PgMP Test Questions Flashcards
https://www.simplilearn.com/pmi-pgmp-exam-prep-free-practice-test (170 cards)
- A program comprises of 10 projects. As the projects are performing the Validate Scope process, what should be the focus of the program manager?
a. Create a high level work breakdown structure for the program (PWBS)
b. Manage by exception and handle the change requests coming out of this process through the program level change management processes
c. Verify that the project deliverables will help deliver the intended benefits
d. Ensure that the projects are following the appropriate test procedures and strategies Score
Answer: c) The program manager needs to integrate the project deliverables in order to deliver the benefits to the organization.
Validate scope at the project level refers to the final acceptance tests for the projects. Here, the program manager needs to make sure that the** deliverables enable the program to deliver the intended benefits.**
- An engineering company is working on a program for a client that is spread across 6 countries and 12 sites. Each site is considered a project and the program manager also manages the client relationship and the finances. Which of the following is the most important risk for the program manager?
a. The tax regime in one of the countries is volatile and may have implications for a project in the program.
b. The program earns revenues in dollars and spends in 6 different currencies, hence exchange rate fluctuations is a risk.
c. One of the sites is fairly remote and this causes transportation costs to go up.
e. Though the client representative is quite friendly, she is known to be a tough task master and will not tolerate delays in completion.
Answer: b) This question is essentially trying to get the participant to prioritize the risks. Remember we are talking about the program manager’s view point.
A and C are valid risks, but probably will be managed by the respective project managers.
B and D are both program level risks. D says the client is particular about dates (all clients are!), whereas B talks about a currency fluctuation risk and seems to be higher priority.
- A program consists of 10 projects, each headed by a project manager. Who should be responsible for the identification of risks on the program?
a. The program manager
b. The program managers and the project managers
c. The program team
d. All the stakeholders of the program
Answer: d) The risk identification process ideally should involve everybody associated with a program. Hence choose the broadest possible answer, which in this case is D.
- A program has several projects that rely on the services of a vendor for delivery of critical parts. The parts are pretty standardized and usually procured under firm fixed price contracts. During a particular year, the supplier asks for renegotiating the prices because the dramatic increase in input costs has made the supply of parts unviable. What should you do as a program manager?
a. Forward the request to the procurement team and let them handle this as per their normal procedures
b. Agree to the request only in the cases of projects which have a positive cost variance and can accommodate an increase
c. Refuse the request as the supplier bears the cost risk in a fixed price contract
d. Agree for the negotiation taking the project managers and the procurement team into confidence
Answer: d) Though it is true that the supplier bears cost risk in case of fixed price contracts, the** buyer needs to be considerate in case of events that go beyond the control of the supplier**.
The contract is good only if it helps both seller and buyer to realize value from it. When the seller loses money on a contract, their commitment to deliver will go down, which would be a major impact for the program. So, it is only reasonable that renegotiations are entered into.
- A program manager wants to initiate a new component that will help improve the efficiency of the existing components. One of the members of the program board disputes the reasons for the new component and feels the results can be achieved without a new component. The program board is split equally in the two camps. What is the best way to arrive at a decision?
a. The program sponsor should decide
b. There should be a vote and the majority decision should be respected
c. The discussions should continue until a consensus is reached
d. The request should be turned down as there is not enough support behind the component
Answer: a) This is clearly a program board decision, but the board seems to be split in the two camps. Under the circumstances, the best way to proceed would be for the program sponsor to take a decision. The governance board is not a consensus committee, but the program sponsor normally has veto powers.
- The World Bank is evaluating whether or not to fund a mass transportation improvement program in a major city. Since the funding is for a social benefit, the first ask is to conduct a benefits analysis and identify benefits. Which is the best description of what will take place during benefits identification?
a.Create and prioritize projects and establish benefits metrics
b. Determine benefits, evaluate benefits, and setting up metrics to measure benefits
c. Monitor projects, maintain benefits register, and create benefits reporting
d. Create benefits monitoring and the benefits realization plan and align benefits into the program management plan
Answer: b) The activities and deliverables of benefits identification are determine benefits, evaluate benefits, and set up mechanisms to measure benefits.
- Project A and Project B are part of a program. Project B depends upon the output of project A. From the project perspective, this is an example of:
Internal dependency
External dependency
Mandatory dependency
Finish-to-Start dependency
Answer: b) For project B, the dependency is on another project, hence from a project perspective, it is an external dependency. There is not enough information to say if it is mandatory or finish-to-start.
- The program scope statement has been finalized, the distribution of work among various components has been determined and the program WBS has been created. The program manager asks the project managers to create a work breakdown structure. The project managers are having difficulty understanding what purpose the project level WBS will serve over and above the PWBS. Which statement best explains the need for a project level WBS?
a. To be able to determine which parts of the program’s work should be done in-house and which parts can be outsourced.
b. To gain a better understanding of the dependencies among the work of different projects and to sequence the activities accordingly.
c. To better organize the work of the projects into smaller, more manageable units that the project manager can keep a track of.
d. To be able to meet compliance requirements to the relevant standards in project and program management.
Answer: c) The reason to develop a WBS is to basically break the work down into smaller deliverables that can be better managed by the project managers.
All other answers have some inaccuracies. For example, WBS does not involve make or buy analysis or determine sequencing. The WBS is a tool that benefits better management, not necessarily to satisfy some compliance requirements scope.
- Company A is performing due diligence and is in talks to acquire Company B. One of the agenda items is to understand the ongoing programs from Company B and getting an understanding about likely cash inflows and outflows on the programs in the coming years. Where is this information most likely to be found?
a. Program management plans and benefits realization plans of ongoing programs in Company B
b. The portfolio and strategic management plans for Company B
c. The financial management and benefit realization plans of the ongoing programs
d. The business case and program charters of ongoing programs
Answer: c) The program financial management plan documents funding schedules, initial budgets, contract payments and financial metrics.
The benefits register provides the list of planned benefits and target dates and milestones for benefits achievement.
Together, these documents can provide the information necessary for due diligence.
- A program manager is a big believer in the value of industry academia partnership. She would like the projects to establish an internship program and perform some research work with university support. The project managers have not been forthcoming on this front, as they believe their work is business critical and cannot rely on academic alliances. What is the best way for the program manager to proceed?
a. Establish a policy that 10% of the project’s staff should be student interns
b. Call for a meeting with the project managers and impress upon them the value of the partnership
c. Find a component that is willing to pilot this concept and start small
d. Call the dean of the local university to make a presentation so that the project managers can be convinced
Answer: c) This concept cannot be pushed by diktat (Option A) or rhetorical speeches (Option B). Calling the university to pitch this concept may not be advisable until the apprehensions of the project managers have been allayed (Option D). Option C seems to be a reasonable option. Start a small pilot and build on it.
- How exactly can a program manager ensure that the benefits from a program are indeed being realized?
By dividing responsibilities between the program team members
By planning specific activities for benefits realization, then monitoring and tracking benefits delivery
By creating a benefits realization plan
By setting appropriate performance objectives for the project managers around benefits realization
Answer: b) Merely creating benefits realization plan does not help in realizing the benefits, nor does assignment of responsibility or assigning performance objectives. The program manager needs to plan specific activities for benefits realization.
- A program manager who is being appointed to a new program is insisting that the program charter be issued. Which of the following is the MOST important purpose of the program charter?
It lays down the initial set of requirements and intended benefits
It defines the structure of the program and the related components
It formally authorizes a program and secures senior management buy in to apply organizational resources to it
It provides the business case for the program
Answer: c) The main reason for a charter is that through a charter, the senior management of the organization formally brings a program into existence and agrees to commit organizational resources to it.
- A retail store is expanding in a new country and is looking for an IT supplier to provide PoS equipment, networking, computers, and application maintenance services for its stores. An RFP has been floated. How should the prospective sellers respond to the RFP?
a. They should establish their capability of meeting the requirements specified in the RFP and accordingly supply a quote for the work involved
b. They should work on feasibility, followed by detailed estimation and then send a detailed proposal after looking at the requirements
c. The feasibility has to be established from a financial, technical and capabilities view point and the commercial viability of the proposal has to be established before filling in the bid documents
d. They should understand the decision criteria and the people who will be making the decision and see how best they can be influenced to win the contract
Answer: b) The response to an RFP has to be a detailed proposal.
Not just a quote or a bid.
Trying to influence the decision makers before the decision is not in keeping with professional responsibility.
- Which of the following areas should NOT be the focus of the program management domain?
Managing interfaces between the components
Managing transition of components and the overall program
Aligning the program with strategy
Ensuring strategic decisions are taken in accordance with legal frameworks
Answer: d) The program manager is expected to ensure A, B, and C but not D. Strategic decision making typically happens at a level above the program manager and the program manager is not competent to vouch for the legal validity of the decisions.
- A construction program frequently needs diesel generation sets for construction activity in a remote site where electricity supply has not yet arrived. The program policy is to rent the generator sets rather than buy them. A project manager made a request to buy a generator for his project, because he would like to have greater control over the availability, specifications and conditions of use. The other projects are perfectly happy with the renting arrangement. What should you do as a program manager?
Refuse the request and explain the rationale behind the rent vs. buy policy
Discuss the requirements of the project manager with the supplier from whom the sets are rented and try to work out a solution
Agree to the request of the project manager after making an exception
Change the policy of buy vs. rent for the entire program rather than only one project
Answer: b) The reason for the project manager’s dissatisfaction has to be understood and discussed with the supplier before making the call. There may be reasons behind the policy being what it is and it should not be changed lightheartedly. Nor should the request be denied out of hand without establishing the need and trying to address it.
Fix
Answer: b) The work is known to be technically complex and the scope of work is unstable. Therefore fixed price contract cannot be used. Among options A, B, and C which all recommend cost reimbursable contracts, option B is best because it would provide an incentive to the vendor.
Answer: b) The Ishikawa diagram is useful for isolating the area or areas that could be causing the problem. Identifying the root cause is the first and important step in finding a remedy. The Pareto diagram is useful for determining the priorities between possible underlying causes. The flowchart is a diagram that displays the connectivity between pieces of a system. The control or run chart is useful for determining the measured output over the manufacturing process for acceptable and failed products.
- What is the ideal role for the Program management in the change management process?
To control unnecessary changes
To act as a process police, ensuring that the process is followed at all times
To expedite the routing of the change requests to the program board
To delay changes as far as possible so that the program can stay on track with plans
Answer: a) Preventing unnecessary changes is the best service that the program manager can provide to a program with regard to change management. They are uniquely positioned to do this because they have a view of the organization’s expectations about benefits and the correlation of the activities to achieving the benefits.
- A company working in the pharmaceutical industry has been acquired by another company. The new owners are reviewing the existing programs and taking a decision whether they fit into their strategy or not. Which of the following will be LEAST useful while making the decision about strategic alignment?
Business Case
SWOT analysis
Governance plan
Benefits realization plan
Answer: c) The governance plan is about how the program will be administered and governed, and does not really address the strategic alignment.
The business case gives an idea about the high level goals of the program.
SWOT analysis gives the positioning of the program with regard to its environment
and the benefits realization plan outlines the benefits and the plan to realize them.
Except for the governance plan, all others are useful for determining alignment with strategy.
- Three projects which were part of a program are complete. The deliverables have been validated and accepted by the customer. While a final review before transition was in progress, the manager of the operational unit responsible for supporting the deliverables has expressed concern that his staff has not been trained in the support procedures. What should the program manager do?
Withhold the transition until the operations have been adequately enabled.
Set up a training plan and identify resources for the training before approving the transition.
Ask the customers if they are willing to accept a drop in service quality while the training is completed.
Ask the project managers why the training was not completed and log in the lessons learned.
Answer: a) The transition plan needs to be executed (not just planned as in option B) before the transition can be completed.
Without adequate enablement of the operations staff, there is no point in approving the transition.
Asking customers to put up with a lower quality of services exposes the lack of maturity in the program’s processes.
Analyzing the reasons for the training not being completed is necessary but would not be the first thing on the program manager’s mind at this point.
- Which of the following will NOT feature as subsidiary plan(s) of the program management plan?
Benefits management plan
Governance plan
Stakeholder engagement plan
Project management plans
Answer: d) The program management plan is a high level plan that outlines how the overall program will be management. It provides guidance and direction to individual project management plans but does not necessarily contain all the project management plans as subsidiaries.
- A project manager is selecting a vendor for a complex piece of work on her project, for the project does not have in-house technical expertise. Which of the following vendors should the program manager recommend?
Vendor A, which is the preferred vendor for the program at large
Vendor B, which has quoted the lowest price
Vendor C which has the most experience in the technology
Vendor D, which has the best reputation for after sales service
Answer: c) The selection of the vendor should be based on the reasons for outsourcing. Here, the reason is absence of in-house technical competency. Therefore (in absence of any other information), Vendor C, which seems to be the best choice
- A project is part of a program. The project manager has used different techniques to identify and analyze risks and plan responses. She has further provided for contingency reserves. However, she tells the program manager that her gut feel suggests there are probably more risks that could arise during the project execution. What would be your advice while finalizing the plan?
To have a set of workarounds ready in case some unidentified risk occurs.
Tell the project manager not to worry because the program level contingency reserves can be utilized for these.
Set aside some management reserves to be used in case an unknown risk event occurs.
Tell the project manager not to worry too much; if an unknown risk occurs it is always possible to raise a change request to cover for the impact.
Answer: c) The program manager must advocate a proactive approach towards risk management. C is the best choice because it recognizes the existence of some risks which may not have been identified upfront and provides for it. Workaround by definition is an unplanned response, so it cannot be decided in advance. The program level contingency reserves should be used for program level risks, not to cover unknown unknowns at project level.
- A manufacturer of luxury automobiles is keen on entering into a new market, which seems to have a lot of potential. What should be the first step for the company on this venture?
Establish a joint venture with a local automobile company which has a better understanding of the local market and local regulations.
Prepare a business case to understand the implications of this venture for the overall organization.
Undertake a detailed market study to figure out the demand for luxury automobiles in the target market.
Issue a program charter and appoint a program manager who is a resident of the target market region and an expert in the automobile industry.
Answer: b) The first step should be to prepare a business case and come up with a business justification.
The market study may be a part of the business case preparation activity, but not necessarily so.
If there is already data available about the target market, then the market research may not be required.
Also, establishment of a joint venture may or may not be desirable and seems a bit presumptive, when the program is still in the evaluation stage.
For similar reason, issuance of a program charter is a little premature. The business justification needs to be created first.
- Project A and Project B are part of a program. Project B depends upon the output of Project A’s deliverable and has been delayed. What should the program manager do?
Work with the manager of project A to complete the deliverable as soon as possible
Work with the manager of project B to mitigate the impact of the delay to the extent possible
Analyze the impact of the delay on the ability of the program to deliver the benefits
Understand the impact of the delay on the overall program schedule
Answer: c) The program manager should focus on the benefits that are expected from the program rather than on individual projects or specific aspects of the Scope, Cost, and Time equation for the program.