PMI PgMP Exam Dumps & Practice Test Questions
Question No 1:
You are managing the YGH Program, and a contracted vendor has completed all assigned tasks. Both you and the vendor confirm that the work has been fulfilled according to the contract terms.
To formally acknowledge the successful completion of this work, which document should be signed by both parties?
A. Certificate of Completion
B. Proposal Agreement
C. Invoice
D. Contract
Correct Answer: A
Explanation:
In program and project management, especially under procurement practices, formal closure of a vendor engagement is vital once all contracted work has been fulfilled. The document used to confirm that all deliverables were completed as agreed is called a Certificate of Completion. This certificate is a mutually signed acknowledgment by both the buyer and the seller (vendor) that all contractual obligations have been satisfied.
The Certificate of Completion is important because it signals the end of the execution phase and initiates final administrative activities such as contract closure and financial settlement. It ensures there is a formal record that work has been completed as expected and protects both parties in case of future disputes.
Now let’s examine why the other choices are incorrect:
B. Proposal Agreement is typically created at the beginning of the procurement cycle. It outlines how the vendor intends to fulfill the contract but is not used to signify completion.
C. Invoice is submitted by the vendor requesting payment, but it does not confirm that the work was completed satisfactorily. Invoices are often processed only after a Certificate of Completion is signed.
D. Contract refers to the legally binding agreement signed at the start of the vendor relationship. It defines the terms, deliverables, and obligations but is not re-signed upon completion.
Therefore, the Certificate of Completion is the most appropriate document to close out the contract formally, verify all obligations have been met, and begin post-contract processes.
Question No 2:
As a Program Manager, you are instructed to evaluate when certain leased resources, like equipment, are no longer necessary for your program. The goal is to release them to cut costs and enhance resource efficiency.
Which program management process are you being asked to carry out?
A. Contract Administration
B. Resource Management
C. Resource Control
D. Procurement Management
Correct Answer: C
Explanation:
The process of determining when resources are no longer needed and releasing them appropriately is known as Resource Control. This is a critical component of effective program management, particularly in maintaining budget discipline and operational efficiency. Resource control ensures that equipment, personnel, or other assets are used optimally and not held unnecessarily.
When the program manager identifies that a resource, such as leased equipment, is no longer adding value, resource control processes help decide the appropriate time to release or reallocate those resources. This avoids ongoing costs and allows the program to maintain agility.
Let’s distinguish this from similar terms:
A. Contract Administration focuses on managing relationships with vendors or suppliers during the execution of a contract. While it might involve leased equipment, it doesn't primarily deal with evaluating resource utility or optimizing usage.
B. Resource Management is a broader concept that includes planning, allocating, and managing resources throughout the program. However, it doesn’t specifically refer to the monitoring and release of unused resources, which is what Resource Control entails.
D. Procurement Management concerns acquiring resources—negotiating, purchasing, and onboarding suppliers or assets. It deals with bringing resources in, not with evaluating their continued necessity.
Thus, Resource Control is the accurate process for assessing resource necessity and releasing them to maximize efficiency and reduce costs.
Question No 3:
Molly is a Program Manager developing a document that outlines the measurable advantages her program will provide the organization. This document will clarify how those benefits contribute to broader strategic objectives.
Which document is she preparing?
A. Program Charter
B. Program Benefits Realization Plan
C. Program Benefits Statement
D. Program Scope Statement
Correct Answer: B
Explanation:
The Program Benefits Realization Plan is a critical document in program management. It describes in detail how the anticipated benefits of a program will be achieved, measured, and sustained. Molly is working on this plan to link the program’s expected results with the organization’s long-term strategic goals.
This plan provides a roadmap for identifying, tracking, and assessing benefits throughout the program lifecycle and often even after the program concludes. It outlines specific metrics for evaluating whether those benefits are being realized and ensures that all stakeholders have a shared understanding of what success looks like.
Let’s compare this with the other options:
A. Program Charter is created at the start of the program and outlines high-level information such as objectives, scope, and stakeholders. It authorizes the program but doesn’t go into detail about benefits tracking.
C. Program Benefits Statement offers a high-level overview of expected benefits, but lacks the structured, detailed approach of the Benefits Realization Plan. It’s more of a summary than a tactical document.
D. Program Scope Statement defines what is included or excluded in the program, focusing on deliverables and boundaries rather than benefit realization.
Therefore, the Program Benefits Realization Plan is the most appropriate document for documenting, aligning, and ensuring the achievement of organizational benefits.
Question No 4:
You are managing a program, and your leadership team is evaluating a new initiative that involves substantial risk. They are considering hiring an external organization to take over the responsibility of managing that particular risk.
Which risk response strategy should you recommend in this scenario?
A. Transference
B. Mitigation
C. Avoidance
D. Sharing
Correct Answer: A
Explanation:
When dealing with significant risks in a program, selecting the most appropriate risk response strategy is critical to protecting the program’s objectives. Risk response strategies for negative risks (also called threats) typically include avoidance, mitigation, transference, and acceptance. In this scenario, the program manager is considering outsourcing the responsibility for a large risk event to an external party, such as a vendor or insurer. This points directly to the strategy of risk transference.
Transference involves shifting the ownership of the risk to a third party who is better equipped—either through expertise, resources, or contractual agreement—to manage or absorb the consequences of the risk. For instance, purchasing insurance for financial risks or hiring a third-party logistics provider to handle complex transportation risks are classic examples. The goal here is not to eliminate the risk entirely, but rather to reduce the organization's direct exposure by having another party assume responsibility for it.
Mitigation, on the other hand, is about reducing the likelihood or impact of a risk through proactive internal measures, such as safety improvements or system redundancies. While it reduces risk, it does not offload responsibility to another entity, making it unsuitable for this situation.
Avoidance eliminates the risk entirely by removing the cause—such as changing project scope, canceling a risky component, or altering timelines. Again, this doesn’t involve third-party intervention.
Sharing applies when both the risk and its associated gains or losses are distributed among multiple parties—like in joint ventures. It differs from transference in that risk responsibility is still shared, not fully delegated.
Thus, because the organization is looking to assign full responsibility for managing the risk to an external party, transference is the most appropriate response strategy.
Question No 5:
As the program manager, you recently held a bidder's conference to clarify elements of your procurement documents, including the RFP and the Statement of Work (SOW). Several vendors raised questions that prompted necessary clarifications.
Which document must you revise and send back to all vendors to reflect these clarifications?
A. Request for Bid Documents
B. Proposals
C. Statement of Work
D. Program Management Plan
Correct Answer: C
Explanation:
A bidder’s conference is a common step in the procurement process where potential vendors are invited to ask questions and clarify any ambiguities in the procurement documents. These documents include the Request for Proposal (RFP) and the Statement of Work (SOW)—the latter of which defines in detail what work is expected, including deliverables, scope, timelines, and technical requirements.
When clarifications or changes emerge during the bidder’s conference, it is essential that these adjustments are captured in the most relevant document—typically the SOW. Updating the SOW ensures that all vendors have a consistent, accurate, and clear understanding of the work required, which helps them create realistic and competitive proposals. Failing to update the SOW can lead to misunderstandings, misaligned bids, and potentially even legal disputes later on.
Let’s evaluate the incorrect options:
A. Request for Bid Documents: These are usually issued prior to the bidder’s conference and don’t typically get revised unless the entire procurement process is being restructured. They outline the process rather than the specific deliverables.
B. Proposals: These are prepared and submitted by vendors in response to your documents. As the program manager, you don’t revise them. Instead, vendors will update their proposals based on changes you make to the SOW or other documents.
D. Program Management Plan: This internal planning document outlines the strategy for program execution and control. It’s not typically shared with vendors and isn’t used for detailing procurement requirements.
Ultimately, because the Statement of Work provides the most detailed description of what is expected from the vendors, it is the correct document to revise and distribute when clarifications occur.
Question No 6:
While initiating a new program, the program manager collaborates with stakeholders to define foundational elements such as goals, alignment with strategy, and scope.
However, one element listed below is not typically addressed during the initiation phase. Which one is it?
A. Program risk
B. Program benefits
C. Program scope
D. Link to organizational strategy
Correct Answer: A
Explanation:
During the initiation phase of a program, the focus is on establishing the high-level framework that defines why the program exists and what it is intended to accomplish. This phase lays the groundwork for planning and execution by identifying key characteristics like program scope, anticipated benefits, and strategic alignment.
Program scope refers to what the program will include and what it won’t. Defining scope early helps prevent scope creep and ensures all stakeholders are aligned on deliverables.
Program benefits are the positive outcomes that the organization hopes to achieve through the program. These are clearly articulated during initiation to validate that the program delivers real value and supports business needs.
Link to organizational strategy ensures that the program aligns with the company’s long-term goals. This alignment justifies the program’s existence and ensures it supports the larger mission.
However, program risks—while critically important—are not deeply explored during initiation. Instead, risk identification and management begin in earnest during the planning phase, once the scope, objectives, and major components have been defined. At that point, risks are analyzed, documented, and appropriate response strategies are developed.
While high-level risks may be mentioned during initiation, they are not formally assessed or documented until planning. This is because detailed risk identification requires knowledge of timelines, resource availability, dependencies, and other planning data that is not yet available in the initiation phase.
Therefore, program risk is the correct answer—it is not fully defined during initiation but becomes a key focus during planning.
Question No 7:
As a program manager, you're expected to distinguish between the broader framework of managing a project and the actual steps that make up the work of a specific project.
What is the primary distinction between the project management lifecycle and the project lifecycle?
A. The project management lifecycle and the project lifecycle refer to the same sequence of steps.
B. The project management lifecycle follows a standard set of phases like initiating and planning, while the project lifecycle consists of phases tailored to the specific nature of the project work.
C. The project management lifecycle is unique to each project, whereas the project lifecycle remains constant.
D. The project management lifecycle applies universally, while the project lifecycle remains identical for every project.
Correct Answer: B
Explanation:
Understanding the difference between the project management lifecycle and the project lifecycle is crucial for effectively managing and executing projects. Though the two terms are often mistakenly used interchangeably, they serve very different purposes in the realm of project management.
The project management lifecycle refers to the structured sequence of standard management processes that apply to almost any project, regardless of its size, industry, or objectives. These standardized phases include initiating, planning, executing, monitoring and controlling, and closing. These phases provide a reliable management framework to ensure that projects are delivered in an organized, efficient, and controlled manner. They emphasize project oversight, stakeholder engagement, risk management, budgeting, quality control, and closure procedures.
In contrast, the project lifecycle pertains to the actual stages involved in delivering the specific product, service, or result of the project. These stages are typically unique to the nature and scope of the project. For example, in a software development project, the lifecycle may include requirements gathering, design, development, testing, and deployment. In contrast, a construction project may consist of site preparation, design, procurement, and building phases.
What distinguishes the project lifecycle is that it is not standardized; it is determined by the technical work and deliverables required to achieve the project’s objective. This makes it flexible and adaptable based on the domain or type of project.
In summary, the project management lifecycle offers a universal managerial structure applicable across all projects, whereas the project lifecycle is highly project-specific and centers around the unique work that must be performed to meet the project's goals. This distinction is key to aligning management oversight with the actual execution of project tasks.
Question No 8:
Which of the following best describes the primary focus of program governance within a program management context?
A. Ensuring that project managers deliver on time and within budget
B. Monitoring project-level activities for alignment with enterprise architecture
C. Overseeing strategic alignment, risk management, and benefits realization at the program level
D. Managing change requests and configuration items across all projects
Correct Answer: C
Explanation:
Program governance in PgMP is about strategic oversight and ensuring that the program stays aligned with organizational goals. It is more than just managing individual projects; it provides the framework and decision-making structure that guide how the program is planned, executed, and evaluated.
The main components of program governance include:
Strategic alignment: Ensuring all efforts within the program contribute to organizational objectives.
Risk management: Evaluating risks not only at the individual project level but across the program to understand interdependencies and systemic threats.
Benefits realization: Tracking whether the outcomes of the program deliver the value promised in the business case.
Program governance is typically carried out by a governance board or steering committee that includes executive sponsors and key stakeholders. They ensure the program maintains its business case justification and that resources are allocated effectively.
Let’s examine why the other options are incorrect:
A refers to project management activities and is more the responsibility of the project manager, not the program governance board.
B relates more to enterprise architecture and IT governance, not specifically to program-level governance.
D falls under configuration and change management, usually handled at the project or portfolio level, not as a primary responsibility of program governance.
Therefore, C is the correct answer, as it accurately reflects the strategic and oversight responsibilities of program governance in the PgMP framework.
Question No 9:
During the benefits delivery phase of a program, a key stakeholder expresses concern that the realized benefits are falling short of expectations. What should the program manager do first?
A. Escalate the concern to the program steering committee for resolution
B. Reallocate resources to accelerate project deliverables
C. Conduct a benefits performance analysis and revisit the benefits management plan
D. Replace the project manager to improve delivery performance
Correct Answer: C
Explanation:
In PgMP, benefits realization is a critical component. When a stakeholder raises a concern about shortfall in benefits, the program manager must take a systematic approach to evaluate the issue.
The first step is to conduct a benefits performance analysis:
Measure actual benefits against the expected outcomes defined in the benefits register and benefits management plan.
Understand if the shortfall is due to delays in deliverables, incorrect assumptions, or external factors.
After assessing the performance, the program manager can take corrective actions—such as updating the benefits realization strategy, adjusting project deliverables, or even redefining stakeholder expectations if needed.
Here’s why the other choices are incorrect:
A: Escalation should not be the first response unless the issue cannot be resolved at the program level. Program managers are expected to resolve issues proactively.
B: Reallocating resources without understanding the root cause might misalign the program and waste valuable time and effort.
D: Replacing a project manager is a drastic step and typically a last resort—not a first reaction to a perceived benefits shortfall.
So, C is correct because it reflects a disciplined and evidence-based approach, which is expected of a program manager per PgMP standards.
Question No 10:
What is the most appropriate reason for initiating a component project within an ongoing program?
A. To replace a delayed project with a faster alternative
B. To fulfill a new strategic objective that aligns with the program’s goals
C. To use up remaining budget allocation before fiscal year-end
D. To avoid canceling a contract with an external vendor
Correct Answer: B
Explanation:
A program is composed of related projects and activities that are managed in a coordinated manner to deliver benefits not available from managing them individually. Therefore, initiating a new component project must directly support the program's strategic objectives.
The most appropriate reason to launch a new project within a program is when it contributes to delivering the intended benefits or aligns with an updated strategic goal of the organization. For instance, if a new regulatory requirement emerges and aligns with the program's scope, initiating a new project may be essential to remain compliant and continue realizing value.
Why the other options are incorrect:
A: Replacing a delayed project should be considered only after thorough impact analysis and only if it supports program objectives.
C: Budget consumption should never be the driver for project initiation. This undermines the value-driven approach central to PgMP.
D: Avoiding contract penalties may be a concern, but it is not a valid reason to initiate a project unless the outcome aligns with strategic or program benefits.
Therefore, B is correct because it aligns with the principle that program management is benefits-driven, and any new component must contribute meaningfully to the program’s overarching goals.
