PMI PMI Certifications PMI-SP Questions & Answers

• Question 271:

  Which of the following individuals has a management role in a core business area, such as research and development, design, manufacturing, provisioning, testing, or maintenance?

  A. Functional manager

  B. Operations manager

  C. Project manager

  D. Seller

  Correct Answer: B

  The role of operations manager is to perform various management roles in a core business area, such as research and development, design, manufacturing, provisioning, testing, or maintenance. The operations manager directly deals with constructing and maintaining the saleable products or services of the enterprise. Answer option C is incorrect. A project manager is an expert in the field of project management. He is responsible for the entire project from inception to completion. The project manager leads the team and helps negotiate the multiple relationships within any project whether with clients, team members, firm principals or any variety of partners and functions as the hub of a project. Answer option A is incorrect. The role of a functional manager is to perform various management roles within an administrative or functional area of the business, such as human resources, finance, accounting, or procurement. He is assigned his own permanent staff to carry out the ongoing work. He should have a clear directive to manage all tasks within his functional area of responsibility. Answer option D is incorrect. Seller is also known as a vendor, supplier or contractor. They are external company's elements that enter into a contractual agreement to provide components or services necessary for the project.

• Question 272:

  A construction company is about to start a new project. It requires hiring a project manager for this project. Which of the following are the most important skills that a person must have to be selected as a project manager?

  A. Problem solving

  B. Team building and human resources

  C. Leading

  D. Communication

  E. Negotiation and influential

  Correct Answer: D

  A good project manager must have all of the above mentioned skills. Out of these, the communication skills are the most important skills for a project manager. Communications skills are part of general management skills and are used to exchange information. Communication has many dimensions: Written and oral, listening, and speaking Internal (within the project) and external (customer, the media, the public) Formal (reports, briefings) and informal (memos, ad hoc conversations) Vertical (up and down the organization) and horizontal (with peers) Communication is the most important skill that a project manager must posses. It is the single most important characteristics of a top-class project manager. Project managers must communicate well in order to integrate and maximize the performance of team members. Oral and written communications are the backbone of every successful project. During different phases of a project, a project manager requires to communicate through different manners (for example, documentation, meeting updates, etc.) and he must ensure that the information communicated is explicit, clear, and complete. Answer options E, C, A, and B are incorrect. All these mentioned skills make a person a good project manager. Communication skills top the list. What are organizational skills? Organizational skills are part of management skills to organize various aspects of a project in order to complete it successfully. A good project manager uses these skills to successfully organize his meetings, as well as to keep documentations, quotes, contracts, etc., which can be fetched at any given moment. Organizational skills also include planning and time management skills. What are budgeting skills? Budgeting skills include the knowledge of finance and accounting principles. A project manager must possess these skills in order to perform cost estimates for project budgeting. Reading and understanding quotes, preparing purchase orders, and reconciling purchase invoices are all part of budgeting skills. In order to make the budget of a project, the project manager must have excellent budgeting skills. What are problem solving skills? Problem solving skills include the ability to define and analyze problems, and to take decisions in order to solve the problems by implementing those decisions. Every project manager must possess strong problem solving skills. Problem solving is a two-fold process: Defining the problem Taking a decision and then implementing it A project manager is responsible for determining the best course of action to take in order to resolve the problem. What are negotiating and influencing skills? Negotiating skills includes demanding and convincing others for the rightful thing or act. A project manager needs this skill to negotiate on projects in almost every area such as scope definitions, budgets, contracts, resource assignments, schedules, etc. Influencing skills include the convincing power of a person. It is an ability to change minds and the course of events. A good project manager requires these skills to utilize them in all areas of project management.

• Question 273:

  Which of the following documents captures and defines the work activities, deliverables, and a timeline that a vendor will execute against in performance of work for a customer?

  A. Project charter

  B. Scope of statement

  C. SOW

  D. WBS

  Correct Answer: C

  A statement of work (SOW) is a document that captures and defines the work activities, deliverables and timeline that a vendor will execute against in performance of work for a customer. Detailed requirements and pricing are usually specified in it, along with many other terms and conditions. SOW is a narrative description of products or services to be supplied by the project. For internal projects, the project initiator or sponsor provides the statement of work based on business needs, product, or service requirements. For external projects, the statement of work can be received from the customer as part of a bid document. Answer option B is incorrect. Scope of statement gives the narrative description of the project scope. Answer option A is incorrect. Project charter is a document that formally authorizes a project manager to work on a project. Answer option D is incorrect. WBS is a tool that defines a project and groups the project discrete work in a way that helps organize and define the total work scope.

• Question 274:

  Laura is the project manager for her organization and management has requested her to create a report on her project's performance. Laura needs to analyze her current project performance and then compare it against what, in order to create a performance report?

  A. Cost variances and Cost Performance Index

  B. Scope baseline

  C. Performance measurement baseline

  D. Schedule variances, planned value, and the Schedule Performance Index

  Correct Answer: C

  The performance measurement baseline, which can be comprised of cost, scope, and schedule, is the foundation for creating a performance report.

  Answer option B is incorrect. The scope baseline will only reflect the performance of the scope, whereas performance reports typically need scope, time, and cost as its foundation. Answer option A is incorrect. Cost variances and the cost

  performance index are cost values that must be considered along with the scope performance and schedule performance. Answer option D is incorrect. Only reporting performance on the schedule is not enough for a performance report.

  Laura should also report on scope and cost at a minimum.

• Question 275:

  Ben is the project manager of the NHF Project for his organization. Some delays early in the project have caused the project schedule to slip by nearly 15 percent. Management would like Ben to find a method to recoup the schedule slippage and to get the project back on track. Management is risk- adverse with this project. Which of the following methods should Ben avoid to recoup the project time?

  A. Crashing

  B. Fast tracking

  C. Critical chain methodology

  D. Adding lead time

  Correct Answer: B

  Of all the choices, Ben should avoid fast tracking, as it allows complete phases of the project to overlap, and this increases project risks. Management wants to avoid risks, so fast tracking would not be helpful. Fast tracking is a technique for

  compressing project schedule. In fast tracking, phases are overlapped that would normally be done in sequence. It is shortening the project schedule without reducing the project scope.

  Answer option A is incorrect. Crashing adds people and costs but is relatively safe in regard to risks. Answer option C is incorrect. Critical chain is not a schedule compression technique and would not necessarily help the project get back on

  schedule.

  Answer option D is incorrect. Lead time, similar to fast tracking, can increase project risks; however, fast tracking is more risky than lead time. Lead time allows individual activities to overlap, while fast tracking allows entire project phases to

  overlap.

• Question 276:

  John works as a Project Manager for Blue Well Inc. He is measuring cost efficiency of his project. The key values are provided in the table below:

  

  What is the cost performance index (CPI) of the project at the current point of time?

  A. 0.96

  B. 1.082

  C. 0.833

  D. 1.0625

  Correct Answer: C

  According to the question, you are required to calculate the cost performance index (CPI) of the project. Cost performance index (CPI) is used to calculate performance efficiencies. It is used in trend analysis to predict future performance. CPI is the ratio of earned value to actual cost. The CPI is calculated based on the following formula: CPI = Earned Value (EV) / Actual Cost (AC) If the CPI value is greater than 1, it indicates better than expected performance, whereas if the value is less than 1, it shows poor performance. The CPI value of 1 indicates that the project is right on target. Here, CPI is as follows: CPI = EV / AV = 425/510 = 0.833 As the CPI (0.833) is less than 1, it shows that the schedule performance is below expectation. What is BCWP (or EV)? Budgeted cost of work performed (BCWP) or Earned Value (EV) is the value of completed work. It is the budgeted amount for the work actually completed on the schedule activity during a given time period. What is BCWS (or PV)? Budgeted Cost of Work Scheduled (BCWS) or Planned Value (PV) is the authorized budget assigned to the scheduled work to be accomplished for a schedule activity or Work Breakdown Structure (WBS) component. What is ACWP (or AC)? Actual cost of work performed (ACWP) or Actual Cost (AC) is the total costs actually incurred and recorded in accomplishing work performed during a given time period for a schedule activity. It is the cost of the work to date, including direct and indirect costs. AC is money that has actually been expended to date.

• Question 277:

  Beth is the project manager for the NHQ project. This project deals with fiber optic cabling in her organizational campus. Tim is the electrical engineer for her company and is the only internal resource that can complete several of the project activities that deal with the fiber optic cables. Because Tim is a highly- skilled resource, he is already scheduled on several projects within the organization and is not available when Beth needs him to complete some of the project activities. This is an example of which term?

  A. Resource calendar conflict

  B. Matrix network

  C. Organizational process assets

  D. Activity resource requirements

  Correct Answer: D

  Because the activities in Beth's project require Tim and his skills. This is an example of an activity resource requirement. A resource constraint would also have been an acceptable answer. Answer option B is incorrect. This may be a matrix

  organization, but matrix network is not a valid project management term. Answer option C is incorrect. Organizational process assets are things that have been created to help assist the management of the project.

  Answer option A is incorrect. A resource calendar conflict is not a valid project management term.

• Question 278:

  Which of the following are the inputs to the Develop Project Charter process? Each correct answer represents a complete solution. Choose all that apply.

  A. Procurement document

  B. Contract

  C. Business case

  D. Project statement of work

  Correct Answer: BCD

  The Develop Project Charter process documents the formal authorization of a project or a phase. It also documents initial requirements that satisfy the stakeholder's needs and expectations. It is used to validate the decisions made during the previous iteration of the Develop Project Charter process. The various inputs of this process are as follows: Project statement of work Business case Contract Enterprise environmental factors Organizational process assets The output of the Develop project Charter process is as follows: Project charter Answer option A is incorrect. Procurement document is the input of the Identify Stakeholders process.

• Question 279:

  John works as the project manager for Honeywell Inc. He is involved in the periodic collection and analysis of baseline versus actual data to understand and communicate the project progress. Which of the following techniques is used in generating performance reports?

  A. Work performance information

  B. Change requests

  C. Work performance measurements

  D. Forecasting method

  Correct Answer: D

  Forecasting method is a technique used in generating performance reports. Forecasting is the process of estimating or predicting in unknown situations. Forecasting is about predicting the future as accurately as possible with the help of all the information available, including historical data and knowledge of any future events that might impact forecasts. The forecasting methods are categorized as follows: Time series method: It uses historical data as the basis for estimating future outcomes. Causal/ econometric method: This forecasting method is based on the assumption that it is possible to identify some factors that might influence the variable that is being forecasted. If the causes are understood, projections of the influencing variables can be made and used in the forecast. Judgmental method: Judgmental forecasting methods incorporate intuitive judgments, opinions, and subjective probability estimates. Other methods: Other methods may include probabilistic forecasting, simulation, and ensemble forecasting. It is one of the tools and techniques of the report performance process. Answer option A is incorrect. Work performance information is the data gathered on the status of the project schedule activities that are performed to accomplish the project work. This data is collected as part of the Direct and Manage Project Execution processes. WPI includes the following: Deliverables status Schedule Progress Costs incurred It is used as an input in generating the report performance process. Answer option C is incorrect. Work performance measurements are created from the work performance information. WPMs are an output of Control schedule, Control cost, and Control scope processes, which are monitoring and controlling processes. WPMs consist of planned versus actual performance indicators with respect to scope, schedule, and cost. They are documented and communicated to the stakeholders and are used to make project activity metrics, such as the following: Planned vs. Actual Technical performance and Scope performance Planned vs. Actual Schedule performance Planned vs. Actual Cost performance They are used as an input in generating the report performance process. Answer option B is incorrect. Change requests are requests to expand or reduce the project scope, modify policies, processes, plans, or procedures, modify costs or budgets or revise schedules. These requests for a change can be direct or indirect, externally or internally initiated, and legally or contractually imposed or optional. A Project Manager needs to ensure that only formally documented requested changes are processed and only approved change requests are implemented. It is an output of the report performance process.

• Question 280:

  You are the project manager of the NHQ project. Your project has a budget of $1,258,456 and is scheduled to last for three years. Your project is currently forty percent complete though it should be forty- five percent complete. In order to reach this point of the project, you have spent $525,000. Management needs a performance report regarding the NHQ project. Management is concerned that this project will be over budget upon completion. What is the estimate at completion for this project that you will need to report to management?

  A. -$62,922.80

  B. $1,312,504

  C. $1,525,000

  D. $787,504

  Correct Answer: B

  The estimate at completion can be calculated by dividing the budget at completion by the cost performance index. Here, CPI =EV/AC=(0.40*1,258,456)/525000 = 0.95882 EAC = BAC/CPI = 1,258456/0.95882 = 1,312,504 What is Estimate at Completion (EAC)? Estimate at Completion (EAC) is a field that displays the final cost of the project including the actual costs and the forecast of remaining costs based on the cost performance index (CPI) so far. The formula used to calculate this estimate is as follows: ACWP+(BAC-BCWP)/CPI Answer option D is incorrect. $787,504 is the estimate to complete. Answer option A is incorrect. -$62,922.80 is the schedule variance. Answer option C is incorrect. This is not a valid calculation for this question.