CAPM : Certified Associate in Project Management (PMI-100) : Part 28

CAPM : Certified Associate in Project Management (PMI-100) : Part 28

1. Which is the correct formula for calculating expected activity cost for three-point estimating?

   • Ce = (C0 + 6Cm + Cp)/4
   • Ce = (6C0 + Cm + Cp)/4
   • Ce = (C0 + 4Cm + Cp)/6
   • Ce = (C0 + C„, + 4Cp) /6

   Explanation:

   6.5.2.4 Three-Point Estimating
   The accuracy of single-point activity duration estimates may be improved by considering estimation uncertainty and risk. This concept originated with the program evaluation and review technique (PERT). PERT uses three estimates to define an approximate range for an activity’s duration:
   – Most likely (tM). This estimate is based on the duration of the activity, given the resources likely to be assigned, their productivity, realistic expectations of availability for the activity, dependencies on other participants, and interruptions.
   – Optimistic (tO). The activity duration based on analysis of the best-case scenario for the activity.
   – Pessimistic (tP). The activity duration based on analysis of the worst-case scenario for the activity.

   Depending on the assumed distribution of values within the range of the three estimates the expected duration, tE, can be calculated using a formula. Two commonly used formulas are triangular and beta distributions. The formulas are:
   – Triangular Distribution. tE = (tO + tM + tP) / 3
   – Beta Distribution (from the traditional PERT technique). tE = (tO + 4tM + tP) / 6
   Duration estimates based on three points with an assumed distribution provide an expected duration and clarify the range of uncertainty around the expected duration.

2. Monte Carlo is which type of risk analysis technique?

   • Probability
   • Quantitative
   • Qualitative
   • Sensitivity
   Explanation:
   Monte Carlo Simulation. A process which generates hundreds or thousands of probable performance outcomes based on probability distributions for cost and schedule on individual tasks. The outcomes are then used to generate a probability distribution for the project as a whole.

3. When addressing roles and responsibilities, which item ensures that the staff has the skills required to complete project activities?

   • Authority
   • Role
   • Competency
   • Responsibility

4. Which of the following reduces the probability of potential consequences of project risk events?

   • Preventive action
   • Risk management
   • Corrective action
   • Defect repair
   Explanation:

   4.3.3.3 Change Requests
   A change request is a formal proposal to modify any document, deliverable, or baseline. An approved change request will replace the associated document, deliverable, or baseline and may result in an update to other parts
   of the project management plan. When issues are found while project work is being performed, change requests are submitted, which may modify project policies or procedures, project scope, project cost or budget, project schedule, or project quality. Other change requests cover the needed preventive or corrective actions to forestall negative impact later in the project. Requests for a change can be direct or indirect, externally or internally initiated, and can be optional or legally/contractually mandated, and may include:

   – Corrective action—An intentional activity that realigns the performance of the project work with the project management plan;
   Preventive action—An intentional activity that ensures the future performance of the project work is aligned with the project management plan;
   – Defect repair—An intentional activity to modify a nonconforming product or product component;
   – Updates—Changes to formally controlled project documents, plans, etc., to reflect modified or additional ideas or content.

5. The project manager needs to review the templates in use. The templates are part of the:

   • Enterprise environmental factors.
   • Historical information,
   • Organizational process assets.
   • Corporate knowledge base.

6. Which of the following Project Communication Management processes uses performance reports as an input?

   • Manage Stakeholder Expectations
   • Report Performance
   • Distribute Information
   • Plan Communications

7. Which cost estimate technique includes contingencies to account for cost uncertainty?

   • Vendor bid analysis
   • Three-point estimates
   • Parametric estimating
   • Reserve analysis
   Explanation:
   6.5.2.6 Reserve Analysis
   Duration estimates may include contingency reserves, sometimes referred to as time reserves or buffers, into the project schedule to account for schedule uncertainty. Contingency reserves are the estimated duration within the schedule baseline, which is allocated for identified risks that are accepted and for which contingent or mitigation responses are developed. Contingency reserves are associated with the “known-unknowns,” which may be estimated to account for this unknown amount of rework.
   As more precise information about the project becomes available, the contingency reserve may be used, reduced, or eliminated. Contingency should be clearly identified in schedule documentation.
   [..]
   Estimates may also be produced for the amount of management reserve of time for the project. Management reserves are a specified amount of the project duration withheld for management control purposes and are reserved for unforeseen work that is within scope of the project. Management reserves are intended to address the “unknown-unknowns” that can affect a project. Management reserve is not included in the schedule baseline, but it is part of the overall project duration requirements. Depending on contract terms, use of management reserves may require a change to the schedule baseline.

8. Which of the following is an output of the Perform Integrated Change Control process?

   • Project document updates
   • Organizational process assets updates
   • Change requests
   • Deliverables
   Explanation:

   Process: 4.5 Perform Integrated Change Control
   Definition: 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

9. Which of the following is an input to Control Scope?

   • Project schedule
   • Organizational process assets updates
   • Project document updates
   • Work performance information
   Explanation:

   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 allows the scope baseline to be maintained throughout the project.

   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

10. Lessons learned documentation is gathered during which of the following Project Management Process Groups?

    • Planning
    • Executing
    • Closing
    • Initiating
    Explanation: 
    3.7 Closing Process Group
    The Closing Process Group consists of those processes performed to conclude all activities across all Project Management Process Groups to formally complete the project, phase, or contractual obligations. This Process Group, when completed, verifes that the defined processes are completed within all of the Process Groups to close the project or a project phase, as appropriate, and formally establishes that the project or project phase is complete.
    This Process Group also formally establishes the premature closure of the project. Prematurely closed projects may include, for example: aborted projects, cancelled projects, and projects having a critical situation. In specific cases, when some contracts cannot be formally closed (e.g. claims, termination clauses, etc.) or some activities are to be transferred to other organizational units, specific hand-over procedures may be arranged and finalized.
    At project or phase closure, the following may occur:
    – Obtain acceptance by the customer or sponsor to formally close the project or phase,
    – Conduct post-project or phase-end review,
    – Record impacts of tailoring to any process,
    – Document lessons learned,
    – Apply appropriate updates to organizational process assets,
    – Archive all relevant project documents in the project management information system (PMIS) to be used as historical data,
    – Close out all procurement activities ensuring termination of all relevant agreements, and
    – Perform team members’ assessments and release project resources.

11. The key benefit of the Monitoring and Controlling Process Group is the ability to:

    • establish and manage project communication channels, both external and internal to the project team.
    • influence the stakeholders that want to circumvent integrated change control so that their changes are implemented.
    • monitor the ongoing project team against the team performance assessments and the project performance baseline.
    • observe and measure project performance regularly and consistently to identify variances from the project management plan.
    Explanation:

    Explanation:
    • Monitoring and Controlling Process Group. Those processes required to track, review, and regulate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes.

    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.

12. Which written document helps monitor who is responsible for resolving specific problems and concerns by a target date?

    • Project Plan
    • Responsibility Matrix
    • Issue Log
    • Scope Document
    Explanation: 
    9.4.1.4 Issue Log
    Issues arise in the course of managing the project team. An issue log can be used to document and monitor who is responsible for resolving specific issues by a target date.

13. Who provides the inputs for the original estimates of activity durations for tasks on the project plan?

    • Project sponsor
    • Project manager
    • Person responsible for project scheduling
    • Person who is most familiar with the task

14. Which of the following is the primary output of the Identify Risks process?

    • Risk management plan
    • Risk register
    • Change requests
    • Risk response plan
    Explanation:

    Process: 11.2 Identify Risks
    Definition: The process of determining which risks may affect the project and documenting their characteristics.
    Key Benefit: The key benefit of this process is the documentation of existing risks and the knowledge and ability it provides to the project team to anticipate events.

    Inputs
    1. Risk management plan
    2. Cost management plan
    3. Schedule management plan
    4. Quality management plan
    5. Human resource management plan
    6. Scope baseline
    7. Activity cost estimates
    8. Activity duration estimates
    9. Stakeholder register
    10. Project documents
    11. Procurement documents
    12. Enterprise environmental factors
    13. Organizational process assets

    Tools & Techniques
    1. Documentation reviews
    2. Information gathering techniques
    3. Checklist analysis
    4. Assumptions analysis
    5. Diagramming techniques
    6. SWOT analysis
    7. Expert judgment

    Outputs
    1. Risk register

    11.2.3.1 Risk Register
    The primary output from Identify Risks is the initial entry into the risk register. The risk register is a document in which the results of risk analysis and risk response planning are recorded. It contains the outcomes of the other risk management processes as they are conducted, resulting in an increase in the level and type of information contained in the risk register over time. The preparation of the risk register begins in the Identify Risks process with the following information, and then becomes available to other project management and risk management processes:
    – List of identified risks. The identified risks are described in as much detail as is reasonable. A structure for describing risks using risk statements may be applied, for example, EVENT may occur causing IMPACT, or If CAUSE exists, EVENT may occur leading to EFFECT. In addition to the list of identified risks, the root causes of those risks may become more evident. These are the fundamental conditions or events that may give rise to one or more identified risks. They should be recorded and used to support future risk identification for this and other projects.
    – List of potential responses. Potential responses to a risk may sometimes be identified during the Identify Risks process. These responses, if identified in this process, should be used as inputs to the Plan Risk Responses process.

15. Which type of elaboration allows a project management team to manage at a greater level of detail as the project evolves?

    • Cyclic
    • Progressive
    • Repetitive
    • Iterative

16. Which of the following helps to ensure that each requirement adds business value by linking it to the business and project objectives?

    • Requirements traceability matrix
    • Work breakdown structure (WBS) dictionary
    • Requirements management plan
    • Requirements documentation
    Explanation:

    5.2.3.2 Requirements Traceability Matrix
    The requirements traceability matrix is a grid that links product requirements from their origin to the deliverables that satisfy them. The implementation of a requirements traceability matrix helps ensure that each requirement adds business value by linking it to the business and project objectives. It provides a means to track requirements throughout the project life cycle, helping to ensure that requirements approved in the requirements documentation are delivered at the end of the project. Finally, it provides a structure for managing changes to the product scope.
    Tracing includes, but is not limited to, tracing requirements for the following:

    – Business needs, opportunities, goals, and objectives;
    – Project objectives;
    – Project scope/WBS deliverables;
    – Product design;
    – Product development;
    – Test strategy and test scenarios; and
    – High-level requirements to more detailed requirements.

    – Attributes associated with each requirement can be recorded in the requirements traceability matrix. These attributes help to define key information about the requirement. Typical attributes used in the requirements traceability matrix may include: a unique identifier, a textual description of the requirement, the rationale for inclusion, owner, source, priority, version, current status (such as active, cancelled, deferred, added, approved, assigned, completed), and status date. Additional attributes to ensure that the requirement has met stakeholders’ satisfaction may include stability, complexity, and acceptance criteria.

17. Which category of contracts are sellers legally obligated to complete, with possible financial damages if the project objectives are not met?

    • Cost-reimbursable contracts
    • Time and Material contracts (T&M)
    • Fixed-price contracts
    • Cost Plus Fixed Fee Contracts (CPFF)
    Explanation: 
    Fixed-price contracts. This category of contracts involves setting a fixed total price for a defined product, service, or result to be provided. Fixed-price contracts may also incorporate financial incentives for achieving or exceeding selected project objectives, such as schedule delivery dates, cost and technical performance, or anything that can be quantified and subsequently measured. Sellers under fixed-price contracts are legally obligated to complete such contracts, with possible financial damages if they do not. Under the fixed-price arrangement, buyers need to precisely specify the product or services being procured. Changes in scope may be accommodated, but generally with an increase in contract price.

18. Types of internal failure costs include:

    • inspections.
    • equipment and training.
    • lost business.
    • reworking and scrapping.

19. In a weak matrix, the project managers role is:

    • part-time
    • full-time
    • occasional
    • unlimited
    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.

20. Which of the following is an example of schedule compression?

    • Activity sequencing
    • Resource leveling
    • Lead and lag adjusting
    • Crashing
    Explanation: 
    6.6.2.7 Schedule Compression
    Schedule compression techniques are used to shorten the schedule duration without reducing the project scope, in order to meet schedule constraints, imposed dates, or other schedule objectives. Schedule compression techniques include, but are not limited to:
    – Crashing. A technique used to shorten the schedule duration for the least incremental cost by adding resources. Examples of crashing include approving overtime, bringing in additional resources, or paying to expedite delivery to activities on the critical path. Crashing works only for activities on the critical path where additional resources will shorten the activity’s duration. Crashing does not always produce a viable alternative and may result in increased risk and/or cost.
    – Fast tracking. A schedule compression technique in which activities or phases normally done in sequence are performed in parallel for at least a portion of their duration. An example is constructing the foundation for a building before completing all of the architectural drawings. Fast tracking may result in rework and increased risk. Fast tracking only works if activities can be overlapped to shorten the project duration.