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NEW QUESTION # 483
A project charter is an output of which Process Group?
- A. Executing
- B. Initiating
- C. Closing
- D. Planning
Answer: B
Explanation:
As defined in the PMBOKGuide and the Standard for Project Management, the development of a project charter is a critical activity within the Initiating Process Group.
Specifically, the process is titled Develop Project Charter. This process formally authorizes the existence of a project or a new project phase and provides the project manager with the authority to apply organizational resources to project activities.
The breakdown of why the other options are incorrect based on PMI standards is as follows:
* Executing: This group involves completing the work defined in the project management plan to satisfy project requirements. The charter must exist before execution can begin.
* Planning: While many documents are created here (such as the Project Management Plan), the charter is a pre-requisite for detailed planning. It provides the high-level boundaries within which planning occurs.
* Closing: This group consists of processes performed to formally complete or close a project, phase, or contract.
According to the Process Group and Knowledge Area Mapping, " Develop Project Charter " is one of only two processes (along with Identify Stakeholders) that reside within the Initiating phase of a project ' s lifecycle.
NEW QUESTION # 484
The table represents the possible durations of a specific project task.
Using the three-point estimating technique what is the expected number of days it should take to complete the task?
- A. 0
- B. 1
- C. 2
- D. 3
Answer: D
Explanation:
In Project Management, when we are given a range of possible durations, we use the Three-Point Estimating formula to determine the expected duration ($t_E$).
While there are two formulas, the standard calculation for this problem (Triangular Distribution) is:
$$t_E = \frac{O + M + P}{3}$$
Where:
* $O$ (Optimistic): 2 days
* $M$ (Most Likely): 3 days
* $P$ (Pessimistic): 7 days
Calculation:
$$t_E = \frac{2 + 3 + 7}{3}$$
$$t_E = \frac{12}{3}$$
$$t_E = 4$$
Why this matters:
* Reduces Bias: Relying on a single " Most Likely " estimate can be risky. Three-point estimating forces the team to consider risks (Pessimistic) and opportunities (Optimistic).
* Accuracy: It provides a more mathematically sound average than a simple guess, helping the Project Manager create a more realistic Schedule Baseline.
Note on PERT (Beta Distribution):
If the question specifically asked for PERT or a Weighted Average, the formula would be $t_E = \frac{O +
4M + P}{6}$. Using PERT for these numbers would result in $3.5$ days. Since $4$ is the available choice that aligns with the simple triangular average, Option C is the correct answer.
Per PMI standards, this technique is used within the Estimate Activity Durations process to improve the accuracy of time estimates when there is uncertainty associated with the activity.
NEW QUESTION # 485
Cost baseline is an output of which of the following processes?
- A. Estimate Costs
- B. Estimate Activity Resources
- C. Determine Budget
- D. Control Costs
Answer: C
Explanation:
Section: Volume C
Explanation
Explanation:
7.3.3.1 Cost Baseline
The cost baseline is the approved version of the time-phased project budget, excluding any management reserves, which can only be changed through formal change control procedures and is used as a basis for comparison to actual results. It is developed as a summation of the approved budgets for the different schedule activities.
Process: 7.3 Determine Budget
Definition: The process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.
Key Benefit: The key benefit of this process is that it determines the cost baseline against which project performance can be monitored and controlled.
Inputs
1. Cost management plan
2. Scope baseline
3. Activity cost estimates
4. Basis of estimates
5. Project schedule
6. Resource calendars
7. Risk register
8. Agreements
9. Organizational process assets
Tools & Techniques
1. Cost aggregation
2. Reserve analysis
3. Expert judgment
4. Historical relationships
5. Funding limit reconciliation
Outputs
1. Cost baseline
2. Project funding requirements
3. Project documents updates
NEW QUESTION # 486
A functional manager is delegating a key project to a project team without a project manager.
Which communication method will be most effective?
- A. Oral
- B. Push
- C. Interactive
- D. Verbal
Answer: C
NEW QUESTION # 487
Which type of estimating is used to improve the accuracy of an activity's duration?
- A. Three-point
- B. Parametric
- C. What-if scenario analysis
- D. Analogous
Answer: A
Explanation:
Section: Volume D
Explanation:
6.5.2.4 Three-Point Estimating
The accuracy of single-point activity duration estimates may be improved by considering estimation uncertainty and risk. This concept originated with the program evaluation and review technique (PERT).
PERT uses three estimates to define an approximate range for an activity's duration:
Most likely (tM). This estimate is based on the duration of the activity, given the resources likely to be
assigned, their productivity, realistic expectations of availability for the activity, dependencies on other participants, and interruptions.
Optimistic (tO). The activity duration based on analysis of the best-case scenario for the activity.
Pessimistic (tP). The activity duration based on analysis of the worst-case scenario for the activity.
Depending on the assumed distribution of values within the range of the three estimates the expected duration, tE, can be calculated using a formula. Two commonly used formulas are triangular and beta distributions.
The formulas are:
Triangular Distribution. tE = (tO + tM + tP) / 3
Beta Distribution (from the traditional PERT technique). tE = (tO + 4tM + tP) / 6
Duration estimates based on three points with an assumed distribution provide an expected duration and clarify the range of uncertainty around the expected duration.
NEW QUESTION # 488
Portfolio Management is management of:
- A. a collection of projects that are grouped together to facilitate effective management and meet strategic business objectives.
- B. a project by utilizing a portfolio of general management skills such as planning, organizing, staffing, executing, and controlling.
- C. all projects undertaken by a company.
- D. a project by dividing the project into more manageable sub-projects.
Answer: A
Explanation:
Section: Volume C
Explanation:
1.4.2 Portfolio Management
A portfolio refers to projects, programs, subportfolios, and operations managed as a group to achieve strategic objectives. The projects or programs of the portfolio may not necessarily be interdependent or directly related.
For example, an infrastructure firm that has the strategic objective of "maximizing the return on its investments" may put together a portfolio that includes a mix of projects in oil and gas, power, water, roads, rail, and airports.
From this mix, the firm may choose to manage related projects as one program. All of the power projects may be grouped together as a power program. Similarly, all of the water projects may be grouped together as a water program.
Thus, the power program and the water program become integral components of the enterprise portfolio of the infrastructure firm.
NEW QUESTION # 489
What process is included in Project Schedule Management?
- A. Direct and Manage Project Work
- B. Create Work Breakdown Structure (WBS)
- C. Estimate Activity Durations
- D. Estimate Activity Resources
Answer: C
NEW QUESTION # 490
Which item is a formal proposal to modify any document, deliverable, or baseline?
- A. Requirements documentation
- B. Change request
- C. Scope baseline
- D. Risk urgency assessment
Answer: B
Explanation:
Explanation/Reference:
Explanation:
4.3.3.3 Change Requests
A change request is a formal proposal to modify any document, deliverable, or baseline. An approved change request will replace the associated document, deliverable, or baseline and may result in an update to other parts of the project management plan. When issues are found while project work is being performed, change requests are submitted, which may modify project policies or procedures, project scope, project cost or budget, project schedule, or project quality. Other change requests cover the needed preventive or corrective actions to forestall negative impact later in the project. Requests for a change can be direct or indirect, externally or internally initiated, and can be optional or legally/contractually mandated, and may include:
Corrective action-An intentional activity that realigns the performance of the project work with the
project management plan;
Preventive action-An intentional activity that ensures the future performance of the project work is
aligned with the project management plan;
Defect repair-An intentional activity to modify a nonconforming product or product component;
Updates-Changes to formally controlled project documents, plans, etc., to reflect modified or additional
ideas or content.
NEW QUESTION # 491
An output of the Perform Integrated Change Control process is:
- A. The requirements traceability matrix.
- B. Deliverables.
- C. Validated changes.
- D. The change log.
Answer: D
Explanation:
Section: Volume B
Explanation:
4.5.3.2 Change Log
A change log is used to document changes that occur during a project. These changes and their impact to the project in terms of time, cost, and risk, are communicated to the appropriate stakeholders. Rejected change requests are also captured in the change log.
Process: 4.5 Perform Integrated Change Control
Perform Integrated Change Control is the process of reviewing all change requests; approving changes and managing changes to deliverables, organizational process assets, project documents, and the project management plan; and communicating their disposition. It reviews all requests for changes or modifications to project documents, deliverables, baselines, or the project management plan and approves or rejects the changes.
Key Benefit: The key benefit of this process is that it allows for documented changes within the project to be considered in an integrated fashion while reducing project risk, which often arises from changes made without consideration to the overall project objectives or plans.
Inputs
1. Project management plan
2. Work performance reports
3. Change requests
4. Enterprise environmental factors
5. Organizational process assets
Tools & Techniques
1. Expert judgment
2. Meetings
3. Change control tools
Outputs
1. Approved change requests
2. Change log
3. Project management plan updates
4. Project documents updates
NEW QUESTION # 492
A method of obtaining early feedback on requirements by providing a working model of the expected product before actually building is known as:
- A. Benchmarking.
- B. Brainstorming.
- C. Prototyping.
- D. Context diagrams.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
5.2.2.8 Prototypes Prototyping is a method of obtaining early feedback on requirements by providing a working model of the expected product before actually building it. Since a prototype is tangible, it allows stakeholders to experiment with a model of the final product rather than being limited to discussing abstract representations of their requirements. Prototypes support the concept of progressive elaboration in iterative cycles of mock-up creation, user experimentation, feedback generation, and prototype revision. When enough feedback cycles have been performed, the requirements obtained from the prototype are sufficiently complete to move to a design or build phase. Storyboarding is a prototyping technique showing sequence or navigation through a series of images or illustrations. Storyboards are used on a variety of projects in a variety of industries, such as film, advertising, instructional design, and on agile and other software development projects. In software development, storyboards use mock-ups to show navigation paths through webpages, screens, or other user interfaces.
NEW QUESTION # 493
An employee was hired to work on ongoing, repetitive activities in the accounting department. The employee's duties are managing and controlling day-to-day activities. Which type of managing is the employee performing?
- A. Operations
- B. Finance
- C. Strategic
- D. Project
Answer: A
NEW QUESTION # 494
The risk response strategy in which the project team acts to reduce the probability of occurrence or impact of a risk is known as:
- A. mitigate
- B. avoid
- C. share
- D. exploit
Answer: A
Explanation:
Section: Volume B
Explanation:
11.5.2.1 Strategies for Negative Risks or Threats
Three strategies, which typically deal with threats or risks that may have negative impacts on project objectives if they occur, are: avoid, transfer, and mitigate. The fourth strategy, accept, can be used for negative risks or threats as well as positive risks or opportunities. Each of these risk response strategies have varied and unique influence on the risk condition. These strategies should be chosen to match the risk's probability and impact on the project's overall objectives. Avoidance and mitigation strategies are usually good strategies for critical risks with high impact, while transference and acceptance are usually good strategies for threats that are less critical and with low overall impact. The four strategies for dealing with negative risks or threats are further described as follows:
Avoid. Risk avoidance is a risk response strategy whereby the project team acts to eliminate the threat or
protect the project from its impact. It usually involves changing the project management plan to eliminate the threat entirely. The project manager may also isolate the project objectives from the risk's impact or change the objective that is in jeopardy. Examples of this include extending the schedule, changing the strategy, or reducing scope. The most radical avoidance strategy is to shut down the project entirely. Some risks that arise early in the project can be avoided by clarifying requirements, obtaining information, improving communication, or acquiring expertise.
Transfer. Risk transference is a risk response strategy whereby the project team shifts the impact of a threat
to a third party, together with ownership of the response. Transferring the risk simply gives another party responsibility for its management-it does not eliminate it. Transferring does not mean disowning the risk by transferring it to a later project or another person without his or her knowledge or agreement. Risk transference nearly always involves payment of a risk premium to the party taking on the risk. Transferring liability for risk is most effective in dealing with financial risk exposure. Transference tools can be quite diverse and include, but are not limited to, the use of insurance, performance bonds, warranties, guarantees, etc. Contracts or agreements may be used to transfer liability for specified risks to another party. For example, when a buyer has capabilities that the seller does not possess, it may be prudent to transfer some work and its concurrent risk contractually back to the buyer. In many cases, use of a cost-plus contract may transfer the cost risk to the buyer, while a fixed-price contract may transfer risk to the seller.
Mitigate. Risk mitigation is a risk response strategy whereby the project team acts to reduce the probability of
occurrence or impact of a risk. It implies a reduction in the probability and/or impact of an adverse risk to be within acceptable threshold limits. Taking early action to reduce the probability and/or impact of a risk occurring on the project is often more effective than trying to repair the damage after the risk has occurred. Adopting less complex processes, conducting more tests, or choosing a more stable supplier are examples of mitigation actions. Mitigation may require prototype development to reduce the risk of scaling up from a bench-scale model of a process or product. Where it is not possible to reduce probability, a mitigation response might address the risk impact by targeting linkages that determine the severity. For example, designing redundancy into a system may reduce the impact from a failure of the original component.
Accept. Risk acceptance is a risk response strategy whereby the project team decides to acknowledge the
risk and not take any action unless the risk occurs. This strategy is adopted where it is not possible or cost- effective to address a specific risk in any other way. This strategy indicates that the project team has decided not to change the project management plan to deal with a risk, or is unable to identify any other suitable response strategy. This strategy can be either passive or active. Passive acceptance requires no action except to document the strategy, leaving the project team to deal with the risks as they occur, and to periodically review the threat to ensure that it does not change significantly. The most common active acceptance strategy is to establish a contingency reserve, including amounts of time, money, or resources to handle the risks.
NEW QUESTION # 495
The project manager is dividing the project scope into smaller pieces, and repeating this process until no more subdivisions are required. At this point the project manager is able to estimate costs and activities for each element.
What are these elements called?
- A. Project activities
- B. Work packages
- C. Planning packages
- D. Project deliverables
Answer: B
Explanation:
Explanation/Reference:
Reference: http://www.free-management-ebooks.com/faqpm/scope-06.htm
NEW QUESTION # 496
Once the make-or-buy analysis is completed, which document defines the project delivery method?
- A. Procurement strategy
- B. Change request
- C. Procurement statement of work (SOW)
- D. Terms of reference
Answer: A
Explanation:
According to the PMBOKGuide and the Plan Procurement Management process, once the organization decides whether to produce a product or service internally or purchase it from external sources (Make-or-Buy Analysis), the next logical step is to determine the approach for the purchase.
The Procurement Strategy is the document that specifically defines:
* Delivery Methods: For professional services, this might include options like " no-subcontracting, " " joint venture, " or " regional liaison. " For construction, it could include " Design-Build (DB) " or " Design-Bid-Build (DBB). "
* Contract Types: Selection of the specific contract category (Fixed-price, Cost-reimbursable, or Time and Material).
* Procurement Phases: The sequencing or stages of the procurement process.
Analysis of other options:
* A. Procurement Statement of Work (SOW): This describes the procurement item in sufficient detail to allow prospective sellers to determine if they are capable of providing the products, services, or results.
It focuses on the " what, " whereas the Strategy focuses on the " how " (delivery method).
* C. Terms of Reference (TOR): This is similar to the SOW and is often used when contracting for services. It includes tasks, standards, and data requirements, but does not define the overarching project delivery method.
* D. Change Request: A make-or-buy decision might result in a change request to modify the project management plan, but the change request itself is the vehicle for change, not the document that defines the delivery method strategy.
In the PMI framework, the Procurement Strategy is a primary output of the planning phase that bridges the gap between the decision to buy and the execution of the solicitation.
NEW QUESTION # 497
The Plan Stakeholder Management process belongs to which Process Group?
- A. Executing
- B. Initiating
- C. Planning
- D. Monitoring and Controlling
Answer: C
NEW QUESTION # 498
A project manager is reviewing the change requests for project documents, deliverables, and the project plan.
In which project management process does this review belong?
- A. Perform Integrated Change Control
- B. Direct and Manage Project Work
- C. Monitor and Control Project Work
- D. Close Project or Phase
Answer: A
NEW QUESTION # 499
Which tool or technique is used in the Plan Scope Management process?
- A. Document analysis
- B. Product analysis
- C. Observations
- D. Expert judgment
Answer: D
Explanation:
According to the PMBOKGuide, the Plan Scope Management process is the process of creating a scope management plan that documents how the project and product scope will be defined, validated, and controlled. This process occurs early in the Planning Process Group.
* Expert Judgment: This is a standard tool and technique for the Plan Scope Management process. It involves input from individuals or groups with specialized knowledge or training in similar projects, the specific industry, or the technical area. Experts help define how the scope will be managed based on organizational culture, complexity, and historical information.
* Other Tools for this Process: In addition to Expert Judgment, this process utilizes Data Analysis (specifically alternatives analysis) and Meetings.
Why the other options are incorrect:
* A. Document analysis: This is a tool and technique used in the Collect Requirements process, not Plan Scope Management. It involves reviewing existing documentation to identify requirements.
* B. Observations: Also known as " job shadowing, " this is a tool and technique used in Collect Requirements to understand business processes or requirements that users may find difficult to articulate.
* C. Product analysis: This is a tool and technique used in the Define Scope process. It involves defining the product and its requirements in more detail through techniques like systems engineering or value engineering.
NEW QUESTION # 500
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