PMI Updated PMP Exam Questions and Answers by zidan

In this scenario, the project manager is facing a delay from a supplier that could impact a key project milestone. The first step should be to communicate with the vendor to explore possible solutions. This could include asking if the vendor can produce a minimally sufficient quantity of the key component in time to meet the project’s immediate needs12. This approach allows the project to stay on track while also addressing the supplier’s production challenges. It’s important to note that this is a short-term solution and the project manager will need to continue to work with the supplier to resolve the longer-term production issues. References: Project Procurement Management - A Quick Guide, 7 factors to consider when working with project suppliers

In project management, it’s crucial to address performance issues promptly and constructively. Providing feedback and coaching the team member during the iterative design stage can help improve their performance12. This approach aligns with the principles of continuous improvement and learning, which are key aspects of iterative design stages. Coaching involves helping the team member understand their areas of improvement, providing guidance on how to enhance their skills, and offering support as they work towards improving their performance34. This not only helps the individual team member but also contributes to the overall performance and success of the project12.

When a stakeholder is unhappy with the result of a fixed-price project, the project manager should review the missed program deliverables with the project team1. This allows the team to understand what went wrong and how they can improve in future projects. It’s important to note that in a fixed-price project, the risk of incurring additional costs to complete performance of the project falls entirely on the supplier1. Therefore, performing any out of scope work that has not been agreed to, such as through a change order process, adds costs to the project1. References: The special challenges of project management under fixed-price contracts

 The project manager could have avoided higher baseline costs by verifying applicable budget inputs related to the project. This involves establishing a baseline that clearly describes the project scope, cost, and schedule1. If deviations from the baseline become necessary, project managers must follow an agreed-upon protocol for communicating issues, determining next steps, and making changes to the plan1. Cost estimation is critical for success in project management because every project manager must estimate all project costs before creating a project budget2. If the project budget is insufficient, it’s very likely to face cost overrun2. References: 

https://www.projectmanager.com/blog/7-tips-for-preventing-cost-overrun-on-projects

https://training-nyc.com/learn/pmp-certification/baseline