What are the two charecteristics of a project?

1. It is a temporary – temporary means that every project has a definite beginning and a end.
Project always has a definitive time frame.
2. A project creates unique deliverables, which are products, services or results.

Project Management

Program Management

Portfolio Management

Project Management Office (PMO)

Project Management Life Cycle – Initiating, x,y, Monitoring and Controlling and Closing ( 5
Knowledge areas and 49 processes)

Project Life Cycle – Phases which has beginning and end for each phase

OPM and Business Stratergy

Project Management and Operations

Portfolio Management

Portfolio Management, Program Management, Project Management and Organization Project

Management

Considers including:

Scope, Change, Planning, Management, Success factors, and Monitoring

Portfolios are about maximizing return on investments

Process Group:

Initiating

Planning

Executing

Monitor and Controlling

Closing

Knowledge Areas:

11 areas

Phase Gates are kill point

Important:

Know the difference between Project Activities and Business Values

Your organization is considering to launching a new project. Robert, CEO, wantes to know what
business value of the proposed project will contribute. Which one of the following is not an example
of business value consideration for a new project?

a. Return on Investment (business value)

b. New equipment (business value)
c. Skills obtained by doing the project (business value)
d. Risk assessments within the project (project activity)

Risk assessments within the project is not a business value, but a project management activity. Risks
can be positive or negative, but the assessment of the risk is not a business value element. Business
value means that the project is contributing something positive for the organization.

You are explaining to a junior engineer the difference between a project and operations. Which one
of the following is true only of operations?

a. They are performed by the people

b. They are constrained by limited resources
c. They are ongoing (Projects are temporary; they do not go on forever.)
d. They are planned, executed and controlled

This is incorrect because projects and operations are performed by people; are constrained by
limited resources; and are planned, executed, and controlled.
Question 5:

You are the project manager for your company, Mark Manufacturers. Your company has a
large client that has requested a special component be created for one of their test engines.
Your organization agrees and creates a standard contract with the customer, and your
manager assigns you to manage this project. The project was launched because of which one
of the following?

A. A customer request
B. A change in the technology your customer is creating
C. A legal requirement (contractual)
D. An organization need

C, a legal requirement, is not correct because this actually refers to a law or mandated regulation
that has been created.

This project was launched because the customer requested the new component. A customer
request

Question 6:

Project managers are not responsible for which one of the following in most organizations?

a. Identify the project requirement

b. Selecting the project to be initiated
c. Balancing demands for time, cost, scope and quality
d. Establishing clear and achievable project objectives

Project managers typically do not select which projects are to be initiated. The project selection
committee, customers, or project sponsors are typically responsible for this.

Question 7:

You and William, a project stakeholder, are discussing risks within your project. Which one
of the following best describes risk?

a. An event that can cause your project fail

b. An event that may have positive and negative effect on your projects team
c. An uncertain event that may have a positive or negative effect on your project
d. An event that will cause time and cost constraints to be broken

Risk is an uncertain event that can have positive or negative effects on your project.

Question 8:

You are the project manager for a large software development project. You have concerns
that one of the components of the Iron Triangle is slipping. Your project sponsor, Jim Bob, is
not familiar with the Iron Triangle, so you explain the concept to him. What will be affected
if any angle of the Iron Triangle is not kept in balance?

a. Cost
b. Quality
 c. Time
d. Scope

If any angle of the Iron Triangle is changed, the quality of the project will suffer.

Question 9:

Which knowledge area includes the creation of the project charter?

a. Project Scope Management

b. Project Cost Management
c. Project Integration Management
d. Project Communication Management

Project integration management, which focuses on the coordination of all components of

project management, includes the development of the project charter.

Question 10:

Beth is a project manager and she’s working with Karen the program manager. There is some
disagreement about the project management methodology Karen is requiring all project
managers to operate by. Who has authority over this decision in this scenario?

a. Project Sponsor
b. Karen, as she is the program manager
c. Beth, as she is the project manager
d. Beth, as each project manager can select the appropriate project management methodology
regardless of the program

Karen, the program manager, oversees the project managers and the approach they’ll take in
managing their individual projects.

Question 11:

Which one of the following is an example of a project life cycle phase?

a. Framing
b. Phase gate review
c. Project Quality Management
d. Executing

Of all the choices presented only framing is a project life cycle phase. A life cycle phase is unique to a
project and shows the type of work and expected deliverables achieved within that phase.

Important: Need to understand the Project Life Cycle and Knowledge areas

Question 12:

Smith Construction has won a contract to build a 77-story condominium building in

downtown Chicago. The building will have 650 condos, a parking garage, indoor and outdoor
pools, two floors for retail, two floors of offices, and several shared community rooms. Mary
Anne Kedzie has elected to create a program for the creation of the building. Which one of
the following best describes a program?
 A. A standized approach to project management within an organization
B. A standized approach to project management with multiple projects cordinated together
C. A collection of related projects managed in coordination to gain control that would not
necessarily be available if projects were managed independantly
D. A collection of related projects, all contributing to one deliverable

A, B, and D do not accurately describe a program. Note that D is not the best answer because
programs typically create many deliverables and benefits—rarely just one deliverable.

A program is a collection of related projects managed and coordinated to gain a higher level of
control.

Question 13:

Which one of the following statements best defines the difference between a program and
portfolios in regard to scope?

a. Programs do not have scope because they are made up of projects. Portfolios have an
organizational scope
b. Programs have larger scope than projects. Portfolios have an organizational scope
c. Programs have larger scope than projects. Portfolios do have scope because they are a
financial investment
d. Programs and Portfolios can share the same scope because a portfolio may have two or
more programs

Portfolios have an organizational scope that reflects the strategic goals of the organization.
Programs have larger scopes than projects and may be part of portfolios.

Question 14:

Who is usually responsible for portfolio management within an organization?

a. Project Managers
b. Project Sponsors
c. Stakeholdrs
d. Senior Management

Senior management is responsible for portfolio management.

Question 15:

You are the project manager of a large project to install 1900 kiosks throughout college
campuses in North America. The kiosks will collect applications for credit cards, phone
services, and other services marketable to college students. The bulk of your project is
focused on the information technology integration, the wide area network (WAN)
connections from each kiosk, security of the data transferred, and the database of the
information gathered. For ease of management, you have hired local contractors to install the
kiosks that you will ship to each campus. The contractors on each campus will be responsible
for the WAN connection, the electrical connection, the security of the kiosk, and all testing.
The local contracted work could be called what?

A. Risk mitigation
 B. Operations
C. Subprojects
D. Management by Projects

This is the best answer because work that is subcontracted out for ease of management, as in this
situation, becomes a subproject.

Question 16:

There are several different project life cycle approaches you’ll need to know and be familiar
with on your PMP exam. Which life cycle approach defines the project scope, timeline, and
project costs early in the project?

a. Predictive
b. Iterative
c. Incrementatal
d. Adaptive

The predictive approach requires the project scope, the project time, and project costs to be defined
early in the project timeline. Predictive life cycles have predefined phases, where each phase
completes a specific type of work and usually overlaps other phases in the project.

Question 17:

Which of the following is likely to be part of an operation?

a. Providing electicity to a community

b. Designing an electrical grid for a new community
c. Build a new dam as a source for electricity
d. Informing public about changes at th electrical company

B and C are projects. Although D, providing information, could potentially be part of an ongoing
operation, A is still the best answer presented.

An electrical company’s primary operation is to provide electricity.

Question 18:

Of the following, which one is not part of project integration management?

a. The creation of the project plan

b. The interaction between project teams
c. The execution of the project plan
d. The documentation of the changes to the project plan

A, C, and D are all part of project integration management, so they are not valid answers.

Project integration management focuses on the project plan and its implementation, not the
interaction between project teams. Although B could, in some instances, be considered accurate if
the project plan had some interaction with other project teams, the assumption cannot be made in
this question.

Question 19:
You are the project manager for the Fixture Installation Project in your organization. You’ve
just completed the second of three phases. What event will happen next?

a. Phase gate review

b. Initiating of the third phase
c. Project quality management activities
d. Phase closure

Phase gate reviews happen at the end of each project phase and before the next phase will begin.
These are opportunity to review the project work so far and to confirm that the project can and
should move forward.

Question 20:

You are a new project manager in a company that uses a project management office. A new
technology has been released in the marketplace that will supersede the technology your
project is implementing. There are doubts that the project should continue. Martin, a member
of the project management office is considering the amount of funds already invested in the
project. What term is given to the monies you’ve already spent in the project?

A. Capital losses
B. Return on Investment
C. Sunk Costs
D. In the red

D, in the red, is a term to describe a project that is losing money. In the red is a financial slang for an
endeavor that is not profitable (in the black, means that your project is profitable).

A is incorrect because capital losses describe the money that is lost, never to be recouped.

Sunk costs describe the funds already “sunk” into a project – and they should not be considered
when determining if the project should move forward or not.

Question 21:

What term best describes the raw data of a project, such as number of change requests and
actual duration?

a. Project data outcomes

b. Work performance information
c. Work performance data
d. Work performance reports

Work performance data is the raw data and facts about the project work.

Question 22:

The project manager typically devotes the most amount of time to which of the following
tasks?

a. Communicagtions
b. Budget management
 c. Project organization
d. Management of team negotiations

It’s been said that project managers spend 90 percent of their time communicating.

Question 23:

You have an excellent idea for a new project that can increase productivity by 20 percent in
your organization. Management, however, declines to approve the proposed project because
too many resources are already devoted to other projects. You have just experienced what?

a. Parametric Modelling
b. Management by exception
c. Project Porfolio Management
d. Management reserve

A is incorrect because it is a model to estimate costs, such as cost per ton or cost per hour.

Project portfolio management is the process of choosing and prioritizing projects within an
organization. An excellent project idea can still be denied if there aren’t enough resources to
complete the project work.

Question 24:

Of the following, which is the most important stakeholder involved with a project?

a. The project manager

b. The project sponsor
c. The CEO
d. The customer

Customers, internal or external, are the most important stakeholders in a project.

Question 25:

Which one of the following is not an example of business value?

a. Profits
b. Market Share
c. Quality Control
d. Goodwill in the community

Quality control is a process and is not business value.