A3 Prep

Question 1

What are two assumptions made in EVA analysis?

Answer 1

1) Valid estimates of % complete.
2) Actual expenditures coincide with work performed (no delayed or advanced payment)

Question 2

What are the PM’s roles in system fabrication?

Answer 2

Monitoring
Inspecting
Documenting progress
Comparing planned vs actual
Taking corrective actions

Question 3

Define “monitoring and control”

Answer 3

The process of keeping the project moving as outlined in execution phase.

Question 4

Define “project control”

Answer 4

Assessing progress against planned objectives / performance and taking corrective action.

Internal control - control imposed by internal project team and stakeholders or party who is constructing / producing the product.

External control - control imposed from client, user or other regulatory party / stakeholder.

Question 5

What are 5 types of project control?

Answer 5

Scope control
Quality control
Schedule control
Procurement control
Cost control

Question 6

What is scope creep?

Answer 6

Scope’s tendency to grow over time.

Question 7

Explain scope control.

Answer 7

Scope tends to increase.
Identify and inspect scope changes.
Determine if changes are really necessary.
Restrain changes as far as possible.

Question 8

Explain quality control.

Answer 8

Managing work to ensure meet requirements.
Quality management plan.

Question 9

Explain schedule control.

Answer 9

Keeping project on schedule.
Applying buffers strategically.
Fever chart (how project is doing).
Communicate critical activities.

Question 10

Explain procurement control.

Answer 10

Control output by controlling suppliers.
Inspection.
According to project procurement plan.

Question 11

Explain cost control.

Answer 11

Trace variances in expenditures vs budgets and cost plans.
Eliminate unauthorized and inappropriate expenditures.
Minimise cost changes.

Question 12

What are work packages?

Answer 12

Contracts for specific activity / job with its own requirements:
- work description
- cost
- budget
- schedule

Question 13

Work authorisation.

Answer 13

• part of project control
• work starts only after formal authorization and is stopped only after review and acceptance of product.
• work authorisation is applied on phase levels and project as a whole.

Question 14

What are five primary ways for obtaining and conveying project information?

Answer 14

1) Status review meetings.
2) Observations and site meetings.
3) Technology
4) Formal reports and documents.
5) Documentation management.

Question 15

What are status review meetings for?
List three types of status review meetings.

Answer 15

To assess, communicate progress, and ID deviations and quickly correct them.

1) Informal meetings & reviews.
2) Stand-up meetings
3) Formal meetings

Question 16

Communication plan includes:

Answer 16

1) schedule for review meetings.
2) milestone meetings
3) important points of contact

WHO
communicate WHAT
WHEN
to WHOM
in WHAT FORMAT

Question 17

Explain the difference between formal and informal communication?

Answer 17

Formal:
- communication through formal reports and documents
- reports to top management and PMO
- reports to project, program, and functional managers
- reports to customers / users

Informal:
- through the grapevine
- valuable information

Question 18

What is the PM responsible for in project termination and closeout activities?

Answer 18

A. Planning, scheduling & monitoring closeout activities
- Obtain and approve termination plans
- Prepare and coordinate termination plans and schedules
- Plan for transfer of project team and resources after the project

B. Final closeout activities
- Closeout all work orders and contracts
- Notify all departments of project completion
- Close the project office
- Close the project books

C. Customer acceptance, obligation, payment activities
- Ensure delivery of end and side-items
- Notify customer on fulfilment of contractual obligations
- Ensure all documents are completed
- Transmit formal payment and collect final payments
- Obtain formal acknowledgement of completion

Question 19

What are two forms of a formal project evaluation?

Answer 19

1) Post-completion project review.
2) Post-installation systems review.

Question 20

What are direct costs? Give an example.

Answer 20

Costs directly attributable to specific project, product, or service.
- Labour
- Raw materials
- Equipment
- Travel expenses

Question 21

What are indirect / project overhead costs? Give an example.

Answer 21

Costs that support multiple projects or the overall operation, but are not directly traceable to one specific project.
- Utilities
- Office supplies
- IT support services

Question 22

What are overhead costs? Give an example.

Answer 22

A subset of indirect costs that covers ongoing operational expenses necessary to run the business but not linked to any one project.
- Rent for office
- Insurance for building
- General maintenance costs

Question 23

Define “profit and total billing”

Answer 23

The markup applied to cover profit and company overhead.

Question 24

The Project Management Office (PMO):

Answer 24

Supports and oversees multiple projects

Develops standards, policies, and methodologies

Provides training, resources, and sometimes assigns project managers

Ensures consistency and alignment across all project efforts in an organisation

Question 25

What is a business case?

Answer 25

A document that assesses the value and risks (feasibility) of a project at an early stage. It attempts to convince the customer/sponsor to authorise and undertake the project.

Question 26

What is a fundamental difference between a feasibility study and a business case?

Answer 26

A feasibility study compares alternative design solutions and determines if a project is viable. A business case tries to justify the chosen alternative.

Question 27

What is leadership? And what is leadership style?

Answer 27

The ability to influence the behaviour of others to accomplish something desired. Leadership style is the way the leader achieves that influence.

Question 28

Distinguish between a participative leadership style and a delegating leadership style.

Answer 28

With a participative leadership style, the leader facilitates, supports, and communicates with followers, and the leader shares decision-making with them. With a delegating leadership style, the leader identifies the problem / goal, then delegates various responsibilities to followers for solving the problem and determining how to implement it.

Question 29

What is project leadership?

Answer 29

The intersection between General Leadership and Project Management. It is a set of habits, behaviours, and attitudes that make a difference in the project environment. This set of traits is accessible to everyone.

Question 30

Distinguish between i) social obligation, ii) social responsiveness, and iii) social responsibility

Answer 30

i) The obligation of a business to meet its economic and legal responsibilities and nothing more. ii) When a firm engages in social actions in response to some popular social need. iii) A business's intention, beyond its legal and economic obligations, to do the right thing and act in ways that are good for society.

Question 31

What is values-based management an what are its purposes?

Answer 31

An approach to managing in which managers establish and uphold the organisation's shared values. 1) guide managerial decisions 2) shape employee behaviour 3) influence the direction of marketing efforts 4) build team spirit

Question 32

What is business ethics?

Answer 32

The study of proper business policies and practices regarding potentially controversial issues.

Question 33

Define responsibility in terms of the PMI Code of Ethics.

Answer 33

Duty to take ownership of the decisions and actions we make / fail to make and the consequences that result. E.g., making decisions and taking actions based on the best interests of society, public safety and the environment

Question 34

Define respect in terms of the PMI Code of Ethics.

Answer 34

Our duty to show a high regard for ourselves, others, and the resources entrusted to us. E.g., Not exercising the power of one’s expertise to influence the decisions and actions of others for personal benefit at their expense.

Question 35

Define fairness in terms of the PMI Code of Ethics.

Answer 35

Our duty to make decisions and act impartially and objectively. E.g., Conduct is free from competing self interest, prejudice and favouritism.

Question 36

Define honesty in terms of the PMI Code of Ethics.

Answer 36

Our duty to understand the truth and act in a truthful manner.

Question 37

What is a project charter? List six components of a project charter.

Answer 37

A project charter is a formal document announcing that management has approved a project. Project scope statement. Main deliverables. Clients and key stakeholders. Project manager. Master schedule. Identified risks.

Question 38

What is the systems approach?

Answer 38

Acknowledges that the behaviour of any one element affects the behaviour of others and that no single element can perform effectively without help from others. Recognizes interdependencies and cause-effect relationships among elements. Retains attention on the overall system and the ultimate goal (allows focus on the parts, but only in regard to their contribution to the whole system).

Question 39

What is systems engineering?

Answer 39

The science of designing complex systems in their totality to ensure that the components and subsystems making up the system are designed, fitted together, checked, and operated in the most efficient way.

Question 40

List three things defined by a Statement of Work.

Answer 40

1) Scope of work and requirements. 2) End results, schedules, costs, and payment terms. 3) Methods for handling changes, responsibilities, and liabilities.

Question 41

What is a Contract Statement of Work?

Answer 41

A refined version of the SOW, reflecting the negotiated agreement. Ensures alignment between customer and contractor. Once agreed upon, the project is considered "approved" and ready to proceed.

Question 42

What is the purpose of contract negotiation?

Answer 42

Ensures clarity on price and timeline. Aligns customer and contractor expectations. Helps manage risks in complex projects.