BSE Bachelor of Science in Engineering Management: Project Management Fundamentals 2 — Questions and Answers
Question 1: Which project management process group is responsible for defining and authorizing a project or phase?
- Planning
- Initiating (Correct answer)
- Executing
- Monitoring and Controlling
Correct answer: Initiating
The Initiating process group formally authorizes the project and defines its initial scope and resources.
Question 2: A project manager notices that the Earned Value (EV) is $50,000 and the Actual Cost (AC) is $65,000. What does this indicate?
- The project is under budget
- The project is on schedule
- The project is over budget (Correct answer)
- The project has a positive cost variance
Correct answer: The project is over budget
A negative cost variance (EV - AC = -$15,000) means the project has spent more than the budgeted value of work completed.
Question 3: What is the primary purpose of a project charter?
- To detail the project schedule
- To formally authorize the project and grant the PM authority (Correct answer)
- To list all project risks
- To define the work breakdown structure
Correct answer: To formally authorize the project and grant the PM authority
The project charter formally authorizes the project and grants the project manager the authority to apply organizational resources.
Question 4: In the context of the Critical Path Method (CPM), what is 'float' (also called slack)?
- The total project duration
- The amount of time an activity can be delayed without delaying the project end date (Correct answer)
- The difference between planned and actual costs
- The buffer added to risk-prone activities
Correct answer: The amount of time an activity can be delayed without delaying the project end date
Float or slack is the amount of time a non-critical activity can be delayed without affecting the project's overall completion date.
Question 5: Which conflict resolution technique involves finding a solution that satisfies all parties to some degree?
- Forcing
- Avoiding
- Compromising (Correct answer)
- Withdrawing
Correct answer: Compromising
Compromising seeks a solution where each party gives something up, resulting in a mutually acceptable outcome.
Question 6: A project's Planned Value (PV) is $80,000 and Earned Value (EV) is $60,000. What is the Schedule Variance (SV)?
- $140,000
- $20,000
- -$20,000 (Correct answer)
- $0
Correct answer: -$20,000
Schedule Variance = EV - PV = $60,000 - $80,000 = -$20,000, indicating the project is behind schedule.
Question 7: Which tool is most useful for identifying the root cause of a project quality problem?
- Gantt chart
- Fishbone (Ishikawa) diagram (Correct answer)
- RACI matrix
- Responsibility assignment matrix
Correct answer: Fishbone (Ishikawa) diagram
The fishbone (Ishikawa) diagram visually maps potential causes of a problem to identify its root cause.
BSE Bachelor of Science in Engineering Management: Project Management Fundamentals 2
Which project management process group is responsible for defining and authorizing a project or phase?