PMI-001 Q&A – Section 2: Integration Management (171-180)

Section 2: Integration Management

You have a choice of four ongoing projects that you can take over as project manager. Project 1 has a benefit cost ratio (BCR) of 1.4, is a high priority project, and has a critical path length of 16 months. Its cost performance index (CPI) is 1.2. Project 2 has a schedule performance index (SPI) of 1.1, is using three critical resources, has a low priority, and has a BCR of 1.1. Project 3 has a CPI of 1.2, an SPI of 0.89, a BCR of 1.6, and a critical path length of 19 months. Project 4 has a CPI of 0.82, an activity with 33 days of float, a hard-to-get resource assigned to activity L, and a priority of keeping cost low. Based on the above, which project would you prefer to take over?
A. Project 1
B. Project 2
C. Project 3
D. Project 4
Answer: A

The larger the BCR, SPI, and CPI the better. A project with high priority normally holds more senior management commitment.
Source: PMP® Exam Prep Page: 108

You are asked to prepare a budget for completing a project that was started last year and then shelved for six months. All the following would be included in the budget EXCEPT:
A. Fixed costs.
B. Sunk costs.
C. Direct costs.
D. Variable costs.
Answer: B
Sunk costs (choice B) are expended costs. The rule is that they should not be considered when deciding whether to continue with a troubled project.
Source: PMP® Exam Prep Page: 110

Your department is currently working on four urgent projects when it is assigned a major new project. To staff the new project, one of the four urgent projects needs to be terminated. The benefit cost ratios (BCRs) for the four projects are listed. Which would you select for termination?
A. 0.8
B. 1.1
C. 0.9
D. 1.9
Answer: A
The lowest benefit cost ratio should be selected for termination.
Source: PMP® Exam Prep Page: 108

To accommodate a new project in your department, you need to move resources from one project to another.
Because your department is currently working at capacity, moving resources will inevitably delay the project from which you move the resources. It would cause the LEAST negative impact if you move resources from which of the following projects?
A. Project A with a benefit cost ratio of 0.8, no project charter, and four resources
B. Project B with a net present value of $60,000, 12 resources, and variable costs between US $1,000 and $2,000 per month
C. Project C with an opportunity cost of US $300,000, no project control plan, and an internal rate of return of 12 percent
D. Project D with indirect costs of US $20,000 and 13 resources
Answer: A
A project without a charter is a project without support. The information provided for the other projects does not justify selecting them. Even the number of resources is not relevant, since the number of resources for the new project is not supplied.
Source: PMP® Exam Prep Page: 102

You are in the middle of project executing and find that you are running out of money due to unanticipated changes. What is the BEST thing to do?
A. Crash or fast track the project.
B. Reevaluate the risk analysis and contingency funding.
C. Ask for a change to the project budget.
D. Use resources that do not charge against the project.
Answer: B
Choices A and C do not solve the underlying problem. Choice D is unethical. Choice B includes looking at the problem and anticipating similar future problems.
Source: PMP® Exam Prep Page: 128, 194

A management team is trying to decide if it will continue working on a project that has spent US $500,000.
The original estimate for work completed to date was US $200,000. The difference between the actual cost and the original estimate, is a(n):
A. Customer cost.
B. Example of how bad the schedule was.
C. Direct cost.
D. Sunk cost.
Answer: D
If you thought the answer was B, reread it. It says, “schedule.” There is no way to know if the schedule was bad.
Source: PMP® Exam Prep Page: 110

A project has a payback period of nine months. What does this mean?
A. It will take the project nine months to start incurring costs.
B. The project will be complete in nine months.
C. The first nine months of the project will provide profit to the company.
D. It will take the project nine months to cover the investment and start generating revenue.
Answer: D
The payback period is how long it will take the company to recoup the investment in the project.
Source: PMP® Exam Prep Page: 108

The project management office is worried about the quality of the company’s various projects. They want to know which projects are having problems and which ones are doing well. If the PMO receives the following information, which project should they be the MOST concerned about?
A. Project A with a benefit cost ratio of 2.3
B. Project B with a benefit cost ratio of 1.3
C. Project C with a benefit cost ratio of negative 2.3
D. Project D with a benefit cost ratio of negative 1.3
Answer: C
In choice C, the costs are substantially higher than the benefits. Therefore, management should be the most concerned about this project.
Source: PMP® Exam Prep Page: 108

At the end of a two-year project, the key stakeholders agree that the project has met all its objectives outlined in the project charter and further defined in the scope and statement of work. The project was within budget and has finished on time. The management of one of the functional areas is quite upset because over half of his staff quit during the project citing long hours and lack of management support. What is the MOST correct statement about this project?
A. The project was within budget and time and achieved its objectives. Upper management is responsible for providing adequate resources, and the project manager successfully managed the project with available resources.
B. The project should be measured against how successfully it met its project charter. This was not done during this project.
C. The project manager did not obtain adequate resources and did not set a realistic deadline based on resources available.
D. The functional manager is responsible for his staff and obtaining adequate resources to meet the schedule once it has been set. The project and project manager achieved all of its objectives set forth in the project charter.
Answer: C
The project manager is responsible for obtaining upper management buy-in to provide adequate resources, set realistic schedules, and promote team building.
Source: PMP® Exam Prep Page: 311

The project manager is working to clearly describe the level of involvement expected from everyone involved in the project in order to prevent rework, conflict, and coordination problems. Which of the following BEST describes the project manager’s efforts?
A. Develop Project Management Plan and Plan Quality
B. Problem solving, control, and discovering gold plating
C. Verify Scope and Control Quality
D. Monitor and Control Risks, Develop Project Team, and lessons learned
Answer: A
Notice that this question uses the words “working to clearly describe” and “prevent.” Taken together, they should tell you the project is in the planning process group. This eliminates choices B, C, and D. Coordination and conflict prevention relate to Develop Project Plan, and preventing rework is part of Plan Quality. Conflict relates to communications management plans.
Source: PMP® Exam Prep Page: 112, 280

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