CAPM : Certified Associate in Project Management (PMI-100) : Part 02

CAPM : Certified Associate in Project Management (PMI-100) : Part 02

1. A project manager providing information to the right audience, in the right format, at the right time is an example of which type of communication?

   • Efficient
   • Effective
   • Push
   • Pull

   Explanation:
   On most projects, communication planning is performed very early, such as during project management plan development. This allows appropriate resources, such as time and budget, to be allocated to communication activities.
   Effective communication means that the information is provided in the right format, at the right time, to the right audience, and with the right impact. Efficient communication means providing only the information that is needed.

2. Scope, schedule, and cost parameters are integrated in the:

   • Performance measurement baseline.
   • Analysis of project forecasts.
   • Summary of changes approved in a period.
   • Analysis of past performance.
   Explanation:
   Performance Measurement Baseline (PMB). An approved, integrated scope-schedule-cost plan for the project work against which project execution is compared to measure and manage performance. The PMB includes contingency reserve, but excludes management reserve.

3. A project in which the scope, time, and cost of delivery are determined as early as possible is following a life cycle that is:

   • Adaptive
   • Predictive
   • Incremental
   • Iterative
   Explanation:

   2.4.2.2 Predictive Life Cycles
   Predictive life cycles (also known as fully plan-driven) are ones in which the project scope, and the time and cost required to deliver that scope, are determined as early in the project life cycle as practically possible. As shown in Figure 2-13, these projects proceed through a series of sequential or overlapping phases, with each phase generally focusing on a subset of project activities and project management processes. The work performed in each phase is usually different in nature to that in the preceding and subsequent phases, therefore, the makeup and skills required of the project team may vary from phase to phase.

   

4. What is the schedule performance index (SPI) if the planned value (PV) is $100, the actual cost (AC) is $150, and the earned value (EV) is $50?

   • 0.50
   • 0.67
   • 1.50
   • 2.00
   Explanation:
   CV = EV – AC
   CPI = EV / AC
   SV = EV – PV
   SPI = EV / PV

5. Which item is an input to the Define Activities process?

   • Schedule data
   • Activity list
   • Risk register
   • Scope baseline
   Explanation:

   5.4.3.1 Scope Baseline
   The scope baseline is the approved version of a scope statement, work breakdown structure (WBS), and its associated WBS dictionary, that can be changed only through formal change control procedures and is used as a basis for comparison. It is a component of the project management plan. Components of the scope baseline include:
   – Project scope statement. The project scope statement includes the description of the project scope, major deliverables, assumptions, and constraints.
   – WBS. The WBS is a hierarchical decomposition of the total scope of work to be carried out by the project team to accomplish the project objectives and create the required deliverables. Each descending level of the WBS represents an increasingly detailed definition of the project work. The WBS is finalized by assigning each work package to a control account and establishing a unique identifier for that work package from a code of accounts. These identifiers provide a structure for hierarchical summation of costs, schedule, and resource information. A control account is a management control point where scope, budget, actual cost, and schedule are integrated and compared to the earned value for performance measurement. Control accounts are placed at selected management points in the WBS. Each control account may include one or more work packages, but each of the work packages should be associated with only one control account. A control account may include one or more planning packages. A planning package is a work breakdown structure component below the control account with known work content but without detailed schedule activities.
   – WBS dictionary. The WBS dictionary is a document that provides detailed deliverable, activity, and scheduling information about each component in the WBS. The WBS dictionary is a document that supports the WBS. Information in the WBS dictionary may include, but is not limited to:
   ○ Code of account identifier,
   ○ Description of work,
   ○ Assumptions and constraints,
   ○ Responsible organization,
   ○ Schedule milestones,
   ○ Associated schedule activities,
   ○ Resources required,
   ○ Cost estimates,
   ○ Quality requirements,
   ○ Acceptance criteria,
   ○ Technical references, and
   ○ Agreement information

   Process: 6.2 Define Activities
   Definition:  The process of identifying and documenting the specific actions to be performed to produce the project deliverables.
   Key Benefit: The key benefit of this process is to break down work packages into activities that provide a basis for estimating, scheduling, executing, monitoring, and controlling the project work.
   Inputs
   1. Schedule management plan
   2. Scope baseline
   3. Enterprise environmental factors
   4. Organizational process assets
    
   Tools & Techniques
   1. Decomposition
   2. Rolling wave planning
   3. Expert judgment
    
   Outputs
   1. Activity list
   2. Activity attributes
   3. Milestone list

6. When alternative dispute resolution (ADR) is necessary, which tool or technique should be utilized?

   • Interactive communication
   • Claims administration
   • Conflict management
   • Performance reporting
   Explanation: 
   12.3.2.6 Claims Administration
   Contested changes and potential constructive changes are those requested changes where the buyer and seller cannot reach an agreement on compensation for the change or cannot agree that a change has occurred. These contested changes are variously called claims, disputes, or appeals. Claims are documented, processed, monitored, and managed throughout the contract life cycle, usually in accordance with the terms of the contract. If the parties themselves do not resolve a claim, it may have to be handled in accordance with alternative dispute resolution (ADR) typically following procedures established in the contract. Settlement of all claims and disputes through negotiation is the preferred method.

7. Which quality management and control tool is useful in visualizing parent-to-child relationships in any decomposition hierarchy that uses a systematic set of rules that define a nesting relationship?

   • Interrelationship digraphs
   • Tree diagram
   • Affinity diagram
   • Network diagram
   Explanation:
   8.2.2.1 Quality Management and Control Tools
   The Perform Quality Assurance process uses the tools and techniques of the Plan Quality Management and
   Control Quality processes. In addition, other tools that are available include (see also Figure 8-10):
   – Affinity diagrams. The affinity diagram is similar to mind-mapping techniques in that they are used to generate ideas that can be linked to form organized patterns of thought about a problem. In project management, the creation of the WBS may be enhanced by using the affinity diagram to give structure to the decomposition of scope.
   – Process decision program charts (PDPC). Used to understand a goal in relation to the steps for getting to the goal. The PDPC is useful as a method for contingency planning because it aids teams in anticipating intermediate steps that could derail achievement of the goal.
   – Interrelationship digraphs. An adaptation of relationship diagrams. The interrelationship digraphs provide a process for creative problem solving in moderately complex scenarios that possess intertwined logical relationships for up to 50 relevant items. The interrelationship digraph may be developed from data generated in other tools such as the affinity diagram, the tree diagram, or the fshbone diagram.
   – Tree diagrams. Also known as systematic diagrams and may be used to represent decomposition hierarchies such as the WBS, RBS (risk breakdown structure), and OBS (organizational breakdown structure). In project management, tree diagrams are useful in visualizing the parent-to-child relationships in any decomposition hierarchy that uses a systematic set of rules that define a nesting relationship. Tree diagrams can be depicted horizontally (such as a risk breakdown structure) or vertically (such as a team hierarchy or OBS). Because tree diagrams permit the creation of nested branches that terminate into a single decision point, they are useful as decision trees for establishing an expected value for a limited number of dependent relationships that have been diagramed systematically.
   – Prioritization matrices. Identify the key issues and the suitable alternatives to be prioritized as a set of decisions for implementation. Criteria are prioritized and weighted before being applied to all available alternatives to obtain a mathematical score that ranks the options.
   – Activity network diagrams. Previously known as arrow diagrams. They include both the AOA (Activity on Arrow) and, most commonly used, AON (Activity on Node) formats of a network diagram. Activity network diagrams are used with project scheduling methodologies such as program evaluation and review technique (PERT), critical path method (CPM), and precedence diagramming method (PDM).
   – Matrix diagrams. A quality management and control tool used to perform data analysis within the organizational structure created in the matrix. The matrix diagram seeks to show the strength of relationships between factors, causes, and objectives that exist between the rows and columns that form the matrix.

8. The only Process Group that comprises processes that typically occur from the beginning to the end of the project life cycle is:

   • Planning.
   • Executing,
   • Monitoring and Controlling.
   • Closing.

9. Organizational theory is a tool used in which Project Human Resource Management process?

   • Manage Project Team
   • Acquire Project Team
   • Develop Project Team
   • Plan Human Resource Management
   Explanation:

   9.1.2.3 Organizational Theory
   Organizational theory provides information regarding the way in which people, teams, and organizational units behave. Effective use of common themes identified in organizational theory can shorten the amount of time, cost, and effort needed to create the Plan Human Resource Management process outputs and improve planning efficiency. It is important to recognize that different organizational structures have different individual response, individual performance, and personal relationship characteristics. Also, applicable organizational theories may recommend exercising a flexible leadership style that adapts to the changes in a team’s maturity level throughout the project life cycle.

   Process: 9.1 Plan Human Resource Management
   Definition: The process of identifying and documenting project roles, responsibilities, required skills, reporting relationships, and creating a staffing management plan.
   Key Benefit: The key benefit of this process is that it establishes project roles and responsibilities, project organization charts, and the staffing management plan including the timetable for staff acquisition and release.

   Inputs
   1.Project management plan
   2. Activity resource requirements
   3. Enterprise environmental factors
   4. Organizational process assets
    Tools & Techniques
   1. Organization charts and position descriptions
   2. Networking
   3. Organizational theory
   4. Expert judgment
   5. Meetings
    Outputs
   Human resource management plan

10. Which tools or techniques are used in the Plan Schedule Management process?

    • Benchmarking, expert judgment, and analytical techniques
    • Statistical sampling, benchmarking, and meetings
    • Negotiations, pre-assignment, and multi-criteria decision analysis
    • Expert judgment, analytical techniques, and meetings
    Explanation:

    Process: 6.1 Plan Schedule Management
    Definition: The process of establishing the policies, procedures, and documentation for planning, developing, managing, executing, and controlling the project schedule.
    Key Benefit: The key benefit of this process is that it provides guidance and direction on how the project schedule will be managed throughout the project.

    Inputs
    1. Project management plan
    2. Project charter
    3. Enterprise environmental factors
    4. Organizational process assets
     Tools & Techniques

    1. Expert judgment
    2. Analytical techniques
    3. Meetings
     Outputs
    1. Schedule management plan

    4.1.2.1 Expert Judgment
    Expert judgment is often used to assess the inputs used to develop the project charter. Expert judgment is applied to all technical and management details during this process. Such expertise is provided by any group or individual with specialized knowledge or training and is available from many sources, including:
    – Other units within the organization,
    – Consultants,
    – Stakeholders, including customers or sponsors,
    – Professional and technical associations,
    – Industry groups,
    – Subject matter experts (SME), and
    – Project management office (PMO).

11. A project manager is appointed full-time to a project and is given full-time administrative staff and full-time project team members. This situation describes which type of organizational structure?

    • Projectized
    • Weak matrix
    • Functional
    • Balanced matrix
    Explanation:
    Project managers have the highest level of power and authority in a projectized organization. They also have high levels of power and authority in a strong matrix; however, a matrix organization is a blend of functional and projectized organizations, and therefore, the project manager does not have quite the same level of authority as they would in a projectized organization.

12. A project charter is an output of which Process Group?

    • Executing
    • Planning
    • Initiating
    • Closing
    Explanation:

    4.2.1.1 Project Charter
    Described in Section 4.1.3.1. The size of the project charter varies depending on the complexity of the project and the information known at the time of its creation. At a minimum, the project charter should define the high-level boundaries of the project. The project team uses the project charter as the starting point for initial planning throughout the Initiating Process Group.

    4.1.3.1 Project Charter
    The project charter is the document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities. It documents the business needs, assumptions, constraints, the understanding of the customer’s needs and high-level requirements, and the new product, service, or result that it is intended to satisfy, such as:
    – Project purpose or justification,
    – Measurable project objectives and related success criteria,
    – High-level requirements,
    – Assumptions and constraints,
    – High-level project description and boundaries,
    – High-level risks,
    – Summary milestone schedule,
    – Summary budget,
    – Stakeholder list,
    – Project approval requirements (i.e., what constitutes project success, who decides the project is successful, and who signs off on the project),
    – Assigned project manager, responsibility, and authority level, and
    – Name and authority of the sponsor or other person(s) authorizing the project charter.

13. Which tool or technique is effective in a project in which the deliverable is not a service or result?

    • Inspection
    • Variance analysis
    • Decomposition
    • Product analysis
    Explanation:
    5.3.2.2 Product Analysis
    For projects that have a product as a deliverable, as opposed to a service or result, product analysis can be an effective tool. Each application area has one or more generally accepted methods for translating high-level product descriptions into tangible deliverables. Product analysis includes techniques such as product breakdown, systems analysis, requirements analysis, systems engineering, value engineering, and value analysis.

14. An element of the project scope statement is:

    • Acceptance criteria.
    • A stakeholder list.
    • A summary budget.
    • High-level risks.
    Explanation:

    5.3.3.1 Project Scope Statement
    The project scope statement is the description of the project scope, major deliverables, assumptions, and constraints. The project scope statement documents the entire scope, including project and product scope. It describes, in detail, the project’s deliverables and the work required to create those deliverables. It also provides a common understanding of the project scope among project stakeholders. It may contain explicit scope exclusions that can assist in managing stakeholder expectations. It enables the project team to perform more detailed planning, guides the project team’s work during execution, and provides the baseline for evaluating whether requests for changes or additional work are contained within or outside the project’s boundaries.
    The degree and level of detail to which the project scope statement defines the work that will be performed and the work that is excluded can help determine how well the project management team can control the overall project scope. The detailed project scope statement, either directly, or by reference to other documents, includes the following:

    – Product scope description. Progressively elaborates the characteristics of the product, service, or result described in the project charter and requirements documentation.
    – Acceptance criteria. A set of conditions that is required to be met before deliverables are accepted.
    – Deliverable. Any unique and verifiable product, result, or capability to perform a service that is required to be produced to complete a process, phase, or project. Deliverables also include ancillary results, such as project management reports and documentation. These deliverables may be described at a summary level or in great detail.

    – Project exclusion. Generally identifies what is excluded from the project. Explicitly stating what is out of scope for the project helps to manage stakeholders’ expectations.
    Constraints. A limiting factor that affects the execution of a project or process. Constraints identified with the project scope statement list and describe the specific internal or external restrictions or limitations associated with the project scope that affect the execution of the project, for example, a predefined budget or any imposed dates or schedule milestones that are issued by the customer or performing organization. When a project is performed under an agreement, contractual provisions will generally be constraints. Information on constraints may be listed in the project scope statement or in a separate log.
    – Assumptions. A factor in the planning process that is considered to be true, real, or certain, without proof or demonstration. Also describes the potential impact of those factors if they prove to be false.

    Project teams frequently identify, document, and validate assumptions as part of their planning process.
    Information on assumptions may be listed in the project scope statement or in a separate log.

    Although the project charter and the project scope statement are sometimes perceived as containing a certain degree of redundancy, they are different in the level of detail contained in each. The project charter contains high level information, while the project scope statement contains a detailed description of the scope elements. These elements are progressively elaborated throughout the project. Table 5-1 describes some of the key elements for each document.

    Table 5-1. Elements of the Project Charter and Project Scope Statement
    Project Charter
    – Project purpose or justification
    – Measurable project objectives
    and related success criteria
    – High-level requirements
    – High-level project description
    – High-level risks
    – Summary milestone schedule
    – Summary budget
    – Stakeholder list
    – Project approval requirements
    – (what constitutes success, who decides it, who signs off)
    – Assigned project manager,
    – responsibility, and authority level
    – Name and authority of the sponsor or other person(s) authorizing the project charter

    Project Scope Statement
    – Project scope description (progressively elaborated)
    – Acceptance criteria
    – Project deliverables
    – Project exclusions
    – Project constraints
    – Project assumptions

15. Which document describes the necessary information to determine if a project is worth the required investment?

    • Cost baseline
    • Service level agreement
    • Memorandum of understanding
    • Business case
    Explanation:

    4.1.1.2 Business Case
    The business case or similar document describes the necessary information from a business standpoint to determine whether or not the project is worth the required investment. It is commonly used for decision making by managers or executives above the project level. Typically, the business need and the cost-benefit analysis are contained in the business case to justify and establish boundaries for the project, and such analysis is usually completed by a business analyst using various stakeholder inputs. The sponsor should agree to the scope and limitations of the business case. The business case is created as a result of one or more of the following:
    – Market demand (e.g., a car company authorizing a project to build more fuel-efficient cars in response to gasoline shortages),
    Organizational need (e.g., due to high overhead costs a company may combine staff functions and streamline processes to reduce costs.),
    – Customer request (e.g., an electric utility authorizing a project to build a new substation to serve a new industrial park),
    Technological advance (e.g., an airline authorizing a new project to develop electronic tickets instead of paper tickets based on technological advances),
    Legal requirement (e.g., a paint manufacturer authorizing a project to establish guidelines for handling toxic materials),
    Ecological impacts (e.g., a company authorizing a project to lessen its environmental impact), or
    – Social need (e.g., a nongovernmental organization in a developing country authorizing a project to provide potable water systems, latrines, and sanitation education to communities suffering from high rates of cholera).

    Each of the examples in this list may contain elements of risk that should be addressed. In the case of multiphase projects, the business case may be periodically reviewed to ensure that the project is on track to deliver the business benefits. In the early stages of the project life cycle, periodic review of the business case by the sponsoring organization also helps to confirm that the project is still aligned with the business case. The project manager is responsible for ensuring that the project effectively and efficiently meets the goals of the organization and those requirements of a broad set of stakeholders, as defined in the business case.

16. Which process involves monitoring the status of the project to update the project costs and managing changes to the cost baseline?

    • Estimate Costs
    • Control Costs
    • Determine Budget
    • Plan Cost Management
    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.

    7.4 Control Costs
    Definition: The process of monitoring the status of the project to update the project costs and managing changes to the 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. Project management plan
    2. Project funding requirements
    3. Work performance data
    4. Organizational process assets

    Tools & Techniques
    1. Earned value management
    2. Forecasting
    3. To-complete performance index (TCPI)
    4. Performance reviews
    5. Project management software
    6. Reserve analysis
     
    Outputs
    1. Work performance information
    2. Cost forecasts
    3. Change requests
    4. Project management plan updates
    5. Project documents updates
    6. Organizational process assets updates

17. Which group is formally chartered and responsible for reviewing, evaluating, approving, delaying, or rejecting changes to the project and for recording and communicating decisions?

    • Project team
    • Focus group
    • Change control board
    • Project stakeholders
    Explanation:
    Change Control Board (CCB). A formally chartered group responsible for reviewing, evaluating, approving, delaying, or rejecting changes to the project, and for recording and communicating such decisions.

18. Plan Schedule Management is a process in which Knowledge Area?

    • Project Scope Management
    • Project Human Resource Management
    • Project Integration Management
    • Project Time Management
    Explanation:
    Schedule -> Time Management Easy question

19. An output of the Validate Scope process is:

    • A requirements traceability matrix.
    • The scope management plan.
    • Work performance reports.
    • Change requests.
    Explanation:

    Process: 5.5 Validate Scope
    Definition: The process of formalizing acceptance of the completed project deliverables.
    Key Benefit: The key benefit of this process is that it brings objectivity to the acceptance process and increases the chance of final product, service, or result acceptance by validating each deliverable.

    Inputs
    1. Project management plan
    2. Requirements documentation
    3. Requirements traceability matrix
    4. Verified deliverables
    5. Work performance data
     
    Tools & Techniques
    1. Inspection
    2. Group decision-making techniques
     
    Outputs
    1. Accepted deliverables
    2. Change requests
    3. Work performance information
    4. Project documents updates

20. The Perform Integrated Change Control process occurs in which Process Group?

    • Initiating
    • Executing
    • Monitoring and Controlling
    • Planning
    Explanation:
    Monitoring and Controlling Process Group
    4.4 Monitor and Control Project Work
    4.5 Perform Integrated Change Control
    5.5 Validate Scope
    5.6 Control Scope
    6.7 Control Schedule
    7.4 Control Costs
    8.3 Control Quality
    10.3 Control Communications
    11.6 Control Risks
    12.3 Control Procurements
    13.4 Control Stakeholder Engagement