Free PMI Certification CAPM Ultimate Study Guide (Updated 1090 Questions) [Q257-Q281]

Section: Volume B
Explanation
Explanation:
11 PROJECT RISK MANAGEMENT
[..]
Organizations perceive risk as the effect of uncertainty on projects and organizational objectives. Organizations and stakeholders are willing to accept varying degrees of risk depending on their risk attitude. The risk attitudes of both the organization and the stakeholders may be influenced by a number of factors, which are broadly classifed into three themes:
Risk appetite, which is the degree of uncertainty an entity is willing to take on in anticipation of a reward.

Risk tolerance, which is the degree, amount, or volume of risk that an organization or individual will withstand.

Risk threshold, which refers to measures along the level of uncertainty or the level of impact at which a

stakeholder may have a specific interest. Below that risk threshold, the organization will accept the risk. Above that risk threshold, the organization will not tolerate the risk.
For example, an organization’s risk attitude may include its appetite for uncertainty, its threshold for risk levels that are unacceptable, or its risk tolerance at which point the organization may select a different risk response.
Positive and negative risks are commonly referred to as opportunities and threats. The project may be accepted if the risks are within tolerances and are in balance with the rewards that may be gained by taking the risks. Positive risks that offer opportunities within the limits of risk tolerances may be pursued in order to generate enhanced value. For example, adopting an aggressive resource optimization technique is a risk taken in anticipation of a reward for using fewer resources.

Explanation/Reference:
Explanation:
9.4.2.3 Conflict Management
Conflict is inevitable in a project environment. Sources of conflict include scarce resources, scheduling priorities, and personal work styles. Team ground rules, group norms, and solid project management practices, like communication planning and role definition, reduce the amount of conflict.
Successful conflict management results in greater productivity and positive working relationships. When managed properly, differences of opinion can lead to increased creativity and better decision making. If the differences become a negative factor, project team members are initially responsible for their resolution. If conflict escalates, the project manager should help facilitate a satisfactory resolution. Conflict should be addressed early and usually in private, using a direct, collaborative approach. If disruptive conflict continues, formal procedures may be used, including disciplinary actions.
The success of project managers in managing their project teams often depends a great deal on their ability to resolve conflict. Different project managers may utilize different conflict resolution methods.
Factors that influence conflict resolution methods include:
* Relative importance and intensity of the conflict,
* Time pressure for resolving the conflict,
* Position taken by persons involved, and
* Motivation to resolve conflict on a long-term or a short-term basis.
There are five general techniques for resolving conflict. As each one has its place and use, these are not given in any particular order:
Withdraw/Avoid. Retreating from an actual or potential conflict situation; postponing the issue to be

better prepared or to be resolved by others.
Smooth/Accommodate. Emphasizing areas of agreement rather than areas of difference; conceding

one’s position to the needs of others to maintain harmony and relationships.
Compromise/Reconcile. Searching for solutions that bring some degree of satisfaction to all parties in

order to temporarily or partially resolve the conflict.
Force/Direct. Pushing one’s viewpoint at the expense of others; offering only win-lose solutions, usually

enforced through a power position to resolve an emergency.
Collaborate/Problem Solve. Incorporating multiple viewpoints and insights from differing perspectives;

requires a cooperative attitude and open dialogue that typically leads to consensus and commitment.
Process: 9.4 Manage Project Team
Definition: The process of tracking team member performance, providing feedback, resolving issues, and managing changes to optimize project performance.
Key Benefit: The key benefit of this process is that it influences team behavior, manages conflict, resolves issues, and appraises team member performance.
Inputs
1. Human resource management plan
2. Project staff assignments
3. Team performance assessments
4. Issue log
5. Work performance reports
6. Organizational process assets
Tools & Techniques
1. Observation and conversation
2. Project performance appraisals
3. Conflict management
4. Interpersonal skills
Outputs
1. Change requests
2. Project management plan updates
3. Project documents updates
4. Enterprise environmental factors updates
5. Organizational process assets updates

Section: Volume E

Section: Volume B

Explanation/Reference:
Explanation:
6.6.2.3 Critical Chain Method
The critical chain method (CCM) is a schedule method that allows the project team to place buffers on any project schedule path to account for limited resources and project uncertainties. It is developed from the critical path method approach and considers the effects of resource allocation, resource optimization, resource leveling, and activity duration uncertainty on the critical path determined using the critical path method. To do so, the critical chain method introduces the concept of buffers and buffer management. The critical chain method uses activities with durations that do not include safety margins, logical relationships, and resource availability with statistically determined buffers composed of the aggregated safety margins of activities at specified points on the project schedule path to account for limited resources and project uncertainties. The resource-constrained critical path is known as the critical chain.
The critical chain method adds duration buffers that are non-work schedule activities to manage uncertainty.
One buffer, placed at the end of the critical chain, as shown in Figure 6-19, is known as the project buffer and protects the target finish date from slippage along the critical chain. Additional buffers, known as feeding buffers, are placed at each point where a chain of dependent activities that are not on the critical chain feeds into the critical chain. Feeding buffers thus protect the critical chain from slippage along the feeding chains. The size of each buffer should account for the uncertainty in the duration of the chain of dependent activities leading up to that buffer. Once the buffer schedule activities are determined, the planned activities are scheduled to their latest possible planned start and finish dates. Consequently, instead of managing the total float of network paths, the critical chain method focuses on managing the remaining buffer durations against the remaining durations of chains of activities.

Figure 6-19. Example of Critical Chain Method

Section: Volume E

Section: Volume E

Explanation/Reference:
Reference: https://4squareviews.com/2013/03/15/5th-edition-pmbok-guide-chapter-5-process-5-5-validate- scope/

Section: Volume D

Section: Volume B
Explanation:
Process: 4.5 Perform Integrated Change Control
Perform Integrated Change Control is the process of reviewing all change requests; approving changes and managing changes to deliverables, organizational process assets, project documents, and the project management plan; and communicating their disposition. It reviews all requests for changes or modifications to project documents, deliverables, baselines, or the project management plan and approves or rejects the changes.
Key Benefit: The key benefit of this process is that it allows for documented changes within the project to be considered in an integrated fashion while reducing project risk, which often arises from changes made without consideration to the overall project objectives or plans.
Inputs
1. Project management plan
2. Work performance reports
3. Change requests
4. Enterprise environmental factors
5. Organizational process assets
Tools & Techniques
1. Expert judgment
2. Meetings
3. Change control tools
Outputs
1. Approved change requests
2. Change log
3. Project management plan updates
4. Project documents updates

Section: Volume E

Section: Volume D
Explanation:
There are five general techniques for resolving conflict. As each one has its place and use, these are not given in any particular order:
Withdraw/Avoid. Retreating from an actual or potential conflict situation; postponing the issue to be better

prepared or to be resolved by others.
Smooth/Accommodate. Emphasizing areas of agreement rather than areas of difference; conceding one’s

position to the needs of others to maintain harmony and relationships.
Compromise/Reconcile. Searching for solutions that bring some degree of satisfaction to all parties in order

to temporarily or partially resolve the conflict.
Force/Direct. Pushing one’s viewpoint at the expense of others; offering only win-lose solutions, usually

enforced through a power position to resolve an emergency.
Collaborate/Problem Solve. Incorporating multiple viewpoints and insights from differing perspectives;

requires a cooperative attitude and open dialogue that typically leads to consensus and commitment.

Section: Volume D
Explanation/Reference:
Explanation:
CPI = EV / AC