PMP Study Questions Flashcards
(255 cards)
PMI has an established talent triangle that reflects the skills needed by today’s project professionals. This component of the talent triangle focuses on critical interpersonal skills needed to influence, inspire change, and build relationships.
A) People Skills
B) Power Skills
C) Ways of Working
D) Business Acumen
B) Power Skills
Which of the following are examples of OPAs? (Choose three)
A) Project document templates from other projects
B) Standard operating procedures
C) Trade forums that keep an open communication about the profession
D) Governmental regulations establishing requirements
E) Organizational repository with lessons learned from past projects
A) Project document templates from other projects
B) Standard operating procedures
E) Organizational repository with lessons learned from past projects
Which of the following are examples of EEFs? (Choose three)
A) Economic Environment
B) Past Projects
C) Political climate
D) PMO Support
E) Project Management Info
A) Economic Environment
C) Political climate
E) Project Management Info
Which of the following are frameworks or prompts that can help to understand external factors that can introduce risk, uncertainty, or provide opportunities and affect the value and desired outcomes of a project? (Choose 3)
A) PESTLE
B) EVM
C) TECOP
D) VUCA
E) OPA
A) PESTLE
C) TECOP
D) VUCA
Project A is expected to last five years and has a NPV of $500. Project B is expected to last five years and has a NPV of ($600). Which project should be selected?
A) Project A because the costs are minimal and the project will yield a larger return
B) Project A because the value of the project is $500.
C) Project B because the cost is only $600.
D) Project B because the value of the project is $600.
B) Project A because the value of the project is $500.
Explanation: The time and costs are part of the NPV calculation and not provided in the scenario above. So the larger positive dollar amount is the better choice. A profitable project is one where the NPV is positive. Project B is a negative dollar amount. NPV= Cash flow / (1 + i) t – initial investment
A company’s contracting office is evaluating an request for proposal from a potential customer for a firm fixed price contract. They are not sure if submitting a proposal is a good financial decision because the contract would require a very complex project with a 5 year timeline. The contracting office realizes that the time-value of money is important to consider as well as project costs. Which method would be best for making a good financial decision?
A) Business Case
B) A/B Testing
C) Decision Tree Analysis
D) Net Present Value
D) Net Present Value
Explanation: Net present Value (NPV): NPV is a difference between the present value of cash inflow and the present value of cash outflow after a given period. To calculate the NPV you should know the time period of project and discount rate (required rate of return). NPV is very useful to check profitability of particular project. NPV can also be used to compare more then one project and find which one is the best. It helps to make the decision to either invest or not.
The PM of an agile project nearing it’s first release after several iterations has just been notified by the customer that they are not sure they can accept the deliverables in their current state. They say that some of the items from prior iterations did not meet their expectations. What could the project manager have done better to help prevent this?
A) Communicated to the customer the importance of their involvement during sprint reviews.
B) Collect the requirements early and upfront so the details of the project were well understood.
C) Determine the cost benefit analysis of the project to ensure the project was worthwhile.
D) Conducted A/B Testing to ensure the project met future customer needs.
A) Communicated to the customer the importance of their involvement during sprint reviews.
Explanation: The project has undergone several iterations and is about to release. The opportunity for customer feedback is during the sprint review. Communicating the importance of feedback to the customer so they understand their involvement is necessary to meet the project goals would have helped to prevent this from occurring.
Your organization has just completed a feasibility study to determine the types projects that they should undertake based on financials, organizational capabilities, and past successful projects. They have assigned a sponsor and some key members to a team to develop a project charter for an upcoming capital project. Which of the following source documents should they reference as the complete the charter? (Choose 2)
A) Project Management Plan
B) RFP
C) Business Case
D) Business Need
E) Benefits Management Plan
C) Business Case
E) Benefits Management Plan
Explanation: Business Documents are used to help develop the project charter and are completed before the formal establishment of a project. There are two business documents that PMI outlines: The business case, and the benefits management plan.
Which of the following best describes the benefits management plan?
A) A document to determine what the project undertaking should be and how it should be done.
B) A document that describes who will benefit from the project and when the benefits should be realized.
C) A document that formally authorizes the project and is signed by the project sponsor.
D) A document that determines the budget and benefit of the project so business decisions can be made.
B) A document that describes who will benefit from the project and when the benefits should be realized.
Explanation: BENEFITS MANAGEMENT PLAN - The documented explanation defining the processes for creating, maximizing, and sustaining the benefits provided by a project or program. It also describes how and when the benefits of a project will be derived and measured. Both the business case and the benefits management plan are developed with the benefits owner prior to the project being initiated. Additionally, both documents are referenced after the project has been completed. Therefore, they are considered business documents rather than project documents or components of the project management plan.
The quarterly results demonstrate that competition is driving down prices. The company is losing market share, and it appears that the sponsoring unit will not see a return on their investment midway into the project. Which two steps should the project manager take to accommodate these new circumstances? (Choose TWO).
A) Re-scope the project to deliver the same features as the competitors to match their pricing.
B) Make a cost/benefit analysis of deliverables to optimize delivery cost and speed.
C) Fast-track the remainder of the project to deliver the intended scope with lower overhead costs.
D) Incrementally replace local staff with outside expert staff who can work at half the hourly rate or less.
B) Make a cost/benefit analysis of deliverables to optimize delivery cost and speed.
D) Incrementally replace local staff with outside expert staff who can work at half the hourly rate or less.
Explanation: Cost/benefit analysis and fixed-budget incremental development are correct because they address the loss of profitability without disruption to business.
Your organization is in the midst of a major change initiative, and you have been tasked with leading a team responsible for implementing the new strategy. You have been studying Kotter’s eight-step theory of change and have identified that your team is currently in the “Create a Sense of Urgency” step. However, there are some members of the team who are hesitant to fully commit to the change. What is the best course of action for addressing the team’s reluctance to fully commit to the change?
A) Ignore their concerns and continue moving forward with the change initiative
B) Address their concerns by clearly communicating the potential benefits of the change and how it aligns with the organization’s overall goals
C) Use fear tactics to convince them to support the change
D) Agree with the team and ask the team to help identify a better solution
B) Address their concerns by clearly communicating the potential benefits of the change and how it aligns with the organization’s overall goals
Explanation: According to Kotter’s theory, creating a sense of urgency is the first step in successfully implementing a change initiative. However, it’s important to remember that not everyone may be on board with the change right away. By clearly communicating the potential benefits of the change and how it aligns with the organization’s overall goals, you can help to address any concerns and build buy-in from the team. It is not recommended to ignore their concerns or to use fear tactics as it can cause more harm than good.
You are a project manger for a company that is experiencing difficulty in aligning its strategy, structure, systems, shared values, skills, staff, and style. Your team has identified that the main problem is a lack of clear shared values and alignment within the organization. What should be the first step in addressing the problem?
A) Re-structuring the organization’s hierarchy
B) Implementing new systems and processes
C) Developing a clear set of shared values and aligning them throughout the organization
D) Focusing on improving the skills of the staff
C) Developing a clear set of shared values and aligning them throughout the organization
Explanation: According to McKinsey’s 7S model, shared values are one of the core elements that drive organizational alignment. By having a clear set of shared values, the organization can align its strategy, structure, systems, skills, staff, and style to support these values, and improve overall performance. Re-structuring the organization, implementing new systems and processes, and focusing on staff skills will only be effective if they align with the company’s shared values.
You are a consultant working with a company that specializes in manufacturing products using eco-friendly materials. The company has been struggling to increase its profits and has asked for your help in improving their operations. Which of the following changes would be the most effective in increasing the company’s profits?
A) Implementing a new production line that uses more efficient machinery
B) Offering discounts on products made with eco-friendly materials
C) Introducing a new product line that is made with recycled materials
D) Providing training to employees on how to improve their productivity
A) Implementing a new production line that uses more efficient machinery
Explanation: A would be a first-order change as it addresses the company’s operations directly and has the potential to increase production efficiency and lower costs, leading to an increase in profits.
An organization is undergoing a major change in their business structure, moving from a centralized to a decentralized model. This change will impact the way projects are managed and executed within the company. How will the organizational change from centralized to decentralized affect the current project you are working on?
A) The project will be delayed due to the need for re-planning and re-organization.
B) The project will not be affected and will continue as planned.
C) The project will be completed faster due to the new decentralized model.
D) The project will be cancelled due to the organizational change.
A) The project will be delayed due to the need for re-planning and re-organization.
Explanation: The project will most likely be delayed as the change in structure will require teams and project managers to adjust their approach to project management.
A government agency is in charge of managing several projects related to infrastructure development. Recently, the agency’s leaders have announced a shift in priorities, prioritizing projects related to renewable energy over those related to traditional infrastructure development. You are the project manager of a renewable energy project. How may this change in program priorities affect the resources available for projects within the agency?
A) Resources will increase as funding is redirected towards renewable energy projects.
B) Resources will decrease as funding is redirected away from traditional infrastructure development projects.
C) Resources will remain unchanged as funding for all projects comes from the same budget.
D) Resources will be redistributed among the different projects, but not necessarily increased or decreased overall.
A) Resources will increase as funding is redirected towards renewable energy projects.
Explanation: The shift in priorities may mean that resources are redirected away from traditional infrastructure development projects and towards renewable energy projects, leading to a decrease in resources available for traditional infrastructure development projects.
Your company has recently undergone a change in management and the new leadership team has shifted the company’s priorities to focus on developing new products rather than improving existing ones. As a result, your current project, which was focused on updating an existing product, has had its resources and budget significantly reduced. How should the project manager respond to this change in program priorities and resource allocation?
A) The project manager should continue with the project as planned, and request additional resources and budget from the new leadership team.
B) The project manager should propose a new plan for the project that aligns with the company’s new priorities and work to secure the necessary resources and budget.
C) The project manager should scrap the project altogether, as it is no longer in line with the company’s priorities.
D) The project manager should continue with the project as planned and rely on team members to make up for the reduced resources and budget through overtime and increased efficiency.
B) The project manager should propose a new plan for the project that aligns with the company’s new priorities and work to secure the necessary resources and budget.
Explanation: The project manager should respond to the change in program priorities by developing a new plan for the project that aligns with the company’s new priorities and objectives. This includes proposing new goals, strategies and tactics that align with the company’s overall direction and communicating these changes to stakeholders. It is also important for the project manager to work on securing the necessary resources and budget to support the new plan, which may involve seeking external funding, partnerships or other financial options. Continuing with the project as planned or relying on team members to make up for reduced resources and budget may lead to delays, budget ove uns or even project failure.
The new shopping center project will take three years from design through construction to complete. You are new to the term “governance” and you want to test yourself to confirm that you have a solid understanding of it. Which of the following best represents the definition of governance?
A) A set of practices to help assure the success of the project.
B) Phase-to-phase relationships within the project.
C) The PMO directive on managing the project.
D) The sponsor’s directive on managing the project.
A) A set of practices to help assure the success of the project.
Explanation: Governance is an organizational structure placed on projects to ensure that they align with business objectives and align with portfolios and programs. These practices help assure the success of projects by establishing things such as gates to ensure assumptions and expected value are correct.
As a project manager you know it is important to get the deliverables right. This is especially important in a phased project. In a phased project, you know that a phase output is typically:
A) Used for marketing purposes.
B) An input to the next phase.
C) Used by the project manager to justify an increased budget from the sponsor.
D) Not important as long as the final deliverable meets the customer’s needs.
B) An input to the next phase.
Explanation: It is important to have a quality deliverable as the output of each phase because it is generally an input to the next phase. Othe wise, issues from phase to phase will snowball over time.
The new shopping center project will take three years from design through construction to complete. You are new to the term “governance” and you want to test yourself to confirm that you have a solid understanding of it. The decision point to move from one phase to another is known as which of the following (Choose three.)
A) Kill point
B) Go/No go
C) Phase gate
D) Phase endpoint
E) Continuance threshold
F) Governance Gate
A) Kill point
C) Phase gate
F) Governance Gate
Explanation: Kill point, Phase Gate, Governance Gate, and Tollgates are all interchangeable terms, a quality gate is a specific type of phase gate that is used to determine if the anticipated quality is being met or exceeded usually specifically to software development.
The new shopping center project will take three years from design through construction to complete. You are new to the term “governance” and you want to test yourself to confirm that you have a solid understanding of it. Which of the following describes the most common phase-to-phase relationship in multi-phase projects?
A) Finish-to-start
B) Sequential
C) Orderly
D) Non-overlapping
B) Sequential
Explanation: Project phases are either planned sequentially or overlapping.
You are the project manager for a multi-phased project. Phase gates have been established between each phase of the project. Your project team asks you what the importance of the phase gates are. As the project manager what will you tell your project team?
A) Phase gates are review points at the end of a phase in which a decision is made to continue to the next phase, to continue with modification(s), or to end a project or program.
B) Phase gates are the points in a project where the sponsor injects additional funds into the project.
C) Phase gates are performed in an agile project at the end of each iteration to receive feedback before moving to the next iteration.
D) Phase gates are milestones mandated by an industry as checkpoints for compliance with industry standards.
A) Phase gates are review points at the end of a phase in which a decision is made to continue to the next phase, to continue with modification(s), or to end a project or program.
Explanation: Phase gates (also called governance gates, tollgates, or kill points) are review points at the end of a phase in which a decision is made to continue to the next phase, to continue with modification(s), or to end a project or program. They’re used to check if each phase has fulfilled the exit criteria and is eligible to move to the next step.
Which of the following best describes a Quailty Policy?
A) A list of organizational resources used for quality and a defined project scope of work that will be used to ensure quality.
B) The basic principles that should govern the organization’s actions as it implements its system for quality management.
C) It ensures all compliance requirements will be met, tracked, and validated before customer delivery.
D) It is a set of policies and procedures to ensure that defects are never produced.
B) The basic principles that should govern the organization’s actions as it implements its system for quality management.
Explanation: A quality policy is the basic principles that should govern the organization’s actions as it implements its system for quality management. If a quality policy does not exist, then it should be established within the quality management plan. The quality management plan is a component of the project or program management plan that describes how applicable policies, procedures, and guidelines will be implemented to achieve the quality objectives. B is the BEST answer
A recently approved project is conducting a review of requirements when a project team member learns that there is a new compliance requirement from a recently passed law that may impact the baseline assumptions made in the business case for the project. How should the project manager proceed?
A) Research the requirement and possible consequences, then give the sponsor a recommendation.
B) Address the requirement through the creation of a quality management plan.
C) Decline to address the issue, as the new requirement is not part of the project’s documented charter.
D) Acknowledge the requirement by documenting it in the risk register, then ask all stakeholders for guidance.
A) Research the requirement and possible consequences, then give the sponsor a recommendation.
Explanation: Before any action is taken, the project manager must determine the impact of the the change. Once the impact is understood, the project manager should refer to the project sponsor since it is an item that would possibly impact the approved project charter.
A project has multiple security related compliance requirements that must be tracked and monitored during multiple phases of a project. How should the project manager plan to meet this requirement?
A) Create a security plan and ensure that it is checked regularly by the development team.
B) Arrange for cyclical reviews of security compliance and recommend remedial steps if noncompliance is found.
C) Require that all security related compliance requirements be reviewed by the project manager to ensure compliance.
D) Hire a new resource in charge of compliance to ensure these requirements can be met.
B) Arrange for cyclical reviews of security compliance and recommend remedial steps if noncompliance is found.
Explanation: Compliance and quality related reviews a should be conducted on a predictable cyclic timeline to ensure items are not missed.