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Resource buffer
Free buffer
Feeding buffer
Project buffer
2. A company has to make a choice between two projects, because the available resources in
money and kind are not sufficient to run both at the same time. Each project would take 9
months and would cost $250,000.
1. The first project is a process optimization which would result in a cost reduction of
$120,000 per year. This benefit would be achieved immediately after the end of the
project.
2. The second project would be the development of a new product which could produce
the following net profits after the end of the project:
1. year: $ 15,000
2. year: $ 125,000
3. year: $ 220,000
Assumed is a discount rate of 5% per year. Looking at the present values of the benefits
of these projects in the first 3 years, what is true?
The measurements made at the end of the process yielded the following results:
4. Your project management team includes two external consultants each from a different
company. You found that repeated conflicts between the two consultants already slow
down project progress and jeopardize achievement of objectives.
5. During a project Earned Value Analysis is performed and gives the following numbers:
6. A project manager spent some days to create a multi-page document which he called
Project charter. The document should have been issued by the project sponsor. The
sponsor found the document outsized and asked for a condensed document.
High-level risks
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Scope Statement
Requested Change
Documentation reviews
Diagramming techniques
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Make sure that all exit criteria of the consecutive phase have been met to ensure the
flow of communications in a team situation which is more complex by a factor of 2.
Make sure that all entry criteria of the previous phase have been met by planning and
performing a phase gate meeting to assess technical aptness.
Make sure that all exit criteria of the previous phase have been met by planning and
performing a phase gate meeting to assess technical performance.
Restructure your team and delegate tasks in order to ensure the flow of
communications in a team with the number of communication channels increased by a
factor of 4.5.
10. A project manager needs a certain number of identical valve housings for a power station
project.
He starts with 100 raw items which are made as metal castings. Out of this batch, 15 are
found leaking from micro-porosities in a subsequent pressure test. 6 of these housings
can be recovered by a special sealing process for raw castings.
The 91 housings are then being machined. After this process step 10 machined castings
are found leaking. 3 of these items can also be saved using another sealing process for
machined castings.
The remaining 84 housings are getting mounted to the power plant pipe work. During a
pressure test after this process step it is found that 12 valves are leaking. Out of these a
number of 6 valves can be saved by replacing the sealing rings used.
Finally the project manager has 78 valves which he can use. What is true?
RTY = 0.84
RTY = 0.78
RTY = 0.91
RTY = 0.65
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11. You found the following Earned Value Analysis information for a recently closed out
project:
The project has been cancelled while it was executed. At that time the project was
behind schedule and on budget.
The project's deliverables have all been finished. The project came in behind
schedule but on budget.
The project's deliverables have all been finished. The project came in ahead of
schedule but on budget.
The project's deliverables have all been finished. The project came in on schedule
but over budget.
It should describe how requirements activities will be planned, tracked, and reported.
a chance to which no Expected Monetary Value can be assigned so that a likely pay-
off can not be shown.
a decision to which no Expected Monetary Value can be assigned so that a likely pay-
off can not be shown.
a chance to which an Expected Monetary Value may be assigned to calculate the
most likely pay-off.
a decision to which an Expected Monetary Value may be assigned to calculate the
most likely pay-off.
14. A project management team has subcontracted work to a service company. Which of the
following tools is the best choice to assure that this company will be able to meet the
quality requirements of the project?
Quality audit
Deliverable inspection
15. With your team you are using judgment from subject matter experts to identify and
analyze project risks. There is a small number of experts available, but some of them
have long been in a teacher-student or manager-assistant relationship.
Which of the following techniques can ensure best that there is no dominating opinion
during an expert review?
Peer review
SWOT analysis
Delphi technique
16. You are running a project for a customer based on a cost reimbursable contract with the
following terms:
Which is the PTA (= Point of total assumption, Break point) of the project?
$1,300,000
$1,500,000
$80,000
$1,125,000
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17. During execution of a project which is performed for a customer on a T&M (Time and
Material) contract base, a new project manager is taking over the assignment.
He discovers that two members assigned to the project have charged time without
performing any work for the project customer. Upon further investigation, he determines
that this occurred because there have been no other project assignments open for these
employees. The customer is unaware of these facts.
Try to find some productive work for these staff members in the project and leave
them on the team.
The best thing is to do nothing. The customer will not realize the problem anyway.
Try to find a responsible person for the over-assignment who can be made
accountable.
Take the two people off the team immediately and arrange for the refund of the
excess charges to the customer.
18. In the following network logic diagram start dates are defined as early morning, finish
dates are evening.
19. Your project is executed with a globally spread virtual team. The project progress has
been found to be too slow. Which measure is most likely to immediately speed up the
project?
20. A project management team wants to procure some customized products which are
available in identical grade and quality from many vendors. What should be included in
the procurement package to ensure that their offers will be comparable?
A statement of work describing the needs of the project in sufficient detail to enable
vendors to make suitable proposals
A statement of work specifying attributes and metrics of the requested deliverables in
detail to allow vendors submission of bids
The approved project scope statement, the WBS which should be broken down to
Work Package level and the WBS dictionary
The risk management plan and the reports from those risk management reviews
which have been made so far
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21. Which of the following becomes increasingly important in a virtual team environment?
Requirements engineering
Communication planning
Network diagramming
22. You are assigned as the project manager to a project which is executed for a customer
under FP contract. Your customer informed you this morning that they insist on certain
"refinements" of the project scope.
You agree that the requested actions make really sense to the project, but believe that
they constitute a major change increasing the project scope. What should you do next?
Accept the request of the customer. Diligently document the additional costs and
working hours spent by yourself and the team on the implementation of the change
and invoice these to the customer at appropriate rates.
Perform Earned Value Analysis to assess the current status of the project and get all
the numbers you need to communicate the case to the Change Control Board which
then will have to make the best decision regarding the customer request.
Check the contract, the project charter, the scope statement and other documents
related to the project and the contract. Implement ADR (Alternative Dispute
Resolution) procedures if the conflict cannot be resolved otherwise.
Talk to the project sales department and find a joint solution with them how to best
reject the request considering the commercial and strategic value of the customer to
the organization you are working for.
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23. During a project the scope of a product purchased on a cost reimbursable contract has
increased. The contract defines a fixed fee to cover the contractor‘s indirect costs and
allow a profit. What is most likely to be true?
The contractor‘s indirect costs will increase and the customer‘s payment for them will
increase, too.
The contractor‘s indirect costs will increase but the customer‘s payment for them will
not increase.
The contractor‘s indirect costs will not increase but the customer‘s payment for them
will.
Neither the contractor's indirect costs nor the customer‘s payment for them
will increase.
24. A project management team is evaluating the causes that might contribute to
unsatisfactory performance and quality. Which of the following statements is not true?
Normal process variation is attributable to random causes and sometimes also called
"white noise".
Special causes are easier to predict and handle than random causes (also called
common causes).
Special causes are unusual events which are difficult to foresee and mostly produce
outliers.
A process can be optimized to limit the bandwidth of variations due to random
causes.
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25. You are performing a project management audit in your company and find that most of
the project plans are neither consistent nor up-to-date.
Projects should never be executed without a valid, updated and working project
management plan.
The consistency of the project management plan is secondary because it is only the
results that matter.
A great deal of effort is required to develop and update a project plan, but the
benefits include less pressure on all stakeholders and a resulting product that will
satisfy the requirements.
Poor planning and insufficient updating of project management plans are common
reasons for cost and time overruns.
26. You want to perform active risk acceptance. What should you do?
27. A project manager made 3-point estimates on a critical path and found the following
results:
Assuming ±3 Sigma precision level for each estimate, what is the standard deviation of
the allover path?
You can not derive the path standard deviation from the information given.
31. Activity 1 has a duration of 20 days, Activity 2 of 10 days, Activity 3 of 5 days and
Activity 4 of 6 days.
36 days
37 days
39 days
42 days
32. Which tool and technique is used to Create WBS and Define activities?
Brainstorming
Decomposition
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33. Which of the following statement(s) regarding whistle-blowing is/are not true?
b, c
c, d
35. Which statement describes best why you should document assumptions?
Prevention costs
Maintenance cost
Appraisal costs
Failure costs
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37. You have recently been assigned as a project manager to a new B-O-T (Build, Operate,
Transfer) capital project. Reviewing the initial documentation you found out that it has
been calculated with a very small margin during operations of its product for the
shareholders. What should you do?
As you are not responsible for lifecycle costing, you don't have to worry about
operation profits. Focus on project costs from initiation through handover.
Ensure maximum profits by buying the best and cheapest items, components and
modules - potentially from a big number of different suppliers - and integrating them.
Create a realistic plan broken down to a sufficient level of detail. Perform all risk
management processes. Ensure real-time communications with all stakeholders.
Try to get a second project manager assigned to share decision making and
accountability to shareholders with the person.
39. You are project manager in a global project with a team consisting of people from various
countries. What can you try to prevent misunderstandings due to cross-cultural
differences?
Use all communication methods available that are suitable for the team and follow up
in writing when communicating verbally. Remember that cultural and individual
diversity may help project teams solving unforeseen problems during the course of
the project.
When you are about to form a team for your project, keep in mind that some cultures
are developed, others are more primitive. Some have values, some not. You should
consequently avoid choosing members from countries with cultures that are not
similar to your own.
Cultural dilemmas can prevent any project from being successful. They should
therefore be smoothed or suppressed so as to make sure that they cannot disrupt
project work. Your effort should concentrate on communication that can help reach
that goal.
As norms regarding communication habits differ significantly across various cultures,
communicating between people from different countries should only be done using
language. The nonverbal dimension simply bears too many risks.
41. A change request in a project has been rejected some weeks ago. Yesterday, the project
manager found out that it nevertheless has been implemented by the team members,
who knew of the change request, but not of the rejection.
Verify scope
A warning sign that a previously identified risk might be occurring or has occurred
43. According to the project plan, a contractor is scheduled to deliver some software
components today afternoon. A regular payment is due to be made to this contractor
tomorrow.
You and your project team received a note this morning informing you that the software
delivery will be delayed by 2 weeks.
You should conduct a meeting with the contractor to resolve the delivery issues
before making the payment.
You should make the payment and reschedule the project plan.
44. In a software company a large number of simultaneously performed projects utilize the
same groups of human and other resources.
Concurrent engineering
Resource over-allocation
Resource pooling
Program management
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45. What does the acronym RACI commonly stand for in project management?
46. You have used estimates made by your team members and applied the Critical path
method to compute a Network logic diagram for your project. Then you found out that it
cannot be sufficiently optimized for scarce resources and fast progress towards a given
deadline. What should you do next?
Remove physical constraints and replace hard logic with soft logic.
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47. Liquidated damages (LDs) are contractually agreed payments in order to...
...give the contractor an incentive to meet an aggressive schedule or challenging
quality objectives.
...penalize the contractor for late completion of a project or failure to meet
specifications.
...cover the customer's costs caused by late completion or failure to meet
specifications by the contractor.
...make a bid or proposal binding for the offerer while the customer has time to select
among various bidders.
49. You are assigned as the project manager to a project which had a on-time cost variance
in the past caused by unexpected rework which has meanwhile been finished.
You perform Earned Value Analysis and find the following results:
BAC is 500,000.
What is right?
EAC = 550,000
EAC = 525,000
EAC = 500,000
EAC = 425,000
50. An estimation has been made that the construction of a residential home will cost a
certain amount per square foot of living area. This is an example of what type of
estimating?
Analogous estimating
Bottom-up estimating
Top-down estimating
Parametric modeling
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They are tangible and allow for early feedback on requirements by stakeholders.
Prototypes are mostly developed toward the end of a design or build phase.
53. Which of the following is generally not regarded to be a motivator according to Frederick
Herzberg?
54. What is true for modern project management? Project managers need...
55. You are the project manager in an engineering project and have recently signed a
contract with a software vendor for the development of a complicated control solution.
The software will be used to control machinery equipment which your project team is
currently developing. The contract is a lump-sum contract. The contractor has target cost
estimated which seem rather low to you. Which of the following statements is not true for
this situation?
It is the contractor's risk in this type of contract that their profit may vanish if costs
have been underestimated.
This form of contract should only be chosen when all the requirements for the
building of the product are well-known by all parties involved.
In a fixed-price contract, change requests can cause issues regarding additional time
and extra costs for the changes to be applied.
It is likely that your organization may have to assume any unexpected additional
costs for the software development.
56. A review to determine whether of project activities comply with organizational and project
policies, processes, and procedures is commonly called
Quality auditing
Inspection
Quality testing
Reject screening
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It allows one to easily identify the breakdown level of the item in the resource
structure.
It describes the coding structure used by the performing organization to report
financial information in its general ledger.
It is the collection of unique identifiers generally assigned to WBS items.
It defines ethical behavior in the project and the responsibilities to the customer and
the profession.
58. You are the manager of your company's project management office. The company is
running many concurrent projects; most of them share a resource pool of technical staff.
Understanding how resources are utilized across projects has been found essential to
overall project performance, including cost effectiveness and profitability.
This morning you received a message that the resource pool members will be unable to
perform as planned for the next months because the overall work load has grown too
high and while delays are adding up, the morale of the staff is going down.
Ensure that quantitative information for all projects is being made available in a
uniform and reliable fashion and verify that the project management methodology is
adhered to. Then consolidate the information to get an understanding of the
problems related with the use of shared resources.
Implement an enterprise project management software solution which is able to
level the human resources across the various projects and which has the capability to
model resource assignment on a percentage level thus optimizing resource utilization
for the overall organization.
Do nothing related to the described problem unless you are explicitly requested by
the organizations upper management. Supporting decision making on the level on
which project portfolio management is done, is not the project management office's
business.
Evaluate project management software which supports planning and scheduling
across enterprise-wide project portfolios. Avoid managing the availability of shared
enterprise resources for the projects run by an organization because this is not the
business of a project management office.
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59. You have been criticized that certain specifications in your Scope Statement do not pass
the test for SMART objectives. What are SMART objectives?
Objectives specified in far more detail than necessary for a execution of a successful
project.
Easily achievable objectives which help you reducing the pressure on yourself and the
team.
Objectives that should be achieved in order to attain formal recognition by both the
customer and the project sponsor.
Objectives that are described using specific, measurable, assignable, realistic and
time-related specifications.
60. You have been assigned as a project manager to a software project. While you and your
team are working on a WBS (Work breakdown structure), estimations for activity
durations based on the activity list vary significantly. Which additional documents may
help you clarify this situation?
After budget approval, an additional and unexpected cost item has been identified, which
made the project more expensive some weeks ago. The item has meanwhile been paid by
the project team, and it is expected that for the remaining duration of the project, costs
will be as budgeted.
In this case, which is the best formula to calculate EaC (Estimate at Completion)?
EaC = BaC - CV
EaC = AC + BtC / CV
62. During a company event, you had the opportunity to talk to a colleague project manager.
He told you that in his current project actual costs are 15% under cumulated costs
budgeted for today.
Project managers should visit their customers far more often than what is usual in
order to avoid misunderstandings and bad emotions.
International projects may have an increased need for traveling which can lead to
additional costs and troubles with time zones.
Committee decisions can have the paradox outcome, that a jointly made or approved
decision is not desired by any individual group member.
A project is a temporary endeavor undertaken to create a unique product, service or
result. Repeating it would be similar to making the same journey twice.
64. Which of the following statements describes best the relationship between project phases
and the Project life cycle?
The Project life cycle includes the time when the project is performed and the
expected product lifespan after that.
In project management, the sequence of project phases and phase gates is often
referred to as Project life cycle.
The Project life cycle is regarded as a sequence of project activities while phases are
defined to control overlapping activities.
The Project life cycle describes how iterations of project management processes are
used when a project schedule is developed.
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65. Which is an appropriate order in most project situations for the development of scope-
related documents?
A metaphoric description of the short term uncertainties that are present in every
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project.
The graph that describes the typical growth of earned value during the course of the
project.
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67. An output of the Estimate activity resources process is a document called "Activity
resource requirements". It identifies the types and quantities of resources...
...while the term resources is limited to equipment and materials.
68. What is not the purpose of Configuration control when Configuration management is
applied in a project?
Verification that the configuration identification for a configuration item is accurate,
complete, and will meet specified program needs.
Ensuring that proposed and approved changes to configuration items are fully
analyzed.
Ensuring that proposed and approved changes to configuration items are fully
documented.
Managing and controlling the frequently requested changes to a project by applying
agreed rules.
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69. Which statement describes best the meaning of the term Cost baseline?
A cost baseline is always created by translating time-phased cost information into
cost data on activity or work-package level.
A cost baseline is an approved time-phased budget that will be used to measure and
monitor cost performance on the project.
Data to draw a cost baseline can be easily generated and updated as necessary from
information related to actual project cost.
A cost baseline is usually displayed in the form of an inverse S-curve drawn from the
beginning of the project until data date.
70. Which is not true in regard of RoI (Return on Investment) for a project?
It defines the cumulated net income from an investment at a given point in time or
during a defined period.
It includes investment, direct and indirect costs and may include allowances for
capital cost, depreciation, risk of loss, and/or inflation.
It is most commonly stated as a percentage of the investment or as a dimensionless
index figure.
It is the time when cumulated net income is equal to the investment.
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71. A project sponsor requested Earned Value Data on two concurrent projects from the
project managers. Both projects are regarded as equally important and strategically
beneficial and have been finished by over 80%. He received the following information:
Project A:
PV: $1,800,000
EV: $2,300,000
AC: $2,100,000
Project B:
PV: $2,000,000
EV: $1,500,000
AC: $1,600,000
The sponsor considers to shift some resources from Project A to Project B to speed up the
second project which is currently behind schedule.
Changing team assignments during late course of a project typically increases cost
efficiency.
Changing team assignments during late course of a project typically increases time
efficiency.
According to the Law of diminishing returns, the consolidated Cost variance of the
two projects will decrease.
According to the Law of diminishing returns, the consolidated Cost variance of the
two projects will increase.
72. Which of the following statements describes best the relationship of quality and grade?
Low grade is always a problem; low quality may be overcome by a good rework and
repair process.
Grade is a category or rank given to entities having different functional requirements
but the same need for quality.
Both quality and grade can often be improved through intelligent measuring, testing
and examining.
Low quality is always a problem as it bears on the ability of an item to meet
requirements; low grade may sometimes be acceptable.
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73. Network templates which contain only portions of a network are often referred to as
Subprojects
Programs
WBS items
The time period needed to pay back the investment from a project when future
income is discounted.
The inherent discount rate or investment yield rate produced by the project over a
pre-defined period of time.
The rate of negative risk that can be accepted for a project without turning the
Expected net present value negative.
The expected benefit from a project’s deliverable calculated as a percentage of the
original investment over a specified time period.
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75. You just created the following network logic diagram to describe the planned flow of
activities for your project which will start tomorrow:
Which potential inconsistency in the diagram should you solve right now?
Activity E is a logical dangle in relation to the sink before the finish milestone.
Activity F is a logical dangle in relation to the burst point after the start milestone.
You cannot calculate a critical path when lags and/or leads are calculated in percent.
Result: of 75, %
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have allowed it, as I have done so often.
I also value rightful copyright information and a reference to the author. This is how I am quoting others or use their materials in my
websites and seminar literature wherever possible.
We Germans have a term for that: Gute Kinderstube – good manners from good education by good parents.
The 250 sample questions in this website (and the many more used in my seminars)
- will be updated on time when the exam will be renewed in June 2009.
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"PMI", "PMP", PgMP", "CAPM", "PMBOK" are marks of the Project Management Institute (PMI) which are registered in the United States
of America and in other nations
PMI has not participated in the creation of this self assessment test and has not reviewed it for correctness.
This test is for self assessment only and no guaranty is given for passing the PMP®.
Some of the names of companies and their products listed and linked to on this page are marks which are registered in various
countries.
© 2004-2007, all rights reserved. The owner of this website is not responsible for contents of external pages to which he placed
hyperlinks. Contact: oliver@oliverlehmann.com
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