Project Integration Management

Chapter 4

1
KEY TERMS

 What is Project Integration

 4.1 Develop Project Charter
 4.2 Develop Project Management Plan
 4.3 Direct and Manage Project Work
 4.4 Monitor and Control Project Work
 4.5 Perform Integrated Change Control

 4.6 Close Project

2
 Project Integration Management
• Includes the processes and activities needed to identify, define,
combine, unify, & coordinate the various processes & project
management activities within the project management process groups.

• Ensures that the project processes are properly coordinated Tradeoffs

between competing objectives and alternatives in order to meet
stakeholder approval .
Project Plan Development
Project Plan Execution
Overall Change Control

• These processes may occur repeatedly over the project duration /

Historical Records are needed to perform project management well, they
are inputs to continuous improvement

3
Project Integration Management
Monitoring &
Controlling Processes
Planning
Processes

Enter phase/ Initiating Closing Exit phase/

Start project Processes Processes End project

Executing
Processes

Knowledge Process
Area Initiating Planning Executing Monitoring & Control Closing
• Develop • Develop • Direct and • Monitor and Control • Close
Project Project Manage Project Work Project
Processes
Charter Management Project • Perform Integrated
Plan Execution Change Control

4
4.1- Develop Project
Charter

6
4.1- Develop Project Charter
 The process of developing a document that formally authorizes a project
or a phase and documenting initial requirements that satisfy the
stakeholder’s needs and expectations ( PROJECT BIRTH CERTIFICATE )
 Project are authorized by someone external to the project such as
sponsor, PMO, portfolio steering committee.
 Project charter can be created by them or delegated to Project Manager.

7
7
Develop Project Charter INPUTS :
1- Project Statement of Work.

A narrative description of products or services to be delivered by the

project.

The SOW includes:

Business need
Product scope description
Strategic plan

2- Business Case
Provide the necessary information from business standpoint to
determine whether or not the project is worth the required investment.
It is a result for:

Market Demand / Organizational Need / Customer Request / Technological

Advance / Legal Requirement / Ecological (Environmental) Impact /
Social Need
8
Project selection

Two categories:

1. Benefit measurement methods (Comparative approach)

Murder board (a panel of people who try to shoot down a new

project idea)
Peer review
Scoring models
* Economic models (described next)

2. Constrained optimization methods (Mathematical approach)

Linear programming
Integer programming
Dynamic programming
Multi-objective programming

9
Project Selection – Economic Models

 Present value (PV): The value today of future cash flows

FV FV = future value
PV 1 r n r = interest rate
n = number of time period

Question
What is the present value PV of $300,000 received three years from now if we
expect the interest rate to be 10 percent?
$300,000 / (1 + 0.1)3
PV = $300,000/1.331 = $225,394.

 Net present value (NPV):

Project with positive & greater NPV value is better. It is the present value
of the total benefits (income or revenue) minus the costs over many
time periods
10
Question

An organization has two projects to choose from. Project A will take three years
to complete and has an NPV of $45,000. Project B will take six years to
complete and has an NPV of $85,000. Which one is a better investment?

Answer Project B.

How to calculate NPV

Time Income / PV of income at 10% Cost PV of Cost at 10%

( given )
period Revenue Interest Rate Interest R0ate
( given )

0 0 0 200 200
1 50 45 100 91
2 100 83 0 0
3 300 225 0 0
TOTAL 353 291

NPV = 353-291 = 62
11
 Internal rate of return (IRR): Project with greater IRR value is better.
It is the rate between the cost and the revenue.
Question
An organization has two projects from which to choose: Project A with an
IRR of 21 % or Project B with an IRR of 15 %. Which one is a better option?
Answer Project A

 Payback period:
The number of time periods it takes to recover your investment in the
project before you start accumulating profit. ( Break Even Point )
Question
There are two projects from which to choose: Project A with a payback
period of six months or Project B with a payback period of 18 months.
Which one should the organization select?

Answer Project A

12
 Benefit-cost ratio:

 compares the benefits to the costs of different options

 Project with greater benefit-cost ratio value is better.
 How much dollars i receive (Production) when spending 1 $

Question
What does a benefit cost ratio of 1.7 mean?
 A. The costs are greater than the benefits.

 B. Revenue is 1.7 times the costs.

 C. Profit is 1. 7 times the costs.

 D. Costs are 1. 7 times the profit.

Answer B.
The benefits, or revenue, the project brings to the organization are 1.7 times
the cost of the initiative.
13
Question

Project A Project B A OR B
PV 95000 $ 75000 $
IRR 13 % 17 %
Payback Period 16 month 21 month
Cost Benefit Ratio 2.79 1.3

15
Question

Project A Project B A OR B
PV 95000 $ 75000 $
IRR 13 % 17 %
Payback Period 16 month 21 month
Cost Benefit Ratio 2.79 1.3

Project A Project B A OR B
PV 95000 $ 75000 $ A
IRR 13 % 17 % B
Payback Period 16 month 21 month A
Cost Benefit Ratio 2.79 1.3 A

16
Project Selection – Important Terms

 Opportunity Cost:

 the opportunity given up by selecting one project over

another

 Question
An organization has two projects to choose from. Project A has an NPV of
$45,000. Project B has an NPV of $85,000. What is the opportunity cost of
selecting project B

Answer Project B.

16
Project Selection – Important Terms

 Sunk Costs:

 Are expended costs

 Should not be considered when deciding whether to continue with
a troubled project.

 Question
 An organization has a project with an initial budget of $1,000,000. The
project is half complete, and it has spent $2,000,000. Should the
organization consider the fact that it is already $1,000,000 over budget
when determining whether to continue with the project?

 Answer No. The money spent is gone.

17
Project Selection – Important Terms

 Law of Diminishing Returns:

 After a certain point, adding more input/resource will not produce a

proportional increase in productivity

 A single programmer may produce at a rate of 1 module per hour.

With a second programmer, the two may produce at a rate of 1.75
modules per hour (0.75 increase). With a third programmer, the group
may produce at a rate of 2.25 modules per hour (0.5 increase).

 This disparity may be due to many factors. For example, added

coordination is required between programmers.

18
Project Selection – Important Terms

 Working Capital

 Current assets minus current liabilities for an organization.

 Amount of money the company has available to invest

 Depreciation

 Straight line depreciation

 Accelerated depreciation
 Depreciates faster than straight line
 Two forms:
(1) Sum of the Years Digits.
(2) Double Declining Balance.

19
  Straight line depreciation

 A laptop is worth $1,000. It can be scrapped at the end of a 5 year life

for $100.
 It's value can be depreciated as follows. 1,000 - 100 = 900 $.
 Divide by the number of years in it's useful life 900 ÷ 5 = 180 $.
 You can depreciate that laptop $180 / year over it's 5 year life.
 If we decided in year 4 that the laptop was good for an extra 5 years, we
could only deduct a total of $180 over the next 5 years or $36 per year.

Year 1: 20% ($180)

Year 2: 20% ($180)
Year 3: 20% ($180)
Year 4: 20% ($180)
Year 5: 20% ($180)

20
Question
Which of the following sequences represents straight line
depreciation?

 A. $100,$100,$100
 B. $100,$120,$140
 C. $100,$120,$160
 D. $160,$140,$120

21
Question
Which of the following sequences represents straight line
depreciation?

 A. $100,$100,$100
 B. $100,$120,$140
 C. $100,$120,$160
 D. $160,$140,$120

 Answer A
Straight line depreciation uses the same amount each time period.

22
  Accelerated depreciation

1. Sum of the Years Digits ( for the previous Laptop worth 1000$ )
 It essentially front loads what you can deduct instead of spreading it
over the useful life.
 First we take the asset's useful life and add together the digits for
each of those years.
 We add 1 + 2 + 3 + 4 + 5 = 15.
 Each number is then divided by the "sum of years" to determine the
percentage by which the asset should be depreciated each year.
 The largest deduction is taken the first year and a lesser amount
each successive year.

Year 1: 5 ÷ 15 = 33% ($297)

Year 2: 4 ÷ 15 = 27% ($243)
Year 3: 3 ÷ 15 = 20% ($180)
Year 4: 2 ÷ 15 = 13% ($117)
Year 5: 1 ÷ 15 = 07% ($63)

23
  Accelerated depreciation

2. Double Declining Balance ( for the previous Laptop worth 1000$ )

 .First compute the straight-line depreciation.
 Then figure out the total percentage of the asset that is depreciated the
first year and double it.
 Straight line depreciation applied $180 the first year or 20%.
 Under this method, double that figure the first year: 40% or $360.
 That figure should be applied annually until the remaining value makes
that impossible.

 Year 1: 5 ÷ 15 = 40% ($360) (straight line = 20%) so double it.

Year 2: 4 ÷ 15 = 40% ($360) (straight line = 20%) so double it.
Year 3: 3 ÷ 15 = 20% ($180) (straight line = 20%) can not double it. Not enough.
Year 4: 2 ÷ 15 = 0% ($0)
Year 5: 1 ÷ 15 = 0% ($0)
24
Develop Project Charter: T & T

1. Expert Judgment, knowledgeable and experiences persons

 Other units within the organization
 Consultants
 Different Stakeholders (including the customer)
 Professional and technical associations
 Industry groups
 Subject Matter Experts
 Project Management Office

2. Facilitation Techniques
Brainstorming, conflict resolution, problem solving, and meeting

25
Develop Project Charter: Outputs

Project Charter, usually includes:

 Project Purpose/Justification
 Measurable Project Objectives
 High-level requirements
 Assumptions and Constraints
 High level project description
 High level Risks
 Summary budget & milestones
 Initial Stakeholder List
 Project Approval Requirements
 Assigned Project Manager
 Name and Authority of the sponsor
26
4.1- Develop Project Charter: OUTPUTS

 Project Purpose/Justification
 Measurable Project Objectives
 High-level requirements
 Assumptions and Constraints
 High level project description
Project  High level Risks
Charter  Summary budget & milestones
 Initial Stakeholder List
 Project Approval Requirements
 Assigned Project Manager
 Name and Authority of the sponsor

27
 CONTRACT
EEF (IF ANY)
BUSINESS
CASE

OPA
(SOW)

TOOLS &
TECHNIQUES

FACILITATION TECHNIQUES
OUTPUT EXTERNAL SMEs
EXPERTS JUDGMENTS

THE PROJECT CHARTER

28
4.2- Develop Project
Management Plan

24
4.2- Develop Project Management Plan

 The process of documenting the actions necessary to define,

prepare, integrate and coordinate all subsidiary plans.

30
31
 PROJECT MANAGEMENT INF. SYSTEM ( EEF Page 84 )

 The project management information system, which is part

of the environmental factors,

 Provides access to: tools, such as a scheduling tool, a

work authorization system, a configuration
management system, an information.

 Collection and distribution system, or interfaces to other

online automated systems. Automated gathering.

32
 CHANGE CONTROL SYSTEM ( PMIS / EEF )

 Baselines of the SCOPE,SCHEDULE AND BUDJET that CAN BE

CHANGED. WHEN CHANGE IS ENCOUNTERED, THE PROJECT
MANAGEMENT PLAN MUST BE CONSULTED FIRST TO DECIDE HOW
TO PROCEED.

Change Management Plan

 Describes how changes will be managed and controlled.

 Covers for the project as whole
 May includes:

 Change control procedures (how and who)

 The approval levels for authorizing changes
 The creation of a change control board to approve changes
 A plan outlining how changes will be managed and controlled
 Who should attend meetings regarding changes
 Tools to use to track and control changes
33
 Configuration Management System ( PMIS / EEF )

 It defines how you will manage changes to the deliverables and

processes and the resulting documentation, including which
organizational tools you will use in this effort.

 Configuration Management Plan is a plan for making sure everyone

knows what version of the scope, schedule, and other components of the
project management plan is the latest version.

 Recording any changes to the documents and its implementation status.

 Includes documentation, tracking system & defined approval levels

necessary for authorizing & controlling changes

 Change Control Board (CCB) is responsible for approving or rejecting

change requests.

 Roles and responsibilities of CCB are defined within configuration control

and change control procedure

34
Develop project management plan: T & T

1. Expert Judgment, knowledgeable and experiences persons

 Other units within the organization
 Consultants
 Different Stakeholders (including the customer)
 Professional and technical associations
 Industry groups
 Subject Matter Experts
 Project Management Office

2. Facilitation Techniques
Brainstorming, conflict resolution, problem solving, and meeting

35
4.2-Develop Project Management Plan OUTPUTS

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
1- Project baselines from the planning processes.
Management
Project baselines include, but are not limited to:
Plan
• Scope baseline
• Schedule baseline
• Cost baseline

36
4.2-Develop Project Management Plan OUTPUTS

Subsidiary plans include, but are not limited to:

• Scope management plan

• Requirements management plan ( part of scope
management plan )
• Schedule management plan
1- Project • Cost management plan
Management • Quality management plan
• Process improvement plan ( part of quality
Plan management plan )
• Human resource management plan
• Communications management plan
• Risk management plan
• Procurement management plan
• Stakeholder management plan

37
 QUALIT
STKHOLD
R
Y
REQUIR MGMT COST MGMT
PROJECT PROCESS
EMT PLAN PRFRMN PLAN
ENTERPRISE CHARTER IMPRVMN
MGMT CE T
ENVIRONMENT SCHEDU
SCOPE PLAN LE BASELIN COMM PLAN
AL MGMT E
FACTOR (EEF) PLAN SCHEDUL BASELIN MGMT
ORGANIZATIONAL E E PLAN
HUMAN PRCRMNT
PROCESS MGMT RESOURCE MGMT
PROJEC
ASSETS PLAN COST PLAN PLAN
T
(OPA) SCOPE
MGMT RISK
MGMT
SCOPE PLAN
STMNT PLAN
BASELIN
E

TOOLS & THESE ARE ALL THE OUTPUTS

FROM VARIOUS PLANNING
TECHNIQUES PROCESSES – THEY ARE NOW
INPUTS TO THE DEVELOPMENT
OF
EXPERT JUDGEMENTS & THE PROJECT MANAGEMENT
OUTPUT PLAN
FACILITATION TECHNIQUES

THE PROJECT MANAGEMENT PLAN

38
4.3- Direct & Manage
Project Work

35
4.3- Direct & Manage Project Work

 Process of performing the work defined in the project management

plan & implementing approved changes to achieve project’s
objectives.

40
41
4.3- Direct & Manage Project Work

 Direct & manage project work activities includes:

 Perform activities to accomplish project objectives

 Create project deliverables to meet the planned project work
 Provide, train & manage team members assigned to the project
 Obtain, manage & use resources
 Implement planned methods & standards
 Establish communication channels
 Generate work performance data such as cost, schedule, technical
& quality progress
 Issue change request & implement the approved changes
 Manage risk & implement risk response activities
 Manage stakeholders’ engagement
 Collect & documents lessons learned

42
1. the performance data collected from various controlling
processes.

2. work performance data has been transformed into

work performance information.

3. work performance information has been transformed

into work performance report.

4. Work performance reports are the physical or electronic

representation of work performance information

5. Examples of work performance reports

status reports, memos, justifications, information notes, recommendations,
and updates.
43
Direct & Manage Project Work Inputs

• Change Requests

A change request is a formal proposal to modify any document,

deliverable, or baseline.

• 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.

44
Approved change requests

• are an output of the Perform Integrated Change Control process.

• Requests reviewed and approved for implementation by the change

control board (CCB).

• The approved change request may be a corrective action, a

preventative action, or a defect repair.

• Approved change requests are scheduled and implemented by the

project team, and can impact any area of the project or project
management plan.

• The approved change requests can also modify the policies, project
management plan, procedures, costs, or budgets or revise the
schedules.

• Approved change requests may require implementation of preventive

or corrective actions. 45
4.3- Direct & Manage Project Work Outputs

• any unique and verifiable product, result or capability to

DELIVERABLES perform a service that is required to be produced to complete a
process, phase, or project.
• Deliverables are tangible components .
WORK • the raw observations and measurements identified during
PERFORMANCE
DATA
activities being performed to carry out the project work.
• Data are often viewed as the lowest level of detail.
CHANGE
• a formal proposal to modify any document, deliverable, or
REQUESTS
baseline
PROJECT
MNAGEMENT PLAN
UPDATES
Elements of the project management plan that may be updated.

Project documents that may be updated include, but are not

PROJECT
limited to:
DOCUMENTS
• Requirements documentation………Project logs (issues, assumptions,
UPDATES
etc.),……… Risk register, and ………….Stakeholder register.

46
 PROJECT
MGMT
PLAN APPROVED
EEF
CHANGE
REQUESTS

OPA

TOOLS &
TECHNIQUE
S

EXPERT JUDGEMENTS PROJECT MANAGEMENT

MEETINGS OUTPUTS INFORMATION SYSTEM

WORK PROJECT
CHANGE PROJECT
MNAGEMENT
DELIVERABLES PERFORMANCE DOCUMENTS
REQUESTS PLAN
DATA UPDATES
UPDATES

DIRECT & MANAGE PROJECT WORK

47
4.4- Monitor & Control
Project Work

43
4.4- Monitor & Control Project Work

 The process of tracking, reviewing, and regulating the progress to meet the
performance objectives defined in the project management plan.

49
50
51
4.4- Monitor & Control Project Work

 Compares actual project performance against the project

management plan.
 Assesses performance to decide whether any
corrective or preventive actions are needed
 Analyzes, tracks, and monitors project risk.
 Maintains an accurate and timely information on the
project’s deliverables(s).
 Provides cost and schedule forecasts.
 Monitors the implementation of approved changes
when and as they occur.

52
4.4- Monitor & Control Project Work Inputs

1. Project Management Plan

2. Schedule Forecasts (ETC)
3. Cost Forecasts (ETC, BA)
4. Validated Change Requests (including corrective
and/or preventive actions and defect repair)
5. Work Performance Information (SPI, CPI, CV, SV,
etc.)
6. EEF
7. OPA
53
Work Authorization System ( EEF )

• This is the project manager's system for authorizing the

start of work packages or activities.

• It is part of the PMIS, which is part of the EEF that are an

input to this process.

• It manages when and in what sequence work will be

done.

54
Fault tree analysis (is not required for exam )

• (FTA) is a top down, deductive failure analysis in which

an undesired state of a system is analyzed using logic
relationships to combine a series of lower-level events.

55
Regression Analysis ( will be explained later )

• The focus is on the relationship between a dependent variable and

one or more independent variables.

• Determines the relationship of independent variables such as paint

quantity, dryer fan speed, and door weight to the dependent
variable of drying time.

56
Monitor & Control Project Work T & T
1. Analytical Techniques
 Regression
 Causal Analysis
 Root Cause Analysis
 Forecasting methods (time series, scenario building, etc.)
 Fault tree analysis (FTA)
 Reserve Analysis
 Trend Analysis
 Earned Value Management
 Variance Analysis
 Forecasting methods

2. Expert Judgment

3. Project Management Information Systems

4. Meetings
57
4.4- Monitor & Control Project Work OUTPUTS

1 Change requests
2 Work Performance Reports

• Scope management plan (Section 5.1.3.1),

• Requirements management plan (Section 5.1.3.2),
3 Project • Schedule management plan (Section 6.1.3.1),
management • Cost management plan (Section 7.1.3.1),
plan updates • Quality management plan (Section 8.1.3.1),
• Scope baseline (Section 5.4.3.1),
• Schedule baseline (Section 6.6.3.1), and
• Cost baseline (Section 7.3.3.1).

4 Project • Schedule and cost forecasts,

documents • Work performance reports, and
updates • Issue log.

58
 PROJECT VALIDATED
MGMT CHANGES
PLAN
EEF SCHEDULE
FORECASTS

WORK
OPA PERFORMA
COST NCE INFO
FORECAST

T&T

1. EXPERT JUDGEMENTS 3. PROJECT MANAGEMENT INFORMATION SYSTEM

2. ANALYTICAL TECHNIQUES 4. MEETINGS
OUTPUTS

WORK PROJECT PROJECT

CHANGE
PERFORMANCE MNAGEMENT DOCUMENTS
REQUESTS PLAN UPDATES UPDATES
REPORTS

MONITOR & CONTROL PROJECT WORK

59
4.5- Perform Integrated
Change Control

53
4.5- Perform Integrated Change Control

 The process of reviewing all change requests, approving changes &

managing changes to: the deliverables, organizational process assets, project
documents & the project management plan.

61
Configuration management
 Configuration Control is focused on the specification of both of the
deliverables & the processes.

 Change Control is focused on identifying, documenting, approving or

rejecting changes to the project’s deliverables.

 Some of the configuration management activities included in the

perform integrated change control process are:

 Configuration identification – provide basis definition & verification. Products

& documents are labelled, changes managed & accountability maintained.

 Configuration status accounting – info like listing of approved configuration

identification, status & implementation of proposed changes are recorded &
reported.

 Configuration verification & audit – ensures that the composition &

configuration items are tracked, correctly implemented to meet the defined
configuration document. 62
Detailed Process for Making Changes

1- Prevent the root cause of changes.

2- Identify change.
3- Look at the impact of the change within the BASELINE.
4- Create a change request.

5- Perform integrated change control.

* Assess the change
* Look for options
* The change is approved or rejected
* Update the status of the change in the change log
* Update the project management plans and baseline

6- Get customer buy-in (if required)

63
Change Control Log Template

64
65
66
67
 PROJECT
MGMT
CHANGE
EEF PLAN
REQUESTS

OPA
WORK
PERFORMANCE MANUAL OR AUTOMATED MAY
REPORTS BE USED BASED ON NEEDS

USED TO MANAGE CHANGE

REQUEST & COMMUNICATIONS
TO THE CCB
T&T

1. EXPERT 3. CHANGE CONTROL TOOLS

JUDGEMENTS
2. MEETINGS OUTPUTS

APPROVED PROJECT PROJECT

CHANGE CHANGE MNAGEMENT DOCUMENTS
REQUESTS LOG PLAN UPDATES UPDATES

PERFORM INTEGRATED CHANGE

CONTROL 68
4.6- Close Project or
Phase

62
4.6- Close Project or Phase

1. The process of finalizing al activities across all of the project

management process groups to formally close the project or phase

2. Provide lessons learned, formal ending of project work and

release organization resources to pursue new endeavors.

70
71
Administrative Closure

• Actions and activities necessary to satisfy completion or exit criteria for

the phase or project.

• Actions and activities necessary to transfer the project’s products,

services, or results to the next phase

• Activities needed to collect project or phase records, audit project

success or failure, gather lessons learned and archive project
information for future use by the organization.

OPA UPDATES
Project files
Project or phase closure documents
Historical information
72
 PROJECT
MGMT
PLAN

(OPA)
ACCEPTED • REGRESSION ANALYSIS
DELIVERABLES • GROUPING METHODS
• CAUSAL ANALYSIS
• ROOT CAUSE ANALYSIS
• FORECASTING SCENARIOS
• FAILURE MODE & EFFECT
ANALYSIS
• TREND ANALYSIS
T&T • EARNED VALUE MANAGEMENT
(EVM)
• VARIANCE ANALYSIS

1. EXPERT JUDGEMENTS 3. ANALYTICAL TECHNIQUES

2. MEETINGS OUTPUTS

FINAL PRODUCT, ORGANIZATIONAL

SERVICE OR PROCESS
RESULT TRANSITION ASSETS UPDATES

CLOSE PROJECT OR PHASE

73
Question

1- The customer has accepted the completed project scope. However,

the lessons learned required by the project management office have
not been completed. What is the status of the project?

 A. The project is incomplete because it needs to be replanned.

 B. The project is incomplete until all project and product deliverables
are complete and accepted.
 C. The project is complete because the customer has accepted the
deliverables.
 D. The project is complete because it has reached its due date.

74
Question

1- The customer has accepted the completed project scope. However,

the lessons learned required by the project management office have
not been completed. What is the status of the project?

 A. The project is incomplete because it needs to be replanned.

 B. The project is incomplete until all project and product
deliverables are complete and accepted.
 C. The project is complete because the customer has accepted the
deliverables.
 D. The project is complete because it has reached its due date.

ANSWER : B
 The lessons learned are project management deliverables, and
therefore must be completed for the project to be complete. 75
Question

2 . When it comes to changes, the project manager's attention is BEST

focused on:

 A. Making changes.
 B. Tracking and recording changes.
 C. Informing the sponsor of changes.
 D. Preventing unnecessary changes.

76
Question

2 . When it comes to changes, the project manager's attention is BEST

focused on:

 A. Making changes.
 B. Tracking and recording changes.
 C. Informing the sponsor of changes.
 D. Preventing unnecessary changes.

ANSWER : D

77
Question

3. The customer on a project tells the project manager they have run out
of money to pay for the project. What should the project manager do
FIRST?

 A. Shift more of the work to later in the schedule to allow time for the
customer to get the funds.
 B. Close Project or Phase.
 C. Stop work.
 D. Release part of the project team.

78
Question

3. The customer on a project tells the project manager they have run out
of money to pay for the project. What should the project manager do
FIRST?

 A. Shift more of the work to later in the schedule to allow time for the
customer to get the funds.
 B. Close Project or Phase.
 C. Stop work.
 D. Release part of the project team.

ANSWER : B

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Question

4. All of the following are parts of an effective change management plan

EXCEPT:

 A. Procedures.
 B. Standards for reports.
 C. Meetings.
 D. Lessons learned.

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Question

4. All of the following are parts of an effective change management plan

EXCEPT:

 A. Procedures.
 B. Standards for reports.
 C. Meetings.
 D. Lessons learned.

ANSWER : D
 Lessons learned are reviews of the processes and procedures
after the fact, to improve them on future projects.
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Question

5- Integration is done by the:

 A. Project manager.
 B. Team.
 C. Sponsor.
 D. Stakeholders.

82
Question

5- Integration is done by the:

 A. Project manager.
 B. Team.
 C. Sponsor.
 D. Stakeholders.

ANSWER : A

83
Question

6 . Double declining balance is a form of:

 A. Decelerated depreciation.
 B. Straight line depreciation.
 C. Accelerated depreciation.
 D. Life cycle costing.

84
Question

6 . Double declining balance is a form of:

 A. Decelerated depreciation.
 B. Straight line depreciation.
 C. Accelerated depreciation.
 D. Life cycle costing.

ANSWER : C

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Question
7 . A project management plan should be realistic in order to be used to
manage the project. Which of the following is the BEST method to
achieve a realistic project management plan?
 A. The sponsor creates the project management plan based on input
from the project manager.
 B. The functional manager creates the project management plan
based on input from the project
 manager.
 C. The project manager creates the project management plan based
on input from senior
 management.
 D. The project manager creates the project management plan based
on input from the team.

86
Question
7 . A project management plan should be realistic in order to be used to
manage the project. Which of the following is the BEST method to
achieve a realistic project management plan?
 A. The sponsor creates the project management plan based on input
from the project manager.
 B. The functional manager creates the project management plan
based on input from the project
 manager.
 C. The project manager creates the project management plan based
on input from senior
 management.
 D. The project manager creates the project management plan based
on input from the team.

ANSWER : D
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Question
8 . You are in the middle of executing a major modification to an
existing product when you learn that the resources promised at the
beginning of the project are not available. The BEST thing to do is to:

 A. Show how the resources were originally promised to your project.

 B. Re-plan the project without the resources.
 C. Explain the impact if the promised resources are not made
available.
 D. Crash the project.

88
Question
8 . You are in the middle of executing a major modification to an
existing product when you learn that the resources promised at the
beginning of the project are not available. The BEST thing to do is to:

 A. Show how the resources were originally promised to your project.

 B. Re-plan the project without the resources.
 C. Explain the impact if the promised resources are not made
available.
 D. Crash the project.

ANSWER : C

89
Question
9 . During a project executing, the project manager determines that a
change is needed to material purchased for the project. The project
manager calls a meeting of the team to plan how to make the change.
This is an example of:

 A. Management by objectives.
 B. Lack of a change management plan.
 C. Good team relations.
 D. Lack of a clear work breakdown structure.

90
Question
9 . During a project executing, the project manager determines that a
change is needed to material purchased for the project. The project
manager calls a meeting of the team to plan how to make the change.
This is an example of:

 A. Management by objectives.
 B. Lack of a change management plan.
 C. Good team relations.
 D. Lack of a clear work breakdown structure.

ANSWER : B

91
Question
10 . Project A has an internal rate of return (IRR) of 21 percent.
Project B has an IRR of 7 percent. Project C has an IRR of 31
percent. Project D has an IRR of 19 percent. Which of these would
be the BEST project?

 A. Project A
 B. Project B
 C. Project C
 D. Project D

92
Question
10 . Project A has an internal rate of return (IRR) of 21 percent.
Project B has an IRR of 7 percent. Project C has an IRR of 31
percent. Project D has an IRR of 19 percent. Which of these would
be the BEST project?

 A. Project A
 B. Project B
 C. Project C
 D. Project D

ANSWER : C

93