Академический Документы
Профессиональный Документы
Культура Документы
ranking of the project and a list of prioritized identified risks which need additional
analysis and determined trends in risk analysis results. What should you do next?
Justification
Tasks like creating an overall risk ranking of the project, which includes a list of prioritized
risks, identifying which risks need additional analysis and determining trends in risk
analysis results are done as part of Perform Qualitative Risk Analysis (PMBOK Guide - Sixth
Edition, pages 419-421). So, the next step is to Perform Quantitative Risk Analysis (i.e.
numerically analyze the effect of identified risks on overall project objectives) -
PMBOKGuide - Sixth Edition, page 428. Please note that options 2 and 3 are refer to outputs
from Identify Risks process which has already been completed and option 4 is done as part
of Plan Risk Responses process - PMBOK Guide - Sixth Edition, pages 409 and 437.
1. Buy
Justification
If you buy, the cost is: $80,000 + $1,000 = $81,000. If you build, the cost is: $4,000 x 7 x 3 +
$2,000 = $86,000. So, it is preferable to buy.
1. Mutually binding
Justification
A contract is a mutually binding agreement that obligates the seller to provide the specified
product, or service or product and obligates the buyer to pay for it.
Justification
A low position in the organization could be the source of least conflict. Please note that
option 1 (Weak matrix structure with multiple managers to report to), option 3 (Roles that
are not well defined) and option 4 (Work pressure and high stress) increase conflict in an
organization.
Justification
Stakeholder analysis is a technique of systematically gathering and analyzing quantitative
and qualitative information to determine whose interests should be taken into account
throughout the project. It identifies the interests, expectations, and influence of the
stakeholders and relates them to the purpose of the project.
Justification
Plan Resource Management is the process of defining how to estimate, acquire, manage,
and use team and physical resources. Inputs to this process are Project schedule,
requirements documentation, enterprise environmental factors, and organizational
process assets etc. However, project organization charts are an output.
2. 99.7
Justification
A standard normal distribution, which shows standard deviation (or sigma) as distance of
the measurement from the mean (target) value:
Justification
The team is concerned with not having a project to work on due to their current project
terminating early. This is not a project-specific issue and should therefore not be handled
by the project manager. It is an organizational issue which is best handled by the Human
Resources department who may be able to better address each individual's situation and
reassign project team members to other projects.
Justification
Which of the following techniques is best suited to illustrate the causes of these problems?
4. Histogram
Justification
Histograms show a graphical representation of numerical data. Histograms can show the
number of defects per deliverable, a ranking of the cause of defects, the number of times
each process is noncompliant, or other representations of project or product defects.
PMstudy.com comments:
Option 3: Scatter Diagram shows shows the relationship between two variables.
Option 4: If all causes are equally important, then histogram should be used.
Question 11: The studio you are working for has assigned you as the project manager for a
movie project where the producer left midway due to health issues. As a project manager,
you are responsible for meeting the project schedule deadlines. If there is a delay in the
project schedule, you should:
2. Fast track or crash the project, and let the management know the impact of this
action.
Justification
Schedule compression shortens the project schedule without changing the project scope to
meet schedule constraints, imposed dates, or other schedule objectives. Schedule
compression techniques include Crashing and Fast tracking.
Justification
A portfolio is a collection of projects, programs, subsidiary portfolios, and operations
managed as a group to achieve strategic objectives.
Reference: PMBOK Guide - Sixth Edition, table 1-2: Comparative Overview of Portfolios,
Programs, and Projects, page 13
Question 13: As a project manager, you realize the importance of team development for
resource management. Which of the following is NOT a tool for the Develop Team process?
2. Pre-assignment
Justification
Pre-assignment refers to the project team members selected in advance and is one of the
tools and techniques used for the Acquire Team process.
Justification
3. Mind-mapping
Justification
4. Reserve analysis
Justification
Make-or-buy analysis may use payback period, return on investment (ROI), internal rate of
return (IRR), discounted cash flow, net present value (NPV), benefit/cost analysis (BCA), or
other techniques in order to decide whether to include something as part of the project or
purchase it externally.
B. Delivery dates
Justification
2. WBS dictionary
Justification
Information in the WBS dictionary may include, but is not limited to, code of account
identifier, description of work, assumptions and constraints, responsible organization,
schedule milestones, associated schedule activities, resources required, cost estimates,
quality requirements, acceptance criteria, technical references, and agreement information.
2. Project manager
Justification
The project manager is responsible for engaging and managing the various stakeholders in
a project.
Justification
It is critical for project success to identify the stakeholders early in the project, and to
analyze their levels of interest, expectations, importance and influence. A management
strategy can then be developed for engaging stakeholders and determining appropriate
levels and timing of involvement to maximize positive influences and mitigate potential
negative impacts. Stakeholders should therefore be engaged at the appropriate time, not
necessarily at the same time.
Justification
Uncontrolled expansion to product or project scope without adjustments to time, cost, and
resources is referred to as scope creep.
Justification
The Perform Integrated Change Control process includes influencing the factors that
circumvent integrated change control so that only approved changes are implemented.
Option 2 (Risk Management) and option 3(Cost Management Plan) are not processes.
Option 4 (Develop Project Management Plan) is not valid because here we do not deal with
factors that can cause changes.
Question 23: In your project, you recently observed conflict among team members. You
would like to see that all team members work towards one goal (i.e., successful completion
of the project). A conflict handling method that emphasizes similarities rather than
differences as means to solve a problem can also be referred to as:
1. Smoothing
Justification
There are five general techniques for resolving conflict. As each one has its place and use,
these are not given in any particular order:
• Withdraw/Avoid: Retreating from an actual or potential conflict situation; postponing the
issue to be better prepared or to be resolved by others.
• Smooth/Accommodate: Emphasizing areas of agreement rather than areas of difference;
conceding one's position to the needs of others to maintain harmony and relationships.
• Force/Direct: Pushing one's viewpoint at the expense of others; offering only win-lose
solutions, usually enforced through a power position to resolve an emergency.
Justification
The key benefit of the Plan Procurement Management process is that it determines
whether to acquire outside support, and if so, what to acquire, how to acquire it, how much
is needed, and when to acquire it.
Justification
Plan Resource Management is the process of defining how to estimate, acquire, manage,
and use team and physical resources.
4. Lag
Justification
A lag is the amount of time a successor activity will be delayed with respect to a
predecessor activity.
Justification
Justification
Benchmarking involves comparing actual or planned project practices or the project’s
quality standards to those of comparable projects to identify best practices, generate ideas
for improvement, and provide a basis for measuring performance. Benchmarked projects
may exist within the performing organization or outside of it, or can be within the same
application area or other application area.
2. Laissez faire
Justification
The project manager usually follows different leadership styles as listed below:
• Laissez Faire: Does not interfere; team is left unsupervised which may lead to anarchy.
• Democratic: Allows team to discuss issues and reach decisions, although still guides and
advises.
• Assertive: Confronts issues and displays confidence; establishes authority with respect.
2. Earned Value
Justification
Also, please refer to PMBOK Guide - Sixth Edition, page 267 (figure 7-1).
Question 31: In your company, payback period is primarily used as the decision criterion
for project selection. Payback period is the:
• Discount rate is not taken into account in calculations for payback period.
Example: There are two projects. Project A has an investment of $500,000 and a payback
period of 3 years. Project B has an investment of $300,000 and a payback period of 5 years.
Using the payback period criterion, which project will you select?
Answer: Project A will be selected. The fact that project B has a smaller investment than
project A will not impact the selection.
Justification
A project manager is in charge of all aspects of the project including, but not limited to
developing the project management plan and all related component plans, keeping the
project on track in terms of schedule and budget, identifying, monitoring, and responding
to risk, and providing accurate and timely reporting of project metrics.
Although the project manager is responsible for the integrity of the overall project, she is
not responsible for the integrity of individual team members.
Justification
Project closure documents would be completed next, before the project team is released,
and before other Organizational Process Assets are updated.
Option 2: Releasing project team members should be one of the last activities in the Close
Project or Phase process. You may need them to help with the closure activities.
Option 3: Project closure documents are part of Organizational Process Assets updates.
However, in the given scenario, the most appropriate answer is to create the closure
documents first and then update Organizational Process Assets.
2. Calculate early and late start and finish dates for the unfinished project activities.
Justification
If you are working on a project, which has very limited information, then when estimating
the durations you should use the actual duration of previous, similar projects as the basis
for estimating the duration of the current project. This is done as part of Estimate Activity
Durations. Once we estimate the duration of the project, we should calculate the early and
late start and finish dates.
Estimate Activity Durations process will be followed by Develop Schedule process, wherein
one of the tools and techniques used is schedule network analysis (which employs various
analytical techniques to calculate early and late start and finish dates for the uncompleted
portion of project activities). The correct answer is option 2.
Please note option 1 refers to Define Activities process which has been performed earlier.
Option 3 refers to Control Schedule process which is done during Monitoring and
Controlling process. Option 4 refers to Create WBS process which has been done earlier.
Justification
Cancellation of the contract has to be done by both the seller and the buyer (i.e., the buyer
cannot unilaterally cancel the contract).
1. Customer satisfaction
Justification
Project: Success is measured by product and project quality, timeliness, budget compliance,
and degree of customer satisfaction.
Justification
Please refer to the table given below showing additional expenses that will be incurred
when each task is crashed:
Original Duration Crash Savings Additional
Task Original Cost Crash Cost
(months) (months) Expenses
M 5 1 $1,600 $1,700 $100
N 6 2 $1,800 $1,900 $100
O 7 1 $2,000 $2,050 $50
P 8 1 $3,000 $3,200 $200
Q 13 3 $2,500 $2,650 $150
Justification
Verified deliverables are project deliverables that are completed and checked for
correctness through the Control Quality process.
3. 25%
Justification
The probability of the event happening every year is 25%. So, the probability of the event
happening in the third year is also 25%.
Justification
Bottom-up estimating is a method of estimating a component of work. The cost of
individual work packages or activities is estimated to the greatest level of specified detail.
The detailed cost is then summarized or "rolled up" to higher levels for subsequent
reporting and tracking purposes.
PMstudy.com comments: Scope requirements are not used for bottom-up estimating
Question 41: Almost all projects are planned and implemented in a social, economic, or
environmental context, and have intended and unintended positive or negative impacts. In
this context, which of the following statements about Enterprise Environmental Factors is
NOT true?
Justification
The risk management plan may include some or all of the following: risk strategy,
methodology, roles and responsibilities, funding, timing, risk categories, stakeholder risk
appetite, definitions of risk probabiliyt and impacts, probability and impact matrix,
reporting formats, and tracking.
PMstudy.com comments:
3. Constraint
Justification
Constraints: A limiting factor that affects the execution of a project or process. Constraints
identified with the project scope statement list and describe the specific internal or
external restrictions or limitations associated with the project scope that affects the
execution of the project, for example, a predefined budget or any imposed dates or
schedule milestones that are issued by the customer or performing organization.
Justification
Ishikawa or fishbone diagrams (also called cause and effect diagrams) illustrate how
various factors might be linked to potential problems or effects (please refer to figure 8-9
on PMBOK Guide - Sixth Edition, page 294).
1. Resource smoothing
Justification
Resource smoothing is a resource optimization technique in which free and total float are
used without affecting the critical path.
Justification
Cause-and-effect diagrams are also known as fishbone diagrams, why-why diagrams, or
Ishikawa diagrams. This type of diagram breaks down the causes of the problem statement
identified into discrete branches, helping to identify the main or root cause of the problem.
Figure 8-9 is an example of a cause-and-effect diagram.
PMstudy.com comments:
Option 1: This refers to scatter diagrams, which shows the relationship between two
variables
Option 2: This refers to Design of Experiment (DOE), which identifies which factors may
influence specific variables of a product or process under development or in production.
Option 3: This refers to Control Charts, which are used to determine whether or not a
process is stable or has predictable performance.
Question 47: Which of the following data analysis techniques can be used in the Plan
Quality Management process?
1. Cost of quality
1. Audits
Justification
An audit is a structured review of the procurement process originating from the Plan
Procurement Management process through Control Procurements. The objective of a
procurement audit is to identify successes and failures that warrant recognition in the
preparation or administration of other procurement contracts on the project, or on other
projects within the performing organization.
3. Program Manager
Justification
A program is a group of related projects, subsidiary programs, and program activities that
are managed in a coordinated manner to obtain benefits not available from managing them
individually.
Reference: PMBOK Guide - Sixth Edition, Table 1-2, Comparative Overview of Portfolios,
Programs, and Projects, page 13
PMstudy.com comments: Developing and launching a NASA satellite will generally involve
multiple projects and hence, it is a program.
Question 50: You would like to obtain information, quotations, bids, offers, or proposals
from sellers as part of the Conduct Procurements process. In this process, which of the
following is the most critical?
2. Ensure that prospective sellers clearly understand the technical and contract
requirements.
Justification
PMstudy.com comments:
Option 1: This refers to a make-or-buy analysis, which is performed during the Plan
Procurement management process
2. Forcing
Justification
There are five general techniques for resolving conflict. As each one has its place and use,
these are not given in any particular order:
• Force/Direct: Pushing one's viewpoint at the expense of others; offering only win-lose
solutions, usually enforced through a power position to resolve an emergency.
Monitor Communications is the process of ensuring the information needs of the project
and its stakeholders are met. Monitor Communications determines if the planned
communications artifacts and activities have had the desired effect of increasing or
maintaining stakeholders´ support for the project´s deliverables and expected outcomes.
The impact and consequences of project communications should be carefully evaluated and
monitored to ensure that the right message with the right content (the same meaning for
sender and receiver) is delivered to the right audience, through the right channel, and at
the right time.
3. Equipment
Justification
Justification
Stakeholders` ability to influence the final characteristics of the project`s product, without
significantly impacting cost, is highest at the start of the project and decreases as the
project progresses towards completion.
Justification
Configuration management activities are identified configuration item, record and report
configuration item status, and perform configuration item verification and audit.
Justification
Project statement of work, business case, agreements, enterprise environmental factors,
and organizational process assets are inputs for the Develop Project Charter process.
Justification
This is an operation and not a project (projects are temporary and unique, but call center
activities are ongoing and repetitive).
In this context, the CEO should not try to handle this issue as a project and do none of the
activities mentioned in option 1, option 2, or option 3.
Since this is an operation, option 4 provides the best course of action for the CEO to address
this situation, i.e., continue with a functional organizational structure (which is
recommended for managing operations) and try to streamline activities.
3. Influence diagrams
Justification
Influence diagrams are graphical representations of situations showing causal influences,
time ordering of events, and other relationships among variables and outcomes.
Justification
1. Supportive
There are several types of PMOs in organizations. Each type varies in the degree of control
and influence it has on projects within the organization, such as supportive, directive and
controlling.
1. Activity-on-node diagrams
Justification
The resource management plan is the component of the project management plan that
provides guidance on how project resources should be categorized, allocated, managed,
and released. It may be divided between the team management plan and physical resource
management plan according to the specifics of the project.
3. The project management team is not directly involved in managing the project.
Justification
PMstudy Notes: Project Management Team - The members of the project team who are
directly involved in project management activities.
Question 64: You are the project manager of a project which involves off-shore oil
exploration. Since you cannot plan for all eventualities, you establish a contingency reserve,
including amounts of time, money, or resources to handle the risks. This is an example of:
Justification
The most common active acceptance strategy is to establish a contingency reserve,
including amounts of time, money, or resources to handle the risks.
2. Planned work contained in the lowest level WBS components are called WBS
dictionaries.
Justification
The planned work is contained within the lowest level of WBS components, which are
called work packages. A work package can be used to group the activities where work is
scheduled and estimated, monitored, and controlled.
4. Collecting information about the completion status of the deliverables and other
relevant details about project performance.
Justification
Option 4: Examples of work performance data include work completed, key performance
indicators (KPIs), technical performance measures, actual start and finish dates of schedule
activities, story points completed, deliverables status, schedule progress, number of change
requests, number of defects, actual costs incurred, actual durations, etc.
PMstudy.com comments:
Option 1: This is done as part of the Monitor and Control Project Work process, and not
during the project execution phase.
Option 2: This is done as part of Close Procurements process, which is part of the project
closure activities.
Option 3: The project charter formally authorizes the project. This document is created in
the initiating stage before project execution
Question 67: In which document will you find the code of account identifier, description of
work, responsible organization, and schedule milestones?
2. WBS Dictionary
Justification
Information in the WBS dictionary may include, but is not limited to: code of account
identifier, description of work, assumptions and constraints, responsible organization,
schedule milestones, associated schedule activities, resources required, cost estimates,
quality requirements, acceptance criteria, technical references, and agreement information.
What is the project float if management wants to complete this project within 13 days?
2. - 3 days
Justification
If the project has to be completed within 13 days, the project float is - 3 days (i.e., 13 - 16)
A project may have a negative project float. To deal with such conditions, and if the project
has to be completed on time, the project manager will have to either fast-track or crash the
project schedule.
Justification
Parametric estimating uses a statistical relationship between historical data and other
variables. Parametric estimating uses unit cost rates in calculations, but doesn´t determine
those rates.
PMstudy.com comments: All the other options are valid ways to determine unit cost rates.
Question 70: In your project, while decomposing the project work into more manageable
components, you are aware of the problem of excessive decomposition. Which of the
following is NOT the consequence of excessive decomposition?
Justification
Excessive decomposition can lead to non-productive management effort, inefficient use of
resources, decreased efficiency in performing the work, and difficulty aggregating data
over different levels of the WBS.
PMstudy.com comments: WBS decomposition does not provide any knowledge of activity
sequencing.
Question 71: The project manager has created the project schedule. In this context, which
of the following activities would the project manager NOT use schedule control for?
Justification
Option 3 is an activity performed as part of the Develop Schedule process. The remaining
options are activities that are performed as part of the Control Schedule process.
1. Constraint
Justification
Constraint is a limiting factor that affects the execution of a project or process. Constraints
identified with the project scope statement list and describe the specific internal or
external restrictions or limitations associated with the project scope that affect the
execution of the project, for example, a predefined budget or any imposed dates or
schedule milestones that are issued by the customer or performing organization.
1. 12
Justification
Since the longest path is Start→ 4→ 5→ End; this is the critical path. Length of the critical
path is 12 months.
3. People
Justification
2. Identify Risks
Justification
Identify Risks is the process of determining which risks may affect the project and
documenting their characteristics.
Justification
The objectives of Project Risk Management are to increase the likelihood and impact of
positive events, and decrease the likelihood and impact of negative events in the project.
3. Analogous estimating
Justification
Analogous cost estimating is generally less costly and time consuming than other
techniques, but it is also generally less accurate.
Justification
Plan Resource Management is the process of defining how to estimate, acquire, manage,
and use team and physical resources. The key benefit of this process is that it establishes
the approach and level of management effort needed for managing project resources based
on the type and complexity of the project. This process is performed once or at predefined
points in the project.
3. Identify the scheduled start or completion of major deliverables only and not all
the tasks
Justification
Milestone charts are similar to bar charts, but they only identify the scheduled start or
completion of major deliverables and key external interfaces.
PMstudy.com comments: Usually, milestone charts are used for presentations to senior
management but bar charts are used for presentations to middle and junior management.
Question 80: You are developing Project Management Plan for your project, which of the
following should you NOT include as a component of the Project Management Plan?
4. Quality register
Justification
Project management plan elements that may be updated include, but are not limited to:
scope management plan, requirements management plan, schedule management plan, cost
management plan, quality management plan, scope baseline, schedule baseline, cost
baseline, etc. Additional components: Configuration management plan, development
approach, etc.
2. Project Manager, because you are creating a unique product within specific time
schedules
The role of a project manager is distinct from that of a functional manager or operations
manager. Typically, the functional manager focuses on providing management oversight
for a functional or business unit. Operations managers are responsible for ensuring that
business operations are efficient. The project manager is the person assigned by the
performing organization to lead the team that is responsible for achieving the project
objectives.
Justification
The Scope Management Plan describes how the scope will be defined, developed,
monitored, controlled, and verified.
Justification
2. Power/Influence grid
Justification
There are multiple classification models used for stakeholders’ analysis, such as:
• Power/interest grid, grouping the stakeholders based on their level of authority (power)
and their level of concern (interest) regarding the project outcomes;
• Power/influence grid, grouping the stakeholders based on their level of authority
(power) and their active involvement (influence) in the project;
1. Risk mitigation
Justification
Mitigation may require prototype development to reduce the risk of scaling up from a
bench-scale model of a process or product.
2. 0.75, 1.4
Justification
Given:
BAC = $4,000
AC = $2,000
TCPI = (BAC - EV) / (BAC - AC) = ($4,000-$1,200) / ($4,000-2,000) = $2,800 / $2,000 = 1.4
3. Recognition for team members who work extra hours on the weekends.
Justification
Part of the team development process involves recognizing and rewarding desirable
behavior. A good strategy for project managers is to give the team recognition throughout
the life cycle of the project rather than waiting until the project is completed.
Justification
If there is a major change to the project, the project manager should try to influence the
change to minimize the impact on the project. Usually the project manager is advised to do
the following:
2. Help the customer (or person requesting the change) understand the impact of the
change.
3. If changes are in fact required, then open a change control and get the request approved.
Obviously, you will have to inform the management and the change control board about the
impact of the changes.
4. If the change control board approves changes, then make appropriate changes in the
project plan.
4. Review the requirement and talk with the team member who implemented the
requirement
Justification
The best option is to first review the requirement, contained in the project WBS, with the
particular team member who has implemented the requirement. Either the team member
has not done the work properly or there might have been lack of clarity in defining the
requirement in the WBS.
Option 1: This should be done only after the requirement has been evaluated with the team
member.
Option 2: There is no need to call a meeting of all team members. Discuss the matter with
the team member who has actually implemented the requirement.
Option 3: It is premature to escalate the issue to the project sponsor. First, you should
evaluate why it went wrong.
What is the expected value for the project considering profit and loss possibilities?
3. $7,500
Justification
= $20,000 - $12,500
= $7,500
Justification
A phase gate, is held at the end of a phase. The project's performance and progress are
compared to project and business documents including but not limited to: Project business
case, Project charter, Project management plan, and Benefits management plan
Justification
The most commonly used contract type is the Firm Fixed Price Contract (FFP).
2. Noise
Justification
Justification
Justification
The primary function of a PMO is to support project managers in a variety of ways, which
may include, but are not limited to: managing shared resources across all projects
administered by the PMO and coordinating communication across projects.
Portfolio Management refers to the centralized management of one or more portfolios to
achieve strategic objectives.
Justification
Manage Stakeholder Engagement involves communicating and working with project
stakeholders to meet their needs and expectations. Actively managing the expectations and
engagement of stakeholders should increase the likelihood of project acceptance and
support, and should also minimize stakeholder resistance. This process also involves
negotiating and influencing stakeholders in favor of achieving the project goals. Addressing
concerns that have not yet become issues and anticipating future problems is useful for
managing project risks. Doing all this however, does not ensure that stakeholders are fully
aware when they should be, and in fact, it is not always desirable for stakeholders to be
aware of ALL project details.
Option 3 (i.e., Ensure stakeholders` awareness of all project details) is not recommended.
The project manager should try to manage information, so that only appropriate and
relevant information reaches the appropriate stakeholders.
Justification
Option 1: This is the correct answer. Project stakeholders are persons or organizations
such as customers, sponsors, the performing organization, and the public who are actively
involved in the project, or impacted by it.
Option 2: Manage Stakeholder Engagement is the process to communicate and work with
stakeholders to meet their needs and address issues as they occur.
Option 3: Collect Requirements is the process where project requirements are gathered
and documented.
Option 4: Plan Communications Management is the process which is used to determine the
project stakeholder information needs and to define a communication approach.
2. -25% to +75%
Justification
A project in the initiation phase may have a rough order of magnitude (ROM) estimate in
the range of -25% to +75%
Justification
Selection criteria are developed and used to rate or score seller proposals, and can be
objective or subjective.
Justification
Quality and grade are not the same concepts. Quality as a delivered performance or result
is the degree to which a set of inherent characteristics fulfill requirements (ISO 9000 [18].).
Grade as a design intent is a category assigned to deliverables having the same functional
use but different technical characteristics. The project manager and the project
management team are responsible for managing the trade-offs associated with delivering
the required levels of both quality and grade. While a quality level that fails to meet quality-
requirements is always a problem, a low-grade product may not be a problem.
Justification
Plan Risk Responses is the process of developing options and actions to enhance
opportunities and to reduce threats to project objectives.
The other options take place prior to the Plan Risk Responses process:
Justification
The Stakeholder Management Plan is created as part of the Plan Stakeholder Management
process. The other options are all outputs of the Manage Stakeholder Engagement process,
which is the process being described.
Justification
Project team assignments are an output from the "Acquire Team" process and not the Plan
Resource Management process.
Reference: PMBOK Guide - Sixth Edition, pages 257 (figure 9-1), 308 and 312
Question 104: You are given the following four projects. Which project will you select?
Justification
If Project B and project C are selected the company would suffer losses. Project A is not
selected, because opportunity cost is not a project selection criterion. Project D is the only
suitable option, because this project has a positive NPV and hence could be selected.
Net Present Value (NPV) = (Present value of all cash inflows) - (Present value of all cash
outflows)
Project Selection Criterion: Select the project with the maximum Net Present Value. The
time value of money is already taken into account while calculating NPV.
Example: There are two projects. Project A has NPV of $1,000 and will be completed in 5
years. Project B has NPV of $800 and will be completed in 1 year. Which project will you
select?
Answer: Project A will be selected. The fact that project B has a smaller duration than
project A does not matter because time is already taken into account in NPV calculations.
Present Value (PV) is the Future Value (FV) of a payment discounted at a discount rate (r)
for the delay in payment.
C. Activity identifier and scope of work description for each schedule activity in sufficient
detail
1. B, C and D
Justification
The activity list is a comprehensive list that includes all schedule activities required on the
project. The activity list also includes the activity identifier and a scope of work description
for each activity in sufficient detail to ensure that project team members understand what
work is required to be completed.
PMstudy.com comments: Activity list will not include activities that are not to be
performed as part of the project.
Question 106: What contains a predetermined list of risk categories that might give rise to
individual project risks and that could also act as sources of overall project risk?
Justification
The risk Prompt List is a predetermined list of risk categories that might give rise to
individual project risks and that could also act as sources of overall project risk.
4. Project schedule
Justification
Project schedule is an input to the Plan Procurement Management process; all the other
options are inputs to Control Procurements process.
Reference: PMBOK Guide - Sixth Edition, pages 466 and 492 (figures 12-2 and 12-6,
respectively)
Question 108: The activity list should include descriptions of activities. This is required to:
Justification
The activity list includes the activity identifier and a scope of work description for each
schedule activity in sufficient detail to ensure that project team members understand what
work is required to be completed.
2. Audits
Justification
A audit is a structured, independent process to determine whether project activities
comply with organizational and project policies, processes, and procedures.
Justification
Option 1: This is the only option that provides the solution to the problem. Since some
requirements are left out, you ask your team to incorporate the requirements and figure
out the potential impact.
Option 2: This is a premature step; you should first do an analysis to figure out the impact
of the change before informing the project sponsor.
Option 3: This is not at all recommended, because it will result in a product, which does not
satisfy the requirements and hence will not be accepted by the customer.
Option 4: This is a premature step; you should first do an analysis to figure out the impact
of the change before informing senior management. Escalating an issue should be the last
option.
Which project should be selected if net present value (NPV) criterion is used for selection?
Justification
Both projects have the same NPV; therefore, either project may be selected, if NPV criterion
is used.
Net Present Value (NPV) = (Present value of all cash inflows) - (Present value of all cash
outflows)
Example: There are 2 projects. Project A has NPV of $1,000 and will be completed in 5
years. Project B has NPV of $800 and will be completed in 1 year. Which project will you
select?
Answer: Project A will be selected. The fact that project B has a smaller duration than
project A does not matter because time is already taken into account in NPV calculations.
Present Value (PV) is the Future Value (FV) of a payment discounted at a discount rate (r)
for the delay in payment.
Justification
The five Process Groups are Initiating, Planning, Executing, Monitoring and Controlling,
Closing.
3. Expert judgment
3. Acceptance criteria
The detailed project scope statement, either directly, or by reference to other documents,
includes the following: product scope description, acceptance criteria, deliverables, and
project exclusions.
2. Disallow the new requirement, because it changes the project scope, and the
customer did not explicitly state this requirement.
Justification
Project Scope Management includes the processes required to ensure that the project
includes all the work required, and only the work required, to complete the project
successfully. Managing the project scope is primarily concerned with defining and
controlling what is and is not included in the project.
3. Historical relationships
Justification
Estimate Costs is the process of developing an approximation of the cost of resources
needed to complete project activities. Analogous estimating, three-point estimating, cost of
quality is some of the tools used in this process.
2. Control Procurements
Justification
Early termination of a contract is a special case of procurement closure. Requirements for
formal procurement closure are usually defined in the terms and conditions of the contract
and are included in the procurement management plan. Procurement closure takes place in
the Control Procurements process.
1. Estimate Costs
Justification
Estimate Costs is the process of developing an approximation of the cost of resources
needed to complete project work. The key benefit of this process is that it determines the
monetary resources required for the project.
Justification
A project manager is identified and assigned as early in the project as is feasible. This
understanding will better allow for efficient resources allocation to project activities.
What is the impact on the project if task 1→ 2 takes 2 months more than what was earlier
planned?
Justification
Hence, the risk in the project increases, because delay in either of the critical paths will
cause a delay in the project.
2. Project documents
Justification
Option 2: Project documents - Project documents that may be updated as part of the phase
closure include but are not limited to assumption log, basis of estimates, change log, issue
log, lessons learned register, milestone list, project communications, quality control
measurements, quality reports, and requirements documentation.
Option 1: These are documents required for an organization to maintain, operate, and
support the product or service delivered by the project. These may be new documents or
updates to existing documents.
Option 4: Lessons learned and knowledge gained throughout the project are transferred to
the lessons learned repository for use by future projects.
Reference: A Guide to the Project Management Body of Knowledge PMBOK® Guide - Sixth
Edition, pages 124 and 127
Question 122: You are the project manager for XYZ company. The Quality Control team
recently identified a large number of defects in the project deliverables which the team had
to repair. You have been working for a few weeks with the Quality Assurance team to
adjust some quality procedures and address some training issues for your project which
the team believes is the reason for the defects. The project is now behind schedule due to
the problems encountered. The CPI is currently 1.12 and the SPI 0.82. While discussing the
quality issues in a status meeting, a key stakeholder comments that she is alarmed at the
potential cost impact of one particular risk and is wondering why it is of little concern to
the project team. You are confident that her concern for that particular cost risk is
unwarranted at the moment; in fact, you believe there is another risk that is of bigger
concern. The following table displays the current risks for your project. Considering that
schedule is a concern right now, which risk are you going to tell the stakeholder and other
meeting participants is the greatest and is therefore the biggest concern of the team right
now?
1. A
Justification
For each risk identified, multiply the probability by the cost and schedule impact. Once you
have each P & I score, you can prioritize the risks. Risk A currently is the biggest threat to
your schedule and overall objectives.
4. Mean
Justification
The accuracy of single-point cost estimates may be improved by considering estimation
uncertainty and risk and using three estimates to define an approximate range for an
activity’s cost: Most likely, Optimistic, and Pessimistic.
4. Justification
Results from earned value analysis may indicate potential deviation of the project at
completion from cost and schedule targets. When a project deviates significantly from the
baseline, updated risk identification and analysis should be performed.
Justification
Project team directory is a documented list of project team members, their project roles,
and communication information.
Justification
Tuckman described five stages of team development. Teams usually go through the stages
in order, but it is possible for teams to skip a stage or get stuck in, or revert to a previous
stage.
1. Forming: Team meets, learns their roles and responsibilities and agree on goals;
individuality is at its highest during this phase
2. Storming: Team starts working on the project; competition may result from different
individual ideas; "I am right" mentality
3. Norming: Team members adjust their behavior to work as a team; learn to trust each
other; "We can work together" mentality
4. Performing: Teams are able to function as an organized and interdependent unit as they
find ways to get the job done smoothly and effectively
5. Adjourning: Completing the task and moving on from the project as staff are released
during project or phase closure
Justification
Create WBS process follows the Define Scope process. In Create WBS, decomposition of the
total project work into work packages generally involves identifying and analyzing the
deliverables and related work.
Reference: PMBOK® Guide - Sixth Edition, pages 130 (figure 5-1) and 158.
Question 128: Which of the following tools and techniques would you NOT use in your
project during the Plan Risk Responses process?
4. Simulation
Justification
Simulation is not a tool or technique for the Plan Risk Responses process.
Justification
In a matrix organization, the project manager shares responsibility with the functional
managers for assigning priorities and for directing the work of persons assigned to the
project.
2. Compromising
Justification
There are five general techniques for resolving conflict. As each one has its place and use,
these are not given in any particular order:
• Withdraw/Avoid: Retreating from an actual or potential conflict situation; postponing the
issue to be better prepared or to be resolved by others.
• Smooth/Accommodate: Emphasizing areas of agreement rather than areas of difference;
conceding one's position to the needs of others to maintain harmony and relationships.
• Force/Direct: Pushing one's viewpoint at the expense of others; offering only win-lose
solutions, usually enforced through a power position to resolve an emergency.
Justification
The tools and techniques used in the Plan Schedule Management process are expert
judgment, data analysis techniques such as alternatives analysis, and meetings.
3. $ 51,250
Justification
Expected Profit = Sum of the products of Probability and Profit for all alternatives i.e. [Sum
of (Probability X Profit)] for all the three alternatives
= $ 51,250
4. Create WBS
Justification
Create WBS is the process of subdividing project deliverables and project work into
smaller, more manageable components.
2. Legal
Justification
When a project is performed under an agreement, contractual provisions will generally be
constraints.
4. Brainstorming
Brainstorming: A general data gathering and creativity technique that can be used to
identify risks, ideas, or solutions to issues by using a group of team members or subject
matter experts.
Justification
Project Stakeholder Management includes the following processes - Identify Stakeholders,
Plan Stakeholder Engagement, Manage Stakeholder Engagement, and Monitor Stakeholder
Engagement.
1. 0
Justification
The network diagram for the project tasks can be represented as shown below.
2. Project charter
Justification
The project charter provides the preapproved financial resources from which the detailed
project costs are developed. The project charter also defines the project approval
requirements that will influence the management of the project costs.
PMstudy.com comments:
Option 1: The Cost Management Plan is an output of the Plan Cost Management process.
Option 3: The Cost baseline is not created until later during the Determine Budget process.
Justification
Option 1: Product scope description: This documents the characteristics of the product,
service, or results that the project will be undertaken to create.
Option 2: The PMIS provides access to information technology (IT) software tools, such as
scheduling software tools, work authorization systems, configuration management
systems, information collection and distribution systems, as well as interfaces to other
online automated systems such as corporate knowledge base repositories. Automated
gathering and reporting on key performance indicators (KPI) can be part of this system.
Option 3: The statement of work (SOW) is a narrative description of products or services,
or results to be delivered by a project.
Option 4: Project management plan defines how the project is executed, monitored and
controlled, and closed.
3. Secondary risks
Justification
Secondary risk. A risk that arises as a direct result of implementing a risk response.
The cost of buying the machine (“If you buy”) is $29,000 and the one-time cost of
procurement and integration is $1000.
The cost of leasing the machine (“If you lease”) involves $10,000 as down payment and
$5,000 per month as license fee.
What is the breakeven duration after which the buying of the machine is preferable to
leasing it?
2. 4 months
Justification
If you buy, the cost is $29,000 + $1,000 = $30,000 Assuming that the lease is for M months,
the cost is $10,000 + ($5,000 x M)
The breakeven point is reached when the cost of buying becomes equal to the cost of
leasing, i.e., $ 30,000 = $10,000 + ($5,000 x M)
M = 20,000/5,000 = 4 months
Justification
RAM is used to illustrate the connections between activities or work packages and project
team members. On larger projects, RAMs can be developed at various levels. For example, a
high-level RAM can define what a project team group or unit is responsible for within each
component of the WBS, while lower level RAMs are used within the group to designate
roles, responsibilities, and levels of authority for specific activities.
2. Schedules
Justification
The team is working well, and from what you can see, should be on schedule and within
budget. As you begin to review the progress that has been made so far, and compare that to
the schedule, you see that certain tasks have taken significantly longer and incurred more
costs than originally estimated. The site preparation work was estimated to take one
month, but actually took two months and cost 30% more than anticipated. Pouring the
foundation was scheduled to take two weeks, but actually took three weeks and again cost
more than planned. Paving the parking area also took longer than expected. Your analysis
also indicates that the period during which these activities were being carried out had
much more rain than normal.
Based on this information, what would be the MOST LIKELY reason for the variances in the
project schedule and budget?
Justification
Based on the scenario described, the variances appear to be related to weather issues,
which weren`t anticipated. Many time and cost estimates are based on assumptions, and if
these assumptions are not valid, actual project performance can and often will differ from
what was estimated.
Assumptions are taken into account when estimating both time and cost. PMI mentions
documenting the assumptions on which estimates are based, in both the Cost Management
and Schedule Management chapters. Assumptions are also a key part of the project scope
statement.
Justification
The Risk probability and impact matrix should be part of the risk management plan. The
Risk register has information about the specifics of each identified risk.
Justification
Option 1: During project closure, the project manager reviews prior phase documentation,
customer acceptance documentation from the Validate Scope process and the contract (if
applicable), to ensure that all project requirements are completed prior to finalizing the
closure of the project.
Option 2: Control Scope is the process of monitoring the status of the project and project
scope and managing changes to the scope baseline.
Option 3: Control Quality is the process of monitoring and recording results of executing
the quality activities to assess performance and recommend necessary changes.
Option 4: Manage Quality is the process of translating the quality management plan into
executable quality activities that incorporate the organization?s quality policies into the
project.
Reference: PMBOK Guide 6th Edition, pages 128, 167, 288, and 298
Question 147: A project manager has constructed the foundation for a building before
completing all of the architectural drawings. This can be an example of ________________.
1. Fast tracking
Justification
Fast tracking is 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.
Justification
Life cycle costs include the cost of operations, which is beyond the scope of the project.
Life Cycle Cost: The overall estimated cost for a particular program alternative over the
time period corresponding to the life of the program. It includes:
2. Manage Quality
Justification
Justification
In Develop Schedule process, planned start and finish dates for project activities are
determined by using activity attributes, project scope statement, and activity list as part of
inputs.
PMstudy.com comments: Schedule data and schedule baseline are outputs of Develop
Schedule process; and work performance information is an output of Control Schedule
process.
Question 151: A company is considering three projects:
3. $300,000
Justification
Opportunity cost is the cost of passing up the next best option. The opportunity cost of
choosing project A (over project B, which is the next best option) is equal to NPV of the next
best available option. Net present value of project B is chosen = $300,000
Justification
Sequence Activities is the process of identifying and documenting relationships among the
project activities. Precedence diagramming method (PDM) is one of the tools used in this
process.
3. Project charter
Justification
The project charter is an important input to the Plan Schedule Management process since it
provides the summary milestone schedule that will influence project schedule
management.
Option 1: The Schedule Management Plan is an output of the Plan Schedule Management
process.
Option 2: The Activity list is not created until the Define Activities process.
Option 4: The Schedule baseline is not created until later in the Develop Schedule process.
Question 154: According to the 80/20 rule, 80 percent of the problems are because of 20
percent of the causes. To identify the most probable defects and to evaluate
nonconformities, you do a rank ordering of the defects using:
3. Pareto diagrams
Justification
A Pareto chart (also referred to as a Pareto diagram) is a specific type of histogram,
ordered by frequency of occurrence. It shows how many defects are generated by type or
category of identified cause. Rank ordering is used to focus on corrective action.
D. There have not been major changes in the cost of material and labor since last year.
4. A, B and C
Justification
Significant differences in cost estimates can be an indication that the procurement
statement of work was deficient, ambiguous, and/or that the prospective sellers either
misunderstood or failed to respond fully to the procurement statement of work.
4. Project-oriented
Justification
Project managers have maximum authority in a company with a projectized organizational
structure.
Reference: PMBOK Guide Sixth Edition, table 2-1, Influences of Organizational Structures
on Projects, page 47.
Question 157: When you encounter constraints as a project manager, in which document
will you record the information about these constraints?
Justification
Information on constraints may be listed in the project scope statement or in a separate
log.
4. Warranty costs
Justification
2. 13 days
Justification
Depending on the assumed distribution of values within the range of the three estimates,
the expected duration, tE, can be calculated. One commonly used formula is triangular
distribution:
tE = (tO + tM + tP) / 3.
4. Identify Stakeholders
Justification
Option 1: Stakeholder Analysis is a technique used to identify and classify stakeholders and
their interests. It is used when identifying stakeholders; however, it is not the name of the
process itself.
Option 2: Plan Communications Management is the process of determining the information
needs of the project stakeholders and defining a communication approach to satisfy those
needs.
Option 3: Manage Stakeholder Engagement is an executing process which involves working
with stakeholders to meet their expectations. The current project is in the initiating phase
as stakeholder-related details are just being gathered.
Option 4: Identify Stakeholders is the process used to identify all those people or
organizations impacted by the project and document relevant information on their
interests, involvement, and impact on the success of the project.
1. Directing
The project manager usually follows different leadership styles as listed below:
• Laissez Faire: Does not interfere; team is left unsupervised which may lead to anarchy.
• Democratic: Allows team to discuss issues and reach decisions, although still guides and
advises.
• Assertive: Confronts issues and displays confidence; establishes authority with respect.
3. A, B and D
Justification
Justification
Option 1: Risk identification is a separate process, which is not done as part of Perform
Integrated Change Control process.
Option 2: `Change control tools` is a tool and technique of Perform Integrated Change
Control process, but project document updates is not a tool and technique for any process.
Option 3: Expert judgment, meetings, and change control tools are the tools and techniques
for Perform Integrated Change Control process.
Option 4: Expert judgment, meetings, and stakeholder analysis are tools and techniques of
Identify Stakeholders process.
2. Project calendars
Justification
A project calendar identifies working days and shifts that are available for scheduled
activities. It distinguishes time periods in days or parts of days that are available to
complete scheduled activities from time periods that are not available for work.
Justification
In many cases, the closure of a phase is required to be approved in some form before it can
be considered closed.
Justification
In the case of stakeholders with positive expectations for the project, their interests are
best served by making the project successful.... In contrast, the interests of negatively
affected stakeholders are served by impeding the project`s progress. Overlooking negative
stakeholders’ interest can result in an increased likelihood of failures, delays, or other
negative consequences to the project.
Justification
The buyer has a right to terminate the contract if a termination clause is specified in the
contract. Requirements for procurement closure are defined in the terms and conditions of
the contract.
Options 1 & 4: These options would be considered unethical and may violate confidentiality
agreements you have with your current employer.
Option 3: You should provide all deliverables and documents to the buyer, not the new
seller.
4. Costs
Justification
2. Payback period takes the discount rate into account to determine the best possible
option.
Justification
Payback Period
• Discount rate is not taken into account in calculations for payback period.
Example: There are 2 projects. Project A has an investment of $500,000 and a payback
period of 3 years. Project B has an investment of $300,000 and a payback period of 5 years.
Using the payback period criterion, which project will you select?
Answer: Project A will be selected. The fact that project B has a smaller investment than
project A will not impact the selection.
3. Simulation
Justification
Simulation involves calculating multiple project durations with different sets of activity
assumptions, usually using probability distributions constructed from the three-point
estimates to account for uncertainty.
Justification
Techniques and considerations for effective communications management include, but are
not limited to the following: Meeting management techniques. Preparing an agenda and
dealing with conflicts.
PMstudy.com comments: In order to conduct the meeting in an organized way, you will
have to follow the meeting management techniques of preparing and publishing an agenda
and dealing with conflicts.
Option 1: Decreasing the number of people may mean that we will not have the required
stakeholders.
Option 2: Preparing and publishing a meeting agenda is the best way to ensure that
meetings are conducted in an orderly fashion.
Option 3: Controlling the channels of communication is not possible as the number of
channels is not fixed and can be determined by the formula N * (N-1) / 2.
Justification
In Cost plus fixed fee contracts (CPFF), the seller is reimbursed for all allowable costs for
performing the contract work, and receives a fixed fee payment calculated as a percentage
of the initial estimated project costs. Fee amounts do not change unless the project scope
changes.
Justification
Monitor Stakeholder Engagement is the process of monitoring overall project stakeholder
relationships and adjusting strategies and plans for engaging stakeholders.
2. Balanced Matrix
Justification
Refer to PMBOK Guide - Sixth Edition, page 47 (table 2-1, Influences of Organizational
Structures on Projects).
Reference: PMBOK Guide - Sixth Edition, table 2-1, Influences of Organizational Structures
on Projects, page 47.
PMstudy.com comments: While the balanced matrix organization recognizes the need for a
project manager, it does not provide her with the full authority over the project, human
resources, and funds.
4. Risk register
Justification
The risk register is a document in which the results of risk analysis and risk response
planning are recorded.
1. Program manager
Justification
3. Validate Scope
Justification
2. Residual Risks
Justification: Residual risks are those risks that remain after risk responses have been
implemented. Residual risks are expected to remain after planned responses have been
taken, as well as those that have been deliberately accepted.
Justification
The risk here is that even though the supplier has worked with the company in the past,
they may not have the required skills for the current project.
Justification
The analysis of the communication requirements determines the information needs of the
project stakeholders. These requirements are defined by combining the type and format of
information needed with an analysis of the value of that information.
Justification
Early termination of a contract is a special case of procurement closure that can result from
a mutual agreement of both parties, from the default of one party, or for convenience of the
buyer if provided for in the contract.
4. During quality planning, you can use change requests to take corrective or
preventive action or to perform defect repair
Justification
Plan Quality Management is the process of identifying quality requirements and/or
standards for the project and product, and documenting how the project will demonstrate
compliance. Quality planning should be performed in parallel with the other project
planning processes.
- Option 1: Quality planning should be performed in parallel with other project planning
processes.
- Option 2: These refer to enterprise environmental factors, which are inputs to the Plan
Quality process.
- Option 3: Design of Experiments is a tool and technique used for Plan Quality process.
1. Coordinator
Justification
Weak matrix organizations maintain many of the characteristics of a functional
organization, and the role of the project manager is more of a coordinator or expediter.
Reference: PMBOK Guide Sixth Edition, table 2-1, Influences of Organizational Structures
on Projects, page 47.
Question 184: You are the project manager responsible for developing a software
application based on customer requirements. Which technique do you use in order to
consider the customer`s change request?
3. Expert judgment
Justification
Expert judgment is one of the tools and techniques used in the Perform Integrated Change
Control process. The other tools and techniques used in the Perform Integrated Change
Control process are meetings and change control tools.
1. Mandatory dependency
Mandatory dependencies are those that are legally or contractually required or inherent in
the nature of the work. Mandatory dependencies often involve physical limitations, such as
on a construction project where it is impossible to erect the superstructure until after the
foundation has been built, or on an electronics project, where a prototype must be built
before it can be tested.
2. Ishikawa Diagrams
Justification
1. $250,000
Justification
Also refer to PMBOK Guide - Sixth Edition, page 267 (table 7-1).
Question 188: You are in the execution stage of your project. Due to the strategic
importance of your project for the organization, the CEO of the company wants to be kept
in the loop and wants all project communications to be copied to her too. Where will you
add this information?
Justification
The communication management plan contains among other information, the stakeholder
communication requirements and persons or groups who will receive the information,
including information about their needs, requirements, and expectations;
4. Alternatives identification
Justification
Product analysis includes techniques such as product breakdown, systems analysis,
requirements analysis, systems engineering, value engineering, and value analysis.
Justification
Project Quality Management addresses the management of the project and the deliverables
of the project. It applies to all projects, regardless of the nature of their deliverables. Quality
measures and techniques are specific to the type of deliverables being produced by the
project. For example, the project quality management of software deliverables may use
different approaches and measures from those used when building a nuclear power plant.
In either case, failure to meet the quality requirements can have serious negative
consequences for any or all of the project`s stakeholder.
4. The receiver should agree with the sender about the message being communicated
Justification
The sender is responsible for making the information clear, unambiguous, and complete.
This is done so that the receiver can receive it correctly, and confirm that it is properly
understood. The receiver is responsible for making sure that the information is received in
its entirety and understood correctly.
Please note that the receiver need not "agree" with the sender about the message being
communicated.
Justification
4. Stakeholder register
Justification
4. The item under consideration is not part of your core business, but your company
has the skills for developing the product in-house, if required.
Justification
If it is a non-core item, it may make sense to consider outsourcing as an option, as it may be
cheaper than making the item in-house.
2. 8
Justification
For calculating the number of communication channels, the formula used is n (n-1)/2,
where n is the number of stakeholders. So, in this instance, number of communication
channels with 8 people = 8 x (8 -1)/2 =(8x7)/2= 28.
Number of communication channels with 9 people = 9 x (9-1)/2 = (9x8)/2= 36. So, the
communication channels will increase by: 36 - 28 = 8.
3. Cost baseline
Justification
Determine Budget is the process of aggregating the estimated costs of individual activities
or work packages to establish an authorized cost baseline. Cost baseline is an output, not an
input, of the Determine Budget process.
Justification
Direct and Manage Project Work is the process of leading and performing the work defined
in the project management plan and implementing approved changes to achieve the
project`s objectives.
PMstudy.com comments: Please note that option 4 (Create Deliverables) is not a process.
Question 198: Your quality process did not meet the four sigma requirements desired by
your customer. So, some of your products were rejected and there is a possibility that you
would not receive repeat business from the customer. From a quality perspective, the costs
associated with the rejected products can also be categorized as:
3. Failure costs
Justification
Justification
Decision Tree Analysis is a diagramming and calculation technique for evaluating the
implications of a chain of multiple options in the presence of uncertainty.
2. Not acceptable, because it constitutes gold plating, which is not a good practice.
Justification
Customer satisfaction requires a combination of conformance to requirements (to ensure
the project produces what it was created to produce) and fitness for use (the product or
service must satisfy real needs).