GIAC Certified Project Manager v1.0 (GCPM)

Answer : D

Explanation:
Answer option D is correct.
A resource breakdown structure (RBS) is a visual decomposition of the program scope and the resources needed in order to create the things defined within the program scope. The resource breakdown structure is a hierarchical structure that is used to represent the enterprise resources. It also enables a user to create program plans with detailed resource assignments. It also allows comparison of the workload with detailed resource availabilities. The resource breakdown structure also enables roll-up of both resource assignments and availability data to a higher level.
Answer option C is incorrect. A Work Breakdown Structure (WBS) is a visual decomposition of the project scope. The project scope is taken and broken down into smaller, more manageable units. Each of these units can be broken down again and again until you define the smallest item in the WBS called the work package.
Project groups and the project's discrete work elements are defined in a way that helps organize and define the total work scope of the project. A WBS element may be a product, data, a service, or any combination. WBS also provides the necessary framework for detailed cost estimating and control along with providing guidance for schedule development and control. Answer option B is incorrect. A Gantt chart is a type of bar chart that illustrates a project schedule. Gantt charts illustrate the start and finish dates of the terminal elements and summary elements of a project. The terminal elements and summary elements comprise the work breakdown structure of the project. Some Gantt charts also show the dependency (i.e., precedence network) relationships between activities. The Gantt charts can be used to show the current schedule status using percent-complete shadings and a vertical "TODAY" line.
Answer option A is incorrect. A RACI chart is a responsibility assignment matrix using the legend of responsible, accountable, consult, and inform.
Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth Edition"
Chapter: Time and Cost Management
Objective: Resource Breakdown Structures

Answer : A

Explanation:
Answer option A is correct.
Activity E has four days of float. The entire project will take 19 days to complete. Float, or slack, in project management terms, is the amount of time an activity can be delayed without affecting any subsequent activities. There are two types of floats:
-> Free Float: It is the amount of time a schedule activity can be delayed without delaying the early start date of any immediately following schedule activities.
-> Total Float: It is the total amount of time that a schedule activity may be delayed from its early start date without delaying the project finish date, or violating schedule constraint.
Float is calculated by using the critical path method technique.
Answer option B is incorrect. Activity E is not on the critical path.
Answer options D and C are incorrect. These are incorrect calculations of the amount float available for Activity E.
Reference: A Guide to the Project Management Body of Knowledge, (PMBOK Guide)
Chapter: Time and Cost Management
Objective: Critical Path Scheduling

Answer : B

Explanation:
Answer option B is correct.
According to the question, the schedule variance (SV) of the project is 15, which is a positive value. The positive SV depicts that the project is ahead of the planned schedule.
Schedule variance (SV)
Schedule variance (SV) is a earned value technique used for measuring the schedule performance on a project. The variance signifies that the schedule is ahead or behind what was planned for this period in time. The schedule variance is calculated based on the following formula:
SV = Earned value (EV) - Planned value (PV)
If the resulting schedule is negative, it indicates that the project is behind schedule. A value greater than 0 shows that the project is ahead of the planned schedule. A value of 0 indicates that the project is right on target.
Answer option A is incorrect. The negative SV means that the project is behind the schedule.
Answer option C is incorrect. The zero SV means that the project is right on target.
Answer option D is incorrect. This result can be drawn by looking at the cost variance (CV) of the project.
Cost variance (CV)
Cost variance (CV) is a measure of cost performance of a project. The variance notifies if costs are higher than budgeted or lower than budgeted. The cost variance is calculated based on the following formula:
CV = Earned value (EV) - Actual cost (AC)
A positive value means that spending is less than budgeted, whereas a negative value indicates that costs are higher than originally planned for the project.
Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth edition"
Chapter: Time and Cost Management
Objective: Earned Value Analysis and Forecasting

Answer : A

Explanation:
Answer option A is correct.
The project scope statement is important for risk identification. Project scope statement is the narrative description of the project scope. It includes major deliverables, project assumptions, project constraints, and a description of work. It helps developing a common understanding of project scope among the stakeholders. It is a documented description of the project to answer questions such as What is being produced?, How is it being produced?, What is included?, etc.
Answer option B is incorrect. Residual risks are generally smaller risks that are created by a risk response.
Answer option C is incorrect. The return on investment is a benefits-measurement approach for project selection, rarely risk management.
Answer option D is incorrect. Referent power describes the power a project manager has when he calls on someone else's power to make project decisions.
Reference: "A Guide to the Project Management Body of Knowledge, (PMBOK Guide)"
Chapter: Quality and Risk Management
Objective: Risk Identification and Assessment

Answer : A

Explanation:
Answer option A is correct.
Deliverables are produced as outputs from the processes performed to accomplish the project work planned and scheduled in the project management plan.
Answer Option D is incorrect. A Project Charter is a part of project initiation and is not an output of the direct and managing project work.
Answer Option C is incorrect. Expert Judgment is a tool/technique that could be used to develop various documents like the project management plan, etc. It is not an output of the direct and managing project work.
Answer Option B is incorrect. Lessons learned is a document which collects the experiences of all project team members, and is generally part of the Project
Closing process.
Reference: The Project Management Body of Knowledge, Fifth edition, Section 4.3, Page 79
Chapter: Procurement and Project Integration
Objective: Finalizing Deliverables

Answer : C

Explanation:
Answer option C is correct.
Project scope management is concerned with defining and controlling what is or is not included in the project.
Project Scope Management is one of the nine Project Management Knowledge areas. It is a group of the following processes required to ensure that the project includes all the work required, and only the work required, to complete the project:
-> Collect Requirements
-> Define Scope
-> Create Work Breakdown Structure (WBS)
-> Verify Scope
-> Control Scope
The term "Scope" may refer to product scope or project scope.
Project Scope Management includes the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully. Project Scope Management is primarily concerned with defining and controlling what is and is not included in the project.
Answer option D is incorrect. Risk management is a continuous process. The process from the threats to risks and then finally to security measures is known as risk management. In this process, the risks are first identified, then examined, and then finally reduced to an acceptable level. The process is applied to all aspects of the operational processes.
Answer option B is incorrect. The project reporting structure defines who reports to whom, not the preferences and requirements for communication.
Answer option A is incorrect. Project Communications Management is one of the nine Knowledge Areas. It employs the processes required to ensure timely and appropriate generation, collection, distribution, storage, retrieval, and ultimate disposition of project information. The following processes are part of Project
Communications Management:
-> Identify Stakeholders
-> Plan Communications
-> Distribute Information
-> Manage Stakeholder Expectations
-> Report Performance
The Project Communications Management processes provide the critical links among people and information that are necessary for successful communication.
These processes interact with each other and with the processes in the other Knowledge Areas as well.
Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth edition"
Chapter: Project Charter and Scope Management
Objective: Scope Verification and Control

Answer : ABC

Explanation:
Answer options C, A, and B are correct.
The inputs and outputs of the Perform Integrated Change Control process are as follows:
-> Inputs

Project management plan -

Work performance information -

Change request -
Enterprise environmental factors

Organizational process assets -
-> Outputs

Change request status update -

Project management plan update -

Project document update -
Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth edition"
Chapter: Procurement and Project Integration
Objective: Forecasting and Integrated Change Control

Answer : D

Explanation:
Answer option D is correct.
The project information is a deliverable that the performing organization retains. The project records may contain information that is sensitive to the work your company does, human resource records, and even profit margin information.
Answer option B is incorrect. The project records stay with the performing organization unless the contract stipulates otherwise.
Answer option A is incorrect. The project records should not be destroyed as they are part of a project's historical information.
Answer option C is incorrect. There is no reason to archive the records in two places. The performing organization should retain the project information.
Reference: A Guide to the Project Management Body of Knowledge, (PMBOK Guide)
Chapter: Procurement and Project Integration
Objective: Finalizing Deliverables

Answer : BCD

Explanation:
Answer options D, B, and C are correct.
The Perform Quality Control process is one of the ten processes grouped in the Monitoring and Controlling Process group. During the Perform Quality Control process, results of executing the quality activities are recorded and monitored in order to assess performance and recommend necessary changes.

Inputs -
Following are the seven inputs for the Perform Quality Control process:
-> Project management plan
-> Quality metrics
-> Quality checklists
-> Work performance measurements
-> Approved change requests
-> Deliverables
-> Organizational process assets

Outputs -
Following are the seven outputs of the Perform Quality Control process:
-> Quality control measurements
-> Validated changes
-> Validated deliverables
-> Organizational process assets updates
-> Change requests
-> Project management plan updates
-> Project document updates
Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth edition"
Chapter: Quality and Risk Management
Objective: Quality Control and Change Control

Answer : D

Explanation:
Answer option D is correct.
The Initiation Process Group contains processes to define a new project or a new phase of an existing project by obtaining authorization to start the project of phase. The Initiation Process group contains two processes:
-> Develop Project Charter
-> Identify Stakeholder
These processes define initial scope and initial financial resources. In this phase of the project, internal and external stakeholders who will interact and influence the overall outcome of the project are identified. Project Charter and stakeholder register are created in this phase. Although the project management team may help write the project charter, approval and funding are handled external to the project boundaries.
Answer option A is incorrect. Monitoring and controlling is a process group or stage that starts when the project is in the executing stage. This process overlaps the executing stage. Monitoring and controlling consists of those processes performed to observe project execution, so that potential problems can be identified in a timely manner and corrective action can be taken, when necessary, to control the execution of the project. The key benefit is that project performance is observed and measured regularly to identify variances from the project management plan. The monitoring and controlling process includes the following:
-> Measuring the ongoing project activities (where we are)
-> Monitoring the project variables (cost, effort, etc.) against the project management plan and the project performance baseline (where we should be)
-> Identifying corrective actions to properly address issues and risks (How can we get on track again)
-> Influencing the factors that could circumvent integrated change control, so that only approved changes are implemented
In multi-phase projects, the monitoring and controlling process also provides feedback between project phases in order to implement corrective or preventive actions to bring the project into compliance with the project management plan.Answer option C is incorrect. The planning process group is the second process group or stage of a project. After the Initiating stage, the system is designed. Occasionally, a small prototype of the final product is built and tested. Testing is generally performed by a combination of testers and end users, and can occur after the prototype is built or concurrently. The results of the design stage should include a product design that:
-> satisfies the project sponsor, end user, and business requirements
-> functions as it was intended
-> can be produced within quality standards
-> can be produced within time and budget constraints
Controls should be in place that ensures that the final product will meet the specifications of the project charter.
Answer option B is incorrect. The executing process group is a stage or phase of a project. It starts after the planning phase of a project is over. It consists of the processes used to complete the work define

Answer : B

Explanation:
Answer option B is correct.
The Develop project charter is the process which formally permits the initiation of a project and marks the kickoff for all consequent development activities to begin. The development of a project charter is performed by the project team as a whole, or it can also be done by the project leader. When finished, it is brought to the project team for review or signoff. It can also be conducted by two other distinct parties.
Answer option A is incorrect. Develop project scope statement signifies the activity that occurs during the early period of planning in which the project team or project leader determines what should be the project's project scope statement.
Answer option C is incorrect. Develop project management plan signifies the act of documenting the specific list of all items that are going to be important to the successful definition, integration, and preparation of all subordinate plans into the final and ultimate project management plan.
Answer option D is incorrect. Develop project team signifies the early stage planning process in which the fundamental core of the project consists of the actual project participants managing the team.
Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth edition"
Chapter: Project Charter and Scope Management

Objective: Project Charters -

Answer : C

Explanation:
Answer option C is correct.
This approach uses rounds of anonymous surveys to generate a consensus of project risks. Delphi is a technique to identify potential risk. In this technique, the responses are gathered via a questionnaire from different experts and their inputs are organized according to their contents. The collected responses are sent back to these experts for further input, addition, and comments. The final list of risks in the project is prepared after that. The participants in this technique are anonymous and therefore it helps prevent a person from unduly influencing the others in the group. The delphi technique helps in reaching the consensus quickly.
Answer option D is incorrect.The casual/econometric forecasting method uses the assumption that it is possible to identify the underlying factors, which might influence the variable being forecasted. For example, sales of umbrellas might be associated with weather conditions. If the causes are understood, projections of the influencing variables can be made and used in the forecast. Some examples of casual/econometric forecasting method are as follows:
-> Regression analysis using linear regression or non-linear regression
-> Autoregressive moving average (ARMA)
-> Autoregressive integrated moving average (ARIMA)
-> Econometrics
Answer option A is incorrect. Time series methods use historical data as the basis of estimating future outcomes. This category includes earned value, moving average, extrapolation, linear prediction, trend estimation, and growth curve.
Answer option B is incorrect. The judgmental forecasting method incorporates intuitive judgments, opinions and subjective probability estimates. Some examples of judgmental forecasting are as follows:
-> Composite forecasts
-> Surveys
-> Delphi method
-> Scenario building
-> Technology forecasting

Forecast by analogy -

Answer : A

Explanation:
Answer option A is correct.
Cost risk evaluates the probability of loss due to cost overrun. It is the measure of chance that, due to unfavorable events, the planned or budgeted cost of events can be exceeded.
Answer option B is incorrect. Residual risk is the risk or danger of an action or an event, a method or a (technical) process that still conceives these dangers even if all theoretically possible safety measures would be applied. The formula to calculate residual risk is (inherent risk) x (control risk) where inherent risk is (threats vulnerability).
Answer option D is incorrect. Secondary risk is a risk that arises as a straight consequence of implementing a risk response. The secondary risk is an outcome of dealing with the original risk. Secondary risks are not as rigorous or important as primary risks, but can turn out to be so if not estimated and planned properly.
Answer option C is incorrect. Value at risk (VAR) is used to calculate the highest possible loss in a defined period, i.e., day, week, or year with a confidence level of usually 95% or 99%. VAR is used by banks, security organizations, and corporations that are involved in business and additional possessions. VAR calculates risks when they occur, and is an essential consideration when organizations make trading or hedging decisions.
Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth edition"
Chapter: Quality and Risk Management

Objective: Time and Cost Risks -

Answer : B

Explanation:
Answer option B is correct.
A make-or-buy analysis is used to verify whether a particular work can best be accomplished by the project team or must be purchased from outside sources. The budget constraints can influence the make-or-buy decisions. A make-or-buy analysis must consider all related costs; both direct and indirect support costs.
Answer option D is incorrect. Risk analysis is a method or a technique that can be used to identify and assess factors that may hinder the successful completion of a project or the achievement of a goal. It is also known as Project Impact Analysis or PIA. Risk analysis can also be used to determine business needs to start a project.
Answer option A is incorrect. Expert Judgment is a term that refers a specifically to a technique in which judgment is made based upon a specific set of criteria and/or expertise that has been acquired in a specific knowledge area, or product area, a particular discipline, an industry, etc. When project conflicts arise, expert judgment is used to evaluate the inputs into the process. Specifically, expert judgment is used to assess the product description, the project-selection criteria, and the validity of the historical information. In addition, expert judgment could be used to identify key assumptions and constraints. The expert can be anyone from within or external to the project team that has the required specialized knowledge and/or experience relevant to the goals of the project can be used as a source of expert judgment. Just who is an expert? While SMEs (Subject Matter Experts), customers, industry experts, consultants are all examples of experts, it doesn't have to be a person who is considered the ultimate in that sphere. It could be anyone who has the required experience to provide the input and judgment required to address the conflict.
Answer option C is incorrect. The type of contract to be used and the specific contract terms and conditions fix the degree of risk being assumed by the buyer and seller.
Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth edition"
Chapter: Procurement and Project Integration
Objective: Make vs. Buy Analysis

Answer : B

Explanation:
Answer option B is correct.
Critical activity is a specific schedule activity on the critical path that takes place within a project schedule. Critical activities are mainly determined during the execution and deployment of the critical path method. In project management terms, critical activity refers to being on the major critical path, the most important path of life of an activity.
Critical activity can also be defined as the work elements that must be carefully monitored, documented, and managed to make the success of an organization, program, or project. An activity that has a total float equal to zero is believed to be a 'critical activity', which means if an interruption in the finish time of an activity occurs, then the entire project will be delayed by the same amount of time. A critical activity generally has free float equal to zero.
Answer options C, A, and D are incorrect. These are not valid answers for this question.
Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth edition"
Chapter: Time and Cost Management
Objective: Critical Path Scheduling