Last Updated on March 27, 2022 by Admin 2
CAPM : Certified Associate in Project Management (PMI-100) : Part 30
Which standard has interrelationships to other project management disciplines such as program management and portfolio management?
- Program Management Body of Knowledge Guide
- The Standard for Program Management
- Organizational Project Management Maturity Model (OPM3$)
- Guide to the Project Management Body of Knowledge (PMBOK®)
Which of the following strategies is used to deal with risks that may have a negative impact on project objectives?
220.127.116.11 Strategies for Negative Risks or Threats
Three strategies, which typically deal with threats or risks that may have negative impacts on project objectives if they occur, are: avoid, transfer, and mitigate. The fourth strategy, accept, can be used for negative risks or threats as well as positive risks or opportunities. Each of these risk response strategies have varied and unique inﬂuence on the risk condition. These strategies should be chosen to match the risk’s probability and impact on the project’s overall objectives. Avoidance and mitigation strategies are usually good strategies for critical risks with high impact, while transference and acceptance are usually good strategies for threats that are less critical and with low overall impact. The four strategies for dealing with negative risks or threats are further described as follows:
– Avoid. Risk avoidance is a risk response strategy whereby the project team acts to eliminate the threat or protect the project from its impact. It usually involves changing the project management plan to eliminate the threat entirely. The project manager may also isolate the project objectives from the risk’s impact or change the objective that is in jeopardy. Examples of this include extending the schedule, changing the strategy, or reducing scope. The most radical avoidance strategy is to shut down the project entirely. Some risks that arise early in the project can be avoided by clarifying requirements, obtaining information, improving communication, or acquiring expertise.
– Transfer. Risk transference is a risk response strategy whereby the project team shifts the impact of a threat to a third party, together with ownership of the response. Transferring the risk simply gives another party responsibility for its management—it does not eliminate it. Transferring does not mean disowning the risk by transferring it to a later project or another person without his or her knowledge or agreement. Risk transference nearly always involves payment of a risk premium to the party taking on the risk. Transferring liability for risk is most effective in dealing with financial risk exposure. Transference tools can be quite diverse and include, but are not limited to, the use of insurance, performance bonds, warranties, guarantees, etc. Contracts or agreements may be used to transfer liability for specified risks to another party. For example, when a buyer has capabilities that the seller does not possess, it may be prudent to transfer some work and its concurrent risk contractually back to the buyer. In many cases, use of a cost-plus contract may transfer the cost risk to the buyer, while a fixed-price contract may transfer risk to the seller.
– Mitigate. Risk mitigation is a risk response strategy whereby the project team acts to reduce the probability of occurrence or impact of a risk. It implies a reduction in the probability and/or impact of an adverse risk to be within acceptable threshold limits. Taking early action to reduce the probability and/or impact of a risk occurring on the project is often more effective than trying to repair the damage after the risk has occurred. Adopting less complex processes, conducting more tests, or choosing a more stable supplier are examples of mitigation actions. Mitigation may require prototype development to reduce the risk of scaling up from a bench-scale model of a process or product. Where it is not possible to reduce probability, a mitigation response might address the risk impact by targeting linkages that determine the severity. For example, designing redundancy into a system may reduce the impact from a failure of the original component.
– Accept. Risk acceptance is a risk response strategy whereby the project team decides to acknowledge the risk and not take any action unless the risk occurs. This strategy is adopted where it is not possible or cost-effective to address a specific risk in any other way. This strategy indicates that the project team has decided not to change the project management plan to deal with a risk, or is unable to identify any other suitable response strategy. This strategy can be either passive or active. Passive acceptance requires no action except to document the strategy, leaving the project team to deal with the risks as they occur, and to periodically review the threat to ensure that it does not change significantly. The most common active acceptance strategy is to establish a contingency reserve, including amounts of time, money, or resources to handle the risks.
Which of the following correctly explains the term “progressive elaboration’?
- Changing project specifications continuously
- Elaborate tracking of the project progress
- Elaborate tracking of the project specifications with a change control system
- Project specifications becoming more explicit and detailed as the project progresses
Progressive Elaboration. The iterative process of increasing the level of detail in a project management plan as greater amounts of information and more accurate estimates become available.
A project has an EV of 100 workdays, an AC of 120 workdays, and a PV of 80 workdays. What should be the concern?
- There is a cost underrun.
- There is a cost overrun.
- The project may not meet the deadline.
- The project is 20 days behind schedule.
Earned Value (EV) = 100
Actual Cost (AC) = 120
Planned Value (PV) = 80
Which characteristic do projects and operational work share in common?
- Performed by systems
- Constrained by limited resources
What does a CPI value greater than 1.0 indicate?
Explanation:CPI = EV / AC
- Cost right at the estimated value
- Cost under the estimated value
- Cost right at the actual value
- Cost over the estimated value
Which of the following is an output from Control Scope?
- Change requests
- Variance analysis
- Accepted deliverables
- Requirements documentation
Process: 5.6 Control Scope
Definition: The process of monitoring the status of the project and product scope and managing changes to the scope baseline.
Key Benefit: The key benefit of this process is that it allows the scope baseline to be maintained throughout the project.
– Project management plan
– Requirements documentation
– Requirements traceability matrix
– Work performance data
– Organizational process assets
Tools & Techniques
– Work performance information
– Change requests
– Project management plan updates
– Project documents updates
– Organizational process assets updates
Managing procurement relationships and monitoring contract performance are part of which process?
- Conduct Procurements
- Plan Procurements
- Administer Procurements
- Close Procurements
Which technique is commonly used for the Perform Quantitative Risk Analysis process?
- Strategies for opportunities
- Decision tree analysis
- Risk data quality assessment
Decision Tree Analysis. A diagramming and calculation technique for evaluating the implications of a chain of multiple options in the presence of uncertainty.
– Can only be used with discrete data.
Process: 11.4 Perform Quantitative Risk Analysis
Definition: The process of numerically analyzing the effect of identified risks on overall project objectives.
Key Benefit: The key benefit of this process is that it produces quantitative risk information to support decision making in order to reduce project uncertainty.
– Risk management plan
– Cost management plan
– Schedule management plan
– Risk register
– Enterprise environmental factors
– Organizational process assets
Tools & Techniques
– Data gathering and representation techniques
– Quantitative risk analysis and modeling techniques
– Expert judgment
1. Project documents updates
In which type of organizational structure are staff members grouped by specialty?
Which of the following is an input to the Perform Qualitative Risk Analysis process?
- Risk register
- Risk data quality assessment
- Risk categorization
- Risk urgency
18.104.22.168 Risk Register
The primary output from Identify Risks is the initial entry into the risk register. The risk register is a document in which the results of risk analysis and risk response planning are recorded. It contains the outcomes of the other risk management processes as they are conducted, resulting in an increase in the level and type of information contained in the risk register over time. The preparation of the risk register begins in the Identify Risks process with the following information, and then becomes available to other project management and risk management processes:
– List of identified risks. The identified risks are described in as much detail as is reasonable. A structure for describing risks using risk statements may be applied, for example, EVENT may occur causing IMPACT, or If CAUSE exists, EVENT may occur leading to EFFECT. In addition to the list of identified risks, the root causes of those risks may become more evident. These are the fundamental conditions or events that may give rise to one or more identified risks. They should be recorded and used to support future risk identification for this and other projects.
– List of potential responses. Potential responses to a risk may sometimes be identified during the Identify Risks process. These responses, if identified in this process, should be used as inputs to the Plan Risk Responses process.
Process: 11.3 Perform Qualitative Risk Analysis
Definition: The process of prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact.
Key Benefit: The key benefit of this process is that it enables project managers to reduce the level of uncertainty and to focus on high-priority risks.
1. Risk management plan
2. Scope baseline
3. Risk register
4. Enterprise environmental factors
5. Organizational process assets
Tools & Techniques
1. Risk probability and impact assessment
2. Probability and impact matrix
3. Risk data quality assessment
4. Risk categorization
5. Risk urgency assessment
6. Expert judgment
1. Project documents updates
Which of the following Process Groups covers all Project Management Knowledge Areas?
- Monitoring and Controlling
The process of identifying the stakeholders’ information needs is completed during:
- Plan Communications.
- Manage Stakeholder Expectations.
- Stakeholder Analysis.
- Identify Stakeholders.
Process: 10.1 Plan Communications Management
Definition: The process of developing an appropriate approach and plan for project communications based on stakeholder’s information needs and requirements, and available organizational assets.
Key Benefit: The key benefit of this process is that it identifies and documents the approach to communicate most effectively and efficiently with stakeholders.
1. Project management plan
2. Stakeholder register
3. Enterprise environmental factors
4. Organizational process assets
Tools & Techniques
1. Communication requirements analysis
2. Communication technology
3. Communication models
4. Communication methods
1. Communications management plan
2. Project documents updates
What is the most accurate rough order of magnitude (ROM)?
- In the Initiation phase, the estimate is in the range of +/- 50%.
- In the Planning phase, the estimate is in the range of +/- 50%.
- In the Monitoring and Controlling phase, the estimate is in the range of +/- 15%.
- In the Closing phase, the estimate is in the range of +/- 15%.
A rough order of magnitude (ROM) estimate is the least accurate estimate. A Guide to the Project Management Body of Knowledge (The PMBOK® Guide), 5th Edition gives the guidelines that ROMs are -50% to +50% accurate, the PMBOK Guide 5th Edition gives the guidelines that ROMs are -25% to +75% accurate, or potentially even larger. It should be noted that stated percentages are not the main takeaway are not likely specifically tested on; it is more the concept and idea that ROMs are a rough estimate, are used early in the project when info is limited, and are hence the least accurate.
Project contracts generally fall into which of the following three broad categories?
- Fixed-price, cost reimbursable, time and materials
- Make-or-buy, margin analysis, fixed-price
- Time and materials, fixed-price, margin analysis
- Make-or-buy, lump-sum, cost-plus-incentive
Which of the following events would result in a baseline update?
- A project is behind schedule and the project manager wants the baseline to reflect estimated actual completion.
- A customer has approved a change request broadening the project scope and increasing the budget.
- One of the risks identified in the risk management plan occurs, resulting in a schedule delay.
- One of the key project team resources has left the team and no replacement is available.
22.214.171.124 Project Management Plan Updates
Project management plan updates may include, but are not limited to:
• Scope Baseline Updates. If the approved change requests have an effect on the project scope, then the scope statement, the WBS, and the WBS dictionary are revised and reissued to reﬂect the approved changes through Perform Integrated Change Control process.
• Other Baseline Updates. If the approved change requests have an effect on the project besides the project scope, then the corresponding cost baseline and schedule baselines are revised and reissued to reﬂect the approved changes.
Which of the following schedule network analysis techniques is applied when a critical path method calculation has been completed and resources availability is critical?
- Applying calendars
- Resource leveling
- Resource planning
- Resource conflict management
126.96.36.199 Critical Path Method
The critical path method, which is a method used to estimate the minimum project duration and determine the amount of scheduling flexibility on the logical network paths within the schedule model. This schedule network analysis technique calculates the early start, early finish, late start, and late finish dates for all activities without regard for any resource limitations by performing a forward and backward pass analysis through the schedule network, as shown in Figure 6-18. In this example the longest path includes activities A, C, and D, and, therefore, the sequence of A-C-D is the critical path. The critical path is the sequence of activities that represents the longest path through a project, which determines the shortest possible project duration. The resulting early and late start and finish dates are not necessarily the project schedule, rather they indicate the time periods within which the activity could be executed, using the parameters entered in the schedule model for activity durations, logical relationships, leads, lags, and other known constraints. The critical path method is used to calculate the amount of scheduling flexibility on the logical network paths within the schedule model.
On any network path, the schedule flexibility is measured by the amount of time that a schedule activity can be delayed or extended from its early start date without delaying the project finish date or violating a schedule constraint, and is termed “total float.” A CPM critical path is normally characterized by zero total float on the critical path. As implemented with PDM sequencing, critical paths may have positive, zero, or negative total float depending on constraints applied. Any activity on the critical path is called a critical path activity. Positive total float is caused when the backward pass is calculated from a schedule constraint that is later than the early finish date that has been calculated during forward pass calculation. Negative total float is caused when a constraint on the late dates is violated by duration and logic. Schedule networks may have multiple near-critical paths. Many software packages allow the user to define the parameters used to determine the critical path(s).
Adjustments to activity durations (if more resources or less scope can be arranged), logical relationships (if the relationships were discretionary to begin with), leads and lags, or other schedule constraints may be necessary to produce network paths with a zero or positive total float. Once the total float for a network path has been calculated, then the free float—the amount of time that a schedule activity can be delayed without delaying the early start date of any successor or violating a schedule constraint—can also be determined. For example the free float for Activity B, in Figure 6-18, is 5 days.
“Tailoring” is defined as the:
- effort of addressing each process to determine which are appropriate and their appropriate degree of rigor.
- act of creating a project team with the specialized skills required to produce a required product or service.
- action taken to bring a defective or nonconforming component into compliance with requirements or specifications.
- adjustment of the respective influences of time, cost, and quality in order to most efficiently achieve scope.
Which is an input to the Verify Scope process?
- Performance report
- Work breakdown structure (WBS)
- Requested changes
- Project management plan
Which is an output from Distribute Information?
- Earned value analysis
- Trend analysis
- Project records
- Performance reviews