PMI Practice Questions 5

Cost Estimation for New Projects

• For a new multimillion-dollar project similar to one executed three years prior, create a reliable cost estimate by using the actual cost of the previous project as a reference and compute an estimated cost for each task and roll it up.
• Using actual costs from a past similar project as a reference is the best choice, as it employs a bottom-up estimating method, known for its reliability.
• Bottom-up estimating starts with the detailed costs of specific components in each work activity, progressively summing them to estimate the overall project budget, making it generally more accurate.
• Breaking down a project deliverable into its smallest components or work activities and gathering detailed information is the logical step for bottom-up estimating.
• With the availability of historical data, the reliability significantly increases.
• Generating estimates based on parameter variations or using commodity exchanges are parametric estimating methods, less reliable than bottom-up estimation.
• Multiplying the original estimate by a factor determined by the company's standard for every year can be inaccurate if the new project isn't comparable or if costs have changed significantly.

Determining Planned Business Value

• Project managers can determine whether a planned business value was delivered by reviewing the project charter and business case to determine if the deliverables achieved the intended benefits.
• Business value delivery should be reviewed against the project charter and business case to see if the deliverables realized the intended benefits.
• These documents outline the project's goals, objectives, and intended benefits, thus allowing determination of whether deliverables have achieved their intended benefits.
• Inspecting technical specifications only confirms the final product matches the approved specifications but may not ensure the intended benefits.
• Customer satisfaction is subjective feedback and does not necessarily measure the project's success in delivering business value.
• Project completion on schedule and within budget doesn't demonstrate that the intended benefits were achieved.

Conflict Resolutions

• The project manager should meet with team members to discuss the conflict with the goal of determining a resolution together and a favorable outcome.
• Work with the team to find resolutions and alternatives collectively to repair incurred damage from conflict
• Involving the people involved moves conflict into more of a problem-solving space where people can work together to resolve the conflict and promotes more constructive realtionships.
• Mandating a solution doesn't involve the team in decision-making and may not result in an effective resolution.
• Separating team members should only be considered as a last resort.
• Identifying who instigated the issue is inappropriate; the focus should be on resolving the situation, not casting blame.

Miscommunication Prevention

• Update the stakeholder register to include a new team member to ensure project manager awareness of all stakeholders and facilitate regular communication.
• A stakeholder register including the new team member would ensure awareness and consistent communication.
• Organizing a meeting with the sponsor is a good practice but not enough to avoid miscommunication.
• A previous stakeholder holding a meeting may not always be possible if they left the company suddenly.
• Updating the project charter is appropriate when authoring the project, but not during the excecution phase of the project.

Modification of the Work Breakdown Structure

• The project manager should discuss a request from team members to modify the Work Breakdown Structure (WBS) with the team and then make a decision by consensus.
• This is necessary to help team members feel empowered in their working environment.
• Unilateral decisions can demotivate people.
• Escalating a request to the sponsor may not be necessary, as it it non-collaborative and dismissive.

Preventing Cost increases in Fixed Budget Projects

• When implementing a new strategic project with a fixed budget, the project manager can prevent issues such as project cost increases by providing training on the material acquisition process and reporting requirements.
• Addressing this ensures all team members understand how to acquire new materials and helps with budget discrepancies.
• This ensures that team members are aware and understanding of the proper procedures.
• Documenting the risk of materials deviation and creating a cost contingency are good ideas in general but do not prevent this from happening.
• Avoiding new engineers is not a practical solution, as these engineers can bring valuable skills and perspectives.

Addressing Discrepancies in Project Status reporting

• To avoid discrepancies, align project artifacts with a new estimation technique and provide them to the program manager
• This will ensure data consistency for team members
• Reverting back to old techniques or not educating team members, will not stop initial discrepancies and issues.

Addressing Team Dissatisfaction with Training Requirements

• Schedule a meeeting to discuss concerns and provide clarity of the training's importance.
• This encourages open dialogue and transparency.
• This approach can provide explanations and collaboratively resolves issues.
• Ignoring complaints can suggest they will resolve on their own, which can lead to potential team de-motivation.
• Removing training can compromise agility and overall team performance.
• Sending memos may seem authoritative and lacks personal touch.

Addressing Post-Training Information Retention Issues

• Creating an information radiator consisting of key takeaways form completed training sessions, as it is the most effective and time-sensitive solution.
• Information radiators/big visible charts provide timely visible knowledge-sharing
• Other options are not reliable when considering time constraints.
• Sharing information with team partners may lead to informational inconsistencies.
• Being behind schedule means re-attendance is not optimal.

Overcoming Resistance to Project Management Processes

• To achieve more successful outcomes, host meetings with the team focused on solving problems collaboratively to develop an approach to accomplishing tasks in a way that does not involve executive mandates.
• This will allow more buy-in from team members
• Alternatives such as individual meetings or internal documents dont create an environment that creates a culture for problem-sovling processes.
• Discussing buy-in processes with executives is a top-down problem-solving method.

Steering Committee Decisions

• To achieve a consensus decision when additional benefits would come with equipment added to the project scope, conduct a survey among steering committee members to assess their idividual project requirements.
• This is effective because the steering committee is there to provide directional guidance and support to the project teams when decisions go beyond their scope.

Managing Unprofessional Customer Behavior

• Address customer behavior by speaking with team embers and the customer to try and resolve conflict.
• This means defining the problem, collection facts, analyzing the situation, and determining course of action.
• In some scenarios, the best option may include drafting letters or including senior memebrs on calls.

Addressing Product Architecture Limitations

• If the product's architecture will not support the growing number of users, engage with the product owner on the new development and prioritize the solution on the backlog
• Business stakeholders may be invited to share thoughts to contribute.
• This approach enables more concerns to be addressed.

Handling Resource Reassignment During Projects

• Discuss impacts of the project delivery with the functional manager and develop an appropriate course of action,
• The impact of resource reassignment should first be discussed with the functional manager to determine potential alternatives.
• Listing issues to risk registers is not appropriate, as it doesnt resolve the matter.
• Escalating can be ineffective without properly addressing the issues.

Vendor Negotiation Delays

• Meet with the vendor to discuss a path forward and identify an alternative vendor if necessary.
• Alternatives include circulating meeting minutes which don't resolve the issue, calling in project sponsors and pressuring vendors.

Managing Hybrid Project Concerns

• Establish a centralized repository for project documentation and product validation,
• This approach allows knowledge transfer and fosters working environment for team members.
• Requesting one one time to be responsible for development and excution is ineffective.
• Telling the PMO is unfounded and ineffective.

Addressing Change Requests and Supply Chain Disruptions

• When there are chain disruptions, revise the change request document and incorporate the additional 2-month delays stemming from it.
• This is important for the CCB (change request board) because it now has accurate information to better determine if a change request is necessary.
• If the delays get implemented without approval from the CCB, there is risk for unforeseen issues should they arise.
• The change management process needs to be followed by the project manager.

Leveraging Team Ideas to Improve Productivity

• Agile project managers should host retrospective sessions for discussions and learning.
• These are important because:
  • Provides team the chance to reflect
  • Identifies areas for growth
  • Develop the ability to address areas of growth within the next sprint
• An alernative would be iternation planning, where best practices and areas for development can get lost.

Managing high impact Communication with Stakeholders

• Increase communication with clients and stakeholders as necessary to manage the issues and their impact.
• Project changes can be properly communicated which promotes transparency.

Resolving Stakeholder Expectations During Product Demonstrations

• The acceptance criteria for products needs to be clearly displayed for teams.
• This minimizes assumption and properly manages expectation of user stories.