PMP?: 5 Multiple-Select Questions with Detailed Explanations

1..A multinational financial services firm has established an internal initiative to implement a customer relationship management (CRM) system. Which of the following accurately distinguishes between the project and operations? (Choose two)

A. The design and deployment of the CRM system are part of operations, as they involve regular business processes.

B. The project includes the CRM system's design and deployment, as it has a defined objective, timeline, and end date.

C. Operations include the ongoing use, maintenance, and improvement of the CRM system after deployment.

D. The CRM system’s deployment itself is part of operations because it is essential for daily business functions.

E. Post-implementation support and maintenance are part of the project, as they are temporary activities with a clear timeline.

Correct Answers: B. The project includes the CRM system's design and deployment, as it has a defined objective, timeline, and end date. C. Operations include the ongoing use, maintenance, and improvement of the CRM system after deployment.

Explanation: B. Project work includes the design and deployment of the CRM system, which is temporary, with a specific goal, timeline, and defined end. C. Operations involve the ongoing activities after the project ends, such as using, maintaining, and improving the CRM system as part of regular business functions.

A. Design and deployment are part of the project, not operations, as they are temporary and specific to achieving the project goal. D. Once the CRM system is deployed, it becomes part of operations, but the deployment itself is a project activity, not operations. E. Post-implementation support and maintenance are part of operations, as they are continuous and ensure the system remains functional.

2. A multinational software company is undertaking a project to develop a new mobile application that will serve customers in various countries. The project team must navigate different time zones, cultural norms, and security regulations while using an established software development process. Which of the following are examples of relevant Organizational Process Assets (OPAs)? (Choose three.)

A. Established software development process guidelines video tutorial

B. Legal and security regulations

C. Internal project management software tools

D. External stakeholders’ cultural expectations

E. Previous project lessons learned

Correct Answers: C. Internal project management software tools, E. Previous project lessons learned, A. Established software development process guidelines video tutorial

Explanation: C. Internal project management software tools are OPAs, as they are internal assets that help the team manage the project efficiently. E. Previous project lessons learned are OPAs, as they provide insights from past projects that can inform decision-making in the current project. A. The established software development process is an OPA because it’s a repeatable internal process that guides how software projects are executed.

B. Legal and security regulations are Enterprise Environmental Factors (EEFs), not OPAs, as they come from external sources. D. External stakeholders' cultural expectations are EEFs, as they influence the project but come from outside the organization.

3.. A global manufacturing company is launching a project to develop a new automated production line. The project requires adherence to international quality standards, collaboration with external vendors, and the integration of cutting-edge machinery. As part of project planning, the project manager considers several internal and external influences. Which of the following are examples of relevant Enterprise Environmental Factors (EEFs)? (Choose three.)

A. International quality standards

B. Project management templates and tools

C. Vendor relationships and contracts

D. Organizational risk management policy journals

E. Local governmental regulations for manufacturing

Correct Answers: A. International quality standards, C. Vendor relationships and contracts, E. Local governmental regulations for manufacturing

Explanation: A. International quality standards are external EEFs that provide required guidelines for the project’s execution to ensure global compliance. C. Vendor relationships and contracts are external EEFs that impact how the project will manage third-party suppliers and ensure timely delivery of materials. E. Local governmental regulations are external EEFs that dictate how the project should be executed to meet legal requirements in the region.

B. Project management templates and tools are Organizational Process Assets (OPAs), not EEFs, as they are internal resources. D. Organizational risk management policy journals are OPAs, not EEFs, as they are internal frameworks for managing project risks.

4..A company is evaluating several potential projects to pursue for the upcoming fiscal year. Some projects focus on immediate improvements, while others are aimed at long-term strategic growth. The company is looking for methods to evaluate projects based on long-term financial returns and strategic alignment. Which of the following methods are most appropriate for evaluating projects based on long-term value and strategic fit? (Choose three.)

A. Net Present Value (NPV)

B. Benefit-Cost Ratio (BCR)

C. Payback Period

D. Planning Poker

E. Risk Breakdown Structure (RBS)

Correct Answers: A. Net Present Value (NPV), B. Benefit-Cost Ratio (BCR), C. Payback Period

Explanation: A. Net Present Value (NPV) evaluates projects based on the difference between the present value of cash inflows and outflows, making it ideal for assessing long-term financial returns and viability. B. Benefit-Cost Ratio (BCR) compares the benefits of a project to its costs, which helps determine whether the project is financially viable over its lifetime, making it suitable for long-term evaluation. C. Payback Period is used to measure how quickly a project can recover its initial investment. While it focuses more on short-term cash flow, it can still provide useful insight for projects with strategic alignment.

D. Planning Poker is a technique used in Agile environments to estimate effort and complexity, not to evaluate the long-term financial viability of a project. E. Risk Breakdown Structure (RBS) is used to categorize and analyze risks, not to evaluate financial or strategic factors of a project.

5. A manufacturing company is evaluating its cost of quality for an upcoming project. The project manager needs to assess the cost of conformance, which refers to the costs incurred to ensure that the project meets quality standards. Which of the following are examples of cost of conformance? (Choose three.)

A. Costs for training employees on quality standards B. Expenses related to rework or fixing defects found after production C. Costs for preventive maintenance on equipment to avoid breakdowns D. Fees for correcting defects discovered during the project’s execution phase E. Costs of conducting quality audits and inspections during production

Correct Answers: A. Costs for training employees on quality standards, C. Costs for preventive maintenance on equipment to avoid breakdowns, E. Costs of conducting quality audits and inspections during production

Explanation:

A. Training employees on quality standards is a proactive step that ensures workers understand and follow quality guidelines, thus preventing errors and maintaining conformance to quality expectations.C. Preventive maintenance is a proactive cost designed to ensure that equipment functions smoothly and meets quality standards, avoiding defects or breakdowns during production.E. Quality audits and inspections during production are aimed at verifying the quality of work before defects occur, which is part of the cost of conformance.

B. Rework or fixing defects is part of the cost of non-conformance, which refers to the costs incurred after defects have been identified.D. Correcting defects discovered during execution is also part of the cost of non-conformance since it occurs due to failure to meet quality standards initially.