PMP Sample Exam 6 PMP Sample Exam 6 1 / 50 An agile team has been performing at an extremely high level and pace, receiving praise from stakeholders and customers. A portfolio manager has asked the team to start a community of practice (COP) for the organization. The team members voted unanimously against this because of the intense time commitment. Instead, they offer an open invitation to anyone to attend their retrospectives. Which two statements describe this team’s reaction to the portfolio manager? (Choose 2) The team is safeguarding its ability to sustain its high-performance level by turning down the community of practice (COP) opportunity. The team is protecting its intellectual property (IP). The team is acting in accordance with an agile mindset and values. The team is acting selfishly in their own interest. This team is prioritizing their standard of work over the organization’s continuous improvement. This team has decided together to continue prioritizing their work and offering a way to share their successful ways of working with the organization by inviting others to attend their retrospectives. They did not have to agree to the portfolio manager’s suggestion, although it seemed to be a genuine improvement measure for the organization. Quite legitimately, because their environments can be very fast-paced and busy, agile teams need to ensure their work is conducted at a sustainable pace. Protecting their team’s time and space, ideating, voting, and offering a way to share their success with others in the organization—all demonstrate their agile mindset and values. 2 / 50 A project team needs to decide whether to retrofit a fleet of bicycles as e-bikes instead of buying brand new ones. The agile coach conducts a group exercise. Review the notes on the whiteboard: Retrofit old bikes • 60% probability of success with a profit of US$50,000 • 40% chance it will lose US$50,000 Buy new bikes • 50% chance of profit greater than US$25,000 • 50% chance of cost recovery What is this project team doing? Performing cost-benefit analysis Using decision tree analysis Executing a cost performance formula Weighing two options using Pareto analysis This project team is using decision tree analysis to decide between the two options, using financial data, forecasting, modeling, and expert judgment. 3 / 50 An agile team is prioritizing user stories for an app that helps people adopt dogs. After considering the impact on the project’s scope, budget, and timeline, the team decides to exclude one user story because it is too complex to implement for the app’s first release. The product owner believes this specific user story will give the app an early competitive advantage over the current market leader. How should this project team and product owner work together to make the best decision? Investigate whether the complexity of the user story creates a risk for implementation in the first release. Conduct a cost-benefit analysis, including competitive advantage, market impact, and strategic alignment. Revisit the project’s budget and timeline to accommodate the additional work and adjust the project schedule and resource allocation. Present alternative solutions that could mitigate the negative impact if the user story is excluded. This agile team and product owner should work together to figure out whether the effort required to fulfil this user story is worth the extra cost and effort that the project team expects. The cost-benefit analysis will help them all to understand the trade-offs involved in including the complex user story. By considering the potential benefits, costs, risks, and alignment with strategic objectives, the project team and product owner can make the best decision. This approach ensures that decisions are based on a thorough evaluation of all relevant factors and supports effective communication and collaboration with stakeholders. Investigating the risk is important but will not evaluate all of the aspects needed for the team and product owner to make this decision. Revisiting the project’s budget and time line to accommodate the user story is an important consideration for evaluating the impact on budget and timeline, but it should not be the sole basis for the decision. A comprehensive cost-benefit analysis is needed. While identifying alternative solutions or workarounds can be a valid approach in certain situations, it may not directly address the stakeholders’ objection regarding the competitive advantage. 4 / 50 The project sponsor, the CEO of a construction company, hires a project manager to lead and establish project management best practices. The company has a global project involving highly technically skilled teams in different countries who tried to create a project charter, but the document is not adequate. Which two actions should the project manager take first? (Choose 2) Invite the whole project team to a kickoff meeting and distribute assignments. Meet every team member and key stakeholder to better understand their needs. Review the project charter created by the global project team and revise it. Train all team members in project management principles and key practices. Hire new team members with better project management skills. The best approach is for the project manager to start understanding the project situation by meeting all project team members and key stakeholders to better understand the project’s current status, key issues requiring immediate attention, project priorities, and short-term deliverables, then reviewing and revising the project charter. The problems with this company’s project team include geographical dispersion and lack of project management skills. They are highly skilled in their technical work, so the option of hiring new project team members is not a wise choice. 5 / 50 An agile team sometimes uses an open workspace inside an otherwise quiet office. One afternoon, a giant screen is set up and customers are invited to a presentation. Approximately 1 hour later, the team is laughing and cheering so loudly that the entire office comes to see what is going on. Which event is taking place here? Retrospective Daily standup Product review Scrum of scrums This agile event or ceremony is a product demo or review meeting, where the core features and capabilities of a product are demonstrated to customers. These happen during testing intervals, which fits the description in the scenario. It is neither a standup, which happens daily, nor a team conversation, which would indicate a retrospective. A scrum of scrums is a meeting of several teams together. 6 / 50 A project manager in a nonprofit organization is working with the procurement department to identify new startup companies to bid for a major new project. The organization is committed to working with startup companies because of its public funding stream. However, in the past, many of these bid applications have contained unrealistic budgets because of the startups’ inexperience or higher costs because of the small size of their operation. What should the project manager do? Issue a request for quotation (RFQ) before the request for proposal (RFP). Advertise a request for proposal (RFP) in the usual way. Obtain an independent estimate. Host a bidder conference. In this case, the project manager should understand the estimated cost of the work that needs to be done before conducting procurement, so that there is a baseline for comparison when the bids are submitted. The only way to do this is by obtaining an independent estimate first. Then hosting a bidder conference can help ensure that any vendor bidding on the project has all the information they need and is able to ask questions before submitting a viable bid for consideration. Whether bids are submitted by knowledgeable vendors with accurate estimates or budgets or not, the project manager needs to know the approximate cost of the work. 7 / 50 An oil and gas plant construction project had been progressing on schedule and within budget. Six months into the project, the company owner visits the site for a formal tour. After the tour, the owner asks the project manager to replace the edifice of the office building with marble—an expensive cosmetic change! Even though the project manager explained to the owner that this work would escalate the cost of the project and might delay completion, the owner insisted on using the marble. What should the project manager do? Refuse to do the work and ask for a transfer from the project. Start the work immediately, using funds from the management contingency reserves. Write a formal change request and send it to the change control board (CCB) for approval. Discuss the matter with the program manager and convince them to deny the change. Even though a change can negatively affect or distract from a project’s goals, if a powerful and influential stakeholder insists on it, the change must be taken seriously. Hence the work should be done as required by the company owner, despite the delay and cost involved. Execute this change like any other by submitting a change request and obtaining approval from the change control board (CCB) after determining the cost and time required for the change. 8 / 50 A company is contracted to manufacture oil storage tanks for a construction project. According to the latest project report, the tanks are missing a venting system, as required by international industry standards. The project manager seeks advice from the company’s operations supervisor, who states that this will have an adverse effect on the quality of the product. What should the project manager do to correct the situation? Allow the vendor to complete the construction and the owner to fix the issue after the product is delivered. Empower the team to create a makeshift venting system that meets the standards. Initiate a change request with justification for the design of a venting system for the tank. Alert the vendor about the flawed design and insist they fix it as it was in scope of their contract. Because this is a serious design flaw that impacts product quality and project success, it must be rectified. The best approach is to obtain change request approval for the execution of the missing work. 9 / 50 Two weeks after taking on a leadership role in a project, a project manager has completed the project team and key stakeholder analysis. Now they want to show the team how to organize a project and learn about project management. Training the team in project management is a high priority for stakeholders, especially the CEO. Which action should the project manager perform next? Introduce the framework for the project and use servant leadership to explain why the framework will help to structure their work. Update the project management plan explaining the cost and schedule baselines to the project team. Create the team charter and ground rules including project management coaching as part of the team culture. Send the core team members to project management training in agile and predictive approaches. A project manager has a good understanding of the project team and stakeholders for this project and is now ready to establish the project management framework. This is the next step in the project and, through servant leadership, can show the team how it is done, which will also satisfy the stakeholders. The other tasks should also be performed, but the first step for the project manager to complete on this list is to establish the project framework. 10 / 50 The latest progress reports indicate that a software development project is within tolerance and forecasted to be completed on time and on budget. The product owner requests a change to the agreed specification, which will require significant rework of completed work packages and the introduction of new work. Although the reasons for the change are justifiable, the project manager is concerned about schedule and budget impacts. Which action should be taken first? The project manager should approve the change request and work with the product owner to figure out how best to complete the work in the shortest amount of time. The product owner should approve the change request and work with the project manager to establish new cost and schedule baselines. The project manager and product owner should meet with key stakeholders to establish the budget and schedule impacts, agree on rework, and determine the priority of the change. The project manager and product owner should escalate the change request to the project sponsor for approval as it affects the budget and schedule. In this scenario, the project manager and product owner should work together to assess the impact of the change. Key stakeholders should be consulted to quantify the impact to the schedule and budget and help determine the business priority of the change and ensure it aligns with the project’s objectives. Escalating the final decision to the project sponsor might be necessary if the assessment determines that the change is required but is outside any delegated authority for approval. 11 / 50 A large, valuable sculpture in a big city needs to be moved safely from one location to another. This is project A, which must be done before project B, the city’s largest infrastructure project, can begin. After a 2-week delay, the project managers meet. Project manager A announces another 6 months and US$900,000 will be needed to remove the sculpture and success cannot be guaranteed. What should project manager B do? Cancel the project and disband the team until the roadmap for project A can be fixed. Brainstorm an alternative solution with the stakeholders of both projects. Perform a Monte Carlo simulation on the possible outcomes. Prepare a risk assessment on project A using a Stacey matrix. The dependencies between these two projects present a great challenge to the project B team. They need to balance their internal and stakeholders’ priorities as well as the owners of project B, who are also stakeholders. The only way to do this is to prioritize positive project outcomes. 12 / 50 A project manager in a software company is working on a highly confidential project. One developer often works late and carries a large bag to work daily. The project manager learns that the developer’s brother-in-law works for a competitor company, and they have been meeting for lunch. What should the project manager do first? Report the developer to the company’s security department and let them assess the threat. Escalate these suspicions to the project sponsor and seek guidance. Watch the developer closely for a week and ensure nothing is removed from the office. Check that the developer has signed the nondisclosure agreement (NDA) and revisit the team charter with the team. Although there are concerns, there is no proof the developer is doing anything sinister or wrong. Playing vigilante is the opposite of an environment built on trust and psychological safety and may create negative morale. By checking the nondisclosure agreement (NDA) and signed security protocols first and ensuring the team is reminded of the ground rules in the team charter, you have done your due diligence as project manager. If needed, any concerns should be discussed with the project sponsor. 13 / 50 An agile project team is joined by a newly hired team member who is highly skilled but has only worked on predictive project teams. After working with the team for 1 month, the project team has scheduled a product demo with the client, an external customer. The client gives direct and passionate feedback: “This mechanism is overcomplicated. Customers won’t like it. We can’t support it. Start over!” The new team member begins crying and immediately exits the room. How should the project team react? Use emotional intelligence (EI) to coach the client on how to interact in future situations. Tell the new team members they must respect and listen to all client feedback. Discuss expectations around communications and team ground rules at the next retrospective. Move the new team member to a less critical project until they become more comfortable using agile approaches. The best approach here is to utilize the retrospectives by maintaining the healthy and strong relationships among all stakeholders. As a new member of the project team and new to an agile working environment, they will need help understanding expectations, how a psychologically safe environment works, and coaching from the team. Unfortunately, clients and customers sometimes do react passionately or negatively; this is reality. A unified, empowered team culture built on effective and safe communication and organizational policies is the best defense against this kind of behavior. It is not a project team’s job to coach a client or customer on emotional intelligence (EI). 14 / 50 A product development team composed of one product owner and several global team members, all working virtually, has several projects in progress. A team member finishes a project and, in an attempt to help the team, they execute a product launch and closes a project on their own, without notifying the product owner or any other team member. After closure, the team member emails the whole team a list of lessons learned and quality improvements to be implemented across the portfolio. Which two actions should the project team take to improve team communication? (Choose 2) Archive the project artifacts and update the lessons learned register. Revisit the correct project process roles and responsibilities at the next retrospective. Congratulate and thank the team members for their hard work. Update the quality policy and project management plan. Examine the project team building or team-formation framework. The team member has acted to close a project without the team. While the team member might have had the best of intentions or produced a positive outcome, their way of working is out of scope for healthy project team communication. Team members should not act alone, without the product owner, to close a project. Although virtual teams can suffer from poor communication, the problem here could also be a weak sense of team identity or a team member who does not have the correct training or know the team’s way of working. The team member might have even ignored the team’s way of working for professional advancement or in the genuine best interest of the project. Whatever the case, this team is disunified and it needs to be reunified. Revisit the correct project process roles and responsibilities at the next retrospective and examine how well this team’s framework is working to make necessary changes. 15 / 50 A project team has recently implemented a software system to replace some of an organization’s internal manual processes. Although training has already taken place, some end users are resistant to the change and prefer the old manual methods. Which two actions should the project manager take to ensure the new software is adopted by all users and that the transition is smooth? (Choose 2) Engage the benefits owner about further training on the new software after implementation. Work with internal stakeholders to offer incentives for using the new software. Work with the process owner on a plan to phase out the old manual methods. Ignore the resistance and continue with implementation. Work with one business unit or functional department to implement the change as a pilot. Resistance to change can be a natural response, and project managers should know how to work with organizational change management methods and owners to facilitate positive receiving environments for their projects. Working with the process owner to create a transition plan or including a pilot for the project can be effective ways to ease this organization into a change. Incentivizing is not a sustainable solution, and ignoring a problem is hardly ever the best option. Providing further training can be perceived as a burden to end users, and it should take place before the implementation. 16 / 50 A project manager is assigned to lead an organization’s first project using agile development approaches. To prepare, the project manager sketches some initial plans and notes some concerns, which include resource and talent management and who can help lead the effort. Which team member or stakeholder should lead this project? Product owner from the customer organization Project sponsor Project team’s most senior and experienced member A recently hired project team member with agile experience. A successful adoption of agile should be led ideally by someone who has already adopted it and can be an advocate and coach. The other choices would not be as advantageous to the organization. 17 / 50 A national beautification program is underway. One project—to remove the “locks of love” (padlocks fastened by couples in love) from the side of a 200-year-old bridge—is highly controversial. The locks are speeding up the destruction of the bridge railings, which is a safety concern, but thousands of people have been protesting the removal every weekend, shutting down city streets and creating bad publicity. Protests have become global, as a social media campaign shows thousands of tourists visiting the city are also angry about the removal. What should the project manager do? End the project because of the bad publicity and suggest a new project to address the problem. Start a social media campaign about the benefits of beautification and safety in public spaces. Close the bridge, erect a scaffolding, and cut the locks off out of sight of the protestors. Delay this project until the publicity quiets down and restart it in the future. The project manager needs to communicate with these very public and resistant stakeholders. When factors in the external business environment create a substantial impediment to project work, such as what has happened here, it is first up to you to find a solution. In this case, stakeholder engagement and collaboration should be used. Local and online stakeholder groups can learn about the project’s objective through a neutral, creative medium, and if it is done well, it is possible that some people may be convinced, or a compromise reached. Going ahead with the work in a clandestine and forceful way is not the best choice, because these kinds of heavy-handed actions can have negative consequences. The other options to delay or end the project do not indicate an opportunity to collaborate with stakeholders, which is required. 18 / 50 Ten years ago, a family inherited a 140-acre estate but since then have only argued about what to do with it. Now, they must act within 24 months to avoid financial penalties for dereliction. The estate lawyer engages a development company with a project manager to find a solution. The project manager hosts a discovery and fact-finding meeting and hears the following viewpoints: • Stakeholder F wants to restore the derelict building to preserve historical value. • Stakeholders P and Q want to demolish the building, then build and sell houses. • Stakeholder B wants to split the property among the family. • The lawyer reemphasizes the timeline. Which two steps should the project manager take first? (Choose 2) Discuss the scope options with the development team and ask them to develop a proof of concept (POC) for each. Examine the value gained by each of the options. Give the group a deadline to decide what they want among themselves and then advise the project team. Continue discussing the various options with the stakeholders and listen actively to their concerns. Estimate the schedule and cost of each option. We examine value and base decisions for project scope based on available data. After that, we can invest in a proof of concept (POC). These stakeholders have had enough time to collaborate, but it is clear they cannot agree and move forward without help. They have contributed enough initial ideas for you to examine the potential value, schedule, and cost of each as the first steps. 19 / 50 A newly appointed project manager is reviewing documents and realizes the business case contains incomplete information. What should the project manager do next? Process a change request. Ask the project sponsor to update the business case. Update the business case. Determine what information is needed. When a new project manager joins a project and find an incomplete business case, the immediate solution is to determine what information is needed to understand what the business wants and needs from the project. 20 / 50 A new project manager is asked to help a project sponsor create a project charter for the first time. After looking through the project documents provided by the project sponsor and the business stakeholders, the project manager creates a draft and is nearly ready to share it with the stakeholders and the project team. Which additional step should the project manager take to ensure the project charter is ready? Conduct a peer review of the document. Ensure all talent and resource contracts are fully executed. Provide a link to the project team’s virtual workspace. Include the acceptance criteria for deliverables. A project charter includes a high-level description of the project’s goals and a lot of information about the project. At this point, contracts may or may not be executed and the workspace may or may not exist. Acceptance criteria are decided on when it is time to complete the next step, starting with the project management plan. The only step on this list that should be completed now is to facilitate a peer review of the document ahead of obtaining approval. 21 / 50 A project to catalog a knowledge base has been rejected several times. The work is now unavoidable, but the company has limited resources to complete it. A project manager has recorded a long list of quality defects of varying degrees of importance and criticality, which cause the stakeholders to be concerned. Which tool or technique should the project manager use to approach the task of dealing with the defects? Pareto chart Control chart Strengths, weaknesses, opportunities, and threats (SWOT) analysis Cause-and-effect diagram The project manager needs to prioritize the long list of defects before taking action. A Pareto chart will show the defects by volume, from greatest to least. From this visual, the project manager can see what is causing the greatest defects and deal with those first. 22 / 50 A software development project using a hybrid development approach has a fixed budget of US$500,000. During the execution phase, a project team lead has been tracking the costs and posting the actual cost (AC) and planned cost (PC) amounts on an information radiator. The project team notices that this trend has continued for the last 3 months, with the variance growing steeper during the last month. They plan to discuss the budget at the next retrospective. What should the project team do? Reduce quality to a minimum viable metric while maintaining scope. Estimate the additional cost for the remaining scope and request a budget increase. Renegotiate project contracts with vendors to reduce costs. Review the project scope and make necessary adjustments to align with the remaining budget. Since the actual cost (AC) exceeds the planned cost (PC) and this project has a fixed budget, the team should find out if they can adjust quality to deliver on scope. In this software development project, this may involve identifying and removing any unnecessary work or features and prioritizing critical project requirements. The budget is fixed, so the team needs to stay within that parameter. Renegotiating vendor contracts will take time and carries risks. 23 / 50 A project team is developing a new e-commerce website for an IT project. The project is facing several technical issues that are affecting progress, including multiple code corrections caused by poor quality of coding. The deliverables have been negatively impacted. In which three ways should the project team address these issues? (Choose 3) Escalate the issues to senior management for a solution. Work with the product owner to create a new user story to address the quality and technical issues. Update the iteration backlog. Collaborate with the stakeholders to resolve the issues. Schedule an iteration H to solve the quality defects. Stakeholder collaboration is the best solution to resolve the quality issues in this situation. The project team should also work with the product owner to create a new user story to address the quality issues or schedule an iteration H to solve the quality defects. Escalation is not required in this situation, because the team should be able to act on quality issues, and the iteration backlog is not updated during the iteration. 24 / 50 A project to build a large resort-style swimming pool is in the execution stage. The project manager notices that team members are using different units of measurement to monitor project progress: some report completion of work in hours, some in days, and others note the percent complete. This is causing confusion. What should the project manager do to prevent this from happening again? Direct the team to use a single measurement unit. Refer to the team to the guidelines in the schedule management plan. Design a unit conversion tool to convert different units to a common unit. Consult the project management office (PMO) to decide on actions. You need to ensure the team is using measurement units as described in the schedule management plan. Directing them without checking the schedule management plan is an incorrect choice for a project that is using this project management plan component. Designing a tool is just going to complicate things, will take time, and is not an appropriate solution considering the effort and money invested. You could consider consulting the project management office (PMO), which would have been more appropriate while creating the schedule management plan. 25 / 50 A project was discontinued because of severe resource limitations 3 years ago. Now the project sponsor insists that it should be restarted and offers a budget but no staff. The other stakeholders agree the business needs the work to be done but cannot allocate any of their staff members to do the work. Despite this, a project manager has been assigned to the project. The project manager is given 3 weeks to review the original project artifacts and report on recommendations to the project management office (PMO) so the project can be prioritized within the business portfolio. In which two ways should the project manager approach this situation? (Choose 2) Propose using automation or artificial intelligence (AI) to assist in completing the work. Engage the stakeholders and force them to release the resources per the project sponsor’s mandate. Try to convince the project sponsor to wait until the needed staff members are free to begin the project. Circulate the project charter and discuss resource requirements with the stakeholders. Request more funding to hire contractors to perform the work. This project has been authorized and is proceeding, whether the stakeholders are ready or not. The project manager’s job during the next 3 weeks is to prepare to start the project work. Even if the conversations will be difficult, the project manager needs to have them with the stakeholders now. Asking for more money to hire external resources is also a good idea in case the stakeholders cannot provide staff to meet the project’s needs. Using AI is an innovative tool, which is becoming commonplace, but it carries risks that would need to be evaluated before the tool is used; this adds time to the schedule. 26 / 50 Every year, from May to October, a ski resort closes to undertake a project to inspect the surrounding mountain trails and repair the ski lifts before reopening. The date is now 15 September. The project manager wants to know how much more money to allocate to the project budget to meet the completion date of 31 October. Which method or metric should the project manager use? Cost performance index (CPI) Estimate to complete (ETC) Estimate at completion (EAC) Parabolic estimation Estimate to complete (ETC) indicates the projected remaining amount of money that will be spent based on past performance. The project manager can look at the money spent during the first 4 months of the project. Because this project occurs every year, a project manager can easily access the past years’ performance metrics to determine how much more money to allocate to the budget. 27 / 50 Three project team members request long leave of absence. Two team members are studying for a major exam and the other has a family emergency. Their project roles are very similar, and the project is critical to the business. What should the project manager do? Prioritize the leave requests based on seniority and company policy. Approve all the requests because they will return to the project with positive energy. Assess how approving the leave requests could affect the project. Compress the project schedule and approve shorter leave times for all. The best approach here is to perform an impact analysis and be transparent with the team members regarding the project status and their roles in project success. Based on the result of the analysis, collaborate with them on a solution that will not negatively affect the project. 28 / 50 A project manager is replaced during the execution stage of a project. During a handover meeting, the departing project manager introduces the new project manager to the project sponsor and the project team. The new project manager asks who the supportive stakeholders are, but no one knows the answer. What should the new project manager do? Interview the project sponsor again—they should have some idea. Look through the project documents to find the names of the stakeholders. Prepare a questionnaire for the team about desired stakeholder participation. Consult the lessons learned repository, which has a lot of information. In this case, the new project manager is assuming control of a project that did not have proper stakeholder engagement planning. Stakeholder support is always needed. The project sponsor can help but they and the team have already been consulted. Clearly, research is required, and the project documents are a good place to start. After identifying and engaging the stakeholders, the new project manager should collaborate with the team to determine levels of participation. Although it is true that the lessons learned repository has a lot of information, it is important to identify, analyze, and engage the stakeholders as soon as possible. 29 / 50 A company is considering a project to improve its IT infrastructure. The project team wants to identify the assumptions, constraints, risks, and issues. Categorize the assumption, constraint, risk, and issue correctly. A. The unique server used by the team is out of service from 8:00 a.m. this morning. B. Negotiations conducted last week by the management team with our partner resulted in an agreement to register a budget of US$50,000 in the next quarter for IT infrastructure upgrades to avoid this type of server failure. C. The project may be delayed due to possible loss of data due to sudden shutdown of the server during its failure. D. Development work on the main project deliverable is struggling to move forward due to the limited capacity of the current development infrastructure. A is an issue; B is a constraint; C is a risk; and D is an assumption. A is a risk; B is an assumption; C is an issue; and D is a constraint. A is an issue; B is an assumption; C is a risk; and D is a constraint. A is a risk; B is a constraint; C is an issue; and D is an assumption. A server outage is a problem or issue that has occurred and for which a solution must be found. Negotiations seek a likely budget of US$50,000 to solve infrastructure difficulties, so the team can make the assumption, or working hypothesis, or the cost. The possibility of a delay is a statement of risk that something may happen, namely if the server is stopped abruptly there might be data loss. Finally, a known infrastructure capacity limitation explains a constraint, or limiting condition to the work. 30 / 50 During the risk management planning process for a software development project, a project team identifies a high-risk item related to the integration of a new third-party tool into the system. The team has identified a contingency plan, but it is expensive and may impact on the project budget. What should the project manager do next? Implement the contingency plan immediately to avoid any potential risks. Evaluate the cost-benefit analysis of the contingency plan before implementing it. Wait and see if the risk materializes before taking any action. Ignore the high-risk item since there is a contingency plan in place. After identifying a high-risk item with a costly contingency plan, the project manager’s next step should be to evaluate the cost-benefit analysis of the contingency plan before implementing it. This will help the project manager to determine if the cost of the contingency plan is worth the risk mitigation benefit. The project manager should also consider other risk management options such as risk avoidance, risk acceptance, and risk transfer. By evaluating the cost-benefit analysis and considering other risk management options, the project manager can make an informed decision on how to proceed. Implementing the contingency plan without evaluating its cost-benefit analysis may lead to unnecessary expenses and negatively impact the project budget. Waiting to see if the risk materializes may lead to missed opportunities for risk mitigation, increased costs, and project delays. Ignoring a high-risk item is not a proactive risk management approach and may lead to serious consequences if the risk materializes. 31 / 50 A new project manager begins work on a project started last year to renovate a busy airport terminal. Even though the project uses a hybrid development approach—making incremental updates to the terminal—it has encountered many issues, specially creating conflicts with airport operations. The new project manager asks the project team about how they typically handle problems and risks, but no one has a clear answer. What should the project manager do first? Switch to a predictive approach for better risk management. Modify the risk register. Start to identify potential risks. Update the risk management plan. The best approach here is to update the risk management plan that should already be in place. The issues on this project are evident because the risk management plan is not updated. Using a predictive approach does not guarantee better risk management. The project is already using a hybrid approach, so a risk management plan should have been in place and continuously updated. After the plan is updated, the risk register can be modified. 32 / 50 A business-critical project is in danger of missing a deadline in 15 days and failing. The team lead escalates the issue to management and is given the option of adding an unknown resource for the next 2 weeks or reprioritizing the backlog. The project team asks the product owner to reprioritize the backlog. Why is this the best choice? Adding a new resource at this point is too risky. Shifting the resource might require many approvals. The extra resource will cost too much money. Delivering something inadequate is better than failing. The key issue in this question is the stage of the project and its criticality. Using Tuckman’s Ladder Model as a guide to team dynamics, adding an unknown resource for a short period of time means the project team will start from the forming stage and won’t reach their maximum productivity right away. This is a best-case scenario, because the outcome can be a far more serious disruption to the team dynamic at a critical point in the project. That risk is too high. Approvals can be expedited, and we can assume that since the project is business critical, the company would have paid for the extra resource. Option D presumes that a reprioritized backlog would deliver an inferior or inadequate product. But because this project team is using an agile development approach, any backlog decisions will have a strong chance of delivering positive outcomes for the customer. 33 / 50 Midway through a project in a large organization, a project sponsor has left and been replaced by a senior department manager who is already a project stakeholder. The project manager is concerned because the department manager is not answering emails in a timely manner. How should the project manager respond? Consult with the former project sponsor about how to work better with the new manager. Increase the number of communication channels in the communications strategy and communications management plan. Engage the stakeholder properly and learn their communication needs. Update the stakeholder’s status from “neutral” to “leading” in the stakeholder engagement assessment matrix. With new stakeholders in the key role of project sponsor, it is imperative to engage with them to discover their needs and expectations for both the project and communication with them. With the arrival of a new person in the role of project sponsor, even though they are already familiar with company policies and organizational process assets (OPAs), they are still new to the project. You should engage them properly and personally about the project. The original project sponsor has left, so they will be replaced in the communications management plan and stakeholder engagement plan; there is no need to add another channel. 34 / 50 A project sponsor announces their retirement and informs the project manager that they will be replaced by two company managers. The project sponsor says: “These two managers work together closely, so the transition should be seamless.” What should the project manager do next? Continue working exactly as before. Update the stakeholder engagement plan to accommodate the two new managers. Redo the whole communications strategy and communications management plan. Update the project management plan and the stakeholder engagement assessment matrix. When the number of communication channels changes, we need to adjust our communication methods accordingly. The strategy can remain the same. To assume that two individuals working closely together would act as one is an unsafe assumption. With a plan in place to handle their individual communications, the project manager can have an effective strategy and engage and collaborate with these stakeholders effectively as individuals. 35 / 50 An oil and gas company is redesigning their oil storage tanks to meet updated international industry standards. A vendor is contracted to perform the work. During the latest inspection, a critical flaw is detected in the tank venting systems. The vendor states this is a design flaw, and they notified the team lead 3 weeks ago to inspect the tanks, but they did not perform the inspection. The vendor kept working, using the designs they were given, to meet the next milestone. The team lead says the inspection was not on schedule. What should the project manager do first? Consult the responsible, accountable, consulted, and informed (RACI) chart to find out who is responsible and accountable for the inspections. Consult the project schedule to verify the inspection dates. Escalate to operations and log the problem in the issue log. Schedule a quality assessment to fix the problem as soon as possible. The project manager needs to get this problem fixed as soon as possible. The RACI chart and the conflict between the vendor and the team lead should also be addressed but this can be done later. Escalation is typically the option taken when the issue is beyond your authority and too complex to solve on your own. 36 / 50 A project manager is responsible for a software development project, and the project team has been using a predictive approach. However, due to changing requirements and customer needs, the project team has decided to adopt an agile approach. Which three actions should the project manager take to ensure a smooth transition from a predictive to an agile approach and that the team adapts well? (Choose 3) Train the team on the agile mindset. Create a detailed plan for the transition. Engage the team in a discussion on the transition. Implement agile practices and inform the team. Request an agile coach to help the team. To facilitate a smooth transition in this case, agile training and an open discussion about the transition are required. The project team needs to understand the transition process and have input in decision-making before adopting an agile way of thinking and working. Taking this step without the collaboration and buy-in of the team might create resistance and hinder the transition process. Creating a detailed plan for the transition is an example of a plan-based method that the team is trying to move away from, so this is not a good choice because the project team and the project manager all need to shift to the agile mindset. 37 / 50 A project manager is ready to kick off a new construction project. The stakeholders are all enthusiastic about the project, but their varied opinions about the project are causing some problems. Most stakeholders want to use the reliable milestone-based predictive approach the company has always used, whereas others want to try an agile approach to move work along faster. What should the project manager do? Escalate this to the project sponsor and let them decide on the approach. Discuss the options with the customer and let them decide. Decide based on the value gained by each of the delivery options. Recommend a hybrid approach as it would satisfy most stakeholders. When choosing the appropriate project approach, project managers should make their selection based on which will deliver the best value for that specific project. In this process, it is also important that the project manager educate stakeholders about the rationale behind the choice of a specific approach. Since the project manager and project team will plan and deliver the project, this decision should not be escalated to the project sponsor; however, the customer and other stakeholders may provide input. 38 / 50 A project manager has subcontracted some technically challenging work to a vendor. The vendor has delivered the subcontracted work as per the technical specifications mentioned in the contract. Still, the project manager is not satisfied with the deliverables produced because they are not exactly what was required. Which two actions should the project manager take first? (Choose 2) Withhold payment until the dispute is resolved. Take legal action. Accept the deliverables. Negotiate a new or amended contract. Terminate the contract. The question states the vendor has completed the work as per the technical specifications mentioned in the contract. Therefore, the seller has met the acceptance criteria described in the terms and conditions of the agreement. Realistically, you would likely negotiate a new or amended contract with the seller to align the deliverable with your requirements better. Therefore, among all available options, accepting the deliverable and negotiating a new or amended contract are the best answers to this question. 39 / 50 A large construction project to renovate a landmark building in a highly populated area has received significant media attention due to its potential impact on the local community. Several stakeholders, including community leaders, local politicians, and environmental groups, have expressed concerns about the project’s potential impact. Which approach should the project manager take to complete this project successfully? Focus on meeting the project goals to the highest quality standards so stakeholders will be reassured. Develop a stakeholder engagement plan and communicate regularly with stakeholders. Follow stakeholders’ social media, attend all their meetings, be respectful and empathetic, and use active listening. Track stakeholder concerns but address them only when they become an obstacle to the project’s progress. Developing a stakeholder engagement plan and communicating regularly with stakeholders is the most effective approach to engaging stakeholders in a highly visible project with significant community impact. It is essential to engage with stakeholders, understand their concerns, and develop strategies to address them. Communication is critical to building trust with stakeholders and ensuring their support for the project. Engaging with stakeholders is necessary to address their concerns and ensure project success. However, since these stakeholders are already detractors, you might spend a lot of time and energy getting involved in discussions or arguments that do not benefit the project. While ignoring stakeholders’ concerns can lead to negative public perception, legal problems, and project delays, indulging them is also the wrong strategy. 40 / 50 A large utility company is using a hybrid approach to update their customer service software platform. The project has entered the testing phase, and the project team has identified several defects in the system. An expert joins the project to troubleshoot the defects. An investigation finds that incomplete requirements gathering and poor communication between project team members and stakeholders have caused the defects. What should this project team record as lessons learned from this situation? Ensure all requirements are gathered before beginning the project. Assigning a dedicated team for requirements gathering will help ensure requirements are complete. Regular communication with stakeholders throughout the project ensures that requirements and scope are valid. Hold stakeholders accountable for incomplete requirements. Regular communication with stakeholders throughout the project is the best approach to preventing defects caused by incomplete requirements gathering and poor communication. This approach helps in identifying and resolving issues early on and ensures stakeholders are kept informed of the project’s progress. It also helps in building a strong relationship with the stakeholders and ensuring their expectations are managed. Since the work for this project takes a hybrid development approach to software development, we can assume that complete requirements gathering is not likely to be possible. In software development, requirements can change throughout the project and the project team needs to be flexible to accommodate these changes. Assigning a dedicated team for requirements gathering is a good approach; however, it might not always be feasible due to budget and resource constraints. Holding stakeholders accountable for incomplete requirements might create a negative impact on the project team’s relationship with the stakeholders. This approach may lead to a breakdown in communication and damage the project team’s reputation. 41 / 50 A project is undergoing major restructuring, which includes recruiting a new project manager. Halfway through the restructuring, the project sponsor has approved the assessment report and confirmed the short-term actions and scope of changes required to address the many project issues. What should the new project manager do next? Update the project organization chart, risks, communications, and stakeholder engagement plans. Present the details of the project assessment report and key action items to the project team and stakeholders to ensure their support. Do nothing, because the team members were part of the project assessment report and should be aware of the upcoming changes. Wait for the project sponsor to decide how to communicate the actions and project key changes. Although the key stakeholders were part of the project assessment, the project manager should present the report details and the project priorities established by the project sponsor. This way the stakeholders will understand the reasons for the changes to be made and the project manager can get their support for the implementation. 42 / 50 A project stakeholder thinks they are being helpful by sharing a lot of negative customer feedback emails. This feedback is often difficult to understand and written in raw, verbatim form or without any context. After 2 weeks of receiving these emails almost every day, one project team member is frustrated and becomes angry and vocal at work. Which three actions should the project team take? (Choose 3) The project team should tell the stakeholder to stop sharing this kind of feedback. At the next retrospective, the project team should discuss and circulate guidelines for receiving and processing customer feedback. The project team member should be referred to human resources (HR) for stress management. The project team should communicate any frustration with the product owner, who can coach the stakeholder towards a better solution. The project team should process any relevant team lessons or improvement opportunities. Conflict or disruption is a normal part of an agile team environment; frustration in this context can be understood and processed with empathy. Neither the project team member, nor the customers, nor the stakeholder did anything wrong. Feedback can come from any stakeholder or source and can take many forms. The project team only has some control over how they receive it and what they do with it. However, the product owner may be able to play the role of intermediary and speak to the stakeholder about how to deliver this feedback in a more useful way. The team member’s concern should be discussed at the next retrospective, where the project team can also discuss and circulate guidelines for stakeholder feedback so that it is useful for product and team development. Using the incident as a learning opportunity to improve the project team environment is also a good answer. 43 / 50 A project team has deprioritized capturing lessons learned for two sprints now and just continues working. What should the project manager do first? Remind the project team about the importance of lessons learned. Engage the project team to understand the reasons lessons learned were deprioritized. Ensure lessons learned are discussed at the next iteration retrospective. Update the next iteration retrospective agenda to add a review of the team charter and ground rules. It is great the project team wants to keep working—it shows they have a good work ethic and dedication. As a project professional, one of your roles as a steward is to ensure the continuous learning and improvement (CI) of the team. In this case, you need to be the advocate for CI. As with any issue, we should analyze first, then take action. Reminders are not strong enough in most cases for meaningful action to take place. Adding or increasing visibility of actions—as ensuing lessons learned, or a review of the team chart and ground rules is on the agenda—is a worthwhile response. However, these actions are not as active as taking steps to find the root cause and resolve the issue—if only to gather information to analyze. 44 / 50 A project team is moving a large sculpture from one part of a city to another. Since this is the first time the team has performed this kind of work, hazard specialists were contracted to oversee risk and compliance planning and advise the project team during the project. Which three actions should the project manager take to lead this combined team successfully? (Choose 3) Create a detailed roles chart with clear reporting guidelines. Create ground rules for the specialists. Hold separate retrospectives with the internal project team. Provide specialists with access to organizational resources. Hold daily standup meetings. The contract with the hazard specialists should be sufficient to ensure a good, collaborative working relationship with the project team. Provided the specialists are given all the internal information they need and there is a collaborative way of working, the project work should proceed smoothly. The project team and the specialists should be working with one another, not in parallel. The project team, not just one person, should understand the risk factors that will affect the project and its compliance as much as possible. 45 / 50 An agile coach is facilitating a discussion about servant leadership in the retrospective. During the session, the team members ask many questions. Which one of these questions will the agile coach answer with “yes”? Should servant leaders prioritize strategic thinking instead of daily work? Can anyone be a servant leader? Are there fixed guidelines for being a servant leader? Will my performance as a servant leader be assessed? The role and title of project manager or team lead can vary by project and organization. In general terms, the profession has embraced self-organizing teams and adaptability as core tenets, and the project manager or team lead is no longer the sole person responsible for and focused on delivering results. Instead, we focus on servant leadership, which is the practice of leading the team by focusing on understanding and addressing the needs and development of team members in order to enable the highest possible team performance. A person taking on this role should balance strategic thinking with daily project work. Understanding that learning is continuous also plays a part in self-organization, so we think of tenets rather than fixed guidelines for leadership characteristics. One such tenet of servant leadership is to understand the vision of the project, not just the daily issues; the servant leader should figure out how to create a balance between daily and strategic work in the context of a project and team. Therefore, the only question in this list to be answered with “yes” is: Can anyone be a servant leader? 46 / 50 A company that manufactures and sells plastic containers is working on their latest product catalog. To comply with European laws, the photographs in the children’s products sections should not consist of more than 20% images of candy and processed foods and should consist of at least 80% images of fruits and vegetables. As the project team reviews the photographs before the final printing, they identify one photograph that clearly does not comply with the law. Which activity was the project team performing during the catalog review and which activities should they perform in the future to avoid this issue from repeating? Gathering and discovery; audits Decision-making and voting; testing Data Problem-solving and troubleshooting; inspection Inspection and auditing; quality improvement methods Inspection is a quality control technique used in the Control Quality process to verify that products or deliverables conform or comply with specific quality standards, specifications, or other criteria. This happened during the catalog review. To avoid this issue from being repeated, the project team should perform quality improvement methods in the future. This may include updating their review and approval processes to ensure compliance with regulatory requirements and implementing training programs for designers and photographers to understand the compliance requirements. Decision-making and problem-solving are parts of quality management and should occur before implementation and during monitoring and controlling. Data analysis does not apply in the act of examining a photograph. Audits check compliance with standards, policies, and procedures and can be used in the future. Testing is similar to inspection and also used in the Control Quality process—in this case, the catalog review. 47 / 50 Tragedy strikes on a project to restore a bus terminal and modernize the service. An unexpected natural disaster has damaged the site and surrounding city. The project team, watching from a safe location 250 kilometers away, is in emergency response mode. What should the project team do next? Use the contingency budget. Activate the management reserve. Update the risk register. Engage stakeholders to develop a risk response. This risk, once it occurs, is no longer a risk—it is an issue that requires action. So neither updating the risk register nor developing a response is going to help now. The project team’s job is to determine what action to take. This situation was unexpected and was neither planned nor budgeted for in the contingency budget. The contingency budget is used for addressing expected problems. When an unexpected problem arises and needs to be dealt with, the project team should activate the management reserve to fund an emergency response. 48 / 50 A project to upgrade a company’s human resources (HR) application is being planned. Since the work is a custom-designed application, the project team wants to use an agile approach. The product owner selects a go-live date which the project team believes is unreasonable without overtime work. What should the project team do? Assess how they can motivate themselves to perform the extra work to meet project goals. Agree to the go-live date but insist that management allow exception-based team rewards in return. Collaborate with the product owner to decide on a go-live date based on realistic estimates and available resources. Seek approval for an increase to the project cost baseline that will include budget for estimated overtime work. An agile approach to managing projects is driven by the 12 principles of the Agile Manifesto, one of which is: Agile processes promote sustainable development. The project sponsors, developers, and users should be able to maintain a constant pace throughout the project. Sustainable development involves the use of ideal time, factoring planned leaves, and avoiding overtime or holiday working. Additionally, in this context, the project team lead or facilitator should ensure that the go-live dates are not arbitrary but based on achievable targets. Overtime should only be used as a contingency in the case of an emergency. It is not appropriate to motivate team members to work extra hours to meet project goals unless it is an exception. Team rewards should not be linked to working overtime or dealing with unreasonable timelines. Increasing the project cost baseline is not the appropriate way to deal with team members working overtime. 49 / 50 A project team is reviewing a budget early in a project and is surprised at the great cost variances. At the next retrospective, the team focuses on the budget problem and determines the current funding will be insufficient because all vendors have significantly increased their prices. What should the project team do next? Activate and spend the contingency amount in the overall budget. Approach management for the release of management reserves. Determine estimate at completion (EAC) and seek approval. Issue a new request for proposal (RFP) that includes a cost limitation. Increasing costs of products and services directly affects projects, so project teams need to adapt. An increase across all vendor services is probably a sign of a big change in the external business environment. Issuing a new request for proposal (RFP) with a cost limitation will not likely be successful because every vendor is affected. The solution here is to understand what is causing the price increases and seek a solution for the project that is sustainable. The project team might then choose to create a revised budget with the new costs of vendor services and goods, namely the estimate at completion (EAC) which will tell them the expected total cost of completing all work expressed as the sum of the actual cost (AC) to date and the estimate to complete (ETC). The product owner or project sponsor will decide whether the organization can or wants to continue supporting the project. Because it is early in the project, this is the most sustainable solution for the long-term health of the project. Management reserves and the contingency budget should be used for covering expenses resulting from issues, not to support a project budget that has been impacted because of external environmental factors. 50 / 50 An agile project team is using scrum methods. A previously unidentified risk has occurred and threatens the current release. What should the scrum master do? Stop project work until the risk is assessed and analyzed Bring the issue up during the next standup meeting Engage the team to facilitate a workaround. Collaborate with stakeholders and the project team to develop a risk response. This risk, once it occurs, is no longer a risk—it is an issue that requires action. In an agile environment, the team lead, in this case a scrum master, facilitates the self-organizing team to take action and find a solution. The team should discuss the issue during the next standup meeting for awareness, but this is only the first step in problem solving. Since this issue is both from an unidentified risk and poses a serious threat, it requires action first. Your score is 0% For more sample papers, refer the links below: CAPM SAMPLE EXAM 1 CAPM SAMPLE EXAM 2 PMP Self-Certification PMP Sample 1 PMP Sample 2 PMP Sample 3 PMP Sample 4 PMP Sample 5