Multiple choices ( 20 marks)

Those are typical multiple choices you can get in PMI exam 1- Which of the following is not an example of an item that causes a change request? a) The programmer decides there is a neat feature he can add to the product. b) An error in the project or product design is disco ered. c) The go ernment has changed a regulation that impacts the project. d) An identified ris! has occurred and a contingenc" plan must be implemented. Answer A is correct. This is generally considered gold-plating by PMBOK. eat! extra "eatures not re#uested by the customer should be a$oided. Answers B! %! and & are all examples o" when a change re#uest should be initiated and are there"ore incorrect answers. #-All the following are part of a ris! management plan except which one? a) $oles and responsibilities for managing ris! b) %ndi idual ris!s c) &udget for ris! management acti ities d) A description of the general ris! management approach to be ta!en Answer B is correct. Indi$idual ris's and their planned responses would be documented in the ris' response plan. Answers A! %! and & are all $alid elements o" a ris' management plan and are there"ore incorrect. '- All the following statements about a W&( are true except which one? a) %t pro ides a framewor! for organi)ing and ordering a project*s acti ities. b) %t brea!s down a project into successi el" greater detail b" le el and can be similar in appearance to an organi)ational chart. c) %t*s one of the methods a ailable to build a project schedule. d) %t*s a !e" project planning tool. Answer % is correct. A (B) is not a pro*ect scheduling method. +- ,n a top-secret biotechnolog" $-. project/ the project performance reports indicate a 0ost 1erformance %ndex 201%)of 3.41 and a (chedule 1erformance %ndex 2(1%) of 1.15. What is the most li!el" explanation for this situation? a) 1oor project management and estimating. b) 6ore experienced specialists ha e been used. c) The project team is wor!ing o ertime.

d) The special resources 2equipment/ materials) procured cost more than originall" projected.

+xplanation Answer B is correct. This is the best response because the use o" more experienced specialists could translate into ,higher resource costs- than originally estimated! but ,more producti$e- than originally planned. Answer A is incorrect because all the per"ormance indicators are not negati$e. Answer % is incorrect because earned $alue analysis accounts "or each e""ort hour! so the )PI would not increase due to o$ertime. Answer & is $ery tempting! but it.s not the best response. The higher e#uipment and materials costs explain the %PI rating! but not the )PI rating. I" answer & stated that the special e#uipment resulted in "aster wor' processes! then this could ha$e explained the situation. There"ore! answer & is incorrec

7- To manage a project/ a project plan should be realistic and achie able. Which of the following is the best method to achie e a realistic project plan? a) The project manager creates the project plan based on input from the team. b) The project manager creates the project plan based on input from senior management. c) The functional manager creates the project plan based on input from the project manager. d) The project manager creates the project plan based on the scope statement and organi)ational procedures. Answer A is correct. A strong point o" emphasis "rom PMI is that the pro*ect team should be in$ol$ed in the de$elopment o" the pro*ect schedule and pro*ect plan. Answers B! %! and & are all incorrect in this case. 8- 1roject managers frequentl" monitor ariances to determine where the" should focus their attention on a project. What is schedule ariance? a) The difference between how much the project was expected to cost and how much it is actuall" costing. b) %t*s not an issue for project managers because schedules do t"picall" ar". c) The difference between the amount of time a tas! was to ta!e and the actual amount of time it too!. d) %t*s considered a major problem b"16%. +xplanation Answer % is correct. Answer A is incorrect because this is the de"inition o" cost $ariance. Although answer B is true! a pro*ect manager must continually assess the $ariance to see

whether correcti$e action must be ta'en. There"ore! answer B is incorrect. Answer & is incorrect because schedule $ariances can be positi$e and may not necessarily re#uire correcti$e action.

9- A consulting compan" first forms a pursuit team to de elop a competiti e bid and response to an $:1 it recei ed. After learning its response had been selected b" the bu"er/ the compan" formed a negotiation team to settle on a final price. After the negotiation was complete and the contract was signed/ the project manager was assigned to the engagement. The project manager was not part of either team or the process to date/ so what should he/ as a good project manager/ do first? a) 0ompare the proposal statement of wor! with the statement of wor! in the contract. b) .e elop a project charter and communications plan. c) .e elop an initialW&(. d) $e iew the constraint and assumptions used in estimating process. Answer & is correct. /or planning! a pro*ect manager must understand the constraints and assumptions that underlined the e""ort estimates de$eloped to date. Answers B and % pro$ide the steps that would "ollow next. Answer A may not be rele$ant because negotiations o"ten alter the statement o" wor' originally. 4- Where is the best place to go to find out when indi idual people resources will be needed for the project? a) The roles and responsibilities matrix b) The project schedule c) The staffing management plan d) The communications plan +xplanation Answer % is correct. The sta""ing management plan documents when and how each person starts on the pro*ect and plans to lea$e the pro*ect. Answer A is incorrect because the roles and responsibilities matrix does not describe the ,timing- elements. Answer B is tempting! but it is not the best source "or this in"ormation. Answer & is incorrect because the communications plan does not deal with the use o" a pro*ect.s human resources.

5- ;ou ha e created the project charter but could not get it appro ed b" senior management. ;our manager and his boss ha e as!ed "ou to begin the project an"wa". Which of the following actions is the best thing to do? a) :ocus on other projects that ha e a signed charter. b) (tart wor! on critical path tas!s. c) <pdate "our 1roject $is! =og. d) (how "our manager the impact of proceeding without appro al.

+xplanation Answer & is correct. 0emember the importance PMI places on e""ecti$e communications and on ,doing the right thing.- Answers A and & are incorrect because these would not be the best actions to ta'e next. Answer B is incorrect because you ha$e not dealt with the ,lac' o" senior management appro$al- issue yet.

13- To be effecti e/ the ris! management process should >>>>>>>>>>>>>>>>>>>. a) be applied throughout the project and at all le els of s"stem decomposition and project organi)ation b) focus on ris!s that senior management finds most critical c) include a meeting with !e" sta!eholders to identif" ris!s and de elop response strategies d) be applied primaril" during concept and closeout and to some extent during planning and implementation Answer A is correct. It emphasi1es the need to apply ris' management "or the entire pro*ect li"ecycle and in all areas. Although answer B is true! and something a pro*ect manager should understand! it is not the only ris' type to "ocus on. There"ore! answer B is incorrect. Answer % is part o" ris' identi"ication! but it.s not the best answer. There"ore! answer % is incorrect. Answer & $iolates the concept that ris's must be managed consistently throughout the pro*ect. There"ore! answer & is incorrect. 11- Which of the following statements best describes the relationship between projects and programs? a) There are no differences?just different terms for the same thing. b) A project is composed of one or more related programs. c) A program is composed of one or more related projects. d) A project is a temporar" endea or/ whereas a program is permanent. Answer % is correct. Answer A is incorrect because it plays on a common misconception. Answer B is incorrect because *ust the opposite is true. Answer & is incorrect because a program is a group o" pro*ects! which are temporary endea$ors. 1#- .uring which phase of the project lifec"cle is there the greatest degree of uncertaint"? a) %nitiating b) 1lanning c) @xecuting

d) 0ontrolling Answer A is correct. As a pro*ect progresses through the li"ecycle! the degree o" uncertainty decreases. Also! Initiating is the "irst phase

1'- ;ou go to dinner at an expensi e restaurant with a group of endors from 0hina. The bill is more than A733. After dinner/ the" offer to bu" "ou dinner. Bow should "ou handle the situation? a) Cracefull" decline and pa" for "our own meal. b) Accept the gift and than! them for their generosit". c) As! for a cop" of the new endor contract. d) ,ffer to put it on "our expense account. Answer A is correct. Answer B is incorrect because you should not accept expensi$e gi"ts that may in"luence your decision ma'ing. Answer % is incorrect because you are potentially tying a business decision with a "ree meal. Answer & is incorrect because you should not pro$ide or recei$e substantial gi"ts "rom $endors that could impact your decisions. 1+- (chedule ariance is >>>>>>>>>>>>>>>>>>>>>. a) the difference between how much the project was expected to cost and how much it is actuall" costing b) not an issue for project managers because schedules do t"picall" ar" c) the difference between the amount of time a tas! is scheduled to ta!e and the actual amount of time it ta!es d) considered a major problem b"16% Answer % is correct. Answer A is incorrect because this is the de"inition o" cost $ariance. Although answer B is true! a pro*ect manager must continually assess the $ariance to determine whether correcti$e action must be ta'en. Answer & is incorrect because schedule $ariance can be positi$e and may not necessarily re#uire correcti$e action. 17- Acti it" A has a duration of + da"s and begins on the morning of Wednesda" the +th. The successor acti it"/ Acti it" &/ has a finish-to-start relationship with Acti it" A. The finish-tostart relationship has a lag of ' da"s/ and Acti it" & has a duration of ' da"s. (aturda" isn*t a wor!da". What can be determined from this data? a) The total duration is 11 da"s. b) The finish date of Acti it" & is (unda" the 17th. c) The total duration is 1+ da"s. d) The finish date of Acti it" & is Tuesda" the 19th.

+xplanation Answer B is correct. Acti$ity A completes on )unday the 2th because )aturday isn.t a wor'day. The 3-day lag occurs Monday! Tuesday! and (ednesday. Acti$ity B starts on Thursday the 45th and completes on )unday the 46th because )aturday isn.t a wor'day. The total calendar duration is 45 days.

18- What is the purpose of cost budgeting? a) To allocate cost estimates to indi idual wor! items to establish a cost baseline against which project performance can be measured. b) To monitor cost performance to detect ariances from the plan. c) To determine the cost of the resources needed to complete the project acti ities and allocate them to the proper chart of accounts for the organi)ation. d) To pro ide a quantitati e assessment of the li!el" costs of the resources required to complete project acti ities. +xplanation Answer A is correct! per the PMBOK de"inition. Answer B is incorrect because it describes cost control! not cost budgeting. Answer % is incorrect because it describes cost estimating! not cost budgeting. Answer & is incorrect because it describes estimating acti$ity as well.

19- <sing the following earned alue metrics/ calculate the (D/ 0D/ and @A0 for this projectE 1DFA7/333/ @DFA7/#73/ A0FA7/733/ &A0FA#7/333 a) (DFGA#73/ 0DFA#73/ @A0FA#8/'17 b) (DFA#73/ 0DFGA733/ @A0FA#+/3'4 c) (DFGA#73/ 0DFGA733/ @A0FA#+/3'4 d) (DFA#73/ 0DFGA#73/ @A0FA#8/'17

+xplanation Answer & is correct. 7ere.s the brea'down8 )9 :schedule $ariance; < +9 :earned $alue; = planned $alue :P9; < >6!56? = >6!??? < >56? %9 :cost $ariance; < +9 :earned $alue; = actual costs :A%; < >6!56? = >6!6?? < =>56?

+A% :estimate at completion; < BA% :budgeted at completion; @ %PI :cost per"ormance index; %PI < +9 @ A% < >6!56? @ >6!6?? < .A6 +A% < BA% @ %PI < >56!???@.A6 < >5B!346

14- ;ou ha e four projects from which to choose. 1roject 1 is a 7-"ear project with an H1D of <.(. A973I. 1roject # is a '-"ear project with an H1D of <.(. A833I. 1roject ' is a 1-"ear project with an H1D of <.(. A733I. 1roject + is another '-"ear project with an H1D of <.(. A873I. Which project is preferred? a) 1roject 1 b) 1roject # c) 1roject ' d) 1roject +

Answer A is correct. et present $alue : P9; already incorporates the number o" years! so you *ust select the pro*ect with the highest P9! which in this case is Pro*ect 4! with an P9 o" C.). >D6?K. There"ore! answers B! %! and & are all incorrect.

15#3#1-;our team has identified a ris! with some of the chemicals "ou are using on "our highwa"
construction project. %t is reall" difficult to mix them just right and/ based on past projects/ "ouJ e figured out that thereJs a high probabilit" that about 1+K of the chemical suppl" will be lost in mixing problems. ;ou decide to bu" an extra 17K of the chemicals up front so that "ou will be prepared for those losses and "our project wonJt be dela"ed. Which response strateg" are "ou using? a) A oid b) Accept c) 6itigate d) Transfer

Answer: C By buying the extra chemical stock, you are mitigating the risk.

22- When do you per orm stakeholder analysis!

a) b) c) d)

When defining the project scope When developing the project charter When creating the project management plan When putting changes through change control

Answer: A "takeholder Analysis is one o the tools and techni#ues o the "cope $e inition process. And that shouldn%t really be a surprise. A ter all, the goal o stakeholder analysis is to write down the needs o your stakeholders. And when is it most important to igure out what your stakeholders need! When you%re de ining the scope o the pro&ect work'

53- (hich is the B+)T description o" pro*ect scopeE a) All of the features and deli erables "our project will deli er b) All of the products "our project will ma!e c) All of the people in ol ed in "our project d) All of the wor! "ou will do to build the product Answer: $ (roduct scope means the eatures and unctions o the product or ser)ice being built. (ro&ect scope means the work that%s needed to build the product.

5F- Gi$en this portion o" the networ' diagram to the right! whatHs the I/ o" acti$ity /E

a) b) c) d)

13 11 18 19

Answer: A *t%s &ust easy to calculate the late inish +,-. o an acti)ity in a network diagram. ,ook at the ollowing acti)ity, take its ," +late start., and subtract one. * there%s more than one ollowing acti)ity, use the one with the lowest ,". "o or acti)ity - in the #uestion, the ollowing acti)ities are /, with an ," o 01, and 2, with an ," o 00. "o the ,- o - is 00 - 0 3 04.

25- (aul is a pro&ect manager or an industrial design pro&ect. 6he pro&ect has a 748 chance o making the company 92:4,444 o)er the next year. *t has a ;48 chance o costing the company 9054,444. What%s the pro&ect%s <=>! $138,000 $60,000 $78,000 $ 30,000 Answer: C 92:4,444 x 4.14 3 9 0:?,444 sa)ings, and 9054,444 x 4.;4 3 -974,444 expenses. Add them together and you get 91?,444.

5B. In which plan do you de"ine the processes that will be used to 'eep people in"ormed throughout the pro*ectE a) (taffing 6anagement 1lan b) 1roject 6anagement 1lan c) (chedule 6anagement 1lan d) 0ommunications 6anagement 1lan

Answer: $ !he "ommunications #anagement $lan defines all of the processes that %ill be used for communication on the project&

5D. Jou are managing a so"tware pro*ect. Jou are partway through the pro*ect! and your team has *ust deli$ered a preliminary $ersion o" part o" the so"tware. Jou are holding a wee'ly status meeting! when one o" the team members points out that an important sta'eholder is running into a problem with one o" the "eatures o" the current so"tware. The team member "eels that there is a ris' that the sta'eholder will as' "or a change in that "eature! e$en though that change would be out o" scope o" the current release - and i" the sta'eholder re#uests that change! there is a high probability that the change control board would appro$e the change. (hat is the B+)T action to ta'e nextE a) 6itigate the ris! b" as!ing a team member to get familiar with the feature of the software that might be changed b) (chedule a meeting with the sta!eholder to discuss the ris! c) Add the ris! to the ris! register and gather information about its probabilit" and impact d) Add the ris! to the issue log and re isit it when there is more information
Answer: C 'our ris( register is one of the most important project management tools that )ou have * that+s %h) )ou revie% it and go over )our ris(s at ever) meeting& ,n) time )ou come across a ne% ris(, the first thing )ou should do is document it in the ris( register& -t+s reall) eas) to lose trac( of ris(s, especiall) %hen )ou+re running a big project& .) adding ever) ris( to the register, )ou ma(e sure that )ou don+t forget about an) of them& /o once )ou+ve

identified the ris(, %hat+s the ne0t step1 'ou anal)2e the impact and probabilit) of the ris(3 !hat+s %hat the 4ualitative 5is( ,nal)sis process is for& 'ou shouldn+t ta(e an) other action until )ou+ve anal)2ed the ris(& !he reason is that it might turn out that the ris( is ver) unli(el), and there might be another ris( %ith a higher probabilit) and larger impact that deserves )our attention&

52. Tom is the pro*ect manager o" an accounting pro*ect. 7e has *ust "inished de"ining the scope "or the pro*ect and is creating the (B). 7e goes to his organi1ational process asset library and "inds a (B) "rom a past pro*ect to use as a *umping o"" point. (hich o" the "ollowing is the tool o" the %reate (B) process is he usingE a) b) c) d) .ecomposition .elphi Technique &rainstorming Templates

Answer: $ !om is using a !emplate& ,s )our compan) completes projects, the documents created along the %a) are stored in an 6rgani2ational $rocess ,sset librar)& !he W./+s from those past projects can be a great %a) to be sure that )ou are thin(ing of all of the %or( that )ou %ill need to do from the ver) beginning& 'our project %ill never match the old W./ e0actl), but there could be %or( pac(ages listed there that )ou might not have thought of on )our o%n but reall) are necessar) in )our project&

5A. (hich o" the "ollowing B+)T describes the main purpose o" the pro*ect charterE a) b) c) d) %t authori)es the project manager to wor! on the project %t identifies the sponsor and describes his or her role on the project %t contains a list of all acti ities to be performed %t describes the initial scope of the wor!

Answer: A !he project charter does several important things7 it la)s out the project re8uirements, describes an initial summar) milestone schedule, documents the business case and identifies initial ris(s, assumptions and constraints& .ut the most important thing that a project charter does is that it identifies the project manager, and assigns him or her the authorit) necessar) to get the job done&

3?. Jou are managing a construction pro*ect using a "ixed price :/P; contract. The contract is structured so that your company will be paid a "ee o" >26!??? to complete the wor'. There was a >46!??? o$erhead cost that your company had to co$er. ItHs now three months into the pro*ect! and your costs ha$e *ust exceeded >D?!???. The pro*ect has now consumed the entire "ee! and your company will now be "orced to pay "or all costs on the pro*ect "rom this point "orward. (hatHs the B+)T way to describe this situationE a) The project manager has o erspent the budget b) The project is o erdrawn c) The project has reached the point of total assumption

d) The project has ceased to be a profit center for the compan"

Answer: C !he point of total assumption is the point at %hich the seller assumes the costs& -n a fi0ed price contract, this is the point %here the costs have gotten so large that the seller basicall) runs out of mone) from the contract and has to start pa)ing the costs&

34. Jou are managing a pro*ect with a total budget o" >F6?!???. According to the schedule! your team should ha$e completed F6K o" the wor' by now. But at the latest status meeting! the team only reported that F?K o" the wor' has actually been completed. The team has spent >4B6!??? so "ar on the pro*ect. 7ow would you B+)T describe this pro*ectE a) The project is ahead of schedule and within its budget b) The project is behind schedule and within its budget c) The project is ahead of schedule and o er its budget d) The project is behind schedule and o er its budget
Answer8 B %f "ou want to e aluate how the project is doing with respect to the schedule and budget/ "ou need to calculate 01% and (1%. The first step is to write down the information "ou ha e so farE &A0 F A+73/333/ planned K complete F +7K/ actual K complete F +3K and A0 F A187/333. How "ou can calculate 1D F &A0 x planned K complete F A+73/333 x +7K F A#3#/733. And "ou can calculate @D F &A0 x actual K complete F A+73/333 x +3K F A143/333. How "ou ha e the information "ou need to calculate 01% and (1%. 01% F @D L A0 F A143/333 L A187/333 F 1.35/ which is abo e 1.3 - so "our project is within its budget. And "ou can calculate (1% F @D L 1D F A143/333 L A#3#/733 F .45/ which is below 1.3 - so "our project is behind schedule.

35. Jou are wor'ing on a construction pro*ect. Jou! your team! and your senior manager all "eel that the wor' is complete. 7owe$er! one o" your sta'eholders disagrees! and "eels that one deli$erable is not acceptable. (hat is the B+)T way to handle this con"lictE a) 0onsult the contract and follow its claims administration procedure b) $enegotiate the contract c) :ile a lawsuit to force the sta!eholder to accept the deli erable d) :ollow the administrati e and contract closure procedures
Answer8 A When thereJs a dispute between a bu"er and a seller/ thatJs called a claim. 6ost contracts ha e some language that explains exactl" how claims should be resol ed - and since itJs in the contract/ itJs legall" binding/ and both the bu"er and seller need to follow it. <suall" itJs not an option to renegotiate a contract/ especiall" at the end of the project after the wor! is complete/ and lawsuits should onl" be filed if there are absolutel"/ positi el" no other options. When a question says

that you dont have enough money in the budget to do something that will keep your project from being late, then your project will be late. Thats why time and cost are two of the triple constraints. Did you recogni e that answer D ! "follow the administrative and contract closure procedures# ! was talking about the $lose %roject process& 'ou cant close the project if theres still a claim that needs to be resolved.
33. (hich o" the "ollowing contracts has the MO)T ris' "or the buyerE a) 0ost plus fixed fee 201::) b) Time and 6aterials 2T-6)

c) 0ost plus percentage of costs 20110) d) :ixed price 2:1)

Answer: C "ost*plus contracts are ones %here the seller bills the bu)er for an) costs incurred on the project& , 9"ost plus percentage of costs: ;"$$") contract is one %here the seller agrees to pa) a percentage of the total costs of the project& !his is the ris(iest (ind of contract for the bu)er, because if the costs get reall) high then the)+re passed along to the bu)er * and the seller doesn+t have an) incentive to (eep them do%n3

3F. (hile identi"ying ris's "or a new construction pro*ect! you disco$er that a chemical you are using on your building cannot be applied in rainy conditions. Jou also learn that your pro*ect will be ready "or the chemical application around the time when most o" the rain"all happens in this part o" the country. )ince the pro*ect canHt be delayed until a"ter the rainy season and you need to ma'e sure the building gets the chemical coating! you decide that your team will *ust ha$e to wor' around the rain. This is an example o" which strategyE a) b) c) d) 6itigate @xploit Accept Transfer

Answer: C !his is an e0ample of accepting a ris(& !he team can+t do an)thing about the %eather, so the project manager has accepted the fact that the) could end up being dela)ed b) it&

36. Jou are managing a construction pro*ect. &uring your ris' identi"ication inter$iews you learn that there has been a string o" construction site the"ts o$er the past "ew months in the area where your will be building your pro*ect. The team agrees that itHs unli'ely that people will be able to steal "rom your site. +$en i" thie$es could get around your security! itHs e$en more unli'ely that your pro*ect will lose a signi"icant amount o" material i" a the"t does occur. Jou decide to monitor the ris' "rom time to time to be sure that it continues to ha$e a low probability and impact. (here do you record the ris' so that you donHt lose trac' o" itE a) b) c) d) %n a trigger ,n a watchlist %n the 1robabilit" and %mpact 6atrix %n the 6onte 0arlo anal"sis report

Answer: B , %atchlist is %here )ou (eep ris(s that don+t have a high enough probabilit) or impact to ma(e it into the ris( register but still need to be monitored& .) recording the ris( in a %atchlist, )ou %ill have a reminder to chec( to be sure that circumstances haven+t changed as )our project goes on& !hat should give )ou enough time to come up %ith a ris( response strateg) if circumstances change as time goes on&

3B. Jou are de$eloping the pro*ect scope statement "or a new pro*ect. (hich o" the "ollowing is OT part o" creating a pro*ect scope statementE a) (cope erification b) <sing the 1reliminar" (cope (tatement c) Alternati es identification d) ,btaining plan appro al
Answer: A /cope <erification is the #onitoring = "ontrolling process for the /cope #anagement (no%ledge area& -t doesn+t have an)thing to do %ith planning out the scope of the project > )ou do it as )ou complete each project phase to ma(e sure that )our team has completed all of the project %or(& /ta(eholder anal)sis and alternatives identification are both tools used in the /cope ?efinition process to %rite the $roject /cope /tatement& 6f course, )our /cope /tatement %ill need to be approved before )ou can get to %or( as %ell&

3D. (hich o" the "ollowing is OT a cost estimation tool or techni#ueE a) &ottom-up b) 1arametric c) 0ost aggregation d) Analogous
Answer: C "ost ,ggregation is used to build )our budget, but it is not a tool for cost estimation& .ottom*up, $arametric, and ,nalogous estimation techni8ues are used for both cost and time estimates&

32. (hich o" the "ollowing processes is in the Initiating process groupE a) b) c) d) .e elop preliminar" scope statement .e elop project management plan (cope .efinition Acti it" .efinition

Answer: A -t+s prett) eas) to remember %hich processes are in the -nitiating group, because there are onl) t%o of them3 .ut more importantl), it+s useful to (no% %hat )ou need to do %hen )ou initiate a project& @irst the project charter needs to be created, %hich authori2es the project manager to do the %or(& ,nd then )ou need to develop the preliminar) scope statement, %hich gives an initial overvie% of the %or( that needs to be done so that )ou can start planning&

3A. A notice sent to a sub-contractor about the contract is an example o" which 'ind o" communicationE a) b) c) d) %nformal Derbal :ormal Written :ormal Derbal %nformal Written

Answer: B

,n)time )ou have an) communication having to do %ith the contract, it+s al%a)s formal %ritten communication&

F?. A pro*ect manager is negotiating with a contractor. either has a good idea o" how long the pro*ect will ta'e! or how much the materials will cost. (hich contract type is MO)T appropriate "or this pro*ectE a) b) c) d) 0ost plus fixed fee 201::) Time and 6aterials 2T-6) 0ost plus percentage of costs 20110) :ixed price 2:1)

Answer: B !ime and #aterials ;!=#) contracts are used in labor contracts& -n a !=# contract, the seller pa)s a rate for each of the people %or(ing on the team plus their material costs& !he 9!ime: part means that the bu)er pa)s a fi0ed rate for labor * usuall) a certain number of dollars per hour& ,nd the 9#aterials: part means that the bu)er also pa)s for materials, e8uipment, office space, administrative overhead costs, and an)thing else that has to be paid for&

F4. (hich is OT an example o" cost o" #ualityE a) The cost of inspecting "our product to be sure that it meets requirements. b) The cost of re iewing documents used to produce "our product to be sure that the" do not ha e defects. c) The cost of training "our team on techniques that will help them a oid defects. d) The cost of contracting another compan" to build part of the product.
Answer: $ ,n) activit) that helps )ou find, prevent or fi0 defects in )our product is included in the cost of 8ualit)& !he activities )ou do to build the product don+t count to%ards that number&

F5. (hich o" the "ollowing is OT a sta'eholderE a) b) c) d) A project team member An attorne" from "our compan"Js competitor A representati e from "our project teamJs union The project sponsors

Answer: B , sta(eholder is an)one %ho is affected b) the cost, time, or scope of )our project& ,nd that includes unions * if )ou have team members %ho are in a union, then )ou al%a)s need to consider that union as a sta(eholder and ma(e sure their needs are met& Ao%ever, )ou don+t need to consider the needs of )our compan)+s competitors&

F3. (hich o" the "ollowing helps you identi"y the root cause o" 2?K o" the de"ects in your pro*ect using the 2?@5? ruleE a) (catter chart

b) 0ontrol chart c) 0ause-and-effect diagram d) 1areto chart

Answer: $ $areto charts plot out the fre8uenc) of defects and sort them in descending order& !he right a0is on the chart sho%s the cumulative percentage& !his helps )ou figure out %hich root cause is responsible for the largest number of defects& !he 80B 0 rule states that 80C of defects are caused b) 0C of the root causes )ou can identif)& /o if )ou do something about that small number of causes, )ou can have a big impact on )our project&

FF. (hich o" the "ollowing is OT a part o" the preliminary scope statementE a) b) c) d) A list of requested changes A list of project deli erables The project objecti es A rough order of magnitude cost estimate

Answer: A !he preliminar) scope statement contains a preliminar) version of the things )ou see in the scope statement& -t sho%s )ou an initial description of the %or( that needs to be done, so that )ou can begin planning& -t does not contain an) changes )et, because %hen )ou %rite it, )ou haven+t created an) deliverables )et, so there+s nothing to change&

F6. Jou are the pro*ect manager "or a railroad construction pro*ect. Jour sponsor has as'ed you "or a "orecast "or the cost o" pro*ect completion. (hich o" the "ollowing is the B+)T metric to use "or "orecastingE a) b) c) d) @D and A0 (D and 0D @T0 and DA0 (1% and 01%

Answer: C @orecasting is a cost monitoring tool that helps )ou predict ho% much more mone) )ou+ll need to spend on the project& /o %hich of the cost metrics %ould )ou use to do that1 !here are t%o useful numbers that )ou can use for forecasting& 6ne of them is called Dstimate to "omplete ;D!"), %hich tells )ou ho% much more mone) )ou+ll probabl) spend on )our project& ,nd the other one, <ariance at "ompletion ;<,"), predicts %hat )our variance %ill be %hen the project is done&

FB. A company uses a management techni#ue that employs #uality assurance techni#ues to continuously impro$e all processes. This is called8 a) b) c) d) Must %n Time 6anagement Iai)en %shi!awa .iagrams %nspection

Answer: B Eai2en is a Fapanese %ord that means 9improvement: * and it+s also a management techni8ue that helps )our compan) use problem*solving to constantl) find ne% %a)s to improve& Eai2en focuses on ma(ing small

improvements and measuring their impact& -t+s is a philosoph) that guides management, rather than a particular %a) of doing 8ualit) assurance&

FD. Jou are wor'ing with potential sponsors to determine which pro*ect your company will pursue. Based on the bene"it-to-cost :B%0; ratios! which o" the "ollowing "our pro*ects should you recommendE a) 1roject A has a &0$ of 7E# b) 1roject & has a &0$ of 7E+ c) 1roject 0 has a &0$ of 'E1 d) 1roject . has a &0$ of #E1 Answer c F2. (hich o" the "ollowing is OT an example o" a deli$erableE a) b) c) d) 1roject 6anagement 1lan 1roject (chedule Wor! &rea!down (tructure 1arametric @stimation

Answer: $ $arametric estimation is a tool for creating estimates& -t+s not a deliverable&

FA. Jou ha$e been as'ed to select between three pro*ects. Pro*ect A has a net present $alue o" >6F!D6? and will ta'e six months to complete. Pro*ect B has a net present $alue o" >26!4?? and will ta'e two years to complete. Pro*ect % has a net present $alue o" >46!??? and a bene"it-cost ratio o" 685. (hich pro*ect should you chooseE a) b) c) d) 1roject A 1roject & 1roject 0 There is not enough information to decide

Answer: B !he idea behind net present value ;or G$<) is that )ou can compare potential projects b) figuring out ho% much each one is %orth to )our compan) right no%& , project+s G$< is figured out b) coming up %ith ho% much the project is %orth, and then subtracting ho% much it %ill cost& -f )ou+re as(ed to choose bet%een projects and given the G$< of each of them, choose the one %ith the biggest G$<& !hat means )ou+re choosing the one %ith the most value3

6?. (hat are the strategies "or dealing with positi$e ris'sE a) b) c) d) A oid/ mitigate/ transfer/ accept Transfer/ mitigate/ a oid/ exploit @xploit/ share/ enhance/ accept 6itigate/ enhance/ exploit/ accept

Answer: C $ositive ris(s are opportunities that could happen on )our project& !he strategies for dealing %ith them are all about ma(ing sure that )our project is in a position to ta(e advantage of them or at least share in them %ith other projects if possible&

)ection B

)ection B : Analytical case study - 5? points;

N1

The project could be dela"ed and the project manager could contract out some of the code writing to shorten the duration of that acti it". The project could exceed its budget and the project manager could negotiate for the remo al of some of the lessimportant program capabilities.

The 0hief ,perating ,fficer of &eirut Airline/ Iarim Ajam was put in charge after the 0@, unexpectedl" resigned. Iarim was named acting 0@, and told bu" the airlineJs board of directors that he would be considered for the potion permanentl" if the next few months went smoothl". Iarim was er" ner ous because he !new that the compan" was on the erge of financial troubles. Be was not expecting to ma!e profits that had been projected for the next few months. Be !new the tic!et selling was down due to recent unrest in the political situation in the cit" and nationall". The resigned 0@, had hired the consulting group to help identif" the cost sa ing for the airline. The firm hired was unfamiliar to Iarim/ and there were rumours around the compan" that the lead consultant was a friend of the now resigned 0@,. TB@ 0onsulting group had been inter iewing staff at the compan" for the last two wee!s in order to prepare a proposal for wor! re-design to cut costs. Iarim met with the consultants and the" presented him with their proposal. The proposal outlined the cost of the consultants and the projected sa ings the compan" could expect after the consultantJs wor! was finished. Iarim was now sure precisel" how the sa ings were determined and what would be the redesign project specific deli erables. Luestions8 (hat should Karim do nextE (hat in"ormation he should as' the consultant "or be"ore accepting their proposalE (hat pro*ect planning tools would you sugest Karim as' the consultant to use to outline the pro*ect more speci"ically and address his concerns

Avery Mitchell should make no decision until he gets more information. He should ask for references, examples of other work redesign jobs the consultants have done, and he should ask about the relationship they had with the former C ! of the "oo. He should also ask for a specific action plan with deliverables, objectives, schedules, resource needs, etc. #n addition, he should ask for a linear responsibility chart so that $oo officers can identify what the consultants are responsible for and what the $oo is accountable to do to meet the targets. %his would help determine if and how the work re&design project would impact ongoing work or other projects going on. Also, Avery needs all of this information to see how the consultants propose to carry out the project. He can then determine the impact of the project on the $oo's everyday operations. %his would also enable him to see where and how the cost savings were determined and whether they would be sufficient to meet the $oo's profit projections.

Problem 4 : 4? points; A project has just completed the 49th item in its action plan. %t was scheduled to ha e spent onl" A184/333 at this point in the planO bust has actuall" spent onl" A178/333. The foreman actuall" estimates that the alue of the wor! actuall" finished is about A 18#/333. What are the spending and schedule ariance for project L what are the (1% and 01%

ACWP = 156,000
&0W1 F 18#/333 &0W( F 184/333 0ostLspending ariance F &0W1 G A0W1 F 18#/333 G 178/333 F B!??? (chedule ariance F &0W1 G &0W( F 18#/333 G 184/333 F -B!??? 01% F &0W1LA0W1 F 18#/333L178/333 F 4.?32 (1% F &0W1L&0W( F 18#/333L184/333 F .ABF =ess has been spent than the baseline plan/ howe er/ gi en what has been spent/ less progress has been made than should ha e been.
Problem 5 :5? points; An old wooden bridge o er a ba" is in danger of collapse. The high wa" department in .ubai is currentl" considering two alternati es to alle iate the situation and pro ide for expected increases in future traffic. ,ne plan is a con entional steel bridge and the other is a tunnel under the ba". The department is familiar with bridge construction but has no experience in maintenance costs for tunnels. The following data ha e been de eloped for the bridgeE :irst costE A 19/333/333 1ainting e er" six "earsE A 1/333/333 $easphalting e er" ten "earsE '/333/333 (tructural o erhaul e er" fifteen "earsE A +/333/333 Annual maintenanceE A '33/333 The tunnel is expected to cost A #+/333/333 and will require repa ing e er" 13 "ears at a cost of A#/333/333. if both designs are expected to last for '3 "ears with negligible sal age alue/

determine the maximum equi alent annual maintance that could be permitted for the tunnel so that both alternati es are equal at 4K interest rate

Problem 3 : 6? points;
Activity A B C D E F G H I Prece e!ce First Activity follows A follows A follows A follows A follows B , C follows C, D follows F, G follows E follows H,I Ma!po"er 14 2 8 6 10 16 4 12 18 20 #ormal Cost 10000 1000 4000 1500 5000 7000 800 1500 6000 12000 Crash Cost $ 15000 2000 6000 2500 8000 10000 1400 2200 13000 20000 #ormal %uratio! ( ays) 2 8 6 5 4 5 4 6 2 6 Crash %uratio! ( ays) 1 6 4 2 2 2 2 3 1 4 &' &( )' )( *( (( + C,MP)&*&% 100 100 100 100 100 80 100 50 50 0

abcde"-

(hat is the total pro*ect duration :6 points; %omplete the table shown abo$e : 6 points; I" an update was done at day 46 "rom the start o" the pro*ect what do you conclude :4? points; 7ow can the pro*ect "inish on time i" it is behind in part c :4? points; Prepare a schedule assuming that the maximum number o" resources is 5? persons per day :4? points; I" acti$ity + was completed in 3 days at a cost o" >66???! what is %0 and what do you conclude :4? points;