PMI Certification Practice Questions

You have determined, after completing trend analysis for your program that there are some cost overruns in two of the constituent projects, Project Yellow and Project Red. However there are some potential cost savings in another constituent project - Project Blue. What is your BEST course of action in relation to the potential cost savings in Project Blue?

Options are :

  • a. Confirm the potential cost savings with the Project Manager for Project Blue and if confirmed, reallocate the cost savings to reduce the unfavorable cost variances in Project Yellow and Red (Correct)
  • b. Do nothing until the program is completed and any remaining cost savings in Project Blue can be returned to the organization
  • c. Report the potential cost saving in Project Blue on the status report advising that the cost savings will be returned to the organization now
  • d. Adjust the budgets for Project Yellow and Red to remove the unfavorable variance from the management reserve

Answer : a. Confirm the potential cost savings with the Project Manager for Project Blue and if confirmed, reallocate the cost savings to reduce the unfavorable cost variances in Project Yellow and Red

Explanation As part of the Cost Control processes the program manager should be identifying opportunities to balance the program budget, and returning funding to the organization whenever possible. Firstly the Program Manager should balance the program budget, before returning funds back to the organization. Program Management Professional (PgMP®) Examination Specification – Domain V Controlling the Program (Page 43)

You are ready to close a contract for a program-level contract that was set up to cover the requirements for any procurements by the components in you program. Before closing this contract, you should—

Options are :

  • a. Meet with each component manager
  • b. Hold a meeting with this contractor for a performance review
  • c. Document results according to the program plan
  • d. Prepare a contract closeout report (Correct)

Answer : d. Prepare a contract closeout report

Explanation Program Procurement Closure involves closing out each contract on the program after ensuring deliverables have been completed satisfactorily. A contract closeout report should be prepared. PMI®, The Standard for Program Management, 2013, 91

What is the best way to manage key stakeholders who have conflicting expectations?

Options are :

  • a. By sending frequent updates on program progress
  • b. By emailing specific items of interest to stakeholders personally to acknowledge their importance
  • c. By regular face to face meetings with the program manager or allocated ‘stakeholder owner’ (Correct)
  • d. By raising a risk on the risk register and allocating the risks to the stakeholder 'owner' to address

Answer : c. By regular face to face meetings with the program manager or allocated ‘stakeholder owner’

Explanation Key Stakeholders are best communicated with on a face to face basis to ensure they have the opportunity to ask questions and easily provide feedback. The program manager needs to be able to assess people and situations beyond their appearances. The Handbook of Program Management – James T. Brown (Pages 53 -57) 1 The process Deveop Program WBS is the process of decomposing the program scope and using the WBS developed within the component projects to complete the Program WBS or PWBS. Which of the following statements is MOST accurate when comparing the PWBS with the project based WBS? a. PWBS is benefits based, WBS is deliverables based b. PWBS can include non-project aspects, WBS illustrates solely project scope c. PWBS includes the total WBS of all the component projects d. The lowest level on the PWBS and the project based WBS are called work packages Planning Answer: PWBS can include non-project aspects, WBS illustrates solely project scope Both the PWBS and Project WBS are deliverables based hierarchies of scope PWBS will include the first or second level only of the project WBS and not the total WBS The components on the lowest level on the PWBS are called ‘program packages’ The Standard for Program Management Second Edition Section 5.5 (Page 114)

Although each program has its own Governance Board, there are times when issues arise that a program manager may need to interface with executive management and external stakeholders. If this needs to be done—

Options are :

  • a. Escalate the issue frst to the Governance Board before going elsewhere (Correct)
  • b. Obtain needed information to inform the Governance Board
  • c. Follow the issue escalation process explicitly
  • d. Ensure the issue is one that has major implications outside of the program

Answer : a. Escalate the issue frst to the Governance Board before going elsewhere

Explanation An issue escalation process should be included in the governance plan. There are times when the program manager may need to contact an executive or an external stakeholder, and information obtained should then be provided to the Governance Board. The governance plan defnes expectations for issue escalation at all levels including when to engage stakeholders for effective issue resolution. PMI®, The Standard for Program Management, 2013, 56

As the program manager for a multinational program headquartered in Sweden, you have adopted English as the common language for use on the program. However, most of your team members are located in Asia, and many of them do not speak English as their primary language. You have decided, therefore, to adopt the common English vocabulary of 4,000 words to facilitate the communication process. This decision should be stated in the—

Options are :

  • a. Communications requirements
  • b. Program management plan
  • c. Communications plan (Correct)
  • d. Program scope statement

Answer : c. Communications plan

Explanation The communications plan should consider cultural and language differences; therefore, it is where you would specify use of the 4,000-word common English vocabulary. PMI®, The Standard for Program Management, 2013, 74

As part of your stakeholder engagement activities, your core program team meets with each of the stakeholders you have identifed as critical to program success. During these meetings, the team members assigned to work with specifc stakeholders try to gauge their attitudes toward risk, identify their perceptions, and better understand how they might respond. This approach is especially useful to you as you—

Options are :

  • a. Analyze risks
  • b. Prepare the program’s risk management plan
  • c. Determine stakeholder issues that may lead to risks (Correct)
  • d. Prepare the stakeholder engagement plan

Answer : c. Determine stakeholder issues that may lead to risks

Explanation Stakeholder issues and concerns are likely to affect aspects of the program. Impact analysis techniques should be used to understand the urgency and probability of stakeholder issues and determine which issues may become risks to the program. PMI®, The Standard for Program Management, 2013, 50

All of the following are risk identification techniques EXCEPT:-

Options are :

  • a. SWOT Analysis
  • b. Interviewing stakeholders
  • c. Utility function (Correct)
  • d. Delphi technique

Answer : c. Utility function

Explanation Utility function is a mathematical analysis to determine tolerance for risk and not a risk identification tool.

The Closing process group includes the processes to complete all of the following circumstances EXCEPT:

Options are :

  • a. Cancelled program
  • b. Cancelled project
  • c. Formally terminate all activities of the program, after formal acceptance of the delivered product
  • d. Cancelled portfolio (Correct)

Answer : d. Cancelled portfolio

Explanation The portfolio of an organization always exists and is comprised of a set of current initiatives. The portfolio of an organization cannot be ‘cancelled’ as a project or program can. The Standard for Program Management Second Edition Section 3.7 (Page 66)

Each of the projects in your program prepares a project risk management plan to describe how risk management is structured. Each project manager also prepares risk response plans for each of the key identifed risks. As program manager, you review the risk response plans to—

Options are :

  • a. Establish triggers for the project risks
  • b. Determine actions that could affect other components (Correct)
  • c. Identify intra-project risks
  • d. Establish a contingency reserve

Answer : b. Determine actions that could affect other components

Explanation Program management should support the risk activities of the program components. The program component’s risk response plans should be reviewed to assess proposed actions that could affect the program risk responses for better or for worse. This enables response mechanisms that could beneft more than one component to be suggested and implemented as managing the interdependencies among the component risks and those at the program level provide both program and project benefts. PMI®, The Standard for Program Management, 2013, 98–99

In your program to manufacture a new series of hybrid vehicles for the 2016 year, you initially thought you would have seven projects. As you worked to develop your program charter, however, you now know you will need instead 15 component projects. You have prepared a business case for each of these projects. However, you have not been successful in recruiting the specifc team members you want for your program. People have been assigned to your team by other managers who contend that these people have the necessary skills for the job. Your frst step is to—

Options are :

  • a. Complete a skill set inventory (Correct)
  • b. Conduct a kickoff meeting
  • c. Have an informal meeting to get to know the team members
  • d. Align personnel aspirations to available roles

Answer : a. Complete a skill set inventory

Explanation Regardless of the assertions made by the other managers who provided the team members, it is important to fully understand what skill sets each member has. After a skill set inventory is completed, team assignments can be made. PMI®, Program Management Professional (PgMP)® Examination Content Outline, 2011, 10

You are a program manager under contract to a government agency that is responsible for issuing visas and passports. You have been working on this program for eight years and are responsible for all the information and telecommunications functions for the agency. Your company realizes this program is essential to its success, and this is the frst time it has worked for this agency. Therefore, it established a governance structure to oversee the process. A best practice to follow as approvals for program changes are made is to—

Options are :

  • a. Update the governance plan based on decisions made (Correct)
  • b. Record the outcome in the knowledge management repository
  • c. Meet with your core team and project managers and inform them of the results of the Governance Board meeting
  • d. Meet with your program sponsor to discuss your next steps

Answer : a. Update the governance plan based on decisions made

Explanation Requests for approval of proposed program changes require a variety of updates to program documentation. One of these is to update the program’s governance plan. PMI®, The Standard for Program Management, 2013, 59

Assume you are leading a program in your gas company to promote more use of natural gas by customers. You have identifed a number of benefts to the use of natural gas, and one of them is environmental since it is much cleaner. It also is more cost effective. However, everyone resists change, and people are having trouble understanding the benefts of this program and how to best present these benefts to consumers, especially when the natural gas production facilities in your company are fully operational. This means that as the program manager you need to convince stakeholders that the risks associated with natural gas are low. As you do so, it is important therefore to concentrate on—

Options are :

  • a. Solely fnancial benefts
  • b. Both direct and tangible benefts
  • c. Intangible benefts and tangible benefts (Correct)
  • d. Measurable benefts

Answer : c. Intangible benefts and tangible benefts

Explanation In identifying benefts and preparing a benefts realization plan, categories of benefts are useful. They should be both tangible and intangible, along with risk avoidance. PMI®, Program Management Professional (PgMP)® Examination Content Outline, 2011, 13 Williams and Parr, 2006, 179

You have recently been appointed as Program Manager for a new program of work. You have consulted widely as a Program Manager but have not worked with this client before. As part of your induction process the Program Sponsor is reviewing the Benefit Realization plan with you. The Sponsor has advised that the Program Steering Committee have reviewed the plan and approved it. However on reviewing the plan you have identified that a significant section of the plan is missing. What would be the BEST approach you could take to remedy this situation?

Options are :

  • a. Discuss your concern with the Program Sponsor and request that work be completed within the wider program team to complete (Correct)
  • b. Advise the Program Sponsor that you have identified this shortcoming, and that you and your core team will draft the section and add to the plan to complete
  • c. As the benefit realization plan has been approved there is nothing further required from you but to execute the plan to deliver the benefits as identified
  • d. Complete a Benefits Map and add this to the plan so it is complete

Answer : a. Discuss your concern with the Program Sponsor and request that work be completed within the wider program team to complete

Explanation The identification of the organizational processes and systems impacted by the program is of vital importance, and planning work should not commence until this identification has been completed. As you are new to the company you would not remedy this on your own, or with your core team. You would need to consult with key stakeholders and possibly the Program Steering Committee themselves.

Finally, your program to develop the advanced polymer chemical for raincoats is near to completion. You have had seven projects in your program, and the last one should fnish in two months. You have been involving the people in your operations support group to be part of your program team meetings now for the last year and earlier included them on the distribution list for your status reports so they felt they were part of the team for success as you recognize transition planning is the key to benefts sustainment in program management. As a program manager, you also recognize the importance of ensuring that component transition requests are prepared. It is especially important during—

Options are :

  • a. Transition Planning
  • b. Direct and Manage Program Execution
  • c. Develop Program Management Plan
  • d. Program Beneft Delivery (Correct)

Answer : d. Program Beneft Delivery

Explanation This phase is where program components are planned, integrated, and managed to facilitate beneft delivery. It includes component transition and closure. PMI®, The Standard for Program Management, 2013, 68–70

Assume as you continue with this program to put in place a managementby-program culture into the Global Financial Corporation, you realize there are not that many in this worldwide corporation that possess actual experience in program management. But, your frst program will be in the area of portable fnancial transactions by any type of device—a phone, PDA, tablet, eReader, or computer. You recognize that with this program an expert in your corporation will be needed by two of the projects in the program at approximately the same time. Both project managers have included this person in their project management plans, resource assignment matrices, and project schedules. This is an example of—

Options are :

  • a. An assumption (Correct)
  • b. A constraint
  • c. Critical chain analysis
  • d. An issue to be resolved by the Governance Board

Answer : a. An assumption

Explanation Assumptions are considered to be true, real, or certain. In this situation, both project managers have assumed that this critical resource will be available as required. The program manager must work to resolve this situation. PMI®, PMI Lexicon of Project Management Terms. Available from http://pmi.org/lexicomterms

The program sponsor for a new customer-focused program in your organization submitted a business case to the Portfolio Review Board, which was approved. Then, your company merged with Company ABC, and it already has a comparable product in its pipeline. No one has done an inventory of Company ABC’s programs and projects to see if there are any overlaps with ones in your company, but you worked for ABC part-time last year before joining Company MNO. You should—

Options are :

  • a. Inform the sponsor in MNO (Correct)
  • b. Work with the sponsor in MNO to revise and resubmit the business case
  • c. Introduce the program manager in ABC to the MNO sponsor
  • d. Inform the Portfolio Manager in MNO

Answer : a. Inform the sponsor in MNO

Explanation As a practitioner in program/project management, we need to make decisions and act in an impartial and objective way. In this situation, it is necessary to take corrective action and avoid a conflict-of-interest situation.

Recognizing the importance of benefts realization and management, as a program manager, it has been noted that a best practice to follow is to be able to quantify as many benefts in your benefts realization plan as possible and also to be able to communicate their status as required quickly to stakeholders. You and your core team decided that a best practice to follow in your program to develop a new drug to cure bone cancer with limited if any side effects and to beat your competitors to market even with all the federal regulations was to—

Options are :

  • a. Use tangible benefts in your beneft realization plan
  • b. Have each stakeholder sign off on your benefts realization plan indicating his or her concurrence with it
  • c. Invite each stakeholder to regularly scheduled beneft reviews, which are included in your program’s roadmap
  • d. Maintain a benefts register (Correct)

Answer : d. Maintain a benefts register

Explanation A benefts register is a best practice and can be easily translated into a benefts report. It is useful to report the benefts and their status to stakeholders following the communications management plan. PMI®, Program Management Professional (PgMP)® Examination Content Outline, 2011, 13

One of your project managers (Project Manager A) has identifed an issue that has implications for three projects (A, B, and C). You met with this project manager and concurred with her estimate of the importance of the issue. You then convened a meeting of your Governance Board to determine the best way to resolve it. The Governance Board decided that proposed Project B is not required and that existing Project C should be terminated. It decided to add Project D. Your next step should be—

Options are :

  • a. Revisit and update your program documentation as required (Correct)
  • b. Inform the client of this issue and its impact
  • c. Meet with all the project managers and the core program team to discuss next steps
  • d. Offcially recognize and reward Project Manager A for bringing this issue to your attention

Answer : a. Revisit and update your program documentation as required

Explanation Planning is an iterative process. When components are initiated or terminated, all program-level documentation associated with the component needs to be updated to re?ect changes. PMI®, The Standard for Program Management, 2013, 61

Organizational culture can be expressed in many ways. One way is to determine whether an organization is ‘people based’ or ‘process based’. ‘People based’ meaning that the organization relies on the ability of their people to effectively execute work activities, whilst ‘process based’ means the organization relies on processes to ensure effective execution of work activities. All of the following are advantages of a ‘people based’ culture EXCEPT:

Options are :

  • a. ‘People based’ cultures provide a higher level of worker satisfaction
  • b. ‘People based’ cultures provide an environment that will retain high-achieving confident personnel
  • c. ‘People based’ cultures will provide an environment that will support complex programs (Correct)
  • d. ‘People based’ cultures provide a higher level of flexibility and adaptability

Answer : c. ‘People based’ cultures will provide an environment that will support complex programs

Explanation A process based environment is best suited for complex programs, as there is less reliance on people simply ‘knowing what to do’ and instead have developed processes that provide the framework for program execution The Handbook of Program Management – James T. Brown (Page 97)

You are managing a program that comprises new systems application development and maintenance activities. These applications are critical to your company, CDE, as they involve access to proprietary data. The systems must be available to your clients on a 24/7/365 basis. Much of the work on you program will be outsourced as you have an aggressive schedule to meet; fortunately CDE has a qualifed vendor list to simplify the acquisition process. This program has high visibility in CDE. You and your core team realize the high level of interest and have worked hard to identify the key stakeholders and determine their position toward your program. You have prepared your stakeholder engagement plan, and it has been approved by your sponsor and Governance Board. Now, the next step for you and your team is to—

Options are :

  • a. Provide guidelines for project-level stakeholder engagement (Correct)
  • b. Prepare a stakeholder inventory
  • c. Ensure the stakeholder management plan supports CDE’s strategic plan
  • d. Communicate to all stakeholders a need for change to the new systems applications

Answer : a. Provide guidelines for project-level stakeholder engagement

Explanation While the stakeholder engagement plan documents how stakeholders will be engaged throughout the life of the program, the program manager also provides guidelines for component stakeholder engagement to the individual projects and non-project work that are part of the program. PMI®, The Standard for Program Management, 2013, 49

Assume your organization selected OPM3 ®, and you hired an external consultant to perform the assessment. The consultant prepared an assessment report and an improvement report. As there are 488 Best Practices in OPM3 ®, your company is so new to program management and portfolio management, it only achieved 75 of these Best Practices. You are now leading an internal program to address the consultant’s prioritized improvement program. You have seven projects now in your program. As each project manager begins to identify the work to be done on their projects, you want to make sure the program’s scope encompasses all benefts to be delivered so you should—

Options are :

  • a. Follow the PMO’s project management standard
  • b. Make sure the context and framework are documented is a scope statement
  • c. Use a program work breakdown structure (Correct)
  • d. Prepare a benefts realization plan

Answer : c. Use a program work breakdown structure

Explanation Because the PWBS re?ects the total scope of the program, it encompasses all benefts (products and services) to be delivered by the program, including the deliverables produced by the components. PMI®, The Standard for Program Management, 2013, 105

Assume you have a Governance Board overseeing your program in your government agency. It is comprised of the top executives and political appointees as the program is ranked in the top fve in the portfolio. You have had to reduce some of the features originally planned for your program deliverables because of funding cuts. The Governance Board must determine—

Options are :

  • a. How corrective actions were applied
  • b. Whether the window of opportunity was compromised (Correct)
  • c. Actual resource use versus that projected
  • d. The number of issues escalated to you, as the program manager, and their effect on other aspects of the program or other programs in the agency

Answer : b. Whether the window of opportunity was compromised

Explanation Program Benefts and Program Governance are closely linked. The Governance Board, among other things, focuses on beneft delivery and ensuring programs deliver promised benefts. It, along with the program manager and other key stakeholders, may determine the window of opportunity was compromised by actual events in the program, one of which is feature reductions. Investments have time value, and shifts in component schedules may have additional fnancial impact. PMI®, The Standard for Program Management, 2013, 41

The program team have limited funds to complete the required estimations, there are no previous projects that are similar to what is to be estimated, and no publicly available estimating database exists. Which of the following will be of the MOST use in developing the estimate?

Options are :

  • a. Expert Opinion (Correct)
  • b. Parametric Estimating
  • c. Analogous Estimating
  • d. Statistical Estimating

Answer : a. Expert Opinion

Explanation Parametric and Statistical estimating are the same technique and rely on a statistic – usually found in an estimating database as the basis for estimates – which in this case do not exist. Analogous estimates require a previous and similar activity as the basis for estimates – which in this case do not exist either. Project Management – A Systems Approach to Planning, Scheduling and Controlling. Seventh Edition Table 14-14 (Page 782)

As regards team motivation, reward and recognition policies are often included as part of the program policies. Which of the following would not be deemed a reward or recognition policy?

Options are :

  • a. Incentive program based on team performance
  • b. Monthly awards for ‘Most Valued Program Team Member’
  • c. Leave granted for overtime worked by team members (Correct)
  • d. A professional development fund allocated on the basis of team members providing additional value to the program than expected

Answer : c. Leave granted for overtime worked by team members

Explanation Providing time off ‘in lieu’ would not be deemed a component of a reward policy.

Making the effort to establish alliances and partnerships outside of the program can support the program for many reasons. Which of the following will be LEAST affected by building valuable program alliances and partnerships outside of the program?

Options are :

  • a. Ability to obtain funding
  • b. Ability to reduce stakeholder influence (Correct)
  • c. Ability to share resources and knowledge
  • d. Ability to share accountability for benefit realization

Answer : b. Ability to reduce stakeholder influence

Explanation With additional outside partners and alliances the number of stakeholders on the program will increase, along with an increase in stakeholder influences on the program. Also program alliances and partnerships are likely to require sharing resources, risks and accountabilities and therefore the additional stakeholders are most likely to wield significant influence.

Often in establishing the program cost budget a management reserve is created. All of the following are criteria for when a management reserve may be required EXCEPT:

Options are :

  • a. When the program has a high level of uncertainty
  • b. When the program is likely to be in a cost overrun situation and there is a requirement to keep the program within budget (Correct)
  • c. When there is a probability of unforeseen circumstances that cannot be planned
  • d. When the program is a research based program with a schedule extending several years

Answer : b. When the program is likely to be in a cost overrun situation and there is a requirement to keep the program within budget

Explanation A management reserve is not used to cover up bad planning estimates or cost overruns. Project Management – A Systems Approach to Planning, Scheduling and Controlling. Seventh Edition Section 15.4 (Page 829)

One of the most devastating forces within a program can be an untrustworthy stakeholder. How BEST can the program manager deal with an untrustworthy stakeholder and minimize any impact to the program?

Options are :

  • a. Ensure all important communications relative to the program are documented and have traceability (Correct)
  • b. Ensure that all issues are recorded within the issues register and a process of escalation has been documented
  • c. Ensure that all responsibilities are recorded on the RAM
  • d. Ensure that all risks are recorded within the risk register and a process of escalation has been documented

Answer : a. Ensure all important communications relative to the program are documented and have traceability

Explanation Keeping a history with data and examples of events and impacts of untrustworthy behaviour or circumstances as well and ensuring a traceable history of key communications to all stakeholders will ‘protect’ the program as much as possible. Logging issues and risks for specific incidents will also be important however having traceable history on what the program team have communicated will provide evidence of performance, without which it may come to the program manager’s word against the stakeholder’s word. The Handbook of Program Management – James T. Brown (Page 62)

As the program manager for a new pipeline system that has as its goal no potential incidents of any type, you have a major challenge as your company in the past has had a poor safety record. This program is complex, and this goal will be diffcult to achieve. However, after working to plan the program for three years, your Steering Committee met and approved your program management plan. As you move to approve components to be part of your program, you need to review the—

Options are :

  • a. Component charter
  • b. Change requests
  • c. Business case
  • d. Component initiation requests (Correct)

Answer : d. Component initiation requests

Explanation A number of activities are required to verify the component supports the program’s outcomes before it is authorized; each component requires an initiation request. PMI®, The Standard for Program Management, 2013, 60–61, 69

You are enjoying your work as the program manager for the new ice cream program for your Fortune 500 company, which is so well known around the world for its cereal products. All resources are being provided internally, and everyone on the team is signing a confdentiality agreement so competitors are not aware of this new program. However, already resources are scarce in the organization working on cereal products. You have prepared your schedule and in doing so assumed the needed resources would be available. However, in a meeting with your Governance Board, you now realize you will need to do a lot of negotiating for resources. Fortunately, you have been successful and have three experienced project managers so far assigned who are supporting the three projects thus far in the program. It is important now since these project managers have been assigned that you evaluate their performance according to the—

Options are :

  • a. Project plan (Correct)
  • b. Program management plan
  • c. Benefts realization plan
  • d. Resource plan

Answer : a. Project plan

Explanation Project managers’ performance is evaluated according to their ability to execute the project according to the project plan. This approach is used to then maximize their contribution to achieving program goals. PMI®, Program Management Professional (PgMP)® Examination Content Outline, 2011, 10

You are the program manager for the International Air Traffc Association (IATA). The executives, representing all the airlines in the world, want to set up a global program for loyalty to airlines rather than the myriad of separate reward programs that now exist. A number of benefts were identifed in the business case and then in the benefts realization plan, which was approved by the Governance Board. You have a core team member who is maintaining a benefts register to track the status of each beneft, and you have assigned a person on your team to be the owner of each beneft. In a way, you have set this register up so it resembles the risk register you are using on your program. You found this has been a useful approach because—

Options are :

  • a. You need to regularly review your transition plan
  • b. Some corrective actions may be required as a result of risk mitigation activities (Correct)
  • c. The same person who owns the beneft tends to also be a risk owner to minimize the responsibilities of your team members
  • d. It is then easier to communicate beneft status to your Governance Board

Answer : b. Some corrective actions may be required as a result of risk mitigation activities

Explanation As a program manager, one must analyze and update the beneft realization and sustainment plans for uncertainty, risk identifcation, risk mitigation, and risk opportunity in order to determine if corrective actions are necessary and then communicate them to stakeholders. PMI®, Program Management Professional (PgMP)® Examination Content Outline, 2011, 13

As part of the performance domain ‘Defining the Program’ a task to establish a benefits realization plan is completed by estimating costs and benefits of the program in order to establish the program feasibility and obtain funding. Which of the following tools and techniques would NOT be used in this task?

Options are :

  • a. Analysis of alternatives
  • b. Review of Organizational strategic ‘fit’
  • c. Return on Investment analysis
  • d. Earned Value Analysis (Correct)

Answer : d. Earned Value Analysis

Explanation Earned Value Analysis establishes how the program is progressing according to plan/targets and is used as a monitoring and controlling tool – not as a tool to establish the feasibility of the program.

You are responsible for developing a new line of printers using advanced laser jets for the consumer market. The customers for your products are large retail outlets and certain online outlets. As program manager, it is critical that you have a good understanding of the needs of the end user. Therefore, you—

Options are :

  • a. Meet with customers to obtain a profle of the buying habits of their shoppers
  • b. Meet with customers to understand the wants and needs of their clients with respect to printer capability
  • c. Conduct market research to see what your competitors are offering
  • d. Meet with as many end users as is feasible to understand what features they would like in a printer (Correct)

Answer : d. Meet with as many end users as is feasible to understand what features they would like in a printer

Explanation In this situation, the program manager has two clients: the retail store that places orders for the printer and the end user who actually uses the product. To ensure that the best product is made that will satisfy the needs of the marketplace, the program manager should meet with as many end users as is feasible. Milosevic et al., 2007, 366

Assume you are working to change the culture of your organization to one that views its programs and projects as strategic assets and critical to overall success. You have been working on a team to defne the long-term objectives of the organization and to set forth vision and mission statements for employees that are meaningful and informative. In your efforts you recognize and your team has agreed that one of the indicators of the organization’s risk tolerance is found in its—

Options are :

  • a. Program management offce (PMO)
  • b. Portfolio (Correct)
  • c. Strategic plan
  • d. Program charter

Answer : b. Portfolio

Explanation The portfolio is where investment decisions are made, resources are allocated, and priorities are identifed. Thus, it is one of the truest measures of the organization’s intent, direction, risk tolerance, and progress. Program components must be aligned with the organization’s strategy to clearly show why they are being undertaken. PMI®, The Standard for Program Management, 2013, 11

On your program, you are continually spending the majority of your time communicating with stakeholders at all levels and in varying locations and coordinating activities. You also are preparing a number of status reports for different stakeholder groups and also for your Governance Board with its numerous program reviews and more rigorous stage gate reviews. Working as a program manager, you recognize the key distinctions between a project life cycle and a program life cycle. One of these distinctions is—

Options are :

  • a. Some projects may need to be integrated with others to provide program benefts (Correct)
  • b. The life cycle assists in the control and management of the project deliverables
  • c. Programs have a distinct life cycle that is not extended
  • d. The way the life cycle is set up means that project benefts cannot be realized immediately

Answer : a. Some projects may need to be integrated with others to provide program benefts

Explanation In a program, some projects may produce benefts that can be realized immediately, and others may deliver capabilities that must be integrated with those of other projects to realize benefts. The program life cycle may be extended as some projects transition and others begin. PMI®, The Standard for Program Management, 2013, 5, 19

As the program manager for the systems integration program for Globus Enterprises, which is under contract to the government of Moldova, you have a number of projects in your program. First, your program includes a hardware systems project. Second, you have an information systems project. Now, you recently added a software engineering project, and you plan to add a verifcation and validation project in the fourth quarter. Other projects also are on your roadmap. Your overall program success is measured in terms of—

Options are :

  • a. Benefts delivery (Correct)
  • b. Earned value
  • c. Each project’s adherence to its schedule
  • d. Products delivered according to specifcation

Answer : a. Benefts delivery

Explanation Success on programs is measured by the degree to which programs realize the needs and benefts for which they are undertaken. PMI®, The Standard for Program Management, 2013, 8

You are a member of your organization’s Program Selection Committee, which is conducting an off-site meeting to review the company’s fve major strategic goals, all of which are weighted equally. Goal 1 is to produce the highest possible quality products; goal 2 is to provide outstanding customer relationship management; goal 3 is to reduce reliance on external supply sources and maximize internal resources; goal 4 is to reduce manufacturing costs; and goal 5 is to maximize productivity. You are considering four programs and will recommend one to the CEO. Program A partially supports goal 1, fully supports goals 2, 3, and 4, and does not support goal 5. Program B fully supports goals 1, 3, 4, and 5, but does not support goal 2. Program C fully supports goals 1 and 2, partially supports goals 3 and 4, but does not support goal 5. Program D partially supports goals 1, 2, and 5, and fully supports goals 3 and 4. Considering this information, your recommendation should be to select—

Options are :

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

Answer : b. Program B

Explanation Programs should have a strategic ft with the organization’s long-term goals. In selecting a program to pursue, this is one area to consider. In this example, Program B fully supports four of the fve goals. PMI®, The Standard for Program Management, 2013, 23 Milosevic et al., 2007, 286

As regards Stakeholder Management, which of the following is NOT TRUE :-

Options are :

  • a. Stakeholder Management is an ongoing process that is never completed in the program life cycle
  • b. Stakeholder Management is an important factor in implementing organizational change
  • c. Stakeholder Management needs to consider both ‘positive’ stakeholders and ‘negative’ stakeholders
  • d. Stakeholder Management is primarily concerned with internal stakeholders (Correct)

Answer : d. Stakeholder Management is primarily concerned with internal stakeholders

Explanation Stakeholder management must pay equal attention to internal and external stakeholders. It is the level of impact of the program on the stakeholder. The stakeholders ability to influence or exert power on the program that will determine whether the stakeholder is key or not. The Standard for Program Management Second Edition Chapter 14 Overview (Page 227)

Assume you are a member of a program team that is working to provide a better way to notify citizens in your City about the possibility of tornadoes. Now, the warning allows them only minutes to seek safety, and everyone believes a system such as that available for hurricanes and cyclones is necessary. As a resident of this city, you are pleased to be on the core team. Your program manager has asked you to be responsible for ensuring the program’s stakeholders, of which there are many, receive information in a timely manner. Among other things, you must—

Options are :

  • a. Show “what’s in it for me? (Correct)
  • b. Collect stakeholder feedback on information timeliness
  • c. Be proactive in terms of both preventive and corrective actions
  • d. Prepare a stakeholder engagement plan

Answer : a. Show “what’s in it for me?

Explanation All stakeholders should receive timely information about the program. When status information, cost information, risk analysis, and other relevant information are distributed, a best practice is to address the “what’s in it for me? question. PMI®, The Standard for Program Management, 2013, 75

Program performance analysis is best completed using metrics. All of the following metrics could be considered by the program manager for program performance analysis EXCEPT:

Options are :

  • a. Feedback from the customer
  • b. Program schedule stability
  • c. Process Improvements initiated
  • d. Unresolved project issues (Correct)

Answer : d. Unresolved project issues

Explanation This is a common project performance metric and not a program performance metric. The Handbook of Program Management – James T. Brown (Page 235 -237)

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