LEAN PORTFOLIO MANAG EMENT

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LEAN PORTFOLIO MANAG EMENT

(LPM) QUESTIONS & CORRECT

ANSWERS/ GRADED A+

Question 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

CORRECT ANSWER : Strategy and investment funding

Question 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

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CORRECT ANSWER : Identify the Value Stream for

each product

Question 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

CORRECT ANSWER : A common cadence

Question 4: What is one disadvantage of project cost

accounting?

• Utilization-based planning
• Promotes innovation
• Moves projects to people
• Cheaper change control

CORRECT ANSWER : Utilization-based planning

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Question 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

CORRECT ANSWER : It is easier to get budget

approvals if a Feature takes longer than expected

Question 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

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CORRECT ANSWER : Move from a project focus to a

product and services focus

Question 7: What is an advantage of Lean 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

CORRECT ANSWER : Increases ability to budget the

deliverables in the portfolio roadmap

Question 8: Which group of people has the greatest

influence on developing strategic themes?

• Business Owners
• Value Management Office (VMO)
• Epic Owners