PMI PMP Exam Questions

Page 10 of 56

181.

Laurie is a project manager responsible for the development of a shopping center. Due to the capacity of the project, there will be multiple iterations of blueprints and engineering drawings.  Laurie has decided to create an online database that can be used to query the documents by name, date, etc. This is an example of what type of communication tool?

  • Project Management Information System

  • Lessons Learned

  • Configuration Management System

  • Organizational Process Asset

Correct answer: Project Management Information System

The online database mentioned is an example of a Project Management Information System (PMIS). A PMIS is a software application used by organizations to provide managers with the decision-making support needed in planning, organizing, and controlling projects.

Lessons Learned is a knowledge management process that captures and documents knowledge gained during a project to improve future performance. It is not a communication tool for managing project documents.

A Configuration Management System (CMS) is a set of tools and processes used to manage and track changes to project artifacts, such as blueprints and engineering drawings. While a CMS can be used to manage project documents, it is not specifically designed for communication purposes.

Organizational Process Assets (OPAs) are plans, processes, policies, procedures, and knowledge bases specific to and used by the performing organization. While OPAs can include communication tools, they are not specifically designed for managing project documents.

182.

You have been tasked by your organization's senior leadership team to develop a new product that enhances physical security requirements throughout your headquarters building. You begin preparing a document that includes high-level requirements, high-level product descriptions, and key project objectives. What document are you preparing to present? 

  • Project charter

  • Business case

  • Project scope statement

  • Business process management plan

Correct answer: Project charter

The project charter authorizes the existence of a project and provides the project manager with the ability to proceed. The information contained in this charter includes high-level information on the project, product, or service.

A business case is a document that outlines the justification for a project, including the expected benefits, costs, and risks. It is typically created during the initiation phase of a project and is used to determine whether the project should be pursued.

The project scope statement is typically created during the planning phase of a project. It is used to define the project's boundaries and ensure that all stakeholders have a common understanding of the project's scope.

A business process management plan is a document that outlines how business processes will be managed throughout the project. It includes information on how processes will be identified, analyzed, and improved.

183.

Two companies are partnering on a new development project. Both companies have financial oversight of the project and are keenly interested in resource allocation. The total budget authorized to complete the scheduled work is $750,000 and the schedule baseline is 200 days. The resources are allocated evenly across the schedule baseline and the budget is consistent from day to day. By day 46, the work is 23% complete as scheduled.

What is the actual cost (AC) on day 46?

  • $172,500

  • $750,000

  • 46

  • $577,500

Correct answer: $172,500

AC (actual cost) is the cost spent to complete work during a specific time period. This question asks for the AC by day 46. We know that the budget is allocated evenly across the schedule and the overall work is 23% complete as planned. 23% of the overall budget of $750,000 is $172,500 ($750,000 * .23 = $172,500).

184.

Company X's project manager believed that he did not need the IT department's approval before he scheduled the software installation. This is an example of a(n):

  • Assumption

  • Constraint

  • Objective

  • Risk

Correct answer: Assumption

When an individual assumes something is true without proof, it is known as an assumption. In this instance, the project manager assumed he did not need the IT department's approval, which may not have been the case.

When a project team's options are limited due to limitations on resources, time, or funds, it is known as a constraint.

An objective is something to work toward, a strategic position to be attained, a purpose to be achieved, a result to be obtained, a product to be produced, or a service to be performed.

A risk is an uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives.

185.

After finalizing the stakeholder register and organizing a subsequent meeting, how should you make sure all members are clear about their roles, responsibilities, and the project's deliverables and milestones?

  • Provide the approved project charter

  • Provide the stakeholder register

  • Provide the WBS (Work Breakdown Structure) and RACI (Responsible, Accountable, Consulted, and Informed) chart

  • Provide the project management plan

Correct answer: Provide the approved project charter

The next step is to present the approved project charter to the stakeholders. This document is crucial as it officially authorizes the project's initiation and grants the project manager the authority to oversee the project. The project charter encompasses vital information such as project milestones, deliverables, a comprehensive list of stakeholders, and their respective roles and responsibilities. By sharing the approved project charter, you ensure that all stakeholders are informed about the key aspects of the project and understand their specific involvement and expectations, thereby setting a clear foundation for the project's execution.

While the stakeholder register is an important project management document, it does not provide a comprehensive plan for meeting stakeholder requirements and ensuring clear assignment of roles and responsibilities.

The question suggests that the project is in its planning phase. Therefore, the WBS, RACI chart, and project plan are still in the works.

186.

Leon and Margie are project managers working for the same electronics company and are nearing completion of their respective projects. Over lunch one day, Leon mentions to Margie that he has started his summary of the project's performance and will be publishing it to the stakeholders by the end of the week. Margie is surprised because her team is still in the process of collecting and documenting the last bits of new project knowledge and best practices. Which of the following BEST describes the outputs Leon and Margie are creating?

  • Leon: Final report; Margie: Project documents updates

  • Leon: Organizational process asset updates; Margie: Project documents updates

  • Leon: Final report; Margie: Project closure documents

  • Leon: Operational and support documents; Margie: Lessons learned repository

Correct answer: Leon: Final report; Margie: Project documents updates

They are both performing the Close Project process. Leon is writing the summary of his project's performance, otherwise known as the final report. Margie is updating her project's lessons learned repository, one of the documents that is updated at a project's close.

"Leon: Organizational process asset updates; Margie: Project documents updates" is incorrect because Leon is creating his final report. 

"Leon: Final report; Margie: Project closure documents" is incorrect because Margie is not creating formal documentation of the project's completion.

"Leon: Operational and support documents; Margie: Lessons learned repository" is incorrect because Leon is creating a summary of his project's performance, not a document that his organization needs to maintain or operate his project's product.

187.

Kenia is leading an Agile project and is five iterations into the project to develop a product. The project team demonstrated the project to the end users, but they weren't happy with the graphical user interface that was created. What is Kenia's BEST course of action?

  • Work with the product owner to prioritize feedback and update the product backlog.

  • Tell the team to redo the graphical user interface at once.

  • Ignore the complaints.

  • Tell the end users to submit a change request.

Correct Answer: Work with the product owner to prioritize feedback and update the product backlog.

Changes and feedback are incorporated through ongoing refinement of the product backlog in Agile projects. The best course of action for the project manager to take is to collaborate with the product owner to review the feedback and adjust the backlog to ensure that the user interface improvements are prioritized in future iterations. 

Agile teams do not typically use formal change requests, as they are designed to embrace change and adapt through iterative development.

Directing the team to immediately redo the interface without prioritizing the work within the product backlog undermines the Agile process of iterative development and prioritization.

Ignoring the complaints could lead to dissatisfaction and misalignment with stakeholder needs, contradicting Agile principles of stakeholder collaboration.

Asking the end users to submit a formal change request is inappropriate in an Agile setting, as changes are handled through backlog refinement, not through formal documentation processes.

188.

The project manager is working diligently to index and archive his project's records. Based on this information, which process group is the project manager's project currently in?

  • Closing

  • Planning

  • Executing

  • Monitoring & Controlling

Correct answer: Closing

The project manager is in the closing process group when he is working diligently to index and archive his project's records. Capturing this data in the project documents is an update to the organizational process assets and is an output of the closing process grouping.

"Planning" is not correct. Planning refers to the process of defining a new project or phase. Work is started on some project records at this stage.

"Executing" is not correct. This is where all the work defined in the project plan is completed.

"Monitoring & Controlling" is not correct. This refers to the ongoing efforts and techniques to track, review, identify, and assess any variables that could affect the project's progress and performance.

189.

"Since the team cannot come up with a resolution to fix the lag time between filling orders, we will table the problem and discuss it in a few weeks." Which conflict resolution technique is being used in this scenario?

  • Withdrawal/Avoiding

  • Forcing

  • Collaborating

  • Compromising

Correct answer: Withdrawal/Avoiding

Ken Thomas and Ralph Kilmann describe six ways to address conflict by focusing on the relative power between individuals to maintain a good relationship.

  1. Confronting/Problem Solving: Confronting a conflict treats the conflict as a problem to be solved. This approach is used when the relationship between parties is important and when each person has confidence in the other party's ability to problem-solve.
  2. Collaborating: Collaborating involves incorporating multiple viewpoints and insights from differing perspectives; it requires a cooperative attitude and open dialogue. There must be trust among the participants and time to come to a consensus. A project manager may facilitate this type of conflict resolution between project team members.
  3. Compromising: Searching for solutions that bring some degree of satisfaction to all parties in order to temporarily or partially resolve the conflict. This is generally used when the parties involved have equal "power."
  4. Smoothing/Accommodating: Highlighting areas of agreement rather than areas of difference; conceding one's position to the needs of others to maintain harmony.
  5. Forcing: Forcing is used when there is not enough time to collaborate or problem-solve and involves pushing one's viewpoint at the expense of others. This is usually enforced through a power position.
  6. Withdrawal/Avoiding: Retreating from an actual or potential conflict situation; postponing the issue to be better prepared or to be resolved by others.

The conflict resolution technique being used in this scenario is withdrawal/avoiding. This is the technique used to table unresolved issues until a later date.

190.

While developing the project charter, you consult lessons learned from a project of a similar nature that was successfully completed last year. What are you using to aid the Develop Project Charter process?

  • Organizational process assets

  • Enterprise environmental factors

  • Expert judgment

  • Agreements

Correct answer: Organizational process assets

Organizational process assets (OPAs) that can influence the Develop Project Charter process include, but are not limited to:

  • Organizational standard policies, processes, and procedures
  • Portfolio, program, and project governance framework
  • Monitoring and reporting methods
  • Templates (e.g., project charter template)
  • Historical information and lessons learned repository

"Enterprise environmental factors" is not correct. EEFs are factors that are not under the control of the project team.

"Expert judgment" is not correct. This is knowledge transfer based on expertise in a certain area.

"Agreements" is not correct. This is a broad term that refers to the consensus between involved parties regarding different processes throughout the project.

191.

A team member has demonstrated exceptional skill in organizing tasks and delegating appropriately, leading to successful project milestones. The project manager wants to recognize this demonstration of task accountability. According to McGregor's theory, which level of decision-making authority is appropriate to bestow upon this team member?

  • Full decision-making authority, as they have shown complete task mastery.

  • Limited decision-making authority, with oversight from senior management.

  • No additional decision-making authority; continue to evaluate performance.

  • Decision-making authority in a consultative capacity to the project manager.

Correct answer: Full decision-making authority, as they have shown complete task mastery.

According to McGregor's Theory Y, which emphasizes the potential for employees to be self-directed and creative at work, bestowing full decision-making authority on a team member who has demonstrated task mastery is appropriate. This action not only rewards the individual's performance but also aligns with Theory Y's assumption that in the right conditions, people will not only accept but also seek out responsibility. Empowering the team member in this way can lead to increased motivation and further contributions to project success.

Limited decision-making authority with oversight from senior management reflects a lack of full trust and does not align with McGregor’s Theory Y, which supports giving employees more autonomy. 

Providing no additional decision-making authority fails to recognize the team member's demonstrated skill and does not leverage their potential for greater responsibility. 

Decision-making authority in a consultative capacity does not fully empower the team member as it keeps them in a secondary role, contrary to Theory Y’s principle of granting full authority to capable individuals​​​​.

192.

The project manager is overseeing a long-term maintenance project for a network of buildings. The project needs to vary over time, with different maintenance tasks required at different intervals. Which contract type should they choose to manage these variable needs best?

  • Indefinite Delivery Indefinite Quantity (IDIQ) contract

  • Fixed-price contract

  • Cost-reimbursable contract

  • Time and Materials (T&M) contract

Correct answer: Indefinite Delivery Indefinite Quantity (IDIQ) contract

An Indefinite Delivery Indefinite Quantity (IDIQ) contract is most suitable for long-term maintenance projects with varying tasks over time. This contract type provides the flexibility to address different maintenance needs as they arise.

A fixed-price contract locks in costs and does not provide the flexibility needed for varying maintenance tasks over time. 

A cost-reimbursable contract allows for reimbursement of actual costs but lacks the adaptability for different intervals of maintenance needs. 

A Time and Materials (T&M) contract pays for actual time and materials used but does not offer the long-term flexibility to handle variable maintenance tasks as effectively as an IDIQ contract​​​​.

193.

The project you are managing has a problem that requires the contract with a seller to be modified. The alteration to the contract is in accordance with the change of control terms of the contract and the project. When is the recommended time to make this change to the contract?

  • At any time prior to contract closure by mutual consent

  • At any time, regardless of the response from the seller

  • At any time prior to the contract being awarded to the seller

  • Never; the contract cannot be modified at any time.

Correct answer: At any time before contract closure by mutual consent

The contract with a seller can be modified at any time, in accordance with the change of control terms of the contract and the project. Contracts are usually varied or modified during a project for practical reasons. The contract is not in place until it has been awarded.

"At any time," regardless of the response from the seller, is not recommended as it may lead to legal disputes.

"At any time prior to the contract being awarded to the seller" is not applicable as the contract has already been awarded.

"Never; the contract cannot be modified at any time" is not accurate as contracts can be modified following the change control terms of the agreement.

194.

You are completing a project internal to the organization. You coordinate a meeting with the sponsor to determine the value of deliverables far after the project has been released. What type of document will be BEST to review before the engagement?

  • Benefits management plan

  • Project charter

  • Scope baseline

  • Risk matrix

Correct Answer: Benefits management plan

The benefits management plan explains how the deliverables should be maintained. The benefits management plan also defines the processes for sustaining, maximizing, and creating benefits provided by the project.

"Project charter" is not correct. This document can have a brief description of the agreed upon benefits but won't include all the details.

"Scope baseline" is incorrect. The scope baseline doesn't include the benefits analysis.

"Risk Matrix is incorrect. This artifact doesn't include benefit details.

195.

In the role of a project manager, various processes are undertaken to manage aspects such as time, budget, compliance, quality, and deliverables. What does "control" accurately refer to in this context?

  • Determining recommendations for corrective or preventive action

  • Collecting data to compare actual performance to planned performance

  • Mainting quality standard compliance

  • Having predictable and repeatable processes

Correct answer: Determining recommendations for corrective or preventive action

The process of control in project management focuses on analyzing performance data to identify discrepancies from the planned activities. It then involves recommending appropriate measures to correct or mitigate these discrepancies.

Monitoring is the process of collecting data to assess actual performance against the planned performance.

Maintaining adherence to quality standards is a function specific to quality management.

The presence of predictable and consistent processes is indicative of stable workflow management.

196.

You are managing a healthcare software project with an initial budget of $500,000. Project activities thus far have cost $400,000, though your plan shows you should have spent $430,000 to complete them. You consult your schedule and see that the project activities are ahead of schedule. Which of the following is the EV (Earned Value) at this point in the project?

  • $430,000

  • $400,000

  • $410,000

  • $500,000

Correct answer: $430,000

EV is Earned Value, or the planned value of the work completed to a certain point. In this case, the EV is $430,000.

197.

As a project manager, you are working on an adaptive/Agile project with a cross-functional team. What common reflective practice can you adopt to help your team be more efficient when delivering future iterations of the current project?

  • Retrospectives

  • Lessons learned

  • Integration

  • Continuous Improvement

Correct answer: Retrospectives

According to the Agile Practice Guide, "The single most important practice is retrospectives, because it allows the team to learn about, improve and adapt its process."

Lessons learned are gathered and analyzed in retrospectives.

Integration is not a reflective practice.

Continuous improvement is a consequence of applying retrospectives.

198.

As the project manager for a high-priority infrastructure upgrade in a weak matrix organization, you acquire team members who do not have the skills to effectively execute the project. You evaluate the situation and realize that training will take longer than expected and that costs for training are not included in the project budget.

What is your BEST course of action?

  • Negotiate with the functional managers

  • Talk to the project sponsor

  • Cancel the project

  • Obtain required resources

Correct answer: Negotiate with the functional managers

In this situation, if the resources are not adequate to execute effectively until project completion, the project manager needs to consider negotiating with functional managers. In a weak matrix organization, if negotiations fail, the project manager should consider submitting a change request for additional training.

Canceling the project should only be considered as a last resort if all other options have been exhausted.

Talking to the project sponsor may also be necessary, but it should not be the first step taken.

Obtaining new resources will cost more time than providing training for the existing team.

199.

Jess, as a project manager, is engaged in gathering information about the actual commencement and completion times of project tasks, as well as determining the time left to complete ongoing tasks. Which project management activity is Jess PRIMARILY conducting?

  • Status report

  • Performance measurement

  • Cost variance analysis

  • Critical path analysis

Correct answer: Status report

Jess's task of collecting actual start and finish dates for project activities and the remaining duration of ongoing tasks is an example of conducting periodic status reports. These reports are essential for assessing the progress and performance of project activities.

Cost variance analysis compares planned budget allocations with actual expenditures. 

Performance measurement baseline is a specific technique within earned value management that calculates performance indices. 

Critical path analysis is a strategic planning tool used to identify and schedule critical tasks necessary for project completion.

200.

Jess is a servant leader and has just been assigned to a product development project. She believes a Kanban approach should be implemented. The project team voices their opinion and isn't familiar with this project approach. What will be Jess's BEST course of action?

  • Have the team attend training on Kanban

  • Train the team on Kanban methods

  • Find a new project team

  • Choose another methodology

Correct answer: Have the team attend training on Kanban

A servant leader will ensure the project team has all the tools and skill sets to execute the project accordingly. If the project manager believes Kanban is the best method for moving forward, appropriate training for the team will need to be provided.

"Train the team on Kanban methods" is incorrect. Training on adaptive methodologies is often conducted by external coaches.

"Find a new project team" is incorrect. The team already has the knowledge and skills to work on the project.

"Choose another methodology" is incorrect. The question suggests that Jess had already analyzed the scenario and believes Kanban is the preferred methodology.