Project Management Exam Questions & Answers PDF

PROJECT MANAGEMENT EXAM QUESTIONS & ANSWERES Difference between time-constrained and resource-constrained projects: Time-Constrained Projects: The completion time is fixed and must be achieved. Resources are adjusted or increased to meet deadlines. Example: A product launch on a specifi...

PROJECT MANAGEMENT EXAM QUESTIONS & ANSWERES Difference between time-constrained and resource-constrained projects: Time-Constrained Projects: The completion time is fixed and must be achieved. Resources are adjusted or increased to meet deadlines. Example: A product launch on a specific date. Resource-Constrained Projects: Limited resources are the primary constraint. Completion time may vary depending on resource availability. Example: Building construction with limited labor. Implications: Time-constrained environments focus on accelerating work by allocating additional resources, which can increase costs. Resource-constrained environments require prioritization, often causing delays but maintaining cost control. Resource leveling or smoothing: Definition: Resource leveling is the process of adjusting project schedules to address resource constraints and balance resource usage. Why and When Used: Applied to prevent resource over-allocation or underutilization. Used when project resources are limited or to maintain consistent workloads. Reasons for using heuristics (rules of thumb) in resource-constrained projects: 1\. Heuristics are simple, quick, and practical methods for decision-making. 2\. They require less computational effort compared to optimization models. 3\. Useful for solving complex problems with incomplete information. 4\. Provide satisfactory solutions within reasonable time limits. Three rules of thumb (heuristics) for allocating scarce resources: 1\. First Come, First Serve -- Allocate resources to tasks in the order they arrive. 2\. Shortest Task First -- Prioritize tasks with shorter durations. 3\. Critical Path First -- Focus resources on tasks on the critical path to minimize delays. Four common elements of a project plan: 1\. Project Objectives -- Clear goals and desired outcomes. 2\. Work Breakdown Structure (WBS) -- Division of the project into manageable tasks. 3\. Schedule -- Timelines for tasks and project milestones. 4\. Budget -- Allocation of financial resources for tasks and overall project. Discuss the project initiation process and its two important aspects: Project initiation process: The project initiation phase involves defining the project, establishing its objectives, and obtaining approval to begin work. Key steps include: 1\. Defining objectives: Clearly specifying what the project aims to achieve. 2\. Stakeholder identification: Recognizing individuals or groups affected by the project. 3\. Project charter creation: Documenting the project's purpose, scope, and key participants. 4\. Resource allocation: Identifying initial resources required to kickstart the project. Two important aspects: 1\. Project Charter: It outlines the project's purpose, objectives, stakeholders, and authorization for the project to proceed. 2\. Stakeholder Engagement: Ensures all relevant parties are aligned and committed to the project goals. Why is clarifying the project objective important in project management? 1\. Guides planning and execution: A clear objective provides direction and focus for the team. 2\. Facilitates decision-making: Helps prioritize activities and resource allocation. 3\. Measures success: Provides a benchmark for assessing project performance and outcomes. Explain the link between a project scope statement and scope creep: Project Scope Statement: A detailed description of project deliverables, objectives, boundaries, and exclusions. Scope Creep: Refers to uncontrolled changes or extensions to the project scope without proper approval. Link: A well-defined scope statement minimizes the risk of scope creep by providing clarity on what is and is not included in the project. How the Work Breakdown Structure (WBS) helps project managers (Five points): 1\. Organizes the project: Breaks down tasks into manageable components. 2\. Improves resource allocation: Identifies resource needs for each task. 3\. Enhances communication: Provides a visual structure for stakeholders to understand the project's scope. 4\. Facilitates progress tracking: Enables monitoring of task completion and overall project progress. 5\. Minimizes risks: Clearly defined tasks reduce ambiguities and potential errors. Define Earned Value Management (EVM): Earned Value Management (EVM) is a project management technique used to measure project performance and progress by comparing planned work with completed work and the costs incurred. Three important measures in EVM: 1\. Planned Value (PV): Represents the value of work planned to be completed by a specific point in time. Example: The budget allocated for tasks expected to be completed by day 51. 2\. Earned Value (EV): Represents the value of work actually completed by a specific point in time, measured against the budgeted cost. Example: The budgeted value of tasks successfully completed by day 51. 3\. Actual Cost (AC): Represents the actual cost incurred for the work completed. Example: The amount spent to complete the work by day 51. Four potential sources of risk in South Africa during the project execution phase: 1\. Economic instability: Fluctuations in currency exchange rates, inflation, or financial crises. 2\. Political factors: Policy changes, strikes, or social unrest impacting project activities. 3\. Resource constraints: Limited availability of skilled labor, raw materials, or equipment. 4\. Infrastructure challenges: Power outages, transportation delays, or unreliable communication networks. Distinction between contingency reserve, budget reserve, and management reserve: 1\. Contingency Reserve: Allocated for known risks identified during planning. Example: Budget for potential delays due to weather. 2\. Budget Reserve: An additional allocation for unforeseen project costs. Example: Set aside funds for unexpected resource price increases. 3\. Management Reserve: Held by management for high-level, unknown risks affecting the entire project. Example: Extra funds for organizational changes impacting the project. Ethical challenges for managers during project execution: 1\. Honesty in reporting: Ensuring accurate progress and cost reporting without misrepresentation. 2\. Fair treatment: Avoiding favoritism or discrimination in resource allocation or team management. 3\. Conflict of interest: Avoiding situations where personal interests influence professional decisions.