124 ◾ PfMP® Exam Practice Tests and Study Guide
46. Your organization, a leading restaurant focusing on pancakes, is seeking to
expand its portfolio. It is interested in ensuring new components support:
return on investment, customer satisfaction, reputation enhancement, and
branding. These four areas represent:
a. Metrics
b. Organizational value areas
c. Organizational strategic objectives
d. Critical success factors
47. Your health care rm’s goals focus on products and services to provide
the best care available to people in your country and has ofces located
throughout it. For years, to advance this goal, scientists have been pursuing
research and development projects they felt were breakthroughs in the eld,
and many of them were successful. But, resources often were constrained in
the process, and at times, some people were not fully committed. After two
years of declining prots, the company has implemented portfolio manage-
ment to ensure these R&D projects and other programs and projects are not
pursued randomly in order that resources can be available with the required
quantity and quality. This resource allocation is the responsibility of:
a. The Enterprise PMO
b. Portfolio governance
c. Portfolio manager
d. Portfolio manager working in conjunction with the HR Director
48. Assume your consulting company tried portfolio management in the past,
but it was not embraced. Instead, people received bonuses if they were
able to acquire new work regardless if it t the company’s strategic plan.
However, the company was sold, and the new executive team asked you to
be the portfolio manager. You explained it did not work in the past, but the
new team has pointed out while a lot of work was won competitively, much
of it was for small dollar amounts, and resources are misallocated. The new
approach is to focus on business value, which has as its goal to:
a. Achieve the greatest return on investment to the organization
b. Maximize productivity and increase overall customer satisfaction
c. Deliver the maximum value aligned with strategic objectives
d. Focus on those opportunities that have the greatest likelihood of success-
ful completion
Practice Test 1 ◾ 125
49. In identifying risks to then manage and control, as the portfolio manager
you are consulting organizational process assets such as:
a. Commercial data bases
b. Lessons learned
c. Knowledge bases
d. Values
50. Over the years, your organization has grown signicantly as it has entered
new markets while maintaining its presence in its traditional product line of
security systems. The company now has eight different business units rather
than three, which was the case only two years ago, and it set up funding
originally such that it was only allocated to one business unit and could not
be transferred to others. At the recently held Portfolio Oversight Committee
meeting, ve business units did not add components, but some were com-
pleted. The other three added a number of programs and projects, which were
authorized. Now funding for these new components is an issue. This means:
a. Another Committee meeting is required to focus on the funding problem
b. The sponsors of the newly authorized components need to work with
their business units to determine how funds will be allocated
c. The three business units need to evaluate their portfolios and recom-
mend termination of some components to the Committee
d. Changes are required as to how funds are allocated
51. The members of your Portfolio Review Board and other key stakeholders
tend to be risk adverse as the company has survived recent recessions and
is protable. However, in an upcoming meeting with the corporate Board
of Directors, they have asked you to show the frequency of meeting certain
cost objectives at various percent points. For example assume the portfolio
is to meet a $41,000 target in the next month, to be 75% condent this will
occur, a forecast of $50,000 is needed. This means you need to show:
a. The needed contingency reserve
b. The probability of achieving portfolio objectives
c. The condence of meeting success criteria
d. The values of KPIs with their condence levels
126 ◾ PfMP® Exam Practice Tests and Study Guide
52. It is rare for organizational leaders to have an in- depth knowledge of all the
work under way in the portfolio, but it is needed for portfolio decision mak-
ing. If you were asked to prepare such an inventory, it would:
a. Require one- on- one interviews to ensure all work being done was
revealed
b. Be helpful to have a statement in writing from the CEO to describe why
the inventory is important
c. Serve as the starting point for the portfolio
d. Require assistance and support from the EPMO
53. Assume you are the portfolio manager for your training company. It decided
to implement portfolio management in a major way to ensure it remained
competitive in the changing market and could offer a variety of methods
to deliver courses rather than only in a face- to- face setting. The company
set up a Portfolio Management Group, and you are responsible for provid-
ing information on portfolio status and then providing information to those
interested stakeholders about the Board’s decisions. You want to make sure
the reports meet stakeholder requirements. After performing a detailed com-
munications requirements analysis, you found it interesting that stakeholders
wanted information about:
a. Portfolio infrastructure costs
b. Goal achievement
c. Benet realization
d. Changes in the roadmap
54. It is critical in portfolio management to focus on ‘doing the right work’. This
means stakeholder expectations and effective management of these expecta-
tions are essential. The primary conduit between the component managers
and the other portfolio stakeholders is the:
a. Program or project sponsor
b. Portfolio manager
c. Chairperson of the Portfolio Review Board
d. Secretary of the Portfolio Review Board
Practice Test 1 ◾ 127
55. Values assist in guiding actions, evaluations, and decisions. Assume your
organization is considering entering into a consortium to produce a helium-
controlled car. Once the helium is supplied, additional amounts will not be
needed. The car is to be personally appealing with a focus on an inexpen-
sive cost to increase marketability. The consortium will enable each rm
to capitalize on the expertise of the other rms in it, but the customer will
view it as a separate entity. If your organization enters into the consortium,
it must justify the value to the portfolio of doing so. In addition to ensure
benets are realized a focus is needed on:
a. Organizational value
b. Sustainable value
c. Managerial value
d. Employee value
56. You are working to optimize your portfolio and determine a priority list of
components to pursue. In your product development company, of the triple
constraints, quality and scope dominate. This does not imply that schedule
and budget are not important, but since the company requires regulatory
approval for its products, quality dominates the company. Quality goals that
are too low may lead to end- user dissatisfaction; however, goals that are too
high may be too costly to the company. Therefore it is important to consider:
a. Market analysis
b. The value proposition
c. Cash- ow requirements
d. Risk analysis and assessment
57. Assume you are new to your organization and you were hired specically to
help implement portfolio management in your new manufacturing company.
Having worked in portfolio management for the past ve years, you know it
is a major culture change. It is denitely a challenge at your new company
because:
a. The organization basically has many operational activities, and only a few
projects are under way
b. The organization lacks a dened strategy
c. The few projects that are under way are not interdependent
d. Operational activities have continued without any major changes for years
128 ◾ PfMP® Exam Practice Tests and Study Guide
58. Assume before you prepared your portfolio management plan for your com-
pany that you did some benchmarking and learned that if you used elicita-
tion techniques it was useful in the portfolio development stage and before
there were signicant scope changes because of strategy changes to the
portfolio. You decided to involve the Portfolio Review Board members, other
key stakeholders, and some subject matter experts in this process and then
decided to poll input from the group as a majority vote. This meant you
were using:
a. Collaboration techniques
b. Facilitation techniques
c. Interviews and observations
d. Negotiation techniques
59. Assume you are the corporate portfolio manager for your global organi-
zation. There is one portfolio at the corporate level, but other portfolios
supporting business units and core areas of the company. One of these
portfolios involves manufacturing, and its number one program in terms of
priorities is to implement an enterprise resource planning system. Since it is
the number one ranked program in this portfolio, it is of interest at the cor-
porate level, and you and your team provide reports on its progress monthly.
You can see that:
a. Since earned value is being used, at this point you report the ERP system
will not meet its cost and schedule goals
b. Extensive training will be needed after the program is complete, and an
infrastructure does not exist to support the ERP system
c. Use of the ERP vendor has been underestimated, and a business case
will be needed for increased funding
d. Inadequate, up- front nancial planning was done when the business case
was approved
60. Your probability and impact assessment work is complete, and you are using
the results to prepare the portfolio risk management plan. As you do so, it
also is useful to:
a. Dene the assurance levels of the risk and its performance measures
b. Validate with your stakeholders that your analysis meets their
expectations
c. Communicate the results with others in the organization for greater
transparency
d. Identify specic trends for each risk using qualitative and quantitative
analysis
..................Content has been hidden....................
You can't read the all page of ebook, please click here login for view all page.