PMI Certification Mock Questions

As program manager for the development of a new drug, you are pleased that it has fnally received regulatory approval, and you can move on to the manufacturing and distribution phase. You have been managing this program now for eight years, and you had six projects in it. As this program has been under way for eight years, it is a best practice to—

Options are :

  • a. Organize program knowledge as a reference (Correct)
  • b. Obtain a license for exclusive distribution
  • c. Work to ensure a positive reception for the product from end users and the medical feld using skills in customer relationship management
  • d. Sign a nondisclosure agreement with the government

Answer : a. Organize program knowledge as a reference

Explanation Program management supporting activities may include work and resources required to address knowledge management on programs. During the program, applying knowledge management will include activities associated with timely identifcation, storage, and delivery of key program knowledge to aid in decision making and for a reference. PMI®, The Standard for Program Management, 2013, 65

Assume you are the program manager to redesign the reward loyalty operational activity for your airline. Members have been complaining about the diffculty of actually using an award, especially your elite members who tend to ?y on your airline at least one million miles per year. You feel you will lose elite members to other airlines unless the program changes dramatically, and you believe it needs to offer more possible rewards in conjunction with free stays at leading hotels of the world and also free car rentals. Therefore, you want to plan for success from the beginning of the program. This need means that the program manager requires which one of the following skills?

Options are :

  • a. Facilitation (Correct)
  • b. Political
  • c. Emotional intelligence
  • d. Conflict resolution

Answer : a. Facilitation

Explanation Program managers require a number of interpersonal skills. With facilitating, one key element is to plan for success from the start of the program. Milestones can be set in the high-level program plan that can be easily met in order that early successes can lead to an atmosphere of later successes among the team. Levin, Ginger and Ward, J. LeRoy. 2011. Program Complexity A Competency Model, Boca Raton, FL: CRC Press, 87–89

You are the program manager for your city’s initiative to put all electrical, cable, and telephone lines underground to prevent outages during tornadoes and hurricanes. As program manager, you will select subcontractors to support your program. You prepare criteria for the make-or-buy decisions, as well as the criteria to select the subcontractors to—

Options are :

  • a. See how much cheaper it is to buy rather than to make
  • b. See how much cheaper it is to make rather than to buy
  • c. Outsource as much as possible in accordance with company policy
  • d. Determine the optimal supply chain strategy based on a wide variety of factors (Correct)

Answer : d. Determine the optimal supply chain strategy based on a wide variety of factors

Explanation Make-or-buy decisions are business decisions that can have far-reaching impacts on any organization. A decision, for example, to outsource an operation could lead to a lack of core competency in that area. Makeor-buy decisions determine which program elements will be delivered using internal resources as compared to those that will be obtained from outside suppliers. PMI®, The Standard for Program Management, 2013, 90

Expert judgment can be a useful tool for many program management areas, including risk identification, estimating, forecasting and decision making. One expert judgment technique is the Delphi technique. All of the following are aspects of conducting the Delphi technique EXCEPT:

Options are :

  • a. Feedback is provided and request is made to complete new predictions based upon the feedback
  • b. The process is repeated until agreement is reached (Correct)
  • c. Experts can be from within or external to the organization
  • d. More than one expert is required to complete the technique

Answer : b. The process is repeated until agreement is reached

Explanation Agreement may not be reached across the panel of experts, the iteration of the process is likely to produce a smaller range of responses, however obtaining agreement is not a requirement of the Delphi technique. Project Management – A Systems Approach to Planning, Scheduling and Controlling. Seventh Edition Section 17.8 (Pages 917-918)

You are the program manager for a sixth-generation cell phone product. A number of component projects are associated with this program. You were on the core program team for the ffth-generation phone, so you can apply the lessons learned from that program. The schedule is the dominant constraint, and there is a chance that you will miss the user-acceptance test milestone even though it is six months away. Your next step is to—

Options are :

  • a. Implement your plan
  • b. Inform the executive team that you will miss this critical milestone unless preventive action is taken
  • c. Revisit the program master schedule (Correct)
  • d. Ask your program steering committee for additional resources to ensure that you can meet the milestone

Answer : c. Revisit the program master schedule

Explanation The program master schedule should be reviewed to assess the impact of component changes such as missing a key milestones on the other components and on the program itself, There may be a need to accelerate or decelerate components in the schedule to meet goals. Early identifcation of slippages such as this one is critical. PMI®, The Standard for Program Management, 2013, 103–104

A statement ‘We will increase the number of new customers by 10% in the next fiscal year’ is an example of a ________________.

Options are :

  • a. Business KPI (Correct)
  • b. Benefit Measurement
  • c. Program Metric
  • d. Strategic Plan

Answer : a. Business KPI

Explanation Business KPI’s are the Key Performance Indicators for an organization and identify quantifiable measurements that have been determined by the organization as representing the focus for the organization to be successful. They are determined as those objectives that add the most value to the business.

You are sponsoring a program to digitize all of the records in your nation’s archives. Some of these records are extremely important but are diffcult to digitize, because they are ones when your country was established, approximately 500 years ago. However, it is essential that they be preserved, and the effort of your undertaking is far larger than originally anticipated. But, now your government is in fnancial diffculty, and you wonder if your program will be able to be funded. You must—

Options are :

  • a. Prepare an impact analysis to show the results if the program does not receive needed funding.
  • b. Conduct a benchmarking study to see how other countries have handled this type of project
  • c. Estimate the high-level fnancial and non-fnancial benefts (Correct)
  • d. Perform a SWOT analysis

Answer : c. Estimate the high-level fnancial and non-fnancial benefts

Explanation It is essential to estimate the high-level fnancial and non-fnancial benefts of the program in order to both obtain funding for it and also to maintain funding authorization for the program. This approach as well drives the prioritization of the projects in the program. PMI®, Program Management Professional (PgMP)® Examination Content Outline, 2011, 6 Thiry, 2010, 77

You have been a program manager for three years. You realize that a common understanding of program scope among the stakeholders leads to greater program success. Throughout the past three years, you have communicated extensively with your stakeholders and believe you are meeting most of their expectations, but some still have some doubts as to overall success. Therefore, in your last program review with your Governance Board, you noted this concern and now want to document a common understanding of the overall scope and have the key stakeholders sign off on it. This understanding is best documented as part of the—

Options are :

  • a. Stakeholder management plan
  • b. Program scope statement (Correct)
  • c. Program scope management plan
  • d. Program charter

Answer : b. Program scope statement

Explanation The program scope statement documents, defnes, and assesses the context and framework of the program. It establishes the direction to be taken and the essential aspects to be accomplished. Stakeholders should verify and approve the scope statement. PMI®, The Standard for Program Management, 2013, 105

Whilst completing the Approve Component Transition process, you have identified that there are unresolved issues outstanding in the project issue register. Although insignificant to the component project being closed there are ‘flow on’ effects that could be significant to other component projects that are active. What is your BEST course of action?

Options are :

  • a. Do not close the component project until all the issues have been finally resolved
  • b. Transfer the issues to the program issue register and manage the issues at program level, then close the component project (Correct)
  • c. Document a lessons learned and then continue to close the component project
  • d. Make a file note in the PMIS of outstanding issues and then move to close the component project

Answer : b. Transfer the issues to the program issue register and manage the issues at program level, then close the component project

Explanation The outstanding issues are insignificant to the component project being closed, but because of the inter-dependencies of the component projects these issues should not be ‘lost’ in the closure process, but escalated to program level for management. The Standard for Program Management Second Edition Section 3.7.2 (Page 68)

You are pleased to be the frst program manager in your company to manage a virtual team. While the company has managed programs for several years, in the past, it tended to hire subject matter experts or ask people from its offces in four other continents to meet in one place in order to work as a collocated team. It also relied extensively on contactor support. Finally, your executives have recognized that it will be cost benefcial to use a virtual team for your new program to develop a new product that combines the capabilities of a smart phone, an eBook reader, and a tablet in a single device that is less expensive with a higher quality of resolution than possible with the existing products on the marketplace. Such an approach is one in which you should consider—

Options are :

  • a. Using focus groups to obtain a picture of the various attitudes of your stakeholders
  • b. The cultural backgrounds of the team members
  • c. Changing culture (Correct)
  • d. Using market analysis

Answer : c. Changing culture

Explanation The scenario is one in which virtual teams will be used for the frst time, and the organization has locations in four continents. This approach is a culture change for the organization, and changing culture takes time. PMI®, Program Management Professional (PgMP)® Examination Content Outline, 2011, 6 Thiry, 2010, 54–56

As manager of a program for the Federal Trade Commission that involves changes to existing regulations throughout the agency concerning mergers and acquisitions, you have a number of key stakeholders—both internal and external—because these regulations have not been reviewed for more than 20 years. The Commission has established a Governance Board, and you meet with this Board monthly to review progress. Because the Commission practices government in the “sunshine,? each meeting is open to the public to attend. This means that—

Options are :

  • a. Public announcements concerning the program do not need to be prepared
  • b. Board meeting minutes can substitute for any notifcations to the public concerning the program
  • c. Public announcements should be prepared (Correct)
  • d. A member of the core team should interface regularly with every public interest group

Answer : c. Public announcements should be prepared

Explanation Distributed information concerning the program should be provided in useful formats and using the appropriate media. Public announcements communicating information useful to the general public should be prepared as appropriate. PMI®, The Standard for Program Management, 2013, 75

Programs require different closing processes than projects. All of the statements below identify why this is the case EXCEPT:

Options are :

  • a. Programs are more complex and closing program based contracts require different processes (Correct)
  • b. Programs may have component projects that are closed before the program is closed
  • c. Programs may have non-project activities as well as project activities
  • d. Program managers need to verify that the closure process has been completed correctly at the component level

Answer : a. Programs are more complex and closing program based contracts require different processes

Explanation The fact that programs may be more complex and have contracts to close at the program level does not justify a change in the closure process for programs, when compared to projects. The Standard for Program Management Second Edition Section 3.7 (Pages 66 -68)

All of the following are key elements in dealing with program management on global programs EXCEPT:

Options are :

  • a. Be aware of assumptions that are made based on cultural differences
  • b. Communicate frequently on detailed schedule requirements and urgent program matters to avoid misunderstandings (Correct)
  • c. Allow sufficient time and budget for face-to-face meetings for critical points within the program schedule
  • d. Have well-developed people skills and willingness to understand cultural diversity

Answer : b. Communicate frequently on detailed schedule requirements and urgent program matters to avoid misunderstandings

Explanation It is better to work on the program culture at a higher level, to build trust and understanding than to communicate frequently on what is required by when at a detailed level. Providing some flexibility within each country to complete work will enhance the trust of the program team and allow for differences in work patterns and management styles to operate. Focused face-to-face communication is still an element used for successful program management in virtual and global teams and therefore must be accounted for and built into the program culture. Project Management – A Systems Approach to Planning, Scheduling and Controlling. Seventh Edition Section 19.4 (Page 1000) The Handbook of Program Management – James T. Brown (Page 152/3)

You are a member of your insurance company’s Program Selection Committee, which is considering a number of potential programs. Program A is estimated to cost $100,000 to implement and will have annual net cash in?ows (ANCI) of $25,000. Program B is estimated to cost $250,000 to implement and have ANCI of $75,000. Program C is estimated to cost $600,000 to implement and have ANCI of $125,000. Program D is estimated to cost $125,000 to implement and have ANCI of $50,000. Your selection criteria are based on the shortest payback period. You recommend that your company select—

Options are :

  • a. Program A
  • b. Program B
  • c. Program C
  • d. Program D (Correct)

Answer : d. Program D

Explanation The payback period can be determined by dividing the initial fxed investment in the program by the estimated annual net cash in?ows. In this example, the payback period for Program D is 2.5 years, so it should be selected. PMI®, Program Management Professional (PgMP)® Examination Content Outline, 2011, 6 Milosevic et al., 2007, 21 and 42

You are the program manager for the development of a new slot machine for the Sand Dunes casino in Macau. Your organization operates with a balanced matrix organizational structure, and you have resources supporting your program from a variety of functional departments. Some of these people report to you as well as to their respective departmental managers. You should—

Options are :

  • a. Work with the functional managers so you can provide input into the performance of these individuals
  • b. Set up a team-based reward and recognition system
  • c. Ask the team to develop a team charter to serve as their commitment to the program
  • d. Release resources when they are no longer needed (Correct)

Answer : d. Release resources when they are no longer needed

Explanation In Resource Interdependency Management, the program manager controls the schedule for scarce resources. In all programs, and especially in the one described here, the program manager must ensure resources are released for other programs when they are no longer needed on the current program. PMI®, The Standard for Program Management, 2013, 95

The name of the lowest level components on a PWBS are called:

Options are :

  • a. Work packages
  • b. Benefits
  • c. Program Packages (Correct)
  • d. Project packages

Answer : c. Program Packages

Explanation In projects the lowest level on the Project WBS are called work packages. The Standard of Program Management Second Edition Section 5.5 (Page 114)

Agile Printing has recently employed a new Chief Financial Officer, Steven Price. As Program Manager for Agile Printing, you have been managing a program of work to implement a new financial system. Steven advises you that he wants to change the requirements for the program, as he feels there was insufficient research completed with the eventual users of the system prior to initiating the program. The suggested changes are likely to add significant cost and delay the year long project by four months. In addition other functional managers are relying on the financial system implementation to solve some significant financial reporting issues, and to date they are not aware of the recommended change request. You have attempted to call Steven several times to discuss the situation, but he has refused to take your call. Now things have become heated and very tense within the senior management group. You have received no response from Steven, to either your phone calls or your email requests to meet and discuss the request for changing the requirements. What is the MOST APPROPRIATE action to take now?

Options are :

  • a. Raise an issue on the issue register and escalate the issue by including it within the status report for the program (Correct)
  • b. Estimate the integrated impact of the change request in readiness for presenting to the Change Control Board
  • c. Send further email requests and continue to leave messages with his office to request a face to face meeting
  • d. Stamp ‘ REJECTED’ on the change request documentation and send to Steve

Answer : a. Raise an issue on the issue register and escalate the issue by including it within the status report for the program

Explanation To continue to work on the change request without further discussions to identify potential resolutions to this situation is inappropriate, as it continuing to repeat actions that have failed to resolve the problem. To stamp ‘REJECTED’ on the change request will be confrontational and has the potential of raising the issue with Steven, leading to a resolution. However in this situation, such action would be deemed hostile and likely to further inflame the conflict. Project Management – A Systems Approach to Planning, Scheduling and Controlling, 7th Edition – Harold Kerzner, PhD (Chapter 7)

You are managing a program whose budget at completion (BAC) is €420,000. The program is 10 percent complete and has an earned value of €42,000. The actual costs (AC) are €50,000. This means that—

Options are :

  • a. Although the program is over budget, the overrun is insignifcant at this time (Correct)
  • b. The program is over budget by –€8,000, which is a major problem
  • c. You need to calculate a new estimate to complete (ETC)
  • d. The CV is €378,000, and immediate action is necessary

Answer : a. Although the program is over budget, the overrun is insignifcant at this time

Explanation The cost variance (CV) is calculated by subtracting the actual cost (AC) from the earned value (EV); that is, CV = EV – AC, or €42,000 – €50,000 = –€8,000, which is insignifcant compared to the budget at completion (BAC). PMI®, The Standard for Program Management, 2013, 81 PMI® PMBOK® Guide—Fifth Edition (2013), 224

Which of the following statements is FALSE, as regards the Identify Program Risk process?

Options are :

  • a. A proactive process that continues throughout the life cycle of the program, including the Closing Program phase
  • b. By using Risk Breakdown Structures (RBS) and checklists the Program Manager will ensure the identification of all risks (Correct)
  • c. Brainstorming, Delphi Technique, and Business Case analysis are all tools that will assist in identifying risks
  • d. The Risk identification process will identify risks within the program, including inter-project risks

Answer : b. By using Risk Breakdown Structures (RBS) and checklists the Program Manager will ensure the identification of all risks

Explanation These tools support the risk identification process, but cannot be relied upon to identify all the risks. The Standard for Program Management Second Edition Section 11.2 (Pages 164-169)

A benefit is described as an outcome of actions and/or behaviours that provide utility or value to stakeholders. Benefits can be tangible or intangible. Which of the following benefits would be categorized as being an intangible benefit?

Options are :

  • a. An increase in customer sales
  • b. A decrease in elapsed time from order to delivery to our customers
  • c. An improvement in employee morale (Correct)
  • d. An improvement in resource utilization

Answer : c. An improvement in employee morale

Explanation Intangible benefits are those that cannot be easily quantified. An improvement in employee morale is usually only measured by way of employee survey and cannot be quantified. All other answers can be quantified either by a $ value or a % The Standard for Program Management Second Edition Section 14.4 (Page 239)

You have recently been assigned to a program of work that has been underway within your organization for 18 months. The previous Program Manager was asked to leave the program, as the performance information being presented was confirmed as false and not providing an accurate picture of the program status. As a consequence, the company management and stakeholders had lost confidence in the management of the program. What would be your BEST INITIAL approach to take with stakeholders to gain respect and build confidence in the program and in you as Program Manager?

Options are :

  • a. Meet face to face with key stakeholders, acknowledge the problems and outline your approach to resolve the issues (Correct)
  • b. Prepare a presentation for stakeholders on your high level of experience in working with ‘troubled’ programs and your success in achieving a quick turn around in performance
  • c. Review the status of the program and work 12 hour days to complete your review and to issue an updated status report for the program within the week
  • d. Review the Stakeholder profiles and meet with those that remain positive about the outcome of the program and ask for stakeholder input as to recommended approaches to take

Answer : a. Meet face to face with key stakeholders, acknowledge the problems and outline your approach to resolve the issues

Explanation To build confidence in you AND the program, the direct approach works best. Answer b) refers to building confidence in you as a Program Manager. Answer c) does not help build rapport and build confidence as much as a face to face meeting; stakeholders are likely to be suspicious of the next report, unless they understand the processes taken to collate the information. Answer d) A better result will be obtained if you also ask for feedback from those stakeholders that remain in doubt as to the viability of the program – a more balanced view will be gained if you interview both positive and negative stakeholders.

Assume you are the sponsor for a program for helping your government become a member of the Asian Union, which will be set up like the European Union. You know this will take some time to achieve so you have—

Options are :

  • a. Prepared a funding framework
  • b. Prepared a roadmap (Correct)
  • c. Assessed costs and benefts
  • d. Focused on business value

Answer : b. Prepared a roadmap

Explanation This program will last a long time. The roadmap is a chronological representation shown graphically of the program’s intended direction and has a set of documented success criteria for each chronological event. PMI®, The Standard for Program Management, 2013, 29 PMI®, Program Management Professional (PgMP)® Examination Content Outline, 2011, 6

You are the Program Manager of a program that is 80% complete. There are some components Project Managers that have reported that they are struggling to maintain the planned schedule and there is a heightened risk of slippage. You are currently investigating the impact of the potential slippage on the program schedule. You could be using all of the following tools EXCEPT:-

Options are :

  • a. Variance Analysis
  • b. Monte Carlo Analysis
  • c. Resource reallocation (Correct)
  • d. Brainstorming session

Answer : c. Resource reallocation

Explanation This could occur, but not as part of the investigation, only as a result of reviewing the impact and as a proactive action to reduce the potential slippage. The question states that you are only at the stage of investigating the impact of the slippage. It may be that the component schedule slippage does not impact the program schedule as the components are not completing critical path tasks and therefore you would not reallocate resources.

You are the Program Manager for an organization that has a dysfunctional project management culture. You would most likely see all of the following EXCEPT:

Options are :

  • a. A high level of staff turnover
  • b. A high level of resource conflicts (Correct)
  • c. Priorities that are frequently changing
  • d. Dissatisfied customers and stakeholders

Answer : b. A high level of resource conflicts

Explanation Having a high number of resource conflicts is common within programs and not a reflection that there is a dysfunctional culture. Having a high number of unresolved resource conflicts could be an indication of a dysfunctional culture. The Handbook of Program Management – James T. Brown

As a Program Manager, you are about to request authorization to proceed with a program of work and have completed all the required documentation. The Program Steering Committee is meeting tomorrow to determine whether or not to initiate the program. All of the following are skills that will assist you in this approval process EXCEPT:-

Options are :

  • a. Ability to sell the program concept and vision
  • b. Ability to mediate with functional departments (Correct)
  • c. Ability to influence and negotiate
  • d. Ability to communicate with senior management

Answer : b. Ability to mediate with functional departments

Explanation Mediation is a useful skill in determining the interdependencies of the program – and potential partnerships which is then included in the program documentation that has already been completed. In addition when attempting to secure resources for the program, mediation skills will come in use. However mediation is not a skill that will assist with the actual presentation of the program for approval. Program Management Professional Examination Specification, Domain II, Task 7, Page 20

You are the program manager for a global Fortune 100 software company. It has determined that it must pursue Cloud Computing, and it wants to use agile methods as it enters this market to speed the time to complete the Cloud Computing program and to develop a marketing campaign for it. You are responsible for ongoing management of program benefts. You must ensure that the program transition activities provide for continued management of benefts through the framework of—

Options are :

  • a. Ongoing operations (Correct)
  • b. Transfer of the benefts to the customer
  • c. Program closure
  • d. Consolidation of the benefts

Answer : a. Ongoing operations

Explanation Even after the program life cycle ends, benefts management allows the organization to realize and sustain the benefts from its investment. The program manager ensures that this is accomplished within the framework of ongoing operations in the organization. PMI®, The Standard for Program Management, 2013, 41–42

As an energy company “upstream? program manager, you use your program work breakdown structure (PWBS) to build your schedule. You have seven projects in your program, and it is to be completed in three years. The best approach is to—

Options are :

  • a. Hold an off-site meeting in which project managers and your core program team work together to complete the schedule
  • b. Have the project managers build the detail for their projects and then roll it up into the control points and PWBS program packages
  • c. Work with your core program team to develop the program schedule and then ask the project managers to use this schedule as they prepare more detailed project schedules
  • d. Have the frst draft of the program schedule identify the start and end dates of the components (Correct)

Answer : d. Have the frst draft of the program schedule identify the start and end dates of the components

Explanation The frst draft of the program’s master schedule often identifes only the order and start and end dates of components. Then, component results can be added as their schedules are developed. PMI®, The Standard for Program Management, 2013, 102

Assume your organization has approved an internal improvement program and has identifed key stakeholders. It is now deciding whether or not it should focus on the Software Engineering Institute’s Capability Maturity Model for Integration (CMMI) to obtain Level 3 and have the opportunity to bid on more U.S. Federal Government projects. The other option is to establish a program to pursue best practices in portfolio, program, and project management using the Project Management Institute’s Organizational Project Management Maturity Model (OPM3)®. Since the area to be addressed is understood, the next step is to—

Options are :

  • a. Qualify the business benefts
  • b. Conduct a feasibility study
  • c. Use the voice of the customer (VOC) approach for a market analysis
  • d. Prepare a high-level approach (Correct)

Answer : d. Prepare a high-level approach

Explanation In organizational strategy and business alignment, since the area to be addressed is understood, the next step is to prepare a high-level approach or plan, often defned In the form of a roadmap. PMI®, The Standard for Program Management, 2013, 27

Quality Control is a process completed throughout the program life cycle to ensure quality requirements are met. All of the following would be subject to quality control EXCEPT:

Options are :

  • a. High level business case justifying the program (Correct)
  • b. Program deliverables
  • c. Program risk register
  • d. Cost and schedule performance

Answer : a. High level business case justifying the program

Explanation The high level business case would be completed before the program was initiated and therefore not subject to the program related quality control process. The Standard for Program Management Second Edition Section 2.2.1 (Page 22-23)

When organizations ignore their capacity for program/project work and continue to initiate more and more programs/projects, all of the following situations are likely to occur EXCEPT:

Options are :

  • a. Delays to the projects being executed
  • b. Customer satisfaction will decrease
  • c. Profits will be increased (Correct)
  • d. Worker satisfaction will be increased

Answer : c. Profits will be increased

Explanation Although organizations often continue to initiate more and more projects, this means that either the projects already initiated will go slower, thereby delaying the benefits to be realized and reducing the value of the program/project, or additional resources will need to be added – thereby increasing cost or reducing profitability. Project Portfolio Management – Harvey A. Levine (Page 39)

Project results which are analyzed along with non-project activities, identifying opportunities and determining which factors should result in modification of the program management plan is completed as part of which process?

Options are :

  • a. Integrated Change Control process
  • b. Issue Management and Control process
  • c. Risk Monitoring and Control process
  • d. Monitor and Control Program Work process (Correct)

Answer : d. Monitor and Control Program Work process

Explanation The Standard for Program Management Second Edition Section 3.6 (Page 59)

You are sponsoring a new program that will focus on a new product in which educators can immediately determine whether or not a student is plagiarizing, whether the student has cited the reference correctly, or whether it is an entirely new idea. The program will have a number of components, and the planned components have interdependencies between them. In this program you want to evaluate its program objectives, and you realize you need to address a number of concerns to satisfy all the involved and committed stakeholders. One of these considerations in this situation is—

Options are :

  • a. Cultural considerations
  • b. Ethical concerns (Correct)
  • c. Sustainability issues
  • d. Technological changes

Answer : b. Ethical concerns

Explanation In evaluating program objectives ethical concerns are a key consideration. In this example, student privacy is an example of an ethical concern to satisfy. PMI®, Program Management Professional (PgMP)® Examination Content Outline, 2011, 6 PMI®, PMI Code of Ethics and Professional Conduct. Available from: http://www.pmi.orgcodeofethicsPDF

On your program to design, develop, and manufacture a class of farm equipment for use above the Arctic Circle, you want to make sure that the benefts from the program will be sustainable ones. Your sponsor is interested in having regular status reports about the progress of your program especially since she is located below the Arctic Circle and rarely makes on site visits given the weather conditions to assess progress herself. To provide a clear picture of your program’s performance as a while, you must—

Options are :

  • a. Forecast information on the signifcant project components
  • b. Aggregate information across projects and non-project activity (Correct)
  • c. Provide detailed reports on component projects at regular intervals
  • d. Monitor the status of the key deliverables

Answer : b. Aggregate information across projects and non-project activity

Explanation Program Performance Reports aggregate all performance information for both project and non-project activity. The reports consolidate performance data to provide stakeholders with information regarding the use of resources to determine if the program’s goals and benefts will be met. PMI®, The Standard for Program Management, 2013, 87

Your organization has a defned process that it follows to determine which programs and projects should be in the portfolio, and this process is followed before leadership approval is received offcially to authorize a program or project. In the past 10 years, your company, XYZ, has focused on projects. It has set up a project management methodology, which project managers are to follow, and it also has a Project Management Offce. However, you recently attended a conference, and you realize since you are a member of the XYZ’s Portfolio Review Board that many of the projects you are considering at your next meeting might be better managed if they were a program. After this conference, you met with other members of the Portfolio Review Board and explained how many of the existing projects in XYZ might be better organized as a program so they could then obtain more benefts than if the projects were managed in a standalone fashion. Now, with the upcoming Portfolio Review Board meeting, of the following possible key initiatives, which one would beneft by being managed as a program?

Options are :

  • a. Expanding a ski area
  • b. Setting up a career path for people in the project management profession
  • c. Upgrading the nation’s airspace system (Correct)
  • d. Introducing a new project planning tool in a large organization

Answer : c. Upgrading the nation’s airspace system

Explanation An upgrade to the nation’s airspace system would consist of numerous projects as well as ongoing work. If these projects were managed in a coordinated way, then you would have better control over them and would obtain greater benefts. PMI®, The Standard for Program Management, 2013, 4

Your organization is embarking on a program to establish a culture of knowledge management. You established a lessons-learned register on your last project. The enterprise program management offce (EPMO) was impressed and suggested to the CEO that a program focusing on knowledge management is needed. The CEO concurred, and you were appointed program manager. Two people from the EPMO have been assigned to the core program team. This is important because—

Options are :

  • a. The organization lacks available resources
  • b. The two members from the EPMO have expertise in this feld
  • c. The EPMO Director is the program sponsor (Correct)
  • d. The EPMO provides knowledge management support

Answer : c. The EPMO Director is the program sponsor

Explanation Although it is not providing knowledge management support at this time, doing so is an established function of PMOs (or in this case the EPMO) to support program managers. PMI®, The Standard for Program Management, 2013, 13

Bill’s Financial Wizards Inc., is an organization based in the United States and has several subsidiaries across the globe, including partnerships and joint ventures. The organization sells financial products and services including investment portfolios, financial consulting services and insurance products. The global turnover predicted for the current year is USD $130 million, of which 35% comes from the United States , 40% from Asia and 25% from Europe . Bill’s Financial Products Inc. has a well developed Portfolio, Program and Project methodology and actively manages their portfolio of current work. Program Global, is an active program of work which has been initiated to create a financial product that is viable in all of the organization’s current markets. Previously a program with similar linkage to organizational goals failed, because of inadequate research into cultural sensitivities. The program team for Program Global operates as a virtual team, who have not previously worked together, based across the current markets. Leading virtual program teams who are also culturally diverse can be very challenging for the program manager. Of the following statements, which is LEAST LIKELY to provide support to a program manager in these circumstances?

Options are :

  • a. Having a clear program vision that will unite program team members
  • b. Appointing a ‘Culture Coach’ to coach the program manager on what has worked or not worked in the past in specific cultures
  • c. Focusing on the cultural differences amongst the program team members (Correct)
  • d. Establishing program processes that allow for adjustment to suit cultural circumstances

Answer : c. Focusing on the cultural differences amongst the program team members

Explanation The emphasis of the program manager needs to be on the team synergies and the overall program vision and purpose. The Program Manager needs to be aware of the cultural differences but should not focus on these cultural differences. This will not be supportive to the overall success of the program. The Handbook of Program Management – James T. Brown (Page 164-165)

When completing Program Financial Management the Program Manager needs to consider how the program is likely to be funded. Of the statements below which statement is LEAST LIKELY to be a reason for this situation?

Options are :

  • a. There is a larger gap between incurring program costs and receiving the benefits of the program, and funding needs to be organised to ‘bridge’ this gap to ensure funding is secured to cover negative cash flows
  • b. Often programs cost more and those providing the funding are likely to have specific funding requirements that the program needs to adhere to, which will impact program financial planning
  • c. Programs generally have larger funding requirements than projects, and therefore knowing the funding sources will enable the development of the program budget (Correct)
  • d. Funding partners for programs are considered key stakeholders and consideration is required as to how to manage the expectations of stakeholders

Answer : c. Programs generally have larger funding requirements than projects, and therefore knowing the funding sources will enable the development of the program budget

Explanation The funding sources are likely to impact stakeholder management and financial planning more than the development of the budget. The program budget is developed from program and component cost estimates and where the funds are derived (i.e. the funding sources) is not a key input. Costs associated with specific funding sources, such as a government agency for example, will have been taken into account when completing the cost estimates. The Standard for Program Management, Second Edition – Section 13.1.1 to 13.1.2 Page 211-2

Your company, a member of the Fortune 500, is well known around the world as it is the leading producer of the top selling cereal. The cereal is nutritious, is one that both adults and children both enjoy, and has been on the market for over 40 years. Your company, though, is interested now in moving into the ice cream market. This will be a major change, and you have been asked to be the program manager for a new line of 12 different ice cream types. The development of this product is in your company’s strategic plan, but it is so radically different from the cereal products for which you company is well known. Before going further and fnalizing your charter, you feel it is important to talk with organizational leaders to address the program’s—

Options are :

  • a. Attractiveness
  • b. Readiness (Correct)
  • c. Vision
  • d. Funding methods

Answer : b. Readiness

Explanation In it important to evaluate the organization’s capability for new products by consulting with its leaders to develop, validate, and assess the program’s objectives. Readiness analysis can help to establish new benefts from the program, ensure resources are available, and evaluate the current state to prioritize requirements. PMI®, Program Management Professional (PgMP)® Examination Content Outline, 2011, 6

When you were a project manager, you found the risk register to be an extremely useful tool. Now that you are a program manager, you ask your project managers to use a risk register, and you assign a member of your core program team to identify, analyze, and track program-level risks. You also need to—

Options are :

  • a. Conduct risk audits
  • b. Review residual risks
  • c. Track schedule risks (Correct)
  • d. Track scope risks

Answer : c. Track schedule risks

Explanation In Program Schedule Control, slippages and opportunities should be identifed and used in risk management. This means program schedule risks should be tracked as part of the risk management activity. PMI®, The Standard for Program Management, 2013, 103

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