Disagreement with model answers :Questions and Model answers by Head Firsrt

   These are questions and the model answers, provided by the exam provider Head First. I have a disagreement on the supplied answers and wondering about your opinions?? I am very sure about some of them... Or !!

I supply the questions, then the model answes and my own answers... what do you think

1- Which of the following is NOT an input to Perform Quality Control?
A  Deliverables 
B  Work Performance Measurements 
C Quality Checklists 
D Validated Changes 

I answered B, as deliverables and checklists are mandatory. And even validated changes are required to measure against. The model answer is D... I think that validated changes are required.

2-Which of the following is NOT an output of Monitor & Control Project Work?
A Project management plan updates 
B Change request status updates 
C Change requests 
D Project document updates

I answered B, as change request status updates should be an output of Perform Integrated Change Control..... I feel very sure about this one.... However, the model answer is A!!

3-There have been several rounds of layoffs at your company. Now your project team is worried about their job security, and you’ve noticed that their performance has decreased significantly because of it. This is predicted by which motivational theory?
A McGregor’s Theory of X and Y 
B Maslow’s Hierarchy of Needs 
C McClellands Achievement Theory 
D Herzberg’s Motivation-Hygiene Theory

I answered D, as it is Herzberg who stated that any problem with the major hygiene factors will affect the performance. However the model answer is B. What do you think?

4- Which of the following contracts has the MOST risk for the buyer? 
A Cost plus fixed fee (CPFF) 
B Time and Materials (T&M) 
C Cost plus award fee (CPAF) 
D Fixed price (FP)

I answered A, as cost plus fixed fee will usually have a more risk on the buyer compared to other types. However, the model answer is B!

5-Your company’s quality assurance department has performed a quality audit on your project. They have found that your team has implemented something inefficiently, and that could lead to defects. What’s the NEXT thing that should happen on your project?
A You work with the quality department to implement a change to the way your team does their work 
B You document recommended corrective actions and submit them to the change control board 
C You add the results of the audit to the lessons learned 
D You meet with the manager of the quality assurance department to figure out the root cause of the problem

I answered D, as I think that it is important to understand the root cause first, before trying a change. However the model answer is B.

  1. model-      direct itto related can be verified from
  2. yourself-   direct itto related can be verified from
  3. doubted-   might or might not you be rt
  4. model-  in fix prices, there is heavy risk to seller, in award price too.
  5. model- Audit Team/ QA team  already given his findings, on basis of that you should move for change

Thanks sspawar for your input!

For Question 4, I would like to add a reference to support my own answer that Cost Plus Fixed Fee has a higher risk on the buyer:   Rita prep. book (page 437)

 


 

 

Yes looking to RITAs chart, you are right,

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but model question's answer is T&M is more risky for Buyer is still seems correct

Why

for a short time put RITA's chart aside.

In CPFF

cost - bear by buyer

at a fix fee seller will not increase his cost because at any cost he will receive the same fee.

In CPAF

here is also the same situation

Now T&M

Here seller is free to increase its time and material both , and he will get profit as much time and matrial will be more there, buyer have no clear commond. hence Buyer is at higher risk in T&M.

More over in above 2 cases CPFF or CPAF , seller also be at risk, if cost increased his B/C ratio will decrease and thus seller is also at risk at the same time buyer would be at profit because at higher cost he will pay less profit percentage.

Thats why earlier I wrote that seller is at higher risk in in Fix Prices.

What you say.

Regardless of Rita chart; I would like to highlight the following:

Risk is uncertinity, could be good or bad. In contracts the buyer's hold the responsibility for paying the funds, while the seller is responsible for acheiving the scope required. So for me the logic says to search for the uncertinity in both areas in each contract type.

       So, in T&M there is an uncertinity in both Scope and Cost, as usually this type of contracts is used whenever the scope is defined, but not assertive and can not be predicted totally from the beginning, like consultancy and services contracts. Here I see uncertinity on both sides, it is balanced. The buyer risk is high compared to fixed price contract, but still he is in control to the cost with the progression of the work. And regardless of the uncertinity in the total amount of units acheived, still the buyer knows from the beginning the unit price, and therefor the seller is not free to go up as he wants.

        In CPFF, the seller is sure that the buyer will have to cover the total cost, which is totally unknown to the buyer from the beginning, and also the buyer will have to pay a fixed fee to the seller, regardless of the performance. In this situation, the seller can really go on and on, without worrying about covering his fees or costs. 

       The exception in Cost Rembursment contracts is the Cost Plus Incentive Fee, where a minimum and maximum fee are agreed from the beginning, to ensure the seller cooperation in terms of performance.

     With all respect to your POV, I still think that CPFF contracts is riskier (has more uncertinity) to the buyer than T&M contracts. 

 

 

I elaborate my view little more:

In cpff If cost increased : seller have no interest, Buyer have also no interest.

But as an uncertainty  cost increased buyer will get higher EV at low er AC.Her CPI will be higher.

Seller's B/C ratio will be low, with increae of cost, his money will be blocked till he has to invest without getting final fee, and contract say profit fee will only be paid at last (PMBOK). or as per agreement.

In Time and material,

If seller wants to show his labor hours more - like he apply less efficient worker and charge of higher side , buyer has no fair control.Buyer is at risk of overspending at getting less EV.Here CPI will decrease..

In material - case seller is getting each penny of its value and earning profit how much he will sell to buyer, here again seller is at profit, buyer will be uncrtain is it worth to give in turn a higher EV?

I find PMBOK -section 12.1.2.3 P324 - T&M Contract, very supportive. - it explain explicitly how buyer could be at risk of More investment and less B/C.