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A project manager is preparing two documents for risk management. One contains sources of overall project risk and also summary information on individual risks. The second describes individual risks identified. What name should the project manager give to the first document?

A company has to make a choice between two projects, because the available resources in money and kind are not sufficient to run both at the same time. This benefit would be achieved immediately after the end of the project. The second project would be the development of a new product which could produce the following net profits after the end of the project: 1.

A production process has been defined as part of an industrial equipment manufacturing project. The process is intended to produce steel bolts with a length of 20 cm. The control limits are The measurements made at the end of the process yielded the following results: What should be done? The process is under control. It should not be adjusted. The process should be improved. The control limits should be adjusted. The measuring equipment should be recalibrated.

Your project management team includes two external consultants each from a different company. You found that repeated conflicts between the two consultants already slow down project progress and jeopardize achievement of objectives. Which stage of team development can be difficult to overcome in such a situation? During a project, earned value analysis is performed, resulting in the following numbers: EV: ,; PV: ,; AC: , Which results are correct? A project manager spent some days to create a multi-page document, which he called project charter.

The document should have been issued by the project sponsor. The sponsor found the document outsized and asked for a condensed document. The authority level of the project manager Detailed control account and work package descriptions The business need that the project was undertaken to address High-level risks. A specific planning meeting During a documentation review When data precision is ranked After selection of diagramming techniques.

In order to speed up a project, you made a decision to fast-track a phase currently performed with five team members, and another one which was planned to begin in four weeks time with another five team members. Which of the following activities should you do first? Make sure that all exit criteria of the consecutive phase have been met to ensure the flow of communications in a team situation which is more complex by a factor of 2.

Make sure that all entry criteria of the previous phase have been met by planning and performing a phase gate meeting to assess technical aptness.

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Make sure that all exit criteria of the previous phase have been met by planning and performing a phase gate meeting to assess technical performance. Restructure your team and delegate tasks in order to ensure the effective flow of communications in a combined team that requires increased coordination efforts. A project manager has been asked to support an internal project request by developing a business case.

What kind of information is the person expected to provide in the document? The detailed information from a project management standpoint to determine whether the project will be successful. The detailed information from a technical standpoint to determine whether the project will be successful. The necessary information from a business standpoint to determine whether the project is worth the investment.

At that time the project was behind schedule and on budget. The project's deliverables have all been finished. The project came in behind schedule but on budget.

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The project came in ahead of schedule but on budget. The project came in on schedule but over budget. Which should be included in a requirements management plan? It should describe how requirements activities will be planned, tracked, and reported. It should trace high-level requirements to more detailed requirements. It should trace requirements to business needs, opportunities, goals, and objectives. Quality audit Deliverable inspection Fixed price contract Service level agreement. With your team you are using judgment from subject matter experts early during initiation to discuss perceived project risks.

There is a number of experts from different disciplines available. You want to create a conversational setting to allow them to discuss their different views on the project and its risks. What should the project manager do? Try to find some productive work for these staff members in the project and leave them on the team. The best thing is to do nothing. The customer will not realize the problem anyway. Try to find a responsible person for the over-assignment who can be made accountable. Take the two people off the team immediately and arrange for the refund of the excess charges to the customer.

Start dates in the following network logic diagram are defined as early morning, finish dates are evening. If tasks are scheduled to begin at early start date, what is true? Activity B has a free float of 10 d. Activity B has a total float of 10 d. Activity A has a free float of 10 d. Activity A has a total float of 10 d. Your project is executed with a globally spread virtual team. The project progress has been found to be too slow.

Which measure is most likely to immediately help team members act as a team and speed up the project? Describing the needs of the project in sufficient detail to enable vendors to make suitable proposals based on each one's specific strengths Specifying attributes of the requested deliverables in detail to get identical bids from vendors and allow selection using the "Least cost method". Helping to clarify the approved project scope statement and giving guidelines to break it down into the WBS and the WBS dictionary of the project Developing the risk management plan and the risk reports from those risk management reviews which have been made so far eith the vendors.

Which of the following becomes increasingly important in a virtual team environment? You are assigned as the project manager to a project which is executed for a customer under FP contract. Your customer informed you this morning that they insist on certain "refinements" of the project scope. They consider them clearly part of the contractual price and require implementation without extra costs or delays.

You agree that the requested actions will be beneficial to the project, but believe that they constitute a major change increasing the project scope. What should you do next? Accept the request of the customer. Diligently document the additional costs and working hours spent by yourself and the team on the implementation of the change and invoice these to the customer at appropriate rates. Perform earned value analysis to assess the current status of the project and get all the numbers you need to communicate the case to the change control board which then will have to make the best decision regarding the customer request.

Check the contract, the project charter, the scope statement and other documents related to the project and the legal relationship. Implement ADR alternative dispute resolution procedures if the conflict cannot be resolved otherwise. Talk to the project sales department and find a joint solution with them how to best reject the request considering the commercial and strategic value of the customer to the organization you are working for.

A prime contractor in a customer project under CPFF contract has run into unexpected technical problems through no fault of their own. Fixing these problems will require a lot of additional work to be done. The company made a decision to book more staff and equipment from their subcontractors in order to increase productivity and adhere to the agreed timeline. The overhead work for the project is reimbursed by the customer with the fixed fee and will remain unchanged.

The customer agreed to this decision. What will most likely happen? A project management team is evaluating the causes that might contribute to unsatisfactory performance and quality. They are discussing the influence of common causes also called random causes and special causes. Which of the following statements should they use as a guidance to identify the types of causes of the problems found? Special causes are generally easier to predict and cope with than common causes.

Normal process variation is attributable to common causes that are part of the system. Common causes are unusual, fleeting events, which are difficult to foresee and often produce outliers. Processes can not be optimized to limit the bandwidth of variations due to common causes. The Project Management Office PMO of your company is performing a project management audit in your company and find that most of the various plans in the project are neither consistent nor up-to-date. Which of the following statements is true?

Projects should never be executed without a valid, updated and working project management plan. The consistency of the various plans is secondary because it is only the results that matter. The alternatives to systematic planning are reactive management, crisis management, conflict management, and fire fighting.. Poor planning and insufficient updating of project management plans are rather uncommon as reasons for cost and time overruns.

Together with your project management team in a project to build a state-of-the-art power station, you want to perform active risk acceptance in your project. What should you do? Create contingency reserves in resources, money and time. Develop a plan to minimize impact in case that an identified risk occurs. Develop a plan to minimize the probability of occurrence for identified risks. Make additional resources available to speed up the project. When do bidder conferences normally take place? After the contract has been awarded to keep alternatives open. After submission of bid or proposal, but before contract award.

Prior to the submission of a bid or proposal by the bidder. After technical meetings with bidders to discuss contract requirements. What is defined by control limits? A measuring instrument solely used to describe process capability. The limits of the six sigma area on either side of a control chart to plot measured values; data found outside the area are out of specification and can lead to rejection of an entire batch.

The area on either side of a mean value of a control chart to plot measured values found in statistical quality control. Plots outside the area signal possible process instability. Scope statement, WBS with work packages and planning packages, WBS dictionary Cost baseline, quality baseline and schedule baseline Configuration management plan and configuration identification document Procurement statement of work and project scope statement. Activity 1 has a duration of 20 days, activity 2 of 10 days, activity 3 of 5 days and activity 4 of 6 days.

What is the minimum total duration between the milestones A and B? Nominal group technique Human resource assignment Brainstorming Expert judgement and decomposition. What kind of behavior do project managers refrain from? Which of the following statements is not true? Attribute sampling is the process of assessing whether results conform to specifications or not. Prevention means keeping errors out of the process by applying actions before the process starts changing its input. Variables sampling means that the result is classified into one of the 3 categories: "acceptable" - "acceptable after rework" - "rejected".

Inspection is often mainly done to keep errors out of the hands of the customer as an activity of process control. Which statement describes best why you should document assumptions? Assumptions might prove to be wrong. Assumptions recorded in the assumptions log may help identify individual project risks during risk identification. Assumptions limit the project management team's options for decision making because they can not be controlled by the team. In case of schedule or budget overruns, the documentation of assumptions supports a clear assignment of responsibility.

Which is normally not regarded as an element of cost of quality? Prevention costs Maintenance cost Appraisal costs Failure costs. You have recently been assigned as a project manager to a new B-O-T build, operate, transfer capital project. Your company will invest in public infrastructure today, then make profit from operating the infrastructure over 30 years, after which it is handed over to the government.

Reviewing the initial documentation you found out that the business case has been calculated with a very small margin during operations of the infrastructure. As you are not responsible for lifecycle costing, you don't have to worry about operation profits. Focus on project costs from initiation through handover. Create a realistic plan broken down to a sufficient level of detail. Perform all risk management processes.

Ensure real-time communications with all relevant stakeholders. Develop a plan to immediately leave the company, when the first signs occur that it may not survive the questionnable business case and go insolvent. A project is managed by departments of an organization and expedited by a project coordinator. Which of the following statements is most likely to be true?

The performing organization is a weak matrix. The performing organization is doing "management by projects". The performing organization is a strong matrix. The performing organization is projectized. You are project manager in a global project with a team consisting of people from various countries. What can you try to prevent misunderstandings due to cross-cultural differences? Use all communication methods available that are suitable for the team and follow up in writing when communicating verbally.

Remember that cultural and individual diversity may help project teams solving unforeseen problems during the course of the project. When you are about to form a team for your project, keep in mind that some cultures are developed, others are more primitive. Some have values, some not. You should consequently avoid choosing members from countries with cultures that are not similar to your own. Cultural dilemmas can prevent any project from being successful. They should therefore be smoothed or suppressed so as to make sure that they cannot disrupt project work.

Your effort should concentrate on communication that can help reach that goal. As norms regarding communication habits differ significantly across various cultures, communicating between people from different countries should only be done using written or verbal language. The nonverbal dimension simply bears too many risks. Which statement on conflicts is true? Conflict resolution should focus on people, not issues. A project manager should resolve conflicts in a timely and constructive manner. Conflict should always be resolved in private and not in the team.

Too much openness to stakeholders is a common cause of conflict. A change request in a project has been rejected some weeks ago. Yesterday, the project manager found out that it nevertheless has been implemented by team members, who had originally requested the change and therefore knew of it, but not of the rejection. What is a trigger in project risk management? An expected situation causing an unidentified risk to occur A warning sign that a previously identified risk might be occurring or has occurred An unexpected situation causing an identified risk to occur An unexpected situation causing an unidentified risk to occur.

According to the project plan, a contractor is scheduled to deliver some software components today afternoon. A regular monthly payment is due to be made to this contractor tomorrow. What should you do right now? You should delay the payment also for 2 weeks. You must immediately find and change to a different contractor. You should consult with the contractor to understand and possibly resolve the delivery issues. This may influence further payments. You should make the payment and reschedule the project incorporating the delay. In a software company a large number of simultaneously performed projects utilize the same groups of human and other resources from a corporate resource directory.

What is the term commonly used for the resources inside the directory? Unassigned staff Project team Resource pool Program team. What does the acronym RACI commonly stand for in project management? You have used estimates made by your team members and applied the critical path method to compute a network logic diagram for your project.

Then you found out that it cannot be sufficiently optimized for scarce resources and fast progress towards a given deadline. Apply resource leveling and smoothing heuristics to uncritical activities only. Reduce estimates on duration and work efforts by an adequate percentage. Search for opportunities to compress the schedule without jeopardizing the project. Liquidated damages LDs are contractually agreed payments in order to Together with your team, you are writing a risk management plan. In the team, discussions are occurring what should be covered by the plan and what not. Roles and responsibilities for managing project risks Timing of project risk management processes and activities The methodological approach used for risk management Individual risks and potential responses to them.

You a re assigned as the project manager to a project which had a one-time cost variance in the past caused by unexpected rework which has meanwhile been finished. What is right? An estimation has been made for a construction project that the construction of a residential home will cost a certain amount per square foot of living area. This is an example of what type of estimating?

Analogous estimating Bottom-up estimating Top-down estimating Parametric estimating. What is true for prototypes? Prototyping causes significant costs and should be avoided wherever possible. They are tangible and allow for early feedback on requirements by stakeholders. Prototypes are mostly developed toward the end of a design or build phase. Prototypes increase the risk of misunderstandings between developers and users.

Constructive changes are a common source for conflicts between customers and contractors in projects under contract. What is a constructive change? A change request that helps improving the project and its product, service, or result and could be generally discussed in a friendly style. A direction by the buyer or an action taken by the seller that either party may post hoc consider an undocumented change.

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A field change or ad-hoc change mandated by the project customer in a public construction project. A change request which will lead to the re-construction of an older version of the project performance baseline by the contractor. Which of the following is generally not regarded to be a motivator according to Frederick Herzberg? What is true for modern project management? Project managers need You are the project manager in an engineering project and have recently signed a contract with a software vendor for the development of a complicated control solution as a contractor of your project.

The software will be used to control machinery equipment which your project team is currently developing. The contract is a lump-sum contract. The contractor has a cost target based on estimates, which seem rather low to you. Which of the following statements is NOT true for this situation? It is the contractor's risk in this type of contract that their profit may vanish if costs have been underestimated. This form of contract should only be chosen when all requirements on the contractor's product are well-understood by all parties involved. In a fixed-price contract, change requests can require adaptations to price, schedule and other contractual items for the changes to be applied.


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  4. It is likely that your organization may have to assume any unexpected additional costs for the software development that occur. Which of the following is true regarding the code of accounts? It allows a project manager to easily identify the breakdown level of the item in the resource structure. It describes the coding structure used by the performing organization to report financial information in its general ledger. It is the collection of unique identifiers generally assigned to WBS items. It defines ethical behavior in the project and the responsibilities to the customer and the profession.

    You are the manager of your company's project management office. The company is running many concurrent projects; most of them share a resource pool of technical staff. Understanding how resources are utilized across projects has been found essential to overall project performance, including cost effectiveness and profitability.

    Ensure that quantitative information for all projects is made available in a uniform and reliable fashion and verify that the project management methodology is adhered to. Then consolidate the information to get an understanding of the problems and communicate them to management. Do nothing related to the described problem unless you are explicitly requested by the organizations upper management.

    Supporting decision making on the level on which project portfolio management is done, is not the project management office's business. Evaluate project management software which supports planning and scheduling across enterprise-wide project portfolios. Avoid managing the availability of shared enterprise resources for the projects run by an organization because this is not the business of a project management office.

    Objectives specified in far more detail than necessary for a execution of a successful project. Easily achievable objectives which help you reducing the pressure on yourself and the team. Objectives that should be achieved in order to attain formal recognition by both the customer and the project sponsor. Objectives that are described using specific, measurable, assignable, realistic and time-related specifications.

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    You have been assigned as a project manager to a software project. While you and your team are working on a WBS work breakdown structure , estimates for activity durations are already made. These are based on a preliminary activity list and vary significantly, obviously as the team members have different concepts of the work that needs to be done. Which additional documents may help you clarify work requirements in this situation? Final project schedule. Project schedule network diagrams and human resource plan.

    Activity cost estimates and scope baseline. Activity attributes and project scope statement. You are performing earned value technique on your project. In this case, which is the best formula to calculate EaC Estimate at Completion? During a company event, you had the opportunity to talk to a colleague project manager.

    What do you think? The information given to you by the colleague is not sufficient to assess project performance. The project will probably be completed with total costs remaining under budget until the end. A significant cost increase during the further course of the project will probably bring the costs back to baseline level. Original cost forecasting and budgeting for the project must have been poor to allow this variance.

    What is the meaning of Jerry B. Harvey's concept called the "Journey to Abilene"? Project managers should visit their customers far more often than what is usual in order to avoid misunderstandings and bad emotions. International projects may have an increased need for traveling which can lead to additional costs and troubles with time zones. Group decisions can have the paradox outcome, that a decision is jointly made or approved that is not desired by any of the group members.

    A project is a temporary endeavor undertaken to create a unique product, service or result. Repeating it would be similar to making the same journey twice. Which of the following statements describes best the relationship between project phases and the project life cycle?

    The project life cycle includes the time when the project is performed and the expected product lifespan after that. In project management, a sequence of project phases and phase gates is often referred to as project life cycle. The project life cycle is regarded as a sequence of project activities while phases are defined to control overlapping activities.

    The project life cycle describes how iterations of project management processes are used when a project schedule is developed. Project SOW statement of work , 2. Project charter, 3. Project scope management plan, 4. Project scope statement, 5. Work breakdown structure, 2. Scope statement, 3. Project charter, 4. CSOW contractual statement of work , 5. Contractual work breakdown structure 1. Feasibility study 3. Contract, 4. CWBS contractual work breakdown structure , 5.

    Scope of work descriptions, 6. PID project initiation document. BOM Bill of materials , 2. CAP control account plan , 3. Project charter 4. Change management plan, 5. Scope baseline. What is the S-curve in project management? A graph that is generated if a normal curve is integrated. A graph that is to be integrated to generate a normal curve. A metaphoric description of the short term uncertainties that are present in every project.

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    The graph that describes the typical growth of earned value during the course of the project. Verification that the configuration identification for a configuration item is accurate, complete, and will meet specified program needs. Ensuring that proposed and approved changes to configuration items are fully documented. Managing and controlling the frequently requested changes to a project by applying agreed upon rules.

    Which statement describes best the meaning of the term cost baseline? A cost baseline is always created by translating time-phased cost information into cost data on activity or work-package level. A cost baseline is an approved time-phased budget that will be used to measure and monitor cost performance on the project.

    Data to draw a cost baseline can be easily generated and updated as necessary from information related to actual project cost. A cost baseline is usually displayed in the form of an inverse S-curve drawn from the beginning of the project until data date. It defines the cumulated net income from an investment at a given point in time or during a defined period. It is most commonly stated as a percentage of the investment or as a dimensionless index figure. It is the time when cumulated net income is equal to the investment. Changing team assignments during late course of a project typically increases time efficiency.

    Which of the following statements describes best the relationship of quality and grade? Low grade is always a problem; low quality may be overcome by a good rework and repair process. Grade is a category or rank given to entities having different functional requirements but the same need for quality. Both quality and grade can often be improved through intelligent measuring, testing and examining. Low quality is always a problem as it bears on the ability of an item to meet requirements; low grade may sometimes be acceptable.

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    Requirements are elaborated repeatedly. Requirements are developed upfront and kept static. Requirements are developed during the course of the project. Change is constrained as much as possible. You have been asked to calculate the internal rate of return IRR of a project? What will you assess? The time period needed to pay back the investment from a project when future income is discounted. The inherent discount rate or investment yield rate produced by the project's deliverables over a pre-defined period of time.

    The rate of negative risk that can be accepted for a project without turning the expected net present value negative. Activity E is open ended a "dangle" in relation to the finish milestone path convergence. Activity F is open ended in relation to the path divergence after the start milestone. Activities E to F need another task drawn as a hammock to calculate level of effort. Plan more risk management. Monitor risks. Allocate contingency reserves. Identify further risks. Which title will the project manager probably give to the document?

    All differences in local laws can be overcome with clear contract language. Local culture and laws may have influence upon the enforceability of a contract. The use of contracts with appendices and annexes should generally be avoided for projects. What documents could become part of the project management plan?

    Resource calendars and project schedule Management plans and baselines Lessons learned register and quality report. Resource management plan. Applying Earned schedule technique, what are the performance data of the project? SV: What is this list referred to? Which of the following statements is correct? What should the team do next? Implement agreed upon risk response plans. Plan risk responses for each of the identified risks. Perform qualitative risk analysis to prioritize the risks. Perform quantitative risk analysis to numerically analyze risks.

    What is true for strategies that can be used for individual risks? They differ fundamentally from those used for overall risk. They can also be used to respond to overall risk. Only responses for threats can also be used for overall risk. Only responses for opportunities can also be used for overall risk.

    What should the team members take care of next? Action should be taken to actually respond to the risks after their occurrence. Action should be taken to respond to individual risks only. Overall risk can be escalated. Action should be taken to actually respond to the risks in a proactive fashion. The contractor should regard the requirements laid down in the CSOW as the only binding ones and focus solely on meeting them during the project. What would be good decision?

    All risks should be agreed upon to be managed by the contractor, who after all gets paid for managing them. Risks should generally remain with the customer to reduce the costs of outsourcing for the project. Each risk should be accurately allocated to the respective party that is most capable of managing it.