Free Practice Questions for PMI PMP Exam

 According to the PMBOK Guide, agile project management is an iterative and incremental approach that delivers value to the customer frequently and responds to changes quickly. One of the principles of agile project management is to maximize the amount of work not done, which means eliminating waste and focusing on the most valuable features. The product backlog is a prioritized list of features or requirements that the project team delivers in iterations or sprints. The project manager, in collaboration with the product owner and the stakeholders, should prioritize the product backlog based on the business value and the effort required to deliver each item. By doing so, the project manager can ensure that the project delivers the highest value possible within the budget constraints. The project manager should also adjust the project budget and staffing to account for the prioritized items, and communicate the changes to the project team and the stakeholders. The project manager should not balance the project team, restrict the project scope, or reduce the project staff, as these strategies may compromise the quality, value, or customer satisfaction of the project deliverables. References:

PMBOK Guide, 6th edition, pages 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53…

PMI-PBA Guide, pages 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53…

According to the PMBOK Guide, an agile approach is based on delivering value in small increments and iterations, rather than in one large deliverable at the end of the project1. This allows the project team to incorporate feedback, changes, and learning into the product or service, and to reduce rework and dissatisfaction2. Therefore, the project manager should adopt an incremental cycle of delivering value to the customer, and align the project objectives and scope with the customer needs and expectations. The other options are incorrect because:

A. Decreasing the scope of the portfolio and sending new solutions to the customer is not an agile strategy, but a reactive one. It may imply that the project team is not able to deliver the agreed scope, or that they are not collaborating with the customer to understand their requirements and preferences.

B. Delivering a schedule with the portfolio timeline and delivery to the customer is not an agile strategy, but a predictive one. It may imply that the project team is following a rigid and fixed plan, rather than responding to changes and uncertainties in the project environment.

D. Preparing deliveries with more details to satisfy the customer is not an agile strategy, but a waterfall one. It may imply that the project team is focusing on documentation and specifications, rather than on working products and solutions. References:

1: PMBOK Guide, 6th edition, Chapter 1, Section 1.2.3, page 7

2: PMBOK Guide, 6th edition, Chapter 3, Section 3.8, page 52

: Agile Practice Guide, Chapter 2, Section 2.1.1, page 13

: Agile Practice Guide, Chapter 2, Section 2.2, page 14

According to the PMBOK Guide, the project manager should use a participatory approach to develop the project schedule, involving the team members who will perform the work1. This will increase the accuracy and reliability of the schedule estimates, as well as the commitment and ownership of the team2. Therefore, the best option is to organize a planning session with the development team and use their estimations to complete the schedule. Option B is incorrect because changing the delivery date for the project schedule based on the availability of a new contractor may not be feasible or acceptable to the stakeholders. Option C is incorrect because asking the sponsor to provide the desired completion date for project activities may not reflect the realistic effort and duration required to complete the work. Option D is incorrect because using expert judgment to estimate all of the tasks may not account for the variability and uncertainty of the work, and may not involve the input and feedback of the team members. References: 1: PMBOK Guide, 6th edition, section 6.1.2.5, p. 191 2: PMBOK Guide, 6th edition, section 6.5.2.4, p. 218

 This answer is based on the concept of adaptive life cycle or agile project management, which is one of the approaches to managing projects in the PMBOK Guide1. Adaptive life cycle is suitable for projects that have high uncertainty, changing requirements, and complex or innovative products1. The main characteristics of adaptive life cycle are:

Delivering products in iterations or increments, each with a fixed duration and scope1.

Seeking frequent feedback from customers and stakeholders to validate the product value and quality1.

Embracing changes and responding to them quickly and effectively1.

Empowering the project team to make decisions and collaborate with each other1.

A minimum viable product (MVP) is a version of the product that has enough features to satisfy the initial needs of the customers and stakeholders, and to provide feedback for future development2. By focusing on releasing an MVP quickly, the project manager can:

Reduce the risk of wasting time and resources on building a product that does not meet the customer’s expectations or needs2.

Increase the customer’s satisfaction and engagement by involving them in the product development process2.

Learn from the feedback and data collected from the MVP and use them to improve the product in the next iteration2.

Adapt to the changing requirements and market conditions by delivering value incrementally2.

Therefore, option D is the best answer, as it aligns with the adaptive life cycle approach and the benefits of MVP. Option A is not a good answer, as it implies a predictive life cycle or waterfall project management, which is more suitable for projects that have low uncertainty, stable requirements, and well-defined products1. Waiting to start the project execution phase until all requirements and acceptance criteria are clear can result in:

Missing the opportunity to deliver value early and often to the customers and stakeholders1.

Increasing the risk of scope creep, change requests, and rework due to changing customer needs or expectations1.

Reducing the flexibility and responsiveness of the project team to adapt to changes1.

Limiting the collaboration and communication between the project team and the customers and stakeholders1.

Option B is also not a good answer, as it assumes that the customer knows all of the requirements at the beginning of the project, which is unlikely for a brand new product. Asking the customer to include all of the requirements in the project charter can lead to:

Creating a rigid and unrealistic scope that does not reflect the customer’s actual needs or preferences3.

Overwhelming the customer and the project team with too many details and specifications that may not be relevant or necessary3.

Ignoring the feedback and learning opportunities that can arise during the project execution phase3.

Reducing the chances of innovation and creativity by restricting the product features and functions3.

Option C is a better answer than option A and B, as it involves the customer in the requirement elicitation process and prioritizes the most important requirements. However, it is still not the best answer, as it does not address the customer’s concern about extra costs and work. Scheduling a brainstorming session and selecting the top ten most important requirements can still result in:

Spending too much time and resources on planning and analysis, instead of delivering value and testing assumptions.

Failing to validate the requirements with the end users and other stakeholders, who may have different needs or expectations.

Missing the opportunity to learn from the feedback and data collected from the product delivery and use.

Delaying the adaptation and improvement of the product based on the changing requirements and market conditions.

The project manager should address the issue between the two team members by scheduling a meeting with them and using conflict resolution techniques to find a mutually acceptable solution. This way, the project manager can prevent the issue from escalating and affecting the project performance and team morale. This approach is consistent with the agile principle of fostering collaboration and trust among the team members12. References: 1: PMBOK Guide, 6th Edition, Chapter 9: Project Resource Management 2: Agile Practice Guide, Chapter 2: An Agile Mindset

In an agile project, the project manager does not assign tasks to the team members, but rather facilitates the team’s self-organization and empowerment. The team decides how to plan, execute, monitor, and control the work within the sprint, based on the agreed-upon requirements and priorities. The project manager supports the team by removing impediments, providing feedback, and ensuring alignment with the project vision and goals. The daily standup is a short meeting where the team members share their progress, challenges, and plans for the next 24 hours, not a place where the project manager instructs the team what to do. References:

Agile Practice Guide, page 37

PMBOK Guide 7th Edition, page 97

The project manager should meet with the project team to assess their current skills and identify any gaps or training needs that may affect the project execution. This is part of the Plan Resource Management process, which involves determining the project roles, responsibilities, required skills, and reporting relationships1. Sending the list to the project team and asking them to get training on the required skills (A) is not a proactive or effective way of managing the project resources. Asking the functional manager to review the resource pool and recommend the right individuals to join the team (B) is not feasible since the project team has already been assigned. Discussing the list with the project sponsor to confirm that the resources have the required skills © is not the responsibility of the project sponsor, who is mainly concerned with the project benefits and alignment with the strategic objectives2. References:

1: A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Seventh Edition, Chapter 8, Section 8.1.3.1

2: A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Seventh Edition, Chapter 4, Section 4.1.2.1

QU According to the PMBOK Guide, 6th edition, page 18, a project manager should use a combination of leadership styles depending on the situation and the needs of the team. In this case, the project manager should have used a collaborative or facilitative style to engage the team members in the agile development approach, empower them to make decisions, and set clear and measurable goals. This would have helped to create a shared vision, foster trust and commitment, and improve team performance and satisfaction. By contrast, the other options (A, B, and D) are more indicative of a directive or controlling style, which could have increased the resistance and confusion of the team members, reduced their motivation and creativity, and created a blame culture. References: = PMBOK Guide, 6th edition, page 18; Agile Practice Guide, page 13.ESTION NO: 140

A company has an existing contract to maintain and enhance a client's customer database The company's legal department informs the project manager that a new piece of legislature requiring stricter protection of customer information might soon be signed into law. The law will require additional security features to be implemented into the database the project manager is maintaining These features are not included in the scope of the current contract

What should the project manager do?

A. Ask the legal department to raise the issue in the next contract negotiation with the customer

B. Seek the project sponsor's support to influence the client to amend the contract immediately

C. Update the risk register to include this issue and discuss the appropriate risk response plans with the project sponsor and client

D. Wait until the legal requirements are finalized so the change in scope can be concretely defined

Answer: C

According to the PMBOK Guide, a risk is an uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives. A risk register is a document that records the identified risks, their analysis, and their response plans. A project manager should update the risk register whenever new risks are identified, analyzed, or resolved. In this case, the potential change in the legal requirements is a risk that could affect the project scope, cost, schedule, and quality. Therefore, the project manager should update the risk register to include this risk and its impact, probability, and priority. The project manager should also discuss the appropriate risk response plans with the project sponsor and the client, such as avoiding, transferring, mitigating, or accepting the risk. This way, the project manager can proactively manage the risk and prepare for any changes that might occur. References:

PMBOK Guide, Seventh Edition, Chapter 4: Project Integration Management, Section 4.6: Monitor and Control Project Work, Page 123

PMBOK Guide, Seventh Edition, Chapter 11: Project Risk Management, Section 11.2: Identify Risks, Page 409

PMBOK Guide, Seventh Edition, Chapter 11: Project Risk Management, Section 11.3: Perform Qualitative Risk Analysis, Page 415

PMBOK Guide, Seventh Edition, Chapter 11: Project Risk Management, Section 11.4: Perform Quantitative Risk Analysis, Page 423

PMBOK Guide, Seventh Edition, Chapter 11: Project Risk Management, Section 11.5: Plan Risk Responses, Page 431

PMBOK Guide, Seventh Edition, Chapter 11: Project Risk Management, Section 11.6: Implement Risk Responses, Page 439

PMBOK Guide, Seventh Edition, Chapter 11: Project Risk Management, Section 11.7: Monitor Risks, Page 445

According to the Professional in Business Analysis (PMI-PBA)® Examination Content Outline, one of the tasks of a business analyst is to “facilitate conflict resolution within the team to ensure that team members work effectively together” (Task 5.4). This implies that the project manager should also address any interpersonal issues that may affect the team performance and morale. By setting up a meeting with the distracted team member, the project manager can show empathy, listen to their concerns, and help them resolve any problems they may have. This is also consistent with the PMBOK® Guide, which states that “the project manager should manage conflict in a constructive manner, and help to develop a collaborative project team environment” (Section 9.4.2.3). References:

Professional in Business Analysis (PMI-PBA)® Examination Content Outline, Task 5.4

PMBOK® Guide, 6th Edition, Section 9.4.2.3

 The project manager should make sure the analyst has regular pairing meetings with the other team member throughout task execution, as this is part of developing project team. Developing project team involves improving the competencies, interaction, and environment of the team members to enhance project performance. By making sure the analyst has regular pairing meetings, the project manager can facilitate knowledge sharing, collaboration, and mentoring among the team members, and address the analyst’s concerns and needs. The other options are not the best ways to handle this situation, as they either ignore, transfer, or delay the analyst’s concerns and development. References: (Professional in Business Analysis Reference Materials source and documents)

PMBOK Guide, 6th edition, Chapter 9, Section 9.3

PMP Exam Content Outline, June 2019, Domain III, Task 9

PMP Sample Test Questions, Question 186

According to the PMI-PBA guide, one of the key competencies of a business analyst is to facilitate collaboration and negotiation among stakeholders1. This is especially important in agile projects, where the business analyst may also act as the project manager or product owner2. The PMBOK guide also states that the project manager should foster a collaborative project team environment that enhances individual and team performance3. Therefore, the best way for the project manager to influence the agile team is to express trust in their ability to deliver value and meet the project objectives, rather than imposing authority, control, or additional resources. References:

1: PMI-PBA guide, page 16

2: PMI-PBA guide, page 23

3: PMBOK guide, page 59

The project manager should have ensured that the project repository is up to date and contains all the relevant information and documentation related to the project deliverables, such as user stories, acceptance criteria, test cases, design specifications, etc. This way, the remaining team members can access the information they need to continue working on the deliverable, even if a senior team member leaves the organization. This practice is consistent with the agile principle of maintaining a single source of truth and ensuring transparency and collaboration among the team members12. References: 1: PMBOK Guide, 6th Edition, Chapter 4: Project Integration Management 2: Agile Practice Guide, Chapter 3: Life Cycle Selection

According to the PMBOK Guide1, project communication management includes the processes of planning, managing, and monitoring project communications. The first process, plan communications management, involves determining the information and communication needs of the project stakeholders, such as the sponsor. The project manager should have analyzed the sponsor’s communication requirements, such as the type, format, frequency, and level of detail of the information they need, as well as their preferred communication channels and methods. By doing so, the project manager could have designed and implemented a communication system that meets the sponsor’s expectations and needs, and avoids any dissatisfaction or complaints. The other options are not the best preventive actions, as they are either reactive or irrelevant. Confirming that the portal is providing adequate information, verifying that the project team is following the communications management plan, and ensuring the sponsor had the necessary skills to use the portal are all actions that could be taken after the situation has occurred, but they do not address the root cause of the problem, which is the lack of alignment between the communication system and the sponsor’s requirements. References:

A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition

Project Communication Management - Five Steps | PMI

ProjectManagement.com - Project Communication Management

 This is the best answer because it involves engaging the relevant stakeholders in a constructive dialogue about the importance and benefits of following the project management procedures. According to the PMBOK Guide, project management procedures are part of the organizational process assets that help the project manager and the team to perform their work effectively and efficiently. By initiating a review of the procedures, the project manager can identify the gaps, issues, and opportunities for improvement, as well as communicate the value and rationale of the procedures to the CTO and the team. This can also help to build trust, collaboration, and commitment among the project participants. References: PMBOK Guide, 6th edition, pages 38-39, 541-542.

According to the PMI-PBA Exam Practice Test and Study Guide, 2nd edition, chapter 8, page 179, incremental budgeting is a technique that allows agile teams to estimate and allocate funds for each iteration or release of a product. This technique enables the teams to respond to changing requirements and priorities, and to deliver value to the customer faster. Incremental budgeting also reduces the risk of over- or under-budgeting, as the teams can adjust their estimates based on the actual costs and benefits of each increment. The other options are not suitable for agile teams, as they do not support the agile principles of flexibility, collaboration, and customer satisfaction. Requesting the finance team to allocate a budget based on historical data may not reflect the current or future needs of the product. Providing the budget to the finance team for only the planned increments may not account for the changes that may occur during the product development. Extrapolating the budget based on the current cost performance index (CPI) may not be accurate or reliable, as the CPI may vary depending on the scope, schedule, and quality of each increment. References:

PMI-PBA Exam Practice Test and Study Guide, 2nd edition, chapter 8, page 179

PMBOK Guide, 7th edition, section 8.1.3, page 269

The project manager should identify adequate change management tools to conduct the project, as this will help them to manage the changes to the product baseline in a flexible and efficient way. Change management tools are methods, techniques, or software that help to plan, execute, monitor, and control changes in a project. Some examples of change management tools are change request forms, change logs, configuration management systems, traceability matrices, and change impact analysis. By using these tools, the project manager can ensure that the changes are properly documented, evaluated, approved, implemented, and communicated. This will also help to minimize the risks and costs associated with the changes, and to maintain the quality and scope of the product. References:

Change Request Form: Definition, Types, Process & Tools

Change Log Template - Project Management Docs

Configuration Management: What is it and why is it important?

Traceability Matrix in Software Testing with Example Template

Change Impact Analysis - an overview | ScienceDirect Topics

The definition of done (DoD) is a clear and concise list of requirements that a deliverable must meet to be considered complete and acceptable by the main stakeholder. The DoD helps to ensure that the quality standards are met and that the deliverables are aligned with the stakeholder’s expectations. The project manager should reinforce the DoD during sprint planning so that the team has a common understanding of what needs to be done and how to do it. This will help to prevent the deliverables from being rejected during the next iteration. Submitting a change request to prioritize resolutions for the quality issue (option A) may be necessary, but it does not address the root cause of the problem, which is the lack of clarity and agreement on the DoD. Assuring that the product backlog is properly prioritized to avoid dependencies that cause rejection (option C) is a good practice, but it does not ensure that the deliverables will meet the quality specifications. Creating a dedicated sprint to complete all of the pending specifications from previous sprints (option D) may be a viable option, but it may also delay the project and increase the cost. The best option is to reinforce the DoD and ensure that the team delivers what the stakeholder expects. References:

PMBOK Guide, 6th edition, page 176, section 5.4.2.1 Definition of Done

[Agile Practice Guide], page 54, section 4.2.2.1 Definition of Done

PMP Exam Prep, 10th edition, page 425, question 425, answer and explanation

According to the PMBOK Guide, when using an agile approach, the project manager needs to embrace change and respond to customer feedback by continuously refining and reprioritizing the product backlog1. The product backlog is a dynamic list of the product requirements, user stories, and other work items that need to be completed by the project team. By working with the product manager and the rest of the team to update the project backlog, the project manager can incorporate the new feature requested by the customer, and deliver value early and often1. The other options are not appropriate, as they do not reflect the agile mindset and principles. Assessing the impact of the new requirements and initiating the change request process, assessing the impact and communicating the updated product roadmap, and following the change management plan to update the risk register are all possible actions that could be taken in a predictive or waterfall approach, where changes are more controlled and formalized. However, in an agile approach, changes are expected and welcomed, and the project manager should collaborate with the customer and the team to deliver the best possible product2. References:

1: PMBOK Guide, 6th edition, page 18

2: PMBOK Guide, 6th edition, page 156

 According to the PMBOK® Guide, the project manager should include projected inflation rates in the budget estimate for a long-term project that will be executed over several years. This is because inflation rates affect the purchasing power of the project funds and the cost of resources over time. By including projected inflation rates, the project manager can account for the changes in the value of money and the cost of goods and services, and adjust the budget accordingly. This is part of the Estimate Costs process, which involves developing an approximation of the monetary resources needed to complete the project activities. References: (Professional in Business Analysis Reference Materials source and documents)

PMBOK® Guide, 6th edition, Chapter 7, Section 7.2, Estimate Costs

PMP Exam Prep, 10th edition, Rita Mulcahy, Page 223, Estimate Costs

 The project manager should refer to the requirements traceability matrix to verify whether the customer’s claims are valid or not. The requirements traceability matrix is a grid that links product requirements from their origin to the deliverables that satisfy them1. It helps to ensure that each requirement adds business value by linking it to the business and project objectives2. It also provides a means to track requirements throughout the project life cycle, helping to ensure that requirements approved in the project scope statement are delivered at the end of the project3. Revising the project scope baseline (B) is not a good option since it would imply accepting the change requests without verifying their validity. Escalating the change request to the project sponsor © is also not advisable since the project manager should first analyze the situation and propose a solution. Reviewing the approved project charter (D) is not relevant since the project charter does not contain the detailed product requirements. References:

1: A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Seventh Edition, Glossary, page 717

2: A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Seventh Edition, Chapter 5, Section 5.2.3.1

3: A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Seventh Edition, Chapter 5, Section 5.6.3.1

 According to the Agile Practice Guide, one of the benefits of agile approaches is that they enable early and frequent delivery of value to the customer and stakeholders1. This can help to build trust and collaboration among the project team and the stakeholders, and also to validate and adapt the project requirements and solutions2. Therefore, the project manager should propose a phased project approach with multiple small interactions and build trust with the stakeholder through frequent value delivery. This will help the stakeholder to see the benefits of agile and overcome their reluctance. The other options are incorrect because:

B. Documenting the request and escalating to upper management to consider a modification of the project charter is not a persuasive strategy, but a confrontational one. It may create resistance and conflict with the stakeholder, and also undermine the project manager’s authority and credibility3.

C. Agreeing on a predictive approach, but applying agile concepts under the project management umbrella is not a transparent or ethical strategy. It may confuse and mislead the stakeholder, and also create inconsistency and ambiguity in the project management processes and practices4.

D. Ensuring the stakeholder that an agile approach will deliver all of the expected results in a shorter period of time is not a realistic or honest strategy. It may create unrealistic expectations and pressure on the project team, and also ignore the uncertainty and complexity of the project environment5. References:

1: Agile Practice Guide, Chapter 2, Section 2.1, page 13

2: Agile Practice Guide, Chapter 2, Section 2.2, page 14

3: PMBOK Guide, 6th edition, Chapter 13, Section 13.3.2.3, page 524

4: PMBOK Guide, 6th edition, Chapter 1, Section 1.2.3, page 7

5: Agile Practice Guide, Chapter 2, Section 2.3, page 15

According to the PMBOK Guide, the project management plan is a formal, approved document that defines how the project is executed, monitored, and controlled1. It integrates and consolidates all of the subsidiary plans and baselines from the project management processes1. One of the subsidiary plans is the procurement management plan, which describes how the project will acquire goods and services from outside the performing organization2. The procurement management plan should include the procurement strategy, the types of contracts, the procurement documents, the source selection criteria, the roles and responsibilities, the make-or-buy decisions, and the assumptions and constraints2. Therefore, the project manager should have communicated the project management plan, including the procurement management plan, to the procurement division earlier in the project to ensure the purchase of the specific equipment. The other options are not the best actions for the project manager to have done earlier in the project. Communicating the project charter to the procurement division may not be sufficient, as the project charter only provides the high-level description of the project and its boundaries, not the details of the procurement activities3. Including a procurement division member on the project team may not be necessary or feasible, as the project team may have limited authority or influence over the procurement division’s policies and procedures. Reminding the project sponsor about the procurement division’s reputation is not a constructive or professional way to deal with the issue, as it may create conflict or resentment between the parties. References:

1: PMBOK Guide, 6th edition, page 89

2: PMBOK Guide, 6th edition, page 463

3: PMBOK Guide, 6th edition, page 77

: PMBOK Guide, 6th edition, page 33

: PMBOK Guide, 6th edition, page 558

 According to the PMBOK Guide, the project steering committee is a group of senior stakeholders who provide strategic direction, guidance, and support to the project. The project steering committee is also responsible for resolving high-level issues and risks that may affect the project. In this scenario, the project manager should escalate the issue of funding access to the project steering committee, as they have the authority and influence to resolve it. The project steering committee can help to expedite the funding process, negotiate with the finance department, or find alternative sources of funding. This will help to avoid further delays and ensure the project can proceed with the procurement process. References: PMBOK Guide, 6th edition, page 33-34. PMP Questions page 524, question 524. [Project Steering Committee: Roles and Responsibilities].

A burndown chart is a graphical tool that shows the amount of work remaining versus the time available for a release or iteration. It helps the agile project manager and the team to monitor the progress and velocity of the work, identify any deviations or impediments, and adjust the plan accordingly. A burndown chart can provide a deeper look into the team’s progress than a release plan, a product roadmap, or a Kanban board, which are more high-level and strategic tools that show the scope, vision, and priorities of the project. 123 References:

https://www.pmi.org/learning/library/agile-metrics-progress-tracking-status-6564

https://www.forbes.com/advisor/business/what-is-agile-project-management/

According to the PMBOK Guide, a project budget is the authorized amount of funds allocated to the project. The project budget is derived from the cost baseline, which is the aggregation of the estimated costs of individual activities or work packages. The project budget should reflect the project scope, schedule, resources, risks, and quality requirements. A project manager should review the base budget model with the team leaders in each country to establish an independent budget for each phase when delivering a highly customizable software solution in multiple countries with significantly different cultures. This will help to account for the variations in the project requirements, constraints, assumptions, and risks in each country and phase, and to ensure the accuracy and adequacy of the project budget. Reviewing the base budget model with the team leaders in each country to establish an independent budget for each phase is the best action that the project manager should do next in this situation. Overestimating costs and underestimating revenues to include the impacts of different cultural elements (B) may not be realistic or reliable, as it may create a false sense of security, waste resources, or reduce profitability. Applying the company’s operational budgeting model © may not be suitable or applicable, as it may not capture the specific characteristics and challenges of the project. Asking the project management office (PMO) to review the draft budget (D) may be a possible action, but not the next one, as it may be premature or ineffective without reviewing the base budget model with the team leaders in each country first. References: PMBOK Guide, 6th edition, pages 235-236, 260-261.

 According to the PMBOK Guide, daily standup meetings are a common tool used in agile and hybrid project management approaches. They are short, time-boxed meetings that allow the project team to communicate their progress, issues, and plans for the day. Daily standup meetings can enhance collaboration, transparency, and alignment among the project team members. However, some team members may resist or challenge the use of daily standup meetings, especially if they are not familiar with them or perceive them as a waste of time. In this situation, the project manager should define the ground rules, responsibilities, and conflict management strategies for the project team. The project manager should explain the purpose and benefits of daily standup meetings, and establish clear expectations and guidelines for their conduct. The project manager should also assign roles and responsibilities to the team members, such as facilitator, timekeeper, recorder, etc. The project manager should also address any conflicts or issues that may arise from the use of daily standup meetings, and resolve them in a constructive and respectful manner. The project manager should not engage an external vendor, request new team members, or update the project schedule, as these actions may not address the root cause of the team’s resistance or challenge to the daily standup meetings. References:

PMBOK Guide, 6th edition, pages 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, …

The project manager should take proactive steps to restore the team morale and trust after an incident that affects the team dynamics. Hosting a special meeting to talk about what happened is a way to facilitate open communication, address the root causes of the conflict, and resolve any issues or grievances among the team members. Conducting a team-building workshop is a way to enhance the team cohesion, collaboration, and performance by engaging the team in fun and interactive activities that foster positive relationships and mutual respect. These two actions are consistent with the principle of leading with empathy and respect, which is part of the PMI Talent Triangle®. References:

PMBOK Guide 7th Edition, page 133

Agile Practice Guide, page 48

PMI Talent Triangle® 1

According to the PMBOK Guide, one of the key principles of agile project management is to deliver value to the customer early and often1. This can be achieved by using an iterative and incremental approach, where the project team delivers working increments of the product at the end of each iteration or sprint2. The project team should also demonstrate the built portion of the product to the stakeholders and obtain their feedback and acceptance3. Therefore, the best option is to include demonstrations of the built portion of the product at the end of every sprint. Option A is incorrect because preparing performance value reports for the business on an ongoing basis may not be the most effective way to illustrate the project business value, as it may not reflect the actual functionality and usability of the product. Option C is incorrect because preparing a project report for the stakeholders and distributing it weekly may not be sufficient or timely to show the progress and value of the product, as it may not include the stakeholder input and validation. Option D is incorrect because confirming the minimum viable product (MVP) and demonstrating it to the business when it is ready may not be consistent with the agile principle of delivering value early and often, as it may delay the stakeholder feedback and satisfaction. References: 1: PMBOK Guide, 6th edition, section 1.2.3, p. 8 2: PMBOK Guide, 6th edition, section 6.2.2.1, p. 177 3: PMBOK Guide, 6th edition, section 6.2.2.4, p. 178

The project management team should review the project plan to evaluate if any updates should be made in response to the news that a competitor has released the latest version of a program. The project plan is a document that describes how the project will be executed, monitored, and controlled. It includes the project scope, schedule, cost, quality, resources, communications, risks, procurements, and stakeholder management plans. The project management team should assess the impact of the competitor’s release on the project’s objectives, deliverables, assumptions, constraints, and risks. The project management team should also consult with the project sponsor, customer, and other key stakeholders to determine their expectations and preferences regarding the project’s scope and quality. The project management team should then decide if any changes or updates are needed to the project plan to ensure the project’s success and value. The project management team should follow the change management process to request, analyze, approve, and implement any changes to the project plan.

The other options are not the best actions for the project management team to take in this situation. Crashing the existing schedule with additional resources to deliver more features may not be feasible or effective, as it may increase the project’s cost, complexity, and risk. It may also not address the customer’s needs or the market’s demand, as the features may not be relevant or valuable. The project management team should not rush to add more features without validating their necessity and feasibility. Stopping the project immediately as the market opportunity has already been missed may be premature and wasteful, as it may disregard the project’s benefits and potential. It may also damage the project’s reputation and stakeholder’s trust. The project management team should not abandon the project without evaluating its viability and value. Continuing with the project plan and target delivery date as expected may be unrealistic and risky, as it may ignore the competitor’s influence and the customer’s feedback. It may also result in delivering a product that is outdated or inferior. The project management team should not proceed with the project plan without reviewing its alignment and suitability. References:

PMBOK® Guide, 6th Edition, Chapter 4, Section 4.2, “Develop Project Management Plan”

PMBOK® Guide, 6th Edition, Chapter 4, Section 4.6, “Perform Integrated Change Control”

PMP Project Management Professional Exam Study Guide: 2021 Exam Update, 10th Edition, Chapter 4, Section 4.2, “Developing the Project Management Plan” 1

According to the PMBOK Guide, 6th edition, page 141, the project manager should engage with stakeholders throughout the project life cycle to ensure that their needs and expectations are met. When there are changes in the stakeholder environment, such as new or replaced stakeholders, the project manager should identify them and assess their impact on the project. The project manager should also review and prioritize the new requirements with the stakeholders and analyze how they affect the project scope, schedule, cost, quality, and risk. The project manager should then follow the change control process to submit, evaluate, approve, and implement the change requests that are needed to accommodate the new requirements. This approach ensures that the project manager maintains effective communication, collaboration, and alignment with the stakeholders, and delivers a product, service, or result that meets their needs and expectations.

The other options are not the best choices because they do not address the new requirements in a proactive and collaborative manner. Option B is not the best choice because it implies that the project manager is trying to avoid the new requirements and resist the change, which could create conflict and dissatisfaction among the stakeholders. Option C is not the best choice because it implies that the project manager is accepting all the new requirements without analyzing their impact and feasibility, which could lead to scope creep, unrealistic expectations, and poor quality. Option D is not the best choice because it implies that the project manager is imposing a rigid and inflexible approach to the project, which could alienate the new stakeholders and jeopardize their support and engagement.

 According to the PMBOK Guide, the project manager should follow the change management process to handle any change request, regardless of the source or nature of the change. The change management process involves identifying, analyzing, documenting, presenting, deciding, communicating, and implementing the change request. The first step in this process is to validate the proposed change’s impact on the project, which means assessing how the change would affect the project scope, schedule, cost, quality, risk, and other aspects. This would help the project manager to determine the feasibility, desirability, and priority of the change request, and to prepare a recommendation for the change control board (CCB). The project manager should not check the budget, accept, or refuse the change request without validating its impact first, as these actions would bypass the change management process and could lead to negative consequences for the project. References:

PMBOK Guide’s Change Management Process For PMP Exam

Change Management Process for Project

Managing Change in Organizations: A Practice Guide

According to the PMBOK Guide, a business case is a document that provides the justification for undertaking a project or an additional scope, based on the estimated costs, benefits, and risks. A project manager should develop a business case and submit it to the client when they realize that some minor changes could deliver significant benefits to the client early. This will help to communicate the value proposition of the changes, and to seek the client’s approval and support. Developing a business case and submitting it to the client is the best approach that the project manager should take in this situation. Concentrating on the current project milestones (A) may not be optimal or beneficial, as it may miss the opportunity to enhance the client satisfaction and project outcomes. Updating the project management plan for this new work (B) may not be feasible or ethical, as it may violate the project scope, schedule, and budget baselines, and the agreed-upon project objectives and deliverables. Making all the changes and then showing the client the results (D) may not be appropriate or acceptable, as it may create scope creep, increase project risks, and damage the trust and relationship with the client. References: PMBOK Guide, 6th edition, pages 33, 75, 129.

According to the PMBOK® Guide, the project manager is responsible for managing the communication among stakeholders, and ensuring that the information needs of the project are met (Section 10.1). The project manager should also establish and enforce the ground rules for communication within the project team, and address any issues that may arise from unauthorized or inappropriate communication (Section 9.3.2.4). By pointing out to the project team and the customer that all information concerning the timeline of the project should be communicated by the project manager, the project manager can prevent confusion, misunderstanding, and conflict among the stakeholders, and maintain control over the project scope and schedule. This is also consistent with the Professional in Business Analysis (PMI-PBA)® Examination Content Outline, which states that one of the tasks of a business analyst is to “communicate requirements information to stakeholders according to the communication plan” (Task 4.3). References:

PMBOK® Guide, 6th Edition, Section 10.1, Section 9.3.2.4

Professional in Business Analysis (PMI-PBA)® Examination Content Outline, Task 4.3

 The project manager should call for a team meeting to identify the root cause for the declining performance, as this is part of managing project team. Managing project team involves tracking team member performance, providing feedback, resolving issues, and managing team changes. By calling for a team meeting, the project manager can engage the team members in problem-solving, address any conflicts or misunderstandings, and motivate them to improve their performance. The other options are not the best ways to improve the situation, as they either ignore, delay, or bypass the team involvement. References: (Professional in Business Analysis Reference Materials source and documents)

PMBOK Guide, 6th edition, Chapter 9, Section 9.4

PMP Exam Content Outline, June 2019, Domain III, Task 10

PMP Sample Test Questions, Question 175

According to the PMBOK Guide, 6th edition, one of the key processes of the Project Integration Management knowledge area is Close Project or Phase, which involves finalizing all activities across all of the project management process groups to formally complete the project or phase. One of the tools and techniques for this process is benefits transition, which involves transferring the ownership of the project’s benefits to the assigned business owner or sponsor, who will be responsible for sustaining and enhancing the value of the project outcomes. By confirming ownership for ongoing value realization, the project manager can ensure that the project team members understand the benefits of the project features and how they will be measured and monitored after the project closure. References: PMBOK Guide, 6th edition, pages 123-124, 129.

According to the PMBOK® Guide, the project manager is responsible for leading and directing the project team and ensuring that the project objectives are met. Therefore, the project manager should not delegate the decision-making authority to the team or the sponsor without analyzing the impacts and creating a plan for team decision making. The project manager should also consider the risks, issues, and stakeholder expectations that may arise during their absence and communicate the plan to the relevant parties. Postponing the vacation to a different time may not be feasible or desirable for the project manager, and it may also affect their work-life balance. Allowing the team to make decisions to stay on schedule may result in scope creep, quality issues, or conflicts among team members. Asking the project sponsor to make any necessary decisions may undermine the project manager’s authority and credibility, and it may also burden the sponsor with additional work. References: PMBOK® Guide, Sixth Edition, Chapter 9, Section 9.4.2.3 (Team Decision Making) and Chapter 13, Section 13.3.2.4 (Project Manager)

The project manager should gather relevant cultural data and engage members in discussions covering their work ethics because this is the best way to avoid uncertainty in the project due to different cultures. Cultural differences can affect the communication, collaboration, and performance of a virtual team, and may lead to misunderstandings, conflicts, or delays. Therefore, the project manager should collect and analyze information about the cultural backgrounds, preferences, and expectations of the team members, and use this data to design and implement appropriate communication and management strategies. The project manager should also facilitate open and respectful dialogue among the team members, and encourage them to share their work values, norms, and practices. This can help to build trust, rapport, and mutual understanding within the team, and foster a positive and productive work environment. The other options are not the best choices because they do not address the root cause of the problem, which is the lack of cultural awareness and sensitivity. Starting the project and adding any uncertainty that arises to the risk register (option A) may be too reactive and insufficient, as it does not prevent or mitigate the potential issues caused by cultural differences. Dissolving the virtual team and building a colocated team (option B) may be impractical or impossible, as it may depend on the availability, budget, and scope of the project. Building a culturally neutral team that will not be affected by cultural differences (option D) may be unrealistic or undesirable, as it may ignore or suppress the diversity and richness of the team members’ cultures, and may also violate the agile principle of valuing individuals and interactions over processes and tools. References: PMBOK Guide, 6th edition, pages 52, 273, 335, 686-687. PMP Questions page 447. PMP Practice Exam | Free PMP Practice Questions.

 According to the PMBOK® Guide, the project manager is responsible for closing the project or phase, which includes verifying that all the project deliverables are completed and accepted, updating the project records and documents, releasing the project resources, and communicating the project closure to the stakeholders. Performing administrative closure of the project ensures that the project is formally completed and closed, and that the project budget is finalized and closed as well. This will prevent any confusion or issues with the accounting manager or other parties in the future. Conveying task completion information to accounting may be part of the project closure process, but it is not sufficient to close the project budget. The project manager should also update the project status, financial records, and lessons learned. Closing the procurement process properly is necessary for projects that involve contracts or agreements with external vendors or suppliers, but it is not the only aspect of closing the project. The project manager should also close the internal aspects of the project, such as deliverables, resources, and stakeholder satisfaction. Completing the transition process is relevant for projects that produce products, services, or results that need to be transferred to the operations or maintenance teams, but it is not the only activity for closing the project. The project manager should also ensure that the project objectives are met, the project scope is verified, and the project performance is evaluated. References: PMBOK® Guide, Sixth Edition, Chapter 4, Section 4.7 (Close Project or Phase) and Appendix X3, Table X3-1 (Project Closure Checklist)

The project manager should ensure that the product owner collaborates with the compliance officer to review the user stories in the product backlog and ensure that they meet the regulatory requirements. This is consistent with the agile principle of satisfying the customer through early and continuous delivery of valuable software. The project manager should also monitor the compliance status of the product backlog items and communicate any risks or issues to the relevant stakeholders. The project manager should not have the team consult with the compliance officer to update the DoD for the past sprint, as this would be a waste of time and resources. The project manager should not have the product owner consult with the CCB, as this would introduce unnecessary bureaucracy and delay the delivery of value. The project manager should not have the scrum master organize a weekly meeting with the compliance officer, the product owner, and the project team, as this would reduce the autonomy and self-organization of the team. References:

PMP Exam Content Outline (2021), Domain II: Process, Task 2: Execute project with the urgency required to deliver business value, p. 101

A Guide to the Project Management Body of Knowledge (PMBOK Guide), Sixth Edition, Chapter 5: Project Scope Management, Section 5.4.2.1: Product Backlog, p. 1542

Agile Practice Guide, First Edition, Chapter 2: Life Cycle Selection, Section 2.2.1: Scrum, p. 213

Professional in Business Analysis (PBA) Examination Content Outline (2018), Domain III: Analysis, Task 1: Elicit Requirements, p. 14

According to the PMBOK Guide, one of the key roles of the project manager in an agile environment is to facilitate collaboration among stakeholders and the team. This helps to manage conflicts, clarify requirements, and align expectations. The project manager should also promote the agile values and principles, such as customer satisfaction, responding to change, and delivering value incrementally. By doing so, the project manager can help move the project forward and ensure the delivery of a high-quality product that meets the customer’s needs. (PMBOK Guide, 6th edition, pp. 53-54) References:

PMBOK Guide, 6th edition, Chapter 3: The Role of the Project Manager, Section 3.3: The Project Manager’s Sphere of Influence, pp. 53-54

Agile Practice Guide, Chapter 2: An Introduction to Agile, Section 2.2: Agile Manifesto Values and Principles, pp. 10-13

According to the PMBOK Guide, 6th edition, one of the key skills of a project manager is to negotiate with stakeholders to achieve project objectives and balance the competing project constraints. Negotiation is also a tool and technique for the process of Manage Stakeholder Engagement, which aims to ensure that stakeholders’ needs and expectations are met or exceeded. By engaging in creative and iterative negotiations with the leaders of each entity, the project manager can foster collaboration, trust, and commitment among the parties involved in the project, and ensure that the launch date is acceptable and feasible for all. This will increase the likelihood of timely and successful adoption of the new solution by the entire organization. References: PMBOK Guide, 6th edition, pages 53, 513-514, 518.

Velocity is a measure of the amount of work a team can complete in a given iteration. It is calculated by dividing the total number of story points completed by the team by the duration of the iteration. Velocity can vary from iteration to iteration due to various factors such as team size, complexity of work, technical issues, etc. Therefore, it is not advisable to use a single iteration’s velocity as a baseline for future planning. Instead, the project manager should ask the product owner to look at a minimum of four to eight iterations and use the average or median velocity as a more reliable indicator of the team’s performance. This way, the product owner can replan the velocity for the next iteration based on the team’s current performance and adjust the scope and schedule accordingly. This is consistent with the agile principle of responding to change over following a plan and the PMI-PBA practice of planning and monitoring the business analysis approach. References:

PMBOK Guide, 6th edition, page 18, section 1.2.3.2

Agile Practice Guide, page 36, section 3.3.2

PMI-PBA Exam Content Outline, page 9, task 1.1

PMI-PBA Certification Exam Prep Guide, page 63, section 3.2.1

 The stakeholder engagement plan is a subsidiary plan of the project management plan that identifies the strategies and actions required to promote productive involvement of stakeholders in project decisions and execution. It is a dynamic document that should be updated throughout the project as stakeholder needs and expectations change. The project manager should explain to the key stakeholder that their needs will be updated in the stakeholder engagement plan and that their continued participation is important for the project success. References: PMBOK Guide, 7th edition, section 13.2.3.1; Professional in Business Analysis (PMI-PBA) Guide, 2nd edition, section 4.2.3.1.

 The project manager should consult the project team to understand the extent of the training needs for the contractor. This is consistent with the agile value of individuals and interactions over processes and tools1. The project manager should also collaborate with the contractor to provide them with the necessary guidance and coaching on the agile principles and practices2. Asking the project sponsor to replace the contractor since they do not have agile experience (A) is not a good option since it may cause unnecessary delays and costs for the project. Issuing a formal notice to the contractor to obtain an agile certification (B) is also not appropriate since it may create a sense of distrust and resentment in the contractor. Instructing the contractor to receive agile training since the project has already started (D) is not a sufficient action since it does not address the specific needs and expectations of the project team and the contractor. References:

1: Agile Practice Guide, Chapter 1, Section 1.2.1

2: Agile Practice Guide, Chapter 2, Section 2.3.2.2

According to the PMI Guide to Business Analysis, emotional intelligence is the ability to perceive, understand, and manage one’s own and others’ emotions. It is an essential skill for agile teams, as it helps to foster collaboration, trust, communication, and feedback. A project leader who invests in developing the team’s emotional intelligence can help to motivate the team members, resolve conflicts, and improve performance. Asking the unmotivated team member to take a short leave, reducing the number of meetings, or sending the team member to another team are not effective solutions, as they do not address the root cause of the problem or help the team member to improve their motivation and engagement. References:

PMI Guide to Business Analysis, pages 38-39, 2.4.3 Emotional Intelligence

PMI-PBA Sample Questions, question 10, answer A

The project manager should recommend the product owner prioritize the missing work higher because it is needed for the initial launch of the new product. The product owner is responsible for defining and prioritizing the product backlog, which is a list of features and requirements that the customer wants to have in the product. The product owner should ensure that the product backlog reflects the customer’s needs and preferences, as well as the project’s scope and objectives. The project manager should collaborate with the product owner and provide guidance and support on the product backlog management. The project manager should also communicate with the agile team and facilitate their involvement and feedback on the product backlog. The project manager should advise the product owner to prioritize the missing work higher because it is essential for the minimum viable product (MVP), which is a version of the product that has enough features and functionality to satisfy the customer’s needs and expectations. The MVP is the main goal of the initial launch of the new product, as it allows the project team to deliver value to the customer early and often, and to obtain feedback and validation for the product. The project manager should explain to the product owner the importance and benefits of delivering the MVP, and the risks and consequences of delaying or omitting the missing work. The project manager should also help the product owner to balance the competing demands and trade-offs of the product backlog, and to align the product backlog with the project’s vision, goals, and strategy.

The other options are not the best actions for the project manager to take in this situation. Letting the project team pull the recommended work from the bottom of the backlog to maximize value creation may cause confusion and inconsistency in the product backlog, as well as conflict and distrust between the product owner and the agile team. The product owner is the sole authority for defining and prioritizing the product backlog, and the agile team should respect and follow the product owner’s decisions. The project manager should not undermine the product owner’s role or authority, but rather support and facilitate the collaboration and communication between the product owner and the agile team. Analyzing and reprioritizing the backlog and providing the decision to the product owner and team may also undermine the product owner’s role and authority, as well as violate the agile principles and values. The project manager should not impose their own decisions or opinions on the product backlog, but rather advise and assist the product owner in making informed and effective decisions. The project manager should also not act as a intermediary or a gatekeeper between the product owner and the agile team, but rather enable and encourage direct and frequent interaction and feedback among them. Empowering the product owner by supporting the decision and instructing the team to follow the prioritization as provided may ignore the agile team’s input and feedback, as well as jeopardize the project’s success and quality. The project manager should not blindly support the product owner’s decision or instruct the agile team to follow the prioritization as provided, especially if the decision or the prioritization is not aligned with the project’s scope and objectives, or the customer’s needs and expectations. The project manager should challenge and question the product owner’s decision or prioritization if it is not based on valid and relevant criteria or data, or if it does not deliver the maximum value to the customer and the project. The project manager should also listen and consider the agile team’s input and feedback, as they have the technical expertise and experience to perform the work and to deliver the product. References:

PMBOK® Guide, 6th Edition, Appendix X3, Section X3.2.2.4, “Prioritized Product Backlog”

PMBOK® Guide, 6th Edition, Appendix X3, Section X3.2.2.6, “Minimum Viable Product”

PMBOK® Guide, 6th Edition, Chapter 13, Section 13.2.2.1, “Stakeholder Engagement Plan”

PMP Project Management Professional Exam Study Guide: 2021 Exam Update, 10th Edition, Chapter 12, Section 12.2, “Agile Project Management” 1

When a project manager encounters a potential change in the project environment, such as a new law that may affect the project, the first two actions they should perform are to identify the risks and consult the stakeholders. Risk identification is the process of determining the risks that may affect the project and documenting their characteristics. It is an iterative process that should be performed throughout the project life cycle, especially when there are changes or uncertainties. Consulting the stakeholders is also important, as they may have valuable insights, opinions, or expectations regarding the potential impacts of the new law on the project. The project manager should communicate with the stakeholders and seek their feedback and support. Creating a change request, requesting additional budget, or discussing with SMEs are not the first actions to perform, as they require more analysis and evaluation of the situation. A change request should be submitted only after the project manager has assessed the impact of the change and determined the best course of action. Requesting additional budget should be based on a realistic estimate of the cost implications of the change, not on a contingency. Discussing with SMEs may be helpful, but it is not as essential as involving the project team and the stakeholders, who have more direct interest and influence on the project. References:

A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Chapter 11, Section 11.2

Practice Standard for Project Risk Management, Chapter 3, Section 3.1

The Standard for Project Management, Chapter 4, Section 4.3.2

To answer this question, we need to calculate the earned value (EV), the planned value (PV), and the actual cost (AC) of the project based on the given information. Then, we can compare them to determine the project status in terms of schedule and cost performance.

The earned value (EV) is the monetary value of the work completed so far. It can be calculated by multiplying the percent complete of the project by the budget at completion (BAC), which is the total approved budget for the project. The BAC can be obtained by adding the approved work package cost estimates, the contingency reserves, and the management reserves. In this case, the BAC is:

BAC=9500+500+(10%×500)=10550

The EV is then:

EV=50%×10550=5275

The planned value (PV) is the monetary value of the work that was planned to be completed by a certain date. It can be calculated by multiplying the planned percent of the project by the BAC. In this case, the PV is:

PV=40%×10550=4220

The actual cost (AC) is the monetary value of the work actually performed. It is given as:

AC=4500

To determine the project status, we can use the cost variance (CV) and the schedule variance (SV) formulas. The CV is the difference between the EV and the AC, and it indicates whether the project is under budget or over budget. A positive CV means the project is under budget, while a negative CV means the project is over budget. The CV is:

CV=EV−AC=5275−4500=775

The SV is the difference between the EV and the PV, and it indicates whether the project is ahead of schedule or behind schedule. A positive SV means the project is ahead of schedule, while a negative SV means the project is behind schedule. The SV is:

SV=EV−PV=5275−4220=1055

From the CV and SV values, we can conclude that the project is under budget and ahead of schedule. To find the percentage of deviation from the planned cost and schedule, we can use the cost performance index (CPI) and the schedule performance index (SPI) formulas. The CPI is the ratio of the EV to the AC, and it measures the cost efficiency of the project. A CPI greater than 1 means the project is under budget, while a CPI less than 1 means the project is over budget. The CPI is:

CPI=ACEV​=45005275​=1.17

The SPI is the ratio of the EV to the PV, and it measures the schedule efficiency of the project. A SPI greater than 1 means the project is ahead of schedule, while a SPI less than 1 means the project is behind schedule. The SPI is:

SPI=PVEV​=42205275​=1.25

From the CPI and SPI values, we can calculate the percentage of deviation from the planned cost and schedule by subtracting 1 and multiplying by 100. The percentage of deviation from the planned cost is:

(CPI−1)×100=(1.17−1)×100=17%

The percentage of deviation from the planned schedule is:

(SPI−1)×100=(1.25−1)×100=25%

Therefore, the project cost is 17% lower than planned, and the project schedule is 25% ahead of planned. Among the given options, the closest one is B. The project cost is 10% lower than planned.

This is the best option because it allows the project manager to address the current and future needs of the project, while also developing the skills and knowledge of the team. According to Project Management Best Practices for 2024 + Expert Tips, one of the best practices is to “provide your team members with opportunities to learn new skills and grow professionally”. This can increase their motivation, engagement, and productivity, as well as reduce turnover and improve quality.

Option A is not the best option because it may create conflicts or dependencies with another team, and it does not solve the long-term need for an SME in the specific area.

Option C is not the best option because it may incur additional costs and risks, and it does not foster the development of the team.

Option D is not the best option because it does not address the issue at all, and it may delay the project progress and quality.

The product owner is a key stakeholder in an agile project, who is responsible for defining and prioritizing the product backlog, providing feedback and acceptance for each product increment, and maximizing the value of the product and the work of the development team1. The product owner is not expected to focus on the cost or budget of the project, but rather on the value and quality of the product. The project manager should have worked with the product owner to clarify their role and expectations, and to explain the purpose and scope of the agile ceremonies, such as sprint planning, daily stand-up, sprint review, and sprint retrospective2. These ceremonies are meant to facilitate collaboration, communication, and adaptation among the project team and the product owner, not to report on the budget or cost of the project. The other options are not relevant or effective in changing the product owner’s behavior. References: 1: PMI, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Seventh Edition, Project Management Institute Inc., 2021, p. 177. 2: PMI, Agile Practice Guide, Project Management Institute Inc., 2017, pp. 50-53.