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Vendor: PMI
Exam Code: PMP
Exam Name: Project Management Professional (PMP)

You work for a software development company that has followed the waterfall development model for more than 20 years. Lately, a number of customers have complained that your company is taking too long to complete its projects. You attended a class on agile development methods and believe that if the company used the agile approach, it could provide products to clients in a shorter time period. However, it would be a major culture change to switch from the waterfall methodology to the agile approach and to train staff members in this new approach. You mentioned this idea to the director of the PMO, and although she liked the idea, she would need approval from the company’s portfolio review board to move forward with it. She suggested that you document this idea in a______________.

A.    Business need
B.    Product scope description
C.    Project charter
D.    Business case

Answer: D
The business case is used to provide the necessary information to determine whether or not a project is worth its investment. It is used to justify the project and typically contains a cost-benefit analysis and a business need.

You are managing a large project with 20 key internal stakeholders, eight contractors, and six team leaders. You must devote attention to effective integrated change control. This means you are concerned primarily with______________.

A.    Reviewing, approving, and controlling changes
B.    Maintaining baseline integrity, integrating product and project scope, and coordinating change across knowledge areas
C.    Integrating deliverables from different functional specialties on the project
D.    Establishing a change control board that oversees the overall project changes

Answer: A
Performing integrated change control consists of coordinating and managing changes across the project. Activities that occur within the context of perform integrated change control include:
validate scope, control scope, control schedule, control costs, perform quality assurance, control
quality, manage the project team, control communications, control risks, conduct procurements, control procurements, manage stakeholder engagement, and control stakeholder engagement.
[Monitoring and Controlling]

You plan to hold a series of meeting as you execute the project plan. While different attendees will attend each meeting, a best practice to follow is to:

A.    Group stakeholders into categories to determine which ones should attend each meeting
B.    Not mix the types of meetings on your project
C.    Be sensitive to the fact that stakeholders often have very different objectives and invite them to determine the meeting’s agenda
D.    Recognize that roles and responsibilities may overlap so focus on holding meetings primarily for decision making

Answer: B
Meetings are a tool and technique used in direct and manage project work. Meetings tend to be one of three types: information exchange; brainstorming, option evaluation, or design; or decision making. A best practice is to not combine the types of meetings and prepare for them with a well- defined agenda, purpose, objective, and time frame. They should be documented using minutes and action items. [Executing]

You are the project manager in charge of developing a new shipping container for Globus Ocean Transport, which needs to withstand winds of 90 knots and swells of 30 meters. In determining the dimension of the container and the materials to be used in its fabrication, you convene a group of knowledgeable professionals to gather initial requirements, which will be included in the______________.

A.    Project charter
B.    Bill of materials
C.    WBS
D.    Project Statement of Work

Answer: A
The project charter documents the business needs, assumptions, constraints, understanding of the customer needs and high-level requirements and what the new product, service, or result is to satisfy. It is the document used to formally authorize the project. [Initiating]

You have assembled a core team to develop the project management plan for the next generation of fatigue fighting drugs. The science is complex, and the extended team of researchers, clinicians, and patients for trials exceeds 500 people. The content of your project management plan will be directed primarily by two factors. They are______________.

A.    Project complexity and the capability of resources
B.    Number of resources and project schedule
C.    Team member experience and budget
D.    Application area and complexity

Answer: D
The content of the project management plan is primarily influenced by the application area [in this case drug development] and complexity of the project. The size of the plan is typically commensurate with the size and complexity of the project. [Planning]

When you established the change control board for your avionics project, you established specific procedures to govern its operation. The procedures require all approved changes to baselines to be reflected in the______________.

A.    Performance measurement baseline
B.    Change management plan
C.    Quality assurance plan
D.    Project management plan

Answer: D
The project management plan must be updated changes to subsidiary plans and baselines subject to formal change control processes. Those changes must be communicated to appropriate stakeholders in a timely manner. [Monitoring and Controlling]

You are beginning a new project staffed with a virtual team located across five countries. To help avoid conflict in work priorities among your team members and their functional managers, you ask the project sponsor to prepare a______________.

A.    Memo to team members informing them that they work for you now
B.    Project charter
C.    Memo to the functional managers informing them that you have authority to direct their employees
D.    Human resource management plan

Answer: B
Although the project charter cannot stop conflicts from arising, it can provide a framework to help resolve them, because it describes the project manager’s authority to apply organizational resources to project activities. [Initiating]

The purpose of economic value added (EVA) is to______________.

A.    Determine the opportunity costs associated with the project
B.    Determine a non-time-dependent measure of profit or return
C.    Assess the net operating profit after taxes
D.    Evaluate the return on capital percent versus the cost of capital percent

Answer: D
Evaluate the return on capital percent versus the cost of capital percent EVA quantifies the value a company provides to its investors and seeks to determine if a company is creating or destroying value to its shareholders. It is calculated by subtracting the expected return, (represented by the capital charge), from the actual return that a company generates, (represented by net operating profit after taxes). [Initiating]

Facilitation techniques are used throughout project management. Your company is embarking on a project to completely eliminate defects in its products. You are the project manager for this project, and you are developing your project charter. To assist you, which of the following facilitation techniques did you use?

A.    Surveys
B.    Delphi approach
C.    Meeting management
D.    Focus groups

Answer: C
Meeting management is an example of a facilitation technique used in developing the project charter as meetings may be held with key stakeholders and subject matter experts. Other facilitation techniques used to guide preparation of the charter are brainstorming, problem solving, and conflict resolution. [Initiating]

The direct and manage project work process truly is important in project management. It affects many other key processes and uses inputs from others. Working with your team at its kickoff meeting, you explain the key benefit of this process is to______________.

A.    Implement approved changes
B.    Provide overall management of the project work
C.    Lead and perform activities in the project management plan
D.    Perform activities to accomplish project objectives

Answer: B
While all of the answers apply to the direct and manage project work process, the key benefit is that it involves providing overall management of the work of the project, encompassing the other answers listed. [Executing]

You are managing a project in an organization is characterized by with rigid rules and policies and strict supervisory controls. Your project, sponsored by your CEO who is new to the company, is to make the organization less bureaucratic and more participative. You are developing your project management plan. Given the organization as it now is set up, as you prepare your plan, you can use which of the following organizational process assets______________.

A.    Guidelines and criteria
B.    Project management body of knowledge for your industry
C.    Organizational structure and culture
D.    The existing infrastructure

Answer: B
While you are managing a different type of project, the organization has managed projects before and therefore may have as part of its organizational process assets a project management template, which sets forth guidelines and criteria to tailor the organization’s processes to satisfy specific needs of the project. [Planning]

You are fairly new to managing a project but have been a team member for many years. You are pleased you were selected to manage your company’s 2015 model line of hybrid vehicles. You are now planning your project and have been preparing the subsidiary plans as well. You realize some project documents also are required to help manage your project. An example of one that you believe will be especial helpful is the______________.

A.    Business case
B.    Key performance indicators
C.    Project management information system
D.    Project statement of work

Answer: D
The project statement of work is a useful document as it describes the products, services, or results the project is to deliver. It references the business need, product scope description, and the strategic plan. [Initiating and Planning]
PMI®, PMBOK® Guide, 2013, 68, 78

You work for a telecommunications company, and when developing a project management plan for a new project, you found that you must tailor some company processes because the product is so different than those products typically produced by your company. To tailor these processes, you will follow______________.

A.    Standardized guidelines and work instructions
B.    Stakeholder risk tolerances
C.    Expert judgment
D.    Structure of your company

Answer: A
Standardized guidelines and work instructions are an organizational process asset to consider as the project management plan is developed. They include guidelines and criteria to tailor the organization’s set of standard processes to satisfy the specific needs of the project. [Planning] PMI®, PMBOK® Guide, 2013, 75

You are implementing a project management methodology for your company that requires you to establish a change control board. Which one of the following statements best describes a change control board?

A.    Recommended for use on all (large and small) projects
B.    Used to review, evaluate, approve, delay, or reject changes to the project
C.    Managed by the project manager, who also serves as its secretary
D.    Composed of key project team members

Answer: B
Used to review, evaluate, approve, delay, or reject changes to the project The change control board’s powers and responsibilities should be well defined and agreed upon by key stakeholders. On some projects, multiple change control boards may exist with different
areas of responsibility. [Monitoring and Controlling]
PMI®, PMBOK® Guide, 2013, 96

An automated tool, project records, performance indicators, data bases, and financials are examples of items in______________.

A.    Organizational process assets
B.    Project management information systems
C.    Project management planning approaches
D.    The tools and techniques for project plan development

Answer: B
The items listed are part of these systems, a tool and technique in both processes. [Executing and Monitoring and Controlling]
PMI®, PMBOK® Guide, 2013, 84, 92

You realize that projects represent change, and on your projects, you always seem to have a number of change requests to consider. In your current project to manage the safety of the nation’s cheese products and the testing methods used, you decided to prepare a formal change management plan. An often overlooked type of change request is______________.

A.    Adding new subject matter experts to your team
B.    Updates
C.    Work performance information
D.    Enhancing the reviews performed by your project’s governance board

Answer: B
Change requests may include corrective actions, preventive actions, defect repairs, or updates. Updates are changes to formally controlled project documents or plans to reflect modified or additional content. [Executing]
PMI®, PMBOK® Guide, 2013, 85

You have been directed to establish a change control system for your company, but must convince your colleagues to use it. To be effective, the change control system must include______________.

A.    Procedures that define how project documents may be changed
B.    Specific change requests expected on the project and plans to respond to each one
C.    Performance reports that forecast project changes
D.    A description of the functional and physical characteristics of an item or system

Answer: A
A change control system is a collection of formal, documented procedures that define the process used to control change and approve or reject changes to project documents, deliverables, or baselines. It includes the paperwork, tracking systems, and approval levels necessary to authorize changes. [Monitoring and Controlling]
PMI®, PMBOK® Guide, 2013, 96

You are working on the next generation of software for mobile phones for your telecommunications company. While time to market is critical, you know from your work on other projects that management reviews can be helpful and plan to use them on your project. You are documenting them as part of your______________.

A.    Governance plan
B.    Change management plan
C.    Performance reviews
D.    Project management plan

Answer: D
The project management plan describes how the project will be executed and monitored and controlled. While it contains a number of subsidiary plans, it also contains other items including information on key management reviews for contents, their extent, and timing to address open
issues and pending decisions. [Planning]
PMI®, PMBOK® Guide, 2013, 77

Your cost control specialist has developed a budget plan for your project to add a second surgical center to the Children’s Hospital. As you analyze cash flow requirements, you notice that cash flow activity is greatest in the closing phase. You find this unusual because on most projects the largest portion of the budget spent during______________.

A.    Initiating
B.    Monitoring and Controlling
C.    Controlling
D.    Executing

Answer: D
Executing is where the majority of the budget is spent because this is the process where all of the resources (people, material, etc.) are applied to the activities and tasks in the project management plan. [Executing]
PMI®, PMBOK® Guide, 2013, 56

You are project manager for a systems integration effort and need to procure the hardware components from external sources. Your subcontracts administrator has told you to prepare a product description, which is referenced in a______________.

A.    Project statement of work
B.    Contract scope statement
C.    Request for proposal
D.    Contract

Answer: A
Project statement of work
The project statement of work describes in a narrative form the products, services, or results that
the project will deliver. It references the product scope description as well as the business needs and the strategic plan. [Initiating]
PMI®, PMBOK® Guide, 2013, 68

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