PMP People — Leading Projects Practice Question
A key vendor has notified you that they cannot deliver a critical component on time due to a raw material shortage. This component is on the project's critical path. What should you do first?
⚠ Common exam trap
The trap here is that candidates often jump to escalation (Option C) or aggressive schedule compression (Option B) without first performing the required impact analysis, which is the foundational step in the PMI problem-solving framework.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Evaluate the impact on the project schedule and identify possible alternatives, such as sourcing from another vendor
The first step in any project management issue is to analyze the impact and explore alternatives before taking action. Since the component is on the critical path, any delay directly affects the project finish date, so you must evaluate schedule impact and identify options like sourcing from another vendor to mitigate the risk.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Initiate legal proceedings against the vendor for breach of contract
Why it's wrong here
Initiating legal proceedings is a drastic and premature action when a vendor issue first arises. This approach is typically reserved as a last resort after all other mitigation and negotiation attempts have failed, as it can be time-consuming, costly, and further complicate project delivery by damaging relationships and introducing significant delays. A project manager's initial focus should be on problem-solving and maintaining project progress, not immediate litigation.
- ✗
Crash the schedule by adding resources to other tasks to compensate for the delay
Why it's wrong here
Crashing the schedule by adding resources to *other* tasks is a specific schedule compression technique that should only be considered after a thorough impact analysis of the vendor's delay has been completed. Without understanding the full scope of the delay and its critical path implications, arbitrarily crashing unrelated tasks may not mitigate the core issue and could introduce unnecessary costs, risks, and resource overloads without effectively addressing the vendor's non-delivery. It's not the first, direct response to a vendor issue.
- ✗
Immediately escalate the issue to the project sponsor
Why it's wrong here
Immediately escalating the issue to the project sponsor without first assessing the situation and exploring potential solutions is an abdication of the project manager's primary responsibility. A PM is expected to analyze problems, evaluate impacts, and develop initial mitigation strategies before involving higher management. Escalation is appropriate when the issue exceeds the PM's authority, resources, or ability to resolve, or when it poses a significant threat requiring executive decision-making, but only after initial PM-led analysis.
- ✓
Evaluate the impact on the project schedule and identify possible alternatives, such as sourcing from another vendor
Why this is correct
The project manager's immediate and most responsible action upon notification of a critical vendor delay is to evaluate the precise impact on the project schedule, budget, and scope. This involves understanding the critical path implications and then proactively identifying and assessing viable alternatives, such as engaging a backup vendor or exploring in-house solutions. This systematic approach allows for informed decision-making and demonstrates proactive risk management, aligning with best practices for issue resolution.
Go deeper
Related to this question
Learn chapter
Introduction to the PMP Exam and Project Management Basics
Key term
Project Management Plan
A formal, approved document that defines how a project is executed, monitored, controlled, and closed, serving as the single source of truth for the project team.
Key term
Team Building
Team building is the process of creating a cohesive group of people who work together effectively toward a shared goal.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This PMP practice question is part of Courseiva's free PMI certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the PMP exam.