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NEW QUESTION: 1
Management reserve is needed on projects. According to the PMBOK Guide, which of the following is true about management reserve?
A. Its use does not require a change in the project's baseline
B. It may involve cost but not schedule
C. It allows for handling future situations that are impossible to predict
D. It is sometimes called "unknown knowns"
Answer: C
Explanation:
[#1] Mine was C, Reference is PMBOK 143-144 Source: IIL PMIQ (based on Kerzner). D & B can pretty much be eliminated. So let's look at the reference to choose between A & C. A visual scan of pages 143-144 and an electronic search for the term "management reserves" in PMBOK returns no results. However, there is a definition of known vs unknown risks with regard to contingencies on p.129 that says "Known risks are those that have been identified and analyzed, and it may be possible to plan for them. Unknown risks cannot be managed, although the project managers may address them by applying a general contingency based upon past experience with similar projects."PMBOK does not suggest that general (ie management) contingencies are for risks that are IMPOSSIBLE to predict. In fact, it suggests the opposite by saying that past experience would be the basis for determining the general contingency amounts!Kerzner's own definition (p. 833) also contradicts the question, leading me to believe it is an error on the CD: "Management reserves are the contingency funds established by the program manager to counteract unavoidable delays that can affect the project's critical path. Management reserves cover unforeseen events within a defined project scope that experience has shown are likely to occur. Management reserves are not used for unlikely major force events or changes in scope."OK, so does everyone agree this test question is flawed?[#2] I disagree with you. I would have picked A as the answer.Management reserves are held by the sponsor, for his/her own needs, to ensure the project can be completed. The project manager should have defined his/her own contingency allowance based on risk, presumably to cover off the "unknown-knowns". Keep in mind that contingency allowance is distinct from management reserve.[#3] This is correct. To reinforce the point, Management Reserves belong to management, not to the Project Manager, and they are not part of the project plan. Management reserves are for the protection of management, not the project or the PM. The PM can include contingency in the project plan, based on risk analysis, but this is not management reserve. In the event of an unplanned-for risk event (an unknown-unknown), management reserves might be used to reduce the impact that the troubled project has on any other plans management might have. Management reserve can take any number of forms, e.g. budget reserve (have extra cash budgeted to apply to troubled projects), or schedule reserve (telling you they need it by January and not planning for it to be available until May). Management reserves do protect the project, in the sense that, if the project is in trouble, they help prevent losing the business need for the project and thus prevent it from being cancelled.

NEW QUESTION: 2
An input to the Create WBS process is a:
A. project scope statement.
B. project charter.
C. requirements traceability matrix.
D. stakeholder register.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
5.3.3.1 Project Scope Statement
The project scope statement is the description of the project scope, major deliverables, assumptions, and constraints. The project scope statement documents the entire scope, including project and product scope.
It describes, in detail, the project's deliverables and the work required to create those deliverables. It also provides a common understanding of the project scope among project stakeholders. It may contain explicit scope exclusions that can assist in managing stakeholder expectations. It enables the project team to perform more detailed planning, guides the project team's work during execution, and provides the baseline for evaluating whether requests for changes or additional work are contained within or outside the project's boundaries.
The degree and level of detail to which the project scope statement defines the work that will be performed and the work that is excluded can help determine how well the project management team can control the overall project scope. The detailed project scope statement, either directly, or by reference to other documents, includes the following:
Product scope description. Progressively elaborates the characteristics of the product, service, or result

described in the project charter and requirements documentation.
Acceptance criteria. A set of conditions that is required to be met before deliverables are accepted.

Deliverable. Any unique and verifiable product, result, or capability to perform a service that is required to

be produced to complete a process, phase, or project. Deliverables also include ancillary results, such as project management reports and documentation. These deliverables may be described at a summary level or in great detail.
Project exclusion. Generally identifies what is excluded from the project. Explicitly stating what is out of

scope for the project helps to manage stakeholders' expectations.
Constraints. A limiting factor that affects the execution of a project or process. Constraints identified with

the project scope statement list and describe the specific internal or external restrictions or limitations associated with the project scope that affect the execution of the project, for example, a predefined budget or any imposed dates or schedule milestones that are issued by the customer or performing organization.
When a project is performed under an agreement, contractual provisions will generally be constraints.
Information on constraints may be listed in the project scope statement or in a separate log.
Assumptions. A factor in the planning process that is considered to be true, real, or certain, without proof

or demonstration. Also describes the potential impact of those factors if they prove to be false. Project teams frequently identify, document, and validate assumptions as part of their planning process.
Information on assumptions may be listed in the project scope statement or in a separate log.
The project team must complete a scope statement for developing a common understanding of the project scope among stakeholders. This lists project deliverables - summary level sub-products, whose full and satisfactory delivery marks the completion of the project.
5.4 Create WBS
Definition: WBS is the process of subdividing project deliverables and project work into smaller, more manageable components. Key Benefit: The key benefit of this process is that it provides a structured vision of what has to be delivered.
Inputs
1. Scope management plan
2. Project scope statement
3. Requirements documentation
4. Enterprise environmental factors
5. Organizational process assets
Tools & Techniques
1. Decomposition
2. Expert judgment
Outputs
1. Scope baseline
2. Project documents updates

NEW QUESTION: 3

A. Option B
B. Option C
C. Option A
D. Option E
E. Option D
Answer: C,E