CAPM : Certified Associate in Project Management (PMI-100) : Part 36
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Which of the following is a tool and technique used to monitor risk?
- Technical performance measurement
- Cost performance baseline
- Benchmarking
- Cost of quality
Explanation:
11.6.2.4 Technical Performance Measurement
Technical performance measurement compares technical accomplishments during project execution to the schedule of technical achievement. It requires the definition of objective, quantifable measures of technical performance, which can be used to compare actual results against targets. Such technical performance measures may include weight, transaction times, number of delivered defects, storage capacity, etc. Deviation, such as demonstrating more or less functionality than planned at a milestone, can help to forecast the degree of success in achieving the project’s scope. -
Which of the following is a statistical concept that calculates the average outcome when the future includes scenarios that may or may not happen?
- Sensitivity analysis
- Three-point estimate
- Modeling and simulation
- Expected monetary value analysis
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Which of the following is an output of Close Procurements?
- Accepted deliverables
- Organizational process assets updates
- Managing stakeholder expectations
- Performance reports
Explanation:12.4.3.2 Organizational Process Assets Updates
Elements of the organizational process assets that may be updated include, but are not limited to:
– Procurement file. A complete set of indexed contract documentation, including the closed contract, is prepared for inclusion with the final project fles.
– Deliverable acceptance. Documentation of formal acceptance of seller-provided deliverables may be required to be retained by the organization. The Close Procurement process ensures this documentation requirement is satisfed. Requirements for formal deliverable acceptance and how to address nonconforming deliverables are usually defined in the agreement.
– Lessons learned documentation. Lessons learned, what has been experienced, and process improvement recommendations, should be developed for the project fle to improve future procurements.Process: 12.4 Close Procurements
Definition: The process of completing each project procurement.
Key Benefit: The key benefit of this process is that it documents agreements and related documentation for future reference.Inputs
1. Project management plan
2. Procurement documents
Tools & Techniques
1. Procurement audits
2. Procurement negotiations
3. Records management system
Outputs
1. Closed procurements
2. Organizational process assets updates -
The probability and impact matrix is primarily used to:
- Quantify risk issues for trends during a quality audit.
- Develop a risk register for risk planning.
- Evaluate each risk’s importance and priority during Perform Qualitative Risk Analysis.
- Define risk and compare impacts during Perform Quantitative Risk Analysis.
Explanation:Probability and impact matrix. A probability and impact matrix is a grid for mapping the probability of each risk occurrence and its impact on project objectives if that risk occurs. Risks are prioritized according to their potential implications for having an effect on the project’s objectives. A typical approach to prioritizing risks is to use a look-up table or a probability and impact matrix. The specific combinations of probability and impact that lead to a risk being rated as “high,” “moderate,” or “low” importance are usually set by the organization.
Process: 11.3 Perform Qualitative Risk Analysis
Definition: The process of prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact.
Key Benefit: The key benefit of this process is that it enables project managers to reduce the level of uncertainty and to focus on high-priority risks.Inputs
1. Risk management plan
2. Scope baseline
3. Risk register
4. Enterprise environmental factors
5. Organizational process assets
Tools & Techniques
1. Risk probability and impact assessment
2. Probability and impact matrix
3. Risk data quality assessment
4. Risk categorization
5. Risk urgency assessment
6. Expert judgment
Outputs
1. Project documents updates -
A car company authorized a project to build more fuel-efficient cars in response to gasoline shortages. With which of the following strategic considerations was this project mainly concerned?
- Market demand
- Legal requirements
- Strategic Opportunity
- Technological advance
Explanation:
1.4.3 Projects and Strategic Planning
Projects are often utilized as a means of directly or indirectly achieving objectives within an organization’s
strategic plan. Projects are typically authorized as a result of one or more of the following strategic considerations:
– Market demand (e.g., a car company authorizing a project to build more fuel-efficient cars in response to gasoline shortages);
– Strategic opportunity/business need (e.g., a training company authorizing a project to create a new course to increase its revenues);
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 infectious diseases);
– Environmental consideration (e.g., a public company authorizing a project to create a new service for electric car sharing to reduce pollution);
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 electronics firm authorizing a new project to develop a faster, cheaper, and smaller laptop based on advances in computer memory and electronics technology); and
– Legal requirement (e.g., a chemical manufacturer authorizing a project to establish guidelines for proper handling of a new toxic material).
Projects, within programs or portfolios, are a means of achieving organizational goals and objectives, often in the context of a strategic plan. Although a group of projects within a program can have discrete benefits, they can also contribute to the benefits of the program, to the objectives of the portfolio, and to the strategic plan of the organization.
Organizations manage portfolios based on their strategic plan. One goal of portfolio management is to maximize the value of the portfolio through careful examination of its components—the constituent programs, projects, and other related work. Those components contributing the least to the portfolio’s strategic objectives may be excluded.
In this way, an organization’s strategic plan becomes the primary factor guiding investments in projects. At the same time, projects provide feedback to programs and portfolios by means of status reports, lessons learned, and change requests that may help to identify impacts to other projects, programs, or portfolios. The needs of the projects, including the resource needs, are rolled up and communicated back to the portfolio level, which in turn sets the direction for organizational planning. -
A Pareto chart is a specific type of:
- control chart
- histogram
- cause-and-effect diagram
- scatter diagram
Explanation:Pareto diagrams, exist as a special form of vertical bar chart and are used to identify the vital few sources that are responsible for causing most of a problem’s effects. The categories shown on the horizontal axis exist as a valid probability distribution that accounts for 100% of the possible observations. The relative frequencies of each specified cause listed on the horizontal axis decrease in magnitude until the default source named “other” accounts for any non specified causes. Typically, the Pareto diagram will be organized into categories that measure either frequencies or consequences.
Histograms, are a special form of bar chart and are used to describe the central tendency, dispersion, and shape of a statistical distribution. Unlike the control chart, the histogram does not consider the influence of time on the variation that exists within a distribution.
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A process is defined as:
- A set of interrelated actions and activities performed to achieve a certain objective.
- A set of guidelines that explains how to carry out a particular task.
- The inputs for a task and the tools and techniques required to carry out the task.
- A collection of logically related project activities, usually culminating in the completion of a major deliverable.
Explanation:
PROJECT MANAGEMENT PROCESSES
Project management is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements. This application of knowledge requires the effective management of the project management processes.
A process is a set of interrelated actions and activities performed to create a pre-specified product, service, or result. Each process is characterized by its inputs, the tools and techniques that can be applied, and the resulting outputs. As explained in Section 2, the project manager needs to consider organizational process assets and enterprise environmental factors. These should be taken into account for every process, even if they are not explicitly listed as inputs in the process specification. Organizational process assets provide guidelines and criteria for tailoring the organization’s processes to the specific needs of the project. Enterprise environmental factors may constrain the project management options. -
A project can be defined as a:
- Temporary endeavor undertaken to create a unique product, service, or result
- Temporary endeavor that produces repetitive outputs
- Permanent endeavor undertaken to create a unique product, service, or result
- Permanent endeavor that produces repetitive outputs
Explanation:
1.2 What is a Project?
A project is a temporary endeavor undertaken to create a unique product, service, or result. The temporary nature of projects indicates that a project has a definite beginning and end. The end is reached when the project’s objectives have been achieved or when the project is terminated because its objectives will not or cannot be met, or when the need for the project no longer exists. A project may also be terminated if the client (customer, sponsor, or champion) wishes to terminate the project. Temporary does not necessarily mean the duration of the project is short. It refers to the project’s engagement and its longevity. Temporary does not typically apply to the product, service, or result created by the project; most projects are undertaken to create a lasting outcome. For example, a project to build a national monument will create a result expected to last for centuries. Projects can also have social, economic, and environmental impacts that far outlive the projects themselves. -
A project manager needs to deliver the project 2 weeks before the planned date without changing the scope. Which of the following techniques may be applied to reevaluate the schedule?
- What-if scenario analysis
- Critical chain method
- Schedule crashing
- Resource leveling
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. -
A risk may be graded into different priorities by which process?
- Risk monitoring and controlling
- Risk response planning
- Qualitative risk analysis
- Quantitative risk analysis
Explanation:
“Qualitative Risk Analysis assesses the priority of identified risks using their probability of occurring, the corresponding impact […] as well as other factors such as the time frame and risk tolerance […].” -
Activities on the critical path have which type of float?
- Zero free float
- Zero or negative float
- Negative and positive float
- Zero or positive float
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. This schedule network analysis technique calculates the early start, early finish, late start, and late finish dates for all activities without regard for any resource limitations by performing a forward and backward pass analysis through the schedule network, as shown in Figure 6-18. In this example the longest path includes activities A, C, and D, and, therefore, the sequence of A-C-D is the critical path. The critical path is the sequence of activities that represents the longest path through a project, which determines the shortest possible project duration. The resulting early and late start and finish dates are not necessarily the project schedule, rather they indicate the time periods within which the activity could be executed, using the parameters entered in the schedule model for activity durations, logical relationships, leads, lags, and other known constraints. The critical path method is used to calculate the amount of scheduling flexibility on the logical network paths within the schedule model.On any network path, the schedule flexibility is measured by the amount of time that a schedule activity can be delayed or extended from its early start date without delaying the project finish date or violating a schedule constraint, and is termed “total float.” A CPM critical path is normally characterized by zero total float on the critical path. As implemented with PDM sequencing, critical paths may have positive, zero, or negative total float depending on constraints applied. Any activity on the critical path is called a critical path activity. Positive total float is caused when the backward pass is calculated from a schedule constraint that is later than the early finish date that has been calculated during forward pass calculation. Negative total float is caused when a constraint on the late dates is violated by duration and logic. Schedule networks may have multiple near-critical paths. Many software packages allow the user to define the parameters used to determine the critical path(s).
Adjustments to activity durations (if more resources or less scope can be arranged), logical relationships (if the relationships were discretionary to begin with), leads and lags, or other schedule constraints may be necessary to produce network paths with a zero or positive total float. Once the total float for a network path has been calculated, then the free float—the amount of time that a schedule activity can be delayed without delaying the early start date of any successor or violating a schedule constraint—can also be determined. For example the free float for Activity B, in Figure 6-18, is 5 days. -
An associate who calculates fees daily to support the department is doing which of the following?
- Phase work
- Project work
- Lifecycle work
- Operations work
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An imposed date for completion of the project by the customer is an example of a project:
- deliverable
- assumption
- constraint
- exclusion
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An input required to develop a preliminary project scope statement is:
- Organizational Structure
- Organizational Process Assets
- Organizational Matrix
- Organizational Breakdown Structures
Explanation:13.2.1.4 Organizational Process Assets
Described in Section 2.1.4. All organizational process assets are used as inputs for the Plan Stakeholder Management process. Of these, lessons learned database and historical information are of particular importance, because they provide insights on previous stakeholder management plans and their effectiveness. These can be used to plan the stakeholder management activities for the current project.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.
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An output of the Manage Project Team process is:
- project management plan updates
- project staff assignments updates
- team performance assessments
- resource calendar updates
Explanation:9.2.3.3 Project Management Plan Updates
Elements of the project management plan that may be updated include, but are not limited to, the human resource management plan. For example, the person assigned to a predefined role may not fulfll all staffing requirements outlined in the human resource management plan. When gaps occur, the project management plan needs to be updated to change the team structure, roles, or responsibilities.Process: 9.4 Manage Project Team
Definition: The process of tracking team member performance, providing feedback, resolving issues, and managing changes to optimize project performance.
Key Benefit: The key benefit of this process is that it influences team behavior, manages conflict, resolves issues, and appraises team member performance.Inputs
1. Human resource management plan
2. Project staff assignments
3. Team performance assessments
4. Issue log
5. Work performance reports
6. Organizational process assets
Tools & Techniques
1. Observation and conversation
2. Project performance appraisals
3. Conflict management
4. Interpersonal skills
Outputs
1. Change requests
2. Project management plan updates
3. Project documents updates
4. Enterprise environmental factors updates
5. Organizational process assets updates -
Budgets reserved for unplanned changes to project scope and cost are:
- Contingency reserves.
- Management reserves.
- Authorized budgets.
- Cost baselines.
Explanation:
6.5.2.6 Reserve Analysis
Definition: 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.
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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. -
Cost aggregation is typically performed by aggregating work packages in accordance with the:
- Program evaluation and review technique (PERT).
- Cost of quality (COQ).
- Rough order of magnitude (ROM).
- Work breakdown structure (WBS).
Explanation:
7.3.2.1 Cost Aggregation
Cost estimates are aggregated by work packages in accordance with the WBS. The work package cost estimates are then aggregated for the higher component levels of the WBS (such as control accounts) and ultimately for the entire project. -
Cost of quality (COQ) refers to total cost of/to:
- All efforts related to quality.
- Product inspection activities.
- Maintain plan quality.
- Perform quality control.
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Cost variance (CV) is equal to earned value:
- Minus actual cost [EV – AC].
- Minus planned value [EV – PV].
- Divided by actual cost [EV/AC].
- Divided by planned value [EV/PV].
Explanation:
CV = EV – AC
CPI = EV / AC
SV = EV – PV
SPI = EV / PV -
Decomposition, rolling wave planning, and templates are all tools and techniques for which of the following?
- Define Activities
- Estimate Activity Durations
- Develop Schedule
- Sequence Activities
Explanation:5.4.2.1 Decomposition
Decomposition is a technique used for dividing and subdividing the project scope and project deliverables into smaller, more manageable parts. The work package is the work defined at the lowest level of the WBS for which cost and duration can be estimated and managed. The level of decomposition is often guided by the degree of control needed to effectively manage the project. The level of detail for work packages will vary with the size and complexity of the project. Decomposition of the total project work into work packages generally involves the following activities:
– Identifying and analyzing the deliverables and related work;
– Structuring and organizing the WBS;
– Decomposing the upper WBS levels into lower-level detailed components;
– Developing and assigning identification codes to the WBS components; and
– Verifying that the degree of decomposition of the deliverables is appropriate.6.2.2.2 Rolling Wave Planning
Rolling wave planning is an iterative planning technique in which the work to be accomplished in the near term is planned in detail, while the work in the future is planned at a higher level. It is a form of progressive elaboration.
Therefore, work can exist at various levels of detail depending on where it is in the project life cycle. During early strategic planning, when information is less defined, work packages may be decomposed to the known level of detail. As more is known about the upcoming events in the near term, work packages can be decomposed into activities.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