A technician is scheduled to install internet service at the homes of three remote call center agents who have different working schedules. Their functional managers arranged time off to allow time for installation and testing. The carrier sends an email to the project manager stating that one appointment is delayed for 2 days.
What does the project manager need to do now?
Correct Answer:
C
According to the PMBOK® Guide, project communication management involves the processes of planning, managing, and monitoring project communications. The project manager is responsible for ensuring that the communication needs of the project stakeholders are met and that the information is timely, clear, and consistent. One of the tools and techniques for managing communications is communication methods, which include interactive, push, and pull communication. The project manager should inform the relevant stakeholders about the delay in the installation of the internet service, using the appropriate communication method for each stakeholder group. The relevant stakeholders include the call center agents, their functional managers, the carrier, and any other parties that are affected byor interested in the project. Informing the relevant stakeholders will help the project manager to manage their expectations, avoid confusion or conflict, and maintain good relationships. References:
✑ PMBOK® Guide, Sixth Edition, Chapter 10: Project Communication Management,
pp. 361-395.
✑ PMP Exam Prep Coursebook, Chapter 10: Project Communication Management, pp. 10-1 - 10-14.
A project manager is preparing the business case for a project in a not for profit organization. The project manager justifies the cost of the project to a group of sponsors.
Which benefits realization metric should the project manager use?
Correct Answer:
D
According to the PMBOK® Guide, return of investment (ROI) is a financial analysis technique that calculates the ratio of the net benefits to the total costs of a project or an investment. ROI helps to evaluate the profitability and feasibility of a project or an investment by comparing the expected benefits with the required costs. A higher ROI indicates that the project is more profitable and worth pursuing, while a lower ROI indicates that the project is less profitable and should be rejected. ROI can also be used to compare different project options and select the one that has the highest ROI, as it represents the most value for the organization.
In this question, the project manager is preparing the business case for a project in a not for profit organization. The project manager justifies the cost of the project to a group of sponsors. The business case is a document that describes the rationale and justification for initiating a project or an investment, and how it aligns with the organizational strategy, objectives, and values. The business case also includes the expected benefits and costs of the project or the investment, and the analysis and evaluation of the alternatives and options. The business case helps the project manager and the sponsors to make informed decisions about the project initiation and selection.
To justify the cost of the project, the project manager should use ROI as a benefits realization metric. Benefits realization is the process of identifying, planning, managing, and measuring the benefits and value that a project or an investment delivers to the organization and the stakeholders. Benefits realization metrics are tools and techniques that help to quantify and evaluate the benefits and value of a project or an investment, and to compare them with the baseline values. ROI is a common and widely used benefits realization metric, as it helps to demonstrate the financial value and impact of a project or an investment, and to justify its cost and feasibility. ROI can be calculated as follows:
ROI = (Net Benefits / Total Costs) x 100% Net Benefits = Total Benefits - Total Costs Total Benefits = The sum of all the monetary and non-monetary benefits that the project or the investment will generate over its life cycle.
Total Costs = The sum of all the monetary and non-monetary costs that the project or the investment will incur over its life cycle.
The project manager should estimate the total benefits and costs of the project, and calculate the net benefits and the ROI. The project manager should also compare the ROI of the project with the ROI of the other alternatives or options, and select the one that has the highest ROI. The project manager should present the ROI of the project to the sponsors, and explain how it reflects the value and benefit of the project, and how it outweighs the cost of the project.
The other options are not correct because they do not provide a valid benefits realization metric to justify the cost of the project. Option A is wrong because it refers to the total value of ownership, which is a concept that considers the total costs and benefits of owning and using a product, service, or asset over its life cycle. It is not a benefits realization metric, but rather a way of estimating the total benefits and costs of a project or an investment. Option B is wrong because it refers to the budget at completion (BAC), which is the total amount of money that is planned to be spent on a project or a work breakdown structure component. It is not a benefits realization metric, but rather a cost baseline value that is used to measure and control the project cost performance. Option C is wrong because it refers to the payback period, which is a financial analysis technique that calculates the time required to recover the initial investment of a project or an investment. It is not a sufficient benefits realization metric, as it does not consider the benefits and costs after the payback period, the time value of money, or the profitability of the project or the investment. References:
✑ PMBOK® Guide, 6th edition, pages 33-34, 333-334, 440-441
✑ Return on Investment (ROI) - Project Management Knowledge
✑ Return on Investment (ROI) - Project Management Institute
✑ Benefits Realization Management: A Practice Guide | PMI
✑ Benefits Realization Management - ProjectEngineer
A project manager has commissioned a design study from a consulting firm to investigate a number of alternatives. The project managerhas a strict policy on the cost of the study and has established a number of cost triggers and trend analyses.
Which tool is the project manager using?
Correct Answer:
C
This answer is based on the knowledge area of project cost management, which involves planning, estimating, budgeting, managing, and controlling the project costs. Earned value (EV) is a tool that measures the actual work completed and the value of that work, compared to the planned work and the budget. By using EV, the project manager canmonitor the project performance and progress, and identify any variances or deviations from the baseline. The project manager can also use cost triggers and trend analyses to detect and respond to any potential issues or risks that may affect the project
cost. References: (Project Management Professional (PMP) Reference Materials source and documents)
✑ A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Seventh Edition, Chapter 7: Planning and Managing the Budget, Section 7.3: Managing the Budget, page 173.
✑ The Standard for Project Management, Part 2: Value Delivery System, Section 2.3: Project Monitoring and Controlling, page 53.
During a project status update by the project management office (PMO), the CEO is concerned that the status of all projects suddenly changed from green to red, without warning. Upper management is used
to reading traditional reports related to progress and cost, and they want to continue viewing this information.
How should the PMO implement a better way to report the project's health?
Correct Answer:
B
The PMO should implement a better way to report the project’s health by using earned value management (EVM) techniques that can integrate the traditional and agile approaches. EVM can provide objective and quantitative measures of project performance, such as schedule variance (SV), cost variance (CV), schedule performance index (SPI), and cost performance index (CPI). These metrics can help the PMO and upper management to monitor the project progress and cost, as well as to forecast the project completion time and budget. EVM can also be adapted to agile projects by using agile progress as an input, such as story points, backlog items, or iterations. This way, the PMO can report the project’s health in a consistent and transparent manner that aligns with the expectations of upper management. References: PMBOK Guide, 6th edition, pages 261- 262, Top 60+ PMP Exam Questions and Answers for 2023 - KnowledgeHut
A project manager for an IT company starts a project with members distributed across five different countries and four different time zones. In the first meetings with the sponsor and some stakeholders, theproject manager notices that people do not join the meetings on time, have internet connection issues, or experience language barriers during some conversations.
What should the project manager do to improve communication among the team?
Correct Answer:
A
Another possible answer to this question is D. Arranging for some initial face-
to-face team meetings for the project team to meet each other can also help improve communication among the team. Face-to-face meetings can help build trust, rapport, and cohesion among team members, as well as foster a shared understanding of the project goals, roles, and responsibilities23. Face-to-face meetings can also help overcome language and cultural barriers, by allowing team members to observe non-verbal cues, clarify misunderstandings, and learn from each other23.
The other two options, B and C, may not be the best answers to this question. Explaining the benefits of common working hours to aid better communication among the project team may not be feasible or effective, as it may impose unrealistic or unfair expectations on some team members, who may have to work outside their normal hours or sacrifice their personal or family time23. Sharing a contact log document for all the team members to make communication easier may not be sufficient or helpful, as it may not address the underlying issues of communication, such as the quality, frequency, or content of the communication12.
Therefore, based on the web search results, the most likely answer to the question is either A or D, but you will have to verify the answer yourself using the official sources. References: 1: A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition 2: Managing distributed project teams - Project Management Institute 3: Cross culture project management - Project Management Institute
