Question 1

Based on a real scenario: Hayden the Handyguy wants $50 per hour plus the cost of wood, nails and beer to build some new shelves for Ted the Project Manager who is disappointed what he built fell off the wall. Hayden's billing method is: (Select the two answers that apply).

Accepted Answer

Time and Materials and variable cost are the correct answers. Time and Material is the type of agreement, while variable cost describes the fact that the cost of the project will depend on the number of hours it takes to build the shelves.
Key Takeaway: T&M contracts are very frequent for small projects. The fact that these projects are small limits the risk. For larger projects, a project manager should use other contract types.

Question 2

Which of the following is not recommended as it tends to take the focus off of meeting the client's intended requirements?

Accepted Answer

Gold plating is adding extra features to a product in order to deliver more than what was expected to a client. Given that a majority of projects are completed without meeting their initial requirements, gold plating is discouraged as a form of client service. Just in time refers to a money saving method used by companies to deliver goods as they are needed by clients.
Prevention over inspection supports the notion that quality must be maintained through regular checkups during production, and not just at the end of the process.
Continuous improvement refers to companies making small changes to their processes to better workflow and increase efficiency.
Key Take Away: Although gold plating is discouraged here with respect to delivering more features, it can be "replaced" with a superb client experience - such as delivering a high-quality product and utilizing effective, timely communication. If there is surplus of time to be deployed after all requirements have been met, then the project sponsors should decide how to deploy it. Suggest features that you might gold-plate to your project sponsor as something they can elect to include, but make them aware of the costs of doing so.

Question 3

Which set of standards does a project manager typically have the least control over?

Accepted Answer

As with any hierarchy, project managers have the most control over standards that are closer to their home-base, and the least amount of control on standards on items on a grander scale, such as environmental standards, which are set by various governing boards. A project manager may have some say on standards at the departmental and organizational level, depending on his seniority and stature in the company.
Key Take Away: We sometimes become singularly focused on quality as it relates solely to our projects, but there are many environmental standards to be considered, such as worker safety and work site quality. Lax standards in these areas can cause disasters, such as the crane collapses in New York City in 2008. Poor environmental factors can really hurt a project by lowering overall team productivity. Listen to your team members and use your intuition on this one.

Question 4

A company makes 1,000,000 parts. If fewer than ___ were defective, it would be six sigma quality.

Accepted Answer

Each sigma represents a standard deviation. Sigma is taken to both the left and right of a normal distribution curve. Six sigma implies that 99.99985% fall within standards, or less than 2 defects per million.
For the basis of comparison:
1 sigma is 68.26%. This would be 317,400 defects per million.
2 sigma is 95.46%. This would be 45,400 defects per million.
3 sigma is 99.73%. This would be 2,700 defects per million.
6 sigma is 99.99985%, or less than 2 defects per million.
We'll test you on each of these.
Key takeaway: Six sigma is a common buzzword in the industry, but a good leader would do a marginal analysis of whether achieving this level of quality makes sense. Marginal analysis assesses where the optimal level of quality is for a firm. In some cases, higher quality means so much more precision and testing that it isn't worth the additional expense.
A marginal analysis finds the point at which a company no longer receives incremental revenue for its incremental investment. This is a valuable concept to know in quality and cost management. Those who majored in economics will feel more comfortable with this concept initially!

Question 5

What is mutual exclusivity?

Accepted Answer

Mutual exclusivity means that if one event occurs, the other cannot. It is an important statistical term to know in quality management.
Key Takeaway: Many key probability calculations will require you to recognize that events are mutually exclusive. If you already know this, we apologize. We found that a lot of people have forgotten the term since their high school stats class.

Question 6

In Project X, Stan the Project Manager has just recently received the Statement of Work he was anxiously awaiting from Bob. Which best describes Bob's role in the project?

Accepted Answer

Statements of work typically originate from the Sponsor, not from a Team Member, Stakeholder or Functional Manager.
Key Take Away: In most organizations, the project manager, or another team member, may be enlisted to fill out the Statement of Work paperwork based on what their knowledge of the sponsor's requirements is. Regardless, the sponsor should review and sign-off on the Statement of Work.

Question 7

The tendency to generalize performance based on a single indicator is best described as:

Accepted Answer

The Halo Effect is the tendency to generalize performance on multiple areas as a result of an exception performance or reputation in one area.
For instance, an example of a Halo Effect mistake is making a great engineer a project manager. We all know great engineers who would be terrible project managers, yet this happens time and time again, especially when the engineer is most senior. The person with the best project management skill set would best serve the team the show, and the engineer should, well, engineer things.
Key Take Away: I think we've all seen the Halo Effect in some way, shape or form. It's the cause of many project team failures. You must honestly assess where a team member's strengths and weaknesses lie, and assign them roles based on reality.

Question 8

According to the Project Manager's Book of Knowledge, legitimate power is always the best way to get someone to do something.

Accepted Answer

It really depends on the situation. We want to emphasize that part of being the project manager is using influence in intelligent ways.
Key Takeaway: Often expert power is the most effective. If people respect you and believe you know what you are talking about, you may be able to get people to do things without ever exercising formal power.

Question 9

Patrick, a Project Manager at the Ponzi Financial Services firm, is staffed on a key strategic project and is privy to the firm's client information. His manager Bernie has asked him to keep the information confidential. What would be considered an inappropriate use of Patrick's access to information according to the Code?

Accepted Answer

According to the Code, Project Managers should be careful in safeguarding confidential information and should not share confidential client information with anyone outside of the project team.
Discussing portions of client information as it pertains to the project is permissible with other stakeholders if care is taken to safeguard the client's identity.
Giving a project status to stakeholders who request it is permissible, and since stakeholders are team members, they must also guard confidential information.
Key Take Away: Experienced Project Managers exercise superior discretion relative to what information they discuss with whom, and where. You never know who might be listening, no matter how benign the situation may seem. Be careful when taking calls in public areas. The best thing to do is to always be a professional.

Question 10

Calvin Butterball is working as a Project Manager at the Half-Baked Ham Company. One day, he realizes that his last status report to the project's stakeholders contains a serious mistake. According to the Code of Professional Conduct, what concept best represents the situation at hand, and what should Calvin do?

Accepted Answer

According to the Code of Professional Conduct, project managers should present the project truthfully and accurately to its stakeholders.
Mistakes do happen, but pretending they don't happen is going against the Code of Professional Conduct, which specifies that Project Managers need to be truthful, even about errors.
Putting the project's needs before your own is something project managers should practice; however, by not addressing the mistake, Calvin would be dishonest about the project's status.
Key Take Away: Project managers are obligated to fully disclose any errors affecting the project. Saving face should not take precedent. Everyone makes honest mistakes, and taking accountability is usually appreciated and treated with respect.

Question 11

This is based on a real scenario at a Japanese investment bank. You have discovered a major complex case of international fraud at the company in the course of executing a project. You have reported it to your manager and were not satisfied by his lack of response. What should your NEXT action be?

Accepted Answer

We believe that all A, B, D and E are all actions you could and should take. However, the first step is to consult legal counsel to make ensure your steps are correct. Your entire career is in jeopardy here. Take a wrong step and you may also be implicated.
Key Takeaway: It is seriously recommended that you call your lawyer before any other action. The last thing you would want is the fraud to implicate you. Whatever your next choice is, make sure you cover all your legal bases before you proceed.

Question 12

Project X at The Ray Company has a new Project Manager. Company management, eager to get their project back on track, hired this new manager 1 month into a 6 week project. The project is flailing. Which best describes why the project may not make its delivery date based on what we know?

Accepted Answer

It's important that project managers be involved early on in the project planning stages, as early as possible. Project managers, who come in later run a greater risk of encountering issues with their projects. They will often have to play catch-up on a number of fronts, which can seriously hinder their projects. Even if planning was done well, you need a good project manager to execute the project.
Key Take Away: If you're taking over a project, be sure to tap as many resources as possible up front to help get you situated. The more experts you have around you - the better!

Question 13

Which best signals the completion of a project from the client's point of view?

Accepted Answer

The completion of a project is best indicated by the formal sign-off of a project. The indexing and archiving of project-related documentation, the release of resources and the gathering of lessons learned are all part of the Closing Process along with receipt of formal sign-off.
Key Take Away: Most projects end without a formal Closing Process, which is a big mistake. The more formal you make the Closing Process, the more careful attention your project will be given, especially during sign-off.

Question 14

Which of the following are part of the perform quality control process? Select all that apply:

Accepted Answer

Assessing the effectiveness of project control systems and performing re-work to meet quality standards are both part of the Quality Control process.
Monitor the effectiveness of risk response plans is part of the Risk Monitoring and Control process.
Authorizing Work and Making Payments are part of the Contract Administration process.
Key takeaway: It is important for the PMI exam to know where these processes fit in. These questions are not going to be exciting, but they are good to practice.

Question 15

Completing re-work is an accepted quality control process.

Accepted Answer

Re-work sounds like something project managers want to eliminate, and it is! However, it is necessary in many projects.
Key Takeaway: The key is to be keeping a close enough eye on quality to ensure that the amount of re-work is small relative to the size of the project. We have noticed that some project managers will go out of their way to hide the fact that any re-work needs to be done. This is a violation of professional standards, but also a reflection of fear of this term that has cropped up in PM circles.

Question 16

What is true of corrective action?

Accepted Answer

A corrective action is an action to bring project performance in line with what has been planned.
Key Takeaway: Monitor closely throughout the project and take any corrective actions as soon as possible.

Question 17

Terry is managing a project at a top construction firm. Her project team includes Tammy and Sal. She's also in constant contact with Burt (her client), Ben (her Direct Manager) and Peter (PMO Officer). Who are the stakeholders in this project?

Accepted Answer

Stakeholders include the Project Manager, other members of the Project Team, the Client, Sponsor, and anyone from the PMO. Therefore, d is the most comprehensive answer in this case.
Key Take Away: In crucial decision-making moments, it's important to keep in mind those people who are your project's Stakeholders. Being able to identify which roles they may fall into is a key step.

Quiz 1: Certified Associate in Project Management (CAPM)

Based on a real scenario: Hayden the Handyguy wants $50 per hour plus the cost of wood, nails and beer to build some new shelves for Ted the Project Manager who is disappointed what he built fell off the wall. Hayden's billing method is: (Select the two answers that apply) .