MEM Principles of Project Management 2 — Questions and Answers
Question 1: A project manager notices that the cost performance index (CPI) is 0.85. What does this indicate?
- The project is under budget
- The project is getting $0.85 of value for every $1 spent (Correct answer)
- The project will finish 15% ahead of schedule
- The project has 85% stakeholder approval
Correct answer: The project is getting $0.85 of value for every $1 spent
A CPI below 1.0 means the project is over budget, receiving less value than the money spent.
Question 2: Which conflict resolution technique is generally considered most effective for achieving long-term resolution in project teams?
- Smoothing
- Forcing
- Compromising
- Collaborating (problem-solving) (Correct answer)
Correct answer: Collaborating (problem-solving)
Collaborating addresses the root cause by incorporating multiple viewpoints to reach a win-win solution.
Question 3: What is the primary purpose of a responsibility assignment matrix (RAM) such as a RACI chart?
- To track project budget allocation by department
- To document project risks and owners
- To map work packages to team members' roles (Correct answer)
- To schedule critical path activities
Correct answer: To map work packages to team members' roles
A RACI chart clarifies who is Responsible, Accountable, Consulted, and Informed for each work package or activity.
Question 4: A project is in execution when a major stakeholder requests a significant scope change. The FIRST action the project manager should take is:
- Implement the change immediately to maintain stakeholder satisfaction
- Reject the change to protect the baseline
- Evaluate the impact and submit it through the integrated change control process (Correct answer)
- Escalate directly to the project sponsor
Correct answer: Evaluate the impact and submit it through the integrated change control process
All scope changes must be assessed for schedule, cost, and quality impacts before being approved or rejected through formal change control.
Question 5: In which process group does the project manager formally accept completed deliverables from the project team?
- Planning
- Executing (Correct answer)
- Monitoring and Controlling
- Closing
Correct answer: Executing
Validate Scope, which results in formally accepted deliverables, occurs in the Executing process group.
Question 6: What does 'management reserve' represent in project cost management?
- Budget set aside for known risks identified in the risk register
- Extra time added to the schedule for critical path activities
- A portion of the project budget withheld for unforeseen scope changes (Correct answer)
- Contingency held by the project manager for approved scope
Correct answer: A portion of the project budget withheld for unforeseen scope changes
Management reserve is controlled by senior management for unknown unknowns and is not part of the project cost baseline.
Question 7: Which scheduling technique identifies the longest path through a project network to determine the minimum project duration?
- Program Evaluation and Review Technique (PERT)
- Critical Path Method (CPM) (Correct answer)
- Resource leveling
- Monte Carlo simulation
Correct answer: Critical Path Method (CPM)
CPM calculates the longest path of dependent activities, revealing the minimum time needed to complete the project.
MEM Principles of Project Management 2
A project manager notices that the cost performance index (CPI) is 0.85.
What does this indicate?