PMP Test 02: Integration & Quality

PMP Test 02: Key Concepts

This exam reviews Economic Models, Conflict Resolution, and Risk Response strategies.

Financial Choice: For NPV and IRR, always choose the project with the highest value. For Payback Period, always choose the shortest time.
The Charter: Remember that the Project Manager does not sign the charter. It is issued by the sponsor or someone above the project.
Quality vs. Grade: Quality is how well a product works. Grade is the category of features. High quality is a must; high grade is optional.
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Q:1A project manager is starting a complex project with high uncertainty. What is the most effective way to manage the project plan as new information appears?
Rolling wave planning is used for uncertainty. It allows the manager to plan the near future in detail while keeping the distant future at a higher level.
Q:2A team is struggling because different parts of the project are not working together. Which action should the project manager take to fix this issue?
Integration management is the core of a manager’s job. It ensures that every part of the project works together to reach the final goal and deliver value.
Q:3Tom is a Project Manager using the Payback period method. Which one of the four projects should his company select?
Project D pays back the investment in ten months. This is much faster than the other projects. In this method, the shortest time is always best.
Q:4Mary is a Project Manager using the Benefit Cost ratio (BCR) method. Which one of the four projects should her company select?
Project B has a BCR of 1.25. This is higher than all other projects. A higher ratio means you get more value for every dollar spent.
Q:5Tim is a Project Manager using the Net Present Value (NPV) method. Which one of the four projects should his company select?
NPV shows the value of the project in today's money. A higher number is always better. Project D offers the most value to the company.
Q:6Chen is a Project Manager reviewing Opportunity Cost. Which one of the following is true when choosing between projects?
Opportunity cost is what you lose by not picking the second best project. It is not the project you pick; it is the value left behind.
Q:7Kumar is a Project Manager using the Payback period method. Which one of the four projects should his company select?
Project D pays back in two years. This is shorter than the three, four, or five years offered by the other projects. Shortest time wins.
Q:8Jim is a Project Manager using the Internal Rate of Return (IRR) method. Which one of the four projects should his company select?
IRR is like the interest rate a project earns. You always want the highest rate possible. Project D has the highest return at 8%.
Q:9Samantha is a Project Manager. The project cost $100,000. It made $20,000 revenue. Operational costs were $5,000 and tax was $5,000. What is the return on invested capital (ROIC)?
Net profit is $20,000 minus $10,000 in costs, which is $10,000. Dividing $10,000 profit by the $100,000 investment gives a 10% return on capital.
Q:10Which of the following is true about the project charter?
The charter is a high-level document. It gives basic info to start the project. Detailed planning like schedules and specific tasks come later in planning.
Q:11AOA (Activity-on-Arrow) diagrams represent which type of dependency relationship?
AOA diagrams only show finish-to-start links. One task must end before the next starts. Modern PDM diagrams are more flexible and show all four types.
Q:12A project manager needs an honest estimate from experts who have different opinions. Which method best avoids one expert from pressuring others?
Collecting opinions anonymously prevents bias and pressure. This helps the project manager get the most accurate and honest data from the group of experts.
Q:13Typically, signing the project charter is the responsibility of the:
The sponsor is the person who provides the money. They sign the charter to show they support the project. This gives the manager their authority.
Q:14A key component was found defective mid-way through a project. The team fixed the issue without a previous plan. This is an example of:
A work-around is an unplanned response to an issue. You did not see it coming, but you found a way to fix it after it happened.
Q:15According to contemporary standards, the most common cause of conflicts in a project is:
Schedules are the number one cause of project fights. People often disagree on how long tasks take or when certain milestones should be met.
Q:16The most long-lasting conflict resolution is caused by which of these techniques?
Confrontation is also called problem-solving. You face the issue and find the root cause. This fixes the problem for good so it does not return.
Q:17You buy insurance for earthquakes because your project is in a high-risk area. This is an example of:
Buying insurance moves the risk to someone else. You pay a fee, and the insurance company takes the financial risk. This is called risk transfer.
Q:18Which of these is correct with respect to a product developed or a service performed?
A product can have few features (low grade) but still work perfectly (high quality). However, a product that does not work (low quality) is never okay.
Q:19The team finds a quality issue that will cost the company money in the long run. Which approach adds the most value to the business environment?
Fixing the root cause through continuous improvement saves money. It ensures the product works well and keeps the company’s reputation strong in the market.
Q:20A project team is delivering work that meets all requirements, but the customer is still unhappy with the result. What should the project manager do?
Project success is about delivering value. If a customer is unhappy, the manager must talk to them to ensure the project meets their real business needs.

Test 02 Study Summary

1. Conflict Resolution Problem-solving or 'Confronting' is the best way to handle conflict. It leads to a win-win and lasting results.
2. Risk Management Buying insurance is 'Risk Transfer.' You shift the financial impact to a third party like an insurance company.
3. Planning Group The Planning process group is unique because it includes processes from all ten knowledge areas of project management.

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