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Project Management Exam Insights

The document contains explanations for 22 questions related to project management concepts and processes. Key points addressed include defining critical path, float, and critical chain. Scope creep is discussed in relation to customer obsession. The importance of transparency when delays occur and notifying stakeholders is emphasized. Predictive and iterative approaches are compared. Earned value, variance, and performance indexes are explained in the context of project status.

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Dario D'Ambruoso
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0% found this document useful (0 votes)
24 views6 pages

Project Management Exam Insights

The document contains explanations for 22 questions related to project management concepts and processes. Key points addressed include defining critical path, float, and critical chain. Scope creep is discussed in relation to customer obsession. The importance of transparency when delays occur and notifying stakeholders is emphasized. Predictive and iterative approaches are compared. Earned value, variance, and performance indexes are explained in the context of project status.

Uploaded by

Dario D'Ambruoso
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Ques%on 1 = A Explana%on: In a network diagram, the cri%cal path is the path with the longest

series of tasks (PMBOK 7th edi%on, page 238). Ac%vi%es that are not on the cri%cal path have some
float (also called slack) that allows some margin for delay without causing the delay or change of
the project end date. Free float is the amount of %me an ac%vity can be delayed without delaying
the early start of the immediate subsequent ac%vity. The cri%cal chain is also the longest path in
the network diagram, but unlike the cri%cal path, it takes into considera%on resource availability in
addi%on to technical dependencies.
Ques%on 2 = C Explana%on: Scope creep (also known as “feature creep” or “requirement creep”)
refers to the uncontrolled expansion of the project’s scope (PMBOK 7th edi%on, page 249).
Customer obsession consists of an excessive focus on providing a beZer customer experience by
mee%ng and even exceeding your client’s needs. However, customer obsession shouldn’t mean
delivering beyond scope since the laZer can increase the project schedule and cost, thus
decreasing the success rate of the project. The tackled situa%on is not considered gold pla%ng
since the client is the one who brought up the change request; it was neither the project manager
nor team members who added changes without the client’s approval, as gold pla%ng implies.
Ques%on 3 = B Explana%on: As soon as it becomes obvious that the project will be delayed, the
project manager should no%fy the client and present them with new alterna%ves. They should be
honest and transparent about delays. The ques%on includes the term "next", so the first thing that
the project manager should do before crea%ng a change request or upda%ng lessons learned is
meet with stakeholders to inform them about the situa%on. Under the RESPONSIBILITY sec%on of
the PMI%27s Code of Ethics and Professional Conduct, page 3: When the project manager
discovers errors or omissions caused by others, they should communicate them to the appropriate
body as soon as they are discovered. Under the HONESTY sec%on, page 6: the project manager
should provide accurate informa%on in a %mely manner.
Ques%on 4 = B Explana%on: The project manager is iden%fying stakeholders and analyzing their
level of influence. Although the project has been ac%ve for two months, it is recommended to
perform this ac%vity on a regular basis, especially when the project gets into a new phase.
Ques%on 5 = A Explana%on: Since requirements are fixed and deliverables will only be shipped at
the end of the project, then the project manager is using a predic%ve approach. The itera%ve
approach is also characterized by a single delivery (Agile Prac%ce Guide, page 18), but it has
dynamic requirements. Adap%ve and incremental approaches involve frequent small deliveries. In
the described scenario, payment installments are not linked to deliverables or itera%ons; it’s just a
payment op%on that has no influence or connec%on to the project development approach.
Ques%on 6 = B Explana%on: Earned Value refers to the value of the work accomplished to date
(PMBOK 7th edi%on, page 239). If the project gets terminated at this point, Earned Value will show
you the value that the project has produced. In this case, the project’s Earned Value (EV) is $40,000
= 40%25 of the value of total work. The amount of $60,000 represents the Actual Cost (AC). The
planned value is $50,000 (50%25 of the budget), while the cost variance is -$20,000 (EV - AC).
Ques%on 7 = D Explana%on: Unlike parametric es%ma%ng, the analogous es%ma%ng technique
uses expert judgment by comparing a par%cular ac%vity to a similarly completed one on a previous
project in order to determine its dura%on or cost. This means that the project manager should rely
on expert feedback, i.e., comple%ng a similar task in 14 hours.
Ques%on 8 = B Explana%on: The planned work is included in the lowest level of the WBS
components, known as work packages. Detailed informa%on on work packages, such as
descrip%ons, owners, prerequisites, successors, due dates, etc. is included in the Work Breakdown
Structure Dic%onary (PMBOK 7th edi%on, page 253).
Ques%on 9 = B, C Explana%on: Since it has a 7-day float, this ac%vity is not on the cri%cal path. The
float of this ac%vity can be calculated by subtrac%ng the Early Start (day 5) from the Late Start (day
12) or by subtrac%ng the Early Finish (day 10) from the Late Finish (day 17). Since the float of the
ac%vity is greater than zero, then it’s not on the cri%cal path. Remember that cri%cal path ac%vi%es
have zero float.
Ques%on 10 Explana%on: A. Construc%on work requires a building permit from the City council:
EEF B. Workers who don’t obey safety rules will be penalized: OPA C. Only authorized personnel
are allowed on site: OPA D. Workers have exper%se in infrastructure construc%on: EEF
Ques%on 11 = A Explana%on: The Management Reserve is a budget under “management control”
that is dedicated and used for risks that were not iden%fied during risk analysis, aka unknown-
unknowns (unknown = uniden%fied, unknowns = risks). On the other hand, a con%ngency reserve
is used for iden%fied risks with predetermined risk response strategies, aka known-unknowns
(known = iden%fied, Unknowns = risks) (PMBOK 7th edi%on, page 127). Addi%onal reserve and
buffer reserve are made-up terms.
Ques%on 12 = B, D Explana%on: Project deliverables can be products, services, or any other type of
outcome. In a predic%ve approach, project deliverables should be determined, described, and
agreed upon as early as possible in the project, to avoid any costly changes later on. Acceptance
criteria should also be described and agreed upon. The change is possible and should follow the
change request process.
Ques%on 13 = B Explana%on: Lag Time is when a delay is purposely made between ac%vi%es. Lead
%me, on the other hand, is the %me saved by star%ng an ac%vity before its predecessor is
completed. Crashing and fast-tracking are two schedule compression techniques.
Ques%on 14 = B, C Explana%on: This is an example of finish-to-finish mandatory dependency. Two
tasks may in fact run concurrently in the case of a finish-to-finish dependency. However, the
second task can be en%rely completed only aper the first task is 100%25 done. Mandatory
dependencies are those that are legally or contractually required or inherent in the nature of the
work (PMBOK 7th edi%on, page 60).
Ques%on 15 = A Explana%on: The project manager must discuss the impact of the change request
on the project cost with the client. They cannot process the change request unless the client
understands and accepts its impact.
Ques%on 16 = A, B Explana%on: Predic%ve methods focus on thoroughly analyzing and planning
the future while taking into account known risks. The scope, %me, and cost are all predetermined
early in the project life cycle. Predic%ve teams open establish a Change Control Board (CCB) to
ensure that only valuable changes are considered for implementa%on.
Ques%on 17 = B Explana%on: Since the project manager didn’t assign the team members himself,
then the organiza%on must be func%onal. In this case, it is best to talk with func%onal managers
and nego%ate clear and wriZen assignments with reliable scheduling priori%es. It is the
responsibility of func%onal managers, not the project sponsor, to manage staff assignments. The
project manager, on the other hand, should provide a resource calendar to make sure that
func%onal managers are aware of when and what resources he needs for his project. Adjus%ng or
crashing the schedule without tackling the source of the problem is not the right course of ac%on.
Besides, crashing the project requires adding more resources, which is beyond the project
manager’s authority in a func%onal organiza%on.
Ques%on 18 = A Explana%on: A Rough Order of Magnitude Es%mate (ROM es%mate) is an
es%ma%on of the needed effort and cost to complete a project. A ROM es%mate is performed very
early in a project’s life cycle; during the project selec%on and approval period and prior to project
ini%a%on in most cases. The order of magnitude during the ini%a%on phase has an accuracy range
of -25%25 to 75%25 (PMBOK 6th edi%on, page 241).
Ques%on 19 = C Explana%on: Cost and schedule baselines are used to assess performance in the
monitoring and controlling phases.
Ques%on 20 = C Explana%on: Resource leveling is used to op%mize resource alloca%on by adjus%ng
the ac%vi%es’ start and finish dates. This open results in changing the original cri%cal path, as was
the case in the described scenario; the carpenter is a scarce resource for the project and her
availability is constrained, which led to extending the project schedule to manage this limita%on.
Resource smoothing, on the other hand, is performed to achieve a more consistent resource
u%liza%on over a period of %me. Resource loading is the total assigned hours of work divided by
the number of hours you have to do the work. Load balancing is common in compu%ng and it
refers to the process of distribu%ng a set of tasks over a number of resources with the aim of
speeding up the overall data processing.
Ques%on 21 = D Explana%on: The WBS is a hierarchical decomposi%on of the total scope of work to
create the required deliverables (PMBOK 7th edi%on, page 81). The planned work is included in the
lowest level of the WBS components, which are called work packages. Product breakdown is a
product analysis technique (PMBOK 6th edi%on, page 153). The product roadmap demonstrates
the an%cipated sequence of deliverables throughout the project dura%on. Affinity diagrams classify
a large number of ideas into groups for analysis and review.
Ques%on 22 = B Explana%on: The schedule performance index (SPI) is a measure of the
conformance of actual progress (earned value) to the planned progress: SPI = EV / PV (PMBOK 7th
edi%on, page 249). A value of 1.0 indicates that the project performance is on target. When CPI or
SPI is greater than 1.0, it indicates beZer-than-planned project performance, while a CPI or SPI that
is less than 1.0 indicates poorer-than-planned project performance. EV = 10%25 x $100,000 =
$10,000, PV = (1 Month / 10 Months) x $100, 000 = $10,000 then SPI = EV / PV = 1
Ques%on 23 = D Explana%on: The boZom-up method can be used as an es%ma%on technique for
the project%27s overall cost by es%ma%ng the approximate value of smaller components and using
the total sum of these values to find the overall cost. This type of es%ma%on is used to create the
project schedule or budget. The project work is typically subdivided into smaller parts and each
component is given a dura%on and cost es%mate. The individual dura%on es%mates are aggregated
to determine the schedule, while the individual cost es%mates are aggregated to determine the
budget.
Ques%on 24 = B Explana%on: Risk acceptance acknowledges the existence of a threat, but no
proac%ve ac%on is taken (PMBOK 7th edi%on, page 248). The most common ac%ve acceptance
strategy is to establish a con%ngency reserve, including %me, money, or resources to handle the
threat if it occurs. Passive acceptance involves no proac%ve ac%on apart from a periodic review of
the threat to ensure that it does not change significantly (PMBOK 6th edi%on, page 443). A
workaround is an unplanned response to deal with uniden%fied risks and risks that are passively
accepted.
Ques%on 25 = A Explana%on: A resource calendar is a calendar for planning, managing, and
monitoring resources, including both employees and equipment. It gives project managers an
overview of how resources are being u%lized, which resources are available, and when. On the
other hand, the Responsibility Assignment Matrix (RAM) describes the involvement of different
par%es and their roles in comple%ng tasks or deliverables in a project. It%27s used to clarify roles
and responsibili%es within a team, project, or process. RACI is an acronym for Responsible
Accountable Consult and Inform and it’s used to assign roles and responsibili%es for each task in a
given process. An organigram, also called an organiza%onal chart, organogram, or organiza%onal
breakdown structure (OBS), is a diagram that depicts the organiza%on’s structure and the
rela%onships and ranks of its different posi%ons.
Ques%on 26 = C Explana%on: A resource breakdown structure is a hierarchical list of team and
physical resources related by category and resource type that is used for project planning,
management, and control (PMBOK 7th edi%on, page 187). Each descending level corresponds to a
more detailed descrip%on of the resource. A resource calendar, on the other hand, is a calendar for
planning, managing, and monitoring resources. Organiza%onal Breakdown Structure (OBS), also
known as Organiza%on Chart, is used for represen%ng the project organiza%on. RACI is an acronym
for Responsible Accountable Consult and Inform and it’s used to assign the roles and
responsibili%es of the individuals involved in a project or a process.
Ques%on 27 = D Explana%on: The total cost of the Cost Plus Fixed Fee (CPFF) contract is the sum of
the Actual cost and the Fixed fee; $60,000 + $5,000 = $65,000.
Ques%on 28 = B Explana%on: The amount of budget deficit or surplus at a given point in %me
expressed as the difference between Earned Value(EV) and the Actual Cost (AC), is known as Cost
Variance (PMBOK 7th edi%on, page 238).
Ques%on 29 = D Explana%on: Project constraints are limi%ng factors for your project that can
impact delivery, quality, and overall project success. An imposed delivery date or a predefined
budget are considered project constraints (PMBOK 7th edi%on, page 72).
Ques%on 30 = D Explana%on: Risk mi%ga%on can imply prototype development in order to prevent
the risk from scaling up. Crea%ng a prototype will support the tes%ng and through tes%ng, you can
generate the necessary data to probably even close the risk. To keep costs low, you can opt for
par%al prototypes for the specific por%ons of the process that involve the risk.
Ques%on 31 = A Explana%on: Phase reviews, aka phase gates, phase exits, phase entrances, kill
points, and stage gates, is a formal review of the project to evaluate its status. The results are
documented and presented to the concerned stakeholders or the sponsor in order to get their
approval to proceed to the next phase in the project lifecycle. It’s called “Kill point” because when
your board determines that your project hasn%27t achieved its objec%ves to date, they may
decide to stop it (PMBOK 7th edi%on, page 244).
Ques%on 32 = D Explana%on: A mandatory dependency is also called a hard dependency or hard
logic. For example, consider 2 ac%vi%es A and B, if B has a mandatory dependency on A, it means
ac%on on B cannot be performed un%l ac%on on A has been completed. A discre%onary or sop
logic dependency, on the other hand, is an op%onal or preferred dependency. External
dependencies involve a rela%onship between project ac%vi%es and non-project ac%vi%es (PMBOK
7th edi%on, page 60).
Ques%on 33 = A, B, C Explana%on: To develop the Project Charter, the project manager needs
business documents such as the project’s business case, benefits/strategic plan, and agreements.
The project plan is developed once the project charter is signed.
Ques%on 34 = B Explana%on: The first thing the project manager should do in this situa%on is to
understand what impact this leave will have on the project. For instance, a two-month leave may
not have a big impact on a 3-year project, but it will have a significant impact on a 6-month
project, especially if this team member is a key player. Aper evalua%ng the impact, the project
manager can ask the team member to postpone their leave or split it into shorter leaves over the
project dura%on. If the impact of the team member’s leave is s%ll significant, even with these two
solu%ons, then the project manager may need to seek a replacement.
Ques%on 35 = C Explana%on: Project crashing implies reducing the %me one or more tasks take in
order to minimize the overall dura%on of the project. Crashing consists of increasing the project
resources to help finish tasks in less %me than planned. However, this leads to an increase in
project costs. Such measures cannot be implemented without the approval of the sponsor or key
stakeholders. Fast-tracking is also a schedule compression technique, but it involves performing
tasks simultaneously without adding more resources or increasing costs (PMBOK 7th edi%on, page
59). Resource leveling and resource smoothing are two resource op%miza%on techniques, which
are used to respond to resource limita%ons. These two techniques can only extend the project
schedule.
Ques%on 36 = B Explana%on: The project manager can determine the financial status of their
project by calcula%ng the Cost Performance Index (CPI = EV / AC) or the Cost Variance (CV = EV -
AC). Since AC = $30,000, then they need to calculate the Earned Value (EV = %25 completed work x
budget). Considering the described scenario, EV= 25%25 x $100,000 = $25,000. Consequently, CPI
= $25,000 / $30,000 = 0.833 which is less than 1, meaning that the project is over budget. CV =
$25,000 - $30,000 = - $5,000 which is less than 0, which confirms that the project is over budget.
Ques%on 37 = D Explana%on: The procurement manager and the project manager are discussing
lessons learned in engaging with this par%cular vendor and also in ac%vi%es associated with
managing the vendor’s performance. This includes iden%fying what went well and what could have
been done differently, which will benefit future projects.
Ques%on 38 = C Explana%on: The scope creep should be brought to the project team’s aZen%on
and treated as an unapproved change. This will also need to go through the formal channel by
repor%ng it to the change control board and decide with them on the appropriate course of ac%on
(PMBOK 7th edi%on, page 87). Undoing the changes without referring to the CCB means the
project manager is going to perform addi%onal work that is not part of the scope, resul%ng in
further scope creep; That’s why they need approval from CCB. As the project manager, she should
avoid favori%sm and any situa%ons of conflict of interest by maintaining impar%ality in her
decisions.
Ques%on 39 = C Explana%on: At this stage, the project manager should work with the client to get
their signature as approval that the product complies with requirements. Confirming that the
product has been internally tested on your part is not sufficient since the client must validate that
the product does meet their requirements. The control quality process is supposed to be
performed before the product is shipped. In this situa%on, the client just asked whether the
product meets the requirements or not and didn’t report any problems. Thus, the proper next step
is to go over all of the product specifica%ons with the client to formally validate them and get their
signature approving that the product complies with requirements in order to finally close the
project.
Ques%on 40 = C Explana%on: The traceability Matrix is a document that maps requirements as well
as other aspects of the project. It%27s used as evidence to confirm that requirements have been
fulfilled, as it typically documents those requirements along with issues and test results (PMBOK
7th edi%on, page 189).
Ques%on 41 = D Explana%on: Stage-gate or phase review mee%ngs represent an opportunity for
project stakeholders to review project progress along with planned future ac%ons. In these
mee%ngs, project stakeholders can assess whether or not the project is on track to meet the
organiza%on’s expecta%ons (PMBOK 7th edi%on, page 42). You should schedule gate mee%ngs at
key milestones throughout your project to not only ensure it is on track but also demonstrate to
the project stakeholders that you are staying on course.
Ques%on 42 = C Explana%on: Since the Schedule Performance Index (SPI) is less than 1.0, then the
project is behind schedule. Consequently, the project manager should be concerned about the
project schedule. Since CPI is 1.1, then the project is under budget. Thus, the project is on track
cost-wise. There is no indica%on in the ques%on that the project manager should be concerned
about risks.
Ques%on 43 = A Explana%on: When a cri%cal key stakeholder requests a change, the project
manager should treat it with high priority and issue a change request to the Change Control Board
(CCB) in order to add their request to the scope (PMBOK 7th edi%on, page 77). In the described
situa%on, the project manager is able to address the stakeholder request. So, it’s not appropriate
to decline the change request under the pretext that the conference date is only one day away. On
the other hand, the project manager should not immediately increase the number of aZendees
because this will be considered scope creep. Even though the conference hasn’t started yet,
project execu%on has already begun since the project team has contacted suppliers, reserved
aZendees’ accommoda%ons, booked the conference room, etc.
Ques%on 44 = B Explana%on: Float, Total float, Slack, or ac%vity float represents how long an
ac%vity can be delayed without causing a delay in the project comple%on date. On a cri%cal path,
the total float is zero. You can calculate an ac%vity float by subtrac%ng the Early Start date of the
ac%vity from its Late Start date: (12 - 4 = 8 days), or by subtrac%ng the Early Finish date of the
ac%vity from its Late Finish date (28 - 20 = 8 days).
Ques%on 45 = C Explana%on: Es%mate at Comple%on (EAC) is defined as the sum of the completed
work cost plus the cost required to finish the remaining work. Es%mate at Comple%on (EAC) may
differ from the Budget At Comple%on (BAC) based on the project performance (PMBOK 7th
edi%on, page 104). If it becomes obvious that the BAC is no longer viable, the project manager
should consider the forecasted EAC instead.
Ques%on 46 = B, D Explana%on: Since the project manager is adop%ng a predic%ve approach, he
should ask the customer to submit a change request that will be evaluated by him and his team.
The change request evalua%on should cover analyzing its associated risks and implica%ons. Aper
gathering all informa%on, the Change Control Board (CCB) will decide to either accept the change
or reject it. The project manager is usually a member of the CCB. In this case, the project manager
may influence the decision based on the conducted analysis. But, he cannot do this without
assessing the change with his team first (PMBOK 7th edi%on, page 77). The customer may not
accept postponing the change. The concept of protec%ng the team from distrac%on or external
interference doesn’t exist in the predic%ve approach; it’s rather common in the Scrum framework,
more specifically during sprint execu%on.
Ques%on 47 = D Explana%on: A trend Report is used to check the performance status; whether the
project performance is on track, improving, or deteriora%ng over a %me period. This report shows
a comparison between the project’s current performance in a specific dura%on against its previous
performance during a similar %me dura%on (comparing monthly performances for example).
Performance could be compared monthly, quarterly, semesterly, or annually.
Ques%on 48 = D Explana%on: The issue log, also called an issue register, is a project document that
records and tracks all issues that have a nega%ve impact on the project (PMBOK 7th edi%on, page
185). Once created, it’ll be the project manager’s tool to monitor and communicate all that is going
on in the project. Such issues may involve resources leaving the project, conflic%ng teams, or even
individuals with low morale. A change log is used to document all change requests. Problem log
and dispute log are both made-up terms.
Ques%on 49 = A Explana%on: During an inspec%on, the project manager reviews deliverables and
performs a site walkthrough if applicable. Audits, on the other hand, are carried out to determine
if project ac%vi%es comply with organiza%onal and project policies, processes, and procedures
(PMBOK 6th edi%on, page 294). In other words, audits are performed on processes while
inspec%ons are performed on products. The project manager here is neither valida%ng the scope
with the customer nor handing over deliverables to them.
Ques%on 50 = C Explana%on: Based on the performance indexes provided, the project is 10%25
ahead of schedule while being over budget. Leveling out resource usage is a strategy used to
spread out costs over %me. This helps reduce unexpected spikes of spending, albeit it may lead to
lengthening the schedule. Crashing or fast-tracking are two schedule compression techniques. So,
it’s pointless to use them in the described situa%on since the project is ahead of schedule.

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