CAPM : Certified Associate in Project Management (PMI-100) : Part 19

CAPM : Certified Associate in Project Management (PMI-100) : Part 19

1. What is the number of stakeholders, if the project has 28 potential communication channels?

   • 7
   • 8
   • 14
   • 16

   Explanation:
   Number of communication channels with ‘n’ members = n*(n-1)/2

2. Which of the following risk response strategies involves allocating ownership of a positive risk to a third party?

   • Mitigate
   • Transfer
   • Share
   • Avoid

3. Which activity is an input to the Conduct Procurements process?

   • Organizational process assets
   • Resource availability
   • Perform Integrated Change Control
   • Team performance assessment
   Explanation:

   2.1.4 Organizational Process Assets
   Organizational process assets are the plans, processes, policies, procedures, and knowledge bases specific to and used by the performing organization. They include any artifact, practice, or knowledge from any or all of the organizations involved in the project that can be used to perform or govern the project. The process assets also include the organization’s knowledge bases such as lessons learned and historical information. Organizational process assets may include completed schedules, risk data, and earned value data. Organizational process assets are inputs to most planning processes. Throughout the project, the project team members may update and add to the organizational process assets as necessary. Organizational process assets may be grouped into two categories: (1) processes and procedures, and (2) corporate knowledge base.

   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

4. Which of the following investigates the likelihood that each specific risk will occur?

   • Risk register
   • Risk audits
   • Risk urgency assessment
   • Risk probability and impact assessment
   Explanation:
   11.3.2.1 Risk Probability and Impact Assessment
   Risk probability assessment investigates the likelihood that each specific risk will occur. Risk impact assessment investigates the potential effect on a project objective such as schedule, cost, quality, or performance, including both negative effects for threats and positive effects for opportunities.
   Probability and impact are assessed for each identified risk. Risks can be assessed in interviews or meetings with participants selected for their familiarity with the risk categories on the agenda. Project team members and knowledgeable persons external to the project are included.
   The level of probability for each risk and its impact on each objective is evaluated during the interview or meeting.
   Explanatory detail, including assumptions justifying the levels assigned, are also recorded. Risk probabilities and impacts are rated according to the definitions given in the risk management plan. Risks with low ratings of probability and impact will be included within the risk register as part of the watch list for future monitoring.

5. What is a hierarchically organized depiction of the identified project risks arranged by risk category?

   • Risk register
   • Risk breakdown structure (RBS)
   • Risk management plan
   • Risk category

6. Which tool or technique of Plan Quality involves comparing actual or planned practices to those of other projects to generate ideas for improvement and provide a basis by which to measure performance?

   • Histogram
   • Quality audits
   • Benchmarking
   • Performance measurement analysis
   Explanation:
   5.2.2.9 Benchmarking
   Benchmarking involves comparing actual or planned practices, such as processes and operations, to those of comparable organizations to identify best practices, generate ideas for improvement, and provide a basis for measuring performance. The organizations compared during benchmarking can be internal or external.

7. Taking out insurance in relation to risk management is called what?

   • Transference
   • Avoidance
   • Exploring
   • Mitigation

8. During which process group is the quality policy determined?

   • Initiating
   • Executing
   • Planning
   • Controlling

9. Which estimating technique uses the actual costs of previous similar projects as a basis for estimating the costs of the current project?

   • Analogous
   • Parametric
   • Bottom-up
   • Top-down

10. What is the difference between the critical path and the critical chain?

    • Scope changes
    • Resource limitations
    • Risk analysis
    • Quality audits
    Explanation:

    6.6.2.2 Critical Path Method
    The critical path method, which is a method used to estimate the minimum project duration and determine the amount of scheduling flexibility on the logical network paths within the schedule model.

    6.6.2.3 Critical Chain Method
    The critical chain method (CCM) is a schedule method that allows the project team to place buffers on any project schedule path to account for limited resources and project uncertainties. It is developed from the critical path method approach and considers the effects of resource allocation, resource optimization, resource leveling, and activity duration uncertainty on the critical path determined using the critical path method. To do so, the critical chain method introduces the concept of buffers and buffer management. The critical chain method uses activities with durations that do not include safety margins, logical relationships, and resource availability with statistically determined buffers composed of the aggregated safety margins of activities at specified points on the project schedule path to account for limited resources and project uncertainties. The resource-constrained critical path is known as the critical chain.

11. Which of the following is an enterprise environmental factor that can influence the Develop Project Charter process?

    • Organizational standard processes
    • Marketplace conditions
    • Historical information
    • Templates
    Explanation:

    4.1.1.4 Enterprise Environmental Factors
    Described in Section 2.1.5. The enterprise environmental factors that can influence the Develop Project Charter process include, but are not limited to:
    – Governmental standards, industry standards, or regulations (e.g. codes of conduct, quality standards, or worker protection standards),
    – Organizational culture and structure, and
    – Marketplace conditions.

    Process: 4.1. Develop Project Charter
    Definition: The process of developing a document that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities.
    Key Benefit: The key benefit of this process is a well-defined project start and project boundaries, creation of a formal record of the project, and a direct way for senior management to formally accept and commit to the project.

    Inputs
    1.     Project statement of work
    2.     Business case
    3.     Agreements
    4.     Enterprise environmental factors
    5.     Organizational process assets
    Tools & Techniques
    1.     Expert judgment
    2.     Facilitation techniques
    Outputs
    Project charter

12. The Define Scope process is in which of the following Process Groups?

    • Initiating
    • Planning
    • Monitoring and Controlling
    • Executing
    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

13. Organizations perceive risks as:

    • events that will inevitably impact project and organizational objectives.
    • the effect of uncertainty on their project and organizational objectives.
    • events which could have a negative impact on project and organizational objectives.
    • the negative impact of undesired events on their project and organizational objectives.

14. In an organization with a projectized organizational structure, who controls the project budget?

    • Functional manager
    • Project manager
    • Program manager
    • Project management office

15. Who, along with the project manager, is supposed to direct the performance of the planned project activities and manage the various technical and organizational interfaces that exist within the project?

    • The customer and functional managers
    • The risk owners and stakeholders
    • The sponsors and stakeholders
    • The project management team

16. Which enterprise environmental factors are considered during cost estimating?

    • Market conditions and published commercial information
    • Company structure and market conditions
    • Commercial information and company structure
    • Existing human resources and market conditions
    Explanation:

    7.2.1.6 Enterprise Environmental Factors
    Described in Section 2.1.5. The enterprise environmental factors that influence the Estimate Costs process include, but are not limited to:
    – Market conditions. These conditions describe what products, services, and results are available in the market, from whom, and under what terms and conditions. Regional and/or global supply and demand conditions greatly influence resource costs.
    – Published commercial information. Resource cost rate information is often available from commercial databases that track skills and human resource costs, and provide standard costs for material and equipment. Published seller price lists are another source of information.

    Process: 7.2 Estimate Costs
    Definition:  The process of developing an approximation of the monetary resources needed to complete project activities.
    Key Benefit: The key benefit of this process is that it determines the amount of cost required to complete project work.

    Inputs
    1. Cost management plan
    2. Human resource management plan
    3. Scope baseline
    4. Project schedule
    5. Risk register
    6. Enterprise environmental factors
    7. Organizational process assets

    Tools & Techniques
    1. Expert judgment
    2. Analogous estimating
    3. Parametric estimating
    4. Bottom-up estimating
    5. Three-point estimating
    6. Reserve analysis
    7. Cost of quality
    8. Project management software
    9. Vendor bid analysis
    10. Group decision-making techniques

    Outputs
    1. Activity cost estimates
    2. Basis of estimates
    3. Project documents updates

17. Who selects the appropriate processes for a project?

    • Project stakeholders
    • Project sponsor and project stakeholder
    • Project manager and project team
    • Project manager and project sponsor

18. The scope management plan is a subsidiary of which project document?

    • Schedule management plan
    • Project management plan
    • Quality management plan
    • Resource management plan
    Explanation:

    4.2.3.1 Project Management Plan
    The project management plan is the document that describes how the project will be executed, monitored, and controlled. It integrates and consolidates all of the subsidiary plans and baselines from the planning processes.
    Project baselines include, but are not limited to:
    – Scope baseline (Section 5.4.3.1),
    – Schedule baseline (Section 6.6.3.1), and
    – Cost baseline (Section 7.3.3.1).

    Subsidiary plans include, but are not limited to:
    – Scope management plan (Section 5.1.3.1),
    – Requirements management plan (Section 5.1.3.2),
    – Schedule management plan (Section 6.1.3.1),
    – Cost management plan (Section 7.1.3.1),
    – Quality management plan (Section 8.1.3.1),
    – Process improvement plan (Section 8.1.3.2),
    – Human resource management plan (Section 9.1.3.1),
    – Communications management plan (Section 10.1.3.1),
    – Risk management plan (Section 11.1.3.1),
    – Procurement management plan (Section 12.1.3.1), and
    – Stakeholder management plan (Section 13.2.3.1).
    Among other things, the project management plan may also include the following:
    – Life cycle selected for the project and the processes that will be applied to each phase;
    – Details of the tailoring decisions specified by the project management team as follows:
    ○ Project management processes selected by the project management team,
    ○ Level of implementation for each selected process,
    ○ Descriptions of the tools and techniques to be used for accomplishing those processes, and
    ○ Description of how the selected processes will be used to manage the specific project, including the dependencies and interactions among those processes and the essential inputs and outputs.
    – Description of how work will be executed to accomplish the project objectives;
    – Change management plan that documents how changes will be monitored and controlled;
    – Configuration management plan that documents how Configuration management will be performed;
    – Description of how the integrity of the project baselines will be maintained;
    – Requirements and techniques for communication among stakeholders; and
    – Key management reviews for content, the extent of, and timing to address, open issues and pending decisions.

    The project management plan may be either summary level or detailed, and may be composed of one or more subsidiary plans. Each of the subsidiary plans is detailed to the extent required by the specific project. Once the project management plan is baselined, it may only be changed when a change request is generated and approved through the Perform Integrated Change Control process.

19. Which is an example of Administer Procurements?

    • Negotiating the contract
    • Authorizing contractor work
    • Developing the statement of work
    • Establishing evaluation criteria

20. An input to the Create WBS process is a:

    • project charter.
    • stakeholder register.
    • project scope statement.
    • requirements traceability matrix.
    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.

    The project team must complete a scope statement for developing a common understanding of the project scope among stakeholders. This lists project deliverables – summary level sub-products, whose full and satisfactory delivery marks the completion of the project.

    5.4 Create WBS
    Definition: WBS is the process of subdividing project deliverables and project work into smaller, more manageable components. Key Benefit: The key benefit of this process is that it provides a structured vision of what has to be delivered.

    Inputs
    1. Scope management plan
    2. Project scope statement
    3. Requirements documentation
    4. Enterprise environmental factors
    5. Organizational process assets

    Tools & Techniques
    1. Decomposition
    2. Expert judgment
    Outputs
    1. Scope baseline
    2. Project documents updates