CAPM : Certified Associate in Project Management (PMI-100) : Part 08

CAPM : Certified Associate in Project Management (PMI-100) : Part 08

1. An input to the Identify Stakeholders process is:

   • The project management plan.
   • The stakeholder register.
   • Procurement documents.
   • Stakeholder analysis.

   Explanation:

   12.1.3.3 Procurement Documents
   Procurement documents are used to solicit proposals from prospective sellers. Terms such as bid, tender, or quotation are generally used when the seller selection decision will be based on price (as when buying commercial or standard items), while a term such as proposal is generally used when other considerations, such as technical capability or technical approach are paramount. Common terms are in use for different types of procurement documents and may include request for information (RFI), invitation for bid (IFB), request for proposal (RFP), request for quotation (RFQ), tender notice, invitation for negotiation, and invitation for seller’s initial response. Specific procurement terminology used may vary by industry and location of the procurement.
   The buyer structures procurement documents to facilitate an accurate and complete response from each prospective seller and to facilitate easy evaluation of the responses. These documents include a description of the desired form of the response, the relevant procurement statement of work (SOW) and any required contractual provisions. With government contracting, some or all of the content and structure of procurement documents may be defined by regulation.
   The complexity and level of detail of the procurement documents should be consistent with the value of, and risks associated with, the planned procurement. Procurement documents are required to be sufficient to ensure consistent, appropriate responses, but flexible enough to allow consideration of any seller suggestions for better ways to satisfy the same requirements.
   Issuing a procurement request to potential sellers to submit a proposal or bid is normally done in accordance with the policies of the buyer’s organization, which can include publication of the request in public newspapers, in trade journals, in public registries, or on the internet.

   Process: 13.1 Identify Stakeholders
   Definition: The process of identifying the people, groups, or organizations that could impact or be impacted by a decision, activity, or outcome of the project; and analyzing and documenting relevant information regarding their interests, involvement, interdependencies, influence, and potential impact on project success.
   Key Benefit: The key benefit of this process is that it allows the project manager to identify the appropriate focus for each stakeholder or group of stakeholders.

   Inputs
   1. Project charter
   2. Procurement documents
   3. Enterprise environmental factors
   4. Organizational process assets
    
   Tools & Techniques
   1. Stakeholder analysis
   2. Expert judgment
   3. Meetings
    
   Outputs
   1. Stakeholder register

2. Identify Risks is part of which Process Group?

   • Planning
   • Executing
   • Closing
   • Initiating
   Explanation: 
   Planning Process Group
   4.2 Develop Project Management Plan
   5.1 Plan Scope Management
   5.2 Collect Requirements
   5.3 Define Scope
   5.4 Create WBS
   6.1 Plan Schedule Management
   6.2 Define Activities
   6.3 Sequence Activities
   6.4 Estimate Activity Resources
   6.5 Estimate Activity Durations
   6.6 Develop Schedule
   7.1 Plan Cost Management
   7.2 Estimate Costs
   7.3 Determine Budget
   8.1 Plan Quality Management
   9.1 Plan Human Resource Management
   10.1 Plan Communications Management
   11.1 Plan Risk Management
   11.2 Identify Risks
   11.3 Perform Qualitative Risk Analysis
   11.4 Perform Quantitative Risk Analysis
   11.5 Plan Risk Responses
   12.1 Plan Procurement Management
   13.2 Plan Stakeholder Management

3. Which conflict resolution technique searches for solutions that bring some degree of satisfaction to all parties in order to temporarily or partially resolve the conflict?

   • Force/direct
   • Withdraw/avoid
   • Compromise/reconcile
   • Collaborate/problem solve

4. Which tool or technique is used in the Perform Integrated Change Control process?

   • Decomposition
   • Modeling techniques
   • Resource optimization
   • Meetings
   Explanation:

   4.3.2.3 Meetings
   Meetings are used to discuss and address pertinent topics of the project when directing and managing project work. Attendees at the meetings may include the project manager, the project team and appropriate stakeholders involved or affected by the topics addressed. Each attendee should have a defined role to ensure appropriate participation. Meetings tend to be one of three types:
   – Information exchange;
   – Brainstorming, option evaluation, or design; or
   – Decision making.
   Meeting types should not be mixed as a best practice. Meetings should be prepared with a well-defined agenda, purpose, objective, and time frame and should be appropriately documented with meeting minutes and action
   items. Meeting minutes should be stored as defined in the project management plan. Meetings are most effective when all participants can be face-to-face in the same location. Virtual meetings can be held using audio and/or video conferencing tools, but generally require additional preparation and organization to achieve the same effectiveness of a face-to-face meeting.

   Process: 4.5 Perform Integrated Change Control
   Perform Integrated Change Control is the process of reviewing all change requests; approving changes and managing changes to deliverables, organizational process assets, project documents, and the project management plan; and communicating their disposition. It reviews all requests for changes or modifications to project documents, deliverables, baselines, or the project management plan and approves or rejects the changes.
   Key Benefit: The key benefit of this process is that it allows for documented changes within the project to be considered in an integrated fashion while reducing project risk, which often arises from changes made without consideration to the overall project objectives or plans.

   Inputs
   1. Project management plan
   2. Work performance reports
   3. Change requests
   4. Enterprise environmental factors
   5. Organizational process assets

   Tools & Techniques
   1. Expert judgment
   2. Meetings
   3. Change control tools

   Outputs
   1. Approved change requests
   2. Change log
   3. Project management plan updates
   4. Project documents updates

5. A logical relationship in which a successor activity cannot start until a predecessor activity has finished is known as:

   • Start-to-start (SS).
   • Start-to-finish (SF).
   • Finish-to-start (FS).
   • Finish-to-finish (FF).
   Explanation: 
   – A finish-to-start (FS) relationship between two activities implies that the initiation of successor is dependent on the completion of predecessor.
   – A finish-to-finish (FF) relationship between two activities implies that the completion of successor is dependent on the completion of predecessor.
   – A start-to-start (SS) relationship implies that the initiation of successor is dependent on the initiation of predecessor.
   – A start-to-finish (SF) relationship between two activities implies that the completion of successor is dependent on the initiation of its predecessor

6. Which type of contract gives both the seller and the buyer flexibility to deviate from performance with financial incentives?

   • Cost Plus Incentive Fee (CPIF)
   • Fixed Price Incentive Fee (FPIF)
   • Cost Pius Award Fee (CPAF)
   • Time and Material (T&M)
   Explanation: 
   Fixed Price Incentive Fee Contracts (FPIF). This fixed-price arrangement gives the buyer and seller some flexibility in that it allows for deviation from performance, with financial incentives tied to achieving agreed upon metrics. Typically such financial incentives are related to cost, schedule, or technical performance of the seller. Performance targets are established at the outset, and the final contract price is determined after completion of all work based on the seller’s performance. Under FPIF contracts, a price ceiling is set, and all costs above the price ceiling are the responsibility of the seller, who is obligated to complete the work.

7. What is the estimate at completion (EAC) if the budget at completion (BAC) is $100, the actual cost (AC) is $50, and the earned value (EV) is $25?

   • $50
   • $100
   • $125
   • $175
   Explanation: 
   Estimate to completion calculates how much more of the budget is needed to complete the project if everything continues at the current level of performance.
   EAC ‘atypical’ = AC + BAC – EV
   EAC ‘typical’ = AC + ((BAC – EV) / CPI)

8. The business needs, assumptions, and constraints and the understanding of the customers’ needs and high-level requirements are documented in the:

   • Project management plan.
   • Project charter.
   • Work breakdown structure.
   • Stakeholder register.

9. Which Process Group and Knowledge Area include the Sequence Activities process?

   • Executing Process Group and Project Time Management
   • Executing Process Group and Project Cost Management
   • Planning Process Group and Project Time Management
   • Planning Process Group and Project Cost Management
   Explanation:

   Knowledge Areas

   1. 4. Project Integration Management
   2. 5. Project Scope Management
   3. 6. Project Time Management
   4. 7. Project Cost Management
   5. 8. Project Quality Management
   6. 9. Project Human Resource Management
   7. 10.Project Communications Management
   8. 11.Project Risk Management
   9. 12.Project Procurement Management
   10. 13.Project Stakeholder Management

   Planning Process Group
   4.2 Develop Project Management Plan
   5.1 Plan Scope Management
   5.2 Collect Requirements
   5.3 Define Scope
   5.4 Create WBS
   6.1 Plan Schedule Management
   6.2 Define Activities
   6.3 Sequence Activities
   6.4 Estimate Activity Resources
   6.5 Estimate Activity Durations
   6.6 Develop Schedule
   7.1 Plan Cost Management
   7.2 Estimate Costs
   7.3 Determine Budget
   8.1 Plan Quality Management
   9.1 Plan Human Resource Management
   10.1 Plan Communications Management
   11.1 Plan Risk Management
   11.2 Identify Risks
   11.3 Perform Qualitative Risk Analysis
   11.4 Perform Quantitative Risk Analysis
   11.5 Plan Risk Responses
   12.1 Plan Procurement Management
   13.2 Plan Stakeholder Management

10. In the Plan Stakeholder Management process, expert judgment is used to:

    • Provide information needed to plan appropriate ways to engage project stakeholders.
    • Ensure comprehensive identification and listing of new stakeholders.
    • Analyze the information needed to develop the project scope statement.
    • Decide the level of engagement of the stakeholders at each required stage.
    Explanation:

    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).

    Process: 13.2 Plan Stakeholder Management
    Definition: Stakeholder Management is the process of developing appropriate management strategies to effectively engage stakeholders throughout the project life cycle, based on the analysis of their needs, interests, and potential impact on project success.
    Key Benefit: The key benefit of this process is that it provides a clear, actionable plan to interact with project stakeholders to support the project’s interests.
    Inputs
    1. Project management plan
    2. Stakeholder register
    3. Enterprise environmental factors
    4. Organizational process assets
    Tools & Techniques
    1. Expert judgment
    2. Meetings
    3. Analytical techniques
    Outputs
    – Stakeholder management plan
    – Project documents updates

11. The degree, amount, or volume of risk that an organization or individual will withstand is known as its risk:

    • Analysis
    • Appetite
    • Tolerance
    • Response
    Explanation:

    11 PROJECT RISK MANAGEMENT
    [..]
    Organizations perceive risk as the effect of uncertainty on projects and organizational objectives. Organizations and stakeholders are willing to accept varying degrees of risk depending on their risk attitude. The risk attitudes of both the organization and the stakeholders may be influenced by a number of factors, which are broadly classifed into three themes:

    – Risk appetite, which is the degree of uncertainty an entity is willing to take on in anticipation of a reward.
    – Risk tolerance, which is the degree, amount, or volume of risk that an organization or individual will withstand.
    – Risk threshold, which refers to measures along the level of uncertainty or the level of impact at which a stakeholder may have a specific interest. Below that risk threshold, the organization will accept the risk. Above that risk threshold, the organization will not tolerate the risk.
    For example, an organization’s risk attitude may include its appetite for uncertainty, its threshold for risk levels that are unacceptable, or its risk tolerance at which point the organization may select a different risk response.
    Positive and negative risks are commonly referred to as opportunities and threats. The project may be accepted if the risks are within tolerances and are in balance with the rewards that may be gained by taking the risks. Positive risks that offer opportunities within the limits of risk tolerances may be pursued in order to generate enhanced value. For example, adopting an aggressive resource optimization technique is a risk taken in anticipation of a reward for using fewer resources.

12. Project deliverables that have been completed and checked for correctness through the Control Quality process are known as:

    • Verified deliverables.
    • Validated deliverables.
    • Acceptance criteria.
    • Activity resource requirements.
    Explanation:

    Process: 8.3 Control Quality
    Definition:  The process of monitoring and recording results of executing the quality activities to assess performance and recommend necessary changes.
    Key Benefit: The key benefits of this process include: (1) identifying the causes of poor process or product quality and recommending and/or taking action to eliminate them; and (2) validating that project deliverables and work meet the requirements specified by key stakeholders necessary for final acceptance.

    Inputs
    1. Project management plan
    2. Quality metrics
    3. Quality checklists
    4. Work performance data
    5. Approved change requests
    6. Deliverables
    7. Project documents
    8. Organizational process assets
     
    Tools & Techniques
    1. Seven basic quality tools
    2. Statistical sampling
    3. Inspection
    4. Approved change requests review
     
    Outputs
    1. Quality control measurements
    2. Validated changes
    3. Verified deliverables
    4. Work performance information
    5. Change requests
    6. Project management plan updates
    7. Project documents updates
    8. Organizational process assets updates

13. An output of the Perform Integrated Change Control process is:

    • Deliverables.
    • Validated changes.
    • The change log.
    • The requirements traceability matrix.
    Explanation:

    4.5.3.2 Change Log
    A change log is used to document changes that occur during a project. These changes and their impact to the project in terms of time, cost, and risk, are communicated to the appropriate stakeholders. Rejected change requests are also captured in the change log.

    Process: 4.5 Perform Integrated Change Control
    Perform Integrated Change Control is the process of reviewing all change requests; approving changes and managing changes to deliverables, organizational process assets, project documents, and the project management plan; and communicating their disposition. It reviews all requests for changes or modifications to project documents, deliverables, baselines, or the project management plan and approves or rejects the changes.
    Key Benefit: The key benefit of this process is that it allows for documented changes within the project to be considered in an integrated fashion while reducing project risk, which often arises from changes made without consideration to the overall project objectives or plans.

    Inputs
    1. Project management plan
    2. Work performance reports
    3. Change requests
    4. Enterprise environmental factors
    5. Organizational process assets

    Tools & Techniques
    1. Expert judgment
    2. Meetings
    3. Change control tools

    Outputs
    1. Approved change requests
    2. Change log
    3. Project management plan updates
    4. Project documents updates

14. During which process does the project team receive bids and proposals?

    • Conduct Procurements
    • Plan Procurements
    • Estimate Costs
    • Control Budget
    Explanation:

    Process: 12.2 Conduct Procurements
    Definition: The process of obtaining seller responses, selecting a seller, and awarding a contract.
    Key Benefit: The key benefit of this process is that it provides alignment of internal and external stakeholder expectations through established agreements.

    Inputs
    1. Procurement management plan
    2. Procurement documents
    3. Source selection criteria
    4. Seller proposals
    5. Project documents
    6. Make-or-buy decisions
    7. Procurement statement of work
    8. Organizational process assets
    Tools & Techniques
    1. Bidder conference
    2. Proposal evaluation techniques
    3. Independent estimates
    4. Expert judgment
    5. Advertising
    6. Analytical techniques
    7. Procurement negotiations
    Outputs
    1. .Selected sellers
    2. .Agreements
    3. .Resource calendars
    4. .Change requests
    5. .Project management plan updates
    6. .Project documents updates

15. The process of monitoring the status of the project and product scope as well as managing the changes to the scope baseline is known as:

    • Validate Scope.
    • Plan Scope Management.
    • Control Scope.
    • Define Scope.
    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: 5.6 Control Scope
    Definition: The process of monitoring the status of the project and product scope and managing changes to the scope baseline.
    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. Work performance data
    5. Organizational process assets
     
    Tools & Techniques
    1. Variance analysis
     
    Outputs
    1. Work performance information
    2. Change requests
    3. Project management plan updates
    4. Project documents updates
    5. Organizational process assets updates

16. Which output is the approved version of the time-phased project budget?

    • Resource calendar
    • Scope baseline
    • Trend analysis
    • Cost baseline
    Explanation:

    A project budget includes all the funds authorized to execute the project. The cost baseline is the approved version of the time-phased project budget, but excludes management reserves.

    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.

17. The purpose of the Project Communications Management Knowledge Area is to:

    • Monitor and control communications throughout the entire project life cycle.
    • Maintain an optimal flow of information among all project participants.
    • Develop an appropriate approach for project communications.
    • Ensure timely and appropriate collection of project information.
    Explanation: 
    10. Project Communications Management
    Project Communications Management includes the processes that are required to ensure timely and appropriate planning, collection, creation, distribution, storage, retrieval, management, control, monitoring, and the ultimate disposition of project information.

18. Processes in the Initiating Process Group may be completed at the organizational level and be outside of the project’s:

    • Level of control.
    • Communication channels.
    • Scope.
    • Strategic alignment.

19. At the completion of a project, a report is prepared that details the outcome of the research conducted on a global trend during the project. Which item did this project create?

    • Result
    • Product
    • Service
    • Improvement

20. Power, urgency, and legitimacy are attributes of which stakeholder classification model?

    • Salience
    • Influence/impact
    • Power/interest
    • Power/influence
    Explanation:

    13.1.2.1 Stakeholder Analysis
    Stakeholder analysis is a technique of systematically gathering and analyzing quantitative and qualitative information to determine whose interests should be taken into account throughout the project. It identifies the interests, expectations, and influence of the stakeholders and relates them to the purpose of the project. It also helps to identify stakeholder relationships (with the project and with other stakeholders) that can be leveraged to build coalitions and potential partnerships to enhance the project’s chance of success, along with stakeholder relationships that need to be influenced differently at different stages of the project or phase.

    Stakeholder analysis generally follows the steps described below:
    – Identify all potential project stakeholders and relevant information, such as their roles, departments, interests, knowledge, expectations, and influence levels. Key stakeholders are usually easy to identify. They include anyone in a decision-making or management role who is impacted by the project outcome, such as the sponsor, the project manager, and the primary customer. Identifying other stakeholders is usually done by interviewing identified stakeholders and expanding the list until all potential stakeholders are included.
    – Analyze the potential impact or support each stakeholder could generate, and classify them so as to define an approach strategy. In large stakeholder communities, it is important to prioritize the stakeholders to ensure the efficient use of effort to communicate and manage their expectations.
    – Assess how key stakeholders are likely to react or respond in various situations, in order to plan how to influence them to enhance their support and mitigate potential negative impacts.

    There are multiple classification models used for stakeholders analysis, such as:
    – Power/interest grid, grouping the stakeholders based on their level of authority (“power”) and their level or concern (“interest”) regarding the project outcomes;
    – Power/influence grid, grouping the stakeholders based on their level of authority (“power”) and their active involvement (“influence”) in the project;
    – Influence/impact grid, grouping the stakeholders based on their active involvement (“influence”) in the project and their ability to effect changes to the project’s planning or execution (“impact”); and
    – Salience model, describing classes of stakeholders based on their power (ability to impose their will), urgency (need for immediate attention), and legitimacy (their involvement is appropriate).