13.02 KEY: Bloom's: Comprehension

7. The personal values of team members on high-performing teams can be enhanced through which of the following team behavior practices? a. b. c. d.

independent efforts and emphasis on the individual constant focus on improvement unilateral initiatives and personal competition adherence to formal procedures

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 356 OBJ: CPMT.KLOP.15.13.02 KEY: Bloom's: Comprehension

8. The personal values of team members on high-performing teams can be enhanced through all of the following beneficial communication practices EXCEPT: a. b. c. d.

free sharing of information within and beyond the team open discussion of all important topics proactive reporting of potential problems encouragement of personal conflict

ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 356 OBJ: CPMT.KLOP.15.13.02 KEY: Bloom's: Comprehension

9. All of the following are among the types of capabilities that are useful for project team members EXCEPT: a. b. c. d.

activity-specific knowledge and skills personal learning insensitivity towards others organizational understanding

ANS: C DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 357 OBJ: CPMT.KLOP.15.13.02 KEY: Bloom's: Comprehension

10. Assembling the right quantity and variety of skills and experience for the project team can be quite challenging. One strategy is to staff the project with a combination of experienced and less experienced workers. All of the following are benefits associated with this approach EXCEPT: a. b. c. d.

It often costs less to use an inexperienced person. The project manager can dominate the more junior team members Mentoring within the team helps to achieve organizational learning. The more experienced person can help to mentor the more junior person.

ANS: B DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 359 OBJ: CPMT.KLOP.15.13.02 KEY: Bloom's: Comprehension

11. Which of the following is among the widely accepted project team success factors? a. b. c. d.

effective communication including performance feedback emphasis on the quality of project deliverables, without regard to cost extreme risk taking strategies to maximize project gains use of coercion to resolve conflicts and problems

ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 358 OBJ: CPMT.KLOP.15.13.02 KEY: Bloom's: Comprehension

12. All of the following are among the methods project managers can use to develop individual and team capabilities EXCEPT: a. b. c. d.

teach personal responsibility demand situational leadership utilize coercive powers demonstrate personal leadership

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 360 OBJ: CPMT.KLOP.15.13.02 KEY: Bloom's: Comprehension

13. Project teams often adopt ground rules to address which of the following relationship topics? a. b. c. d.

manage sponsors and senior leaders manage customers and clients protect confidentiality protect the project sponsor

ANS: C DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 363 OBJ: CPMT.KLOP.15.13.03 KEY: Bloom's: Comprehension

14. Project teams often adopt ground rules to address which of the following process topics?

a. b. c. d.

manage customer’s expectations manage the firm’s project management process manage the firm’s project reporting process manage meetings

ANS: D DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 363 OBJ: CPMT.KLOP.15.13.03 KEY: Bloom's: Comprehension

15. All of the following are among ground rules that have proven widely useful to project teams EXCEPT: a. b. c. d.

avoid conflict at all costs consider at alternative by considering at least two approaches before proceeding develop trust by doing work as promised and being truthful use data when possible and gather facts rather than arguing over opinions

ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 363 - 365 OBJ: CPMT.KLOP.15.13.03 KEY: Bloom's: Comprehension

16. All of the following represent common methods for making decisions on contemporary project teams EXCEPT: a. b. c. d.

The project manager makes the decision. One or two team members make the decision. The project team votes to make the decision. The sponsor is asked to make all of the decisions

ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 365 OBJ: CPMT.KLOP.15.13.04 KEY: Bloom's: Comprehension

17. Frequently, project managers lack legitimate power based upon position and instead resort to persuading others based upon personal relationships. This type of power is known as: a. b. c. d.

coercive power referent power connection power positional power

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 366 OBJ: CPMT.KLOP.15.13.05 KEY: Bloom's: Comprehension

18. Reward power relies upon persuading others based upon giving them some form of reward. It is most appropriately used when: a. b. c. d.

a team member performs well. when working with project sponsors. others respect the project manager’s opinion and expertise. a team member is not performing

ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 366 OBJ: CPMT.KLOP.15.13.05 KEY: Bloom's: Comprehension

19. Which of the following styles of handling conflict is most appropriate whenever there is enough time, trust can be established, the issue is important to both sides and buy-in is needed?

a. b. c. d.

forcing / competing smoothing / accommodating compromising collaborating / problem solving

ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 373 OBJ: CPMT.KLOP.15.13.06 KEY: Bloom's: Comprehension

20. All of the following are among the common task-related sources of project conflict EXCEPT: a. b. c. d.

schedule project priorities technical approach personalities

ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 371 OBJ: CPMT.KLOP.15.13.06 KEY: Bloom's: Comprehension

21. All of the following are among the steps of the negotiation process EXCEPT: a. b. c. d.

clarify both parties interests work toward a common goal use “good cop / bad cop” technique clarify and confirm agreements

ANS: C DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 374 OBJ: CPMT.KLOP.15.13.06 KEY: Bloom's: Comprehension

ESSAY 1. Describe at least three approaches that project managers can use to develop individuals and teams. ANS: Key concepts to be covered in the response could include, but are not limited to: Demonstrate personal leadership - a good way for project managers to build their team is to lead by example. The project manager should use the highest levels of honesty and ethics, as modeling this behavior can encourage team members to do what is right. Demand situational leadership - The project manager should start the project as a strong leader, but should have the longer-term goal of developing multiple leaders on the project team. In a great project team, leadership is situational - the person with specific knowledge should take the lead as appropriate. Create a desirable team identity - If team members believe that the project is important and that the work is stimulating, they will want to be part of the team. In certain circumstances the project manager should think about creating a project name and a “brand” to motivate team members. DIF: Challenging REF: P.360 - 361 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.13.02 KEY: Bloom's: Comprehension

2. Identify and describe five characteristics of a high-performing project team. ANS:

Key concepts to be covered in the response could include, but are not limited to: - Personal values of individual team members are the starting point. Values include:high need for achievement, willingness to put team values before their own where appropriate, and willingness to consider other points of view. - Behavior methods to enhance personal values include: Team members are selected with the right skill mix, help each other, and use effective time and meeting management. - Communication methods to support team behavior include openness in sharing and discussing information, proactively reporting potential problems, and teams conduct frequent debriefings. - Project management methods that further team development include: Jointly plan the project, use the charter to guide joint decision making, and proactively identify and solve problems. - Feelings for one another - The above methods lead to development of feelings between team members such as willingness to share risks, being flexible on how each contributes to the project, and sharing in strong project leadership. DIF: Challenging REF: P. 355 - 357 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.13.02 KEY: Bloom's: Comprehension

3. Describe the beneficial aspects of conflict on a project and identify at least three of the six step conflict resolution process that a project manager can use. ANS: Key concepts to be covered in the response could include, but are not limited to: Some conflict on projects is constructive. Competition for ideas on how to best accomplish a project activity has the potential for generating more innovative and successful approaches. However, when conflict becomes personal it is very destructive. Three techniques that a project manager can use to resolve project conflicts include: Understand the conflict - Ask clarifying questions, summarize how other people have stated the problem, and confirm that you have a common understanding. Identify causes of the conflict - There could be multiple causes for a project conflict. The project manager should identity potential causes and verify which cause is actually contributing to the conflict. Identify potential solutions for the conflict - This is a time when creativity and trust come into play. DIF: Challenging REF: P. 372 - 373 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.13.06 KEY: Bloom's: Comprehension

4. Describe at least three alternative approaches to decision making on a project team and describe when each is most appropriate. ANS: Key concepts to be covered in the response could include, but are not limited to: - Project manager or sponsor makes the decision - If the decision requires a higher authority, or needs to be made quickly. In these cases the sponsor or project manager may ask the team for input, but should make it clear that they still intend to make the decision.

- One or two team members make the decision - This approach works if there is not enough time or information at the current team meeting and the decision needs to be made before the following meeting. A variation is for the two team members to investigate, and make a recommendation at the next team meeting. - The project team votes to make a decision - This is typically not the best choice. One option is to take a non-binding vote to test for agreement, and revert to one of the other methods if many members disagree. DIF: Challenging REF: P.365 - 366 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.13.04 KEY: Bloom's: Comprehension

Chapter 14 - Determining Project Progress and Results TRUE/FALSE 1. In order to determine that a project is progressing adequately, a project manager could use a balanced scorecard approach to evaluate the organization along supplier, external business, risk and human resource perspectives. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 382 OBJ: CPMT.KLOP.15.14.01 KEY: Bloom's: Comprehension

2. Project managers should empower team members to the extent possible, yet control to the extent necessary. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 385 OBJ: CPMT.KLOP.15.14.01 KEY: Bloom's: Comprehension

3. Monitoring and controlling project work refers to the processes of tracking, reviewing and reporting progress to meet the performance objectives defined in the project plan. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 385 OBJ: CPMT.KLOP.15.14.01 KEY: Bloom's: Comprehension

4. Two types of control are used extensively on projects: steering control and go / no go control. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 385 OBJ: CPMT.KLOP.15.14.01 KEY: Bloom's: Comprehension

5. In agile projects, communication is frequent and rapid. Progress report meetings are held every morning as brief 15 minute standup meetings. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 391 OBJ: CPMT.KLOP.15.14.03 KEY: Bloom's: Comprehension

6. Perform Qualitative Risk Analysis is the process of implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk process effectiveness throughout the project. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 387 OBJ: CPMT.KLOP.15.14.03 KEY: Bloom's: Comprehension

7. When discrepancies are identified during a project quality audit, the presumption must be that workers failed to comply with procedures and should be reprimanded accordingly. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 392 OBJ: CPMT.KLOP.15.14.04 KEY: Bloom's: Comprehension

8. The control quality process deals with using correct policies and convincing stakeholders that the project team is capable of producing good output. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 392 - 393 OBJ: CPMT.KLOP.15.14.04 KEY: Bloom's: Comprehension

9. Inspection is keeping errors out of process while prevention is trying to find errors so they do not get to the customer. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 394 OBJ: CPMT.KLOP.15.14.04 KEY: Bloom's: Comprehension

10. It is often costly, difficult or even impossible to inspect an entire sample. When that is the case, it is best to inspect the population. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P.395 OBJ: CPMT.KLOP.15.14.04 KEY: Bloom's: Comprehension

11. A tolerance limit is what the customer will accept, whereas a control limit reflects what the process can consistently deliver when things are behaving normally. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 395 OBJ: CPMT.KLOP.15.14.04 KEY: Bloom's: Comprehension

12. The purpose of a check sheet is to quickly understand the primary causes of a particular problem using the 80/20 rule. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 396 OBJ: CPMT.KLOP.15.14.04 KEY: Bloom's: Comprehension

13. In a control chart, a point that occurs above the upper control limit typically means that some sort of special cause is creating the variation and requires a specific intervention. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 400 OBJ: CPMT.KLOP.15.14.04 KEY: Bloom's: Knowledge

14. Some scope changes start as proposed changes to cost or schedule, just as some changes to cost or schedule start as proposed scope changes. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 400 OBJ: CPMT.KLOP.15.14.03 KEY: Bloom's: Knowledge

15. When reporting performance to sponsors and management, it is often helpful to organize the information in terms of three time horizons: past, current and future. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 390 OBJ: CPMT.KLOP.15.14.03 KEY: Bloom's: Knowledge

16. For risk events partially within project control, resolution strategies include working with clients to reprioritize cost, schedule, scope or quality and carefully escalate problems. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 388 OBJ: CPMT.KLOP.15.14.02 KEY: Bloom's: Knowledge

17. Earned Value (EV) is the authorized budget assigned to the scheduled work. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 402 OBJ: CPMT.KLOP.15.14.05 KEY: Bloom's: Comprehension

18. When using earned value techniques, Actual Cost (AC) refers to realized cost incurred for the work performed on an activity during a specific time period. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 402 OBJ: CPMT.KLOP.15.14.05 KEY: Bloom's: Comprehension

19. The Cost Variance (CV) is a measure of cost efficiency of budgeted resources on a project, expressed as the ratio of earned value (EV) to actual cost (AC). ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 403 OBJ: CPMT.KLOP.15.14.05 KEY: Bloom's: Comprehension

20. The Schedule Performance Index (SPI) is a measure of schedule efficiency on a project, expressed as the ratio of earned value (EV) to planned value (PV). ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 403 OBJ: CPMT.KLOP.15.14.05 KEY: Bloom's: Comprehension

MULTIPLE CHOICE 1. All of the following accurately describe skills that an owner’s representative can use during the project when making tradeoffs EXCEPT: a. b. c. d.

Managing change Inspecting quality into the project Team building Knowledge of criteria

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 384 OBJ: CPMT.KLOP.15.14.01 KEY: Bloom's: Comprehension

2. The process of reviewing all change requests, approving changes, and managing changes to deliverables, organizational process assets, project documents and project management plan; and communicating their disposition, is known as: a. b. c. d.

perform project monitoring. variance analysis and control. perform integrated change control. configuration management

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 386 OBJ: CPMT.KLOP.15.14.01 KEY: Bloom's: Comprehension

3. Change control includes which of the following activities? a. identifying, documenting, approving or rejecting, modifications to documents, deliverables, or baselines b. brainstorming, selecting and implementing new ideas c. recruiting, selecting and training new team members d. identifying and implementing changes to the project charter ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 386 OBJ: CPMT.KLOP.15.14.01 KEY: Bloom's: Comprehension

4. Some organizations rely upon a formally chartered group of stakeholders responsible for reviewing, evaluating and approving changes to the project. This group is typically known as a: a. b. c. d.

stakeholder review board. change control board. project evaluation committee. steering committee

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 386 OBJ: CPMT.KLOP.15.14.01 KEY: Bloom's: Comprehension

5. When a project manager asks clarifying questions and paraphrases what is being communicated to them, he or she is using ? a. Passive listening c. Information gathering techniques b. Active listening d. Soft skills ANS: B DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 389 OBJ: CPMT.KLOP.15.14.03 KEY: Bloom's: Knowledge

6. While the manage communications process is underway, effective information distribution often requires the project manager and team to accomplish all of the following activities EXCEPT: a. b. c. d.

determine any information needs not already uncovered establish an information retrieval and distribution system develop responses to identifies risks report project performance to stakeholders

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 388 - 389 OBJ: CPMT.KLOP.15.14.03 KEY: Bloom's: Comprehension

7. Which of these guidelines should be used to handle project information needs? a. b. c. d.

target communications to as many people as possible replace communication methods as soon as new methods emerge provide information soon enough so that it is useful to the recipient use emails as the only form of communications

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 388 OBJ: CPMT.KLOP.15.14.03 KEY: Bloom's: Comprehension

8. All of the following accurately apply to project performance reporting EXCEPT: a. b. c. d.

Progress report meetings are a good way to capture lessons learned. Performance can be reported at fixed intervals or at key project milestones. Progress can be reported at varying degrees of frequency depending on the stakeholders. The same report format should be used for all stakeholders

ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 389 - 390 OBJ: CPMT.KLOP.15.14.03 KEY: Bloom's: Comprehension

9. One useful method of process improvement involves consideration of how another organization performs a process with an eye toward determining how to improve your own performance. This method is known as: a. comparative improvement.

b. benchmarking. c. variance analysis. d. sensitivity analysis ANS: B DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 393 OBJ: CPMT.KLOP.15.14.04 KEY: Bloom's: Comprehension

10. Control quality generally includes all of the following EXCEPT: a. b. c. d.

Using management by objectives Repairing defects Providing specific measurements for quality assurance Implementing approved changes as directed by the project’s integrated change control system.

ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 393 OBJ: CPMT.KLOP.15.14.04 KEY: Bloom's: Comprehension

11. Project managers interested in controlling quality on projects will often concentrate upon project inputs. Which of the following are important considerations for the project managers concentrating on inputs to ensure project quality? a. b. c. d.

ensure the workers assigned are capable of doing their work ensure that rework is kept to a minimum prove to the customer that the deliverables are correct ensure that all deliverables work before they are sent to the customer

ANS: A DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 393 - 394 OBJ: CPMT.KLOP.15.14.04 KEY: Bloom's: Comprehension

12. Which of the following serves as an important guideline concerning project inspections? a. b. c. d.

inspect after critical or expensive processes to make sure the inputs are good inspect immediately after prevention inspect at milestones identified in the project charter inspect only as a last resort

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 394 OBJ: CPMT.KLOP.15.14.04 KEY: Bloom's: Comprehension

13. In which of the following tools would a normal or bell-shaped curve be expected if no special conditions are occurring? a. b. c. d.

flow chart cause and effect diagram check sheet histogram

ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 399 OBJ: CPMT.KLOP.15.14.04 KEY: Bloom's: Comprehension

14. All of the following accurately describe earned value management EXCEPT: a. It is used to make predictions concerning the project schedule and cost control until the project’s conclusion.

b. It enables a project team to understand progress in terms of both cost and schedule. c. It is good for performance reporting but not for forecasting d. It is used as a decision-making tool. ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 401 OBJ: CPMT.KLOP.15.14.05 KEY: Bloom's: Comprehension

15. The Budget at Completion (BAC) is the sum of all budgets established for the work to be performed on a project. As such it is equivalent to: a. b. c. d.

the total planned value of the project. the total earned value of the project. the total actual cost of the project. the total value of the work completed to date

ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

WBS Element 2.01 Airframe 2.02 Engines 2.03 Avionics 2.04 Communications 2.05 Tech. Manuals 2.06 Spares 2.07 Training Project Total

REF: P. 402 OBJ: CPMT.KLOP.15.14.05 KEY: Bloom's: Comprehension

Planned Value (PV) 48000 22000 80000 30000 42000 40000 80000 342000

Earned Value (EV) 48000 21000 60000 30000 42000 35000 80000 316000

Actual Cost (AC) 50000 23000 45000 30000 48000 42000 86000 324000

Figure 14.1 Drug Surveillance Aircraft Project - Monthly Performance Report (October 31, 20XX) 16. Consider the project performance report presented in figure 14.1. What valid conclusion can you draw regarding the project schedule performance as of October 31, 20XX? a. b. c. d.

The project is $18,000 behind schedule. The project is $26,000 behind schedule. The project is 18 days behind schedule. The project is $26,000 ahead of schedule.

ANS: B DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 402 OBJ: CPMT.KLOP.15.14.05 KEY: Bloom's: Comprehension

17. Consider the project performance report presented in figure 14.1. What valid conclusion can you draw regarding the project cost performance as of October 31, 20XX? a. b. c. d.

The project is $8,000 over budget. The project is $18,000 over budget. The project is on budget. The project is $26,000 under budget.

ANS: A

DIF: Challenging

REF: P. 403

OBJ: CPMT.KLOP.15.14.05

NAT: BUSPROG.CPMT.KLOP.15.03

KEY: Bloom's: Application

18. Consider the project performance report presented in figure 14.1. Your analyst has determined that your estimate to complete (ETC) is $226,000. Based on your performance to date and assuming future performance will proceed at the same level of efficiency as past performance, what is your estimate at completion (EAC)? a. b. c. d.

$542,000 $550,000 $568,000 It can not be determined from the information provided.

ANS: B DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 403 - 404 OBJ: CPMT.KLOP.15.14.05 KEY: Bloom's: Application

19. Consider the project performance report presented in figure 14.1. As a project manager, these results should lead you to... a. take actions to understand and remedy the schedule performance on the active avionics work packages. b. take actions to understand and resolve budgetary overruns on the active communications work packages. c. take actions to understand and remedy the schedule performance on the active training work packages. d. notify the project owner that you will not require all of the funding currently budgeted for this project. ANS: A DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 403 OBJ: CPMT.KLOP.15.14.05 KEY: Bloom's: Application

20. Which of the following measures is best suited for determining whether the project is on, ahead or behind schedule? a. b. c. d.

Estimate to Complete (ETC) Schedule Variance (SV) To Complete Performance Index (TCPI) Schedule Compliance (SC)

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 402 - 403 OBJ: CPMT.KLOP.15.14.05 KEY: Bloom's: Application

ESSAY 1. Describe how you would adopt a balanced score card approach to evaluate your project performance. Your response should identify specific measures you would use as well as the approach you would take to obtain the measures you identify. ANS: Key concepts to be covered in the response could include, but are not limited to: The word “determine” describes how project managers can give direction to, influence, and regulate project work.

A balanced scorecard approach can help a project manager monitor and control a project. In this approach, a project manager evaluates the organization along four perspectives: customer, internal business, financial, and growth and innovation. This approach helps project managers understand that the different aspects are often interrelated, and their impacts on each other need to be considered. For example, a proposed change may impact the scope, quality, schedule or cost. However, each aspect should also be considered individually for project control. DIF: Challenging REF: P. 382 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.14.01 KEY: Bloom's: Application

2. Define integrated change control and briefly explain how it is accomplished in an organization. ANS: Key concepts to be covered in the response could include, but are not limited to: Perform integrated change control is the process of reviewing all change requests, approving changes, and managing changes to deliverables, organizational process assets, project documents, and project management plan; and communicating their disposition. The change control process includes considering the impact of any change, deciding whether to agree to the change, and then documenting and managing that change. Proposed changes are documented in a change request. The decision to approve the proposed change then needs to be made by the correct person or group. Some organizations use a change control board to evaluate change requests and record and communicate their decisions. DIF: Challenging REF: P. 386 - 387 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.14.01 KEY: Bloom's: Application

3. Describe the three different categories of risk events that occur during the control risk process, and some of the risk resolution strategies that might be used for each. ANS: Key concepts to be covered in the response could include, but are not limited to: Control risks is the process of implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk process effectiveness throughout the project. There are a number of good practices that a project manager can employ depending on whether they have full, partial, or no control over risk events: Risks fully within project control - Resolution strategies include closely monitoring and controlling activities in progress, documenting all change requests, and researching challenging issues early. Risks partially within project control - Establish limits to customer expectations; use honesty in managing client expectations, and carefully escalate problems. Risks outside project control - Actively monitor project environment; understand willingness or reluctance of stakeholders to agree to changes. DIF: Challenging

REF: P. 387 - 388

OBJ: CPMT.KLOP.15.14.02

NAT: BUSPROG.CPMT.KLOP.15.03

KEY: Bloom's: Application

4. Your most recent project performance report indicates that your cumulative Schedule Performance Index (SPI) is .85 and your cumulative Cost Performance Index (CPI) is .90. What conclusions can you draw from these performance indices? What actions might you take to address project performance based on these results? ANS: Key concepts to be covered in the response could include, but are not limited to: The schedule performance index (SPI) is a measure of schedule efficiency expressed as the ration of EV to PV. The SPI of .85 demonstrates that our project is proceeding less efficiently than planned and is behind schedule. The cost performance index (CPI) is a measure of cost efficiency of budgeted resources, expressed as the ratio of EV to AC. The CPI of .90 demonstrates that our project is over budget, and that we are only receiving $0.90 worth of results for every dollar we have spent. Given this information, we can also calculate the Estimate to Complete (ETC) and the Estimate at Completion (EAC), which are the expected cost needed to finish all the remaining project work, and the expected cost of completing all work. DIF: Challenging REF: P. 403 - 404 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.14.05 KEY: Bloom's: Application

Chapter 15 - Finishing the Project TRUE/FALSE 1. Sometimes a project is terminated before its normal completion. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 424 OBJ: CPMT.KLOP.15.15.01 KEY: Bloom's: Knowledge

2. Early termination can be either for default or for the convenience of the seller. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 424 OBJ: CPMT.KLOP.15.15.01 KEY: Bloom's: Comprehension

3. When a contract is terminated for convenience, the contractor must complete all deliverables in process and submit the completed deliverables to the buyer. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 424 OBJ: CPMT.KLOP.15.15.01 KEY: Bloom's: Comprehension

4. When a project is no longer needed or viable, the project manager, as primary advocate for the project, should recommend early termination. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 425 OBJ: CPMT.KLOP.15.15.01 KEY: Bloom's: Comprehension

5. The Validate Scope process occurs with interim deliverables throughout the project and with final deliverables near the end. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 422 OBJ: CPMT.KLOP.15.15.02 KEY: Bloom's: Comprehension

6. Project close-out checklists are used by many organizations to assign responsibility to each item concerning project closeout. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 422 OBJ: CPMT.KLOP.15.15.03 KEY: Bloom's: Comprehension

7. On some projects, some deliverables remain incomplete at project close-out. Activities that are not complete should be itemized, and responsibility for each should be clearly identified. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 425 OBJ: CPMT.KLOP.15.15.04 KEY: Bloom's: Comprehension

8. On long projects it is often better to capture lessons frequently since people may not remember clearly what happened several months previously. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 427 OBJ: CPMT.KLOP.15.15.05 KEY: Bloom's: Comprehension

9. Lessons learned can include significant project successes.

ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 427 OBJ: CPMT.KLOP.15.15.05 KEY: Bloom's: Comprehension

10. A method for documenting and sharing lessons must be established in order for an organization to capitalize on lessons learned. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 427 OBJ: CPMT.KLOP.15.15.05 KEY: Bloom's: Comprehension

11. More organizations effectively collect lessons learned than effectively disseminate and use them. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 427 OBJ: CPMT.KLOP.15.15.05 KEY: Bloom's: Comprehension

12. Some project sponsors will only approve a project charter if it includes and reflects lessons learned from other recently completed projects. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 427 OBJ: CPMT.KLOP.15.15.05 KEY: Bloom's: Comprehension

13. Helping good workers to secure good follow-on work is one of the most important things a project manager must do near the end of the project. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 430 OBJ: CPMT.KLOP.15.15.04 KEY: Bloom's: Comprehension

14. Celebrations of success ease the stress of working hard for a prolonged period of time trying to accomplish a project. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 431 OBJ: CPMT.KLOP.15.15.04 KEY: Bloom's: Comprehension

15. Since projects are temporary in nature and the project team disbands upon completion, it is not necessary for project managers to provide ongoing support in the form of training or change management. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 431 OBJ: CPMT.KLOP.15.15.04 KEY: Bloom's: Comprehension

MULTIPLE CHOICE 1. All of the following reasons might lead to a contract termination for default EXCEPT: a. b. c. d.

problems associated with the project schedule changing customer priorities a loss of confidence in the contractor performing the project problems associated with the project cost

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 424 OBJ: CPMT.KLOP.15.15.01 KEY: Bloom's: Comprehension

2. Which of the following reasons might lead to an early contract termination for convenience?

a. b. c. d.

The buyer faces changing priorities. The seller faces unexpected difficulties. The seller needs change. The buyer and seller negotiate a settlement

ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 424 OBJ: CPMT.KLOP.15.15.01 KEY: Bloom's: Comprehension

3. When a project is completed on time, the project team must accomplish all of the following activities EXCEPT: a. b. c. d.

use alternative dispute resolution capture and share lessons learned planning a smooth transition of deliverables into ongoing operations secure customer feedback and approval

ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 422 OBJ: CPMT.KLOP.15.15.01 KEY: Bloom's: Comprehension

4. The process of formalizing acceptance of the completed project deliverables is known as: a. b. c. d.

product acceptance. system turnover. validate scope control scope

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 422 OBJ: CPMT.KLOP.15.15.02 KEY: Bloom's: Comprehension

5. Which of the following is true concerning lessons learned on a project? a. b. c. d.

Lessons learned can only be gathered from project team members. Lessons are only identified at the end of the project after learning has occurred. Lessons are the knowledge gained by team members as they perform the project. Lessons learned are always provided by the customer.

ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 427 OBJ: CPMT.KLOP.15.15.05 KEY: Bloom's: Comprehension

6. All of the following practices have proven effective for managing lessons learned in an organization EXCEPT: a. b. c. d.

creation of databases, shared folders or wikis that all workers can easily access. documenting all lessons learned only at the end of the project. coding of lessons learned to facilitate searches by future teams. assignment of a lessons learned database “owner” who reviews new lessons and incorporates into existing lessons.

ANS: B DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 427 OBJ: CPMT.KLOP.15.15.05 KEY: Bloom's: Comprehension

7. Any of the following attributes can serve as a useful factor for coding lessons learned EXCEPT: a. type of project b. stage in project life cycle

c. issue it concerns d. lessons learned owner ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 427 OBJ: CPMT.KLOP.15.15.05 KEY: Bloom's: Comprehension

8. Closure of a project generally entails all of the following activities EXCEPT: a. b. c. d.

ensuring all work has been accomplished ensuring all resources have been reassigned ensuring all documentation is complete updating the project management plan

ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 428 OBJ: CPMT.KLOP.15.15.03 KEY: Bloom's: Comprehension

9. A project team attempting to close a project should review all of the following documents to ensure that everything promised was delivered EXCEPT: a. b. c. d.

the project charter the stakeholder register the work breakdown structure the project schedule

ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 428 OBJ: CPMT.KLOP.15.15.03 KEY: Bloom's: Comprehension

10. A project team attempting to close a project should review which of the following to ensure the customers are satisfied with the project work? a. the project charter b. the customer feedback and scope verification c. the communication plan d. the project organization chart ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 428 OBJ: CPMT.KLOP.15.15.03 KEY: Bloom's: Comprehension

11. Many organizations require the completion of a project close-out report upon completion of a project. These reports typically include which of the following? a. b. c. d.

a review of the project’s original justification a list of team members dismissed due to poor performance transcripts of team member conversations review of team building exercises

ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 430 OBJ: CPMT.KLOP.15.15.03 KEY: Bloom's: Comprehension

12. All of the following describe benefits associated with celebrating the completion of a project EXCEPT: a. b. c. d.

Celebrations can persuade team members to do just a bit more than they might otherwise. Celebrations provide an opportunity to recognize team member efforts. Celebrations mark transition points as people leave one project for another. Celebrations are held in conjunction with team performance reviews

ANS: D DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03

REF: P. 430 - 431 OBJ: CPMT.KLOP.15.15.03 KEY: Bloom's: Comprehension

ESSAY 1. Identify two actions a project manager can take to avoid terminating a project early. If these actions aren’t effective, how should the project manager approach an early termination? ANS: Key concepts to be covered in the response could include, but are not limited to: Project managers can pursue two avenues to avoid early termination of their project: - The project manager can look for stakeholders who can help keep the project viable by providing funds. - The project manager can try to continue the project but at a lower cost. Finally, if these strategies don’t work and the project is no longer viable, the project manager needs to present the facts of project progress and make recommendations for early termination. DIF: Challenging REF: P. 424 - 425 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.15.01 KEY: Bloom's: Comprehension

2. What is “validate scope” and why is it important to the project? ANS: Key concepts to be covered in the response could include, but are not limited to: Project managers need to ensure that all work on their project has been successfully completed. Validate scope is the process of formalizing the stakeholders’ acceptance of the completed project deliverables. Stakeholders should review and sign off on interim deliverables throughout the project. By the time the customer formally accepts the final project deliverable, they have had the opportunity to satisfy themselves that the deliverables will wok as planned. DIF: Challenging REF: P. 422 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.15.02 KEY: Bloom's: Comprehension

3. Project closing can have a significant impact on the members of the project team. Describe the approach you would take to address the needs of your team members during this difficult period in the life of the project. ANS: Key concepts to be covered in the response could include, but are not limited to: One of the most important responsibilities of the project manager is to provide timely updates to team members’ personnel records, and help secure their next assignments. Helping good workers secure their next project is one of the most important things a project manager can do at the end of the project. It helps the team members, and also creates goodwill towards the project manager.

At the end of the project, the project manager should also encourage team members to celebrate. Celebrations are excellent times to recognize and acknowledge both effort and results. DIF: Challenging REF: P. 431 NAT: BUSPROG.CPMT.KLOP.15.03

OBJ: CPMT.KLOP.15.15.04 KEY: Bloom's: Comprehension