Question 1

The lower the better for Schedule Performance Index (SPI) and Cost Performance Index (CPI).

Accepted Answer

Just remember that when a project's CPI is below 1.0, then your project is over its budget. If the SPI is below 1.0, then the project is behind schedule.
Key Takeaway: The higher the better for CPI and SPI. This is just a warm-up. We'll ask you some more questions around this.

Question 2

The CPI of project is .90, and the EV is $90,000. How much money has actually been spent on the project?
A)$100,000
B)$81,000
C)$810,000
D)$99,000
E)$98,100

Accepted Answer

AC = EV / CPI = $90,000 / .9 = $100,000
Key Takeaway: Know this formula for your career and for the PMI exam. There will be at least one question where you have two out of the three variables and need to calculate the third.

Question 3

You are the CEO receiving a report for a crucial, high visibility project, The Omega Project. Your PM reports that Omega's schedule performance index (SPI) is sitting at 1.28 and cost performance index (CPI) at 0.88. What would you say describes Omega's status?
A)Omega is ahead of schedule and within its budget
B)Omega is behind schedule and within its budget
C)Omega is well ahead of schedule, but over-budget
D)Omega is right on schedule, but it is running over-budget.
E)Omega is behind schedule and over-budget

Accepted Answer

When a project's CPI is below 1.0, then your project is over its budget. If the SPI is below 1.0, then the project is behind schedule.
With Project Omega, the project is well ahead of schedule, since its SPI is above 1.28. That means it's 28% ahead of schedule. However, is over cost at a CPI that's below 1.0.
Key Takeaway: There's a problem here with the way the project is being managed. In a rush to get things done, it's possible the PM is pushing resources hard and increasing cost. An example of when this happens is if overtime hours billed at 1.5x regular rates are used.

Question 4

Which of the following is NOT true about the Project Statement of Work?
A)Describes the projects needs
B)The statement of work outlines the scope of the project
C)It is created by the project sponsor
D)It needs to be completed before the project charter
E)Clarifies stakeholders and their roles

Accepted Answer

An incomplete statement of work can be used as an input to help create the project charter. The other statements are all true.
The statement of work exists to provide clear direction to projects and project managers in the initial stages. The statement of work, frequently referred to as a SoW, lists key strategic goals, constraints, success criteria, and organizational framework. Furthermore, the SoW clarifies responsibilities and specific roles of project stakeholders in a relationship.
Key Take Away: The reason an incomplete SoW is often used is that a good project manager can come in with ideas and strategic knowledge that can substantially shape a project.

Question 5

Terry is managing a project at a top construction firm. Her project team includes Tammy and Sal. She's also in constant contact with Burt (her client), Ben (her Direct Manager) and Peter (PMO Officer). Who are the stakeholders in this project?
A)Terry, Burt
B)Terry, Burt, Tammy, Sal
C)Burt, Peter
D)Terry, Tammy, Sal, Burt, Ben, Peter
E)Terry, Tammy

Accepted Answer

Stakeholders include the Project Manager, other members of the Project Team, the Client, Sponsor, and anyone from the PMO. Therefore, d is the most comprehensive answer in this case.
Key Take Away: In crucial decision-making moments, it's important to keep in mind those people who are your project's Stakeholders. Being able to identify which roles they may fall into is a key step.

Question 6

What are Key Performance Indicators used for at the strategic-plan level?
A)KPIs assess the current state of the organization and recommend appropriate actions.
B)KPIs monitor business activity in real time
C)KPIs measure otherwise-difficult activities, such as customer satisfaction and employee skill development.
D)All of the above

Accepted Answer

Key Performance Indicators (KPIs) measure all of the above.
Key Takeaway: KPIs assess the current state of the organization, monitor business activity, and quantify hard-to-measure activities. These Indicators are typically closely tied to the company's strategic plan and differ from organization to organization, depending upon any given company's nature and strategy. KPIs are usually defined within framework established by the company's business plan.

Question 7

Finn's boss asked him to put together a list of SMART key performance indicators for their organization, Iron Man, Inc. Which of the following lists correctly identifies SMART indicators?
A)Specific, Measurable, Achievable, Realistic, Timely
B)Solitary, Monetary, Accessible, Realistic, Timely
C)Strategic, Measurable, Authorized, Related, Targeted
D)Strong, Monetary, Achievable, Reactionary, Targeted

Accepted Answer

SMART indicators are Specific, Measurable, Achievable, Realistic, and Timely.
Key Takeaway: When defining KPIs for any organization, the KPIs must always be SMART. If a KPI is not specific, measurements may have inconstancies; if it is not measurable, it is not a metric and therefore, not a KPI; target values must always be achievable and realistic within a given time frame; and, of course, there must be a deadline. An untimely achievement is a non-achievement.
Lately, there has been talk of replacing SMART with SMARTA, with the last A meaning align. In this case, a KPI would need to be aligned with the strategic plan of the organization.

Question 8

Lance Uppercut has been on the job for one week as a Project Manager. He's been advised to safeguard confidential information at all cost. One day, he's approached by a coworker who claims to need confidential information that Lance is privy to. What is Lance's best option as to what to do?
A)Take the coworker's word for it, and give him the confidential information
B)Ask around as to the character of the person requesting the information
C)Refuse to give him the information
D)Stall until Lance can figure out what to do
E)Request authorization from his boss and his co-worker's boss.

Accepted Answer

According to the Code, Project Managers are bound to do what's ethically right at all times AND to guard confidential information.
In this case, Jim has already been personally advised not to share confidential to anyone, therefore he should not share any confidential information with the coworker, nor need he ask around as to the character of this coworker, nor stall. Jim would be right to refuse giving the coworker the information, but a better answer is to request permission from more senior people. This has the additional role of notifying managers just in case Lance's co-worker is up to no good.
Key Take Away: Being confronted by someone and put in an awkward situation does not make it permissible to go against directives from management. Unfortunately, project managers must exercise discretion from a higher moral ground and, at times, be uncooperative if being cooperative will compromise the integrity of their project.

Question 9

Which situation below would most negatively impact Rick's personal integrity as a Project Manager?
A)Rick has inadvertently made a mistake on a status update.
B)Rick accepted a lunch invitation from a contractor he does business with.
C)Rick got frustrated with some team members, lost his temper and shared with them a few "choice" words.
D)Rick allowed a new deliverable to be added to the project, because it would have piggy-backed easily off of another deliverable.
E)These are all fine.

Accepted Answer

The biggest impact to Rick's integrity would be felt by Rick losing his temper and insulting team members. Teams members are just that - part of your team, and the project is dependent upon all members working effectively together. Negative outbursts toward team members cause rifts, damage personal interaction on a project, as well as cause potentially career-long repercussions in how people view that person.
A mistaken report, accepting a lunch invitation and adding a deliverable to your project scope would not necessarily damage one's personal integrity, at least, not to the extent of (d). With lunch however, Rick must be careful that he abides by the appropriate policy on paying for the meal and not letting it affect his decision-making in key project decisions related to contracting.
Key Take Away: Project Managers again, who are "in the trenches" of a large-scale project, often practice the credo of putting the project before everything else; however, that should not translate into disrespecting one's team members. It's counter-productive and damages your reputation as a leader.

Question 10

This is based on a real scenario at a Japanese investment bank. You have discovered a major complex case of international fraud at the company in the course of executing a project. You have reported it to your manager and were not satisfied by his lack of response. What should your NEXT action be?
A)Call your lawyer, even though he's kind of a jerk.
B)Tell your boss' boss. If he doesn't listen, tell your boss' boss' boss.
C)By telling your boss, you did your duty.
D)Resign from your position.
E)Report it to the authorities.

Accepted Answer

We believe that all A, B, D and E are all actions you could and should take. However, the first step is to consult legal counsel to make ensure your steps are correct. Your entire career is in jeopardy here. Take a wrong step and you may also be implicated.
Key Takeaway: It is seriously recommended that you call your lawyer before any other action. The last thing you would want is the fraud to implicate you. Whatever your next choice is, make sure you cover all your legal bases before you proceed.

Question 11

What is true of corrective action?
A)Action against a corrupt employee
B)Requires approval of all stakeholders
C)Action to bring project performance in line with what has been planned

Accepted Answer

A corrective action is an action to bring project performance in line with what has been planned.
Key Takeaway: Monitor closely throughout the project and take any corrective actions as soon as possible.

Question 12

What describes the Executing Process Group?
A)Complete work and meet requirements defined in Initiating Process Group
B)Measure project performance relative to the project management plan
C)Formally close out the project
D)Creating of the project plan

Accepted Answer

The goal of the Executing Process group is to complete work and meet requirements defined in Initiating Process Group.
Key Takeaway: Know this definition. It will help you keep Executing Process group separate from the Monitoring and Controlling Process group.

Question 13

What is a murder board? Select all that apply:
A)A committee of people who critically assess the necessity of projects.
B)Leadership committee
C)An early stage planning process
D)A way of soliciting personal feedback
E)A method of ending projects

Accepted Answer

A murder board is an early stage planning process meant to assess the value and strategic fit of a project. It utilizes a committee of people who do their best to "shoot down" the project.
Key Takeaway: The idea is if a project can withstand the murder board, it has legs and is worth exploring further. We like the murder board as a check/balance in an organization where senior managers dictate a lot of the strategy. An honest murder board can eliminate a lot of projects that should never have existed to begin with.

Question 14

a Work Breakdown Structure (WBS) typically contains a detailed description of all of the work packages.

Accepted Answer

the WBS boxes are usually filled with 1 to 5 word descriptions of a work package. The detail is usually contained in the WBS dictionary. Most project managers we've seen go from a WBS-like exercise into creating a task by task project plan. The WBS dictionary contains a description of the work for each package in the WBS.
Key Takeaway: Honestly, the WBS dictionary is typically a lot of work and avoided by project managers like the plague. However, it is incredibly effective for preventing scope creep by providing detail on what each package of work will entail.

Question 15

Select all that apply - a WBS dictionary can contain which of the following:
A)Interdependencies
B)Approval criteria
C)Detailed description
D)Numeric identifier
E)Gold plating

Accepted Answer

What is contained in the WBS dictionary is at the discretion of the project manager, but a good entry will have a numeric identifier corresponding to the WBS, a description with appropriate detail, the requirements for acceptance/approval and interdependencies.
Key Takeaway: We think of the a WBS entry as something you could hand to someone who is going to take on the task as an info sheet on that specific work package.

Question 16

When is the project manager using analogous estimating?
A)The PM doesn't have all of the information needed to give time estimates
B)The PM needs to pad their estimates
C)The PM is using a mathematical model
D)The PM uses similar projects or activities to assist with time estimates
E)The PM is using a Monte Carlo technique

Accepted Answer

Project managers can use similar projects or activities to help them with giving time estimates on another project plan. If there is no other information to go on, this activity is an effective estimation methodology.
Key Takeaway: Look close enough and you're likely to find tasks within your organization that were similar to ones on the project you are trying to estimate with.

Question 17

When is the project manager using parametric estimation?
A)If the Project Manager is using his instinct to determine the estimated project length
B)If the Project Manager needs to pad their estimates
C)If the Project Manager is using Monte Carlo analysis
D)Using a statistical relationship that exists through historical data or other mathematical relationship
E)None of the above

Accepted Answer

Parametric estimating refers, primarily, to an estimation technique which utilizes the statistical relationship that exists between a series of historical data and a particular delineated list of other variables.
Key Takeaway: An example of this would be using past estimates on the size of projects and figuring out a relationship. For example, if it took you three weeks to install five units, you might being to extrapolate that it would take 15 weeks to install 25 units. It's a big term for something you probably do for every project.

Question 18

Which of the following is common problem in project management that is a typical result of unrealistic time estimates by the project manager?
A)Fast tracking
B)Critical chain
C)Schedule compression
D)Employee changes
E)Crashing

Accepted Answer

Schedule compression means that the project manager must expedite or accelerate tasks to meet a deadline. Fast tracking is doing critical path activities in parallel even though they were originally planned to be done back to back or in a series. The definition of crashing is to add more resources to a project in an attempt to complete the project sooner. Crashing and fast-tracking are options to deal with schedule compression problems.
Key Takeaway: Schedule compressions can create a great deal of conflict between the Project Manager and his or her boss. Ultimately it is the Project Manager's responsibility to create a realistic schedule.

Question 19

What does the 50/50 rule of progress tracking imply?
A)An activity is considered 50% complete when it is 50% complete.
B)An activity is considered 50% complete when it begins and 100% complete when the activity is completed
C)An activity is consider 50% complete when its successor begins
D)An activity is credited for 50% complete when it half done, and the other 50% when it is complete

Accepted Answer

The 50/50 rule for progress tracking means that an activity is considered 50% complete when it begins and gets credit for the last 50% when it is completed.
Key Takeaways: This is a popular methodology as it keeps things simple for progress tracking. However, you can imagine that its accuracy is not fantastic if activities cannot be broken into small pieces. We prefer the 20/80 rule even if it makes the calculations slightly more difficult (only slightly).

Question 20

What does the 20/80 rule of progress tracking imply?
A)An activity is considered 20% complete when it is 80% complete.
B)80% of an activity is done after the most difficult 20% of an activity is completed
C)An activity is credited for 20% complete when it half done, and the other 80% when it is complete
D)An activity is considered 20% complete when it begins and 100% complete when the activity is completed

Accepted Answer

The 20/80 rule for progress tracking means that an activity is considered 20% complete when it begins and gets credit for the last 80% when it is completed.
Key Takeaways: We know this was similar to Time Management #14, but we wanted to make sure you walked away knowing how these rules for progress tracking are applied. You will always look better using 50/50, but 20/80 is more accurate.

Quiz 2: Project Management: Cost, Framework, Responsibility, Scope, and Time

The lower the better for Schedule Performance Index (SPI) and Cost Performance Index (CPI).

The CPI of project is .90, and the EV is $90,000. How much money has actually been spent on the project?

You are the CEO receiving a report for a crucial, high visibility project, The Omega Project. Your PM reports that Omega's schedule performance index (SPI) is sitting at 1.28 and cost performance index (CPI) at 0.88. What would you say describes Omega's status?

Which of the following is NOT true about the Project Statement of Work?

Terry is managing a project at a top construction firm. Her project team includes Tammy and Sal. She's also in constant contact with Burt (her client) , Ben (her Direct Manager) and Peter (PMO Officer) . Who are the stakeholders in this project?

What are Key Performance Indicators used for at the strategic-plan level?

Finn's boss asked him to put together a list of SMART key performance indicators for their organization, Iron Man, Inc. Which of the following lists correctly identifies SMART indicators?

Lance Uppercut has been on the job for one week as a Project Manager. He's been advised to safeguard confidential information at all cost. One day, he's approached by a coworker who claims to need confidential information that Lance is privy to. What is Lance's best option as to what to do?

Which situation below would most negatively impact Rick's personal integrity as a Project Manager?

This is based on a real scenario at a Japanese investment bank. You have discovered a major complex case of international fraud at the company in the course of executing a project. You have reported it to your manager and were not satisfied by his lack of response. What should your NEXT action be?

What is true of corrective action?

What describes the Executing Process Group?

What is a murder board? Select all that apply:

a Work Breakdown Structure (WBS) typically contains a detailed description of all of the work packages.

Select all that apply - a WBS dictionary can contain which of the following:

When is the project manager using analogous estimating?

When is the project manager using parametric estimation?

Which of the following is common problem in project management that is a typical result of unrealistic time estimates by the project manager?

What does the 50/50 rule of progress tracking imply?

What does the 20/80 rule of progress tracking imply?