CAPM Sample Questions & Answers

Explanation: 12.1.3.1 Procurement Management PlanThe procurement management plan is a component of the project management plan that describes how a project team will acquire goods and services from outside the performing organization. It describes how the procurement processes will be managed from developing procurement documents through contract closure. The procurement management plan can include guidance for:Types of contracts to be used;Risk management issues;Whether independent estimates will be used and whetherthey are needed as evaluation criteria;Those actions the project management team can take unilaterally, ifthe performing organization has a prescribed procurement, contracting, or purchasing department;Standardized procurement documents, ifneeded;Managing multiple suppliers;Coordinating procurement with other project aspects, such as scheduling and performance reporting;Any constraints and assumptions that could affect planned procurements;Handling the long lead times to purchase certain items from sellers and coordinating the extra time needed to procure these items with the development of the project schedule;Handling the make-or-buy decisions and linking them into the Estimate Activity Resources and Develop Schedule processesSetting the scheduled dates in each contract for the contract deliverables and coordinating with the schedule development and control processes;Identifying requirements for performance bonds or insurance contracts to mitigate some forms of project risk;Establishing the direction to be provided to the sellers on developing and maintaining a work breakdown structure (WBS);Establishing the form and format to be used for the procuremenVcontract statements ofwork;Identifying prequalified sellers, ifany, to be used; andProcurement metrics to be used to manage contracts and evaluate sellers.
A procurement management plan can be formal or informal, can be highly detailed or broadly framed, and is based upon the needs of each project.

Explanation: Reporting Systems. Facilities, processes, and procedures used to generate or consolidate reports from one or more information management systems and facilitate report distribution to the project stakeholders.

Explanation: Process: 4.1. Develop Project CharterDefinition: The process ofdeveloping a document that formally authorizes the existence ofa project and provides the project manager with the authority to apply organizational resources to project activities.
Key Benefit: The key benefit ofthis process is a well-defined project start and project boundaries, creation of a formal record of the project, and a direct way for senior management to formally accept and commit to the project.

Explanation: 11.2.2.2 Information Gathering TechniquesExamples of information gathering techniques used in identifying risks can include:Brainstorming. The goal of brainstorming is to obtain a comprehensive list of project risks. The project team usually performs brainstorming, often with a multidisciplinary set of experts who are not part of the team. Ideas about project risk are generated underthe leadership ofafacilitator, either in a traditional free-form brainstorm session or structured mass interviewing techniques. Categories of risk, such as in a risk breakdown structure, can be used as a framework. Risks are then identified and categorized by type of risk and their definitions are refined.
Delphi technique. The Delphi technique is a way to reach a consensus of experts. Project risk experts participate in this technique anonymously. A facilitator uses a questionnaire to solicit ideas about the important project risks. The responses are summarized and are then recirculated to the experts for further comment. Consensus may be reached in a few rounds ofthis process. The Delphi technique helps reduce bias in the data and keeps any one person from having undue influence on the outcome.
Interviewing. Interviewing experienced project participants, stakeholders, and subject matter experts helps to identify risks.
Root cause analysis. Root-cause analysis is a specific technique used to identify a problem, discover the underlying causes that lead to it, and develop preventive action.

Explanation: PROJECT RISK MANAGEMENTProject Risk Management includes the processes ofconducting risk management planning, identification, analysis, response planning, and controlling risk on a project. The objectives of project risk management are to increase the likelihood and impact ofpositive events, and decrease the likelihood and impact of negative events in the project.

Explanation: Product scope description. The product scope description documents the characteristics of the product, service, or results that the project will be undertaken to create. The description should also document the relationship between the products, services, or results being created and the business need that the project will address.

Reference: https://mymanagementguide.eom/guidelines/project-management/cost-management/determining-project-budget/#proc

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Explanation: Process: 6.2 Define ActivitiesDefinition: The process of identifying and documenting the specific actions to be performed to produce the project deliverables.
Key Benefit: The key benefit ofthis process is to break down work packages into activities that provide a basis for estimating, scheduling, executing, monitoring, and controlling the project work.

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