Learn with PECB : ISO-21502-Lead-Project-Manager training material for 100% pass

Arka, a manufacturing company, has initiated a project together with two other companies. Jim, who is the CEO of Arka, has suggested that the project board consist of representatives from each company instead of only Arka's personnel in order to increase transparency. However, the representatives of the other companies disagreed, claiming that this would not be compliant with ISO 21502 guidelines. Instead, they are suggesting that they outsource the function of the project board to avoid conflicts of interest. Is this in compliance with ISO 21502?

• A. No, ISO 21502 states that the project board can include representatives from each company if they are working in a joint project
• B. No, according to ISO 21502, the three companies should unanimously choose only one company whose representatives will act as the project board and not include representatives from all companies
• C. Yes, ISO 21502 suggests that companies outsource their project board function in order to avoid conflicts of interest when working in a joint project

Who should be consulted as part of project management progress evaluations?

• A. Work package leaders only
• B. Project board and project assurance
• C. Project sponsors and project managers and their teams

What are proposal requests?

• A. Requests when the solution is determined and when the price is the sole criterion for choosing the supplier
• B. Requests used to obtain supplier proposals when the buyer needs a proposed solution, approach, or offer for the required work
• C. Requests from the contractor to the supplier to provide solutions for an intricate scope

Scenario:
Tricko is a clothing manufacturer headquartered in Milano, Italy. The company was founded in 2010 by Mario, a famous Italian fashion designer. Over the last few years, the company has seen immense growth and now has a chain of stores across multiple European cities. Following industry trends, the top management of Tricko concluded that the company should establish an online store. As such, they required Lily, an experienced IT engineer, to develop a brief for this potential project. After several meetings and discussions, the top management approved the project brief and assigned Lily as the project manager. For this project, she was instructed to use the guidelines of ISO 21502 on project management.
Lily initiated the project by mobilizing the project team, which included four web developers, two network engineers, and one systems analyst. In order to ensure that every team member is fully aware of their roles and responsibilities, Lily developed team performance domains which would link each project activity with the individuals responsible for undertaking it. She explained to the team members that it is important to clearly understand their roles and responsibilities, considering that the team composition cannot be reassessed or revised once the project plan is authorized to be executed. In addition, Lily defined in a document the project's contribution to the overall objectives of Tricko, which reflected the relevant project requirements and their associated acceptance criteria.
Following that, Lily worked with the project team to discuss project costs. She suggested the team initially establish cost estimates only for the first phase of the project and then for the entire project. In addition, she required cost estimates to be expressed in currency valuations and in labor hours. One of the network engineers suggested that each team member should provide an estimate, and then the team should reach an agreement for a joint estimate. On the other hand, one of the developers suggested establishing an estimate for the costs after the closure of the project, such as advertising and promotion costs. Lily agreed with their suggestions and asked them to provide a total estimate as soon as possible.
Based on the total estimate provided by the project team, Lily developed the project budget and created a list of project activities, divided them into smaller items, and assigned a budget for each item.
Question:
According to scenario 5, Lily defined the project budget by creating a list of project activities, dividing them into smaller items, and assigning a budget for each item. Which method did Lily use to define the project budget?

• A. Budget by activity
• B. Budget by line item
• C. Budget by baseline

Which of the following statements is the definition of project interface?

• A. The control mechanisms applied to measure the overall project performance
• B. The transition period between project phases
• C. The area or zone where different stakeholders meet and interact