1. Of the following, which one is the best example of progressive elaboration?

1. 1. Of the following, which one is the best example of progressive elaboration? A. It is a process of decomposing the work into small, management tasks. B. It is the process of taking a project from concept to completion. C. It is the process of taking a project concept to a project budget. D. It is the process of identifying the business needs of a potential project. B. It is the process of taking a project from concept to completion. According to the PMBOK, progressive elaboration means developing in steps and then continuing by increments. 5/30, 6/6, and 6/13/09 www.TAPaPM.org 1

2. 2. A PM and he team identify several specific risks in a project. The EMV of these risks is estimated at $10,000. The impact on the project brought about by these risks is estimated at $40,000. What value should be entered into the management reserve for these risks? $10,000 $40,000 $0 $25,000 • C. • Solution: The management • reserve is the money that is • set aside for dealing with • unknown risks. These • unknown risks can not be • specifically identified. The • risks mentioned in the • question are identified and • therefore no money should • be put in the management • reserve for them. 5/30, 6/6, and 6/13/09 www.TAPaPM.org 2

3. 3. Which of the following is an example of operations? A. Creating a new community park. B. Designing a new car. C. Sending monthly invoices to an organization's 25,000 customers. D. Removing an old server and replacing it with a new one. C. Sending monthly invoices to an organization's 25,000 customers because that is work that is done every month. 5/30, 6/6, and 6/13/09 www.TAPaPM.org 3

4. 4. The Triple Constraints of Project Management is a theory which posits that _____ , and _____, and _____ are three constraints that every project has. A. time, cost, integration management B. risk, procurement, time C. cost, scope, quality D. time, cost, scope D. time, cost, scope 5/30, 6/6, and 6/13/09 www.TAPaPM.org 4

5. 5. Five activities are to be completed in sequence. Each has a Finish-Start relationship with the next activity. Each has one day of total float. As of today, task one and two have been completed on schedule. How many days of float remain in the schedule for these tasks? Two One Zero Four • B. • Solution: Although total float is assigned to each activity in the sequence, the total float can be used by anyone of them and it can be used only one time by any of them. If the activities are A B C D Eand each has one day of float, id A is delayed by one day, the total float at B C D E reduces to Zero. 5/30, 6/6, and 6/13/09 www.TAPaPM.org 5

6. 6. Following is the cash flow estimates of a project: Year Cash-In Cash-out $ 0 500,000 300,000 90,000 400,000 100,000 4 100,000 175,000 5 50,000 35,000 What is the net cash flow at the end of 5 years? $ 50,000 -$50,000 $850,000 $100,000 • b. • Solution: Net cash flow is total of all Cash-Flows in and out caused by the project. i.e. • Total Cash Flow In • = $850,000 • Total Cash Flow Out • = $900,000 • Net= Out is greater by • $50,000 (-ve) 5/30, 6/6, and 6/13/09 www.TAPaPM.org 6

7. 7. Which one of the following is NOT a characteristic a project's cultural and social environment? A. Economics B. Time zone differences C. Demographics D. Ethics B. Time zone differences 5/30, 6/6, and 6/13/09 www.TAPaPM.org 7

8. www.TAPaPM.org • A. Contract Closeout is performed before administrative Closeout • 8. Which of the following is not true about the Close Project process? • Contract closeout must be performed after the Administrative Closeout. • The risk is the lowest at this stage of the project. • The probability of completion is the highest at this stage of the project. • Stakeholders have least amount of influence at this stage.

9. 9. You have an excellent idea for a new project that can increase productivity by 20% in your organization. Management, however, declined to approve the proposed project because too many resources are already devoted to other projects. You have just experienced what? A. Parametric modeling B. Management by exception C. Project Portfolio management D. Management reserve C. Project Portfolio management is the management, selection, and assignment of projects that support an organization's business objectives. 5/30, 6/6, and 6/13/09 www.TAPaPM.org 9

10. www.TAPaPM.org • A. Applying professional knowledge involves staying abreast of project management practices, industry trends, and new technology and honestly reporting your experiences. • 10 . As a PMP, you are required to comply with the PMPCode of Professional Conduct. Part of your responsibility concerns applying professional knowledge. All of the following are part of applying professional knowledge except for which one? • Developing relationships based on mutual respect • Staying abreast of project management practices • Keeping up with industry trends and new technology • Honestly reporting your project management experience

11. www.TAPaPM.org • A. The Executing process group and Monitoring and Controlling process group serve as inputs to each other. • 11. Which of the following processes serve as inputs to each other? • Executing, and Monitoring and Controlling • Executing and Closing • Planning, and Monitoring and Controlling • Executing and Initiation

12. 12. A PM and he team identify several specific risks in a project. The EMV of these risks is estimated at $10,000. The impact on the project brought about by these risks is estimated at $40,000. What value should be entered into the contingency reserve for these risks? $10,000 $40,000 $0 $25,000 • A. Solution: The contingency reserve is • the money that is set aside for dealing • with known risks. These known risks can • be specifically identified. The risks • mentioned in the question are identified • and therefore money should be put in • the contingency reserve for them. It • would not make sense to budget for the • impact of every risk, since all risks have • a probability associated with them that • means there is a chance that the impact • will not occur; therefore, the expected • value should be used. 5/30, 6/6, and 6/13/09 www.TAPaPM.org 12

13. 13.A project team has a programmer on the team. The programmer will work on the project for 26 weeks as a full time member. Her utilization is 72%, productivity is 80%, basic wages are $50 per hour, fringe benefits are 30%, and overhead costs are 50% of wages plus fringe benefits. Use a 40-hour work week. What is the cost of this employee for the project? $136,760 $126,750 $176,041 $101,400 d. Solution: The programmer will be paid for 26-weeks of work. The productivity and utilization factors affect the amount of time that someone is paid in comparison to the hours of effort required to complete the work. In this case the utilization and productivity are not required to calculate the cost: 26 weeks x 40 hours per week x $50 per hour x 1.3 fringe benefits x 1.5 overhead = $101,400 5/30, 6/6, and 6/13/09 www.TAPaPM.org 13

14. 14. A project team has a programmer on the team. The programmer will work on the project for 26 weeks as a full time member. Her utilization is 72%, productivity is 80%, basic wages are $50 per hour, fringe benefits are 30%, and overhead costs are 50% of wages plus fringe benefits. Use a 40-hour work week. One of the activities this person is assigned requires 100 hours of effort. What is the cost of the activity? $12,187 $16,927 $9,750 $13,541 b. Solution:To calculate the cost of 100 hours of effort we must adjust for the person’s utilization and productivity. People of lower productivity take longer to do work and make more mistakes but usually cost less since they are usually younger and less experienced. This can often be economical. The calculation is: 100 hours x 0.72 x 0.8 x $50 per hour x 1.3 fringe benefits x 1.5 overhead = $16,927 5/30, 6/6, and 6/13/09 www.TAPaPM.org 14

15. www.TAPaPM.org • A. The most difficult aspect of the Direct and Manage Project Execution process is coordinating and integrating all the project elements. The clue to this question is in the next-to-last sentence. • 15. You are a project manager for a growing dairy farm. It offers its organic dairy products regionally and is expanding its operations to the West Coast. It’s in the process of purchasing and leasing dairy farms to get operations under way. The subproject manager in charge of network operations has reported some hardware problems to you. You’re also having some other problems coordinating and integrating other elements of the project. Which of the following statements is true? • You are in the Direct and Manage Project Execution process. • Your project team doesn’t appear to have the right skills and knowledge needed to perform this project. • You are in the Information Distribution process. • Your project team could benefit from some team-building exercises.

16. www.TAPaPM.org • B. Theory Y managers believe that people will perform their best if they’re provided with the proper motivation and the right expectations. • 16. Theory Y managers believe which of the following? • People are motivated only by money, power, or position. • People will perform their best if they’re given proper motivation and expectations. • People are motivated to achieve a high level of competency. • People are motivated by expectation of good outcomes.

17. 17 .An activity was scheduled to use two persons, full time, and take two weeks to complete. Instead, the PM was only able to assign one person to this activity. At the end f two weeks, the person assigned to the task was 75% complete. What is the cost performance index? 0.75 1.5 1.33 0.5 • B. • Solution: At the two weeks • this activity is 75% complete. • The PV was to be 4 person- • weeks, two persons working • full time for two weeks. The • EV is therefore 3 person • weeks, 0.75 x4. The AC is 2 • person-weeks. The cost- • Performance Index CPI is: • CPI= EV/AC = 3 p-w/2 p-w =1.5 5/30, 6/6, and 6/13/09 www.TAPaPM.org 17

18. www.TAPaPM.org • A. The most correct response is to first provide training to your team members to teach them how to respect and work with others from different cultures. Collocation may not be possible when you’re working with team members from two different countries. Team-building exercises are a good idea as well but are not your first course of action. • 18. Your upcoming project includes project team members from a foreign country. In order to make certain that cultural differences don’t interfere with team performance, thereby affecting the success of the project, your first course of action is to do which of the following? • Provide diversity training to all the team members. • Collocate the project team. • Perform team-building exercises. • Inform the team members of the organization’s rules and standards.

19. 19. On a Software Development Project, there is a new computer available which will speed up the development process considerably. The new computer costs $50,000 including shipping, installation, and start-up. The computer will cause a gross savings of $100,000. What is the NPV of the savings if they occur one year after the expenditure of the computer with a 10% interest rate? $90,000 $40,909 $45,555 $91,110 b. Solution: NPV formula is: FV = PV (1+r)ⁿ Thus NPV = FV / (1+r)ⁿ Substituting the values: NPV =100,000/1.1 = 90,909 Net Savings are thus: $90,909 - $50,000 = $40,909 NOTE: All negative cash flow occurs at the beginning of the year when the machine is purchased and that the +ve cash flows all occur at the end of one year. 5/30, 6/6, and 6/13/09 www.TAPaPM.org 19

20. 20. Which of the following is likely to be part of an operation? A. Providing electricity to a community B. Designing an electrical grid for a new community C. Building a new dam as a source of electricity D. Informing the public about changes at the electrical company. A. Providing electricity to a community is the best example of operations as it is an ongoing activity. 5/30, 6/6, and 6/13/09 www.TAPaPM.org 20

21. www.TAPaPM.org • A. You are not responsible for the personal integrity of others, but as project manager you do have influence over others, such as your project team members. • 21. As a project manager, you’re responsible for maintaining and ensuring integrity for all of the following except which one? • Personal integrity of others • Project management process • Personal integrity • Product integrity

22. www.TAPaPM.org • C. War room is used for collocation to facilitate communication within the team. • 22. Which of the following best describes the purpose of a war room? • A war room is used for meetings between the Project Manager and the customer. • A war room is used for important meetings between the Project team and the senior management. • A war room is used for collocation • Whenever there is a resource conflict between different Project Managers, they meet in a war room.

23. 23. Given the following estimates (O,M,P) which is likely the highest risk activity? 2, 3, 8 3, 5, 7 4, 6, 9 8, 9, 11 A. The activity with the highest variance is most risky, i.e. Te and V for these are: • 3.6, 1 • 5.0, 0.4 • 6.1, 0.7 • 9.2, 0.25 5/30, 6/6, and 6/13/09 www.TAPaPM.org 23

24. 24. A PM is using the earned value reporting system to manage his project. At this point in time the EV is $24,000, the BAC is $97,000, the PV is $29,000, and the AC is $45,000. What is the percent complete? 30% 25% 46% 53% b. Solution: The percent complete is the work completed, earned value divided by the total work to be done. EV / BAC = percent complete PC = $24,000/$97,000 = 25% 5/30, 6/6, and 6/13/09 www.TAPaPM.org 24

25. 25. Where will a project manager most likely get project management mentoring? A. Project Management International B. American Society for Quality C. The PMO D. Subject matter experts C. The PMO 5/30, 6/6, and 6/13/09 www.TAPaPM.org 25

26. 26. In which process group will the project team be acquired? A. Initiating B. Planning C. Executing D. Monitoring and Controlling C. The project team is required in executing process group. A, B, D are all incorrect because the team is not acquired during these groups. 5/30, 6/6, and 6/13/09 www.TAPaPM.org 26

27. www.TAPaPM.org • B. • 12 team members, 5 sponsors and a project mgr. That’s 18 people. • n*(n-1)/2 is • 18*17/2=153 • 27. You (PM) are working at a large company. You have a 24-person team working on a project with five major sponsors. The company announces layoffs, and your team is reduced to half its size. How many lines of communication are on your new team? • 66 • 153 • 276 • 406

28. www.TAPaPM.org • A. Purchase Order • 28. You are planning to buy ten desktops for $1500 each from a leading computer store. Which type of contract will get signed in this case? • Purchase Order • Cost plus Fee • Fixed cost • Time and Material

29. www.TAPaPM.org • D • 29. Which communication processes are in the Monitoring & Controlling process domain? • Information distribution, Performance Reporting • Manage Stakeholders, Information distribution • Communication Planning, Performance Reporting • Performance Reporting, Manage Stakeholders

30. www.TAPaPM.org • A. During the Request Seller process, bidders can clarify their doubts using bidder conference. • 30. Alice is a Project Manager. She is coordinating a bidder conference to allow vendors to get clarification on the work that needs to be performed. Which phase of Project Management is in progress. • Request Seller Process • Plan Contracting • Select Sellers • Contract Administration

31. www.TAPaPM.org • Free Pass. • Collect $25,000 from the CFO and proceed to the next phase. • 31. Pass on the next phase, no process at the moment.

32. 32. A project team receives an approved change request from the customer. The team has previously estimated that the cost to implement this change is $10,000. The customer has agreed to pay this amount for the additional work. The customer realizes that there is a 50% chance that this change will not work and will later be removed. What change, if any, should be made in the budget? Budget should not be increased Should be increased by $15,000 Should be increased by $10,000 Should be increased by $5,000 • c. • Solution: The project budget • should be increased by $10,000 • because the only work actually • approved at this time is the change • notice for the work to be done. If • the work done must be undone at a • later time and additional work is • required to do it, another change • notice must be approved and • funding added to the project • budget. 5/30, 6/6, and 6/13/09 www.TAPaPM.org 32

33. 33. You are holding end-of-phase meetings with your team members and key stakeholders to learn what has hindered and helped the project team’s performance of the work. All of the following are true regarding this situation except for which one? • The information learned from these meetings concerns processes and activities that have already occurred, so it should be documented because the information is only useful for future projects. • These meetings are called lessons learned meetings and they’re a tool and technique of the Information Distribution process. They’re also a good team-building activity. • Project reports, part of the organizational process output of the Information Distribution process, include status meetings and lessons learned (which this question describes). • These meetings should be documented as part of the lessons learned documentation, which is an element of the organizational process assets updates output of the Information Distribution process. www.TAPaPM.org

34. Ans. For 33.A. Lessons learned (which is what this question describes) are useful for future processes and activities for the current project as well as future projects.

35. 34. When is a project manager selected? A. Planning phase B. Executing phase C. Initiation phase D. When the project charter is approved • C. Project manager is selected during initiation process group. • A, B, D are all false because they don't define when project manager is selected. 5/30, 6/6, and 6/13/09 www.TAPaPM.org 35

36. 35. A construction company is being measured by the earned value reporting method. During the project one of the activities, installing ten elm trees, was completed. The planned value for this activity was $4,000, and it was completed two weeks ago. Unfortunately for the contractor, maple trees should have been planted. The customer insists that maple trees be planted and that the elm trees be removed. As of this time the elm trees are still in the ground, but the contractor has agreed to do the work of replacing them. What action should be taken on the earned value report? • Reduce PV by $4,000 • Reduce Ac by $4,000 • Reduce EV by $4,000 • Make no change sine vendor has agreed to fix the problem • C. Solution: • The EV should be reduced by the amount of $4,000 already credited to the earned value report for planting the trees. The AC should not be reduced and since there is no increase in budget the PV will not be changed. When the vendor installs the new trees, the $4,000 will be added to the EV once again. 5/30, 6/6, and 6/13/09 www.TAPaPM.org 36

37. 36. Using PERT calculations for a project the Variance is 25 and Duration is 169 days. What is the range of values for 95% probability actual completion? 164 – 173 days 144 – 194 days 119 - 219 days 159 – 179 days • D. • Solution: • D = Te +/- Z x Sqrt. V • D(95%) = 169+/-2x 5 • = 169+/-10 • = 159 – 179 • Remember: • Z=Prob. Factor (95%) • = 2 (approx) • V= 25, thus SQRT(V)=5 5/30, 6/6, and 6/13/09 www.TAPaPM.org 37

38. 37. You are the project manager of the KHGT Project, which will span 4 countries around the world. You will need to consider all of the following characteristics of the international and political environment EXCEPT for which one? A. International, national, regional, and local laws B. Customs C. Customers D. Holidays C. Customers 5/30, 6/6, and 6/13/09 www.TAPaPM.org 38

39. 38. Which process aims to eliminate causes of unsatisfactory performance? • A. Scope verification • B. Scope validation • C. Quality control • D. Cost control • C. • Quality control aims to eliminate causes of unsatisfactory performance; process is part of monitoring and controlling process group. • A aims for scope acceptance decisions • B is not a valid PMI term • D is concerned with controlling project costs. 5/30, 6/6, and 6/13/09 www.TAPaPM.org 39

40. 39. What is the probability of risk with an expected value of $3000 and impact of $5000? • 0.40 • 0.50 • 0.60 • 0.80 C. Use the formula: EMV= Prob. X Impact Probability: EMV Impact = 3000/5000 = 0.60 5/30, 6/6, and 6/13/09 www.TAPaPM.org 40

41. 40. You are the project manager of a new project. You have worked with management to identify initial assumptions and constraints for your project. Where will these items be documented? A. Project management plan B. Project scope statement C. Project charter D. Risk management plan C. Initial constraints and assumptions are documented in the project charter. A, B, D are all incorrect choices because the initial constraints and assumptions are documented in the project charter, not the project management plan, project scope statement, or risk management plan. 5/30, 6/6, and 6/13/09 www.TAPaPM.org 41

42. 41. Following is the cash flow estimates of a project: Year Cash-In Cash-out 1 $ 0 500,000 300,000 90,000 400,000 100,000 100,000 175,000 50,000 35,000 What is the payback period? One Year Two Years Three Years Four Years • C. • Solution: It is between 2-3 years. It is 2 and 29/30th of a year. • Cumulative Cash Flow in years are: • Year 1: -500,000 • Year 2: -290,000 • Year 3: +10,000 5/30, 6/6, and 6/13/09 www.TAPaPM.org 42

43. 42. Which problem solving technique is the best for most project management situations? A. Confronting B. Compromising C. Forcing D. Avoiding • A: Confronting is the best problem-solving technique because it meets problems directly. • B is incorrect; compromising requires both sides on an argument to give up something. • C is incorrect; forcing requires project managers to force a decision based on external inputs such as seniority, experience, etc. • D is incorrect; avoiding ignores the problem and doesn't solve it. 5/30, 6/6, and 6/13/09 www.TAPaPM.org 43

44. 43. The Work Authorization System: Ensures that every work pkg is performed at the right time & in the proper sequence. Authorize the project mgr to spend $$ on work. Is a set of processes & tools that aids project mgr in effectively guiding the project to completion. Is a formalized, written description of how to carry out an activity. A. See glossary, Pg. 379 in PMBOK. 5/30, 6/6, and 6/13/09 www.TAPaPM.org 44

45. 44. When does the vast majority of a project's budget get expended? A. During planning process group activities B. During execution process group activities C. During initiation process group activities D. During procurement process group activities • B. During execution process group activities • A, C, D are all incorrect because the vast majority of a project's budget isn't consumed during these process groups. 5/30, 6/6, and 6/13/09 www.TAPaPM.org 45

46. 45. Which process group can provide feedback between project phases? A. Planning B. Executing C. Monitoring and controlling D. Closing • C. Monitoring and controlling • A , B, and D are all incorrect because these process groups do not provide feedback between process phases. 5/30, 6/6, and 6/13/09 www.TAPaPM.org 46

47. 46. A PM looks at her schedule and sees that there has been a delay in completing an activity. It seems practical to move a person from another activity who is an expert on the work that is behind. There is a choice of using two different persons who are working two different activities. One person is working on an activity that has 5 days of free float and the other is working on an activity that has 8 days of total float and no free float. Which person should be used to help out? Person w/ free float of 5 days Person w/ total float of 8 days Either person Person from outside the project • A. • The person w/ 5 days of free float can be used • on the activity in trouble for 5 • days w/o affecting the other • activity schedules in the project. • The person with total float of 8 • days can be used but since he • has zero free float for his task, • there will have to be a • rescheduling of other activities • to allow this. 5/30, 6/6, and 6/13/09 www.TAPaPM.org 47

48. www.TAPaPM.org • C. Really a question on inputs/outputs. The only process that takes ‘requested changes’ as an input is Integrated Change Control. That’s where changes get approved. Other answers refer to other processes. A is Developing Prelim Scope statement, B & D are both Direct & Manage Execution. • 47. You’ve just received a change request. This means: • The project charter is complete, but the work cannot begin yet because you need to make a change to the prelim scope statement. • You are in Direct & Manage Execution process, and you can implement the change now. • The change needs to be approved before it can be implemented. • There is a defect in a deliverable that must be repaired.

49. 48. A PM is considering applying learning curve theory to his project. The project involves designing a number of software modules that are very similar. According to the cost figures that have been collected the first unit required 100 person-hours to design and test. The second unit required 90 person-hours to design and test. • How many person-hours will the eighth module take to design and test? • 90 • 100 • 73 • 172 C. According to the learning curve theory, the cost of a unit of production, the software module, will decrease by a fixed percentage for each doubling of the units produced. Since from 1 to unit 2 there was a 10% change in cost, the fix percentage of reduction in cost was 90%. For unit 4, cost would be 81 person-hours, 90% of 90 person-hours. For unit 8, it would be 90% of 81, or 73 person-hours. 5/30, 6/6, and 6/13/09 www.TAPaPM.org 49

50. www.TAPaPM.org • D. • Closed contracts are an output of the Contract Closure process. Formal acceptance is part of the final product, service, or result output. Lessons learned are part of organizational process assets updates. • 49. The outputs of the Close Project process include all of the following except for which one? • Administrative closure procedure • Formal acceptance • Lessons learned • Closed contracts