Free PMI PMI-SP Practice Exam with Questions & Answers

Cost performance index (CPI) is used to calculate performance efficiencies. It is used in trend analysis to predict future performance. CPI is the ratio of earned value to actual cost. The CPI is calculated based on the following formula: CPI = Earned Value (EV) / Actual Cost (AC) If the CPI value is greater than 1, it indicates better than expected performance, whereas if the value is less than 1, it shows poor performance. The CPI value of 1 indicates that the project is right on target. In this instances it is $270,000 divided by $335,000 for a CPI of .81.

Answer option B is incorrect. .67 is actually the schedule performance index.

Answer option D is incorrect. -$65,000 is the cost variance for the project.

Answer option A is incorrect. -$135,000 is the schedule variance of the project.

The schedule performance index is earned value divided by planned value. The close the result is to 1, the better the project is performing.

Answer option B is incorrect. This is the cost variance formula.

Answer option C is incorrect. This is the formula to find schedule variance.

Answer option A is incorrect. This is not a valid formula.

The project calendar defines the working hours for the project, including any days that project work will not happen due to the organizational calendar.

Answer option D is incorrect. The company calendar is not the correct choice for this question.

Answer option C is incorrect. The organizational calendar is not the correct choice for this question.

Answer option B is incorrect. The resource calendar defines whether resources the project needs will be available. The resources include people, facilities, equipment, and other things that project needs to be completed.

The role of operations manager is to perform various management roles in a core business area, such as research and development, design, manufacturing, provisioning, testing, or maintenance. The operations manager directly deals with constructing and maintaining the saleable products or services of the enterprise.

Answer option C is incorrect. A project manager is an expert in the field of project management. He is responsible for the entire project from inception to completion. The project manager leads the team and helps negotiate the multiple relationships within any project whether with clients, team members, firm principals or any variety of partners and functions as the hub of a project.

Answer option A is incorrect. The role of a functional manager is to perform various management roles within an administrative or functional area of the business, such as human resources, finance, accounting, or procurement. He is assigned his own permanent staff to carry out the ongoing work. He should have a clear directive to manage all tasks within his functional area of responsibility.

Answer option D is incorrect. Seller is also known as a vendor, supplier or contractor. They are external company's elements that enter into a contractual agreement to provide components or services necessary for the project.

In severe cases, new schedule duration estimates with new forecasted start and finish dates are needed. In these instances, it is an example of using the control schedule process. Control schedule process is a method of monitoring the status of the project to update project progress and deal with the changes to the schedule baseline. It is concerned with: Determining the current status of the project Influencing the factors that create schedule changes Determining that the project schedule has changed Managing the actual changes as they occur Control schedule is a component of the Perform Integration Change Control process.

Answer option B is incorrect. The activity resources would only address the addition or replacement of resources needed to complete the project work.

Answer option A is incorrect. This is a tempting choice, but according to the PMBOK, new schedules are part of the control schedule process.

Answer option D is incorrect. Develop schedule is not the best choice for this question. It is a process of analyzing activity sequences, durations, resource requirements, and schedule constraints to create the project schedule.

This is an example of a preventive action as you're working with the team before they install the doors to train them on the installation. The checklist is a quality control tool but the question was asking for a project execution activity. Preventive and corrective actions are part of project execution.

Answer option D is incorrect. Quality control is a controlling and monitoring process, not an executing process.

Answer option B is incorrect. The defect repair validation comes after the project team has corrected an error - something that has not occurred in this instance.

Answer option C is incorrect. Corrective action is a response to something that needs to be corrected in the project.

Of all the choices, Ben should avoid fast tracking, as it allows complete phases of the project to overlap, and this increases project risks. Management wants to avoid risks, so fast tracking would not be helpful. Fast tracking is a technique for compressing project schedule. In fast tracking, phases are overlapped that would normally be done in sequence. It is shortening the project schedule without reducing the project scope.

Answer option A is incorrect. Crashing adds people and costs but is relatively safe in regard to risks.

Answer option C is incorrect. Critical chain is not a schedule compression technique and would not necessarily help the project get back on schedule.

Answer option D is incorrect. Lead time, similar to fast tracking, can increase project risks; however, fast tracking is more risky than lead time. Lead time allows individual activities to overlap, while fast tracking allows entire project phases to overlap.

The risk owner is the individual on the project team that is closest to the risk event. The risk owner can be an individual or an organization responsible for implementing risk responses or contingency plan. The risk owner should be empowered with the ability to respond to the risk as it was planned.

Answer option A is incorrect. Diane is the project manager and likely won't be the risk owner as well.

Answer option B is incorrect. The project sponsor authorizes the project but does not participate in the execution of the project.

Answer option D is incorrect. While a subject matter expert may be the risk owner on some occasions, he won't be the risk owner on every occasion.

The schedule variance is found by subtracting the planned value from the earned value. The earned value is the percentage of the project completeness multiplied by the BA

C. Planned value is the percentage of where the project should be at this time multiplied by the BA

C. Schedule variance (SV) is a measure of schedule performance on a project. The variance notifies 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. In this example, EV = 40% of BAC = 300,000, and PV = 50% of BAC = 375,000 SV = 300,000 - 375,000 = -75,000

Answer options C, B, and D are incorrect. These are not the correct values for the schedule variance.

Contingency reserves are estimated costs to be used at the discretion of the project manager to deal with anticipated, but not certain, events. These events are "known unknowns" and are part of the project scope and cost baselines. The contingency reserve is calculated by multiplying the probability and the impact for the risk event value for each risk event. The sum of the risk events equals the contingency reserve for the project. Note that Risk D is a positive risk amount.

Answer option C is incorrect. This value is the sum of the risk events if you did not include Risk D as a positive risk value.

Answer option A is incorrect. This is a sum of the risk event.

Answer option B is incorrect. This is a sum of the risk events without including Risk D as a positive risk event.