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"9. Answer: D.
PMBOK® Guide, pages 12-13, Sections 1.5 and 1.5.1

Relationship Between Project Management, Operations Management, and Organizational Strategy
Operations management is responsible for overseeing, directing, and controlling business operations. Operations evolve to support the day-to-day business, and are necessary to achieve strategic and tactical goals of the business. Examples include: production operations, manufacturing operations, accounting operations, software support, and maintenance.
"Though temporary in nature, projects can help achieve the organizational goals when they are aligned with the organization's strategy. Organizations sometimes change their operations, products, or systems by creating strategic business initiatives that are developed and implemented through projects. Projects require project management activities and skill sets, while operations require business process management, operations management activities, and skill sets.
Operations and Project Management
Changes in business operations may be the focus of a dedicated project—especially if there are substantial changes to business operations as a result of a new product or service delivery. Ongoing operations are outside of the scope of a project; however, there are intersecting points where the two areas cross.
Projects can intersect with operations at various points during the product life cycle, such as:
• At each closeout phase;
• When developing a new product, upgrading a product, or expanding outputs;
• While improving operations or the product development process; or"

"At each point, deliverables and knowledge are transferred between the project and operations for implementation of the delivered work. This implementation occurs through a transfer of project resources to operations toward the end of the project, or through a transfer of operational resources to the project at the start.
Operations are ongoing endeavors that produce repetitive outputs, with resources assigned to do basically the same set of tasks according to the standards institutionalized in a product life cycle. Unlike the ongoing nature of operations, projects are temporary endeavors."

Excerpt From: Project Management Institute. "Q & As for the PMBOK Guide - Fifth Edition." iBooks.
11. Answer: B.
PMBOK® Guide, page 17, Section 1.71
Responsibilities and Competencies of the Project Manager
In general, project managers have the responsibility to satisfy the needs: task needs, team needs, and individual needs. As project management is a critical strategic discipline, the project manager becomes the link between the strategy and the team. Projects are essential to the growth and survival of organizations. Projects create value in the form of improved business processes, are indispensable in the development of new products and services, and make it easier for companies to respond to changes in the environment, competition, and the marketplace. The project manager's role therefore becomes increasingly strategic. However, understanding and applying the knowledge, tools, and techniques that are recognized as good practice are not sufficient for effective project management. In addition to any area-specific skills and general management proficiencies required for the project, effective project management requires that the project manager possess the following competencies:
• Knowledge—Refers to what the project manager knows about[...]""ive project management requires that the project manager possess the following competencies:
• Knowledge—Refers to what the project manager knows about project management.
• Performance—Refers to what the project manager is able to do or accomplish while applying his or her project management knowledge.
• Personal—Refers to how the project manager behaves when performing the project or related activity. Personal effectiveness encompasses attitudes, core personality characteristics, and leadership, which provides the ability to guide the project team while achieving project objectives and balancing the project constraints.
"21. Answer: D.
PMBOK® Guide, page 29, Section 2.1.5
Enterprise Environmental Factors
Enterprise environmental factors refer to conditions, not under the control of the project team, that influence, constrain, or direct the project. Enterprise environmental factors are considered inputs to most planning processes, may enhance or constrain project management options, and may have a positive or negative influence on the outcome.
Enterprise environmental factors vary widely in type or nature. Enterprise environmental factors include, but are not limited to:
• Organizational culture, structure, and governance;
• Geographic distribution of facilities and resources;
• Government or industry standards (e.g., regulatory agency regulations, codes of conduct, product standards, quality standards, and workmanship standards);
• Infrastructure (e.g., existing facilities and capital equipment);
• Existing human resources (e.g., skills, disciplines, and knowledge, such as design, development, legal, contracting, and purchasing);
• Personnel administration (e.g., staffing and retention guidelines, employee performance reviews and training records, reward and overtime policy, and time tracking);
• Company work authorization systems;
• Marketplace conditions;
• Stakeholder risk tolerances;
• Political climate;
• Organization's established communications channels;
• Commercial databases (e.g., standardized cost estimating data, industry risk study information, and risk databases); and
• Project management information system (e.g., an automated tool, such as a scheduling software tool, a configuration management system"ecords, reward and overtime policy, and time tracking);
• Company work authorization systems;
• Marketplace conditions;
• Stakeholder risk tolerances;
• Political climate;
• Organization's established communications channels;
• Commercial databases (e.g., standardized cost estimating data, industry risk study information, and risk databases); and
• Project management information system (e.g., an automated tool, such as a scheduling software tool, a configuration management system, an information collection and distribution system, or web interfaces to other online automated systems).
28. Answer: B.
PMBOK® Guide, pages 44-46, Section 2.4.2.2, Figure 2-13, Section 2.4.2.3, and Section 2.4.2.4
Predictive Life Cycles
Predictive life cycles (also known as fully plan-driven) are ones in which the project scope, and the time and cost required to deliver that scope, are determined as early in the project life cycle as practically possible. As shown in Figure 2-13, these projects proceed through a series of sequential or overlapping phases, with each phase generally focusing on a subset of project activities and project management processes. The work performed in each phase is usually different in nature to that in the preceding and subsequent phases, therefore, the makeup and skills required of the project team may vary from phase to phase.

Iterative and Incremental Life Cycles
Iterative and incremental life cycles are ones in which project phases (also called iterations) intentionally repeat one or more project activities as the project team's understanding of the product increases. Iterations develop the product through a series of repeated cycles, while increments successively add to the functionality of the product "to the functionality of the product. These life cycles develop the product both iteratively and incrementally.

Adaptive Life Cycles
Adaptive life cycles (also known as change-driven or agile methods) are intended to respond to high levels of change and ongoing stakeholder involvement. Adaptive methods are also iterative and incremental, but differ in that iterations are very rapid (usually with a duration of 2 to 4 weeks) and are fixed in time and cost. Adaptive projects generally perform several processes in each iteration, although early iterations may concentrate more on planning activities"
"42. Answer: C.
PMBOK® Guide, pages 66-68, Section 4.1
Develop Project Charter
Develop Project Charter is the process of developing a document that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities. The key benefit of this process is a well-defined project start and project boundaries, creation of a formal record of the project, and a direct way for senior management to formally accept and commit to the project...

The project charter establishes a partnership between the performing and requesting organizations. In the case of external projects, a formal contract is typically the preferred way to establish an agreement. In this case, the project team becomes the seller responding to conditions of an offer to buy from an outside entity. A project charter is still used to establish internal agreements within an organization to assure proper delivery under the contract. The approved project charter formally initiates the project. A project manager is identified and assigned as early in the project as is fea"
roject Management Information System
The project management information system, which is part of the environmental factors, provides access to tools, such as a scheduling tool, a work authorization system, a configuration management system, an information collection and distribution system, or interfaces to other online automated systems. Automated gathering and reporting on key performance indicators (KPI) can be part of this system.
Excerpt From: Project Management Institute. "Q & As for the PMBOK Guide - Fifth Edition." iBooks.
"52. Answer: C.
PMBOK® Guide, pages 110-112, Section 5.2
Collect Requirements
Collect Requirements is the process of determining, documenting, and managing stakeholder needs and requirements to meet project objectives. The key benefit of this process is that it provides the basis for defining and managing the project scope including product scope...

The project's success is directly influenced by active stakeholder involvement in the discovery and decomposition of needs into requirements and by the care taken in determining, documenting, and managing the requirements of the product, service, or result of the project. Requirements include conditions or capabilities that are to be met by the project or present in the product, service, or result to satisfy an agreement or other formally imposed specification. Requirements include the quantified and documented needs and expectations of the sponsor, customer, and other stakeholders. These requirements need to be elicited, analyzed, and recorded in enough detail to be included in the scope baseline and to be measured once project execution begins. Requirements become the foundation of the WBS. Cost, schedule, quality planning, and sometimes procurement are all based upon these requirements. The development of requirements begins with an analysis of the information contained in the "nd recorded in enough detail to be included in the scope baseline and to be measured once project execution begins. Requirements become the foundation of the WBS. Cost, schedule, quality planning, and sometimes procurement are all based upon these requirements. The development of requirements begins with an analysis of the information contained in the project charter (Section 4.1.3.1), the stakeholder register (Section 13.1.3.1), and the stakeholder management plan (Section 13.2.3.1).
72. Answer: C.
PMBOK® Guide, pages 157-158, Section 6.3.2.2
Dependency Determination
Dependencies may be characterized by the following attributes: mandatory or discretionary, internal or external, as described below. Dependency has four attributes, but two can be applicable at the same time in following ways: mandatory external dependencies, mandatory internal dependencies, discretionary external dependencies, or discretionary internal dependencies.
• Mandatory dependencies. Mandatory dependencies are those that are legally or contractually required or inherent in the nature of the work. Mandatory dependencies often involve physical limitations, such as on a construction project, where it is impossible to erect the superstructure until after the foundation has been built, or on an electronics project, where a prototype has to be built before it can be tested. Mandatory dependencies are also sometimes referred to as hard logic or hard dependencies. Technical dependencies may not be mandatory. The project team "ings. Fast tracking may result in rework and increased risk. Fast tracking only works if activities can be overlapped to shorten the project duration.
72. Answer: C.
PMBOK® Guide, pages 157-158, Section 6.3.2.2
Dependency Determination
Dependencies may be characterized by the following attributes: mandatory or discretionary, internal or external, as described below. Dependency has four attributes, but two can be applicable at the same time in following ways: mandatory external dependencies, mandatory internal dependencies, discretionary external dependencies, or discretionary internal dependencies.
• Mandatory dependencies. Mandatory dependencies are those that are legally or contractually required or inherent in the nature of the work. Mandatory dependencies often involve physical limitations, such as on a construction project, where it is impossible to erect the superstructure until after the foundation has been built, or on an electronics project, where a prototype has to be built before it can be tested. Mandatory dependencies are also sometimes referred to as hard logic or hard dependencies. Technical dependencies may not be mandatory. The project team
"determines which dependencies are mandatory during the process of sequencing the activities. Mandatory dependencies should not be confused with assigning schedule constraints in the scheduling tool.
• Discretionary dependencies. Discretionary dependencies are sometimes referred to as preferred logic, preferential logic, or soft logic. Discretionary dependencies are established based on knowledge of best practices within a particular application area or some unusual aspect of the project where a specific sequence is desired, even though there may be other acceptable sequences. Discretionary dependencies should be fully documented since they can create arbitrary total float values and can limit later scheduling options. When fast tracking techniques are employed, these discretionary dependencies should be reviewed and considered for modification or removal. The project team determines which dependencies are discretionary during the process of sequencing the activities.
...
76. Answer: B.
PMBOK® Guide, pages 176-177, Section 6.6.2.2
Critical Path Method
The critical path method, which is a method used to estimate the minimum project duration and determine the amount of scheduling flexibility on the logical network paths within the schedule model. This schedule network analysis technique calculates the early start, early finish, late start, and late finish dates for all activities without regard for any resource limitations by performing a forward and backward pass analysis through the schedule network, as shown in Figure 6-18. In this example the longest path includes activities A, C, and D, and, therefore, the sequence of A-C-D is the critical path. The critical path is the sequence of activities that represents the longest path through a project, which determines the shortest possible "mines the shortest possible project duration. The resulting early and late start and finish dates are not necessarily the project schedule, rather they indicate the time periods within which the activity could be executed, using the parameters entered in the schedule model for activity durations, logical relationships, leads, lags, and other known constraints. The critical path method is used to calculate the amount of scheduling flexibility on the logical network paths within the schedule model.

On any network path, the schedule flexibility is measured by the amount of time that a schedule activity can be delayed or extended from its early start date without delaying the project finish date or violating a schedule constraint, and is termed "total float." A CPM critical path is normally characterized by zero total float on the critical path. As implemented with PDM sequencing, critical paths may have positive, zero, or negative total float depending on constraints applied...
77. Answer: C.

Resource Optimization Techniques
Examples of resource optimization techniques that can be used to adjust the schedule model due to demand and supply of resources include, but are not limited to "used to adjust the schedule model due to demand and supply of resources include, but are not limited to:
• Resource leveling. A technique in which start and finish dates are adjusted based on resource constraints with the goal of balancing demand for resources with the available supply. Resource leveling can be used when shared or critically required resources are only available at certain times, or in limited quantities, or over-allocated, such as when a resource has been assigned to two or more activities during the same time period, as shown in Figure 6-20, or to keep resource usage at a constant level. Resource leveling can often cause the original critical path to change, usually to increase.
• Resource smoothing. A technique that adjusts the activities of a schedule model such that the requirements for resources on the project do not exceed certain predefined resource limits. In resource smoothing, as opposed to resource leveling, the project's critical path is not changed and the completion date may not be delayed. In other words, activities may only be delayed within their free and total float. Thus resource smoothing may not be able to optimize all resources.
Resource Optimization Techniques
Described in "used to adjust the schedule model due to demand and supply of resources include, but are not limited to:
• Resource leveling. A technique in which start and finish dates are adjusted based on resource constraints with the goal of balancing demand for resources with the available supply. Resource leveling can be used when shared or critically required resources are only available at certain times, or in limited quantities, or over-allocated, such as when a resource has been assigned to two or more activities during the same time period, as shown in Figure 6-20, or to keep resource usage at a constant level. Resource leveling can often cause the original critical path to change, usually to increase.
• Resource smoothing. A technique that adjusts the activities of a schedule model such that the requirements for resources on the project do not exceed certain predefined resource limits. In resource smoothing, as opposed to resource leveling, the project's critical path is not changed and the completion date may not be delayed. In other words, activities may only be delayed within their free and total float. Thus resource smoothing may not be able to optimize all resources.
Resource Optimization Techniques
Described in "niques involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time.


"
88. Answer: A.
PMBOK® Guide, pages 176-177, Section 6.6.2.2 and Figure 6-18
Critical Path Method
The critical path method, which is a method used to estimate the minimum project duration and determine the amount of scheduling flexibility on the logical network paths within the schedule model. This schedule network analysis technique calculates the early start, early finish, late start, and late finish dates for all activities without regard for any resource limitations by performing a forward and backw"schedule model. This schedule network analysis technique calculates the early start, early finish, late start, and late finish dates for all activities without regard for any resource limitations by performing a forward and backward pass analysis through the schedule network, as shown in Figure 6-18. In this example the longest path includes activities A, C, and D, and, therefore, the sequence of A-C-D is the critical path. The critical path is the sequence of activities that represents the longest path through a project, which determines the shortest possible project duration...

On any network path, the schedule flexibility is measured by the amount of time that a schedule activity can be delayed or extended from its early start date without delaying the project finish date or violating a schedule constraint, and is termed "total float." A CPM critical path is normally characterized by zero total float on the critical path. As implemented with PDM sequencing, critical paths may have positive, zero, or negative total float depending on constraints applied. Any activity on the critical path is called a critical path activity. Positive total float is caused when the backward pass is calculated from a schedule constraint that[...]"duration and logic. Schedule networks may have multiple near-critical paths. Many software packages allow the user to define the parameters used to determine the critical path(s). Adjustments to activity durations (if more resources or less scope can be arranged), logical relationships (if the relationships were discretionary to begin with), leads and lags, or other schedule constraints may be necessary to produce network paths with a zero or positive total float. Once the total float for a network path has been calculated, then the free float—the amount of time that a schedule activity can be delayed without delaying the early start date of any successor or violating a schedule constraint—can also be determined. For example the free float for Activity B, in Figure 6-18, is 5 days.




.
"92. Answer: B.
PMBOK® Guide, pages 176-177, Section 6.6.2.2 and Figure 6-18
Critical Path Method
...
On any network path, the schedule flexibility is measured by the amount of time that a schedule activity can be delayed or extended from its early start date without delaying the project finish date or violating a schedule constraint, and is termed "total float." A CPM critical path is normally characterized by zero total float on the critical path. As implemented with PDM sequencing, critical paths may have positive, zero, or negative total float depending on constraints applied. Any activity on the critical path is called a critical path activity. Positive total float is caused when the backward pass is calculated from a schedule constraint that is later than the early finish date that has been calculated during forward pass calculation. Negative total float is caused when a constraint on the late dates is violated by duration and logic. Schedule networks may have multiple "
"near-critical paths. Many software packages allow the user to define the parameters used to determine the critical path(s). Adjustments to activity durations (if more resources or less scope can be arranged), logical relationships (if the relationships were discretionary to begin with), leads and lags, or other schedule constraints may be necessary to produce network paths with a zero or positive total float. Once the total float for a network path has been calculated, then the free float—the amount of time that a schedule activity can be delayed without delaying the early start date of any successor or violating a schedule constraint—can also be determined. For example the free float for Activity B, in Figure 6-18, is 5 days."
95. Answer: C.
PMBOK® Guide, pages 200-202, Section 7.2; and page 203, Section 7.2.1.5
Estimate Costs
Estimate Costs is the process of developing an approximation of the monetary resources needed to complete project activities. The key benefit of this process is that it determines the amount of cost required to complete project work...

Cost estimates are generally expressed in units of some currency (i.e., dollars, euros, yen, etc.), although in some instances other units of measure, such as staff hours or staff days, are used to facilitate comparisons by eliminating the effects of currency fluctuations...

Costs are estimated for all resources that will be charged to the project. This includes, but is not limited to, labor, materials, equipment, services, and facilities, as well as special categories such as an inflation allowance, cost of financing, or contingency costs. A cost estimate is a quantitative assessment of the likely costs for resources required to complete the "the project. This includes, but is not limited to, labor, materials, equipment, services, and facilities, as well as special categories such as an inflation allowance, cost of financing, or contingency costs. A cost estimate is a quantitative assessment of the likely costs for resources required to complete the activity. Cost estimates may be presented at the activity level or in summary form.

Risk Register
Described in Section 11.2.3.1. The risk register should be reviewed to consider risk response costs. Risks, which can be either threats or opportunities, typically have an impact on both activity and overall project costs. As a general rule, when the project experiences a negative risk event, the near-term cost of the project will usually increase, and there will sometimes be a delay in the project schedule. In a similar way, the project team should be sensitive to potential opportunities that can benefit the business either by directly reducing activity costs or by accelerating the schedule.
102. Answer: B.
PMBOK® Guide, page 219, Section 7.4.2.1 and Figure 7-12
Earned Value Management
...
• Schedule performance index. The schedule performance index (SPI) is a measure of schedule efficiency expressed as the ratio of earned value to planned value. It measures how efficiently the project team is using its time. It is sometimes used in conjunction with the cost performance index (CPI) to forecast the final project completion estimates. An SPI value less than 1.0 indicates less work was completed than was planned. An SPI greater than 1.0 indicates that more work was completed than was planned. Since the SPI measures all project work, the performance on the critical path also needs to be analyzed to determine whether the project will finish ahead of or behind its planned finish date. The SPI is equal to the ratio of the EV to the PV. Equation: SPI = EV/PV
• Cost performance index. The cost performance index "
"(CPI) is a measure of the cost efficiency of budgeted resources, expressed as a ratio of earned value to actual cost. It is considered the most critical EVM metric and measures the cost efficiency for the work completed. A CPI value of less than 1.0 indicates a cost overrun for work completed. A CPI value greater than 1.0 indicates a cost underrun of performance to date. The CPI is equal to the ratio of the EV to the AC. The indices are useful for determining project status and providing a basis for estimating project cost and schedule outcome. Equation: CPI = EV/AC
The three parameters of planned value, earned value, and actual cost can be monitored and reported on both a period-by-period basis (typically weekly or monthly) and on a cumulative basis. Figure 7-12 uses S-curves to display EV data for a project that is performing over budget and behind the schedule.
104. Answer: A.
PMBOK® Guide, page 220, Section 7.4.2.2
Forecasting
...
The project manager's manual EAC is quickly compared with a range of calculated EACs representing various risk scenarios. When calculating EAC values, the cumulative CPI and SPI values are typically used. While EVM data quickly provi" EAC forecast for ETC work performed at the present CPI. This method assumes what the project has experienced to date can be expected to continue in the future. The ETC work is assumed to be performed at the same cumulative cost performance index (CPI) as that incurred by the project to date. Equation: EAC = BAC/CPI
105. Answer: D.
PMBOK® Guide, page 221, Section 7.4.2.2
Forecasting
...
The project manager's manual EAC is quickly compared with a range of calculated EACs representing various risk scenarios. When calculating EAC values, the cumulative CPI and SPI values are typically used. While EVM data quickly provide many statistical EACs, only three of the more common methods are described as follows:
...
• EAC forecast for ETC work considering both SPI and CPI factors. In this forecast, the ETC work will be performed at an efficiency rate that considers both the cost and schedule performance indices. This method is most useful when the project schedule is a factor impacting the ETC effort. Variations of this method weight the CPI and SPI at different values (e.g., 80/20, 50/50, or some other ratio) according to the project manager's judgment. Equation: EAC = AC + [(BAC - EV)/(CPI × SPI[...]"

Excerpt From: Project Management Institute. "Q & As for the PMBOK Guide - Fifth Edition." iBooks. de many statistical EACs, only three of the more common methods are described as follows:
..."
108. Answer: C.
PMBOK® Guide, page 221, Section 7.4.2.3; page 222, Figure 7-13; and page 224, Table 7-1
To-Complete Performance Index (TCPI)
The to-complete performance index (TCPI) is a measure"
"To-Complete Performance Index (TCPI)
The to-complete performance index (TCPI) is a measure of the cost performance that is required to be achieved with the remaining resources in order to meet a specified management goal, expressed as the ratio of the cost to finish the outstanding work to the remaining budget. TCPI is the calculated cost performance index that is achieved on the remaining work to meet a specified management goal, such as the BAC or the EAC. If it becomes obvious that the BAC is no longer viable, the project manager should consider the forecasted EAC. Once approved, the EAC may replace the BAC in the TCPI calculation. The equation for the TCPI based on the BAC: (BAC - EV)/(BAC - AC).

The TCPI is conceptually displayed in Figure 7-13. The equation for the TCPI is shown in the lower left as the work remaining (defined as the BAC minus the EV) divided by the funds remaining (which can be either the BAC minus the AC, or the EAC minus the AC).

If the cumulative CPI falls below the baseline (as shown in Figure 7-13), all future work of the project will need to be performed "erations, including risk, schedule, and technical performance. This level of performance is displayed as the TCPI (EAC) line. The equation for the TCPI based on the EAC: (BAC - EV)/(EAC - AC). The EVM formulas are provided in Table 7-1.

Equation: TCPI = (BAC - EV)/(BAC - AC)
"110. Answer: C.
PMBOK® Guide, pages 218-219, Section 7.4.2.1 and Figure 7-12
Earned Value Management
...
Variances from the approved baseline will also be monitored:
• Schedule variance. Schedule variance (SV) is a measure of schedule performance expressed as the difference between the earned value and the planned value. It is the amount by which the project is ahead or behind the planned delivery date, at a given point in time. It is a measure of schedule performance on a project. It is equal to the earned value (EV) minus the planned value (PV). The EVM schedule variance is a useful metric in that it can indicate when a project is falling behind or is ahead of its baseline schedule. The EVM schedule variance will ultimately equal zero when the project is completed because all of the planned values will have been earned. Schedule variance is best used in conjunction with critical "path methodology (CPM) scheduling and risk management. Equation: SV = EV - PV
...
The SV and CV values can be converted to efficiency indicators to reflect the cost and schedule performance of any project for comparison against all other projects or within a portfolio of projects. The variances are useful for determining project status.
• Schedule performance index. The schedule performance index (SPI) is a measure of schedule efficiency expressed as the ratio of earned value to planned value. It measures how efficiently the project team is using its time. It is sometimes used in conjunction with the cost performance index (CPI) to forecast the final project completion estimates. An SPI value less than 1.0 indicates less work was completed than was planned. An SPI greater than 1.0 indicates that more work was completed than was planned. Since the SPI measures all project work, the performance on the critical path also needs to be analyzed to determine whether the project will finish ahead of or behind its planned finish date. The SPI is equal to the ratio of the EV to the PV. Equation: SPI = EV/PV
..."

"The three parameters of planned value, earned value, and actual cost can be monitored and reported on both a period-by-period basis (typically weekly or monthly) and on a cumulative basis. Figure 7-12 uses S-curves to display EV data for a project that is performing over budget and behind the schedule."

Excerpt From: Project Management Institute. "Q & As for the PMBOK Guide - Fifth Edition." iBooks.
"111. Answer: A.
PMBOK® Guide, pages 218-219, Section 7.4.2.1 and Figure 7-12
Earned Value Management
...
Variances from the approved baseline will also be monitored:
...
• Cost variance. Cost variance (CV) is the amount of budget deficit or surplus at a given point in time, expressed as the difference between earned value and the actual cost. It is a measure of cost performance on a project. It is equal to the earned value (EV) minus the actual cost (AC). The cost variance at the end of the project will be the difference between the budget at completion (BAC) and the actual amount spent. The CV is particularly critical because it indicates the relationship of physical performance to the costs spent. Negative CV is often difficult for the project to recover. Equation: CV = EV - AC
The SV and CV values can be converted to efficiency indicators to reflect the cost and schedule performance of any project for comparison against all other projects or within a portfolio of projects. The variances are useful for determining project status.
...
• Cost performance index. The cost performance index (CPI) is a measure of the cost efficiency of budgeted resources, expressed as a ratio of earned "EV - AC
The SV and CV values can be converted to efficiency indicators to reflect the cost and schedule performance of any project for comparison against all other projects or within a portfolio of projects. The variances are useful for determining project status.
...
• Cost performance index. The cost performance index (CPI) is a measure of the cost efficiency of budgeted resources, expressed as a ratio of earned value to actual cost. It is considered the most critical EVM metric and measures the cost efficiency for the work completed. A CPI value of less than 1.0 indicates a cost overrun for work completed. A CPI value greater than 1.0 indicates a cost underrun of performance to date. The CPI is equal to the ratio of the EV to the AC. The indices are useful for determining project status and providing a basis for estimating project cost and schedule outcome. Equation: CPI = EV/AC
The three parameters of planned value, earned value, and actual cost can be monitored and reported on both a period-by-period basis (typically weekly or monthly) and on a cumulative basis. Figure 7-12 uses S-curves to display EV data for a project that is the schedule[...]"
113. Answer: D.
PMBOK® Guide, pages 218-219, Section 7.4.2.1 and Figure 7-12
Earned Value Management
...
Variances from the approved baseline will also be monitored:
• Schedule variance. Schedule variance (SV) is a me"
"• Schedule variance. Schedule variance (SV) is a measure of schedule performance expressed as the difference between the earned value and the planned value. It is the amount by which the project is ahead or behind the planned delivery date, at a given point in time. It is a measure of schedule performance on a project. It is equal to the earned value (EV) minus the planned value (PV). The EVM schedule variance is a useful metric in that it can indicate when a project is falling behind or is ahead of its baseline schedule. The EVM schedule variance will ultimately equal zero when the project is completed because all of the planned values will have been earned. Schedule variance is best used in conjunction with critical path methodology (CPM) scheduling and risk management. Equation: SV = EV - PV
• Cost variance. Cost variance (CV) is the amount of budget deficit or surplus at a given point in time, expressed as the difference between earned value and the actual cost. It is a measure of cost performance on a project. It is equal to the earned value (EV) minus the actual cost (AC). The cost variance at the end of the project[...]"

"often difficult for the project to recover. Equation: CV = EV - AC
The SV and CV values can be converted to efficiency indicators to reflect the cost and schedule performance of any project for comparison against all other projects or within a portfolio of projects. The variances are useful for determining project status.
• Schedule performance index. The schedule performance index (SPI) is a measure of schedule efficiency expressed as the ratio of earned value to planned value. It measures how efficiently the project team is using its time. It is sometimes used in conjunction with the cost performance index (CPI) to forecast the final project completion estimates. An SPI value less than 1.0 indicates less work was completed than was planned. An SPI greater than 1.0 indicates that more work was completed than was planned. Since the SPI measures all project work, the performance on the critical path also needs to be analyzed to determine whether the project will finish ahead of or behind its planned finish date. The SPI is equal to the ratio of the EV to the PV. Equation: SPI = EV/PV
• Cost performance index. The cost performance index (CPI) is a measure of the cost efficiency "resources, expressed as a ratio of earned value to actual cost. It is considered the most critical EVM metric and measures the cost efficiency for the work completed. A CPI value of less than 1.0 indicates a cost overrun for work completed. A CPI value greater than 1.0 indicates a cost underrun of performance to date. The CPI is equal to the ratio of the EV to the AC. The indices are useful for determining project status and providing a basis for estimating project cost and schedule outcome. Equation: CPI = EV/AC
The three parameters of planned value, earned value, and actual cost can be monitored and reported on both a period-by-period basis (typically weekly or monthly) and on a cumulative basis. Figure 7-12 uses S-curves to display EV data for a project that is performing over budget and behind the schedule.
"

Excerpt From: Project Management Institute. "Q & As for the PMBOK Guide - Fifth Edition." iBooks. [...]"

Excerpt From: Project Management Institute. "Q & As for the PMBOK Guide - Fifth Edition." iBooks.
Answer D
"Earned Value Management
...
Variances from the approved baseline will also be monitored:
...
• Cost variance. Cost variance (CV) is the amount of budget deficit or surplus at a given point in time, expressed as the difference between earned value and the actual cost. It is a measure of cost performance on a project. It is equal to the earned value (EV) minus the actual cost (AC). The cost variance at the end of the project will be the difference between the budget at completion (BAC) and the actual amount spent. The CV is particularly critical because it indicates the relationship of physical performance to the costs spent. Negative CV is often difficult for the project to recover. Equation: CV = EV - AC
The SV and CV values can be converted to efficiency indicators to reflect the cost and schedule performance of any project for comparison against all other projects or within a portfolio of projects. The variances are useful for determining project status.
...
• Cost performance index. The cost performance index (CPI) is a measure of the cost efficiency of budgeted "resources, expressed as a ratio of earned value to actual cost. It is considered the most critical EVM metric and measures the cost efficiency for the work completed. A CPI value of less than 1.0 indicates a cost overrun for work completed. A CPI value greater than 1.0 indicates a cost underrun of performance to date. The CPI is equal to the ratio of the EV to the AC. The indices are useful for determining project status and providing a basis for estimating project cost and schedule outcome. Equation: CPI = EV/AC
The three parameters of planned value, earned value, and actual cost can be monitored and reported on both a period-by-period basis (typically weekly or monthly) and on a cumulative basis. Figure 7-12 uses S-curves to display EV data for a project that is performing over budget and behind the schedule."
"132. Answer: C.
PMBOK® Guide, page 238, Section 8.1.2.3; page 239, Figures 8-7; and Glossary
• Control charts, are used to determine whether or not a process is stable or has predictable performance. Upper and lower specification limits are based on requirements of the agreement. They reflect the maximum and minimum values allowed. There may be penalties associated with exceeding the specification limits. Upper and lower control limits are different from specification limits. The control limits are determined using standard statistical calculations and principles to ultimately establish the natural capability for a stable process. The project manager and appropriate stakeholders may use the statistically calculated control limits to identify the points at which corrective action will be taken to prevent unnatural performance. The corrective action typically seeks to maintain the natural stability of a stable and capable process. For repetitive processes, the control limits are generally set at ±3 s around a process mean that has been set at 0 s. A process is considered out of control when: (1) a data point exceeds a control limit; (2) seven consecutive plot points are above the mean; or (3) seven consecutive plot points are below the mean.
Control charts can "generally set at ±3 s around a process mean that has been set at 0 s. A process is considered out of control when: (1) a data point exceeds a control limit; (2) seven consecutive plot points are above the mean; or (3) seven consecutive plot points are below the mean.
Control charts can be used to monitor various types of output variables. Although used most frequently to track repetitive activities required for producing manufactured lots, control charts may also be used to monitor cost and schedule variances, volume, and frequency of scope changes, or other management results to help determine if the project management processes are in control.
Control Chart. A graphic display of process data over time and against established control limits, which has a centerline that assists in detecting a trend of plotted values toward either control limit.
"152. Answer: B.
PMBOK® Guide, page 276, Section 9.3.2.3; and Appendix X3, Section X3.2
Team-Building Activities
Team-building activities can vary from a 5-minute agenda item in a status review meeting to an off-site, professionally facilitated experience designed to improve interpersonal relationships. The objective of team-building activities is to help individual team members work together effectively. Team-building strategies are particularly valuable when team members operate from remote locations without the benefit of face-to-face contact. Informal communication and activities can help in building trust and establishing good working relationships.

As an ongoing process, team building is crucial to project success. While team building is essential during the initial stages of a project, it is a never-ending process. Changes in a project environment are inevitable, and to manage them effectively, a continued or a renewed team-building effort should be applied. The project manager should continually monitor team functionality and performance to determine if any actions are needed to prevent or correct various team problems.

"Team Building
...
While team building is essential during the front end of a project, it is an ongoing process. Changes in a project environment are inevitable. To manage these changes effectively, a continued or renewed team-building effort is required. Outcomes of team building include mutual trust, high quality of information exchange, better decision making, and effective project management.
159. Answer: B.
PMBOK® Guide, page 276, Section 9.3.2.3
Team-Building Activities
...
One of the models used to describe team development is the Tuckman ladder (Tuckman, 1965; Tuckman & Jensen, 1977), which includes five stages of development that teams may go through. Although it's common for these stages to occur in order, it's not uncommon for a team to get stuck in a particular stage or slip to an earlier stage. Projects with team members who worked together in the past may skip a stage.
• Forming. This phase is where the team meets and learns about the project and their formal roles and responsibilities. Team members tend to be independent and not as open in this phase.
• Storming. During this phase, the team begins to address the project work, technical decisions, and the project management approach. If team members are not collaborative and open to differing ideas and perspectives, the environment can become counterproductive.
• Norming. In the norming phase, team members begin to work together and adjust their work habits and behaviors to support the "• Performing. Teams that reach the performing stage function as a well-organized unit. They are interdependent and work through issues smoothly and effectively.
• Adjourning. In the adjourning phase, the team completes the work and moves on from the project. This typically occurs when staff is released from the project as deliverables are completed or as part of carrying out the Close Project or Phase process (Section 4.6).
The duration of a particular stage depends upon team dynamics, team size, and team leadership. Project managers should have a good understanding of team dynamics in order to move their team members through all stages in an effective manner."

Excerpt From: Project Management Institute. "Q & As for the PMBOK Guide - Fifth Edition." iBooks. [...]"
"163. Answer: D.
PMBOK® Guide, pages 296-297, Section 10.1.3.1
Communications Management Plan
The communications management plan is a component of the project management plan that describes how project communications will be planned, structured, monitored, and controlled. The plan contains the following information:
• Stakeholder communication requirements;
• Information to be communicated, including language, format, content, and level of detail;
• Reason for the distribution of that information;
• Time frame and frequency for the distribution of required information and receipt of acknowledgment or response, if applicable;
• Person responsible for communicating the information;
• Person responsible for authorizing release of confidential information;"
" Person or groups who will receive the information;
• Methods or technologies used to convey the information, such as memos, e-mail, and/or press releases;
• Resources allocated for communication activities, including time and budget;
• Escalation process identifying time frames and the management chain (names) for escalation of issues that cannot be resolved at a lower staff level;
• Method for updating and refining the communications management plan as the project progresses and develops;
• Glossary of common terminology;
• Flow charts of the information flow in the project, workflows with possible sequence of authorization, list of reports, and meeting plans, etc.; and
• Communication constraints usually derived from a specific legislation or regulation, technology, and organizational policies, etc.
The communications management plan can also include guidelines and templates for project status meetings, project team meetings, e-meetings, and e-mail messages. The use of a project website and project management software can also be included if these are to be used in the project."
188. Answer: D.
PMBOK® Guide, pages 317-318, Section 11.1.3.1 and Table 11-1; and pages 330-332, Section 11.3.2
Definitions of risk probability and impact. The quality and credibility of the risk analysis requires that different levels of risk probability and impact be defined that are specific to the project context. General definitions of probability levels and impact levels are tailored to the individual project during the Plan Risk Management process for use in subsequent processes. Table 11-1 is an example of definitions of negative impacts that could be used in evaluating risk impacts related to four project objectives. (Similar tables may be established with a positive impact perspective). Table 11-1 illustrates both relative and numerical (in this case, nonlinear) approaches.
Probability and impact matrix. A probability and impact matrix is a grid for mapping the probability of each risk occurrence and its impact on project objectives if that risk occurs[...]""risks as low, moderate, or high priority. Descriptive terms or numeric values can be used depending on organizational preference.

Each risk is rated on its probability of occurrence and impact on an objective if it does occur. "Risk impact assessment investigates the potential effect on a project objective such as schedule, cost, quality, or performance, including both negative effects for threats and positive effects for opportunities..."


The organization should determine which combinations of probability and impact result in a classification of high risk, moderate risk, and low risk. In a black-and-white matrix, these conditions are denoted using different shades of gray. Specifically in Figure 11-10, the dark gray area (with the largest numbers) represents high risk: the medium gray area (with the smallest numbers) represents low risk, and the light gray area (with in-between numbers) represents moderate risk. Usually, these risk-rating rules are specified by the organization in advance of the project and included in organizational process assets. Risk rating rules can be tailored in the Plan Risk Management process to the specific project.
"191. Answer: A.
PMBOK® Guide, pages 331-332, Section 11.3.2.2 and Figure 11-10
Probability and Impact Matrix
Risks can be prioritized for further quantitative analysis and planning risk responses based on their risk rating. Ratings are assigned to risks based on their assessed pr"obability and impact. Evaluation of each risk's importance and priority for attention is typically conducted using a look-up table or a probability and impact matrix. Such a matrix specifies combinations of probability and impact that lead to rating the risks as low, moderate, or high priority. Descriptive terms or numerical values can be used depending on organizational preference.

Each risk is rated on its probability of occurrence and impact on an objective if it does occur. The organization should determine which combinations of probability and impact result in a classification of high risk, moderate risk, and low risk. In a black-and-white matrix, these conditions are denoted using different shades of gray. Specifically in Figure 11-10, the dark gray area (with the largest numbers) represents high risk: the medium gray area (with the smallest numbers) represents low risk, and the light gray area (with in-between numbers) represents moderate risk. Usually, these risk-rating rules are specified by the organization in advance of the project and included in organizational process assets. Risk rating rules can be tailored in the Plan Risk Management process to the specific project.

As illustrated in Figure 11-10, an organization can rate "risk separately for each objective (e.g., cost, time, and scope). In addition, it may develop ways to determine one overall rating for each risk. Finally, opportunities and threats are handled in the same matrix using definitions of the different levels of impact that are appropriate for each."
"193. Answer: C.
PMBOK® Guide, page 337, Section 11.4.2.1; page 339, Section 11.4.2.2 and Figure 11-16; page 343, Section 11.5.2; and Glossary"

"Probability distributions. Continuous probability distributions, which are used extensively in modeling and simulation, represent the uncertainty in values such as durations of schedule activities and costs of project components. Discrete distributions can be used to represent uncertain events, such as the outcome of a test or a possible scenario in a decision tree.
Expected monetary value analysis. Expected monetary value (EMV) analysis is a statistical concept that calculates the average outcome when the future includes scenarios that may or may not happen (i.e., analysis under uncertainty). The EMV of opportunities are generally expressed as positive values, while those of threats are expressed as negative values. EMV requires a risk-neutral assumption—neither risk averse nor risk seeking. EMV for a project is calculated by multiplying the value of each possible outcome by its probability of occurrence and adding the products together. A common use of this type of analysis is a decision tree analysis (Figure 11-16).
Plan Risk Responses: Tools and Techniques
Several risk response strategies are available. The strategy or mix of strategies most likely to be effective should be selected for each risk. Risk analysis tools, such as decision tree analysis (Section 11.4.2.2), can be used to choose "most appropriate responses.

Decision Tree Analysis. A diagramming and calculation technique for evaluating the implications of a chain of multiple options in the presence of uncertainty."
"210. Answer: A.
PMBOK® Guide, pages 362-364, Section 12.1.1.9
All legal contractual relationships generally fall into one of two broad families: either fixed-price or cost reimbursable. Also, there is a third hybrid type commonly in use called the time and materials contract. The more popular contract types in use are discussed below as discrete types, but in practice it is not unusual to combine one or more types into a single procurement.
• Fixed-price contracts.
• Cost-reimbursable contracts.
• Time and material contracts (T&M).
211. Answer: B.
PMBOK® Guide, page 367, Section 12.1.3.2
Procurement Statements of Work
The statement of work (SOW) for each procurement is developed from the project scope baseline and defines only that portion of the project scope that is to be included within the related contract. The procurement SOW describes the procurement item in sufficient detail to allow prospective sellers to determine if they are capable of providing the products, services, or results. Sufficient detail can vary based on the nature of the item, the needs of the buyer, or the expected contract form. Information included in a SOW can include specifications, quantity desired, quality levels, performance data, period of performance, work location, and "Also, there is a third hybrid type commonly in use called the time and materials contract. The more popular contract types in use are discussed below as discrete types, but in practice it is not unusual to combine one or more types into a single procurement.
• Fixed-price contracts.
• Cost-reimbursable contracts.
• Time and material contracts (T&M)."
216. Answer: A.
PMBOK® Guide, page 365, Section 12.1.2.1
Make-or-Buy Analysis
A make-or-buy analysis is a general management technique used to determine whether particular work can best be accomplished by the project team or should be purchased from outside sources. Sometimes a capability may exist within the project organization, but may be committed to working on other projects, in which case, the project may need to source such effort from outside the organization in order to meet its schedule commitments."

"Budget constraints may influence make-or-buy decisions. If a buy decision is to be made, then a further decision of whether to purchase or lease is also made. A make-or-buy analysis should consider all related costs—both direct costs as well as indirect support costs. For example, the buy-side of the analysis includes both the actual out-of-pocket costs to purchase the product, as well as the indirect costs of supporting the purchasing process and purchased item.

Available contract types are also considered during the buy analysis. The risk sharing between the buyer and seller determines the suitable contract types, while the specific contract terms and conditions formalize the degree of risk being assumed by the buyer and seller. Some jurisdictions have other types of contracts defined, for example, contract types based on the obligations of the seller—not the customer—and the contract parties have the obligation to identify the appropriate type of contract as soon as the applicable law has been agreed upon."
233. Answer: B.
PMBOK® Guide, Appendix X3, Section X3.2; and page 276, Section 9.3.2.3
Team Building
Team building is the process of helping a group of individuals, bound by a common purpose, to work with each other, the leader, external stakeholders, and the organization. The[...]""The result of good leadership and good team building is teamwork.

Team-building activities consist of tasks (establish goals, define, and negotiate roles, responsibilities, and procedures) and processes (interpersonal behavior with emphasis on communication, conflict management, motivation, and leadership). Developing a team environment involves handling project team problems and discussing these as team issues without placing blame on individuals. Team building can be further enhanced by obtaining top management support; encouraging team member commitment; introducing appropriate rewards, recognition, and ethics; creating a team identity; managing conflicts effectively; promoting trust and open communication among team members; and providing leadership.

"Team-Building Activities
As an ongoing process, team building is crucial to project success. While team building is essential during the initial stages of a project, it is a never-ending process. Changes in a project environment are inevitable, and to manage them effectively, a continued or a renewed team-building effort should be applied. The project manager should continually monitor team functionality and performance to determine if any actions are needed to prevent or correct various team problems.

"

Excerpt From: Project Management Institute. "Q & As for the PMBOK Guide - Fifth Edition." iBooks.
"235. Answer: A.
PMBOK® Guide, Appendix X3, Section X3.4; and page 287, Introduction
Communication
...
To communicate effectively, the project manager should be aware of the communication styles of other parties, cultural nuances/norms, relationships, personalities, and the overall context of the situation. Awareness of these factors leads to mutual understanding and thus to effective communication. Project managers should identify various communication channels, understand what information they need to provide, what information they need to receive, and which interpersonal skills will help them communicate "effectively with various project stakeholders. Carrying out team-building activities to determine team member communications styles (e.g., directive, collaborative, logical, explorer, etc.), allows managers to plan their communications with appropriate sensitivity to relationships and cultural differences.
Listening is an important part of communication. Listening techniques, both active and passive give the user insight to problem areas, negotiation and conflict management strategies, decision making, and problem resolution.
Project Communications Management
Project communications management includes the processes that are required to ensure timely and appropriate planning, collection, creation, distribution, storage, retrieval, management, control, monitoring, and the ultimate disposition of project information. Project managers spend most of their time communicating with team members and other project stakeholders, whether they are internal (at all organizational levels) or external to the organization. Effective communication creates a bridge between diverse stakeholders who may have different cultural and organizational backgrounds, different levels of expertise, and different perspectives and interests, which impact or have an influence upon the project execution or outcome.
236. Answer: C.
PMBOK® Guide, Appendix X3, Section X3.7; and pages 20-21, Section 2.1.1
Political and Cultural Awareness
...Cultural differences can be both individual and corporate in nature and may involve both internal and "external stakeholders. An effective way to manage this cultural diversity is through getting to know the various team members and the use of good communication planning as part of the overall project plan.

Culture at a behavioral level includes those behaviors and expectations that occur independently of geography, ethnic heritage, or common and disparate languages. Culture can impact the speed of working, the decision-making process, and the impulse to act without appropriate planning. This may lead to conflict and stress in some organizations, thereby affecting the performance of project managers and project teams.

Organizational Cultures and Styles
Organizations are systematic arrangements of entities (persons and/or departments) aimed at accomplishing a pur"pose, which may involve undertaking projects. An organization's culture and style affect how it conducts projects. Cultures and styles are group phenomena known as cultural norms, which develop over time. The norms include established approaches to initiating and planning projects, the means considered acceptable for getting the work done, and recognized authorities who make or influence decisions.

Organizational culture is shaped by the common experiences of members of the organization and most organizations have developed unique cultures over time by practice and common usage...

In light of globalization, understanding the impact of cultural influences is critical in projects involving diverse organizations and locations around the world. Culture becomes a critical factor in defining project success, and multi-cultural competence becomes critical for the project manager."