Hi everyone, welcome back to PMP Question Practice. A great way to prepare for your PMP exam, a great way to do five questions every morning, you know, and really get up to speed. I'm going to go through these questions for the first time as well, we'll solve them together. Let's jump into the first one.
You're working on a project and it has become apparent that part of the company, a product, part of the product your company was creating, they won't be able to complete. Okay, oh man. And of course this sort of thing happens all the time. That's why, you know, the project manager role is so... important and your role is so important you decide to outsource it to a vendor to complete and offer a bonus to the vendor if the work is completed in two months okay that's kind of cool what type of contract will you use now wow this is interesting Cost plus fixed fee.
Cost plus a fixed fee. I mean, that's kind of okay. Fixed price with economic adjustments.
That's more for overseas, you know, overseas contracts potentially with currency fluctuations and that sort of thing. I don't think it's that one. Time and materials. I mean, yeah, I mean, maybe. Fixed price with incentive.
Okay, this is definitely the one. Incentive fee. Because we want to tie an incentive fee to the two months being completed.
So now, and fixed price is actually lower risk for us as well. So we'll give them a fixed price for the work and we'll say, if you get it all done in two months and we're happy, then incentive fee for you. I think it's letter D, let's look at that. Answer D, fantastic.
Fixed price with an incentive fee allows the buyer to allocate an incentive amount usually tied to metrics around schedule, cost or quality. That's exactly what we're after. Let's look at question two.
Question two, you're working on. on the schedule of your project and have just created a schedule network diagram. Oh, excellent. You have noted the duration, early start and early finish dates for each activity.
What will you do next? Oh, this is great, wow. tricky uh okay let's have a look at what we've got perform a forward pass noting the late hang on a minute noting the late start and late finish for each activity that's not what a forward pass is a forward pass is what we have done actually it's the duration early start and early finish dates in our schedule network diagram okay so we've got a bit of a clue there perform a backward pass noting the late start and late finish for each activity yeah i mean that's That's pretty promising because we do need to do that.
Potentially maybe float we could figure out as well. Break down the scope into smaller work packages you can assign to your teams. Probably not. I don't think we're going to do that at this stage. We've got a better option up here.
Perform a backward pass. Yes. Noting the float and positions of each activity. Not as good.
Backward pass. And float sort of happens after the backward pass anyway. I think we're going to go with answer B.
for this one. Let's have a look. Answer B. Using the backward pass, we calculate the late start and late finish of all the activities in the network diagram. And later on, then we use that to figure out the float or the wiggle room in our project schedule.
Really cool thing. And that's wonderful. How did you go? That's question two.
Let's look at question three. You're working on a project that is outsourcing a part of development to a third party. Your project sponsor wants to keep risk to the organization low. Okay.
what sort of contract will you use to outsource this work? Oh, this is a lot of fun. A lot of contract questions for this one.
Okay. So low risk, risk to us. So low risk to us.
Okay. Probably something fixed. So cost plus fixed fee, cost, no, not to do with cost because then we're paying the vendor for their costs. They, they could have any costs.
It does, you know. that's up to them and that can actually be quite risky. Time and material, that's another similar way of saying, that's similar to that one, their costs could get out of control, their time could get out of control quite easily.
So again, quite risky. Firm. fixed price yeah i mean that's set in stone to to us that is the least risky option at the moment cost and again cost plus incentive fee i mean we could go that one but again there's cost involved so they would potentially just run up their cost you know or they have no desire or no need to keep their costs minimum because we're paying them for any costs that are involved so i'm probably going to go with letter c for now is the best option let's have a look answer c the contract that is least riskiest for the buyer is the firm fixed price contract. Just one set in stone, you know exactly what you're paying.
So the total costs are fixed and the scope of work is clearly defined and agreed upon as well. That's actually quite important. So cost-based contracts are risky as there's often little incentive for the... to keep their costs low, of course. That's question three.
How did you go? We're up to the last two questions. Question four now.
You've acquired your project team and you're ready to distribute the work to your team for them to begin. You will use your project's outlined work authorization system, so our approach and our processes and our system, which manages the timing and sequence of when activities need to be performed and by whom. Yeah, that's quite promising.
Work authorization system, so we're authorizing, manages the timing and sequence. I mean, yeah, maybe we're authorizing activities for our people as well. I wonder if there's a better one here. Tracks and manages defects.
No, definitely not defects. That's a good one. Identifies the resources needed to complete the activities. It's not really the resource management plan or resource assignment matrix, I think you might call it as well. It's not that.
It's used for comparing actual work against the baselines. Not in the work authorization system. I mean, I mean, there's various different things that we'll need to look at for that, and that's our variance analysis that we'll get into.
I mean, that leaves us with answer A. So we're probably, let's go with answer A and lock that in and see how we go. Okay, fantastic. The work authorization system defines how work will be authorized. Right, okay, there you go.
And how work will be done at the right time and in the right sequence and by whom. Who performs the work on its own comes from the responsibility assignment matrix. So that's our RIT. a.m. and that was the one that we called out there as well.
Great work, guys. Last question, you are doing fantastically. You are managing a project, you are doing fantastically.
You're managing a project to build a new meeting hall. Halfway through, one of the stakeholders advises, the stage is not big enough and it must be twice as big. This was not originally planned for.
What will we do next? Okay, let's have a look. Get the work done immediately and start executing. No, we need to go through the proper processes here. Update the impacted baselines.
No, we don't update the impacted baselines until we've got an approved change request, I think. This is probably going to be a change request question here, I think. Update the work performance reports to share these with stakeholders. Work performance reports, they have their own schedule, you know, so you might do these weekly or monthly or whatever you agree upon.
I don't think that's really related at this stage. Analyze the impact to cost, schedule and scope. This looks promising. And then. submit the change request to the change control board for approval.
We definitely want to go to the change control board or with our change request knowing what the impact is going to be even though we haven't updated our baseline documents because it hasn't been approved yet but we do need to. to know what that impact will be so that they can make a decision as well. I think answer D is the one that we're going to go for here.
Answer D, fantastic. Work performance reports will be shared as per agreed frequency. Yep, so that's what we said.
Before a change is raised, it's best to analyze the impact to your project. Once the change is approved, then you can update the baselines. And that is the last question.
You made it. Congratulations. I hope you enjoyed this video and I hope you're enjoying practicing these PMP questions to prepare to pass the PMP exam because I absolutely truly believe that you can pass the PMP exam. I really do believe in you and I know you can do it. Keep practicing every day and keep studying every day and I'll see you in the next video.
Bye for now.