Education Preparing For The Project Management Professional_11 ppt

9618$$ CH14 09-06-02 15:00:32 PS TEAMFLY Team-Fly ® 272 Preparing for the Project Management Professional Certification Exam 27. According to McGregor’s concept of theory X and theory Y, which of the following statements is true? a. Theory Y managers view their subordinates as lazy, irresponsible, and resistant to change. b. Theory Y managers view their subordinates as creative, imaginative, and agreeable to change. c. Theory X managers tend to delegate authority. d. McGregor did not conceive of theory X and theory Y. 28. A project manager wants to have some of the people trained on his project team. The project team is working in a balanced matrix organi- zation. Generally, the approval for this training should come from which of the following managers? a. Project manager b. Executive manager c. Functional manager d. Human resources manager 29. Which of the following is true of management by objectives (MBO)? a. The supervisor establishes performance objectives. b. The supervisor sets the general objectives and the subordinate re- views and agrees to them. c. Objectives do not need to be quantifiable. d. The supervisor and the employee jointly establish performance ob- jectives. 30. In the matrix management organization, which of the following is true? a. The project manager is responsible for employee skills improvement. b. The functional manager is responsible for employee skills improve- ment. c. The project manager is responsible for the employee’s annual ap- praisal. d. The employee is responsible for his or her own skills improvement. 31. A project manager wants to better control the procedure for sanctioning work that is done on the project. He initiates a system for doing this. It 9618$$ CH14 09-06-02 15:00:33 PS 273 Human Resources requires written authorization to begin work on a specific activity or a work package. What is this system called? a. Project charter b. Team charter c. Work authorization d. Change management 32. The project management process groups are: a. Initiating, planning, expediting, and control. b. Plan, organize, develop, and control. c. Plan, do, observe, commit. d. Initiating, planning, executing, controlling, and closeout. 33. A functional manager needs to communicate the needs of his or her personnel requirements and the utilization of each person as well as the assignments that they have in the future. To best accomplish this, what type of document should be used? a. Gantt chart b. Network diagram c. Staffing plan d. Responsibility matrix 34. There is great difficulty in communicating in a matrix organization. One of the ways that the project manager can make communicating with people on his or her project team easier is by publishing a: a. Gantt chart. b. Project charter. c. Project team directory. d. Staffing plan. 35. The person most responsible for seeing that the proper people are as- signed to the projects where they can be used most effectively in a matrix organization is the: a. Program manager. b. Project manager. c. General manager. d. Functional manager. 9618$$ CH14 09-06-02 15:00:33 PS 274 Preparing for the Project Management Professional Certification Exam 36. In order for a formal reward system to work it must have which of the following characteristics? a. Relationship between reward and performance must be explicit. b. The reward should be distributed to as many people as possible. c. The reward must be of significant monetary value. d. The reward must have approval of all team members. 37. One of the major reasons for the pressure to use a matrix management style of organization is: a. Pressure for formal communications. b. Pressure for shared resources. c. Pressure for more accountability. d. Pressure to reduce duplication of effort. 38. The disadvantages of using the functional form of organization are: a. Poor communications between different parts of the organization. b. Potential conflict between the authority of the project manager and the functional manager. c. Difficulty of customers recognizing who represents them. d. Allocation of resources is complex. 39. A large project is approximately 50% complete. The project manager wants to establish some sort of reward system for the project team mem- bers. The project manager hopes that the reward system will help the team morale. Which of the following characteristics for reward systems should the project manager pay the closest attention to? a. The reward must be a significant monetary value. b. The reward should be distributed to as many team members as pos- sible. c. The relationship between the reward and performance must be ex- plicit. d. The budget for the reward must come from outside the project funds. 40. In a matrix organization there are always people moving between proj- ects. This makes communications difficult if not impossible since peo- ple will work on a project for a few weeks and then move to another 9618$$ CH14 09-06-02 15:00:34 PS 275 Human Resources project or work in their functional department for a time between proj- ects. One of the best tools for assuring that people can be located when they are needed is which of the following? a. Gantt chart b. Staffing plan c. Project team organization chart d. Work breakdown structure RISK MANAGEMENT 1. A project manager discovers that there is a part of the project that con- tains some risk. His strategy with this risk is to subcontract the work to an outside supplier by using a firm fixed price contract. Which of the following must the project manager do? a. The project manager should make certain that the project team does not reveal the risk to the supplier until the contract is signed. b. The project manager should make every effort to make sure that the supplier is made aware of the risk after the contract is signed. c. The project manager should make sure that the supplier understands the risk before the contract is signed. d. The project manager should assign a member of the project team to monitor the activity of the supplier to make sure that the supplier deals with the risk properly if it occurs. 2. A project manager is faced with making a decision about a risk that the team has identified. The risk involves the design of a bicycle. It has been found that the neck of the bicycle, where the steering bearing is located and the two supporting bars of the frame come together, will corrode in a high salt environment. If this takes place the neck may fail and injure the rider. The project team decides that the design of the bicycle should be modified by using corrosion resistant materials in the design of the neck. This will eliminate the risk from consideration. This tech- nique is called: a. Risk avoidance. b. Risk acceptance. c. Risk rejection. d. Risk deflection. 3. A problem occurs in the design of a grocery cart. In this case it is determined that the wheel will wear out much quicker in areas of heavy snow and ice because the salt will corrode the wheel bearings. Using sealed bearing wheels will significantly increase cost, and it is deter- 276 9618$$ CH15 09-06-02 15:00:32 PS 277 Risk Management mined that the carts themselves will be rusty and damaged at about the same time the wheel bearings begin to fail. By injecting the wheel bear- ings with a high temperature grease the life of the wheel bearings is increased considerably. The project recommends using the high temper- ature grease. This is called: a. Risk acceptance. b. Risk avoidance. c. Risk mitigation. d. Risk deflection. 4. The contingency budget will: a. Reduce the probability of scope changes. b. Reduce the probability of cost overruns. c. Increase the probability of a cost overrun. d. Increase the probability of scope changes. 5. A risk has four possible outcomes. Given the following information, what is the expected value of this risk? Probability Result of Risk 0.4 מ10,000 0.3 מ7,500 0.2 מ5,000 0.1 ם2,500 a. מ$20,000 b. מ$14,500 c. $7,000 d. מ$7,000 6. The project has done its risk analysis. In the process of risk identifica- tion the project team has determined that there are risks that will proba- bly happen that have not been identified or evaluated except by noting that other projects of this type have historically had a certain amount of risk discussed in the lessons learned of the project. This project team should set aside money to handle these risks in which financial category? 9618$$ CH15 09-06-02 15:00:33 PS 278 Preparing for the Project Management Professional Certification Exam a. Risk management fund b. Contingency budget c. Management reserve d. Emergency fund 7. A project manager observes that in one part of the project several activi- ties are being completed late. All of these activities have several days of free float associated with them. These are early warnings of the risk that the project will be late in completion. They are called: a. Risk triggers. b. Warning messages. c. Risk forecasts. d. Schedule risks. 8. The effect of risk on schedule dates for the project creates an array of dates that are possible for project completion. In a typical project the most likely date for the project will have which of the following relation- ships with the expected value for the project completion date? a. The most likely date will be earlier than the expected value date. b. The most likely date will be later than the expected value date. c. Both dates will have the same likelihood. d. The most likely date and the expected value date will occur at the same time. 9. A project manager is reviewing the risks of her project. One of the risks she is reviewing has an impact of $25,000 and an associated probability of 10%. The risk is associated with an activity that is the predecessor to seven other activities in the schedule. All eight activities are on the criti- cal path. The seven other activities have a budget of $75,000. What is the expected value of this risk? a. $10,000 b. $100,000 c. $25,000 d. $2,500 10. In probability theory, what is the probability that if you roll two dice (cubes with consecutive numbers 1 to 6 on each of the six faces) you will have at least one 6? 9618$$ CH15 09-06-02 15:00:33 PS 279 Risk Management a. 1/3 b. 11/36 c. 1/36 d. 1/6 11. A project manager is looking at the risk associated with the project schedule. Realizing that if the risks occur the project will be delivered to the stakeholders late, the project manager decides to consider the risk and promise delivery later than the most likely project completion date. He then takes the time between the promise date and the most likely completion date and distributes it among the activities of the project schedule. This creates float in the schedule. This process is called: a. Schedule delay. b. Critical chain scheduling. c. Buffering. d. Contingency scheduling. 12. A project manager wants to give some guidelines to the project team as to how risk events should be described. Which of the following items would not be appropriate in describing a risk event? a. Probability that the risk will occur b. The cost of the risk should it occur c. Expected timing of the risk when it is expected to occur d. The client’s outsourcing method 13. A project manager and her project team are analyzing risk in their proj- ect. One of the things that they might do to help identify potential risks or opportunities would be to review: a. The project budget. b. The goals and objectives of the project. c. Lessons learned from other similar projects. d. The monetary value of changes for similar projects. 14. A project manager holds the first risk meeting of the project team. The client is present at the meeting. At the meeting several risks are identi- fied and assigned to members of the project team for evaluation and quantification. The result of the meeting is: 9618$$ CH15 09-06-02 15:00:34 PS 280 Preparing for the Project Management Professional Certification Exam a. Expected value of the risk events. b. Strategies for the risk events. c. A list of potential risk events. d. General statements about risks for the project. 15. In the Monte Carlo technique, what is the criticality index? a. The number of days the project will be late divided by the project duration b. The percent of time a given activity will be on the critical path c. The percent of time an activity will be late d. The sum of the duration of the critical path activities divided by the project expected value for duration 16. The management reserve for the project contains: a. Money to offset missing cost objectives. b. Money to offset missing schedule objectives. c. Money to offset missing cost or schedule objectives. d. Money to handle the effects of known risks in the project. 17. A project manager uses the break even point to justify his project. He presents this as a justification for buying a new machine. What risk does the project manager run by using this technique to justify buying a new machine for his company? a. Break even point will favor buying a cheap, low quality machine. b. Break even point will favor buying a machine that is too expensive for the work required. c. The company may not have the funds to buy the machine in spite of the justification. d. The machine may not be available because the justification method takes a long time to calculate. 18. Goldratt’s critical chain theory says that in order to reduce risk in sched- ules we should: a. Start activities in the feeder chains as early as possible. b. Start activities in the feeder chains as late as possible. c. Start activities in the critical chains as early as possible. d. Add buffer to the critical chains. 9618$$ CH15 09-06-02 15:00:35 PS 281 Risk Management 19. In managing the risk of the project schedule we are managing the risk that the project will not be delivered or completed on time. If we as- sume that the project’s possible completion dates are normally distrib- uted and we promise the client the most likely of the project’s possible completion dates, what is the probability that the project will be deliv- ered late? a. 5% b. 10% c. 50% d. 77% 20. A risk event in a project is something that can have an effect on the project: a. For the better only, a positive effect. b. For the worse, a negative effect. c. Both better or worse, a positive or negative effect. d. Neither better nor worse, neither a positive nor a negative effect. 21. The project team has put together a project plan for a project, and the plan has been approved by the stakeholders. The customer asks the project manager if the project can be delivered seven weeks sooner. The customer offers sufficient monetary incentive for the project manager. The project manager decides to fast track the project. This decision will: a. Increase risk. b. Decrease risk. c. Not affect risk. d. Risk change cannot be determined. 22. A project team evaluates risk in the project. As an outcome there are some positive and negative risks that are identified and evaluated. To evaluate the worst case for the project the project team should evaluate and summarize: a. All of the risks affecting the project. b. Only the negative risks. c. The negative risks minus the positive risks. d. The positive risks minus the negative risks. [...]... contract Which of the following is true? a The supplier will include an allowance for the risk in the contracted price b The supplier will lose money on the contract c The project manager will have to compensate the supplier if the risk occurs d The project manager will assist the supplier with the project team if the risk occurs 3 A project manager discovers that there is a part of the project that con­... tolerance They cannot be avoided or deflected The project manager will need to use which of the following approaches? a b c d Change the risk tolerance of the client Buy insurance for the risk Ignore the risk Mitigate the risk 38 The project manager of a project evaluates the risks of the project by assessing the probability of the risk by categorizing the risks as likely or not likely and assesses their... a member of the project team to monitor the activity of the 297 298 Preparing for the Project Management Professional Certification Exam supplier to make sure that the supplier deals with the risk properly if it occurs 4 The project manager is considering contracting some of the work of the project to a service bureau The service bureau has been used in the past by this project manager The manager has... late What is the probability that the last of the three activities will be finished on time? a b c d .90 73 27 81 27 The project manager has critical parts that are needed for the project If the first order of parts is delivered late, the project will be late delivering Risk Management 283 a critical deliverable to the customer The seller that has been selected to make these parts for the project has... 287 288 Preparing for the Project Management Professional Certification Exam c Implement quality improvements as long as the benefits outweigh the costs d Rely on upper management to determine the quality budget 5 A project manager has discovered a problem and is trying to determine the cause The process whereby he identifies the variables that have the most influence on the project by holding all the variables... Risk deflection 30 A project s schedule completion dates are distributed in an even proba­ bility distribution The earliest that the project can be completed is June 1 The latest the project can be completed is June 29 What is the most likely date for project completion? a b c d June 1 June 29 June 15 There is no most likely date in an even distribution 284 Preparing for the Project Management Professional... Qualitative General Characteristic 39 A project manager must make a decision about a risk in his project He examines the extent to which the uncertainty of each of the elements of the project affects the objective being examined when all other uncer­ tain elements are held at their baseline values This technique is called which of the following? 286 Preparing for the Project Management Professional Certification... is to subcontract the work to an outside supplier by using a firm fixed price contract The project manager should: a Make certain that the project team does not reveal the risk to the supplier until the contract is signed b Make every effort to make sure that the supplier is made aware of the risk after the contract is signed c Make sure that the supplier understands the risk before the contract is signed... controlled by: a b c d The project manager The procurement manager Upper management Stakeholders 4 A project manager is managing a large project and must consider the application of a quality management plan One of the critical factors in such a plan is the cost of implementing the plan The project manager should: a Invoice the client for all quality improvements b Implement the highest quality possible... Request for bid Request for quotation Request for proposal Request for information 15 The project team is considering whether to purchase a service or do it themselves One of the items that should not be considered in their analysis is: a b c d The seller’s price The cost and availability of floor space at the team’s facility The seller’s technical staff A competitor’s method of outsourcing 16 A request for . negative effect. 21. The project team has put together a project plan for a project, and the plan has been approved by the stakeholders. The customer asks the project manager if the project can be. insurance for the risk c. Ignore the risk d. Mitigate the risk 38. The project manager of a project evaluates the risks of the project by assessing the probability of the risk by categorizing the. the following must the project manager do? a. The project manager should make certain that the project team does not reveal the risk to the supplier until the contract is signed. b. The project