LEAN PORTFOLIO MANAGEMENT PRACTICE EXAM QUESTIONS WITH CORRECT DETAILED ANSWERS | ALREADY GRADED A+RECENT VERSION

LEAN PORTFOLIO MANAGEMENT PRACTICE EXAM QUESTIONS WITH CORRECT DETAILED ANSWERS | ALREADY GRADED A+RECENT VERSION 1) What is one essential collaboration the lean portfolio management function provides to realize its responsibilities? Strategy and investment funding Participatory budgeting Developing the lean business case for epics Portfolio sync - answer 2) Which of the following is a lean thinking principle? Identify the value stream for each product Sequence jobs for maximum benefit Establish a decision-making framework Deliver working software frequently - answer identify the value stream for each product 3) Benefits are realized when agile release trains (arts) within a value stream are synchronized to what? A common cadence The same portfolio guardrails A common deployment pipeline The same core epic owners - answer a common cadence 4) What is one disadvantage of project cost accounting? Utilization-based planning Promotes innovation Moves projects to people Cheaper change control - answer utilization-based planning 5) What is an advantage of funding by value stream? It is easier to get budget approvals if a feature takes longer than expected It is easier to calculate resource utilization planning for a pi It is easier to track costs at the project level It is easier to forecast expenses for a pi - answer it is easier to get budget approvals if a feature takes longer than expected 6) What must an enterprise do to organize the portfolio around value? Move from a project focus to a product and services focus Organize agile release trains by feature area Organize agile release trains by platforms and components Move from a product focus to a solution focus - answer move from a project focus to a product and services focus 7) What is an advantage of portfolio management over traditional budgeting processes? Increases ability to budget the deliverables in the portfolio roadmap Provides effective control transparency of budgetary spending Provides effective financial control over investments with less overhead Increases ability to adjust the portfolio's annual budget - answer increases ability to budget the deliverables in the portfolio roadmap 8) Which group of people has the greatest influence on developing strategic themes? Business owners Value management office (vmo) Epic owners Portfolio council - answer business owners 9) What input helps inform an evolving enterprise strategy? Portfolio context Participatory budgeting Portfolio kanban Portfolio canvas - answer portfolio context 10) Which statement is true about strategic themes? They link a portfolio to the enterprise strategy They are derived from objectives and key results (okrs) They connect multiple value streams to the portfolio strategy They provide differentiation of solutions for the portfolio - answer they link a portfolio to the enterprise strategy 11) Objectives and key results (okrs) help support which two core values? Transparency and alignment Relentless improvement and alignment Alignment and respect for people Respect for people and transparency - answer transparency and alignment 12) Which statement is true about identifying opportunities with a swot analysis? It identifies strategic options to create a better future state It helps identify the portfolio's strategic themes It provides input for lean budgeting It helps understand the current state of your value stream, solution, or portfolio - answer it identifies strategic options to create a better future state 13) Why would a single portfolio create multiple portfolio canvases? To explore multiple future state possibilities To analyze multiple epics To account for different funding sources To account for different value streams - answer to explore multiple future state possibilities 14) Which statement is true about a portfolio roadmap? It communicates a broader view to enterprise stakeholders It provides a high-level view of work per quarter It indicates the interaction across value streams It forecasts future work in alignment with pi boundaries - answer it communicates a broader view to enterprise stakeholders 15) What is a relevant aspect to consider when developing a portfolio roadmap? Diminishing clarity of forecasting in the long-term Ensuring alignment with the pi roadmap Integrating art capacity allocation Evaluating key performance indicators (kpis) - answer diminishing clarity of forecasting in the long-term 16) What influences the epics and enablers sequence of the portfolio roadmap? Market rhythms Solution intent Current state portfolio canvas Art pi objectives - answer market rhythms 17) What are epic owners responsible for? Collaborating with agile teams to build a minimum viable product (mvp) Assigning a finance representative to create the lean business case Making a go or no-go decision for an epic Sizing epics based on their experience - answer collaborating with agile teams to build a minimum viable product (mvp) 18) What item is a part of the epic hypothesis statement? Leading indicators Epic cost Solution metrics Solution outcomes - answer leading indicators 19) How does safe ensure that organizations can budget minimum viable product (mvp) costs? By budgeting an estimated investment to validate the epic hypothesis By budgeting the full anticipated cost of the epic By budgeting based on the build-measure-learn cycle By budgeting value streams - answer by budgeting an estimated investment to validate the epic hypothesis 20) Which statement is true about lean-agile contracts? They are written to incentivize both parties The solution scope, costs, and schedule are variable The customer's needs must be reflected in early design details They are typically awarded to the lowest bidder - answer they are written to incentivize both parties 21) What is achieved by establishing lean budget guardrails? To describe budgetary, governance, and spending practices of the portfolio To analyze the inputs, outputs, and benefits of a participatory budgeting forum To identify items that will centralize portfolio strategy decision-making To apply estimates for the implementation of portfolio epics and capacity allocation - answer to describe budgetary, governance, and spending practices of the portfolio 22) Which guardrail ensures the future is not starved by over-investing in today, or that near-term opportunities are not missed by pouring too much money into the future? Investment horizons Capacity allocations Approving significant initiatives Continuous business owner engagement - answer investment horizons 23) Safe lean-agile principles - answer #1 take an economic view #2 apply systems thinking #3 assume variability; preserve options #4 build incrementally fast; integrated learning cycles #5 based milestones on objective evaluation of working systems #6 visualize and limit wip; reduce batch sizes; manage queue lengths #7 apply cadence; synchronize with cross domain planning #8 unlock intrinsic motivation of knowledge workers #9 decentralize decision making #10 organize around value 24) base milestones on objective evaluation of working systems (5) - answer build the system in increments, each of which is an integration point that demonstrates evidence of the solution feasibility; milestones based on objective evaluation of working systems 25) take an economic view (1) - answer base your decisions on economics to achieve better business outcomes - deliver early and often - operate within lean budgets and guardrails - understand economic tradeoffs for solutions - leverage suppliers - sequence jobs (epics) for maximum benefit - empower local decision-making 26) visualize and limit wip (6) - answer achieve a continuous flow of value by: - visualizing and limiting the amount of work in progress (wip) to match the demand of actual capacity - reduce batch sizes of work. Smaller batches go through the system faster and with lower variability - manage queue lengths to decrease delays, reduce waste and improve predictability of outcomes 27) decentralize decision making (9) - answer centralize strategic decision - those that are infrequent, long lasting and have economies of scale. Decentralize all others. 28) project cost accounting problems - answer creates overhead, friction and lowers velocity - requires collaboration of multiple cost centers, assignment of people, budget, and schedule to build a project budget resulting in slow complex budgeting process, moves people to the work, low program output and utilization based planning and execution. 29) value streams - answer realized by arts; represents a series of steps that an organization uses to implement solutions that provide continuous flow of value to a customer. 30) What is a key responsibility of agile portfolio operations? They support art execution They support portfolio execution They establish portfolio flow They establish art flow - answer they support art execution 31) In large hardware and software environments, what coordination would synchronizing cadences enable? Internal and external suppliers Solution roadmaps The systems team of each agile release train (art) Portfolio capabilities - answer internal and external suppliers 32) Companies developing products and releasing them to their customers during periods of expected increased consumer demand is an example of which term? Release on demand Portfolio synchronization Develop on cadence Market rhythm - answer release on demand 33) When is it appropriate to have a centralized lean-agile center of excellence (lace)? When a small- or medium-sized company has a single portfolio When funding comes from the individual unit's budget When cross-business unit collaboration is required When independent business units have their own portfolio - answer when a small- or medium-sized company has a single portfolio 34) What is the focus of the value management office (vmo)? Supporting art execution Aiding the portfolio kanban Fostering lean business cases epic execution - answer supporting art execution 35) What is a responsibility of a value management office (vmo)? Fostering agile contracts and partnerships Creating the architectural runway Centralizing funding for tooling and coaching Directing the lean-agile center of excellence (lace) - answer fostering agile contracts and partnerships 36) Which of the following metrics is most appropriate to measure portfolio performance relative to strategic themes? Objectives and key results (okrs) Return on investment (roi) Art predictability Value stream kpis - answer objectives and key results (okrs) 37) Which statement is true about value stream key performance indicators (kpis)? They measure how a value stream performs against its forecasted business outcomes They are formulated using the objective and key results technique They quantify the predictability of the value stream execution They close the feedback from agile release trains (arts) - answer they measure how a value stream performs against its forecasted business outcomes 38) Which of the following approaches maintains continuous compliance? Build solutions and compliance incrementally Identify compliance requirements as nfrs in the epic hypothesis Identify and estimate compliance enablers and put them in appropriate backlogs Build compliance requirements during pi compliance - answer build solutions and compliance incrementally 39) Safe portfolio level - answer organized around the flow of value; Lean budgets empower decision makers; Kanban system provides portfolio visibility and wip limits; Enterprise architect guides larger technology decisions; Objective metrics support governance and improvement; Value delivery via epics; Strategic themes