ITM 750 IS Project Management Final Exam Review | Information Technology Management:

ITM750 - Final Exam Review (Chapter 1 to 13) Chapter 1: Introduction to Project Management MULTIPLE CHOICE 1. Which of the following is a difference between projects and operations? a. Projects are undertaken to sustain an organization’s business whereas operations are not. c. Projects are temporary endeavors whereas an organization’s operations are ongoing in nature. b. Operations are undertaken to create unique products, services, or results whereas projects are not. d. Operations have well-defined objectives whereas projects do not need to have a unique purpose. A project is “a temporary endeavor undertaken to create a unique product, service, or result.” Operations, on the other hand, is work done in organizations to sustain the business. 2. Which of the following is true of projects? a. They have an indefinite beginning and end. c. They are developed using regressive elaboration. b. They have a unique purpose. d. They are permanent in nature. One of the attributes of projects is that they has have a unique purpose. Every project should have a well-defined objective. 3. The role of a _____ is to provide direction and funding for a project. a. project sponsor c. support staff member b. project manager d. project team Most projects have many interested parties or stakeholders, but someone must take the primary role of sponsorship. The project sponsor usually provides the direction and funding for the project. 4. Galaxy, a construction company, buys a particular brand of tiles manufactured by Tiles and Floors, an eco-friendly tile manufacturing company. However, Tiles and Floors has declared bankruptcy and closed down. At present, Galaxy is facing a crisis because there are no other manufacturers in the market that supplies eco-friendly tiles. Which of the following constraints is Galaxy currently facing? a. Resources c. Scope b. Time d. Cost Every project is constrained in different ways. For some projects, resources are the main concern. 5. Steve, an engineer in a construction company, is at present working on a home construction project. The home is being built for the Robinson family, the owners of the home. Steve is working with his project team and support staff to ensure the project is completed on time. In such a scenario, the project sponsor is _____. a. Steve c. the project team b. the support staff d. the Robinson family Stakeholders are the people involved in or affected by project activities, and include the project sponsor, project team, support staff, customers, among others. In a home construction project, the project sponsors would be the potential new homeowners. 6. Project _____ management involves defining and managing all the work required to complete the project successfully. a. human resource c. Time b. Scope d. Cost Project management knowledge areas describe the key competencies that project managers must develop. Project scope management involves defining and managing all the work required to complete the project successfully. 7. Project _____ management ensures that the project will satisfy the stated or implied needs for which it was undertaken. a. Cost c. risk b. Time d. quality Project management knowledge areas describe the key competencies that project managers must develop. Project quality management ensures that the project will satisfy the stated or implied needs for which it was undertaken. 8. Which of the following project management knowledge areas primarily involve generating, collecting, disseminating, and storing project information? a. Project cost management c. Project time management b. Project procurement management d. Project communications management Project management knowledge areas describe the key competencies that project managers must develop. Project communications management involves generating, collecting, disseminating, and storing project information. 9. Project procurement management mainly involves: a. making effective use of the people involved with the project. c. generating, collecting, disseminating, and storing project information. b. buying goods and services for a project from outside the performing organization. d. identifying and analyzing stakeholder needs while managing and controlling their engagement. Project management knowledge areas describe the key competencies that project managers must develop. Project procurement management involves acquiring or procuring goods and services for a project from outside the performing organization. 10. Which of the following project management knowledge areas is an overarching function that affects and is affected by the different knowledge areas? a. Project cost management c. Project integration management b. Project stakeholder management d. Project communications management Project management knowledge areas describe the key competencies that project managers must develop. Project integration management is an overarching function that affects and is affected by all of the other knowledge areas. 11. An important tool for project scope management is _____. a. fast tracking c. a Gantt chart b. crashing d. a work breakdown structure Scope management uses scope statements, work breakdown structures, statements of work, requirements analyses, scope management plans, scope verification techniques, and scope change controls. 12. Which of the following tools are most likely to be used in project time management? a. Payback analysis c. Gantt charts b. Impact matrices d. Fishbone diagrams Time management uses Gantt charts, project network diagrams, critical path analysis, crashing, fast tracking, and schedule performance measurements. 13. Fast tracking is an example of a tool used in _____ management. a. time c. communication b. quality d. risk Time management tools include Gantt charts, project network diagrams, critical path analysis, crashing, fast tracking, and schedule performance measurements. 14. In which of the following areas of management is payback analysis most likely to be used? a. Human resource c. Cost b. Communication d. Quality Tools used in cost management include payback analysis, earned value management, project portfolio management, and cost estimates among others. 15. A _____ is a tool used in quality management. a. probability matrice c. request for proposal b. checklist d. critical path analysis Quality management uses include quality metrics, checklists, quality control charts, Pareto diagrams, and fishbone diagrams among others. 16. Team building exercises and motivation techniques are tools used in _____ management. a. procurement c. human resource b. scope d. cost Motivation techniques, empathic listening, resource histograms, and team building exercises are tools used in human resource management. 17. Which of the following tools can best help in efficient communication management? a. Kick-off meetings c. Requests for quotes b. Impact matrices d. Fast tracking Kick-off meetings are an important tool in project communication management. Other tools in project communication management are communications management plans, conflict management, communications media selection, and progress reports. 18. A _____ is a tool used in risk management. a. work breakdown structure c. critical path analysis b. project organizational chart d. probability matrice Risk management plans, risk registers, probability/impact matrices, and risk rankings are different tools used in risk management. 19. Which of the following statements is true of project management? a. It is a simple discipline with a limited scope. c. It does not guarantee successes for all projects. b. It has specific tools which work universally across all kinds of projects. d. Its framework consists solely of project management knowledge areas. Despite its advantages, project management is a very broad, often complex discipline. What works for one project may not work for another. Thus it is essential for project managers to continue to develop their knowledge and skills in managing projects. 20. Which of the following is true of program managers? a. They report to project managers who represent the next level in the hierarchy. c. They provide leadership and direction for project managers heading the projects within a program. b. They recognize that managing a program is simpler than managing a project. d. They are responsible solely for the delivery of project results. ANS: C A program manager provides leadership and direction for the project managers heading the projects within a program. Program managers also coordinate the efforts of project teams, functional groups, suppliers, and operations staff supporting the projects to ensure that products and processes are implemented to maximize benefits. 21. Which of the following is a difference between project management and portfolio management? a. Project management involves making wise investment decisions whereas portfolio management does not. c. Portfolio management asks questions like, “Are we carrying out projects efficiently?” whereas project management asks questions such as “Are we investing in the right areas?” b. Portfolio management is an easy task whereas project management is a more difficult task. d. Project management addresses specific, short-term goals whereas portfolio management focuses on long-term goals. Individual projects often address tactical goals, whereas portfolio management addresses strategic goals. Tactical goals are generally more specific and short-term than strategic goals. 22. A difference between strategic and tactical goals is that: a. strategic goals are more specific than tactical goals. c. tactical goals are more important for a project than strategic goals. b. tactical goals encompass broader dimensions than strategic goals. d. strategic goals are long-term in nature whereas tactical goals are short-term. Tactical goals are generally more specific and short-term than strategic goals, which emphasize long-term goals for an organization. 23. Which of the following questions reflect the strategic goals of project portfolio management? a. Are we carrying out projects well? c. Are we investing in the right areas? b. Are projects on time and on budget? d. Do stakeholders know what they should be doing? The strategic goals of project portfolio management raise questions such as “Are we working on the right projects?”, “Are we investing in the right areas?”, and “Do we have the right resources to be competitive?” 24. Martha works as a project manager at a bank. Due to certain changes in external factors, Martha needs to make a few alterations in the tactical goals of her project. In such a scenario, which of the following will best help Martha cope with the change? a. Negotiation b. Project environment knowledge c. Motivation d. Soft skills The project environment differs from organization to organization and project to project, but some skills will help in almost all project environments. These skills include understanding change and understanding how organizations work within their social, political, and physical environments. Project managers must be comfortable leading and handling change, because most projects introduce changes in organizations and involve changes within the projects themselves. 25. Joe is a project manager in an IT company and has over the years, gained substantial knowledge in his area of work. However, while managing his team, he often loses his temper. In addition, he fails to be an active listener when his team members approach him with work related challenges. In which of the following areas does Joe need to develop his skills in? a. Application area knowledge b. Project environment knowledge c. Standards and regulations d. Human relations skills Achieving high performance on projects requires soft skills, otherwise called human relations skills. Project managers need good soft skills to understand, navigate, and meet stakeholders’ needs and expectations. They need to be able to listen actively to what others are saying, help develop new approaches for solving problems, and then persuade others to work toward achieving project goals. 26. Which of the following best defines the role of leaders? a. They focus on short-term objectives. c. They work solely toward day-to-day details of meeting specific tasks. b. They work on achieving primarily tactical goals. d. They inspire people to reach goals. Generally, a leader focuses on long-term goals and big-picture objectives while inspiring people to reach those goals. 27. A Gantt chart is a standard format for displaying project schedule information by listing project activities and their corresponding start and finish dates in a ____ format. a. calendar c. bar graph b. line graph d. pie chart A Gantt chart was developed by Henry Gantt for scheduling work in factories. A Gantt chart is a standard format for displaying project schedule information by listing project activities and their corresponding start and finish dates in calendar form. 28. A critical path: a. is the shortest path through a network diagram. c. determines the earliest completion date of a project. b. represents schedule information in calendar form. d. is a quality management tool to ensure a project meets the minimum quality standards. The critical path is the longest path through a network diagram that determines the earliest completion of a project. It shows which tasks affect the target completion date of a project, and it can change as work proceeds and more information becomes available. 29. A _____ is an organizational group responsible for coordinating the project management function throughout an organization. a. Project Management Office c. Project Management Center b. Project Management Professional d. Portfolio Group In the 1990s, many companies began creating Project Management Offices to help them handle the increasing number and complexity of projects. A Project Management Office (PMO) is an organizational group responsible for coordinating the project management function throughout an organization. 30. Which of the following provides certification as a Project Management Professional? a. PMS c. PMI b. PMC d. PMP PMI or the Project Management Institute provides certification as a Project Management Professional (PMP). A Project Management Professional (PMP) is someone who has documented sufficient project experience and education, agreed to follow the PMI code of professional conduct, and demonstrated knowledge of project management by passing a comprehensive examination. 31. Which of the following refers to a set of principles that guides decision making based on personal values of what is considered right and wrong? a. Ethics c. Laws b. Civics d. Politics Ethics is a set of principles that guides decision making based on personal values of what is considered right and wrong. Making ethical decisions is an important part of project managers’ personal and professional lives because it generates trust and respect with other people. 32. Which of the following is true of low-end tools of the project management software? a. They are designed for especially large projects with multiple users. c. They provide basic project management features. b. Their main advantage is that they have unlimited functionality. d. They are referred to as an enterprise project management software. In a project management software, low-end tools provide basic project management features and are often recommended for small projects and single users. 33. Which of the following types of tools is usually recommended for small projects and single users? a. Low-end c. High-end b. Midrange d. Upper range Low-end tools provide basic project management features and generally cost less than $200 per user They are often recommended for small projects and single users. 34. Enterprise project management softwares are also known as _____ tools of project management software. a. baseline c. low-end b. midrange d. high-end Project management software tools can be divided into three general categories based on functionality and price. One of these tools are high-end tools which are sometimes referred to as enterprise project management software. 35. Which of the following is a difference between low-end and midrange tools of the project management software? a. Low-end tools are designed to handle primarily multiple users whereas midrange tools are created to handle single users. c. Midrange tools provide basic project management features whereas low-end tools offer enterprise and portfolio management functions. b. Low-end tools provide robust capabilities to handle dispersed workgroups whereas midrange tools do not. d. Midrange tools are designed to handle larger projects than low-end tools. In a project management software, midrange tools is a step up from low-end tools. They are designed to handle larger projects, multiple users, and multiple projects. Chapter 2: The Project Management and Information Technology Context MULTIPLE CHOICE 1. Projects must operate in a broad organizational environment, and project managers need to consider projects within the greater organizational context. _____ describes this holistic view of carrying out projects within the context of the organization. a. Linear analysis c. Reductionism b. Systems thinking d. The silo approach To handle complex situations effectively, project managers need to take a holistic view of a project and understand how it relates to the larger organization. Systems thinking describes this holistic view of carrying out projects within the context of the organization. 2. _____ refers to a problem-solving approach that requires defining the scope of a system, dividing it into its components, and then identifying and evaluating its problems, opportunities, constraints, and needs. a. Linear programming c. Principal component analysis b. Independent component analysis d. Systems analysis Systems analysis is a problem-solving approach that requires defining the scope of the system, dividing it into components, and then identifying and evaluating its problems, opportunities, constraints, and needs. 3. The symbolic perspective of an organization: a. focuses on different groups’ roles and responsibilities to meet the goals and policies set by top management. c. focuses on providing harmony between the needs of the organization and the needs of people. b. views the organization as coalitions composed of varied individuals and interest groups. d. focuses on the meanings of the culture, language, traditions, and image of the organization. The symbolic frame focuses on symbols and meanings. In this frame, the most important aspect of any event in an organization is not what actually happened, but what it means. 4. The _____ perspective of an organization focuses on different groups’ roles and responsibilities in order to meet the goals and policies set by top management. a. structural frame c. political frame b. human resources frame d. symbolic frame The structural frame deals with how the organization is structured (usually depicted in an organizational chart) and focuses on different groups’ roles and responsibilities to meet the goals and policies set by top management. This frame is very rational and focuses on coordination and control. 5. The _____ frame of an organization focuses on providing harmony between the needs of the organization and the needs of people. a. structural c. political b. human resources d. symbolic The human resources (HR) frame focuses on producing harmony between the needs of the organization and the needs of people. It recognizes that mismatches can occur between the needs of the organization and those of individuals and groups, and works to resolve any potential problems. 6. The _____ perspective on organizations assumes that organizations are coalitions composed of varied individuals and interest groups. a. political frame c. structural frame b. symbolic frame d. human resources frame The political frame addresses organizational and personal politics. Politics in organizations take the form of competition among groups or individuals for power and leadership. The political frame assumes that organizations are coalitions composed of varied individuals and interest groups. 7. Grey’s Infotech sells customized hardware and software solutions for businesses. The salespeople for Grey’s have a strict dress code when meeting clients. They are required to wear dark business suits, in order to convey the company’s dedication to quality. The meaning conveyed to the clients’ through the salespeople’s clothing is part of the _____ frame of the organization. a. political c. structural b. symbolic d. human resources The symbolic frame focuses on symbols and meanings. In this frame, the most important aspect of any event in an organization is not what actually happened, but what it means. The symbolic frame also relates to the company’s culture. How do people dress? How many hours do they work? How do they run meetings? 8. In Rizzati Corp, vice presidents in departments such as engineering, manufacturing, IT, and human resources report directly to the chief executive officer and undertake their tasks independently of each other. The staffs of these departments have specialized skills in their respective disciplines. Rizatti Corp can be said to have a _____ organizational structure. a. project c. matrix b. symbolic d. functional A functional organizational structure is the hierarchy most people think of when picturing an organizational chart. Functional managers or vice presidents in specialties such as engineering, manufacturing, IT, and human resources report to the chief executive officer (CEO). 9. In a _____organizational structure, program managers, rather than functional managers or vice presidents, report to the CEO. Their staffs have a variety of skills needed to complete all required tasks within their programs. a. project c. matrix b. symbolic d. functional A project organizational structure also is hierarchical, but instead of functional managers or vice presidents reporting to the CEO, program managers report to the CEO. 10. In a _____ organizational structure, personnel often report to both a functional manager and one or more project managers. a. project c. matrix b. symbolic d. functional A matrix organizational structure represents the middle ground between functional and project structures. Personnel often report both to a functional manager and one or more project managers. 11. Project managers have the most authority in a pure _____ organizational structure. a. functional c. matrix b. project d. circular Project managers have the most authority in a pure project organizational structure and the least amount of authority in a pure functional organizational structure. 12. Project managers have the least amount of authority in a pure _____ organizational structure. a. functional c. matrix b. project d. circular 13. Which of the following is true of a matrix organizational structure? a. In a matrix organizational structure, employees are organized into departments according to their skills, and there is little interaction between employees from different departments. c. In a strong matrix organizational structure, the project manager controls the project budget and has moderate to high authority. b. Project managers in matrix organizations have staff from only a single functional area working on their projects. d. A matrix organizational structure is hierarchical, but instead of functional managers reporting to the CEO, program managers report to the CEO. In a strong matrix organizational structure, the project manager controls the project budget and has moderate to high authority. 14. _____ refers to a set of shared assumptions, values, and behaviors that characterize the functioning of an organization. a. Chain of command c. Organizational culture b. Line of control d. Organizational structure Organizational culture is a set of shared assumptions, values, and behaviors that characterize the functioning of an organization. It often includes elements of the four frames. 15. The _____ characteristic of organizational culture describes the degree to which management’s decisions take into account the effect of outcomes on people within the organization. a. member identity c. people focus b. group emphasis d. unit integration The people focus characteristic of organizational culture describes the degree to which management’s decisions take into account the effect of outcomes on people within the organization. Good project managers often balance the needs of individuals and the organization. 16. _____ refers to the degree to employees identify with the organization as a whole, rather than with their types of job or profession. a. Member identity c. Group emphasis b. People focus d. Unit integration 17. _____refers to the degree to which departments within an organization are encouraged to coordinate with each other. a. Member identity c. Group emphasis b. People focus d. Unit integration Unit integration refers to the degree to which units or departments within an organization are encouraged to coordinate with each other. 18. In organizational culture, people focus refers to _____. a. the degree to which the organization monitors and responds to changes in the external environment c. the degree to which management ’s decisions take into account the effect of outcomes on employees within the organization b. the degree to which rules, policies, and direct supervision are used to oversee and control employee behavior d. the degree to which employees are encouraged to be aggressive, innovative, and risk seeking 19. In organizational culture, means-end orientation refers to _____. a. the degree to which the organization monitors and responds to changes in the external environment c. the degree to which management focuses on outcomes rather than on techniques and processes used to achieve results b. the degree to which rules, policies, and direct supervision are used to oversee and control employee behavior d. the degree to which employees are encouraged to be aggressive, innovative, and risk seeking 20. _____ refers to the degree to which the organization monitors and responds to changes in the external environment. a. Means-ends orientation c. Conflict tolerance b. Open-systems focus d. Risk tolerance 21. In organizational culture, control refers to _____. a. the degree to which the organization monitors and responds to changes in the external environment c. the degree to which management focuses on outcomes rather than on techniques and processes used to achieve results b. the degree to which rules, policies, and direct supervision are used to oversee employee behavior d. the degree to which employees are encouraged to be aggressive, innovative, and risk seeking 22. _____ are an example of external stakeholders for an organization. a. Top managers c. Employees b. Functional managers d. Competitors External project stakeholders include the project ’s customers (if they are external to the organization), competitors, suppliers, and other external groups potentially involved in the project or affected by it, such as government officials or concerned citizens. 23. A(n) _____ refers to a product or service, such as a technical report, a training session, a piece of hardware, or a segment of software code, produced or provided as part of a project. a. deliverable c. system b. input d. resource 24. Which of the following is true of the project life cycle? a. In the early phases of a project life cycle, resource needs are usually lowest. c. It is much more expensive to make major changes to a project during the earlier phases than the latter phases. b. In the later phases of the project life cycle, the level of uncertainty is usually the highest. d. More resources are usually needed during the initial phases of a project than during the middle or final phases. 25. The first two traditional project phases (concept and development) focus on planning, and are often referred to as _____. a. project feasibility c. project implementation b. project acquisition d. project close-out 26. A preliminary or rough cost estimate is developed in the _____ phase of the project life cycle, and an overview of the work involved is created. a. implementation c. concept b. acquisition d. close-out In the concept phase of a project, managers usually develop some type of business case, which describes the need for the project and basic underlying concepts. A preliminary or rough cost estimate is developed in this first phase, and an overview of the required work is created. 27. In the development phase of the project life cycle: a. the project team creates more detailed project plans, a more accurate cost estimate, and a more thorough WBS. c. managers develop a business case, which describes the need for the project and basic underlying concepts. b. the project team delivers the required work, and provides performance reports to stakeholders. d. managers prepare a preliminary or rough cost estimate for the required work. 28. In the _____ phase, the project team creates a definitive or very accurate cost estimate, delivers the required work, and provides performance reports to stakeholders. a. development c. concept b. implementation d. close-out The third phase of the traditional project life cycle is implementation. In this phase, the project team creates a definitive or very accurate cost estimate, delivers the required work, and provides performance reports to stakeholders. 29. The _____ model of a systems development life cycle assumes that requirements will remain stable after they are defined. a. spiral life cycle c. incremental build life cycle b. waterfall life cycle d. RAD life cycle The waterfall life cycle model has well-defined, linear stages of systems analysis, design, construction, testing, and support. This life cycle model assumes that requirements will remain stable after they are defined. 30. The _____ model of a systems development life cycle provides for progressive development of operational software, with each release providing added capabilities. a. spiral life cycle c. waterfall life cycle b. RAD life cycle d. incremental build life cycle 31. In the _____ model, developers use a model to generate functional requirements and physical design specifications simultaneously. a. RAD life cycle c. spiral life cycle b. prototyping life cycle d. incremental build life cycle The prototyping life cycle model is used for developing software prototypes to clarify user requirements for operational software. It requires heavy user involvement, and developers use a model to generate functional requirements and physical design specifications simultaneously. This approach is often used in systems that involve a great deal of user interface design, such as website projects. 32. The _____ model uses an approach in which developers work with an evolving prototype, using tools such as computer-aided software engineering, joint requirements planning, and joint application design to facilitate rapid prototyping and code generation. a. incremental build life cycle c. RAD life cycle b. waterfall life cycle d. spiral life cycle 33. Which of the following best describes a kill point in the project life cycle? a. The period of time given to managers during the feasibility phases to decide on the cost, quality, and time constraints for the project c. The point of time in the project lifecycle after which it is impossible to terminate a running project b. A review of the status of a project at each phase of development to determine if it should be continued, redirected, or terminated d. The final submission of the project deliverables after which the project is terminated A management review should occur after each phase to evaluate progress, potential success, and continued compatibility with organizational goals. These management reviews, called phase exits or kill points, are very important for keeping projects on track and determining if they should be continued, redirected, or terminated. 34. Which of the following is a disadvantage of virtual teams as compared to traditional teams? a. Increased costs for office space and support c. Limited flexibility in team working hours b. Reduced opportunities for informal transfer of information d. Reduced dependence on technology and processes for accomplishing work Virtual teams reduce the ability of team members to network and transfer information informally. 35. Which of the following best describes outsourcing? a. An organization selling its products in a market outside its domestic market c. An organization setting up manufacturing and retailing facilities in a new country b. An organization’s acquisition of goods and services from an outside source d. An organization’s use of virtual teams with employees located in different countries Outsourcing is an organization’s acquisition of goods and services from an outside source. The term offshoring is sometimes used to describe outsourcing from another country. 36. Which of the following is true of virtual teams? a. It is easier for a virtual team to build relationships and trust. c. It is important to select team members carefully. b. Negative incentives do not impact virtual team members. d. As they never meet, virtual teams do not have conflicts. It is important to select team members carefully and to form a team in which all roles are covered. All virtual team members must also understand their roles on the team. 37. Which of the following is true of the agile approach to software development? a. In the agile method, requirements and solutions evolve through collaboration. c. Agile is a predictive model of software development. b. An agile approach sets scope goals, but leaves time and cost goals flexible. d. In the agile approach, requirements must be clearly expressed early in the life cycle. Agile means using a method based on iterative and incremental development, in which requirements and solutions evolve through collaboration.   Chapter 3: The Project Management Process Groups: A Case Study MULTIPLE CHOICE 1. _____ processes include defining and authorizing a project or project phase. a. Initiating c. Executing b. Planning d. Monitoring and controlling Initiating processes take place during each phase of a project. 2. _____ processes include devising and maintaining a workable scheme to ensure that the project addresses the organization’s needs. a. Initiating c. Executing b. Planning d. Monitoring and controlling Planning processes include devising and maintaining a workable scheme to ensure that the project addresses the organization’s needs. Projects include several plans, such as the scope management plan, schedule management plan, cost management plan, and procurement management plan. 3. Examples of _____ processes include acquiring and developing the project team, performing quality assurance, distributing information, managing stakeholder expectations, and conducting procurements. a. monitoring and controlling c. planning b. executing d. initiating Executing processes include coordinating people and other resources to carry out the various plans and create the products, services, or results of the project or phase. Examples of executing processes include acquiring and developing the project team, performing quality assurance, distributing information, managing stakeholder expectations, and conducting procurements. 4. A common _____ process is reporting performance, where project stakeholders can identify any necessary changes that may be required to keep the project on track. a. executing c. monitoring and controlling b. closing d. planning Monitoring and controlling processes include regularly measuring and monitoring progress to ensure that the project team meets the project objectives.A common monitoring and controlling process is reporting performance, where project stakeholders can identify any necessary changes that may be required to keep the project on track. 5. Administrative activities, such as archiving project files, closing out contracts, documenting lessons learned, and receiving formal acceptance of the delivered work as part of the phase or project, are often involved in _____ processes. a. monitoring and controlling c. initiating b. executing d. closing Closing processes include formalizing acceptance of the project or project phase and ending it efficiently. Administrative activities are often involved in this process group, such as archiving project files, closing out contracts, documenting lessons learned, and receiving formal acceptance of the delivered work as part of the phase or project. 6. During _____ processes for a new project, the organization recognizes that a new project exists, and completes a project charter as part of this recognition. a. initiating c. opening b. planning d. controlling While initiating processes for a new project, the organization recognizes that a new project exists, and completes a project charter as part of this recognition. 7. The project integration management knowledge area maps to the _____ process group through the activities of developing project charters. a. initiating c. executing b. planning d. monitoring and controlling 8. The project scope management knowledge area maps to the _____ process group through the activities of scope validation and scope control. a. initiating c. executing b. planning d. monitoring and controlling 9. The project time management knowledge area maps to the _____ process group through the activity of schedule control. a. initiating c. executing b. planning d. monitoring and controlling 10. Developing a _____ is a planning process that occurs in the Project Integration Management knowledge area. a. schedule management plan c. WBS b. project management plan d. quality management 11. _____ is a planning process that is within the Project Scope Management knowledge area. a. Schedule development c. Creation of a WBS b. Developing a project management plan d. Quality planning 12. The project cost management knowledge area maps to the _____ process group through the activities of estimating costs and budget determination. a. initiating c. executing b. planning d. monitoring and controlling 13. The project stakeholder management knowledge area maps to the _____ process group by identifying stakeholders. a. initiating c. executing b. planning d. monitoring and controlling 14. _____ is an iterative software development process that focuses on team productivity and delivers software best practices to all team members. a. Agile Unified Process c. Rational Unified Process b. Dynamic Systems Development Method d. Six Sigma 15. Which of the following is a pre-initiation task? a. Drawing up a work breakdown structure c. Drafting the project charter b. Developing a business case for a project d. Identifying stakeholders It is good practice to lay the groundwork for a project before it officially starts. Senior managers often perform several tasks, sometimes called pre-initiation tasks which include the development of a business case for a project. 16. One of the main outputs of the initiation process is _____. a. creating the work breakdown structure c. developing the project charter b. selecting the project manager d. identifying the project sponsor The main outputs of the initiation process are a project charter and a stakeholder register. 17. The project management plan is the output of the planning process of project _____. a. integration management c. scope management b. quality management d. procurement management The project management plan, which is part of the planning process, is the output of project integration management. 18. Which of the following is a planning process associated with project scope management? a. Collecting requirements c. Planning schedule management b. Performing qualitative risk analysis d. Estimating costs Process improvement plans are an output of project quality management. 19. The _____ provides a basis for creating the project schedule and performing earned value management for measuring and forecasting project performance. a. scope statement c. work breakdown structure b. cost management plan d. project charter The WBS is a very important tool in project management because it provides the basis for deciding how to do the work. The WBS also provides a basis for creating the project schedule and performing earned value management for measuring and forecasting project performance. 20. _____ are an output of the executing process of project integration management. a. Deliverables c. Resource calendars b. Issue logs d. Enterprise environmental factor updates 21. Enterprise environmental factors are an output of the executing process of _____. a. project integration management c. project human resource management b. project quality management d. project procurement management 22. The _____ process involves gaining stakeholder and customer acceptance of the final products and services and bringing the project, or project phase, to an orderly end. a. executing c. planning b. closing d. monitoring The closing process involves gaining stakeholder and customer acceptance of the final products and services and then bringing the project or project phase to an orderly end. It includes verifying that all of the deliverables are complete, and it often includes a final project report and presentation. 23. Organizational process assets update is the output of the closing process of _____. a. project integration management c. project procurement management b. project quality management d. project time management 24. Which of the following is true about the agile method? a. It is often used when a project team can express the scope early in the product life cycle. c. It uses several iterations or deliveries of software instead of waiting until the end of the project to provide a product. b. It is used when a project team wants to provide a potentially shippable product earlier rather than later. d. It is used when project teams want to use the predicative approach to a project. An agile approach is often used for projects in which the business team cannot clearly express the scope early in the product life cycle, but the team does want to provide a potentially shippable product earlier rather than later. An agile project team typically uses several iterations or deliveries of software instead of waiting until the end of the project to provide one product. 25. Which of the following project parameters would be compatible with the use of the agile approach? a. Projects with inexperienced and dispersed teams c. Projects with clear-up front requirements b. Projects that have a fairly rigid completion date d. Projects that have more flexible scheduling Projects with heavy constraints, inexperienced and dispersed teams, large risks, generally clear up-front requirements, and a fairly rigid completion date are best done using a predictive approach. In contrast, projects with less rigid constraints, experienced and preferably co-located teams, smaller risks, unclear requirements, and more flexible scheduling would be more compatible with an agile approach. 26. Which of the following activities is a part of the planning process of the Scrum? a. Determining how many sprints will compose each release c. Completing tasks each day during sprints b. Demonstrating the product during a sprint review meeting d. Creating sprint backlog 27. The improvement of the product and process in the Scrum method is discussed at the _____. a. sprint reflection meeting c. kick-off meeting b. sprint review meeting d. daily Scrum meeting 28. A _____ is usually not necessary to the Scrum method. a. team contract c. Gantt chart b. velocity estimate d. product backlog Because Scrum implies that team members work as a self-directed group, coached by the ScrumMaster, a team contract should not be necessary. 29. A _____ is an important Scrum artifact used to graphically display progress on each sprint during the monitoring and controlling process. a. WBS c. burndown chart b. sprint backlog d. product backlog Chapter 4: Project Integration Management MULTIPLE CHOICE 1. _____ involves working with stakeholders to create the document that formally authorizes a project. a. Developing the project charter b. Developing the preliminary project scope statement c. Developing the project management plan d. Performing integrated change control 2. _____ involves coordinating all planning efforts to create a consistent, coherent document. a. Developing the project charter b. Developing the preliminary project scope statement c. Developing the project management plan d. Developing the organizational process assets updates 3. The outputs of the _____ process include change request status updates, project management plan updates, and project document updates. a. initiating b. planning c. executing d. monitoring and controlling 4. The first step in the planning process is _____. a. to tie the information technology strategic plan to the organization’s overall strategic plan c. to start defining potential IT projects in terms of their scope, benefits, and constraints b. to perform a business area analysis d. to choose which projects to do and assigning resources to work on them 5. The _____ stage of information technology planning outlines business processes that are central to achieving strategic goals and helps determine which ones could most benefit from information technology. a. project planning b. business area analysis c. resource allocation d. information technology strategy planning The business area analysis outlines business processes that are central to achieving strategic goals and helps determine which processes could most benefit from IT. 6. In the _____ stage of selecting information technology projects, organizations define project scope, benefits, and constraints. a. project planning b. business area analysis c. resource allocation d. information technology strategy planning 7. In the _____ stage of selecting information technology projects, organizations select information technology projects. a. project planning b. business area analysis c. resource allocation d. information technology strategy planning 8. _____ are new requirements imposed by management, government, or some external influence. a. Opportunities c. Problems b. Charters d. Directives 9. _____ analysis is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time. a. Cost of capital c. Cash flow b. Net present value d. Payback Net present value (NPV) analysis is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time. 10. Benefits minus costs is known as the _____. a. cost of capital c. discount factor b. cash flow d. opportunity cost of capital Cash flow is the benefits minus costs or income minus expenses. 11. The first step in determining the NPV is to _____. a. determine the estimated costs and benefits for the life of the project and the products it produces b. determine the discount rate c. calculate the net present value d. determine the cash flow 12. Which of the following is true of return on investment or ROI? a. It is always a percentage. c. It is the result of adding the project costs to the profits. b. It is always a positive number. d. The lower it is, the better. 13. The _____ is the minimum acceptable rate of return on an investment. a. capitalization rate c. discount rate b. internal rate of return d. required rate of return 14. Payback occurs when: a. the net cumulative benefits minus costs equal one. c. the net costs are lower than the cumulative benefits. b. the net cumulative benefits equal the net cumulative costs. d. the cumulative benefits are double the cumulative costs. Payback occurs when the net cumulative benefits equal the net cumulative costs, or when the net cumulative benefits minus costs equal zero. 15. A project’s internal rate of return can be determined by finding what discount rate results in an NPV of _____ for the project. a. zero c. a hundred percent b. one d. fifty percent 16. In a weighted scoring model, the sum of the weights of all the criteria must total _____ percent. a. 10 c. 100 b. 50 d. 150 In a weighted scoring model, a weight is assigned to each criterion based on its importance to the project. Determining weights requires consultation and final agreement. You can assign weights based on percentages; the weights of the criteria must total 100 percent. 17. A _____ is a document that recognizes the existence of a project and provides direction on the project’s objectives and management. a. stakeholder register c. directive b. risk register d. project charter 18. The business case includes information on _____. a. the business need for the project c. the project objective, high-level requirements, and time and cost goals b. relevant government or industry standards d. policies, procedures, guidelines, and systems that influence a project’s success Many projects require a business case to justify their investment. Information in the business case, such as the project objective, high-level requirements, and time and cost goals, is included in the project charter. 19. Which of the following are organizational process assets? a. Management systems c. Government standards b. The organization’s infrastructure d. Marketplace conditions Organizational process assets include formal and informal plans, policies, procedures, guidelines, information systems, financial systems, management systems, lessons learned, and historical information that can influence a project’s success. 20. A _____ is a document used to coordinate all project planning documents and help guide a project’s execution and control. a. project management plan c. scope statement b. statement of work d. business case 21. The _____ section of the project plan should describe the major project functions and activities and identify those individuals who are in charge of them. a. organizational charts b. other organizational or process-related information c. project responsibilities d. management objectives 22. The _____ section of the project management plan describes how to monitor project progress and handle changes. a. management objectives c. risk management b. project controls d. technical processes The project controls section describes how to monitor project progress and handle changes. Will there be monthly status reviews and quarterly progress reviews? Will there be specific forms or charts to monitor progress? 23. The project schedule information section of the project management plan includes ____. a. a detailed budget c. an elaborate timetable b. a list of key deliverables d. a directory of staff involved in the project The project schedule information section should include a detailed schedule that provides more detailed information about the project schedule. It should reference the schedule management plan and discuss dependencies among project activities that could affect the project schedule. 24. The _____ section of the project management plan describes specific methodologies a project might use and explains how to document information. a. management objectives c. risk management b. project controls d. technical processes 25. The majority of time on a project is usually spent on _____, as is most of the project’s budget. a. execution c. closing b. planning d. monitoring and controlling 26. _____ should result in improvements in project performance. a. Corrective actions c. Preventive actions b. Defect repairs d. Product acceptance plans 27. Which of the following is a proactive process undertaken to reduce the probability of negative consequences associated with project risks? a. Performance reports c. Defect repairs b. Preventive actions d. Corrective actions Preventive actions reduce the probability of negative consequences associated with project risks. The problem has not yet occurred. Measures are taken so that problems do not occur. 28. An IT company revises its process parameters in response to complaints from vendors that products were not ready on time. This would be an example of _____. a. cost forecasting c. defect repairs b. a preventive action d. a corrective action 29. A(n) _____ is a formal, documented process that describes when and how official project documents may be modified, the people authorized to make modifications, and the paperwork required for these changes. a. WBS c. performance report b. project charter d. change control system A change control system is a formal, documented process that describes when and how official project documents may be changed. It also describes the people authorized to make changes, the paperwork required for these changes, and any automated or manual tracking systems the project will use. 30. _____ involves identifying and controlling the functional and physical design characteristics of products and their support documentation, and ensures that the descriptions of the project’s products are correct and complete. a. NPV analysis c. Configuration management b. Project management information systems d. Project time management Configuration management ensures that the descriptions of the project’s products are correctand complete. It involves identifying and controlling the functional and physical design characteristics of products and their support documentation.   Chapter 5: Project Scope Management MULTIPLE CHOICE 1. The term ______ describes a product produced as part of a project. a. variance c. deliverable b. scope d. work package The term deliverable describes a product created as part of a project. Deliverables can be product related, such as a piece of hardware or software, or process-related, such as a planning document or meeting minutes. 2. Scope refers to: a. each level of work that is outlined in a work breakdown structure. c. tasks that are decomposed into smaller tasks in a work breakdown structure. b. the end product created as part of a project that is delivered to the client. d. the work involved in creating the products and the processes used to create them. 3. _____ involves defining and documenting the features and functions of the products produced during the project as well as the processes used for creating them. a. Collecting requirements c. Controlling scope b. Defining scope d. Validating scope Collecting requirements involves defining and documenting the features and functions of the products for the project as well as the processes used for creating them. The project team creates requirements documentation and a requirements traceability matrix as outputs of the requirements collection process. 4. _____ involves reviewing the project charter, requirements documents, and organizational process assets to create a scope statement, adding more information as requirements are developed and change requests are approved. a. Creating scope c. Controlling scope b. Defining scope d. Validating scope Defining scope involves reviewing the scope management plan, project charter, requirements documents, and organizational process assets to create a scope statement, adding more information as requirements are developed 5. _____ involves formalizing acceptance of the project deliverables and during this phase the key project stakeholders, such as the customer and sponsor for the project, inspect and then formally accept the deliverables. a. Creating scope c. Controlling scope b. Defining scope d. Validating scope 6. Creating the WBS is a subprocess associated with the _____ process in project scope management. a. planning c. closing b. monitoring and controlling d. executing 7. The ______ documents how project needs will be analyzed, documented, and managed. a. requirements traceability matrix c. WBS b. requirements management plan d. project scope statement 8. Generating ideas by comparing specific project practices or product characteristics to those of other projects or products inside or outside the performing organization is known as _____. a. variance c. prototyping b. benchmarking d. decomposition 9. A(n) _____ is a table that lists requirements, their various attributes, and the status of the requirements to ensure that all are addressed. a. requirements traceability matrix c. state transition table b. Gantt chart d. entity-attribute-value model 10. A(n) _____ is a deliverable-oriented grouping of the work involved in a project that defines the total scope of the project. a. project charter c. project scope statement b. business case d. work breakdown structure After collecting requirements and defining scope, the next step in project scope management is to create a work breakdown structure. A work breakdown structure (WBS) is a deliverable oriented grouping of the work involved in a project that defines its total scope. 11. The main technique used in creating a WBS is _____, which involves subdividing project deliverables into smaller pieces. a. conglomeration c. decomposition b. accumulation d. catalyzation 12. A(n) ____ is a task at the lowest level of the WBS. a. variance c. deliverable b. objective d. work package 13. The _____ should list and describe all of the deliverables required for the project. a. project charter c. WBS b. scope statement d. Gantt chart 14. In the _____approach for constructing a WBS, you use a similar project’s WBS as a starting point. a. top-down c. mind-mapping b. bottom-up d. analogy 15. The _____ approach for constructing a WBS involves refining the work into greater and greater levels of detail. a. analogy c. top-down b. bottom-up d. mind mapping 16. The _____ approach for constructing a WBS starts with the largest items of the project and breaks them into subordinate items. a. analogy c. top-down b. bottom-up d. mind mapping To use the top-down approach, start with the largest items of the project and break them into subordinate items. The top-down approach is best suited to project managers who have vast technical insight and a big-picture perspective. 17. In the _____ approach, team members first identify as many specific tasks related to the project as possible and then aggregate the specific tasks and organize them into summary activities, or higher levels in the WBS. a. analogy c. top-down b. bottom-up d. mind mapping In the bottom-up approach, team members first identify as many specific tasks related to the project as possible. They then aggregate the specific tasks and organize them into summary activities, or higher levels in the WBS. Project managers often use the bottom-up approach for projects that represent entirely new systems or approaches to doing a job, or to help create buy-in and synergy with a project team. 18. The _____ technique for creating a WBS uses branches radiating from a core idea to structure thoughts and ideas instead of writing down tasks in a list or immediately trying to create a structure for tasks. a. analogy c. top-down b. bottom-up d. mind mapping Mind mapping is a technique that uses branches radiating from a core idea to structure thoughts and ideas. Instead of writing down tasks in a list or immediately trying to create a structure for tasks, mind mapping allows people to write and even draw pictures of ideas in a nonlinear format. 19. Which of the following is recommended for the creation of a good WBS? a. Any WBS item should be the responsibility of all the people working on it. c. Each WBS item should be created assuming that the requirements are inflexible. b. A unit of work should appear at only one place in the WBS. d. The work content of a WBS item is independent of the WBS items below it. Some basic principles apply to creating any good WBS and its WBS dictionary. Firstly, a unit of work should appear at only one place in the WBS. The work content of a WBS item is the sum of the WBS items below it. 20. Scope creep refers to: a. the tendency for project scope to keep getting bigger and bigger. c. the approved project scope statement and its associated WBS. b. subdividing project deliverables into smaller pieces. d. a task at the lowest level of the WBS. 21. _____ involves formal acceptance of the completed project scope by the stakeholders. a. Scope validation c. Scope control b. Scope planning d. Scope baseline Scope validation involves formal acceptance of the completed project deliverables. This acceptance is often achieved by a customer inspection and then sign-off on key deliverables. 22. _____ refers to the difference between planned and actual performance. a. Decomposition c. Scope validation b. Variance d. Scope creep 23. _____ refers to the process of developing a working replica of the system or some aspect of the system. a. Prototyping c. Decomposition b. Variance d. Use case modeling 24. _____ is a process for identifying and modeling business events, who initiated them, and how the system should respond to them. a. Prototyping c. RAD b. JAD d. Use case modeling Use case modeling is a process for identifying and modeling business events, who initiated them, and how the system should respond to them. It is an effective tool for understanding requirements of information systems. 25. _____ uses highly organized and intensive workshops to bring together project stakeholders—the sponsor, users, business analysts, programmers, and so on—to jointly define and design information systems. a. Prototyping c. RAD b. JAD d. Use case modeling Joint Application Design (JAD) uses highly organized and intensive workshops to bring together project stakeholders — the sponsor, users, business analysts, programmers, and so on —to jointly define and design information systems. Chapter 6: Project Time Management MULTIPLE CHOICE 1. The first process involved in project time management is _____ . a. defining activities c. planning schedule management b. estimating activity durations d. sequencing activities Schedule management is the first process in project time management and involves determining the policies, procedures, and documentation that will be used for planning, executing, and controlling the project schedule. 2. Which of the following processes in project time management involves identifying the specific tasks that the project team members and stakeholders must perform to produce the project deliverables? a. Defining activities c. Developing the schedule b. Sequencing activities d. Estimating activity durations 3. In project time management, which of the following processes generate the main outputs of an activity list, activity attributes, and a milestone list? a. Sequencing activities c. Resource estimating activities b. Defining activities d. Estimating activity durations 4. In project time management, which of the following processes primarily involve identifying and documenting the relationships between project activities? a. Defining activities c. Planning schedule management b. Sequencing activities d. Estimating activity durations Sequencing activities involves identifying and documenting the relationships between project activities. The main outputs of this process include project schedule network diagrams and project documents updates. 5. In project time management, which of the following processes involve calculating the number of work periods that are needed to complete individual activities? a. Defining activities c. Planning schedule management b. Sequencing activities d. Estimating activity durations 6. In project time management, which of the following processes involve analyzing activity sequences, activity resource estimates, and activity duration estimates to create the project schedule? a. Planning schedule management c. Controlling the schedule b. Developing the schedule d. Defining activities Developing the schedule involves analyzing activity sequences, activity resource estimates, and activity duration estimates to create the project schedule. Outputs include a schedule baseline, project schedule, schedule data, project calendars, project management plan updates, and project documents updates. 7. In project time management, the process of_____ primarily involves checking and managing changes to the project schedule. a. estimating activity durations c. controlling the schedule b. developing the schedule d. estimating activity resources In project time management, the process of controlling the schedule involves controlling and managing changes to the project schedule. Outputs include work performance information, schedule forecasts, and change requests among others. 8. In project time management, a(n) _____ is an output of controlling the schedule a. activity duration estimate c. activity attribute b. project management plan update d. milestones list 9. Which of the following documents is most likely to include planned project start and end dates which serve as the starting points for a detailed schedule? a. Resource breakdown structure c. Organizational process assets update b. Milestones list d. Project charter 10. Which of the following is a difference between an activity list and an activity attribute? a. As opposed to an activity attribute, an activity list provides resource requirements and constraints related to activities. c. An activity attribute is a tabulation of activities to be included on a project schedule whereas an activity list is not. b. An activity list provides a more concrete list of milestones for a project than an activity attribute. d. An activity attribute provides more schedule-related information about each activity than an activity list. The activity list is a tabulation of activities to be included on a project schedule. The list should include the activity name, an activity identifier or number, and a brief description of the activity. The activity attributes provide more schedule-related information about each activity, such as predecessors, successors, logical relationships, leads and lags, and so forth. 11. A(n) _____ on a project is a significant event that normally has no duration. a. milestone c. activity sequence b. activity attribute d. schedule baseline A milestone on a project is a significant event that normally has no duration. It often takes several activities and a lot of work to complete a milestone, but the milestone itself is like a marker to help in identifying necessary activities. 12. In project time management, the main goal of _____ is to ensure that the project team has complete understanding of all the work they must do as part of the project scope so they can start scheduling the work. a. defining activities c. estimating activity resources b. estimating activity durations d. controlling the schedule The goal of defining activities is to ensure that the project team completely understands all the work it must do as part of the project scope so the team can start scheduling the work. Activity information is a required input to the other time management processes. 13. In project time management, the next step after defining project activities is: a. planning schedule management. c. controlling the schedule. b. determining their dependencies. d. estimating activity duration. After defining project activities, the next step in project time management is sequencing them or determining their dependencies. The sequencing process involves evaluating the reasons for dependencies and the different types of dependencies. 14. Which of the following types of dependencies are inherent in the nature of work being performed on a project? a. Mandatory c. External b. Discretionary d. Random They are sometimes referred to as hard logic. 15. _____ dependencies are sometimes referred to as soft logic and should be used with care because they may limit later scheduling options. a. Mandatory c. External b. Discretionary d. Inherent Discretionary dependencies are defined by the project team. They are sometimes referred to as soft logic and should be used with care because they may limit later scheduling options. 16. Which of the following dependencies involve relationships between project and non-project activities? a. Mandatory c. External b. Discretionary d. Inherent 17. In an AOA network diagram, _____ occur when two or more activities follow a single node. a. combinations c. mergers b. buffers d. bursts 18. A network diagramming technique in which boxes represent activities is known as a(n) _____. a. PDM c. ADM b. CPM d. PERT The precedence diagramming method (PDM) is a network diagramming technique in which boxes represent activities. It is particularly useful for visualizing certain types of time relationships. 19. AOA network diagrams use only _____ dependencies. a. start-to-start c. finish-to-finish b. finish-to-start d. start-to-finish A finish-to-start dependency is the most common type of relationship or dependency and AOA network diagrams use only finish-to-start dependencies. It is a relationship in which the “from” activity or predecessor must finish before the “to” activity or successor can start. 20. Which of the following is a relationship in which the “from” activity cannot start until the “to” activity is started? a. Start-to-start c. Finish-to-start b. Finish-to-finish d. Start-to-finish A start-to-start dependency is a relationship in which the “from” activity cannot start until the “to” activity or successor is started. 21. Which of the following is true of a finish-to-finish dependency? a. It is a dependency in which the “from” activity cannot start until the “to” activity or successor is started. c. It is a dependency in which the “from” activity must be finished before the “to” activity can be finished. b. It is a dependency in which in which the “from” activity must finish before the “to” activity or successor can start. d. It is a dependency in which the “from” activity must start before the “to” activity can be finished. 22. Which of the following is true of dummy activities? a. They have long durations. c. They have a large range of resources. b. They show logical relationships between activities. d. They have limited time periods. Dummy activities have no duration and no resources, but are occasionally needed on AOA network diagrams to show logical relationships between activities. 23. Which of the following is one of the main outputs of estimating activity resources process? a. Project documents update c. Work breakdown structure b. Milestone list d. Activity duration estimate The main outputs of the resource estimating process include a list of activity resource requirements, a resource breakdown structure, and project documents updates. 24. After working with key stakeholders to define activities and calculate their resources, the next process in project time management is to: a. develop the schedule. c. determine their dependencies. b. control the schedule. d. estimate the duration of activities. 25. In project time management, the ultimate goal of _____ is to provide a basis for monitoring project progress for the time dimension of the project. a. defining activities c. developing a schedule b. sequencing activities d. estimating activity resources The ultimate goal of developing a realistic project schedule is to provide a basis for monitoring project progress for the time dimension of the project. Project time management processes often go through several iterations before a project schedule is finalized. 26. _____ provide(s) a standard format for displaying project schedule information by listing project activities and their corresponding start and finish dates in a calendar format. a. Gantt charts c. Arrow diagramming method b. Critical path analysis d. PERT analysis Gantt charts provide a standard format for displaying project schedule information by listing project activities and their corresponding start and finish dates in calendar form. They are sometimes referred to as bar charts because the activities’ start and end dates are shown as horizontal bars. 27. Which of the following is a network diagramming technique used primarily to predict total project duration? a. Gantt chart c. Resource breakdown structure b. Critical path analysis d. Arrow diagramming method Critical path method (CPM) —also called critical path analysis —is a network diagramming technique used to predict total project duration. This important tool helps combat project schedule overruns. 28. The critical path is the _____ path through a network diagram, and it represents the _____ amount of slack or float. a. longest; longest c. shortest; longest b. longest; shortest d. shortest; shortest A critical path for a project is the series of activities that determine the earliest time by which the project can be completed. It is the longest path through the network diagram and has the least amount of slack or float. 29. The amount of time an activity can be delayed without delaying the early start date of any immediately following activities is known as a _____. a. forward pass c. fast tracking b. backward pass d. free slack A technique that can help project managers make schedule trade-offs is determining the free slack and total slack for each project activity. Free slack or free float is the amount of time an activity can be delayed without delaying the early start date of any immediately following activities. 30. _____ is the amount of time an activity can be delayed from its early start without delaying the planned project finish date. a. Total slack c. Backward pass b. Free float d. Forward pass Total slack or total float is the amount of time an activity can be delayed from its early start without delaying the planned project finish date. 31. The _____ for an activity is the latest possible time an activity might begin without delaying the project finish date. a. early finish date c. late start date b. late finish date d. early start date 32. The technique for making cost and schedule trade-offs to obtain the greatest amount of schedule compression for the least incremental cost is known as _____. a. dependency c. critical chain scheduling b. crashing d. feeding buffers Crashing is a technique for making cost and schedule trade-offs to obtain the greatest amount of schedule compression for the least incremental cost. The main advantage of crashing is shortening the time needed to finish a project. 33. Which of the following techniques involve doing activities in parallel that one would normally do in sequence? a. Critical chain scheduling c. Fast tracking b. Crashing d. PERT analysis The main advantage of fast tracking is that it can shorten the time needed to finish a project. 34. A similarity between the crashing technique and the fast tracking technique is that: a. both spread out tasks over a long period of time to ensure the quality of work is maintained. c. both can shorten the time needed to finish a project. b. both invariably result in increases in total project costs. d. both are network diagramming techniques used primarily to predict total project duration. 35. Critical chain scheduling protects tasks on the critical chain from being delayed by using _____, which consist of additional time added before tasks on the critical chain that are preceded by non-critical-path tasks. a. critical paths c. dummy activities b. feeding buffers d. fast tracking 36. _____ states that work expands to fill the time allowed. a. Murphy’s Law c. Parkinson’s Law b. Miller’s Law d. Einstein’s Law 37. A difference between the Program Evaluation and Review Technique (PERT) and critical path method (CPM) is that: a. CPM addresses the risk associated with duration estimates whereas PERT does not. c. CPM involves more work than PERT because it requires several duration estimates. b. unlike CPM, PERT estimates only when there is no risk of uncertainty. d. PERT uses different duration estimates whereas CPM uses one specific duration estimate. PERT uses probabilistic time estimates —duration estimates based on using optimistic, most likely, and pessimistic estimates of activity durations —instead of one specific or discrete duration estimate, as CPM does. 38. Which of the following is a similarity between scope control and schedule control? a. Both are initial processes of project time management. c. Both are portions of the integrated change control process under project integration management. b. Both of their primary goals is to define project goals and milestones. d. Both of these processes should occur before estimating activity durations. Like scope control, schedule control is a portion of the integrated change control process under project integration management. Controlling the schedule is the final process in project time management. 39. Which of the following is an output of schedule control? a. Lessons-learned reports c. Resource requirements b. Activity attributes d. Milestones list The main outputs of schedule control include work performance measurements, organizational process assets updates such as lessons-learned reports related to schedule control, change requests, project management plan updates, and project documents updates. 40. A draft schedule for a project is most likely to be found in a _____. a. project buffer c. resource breakdown structure b. project charter d. project’s dummy activities list One of the first reality checks for a project manager is to review the draft schedule that is usually included in the project charter. Although this draft schedule might include only a project start and end date, the project charter sets some initial schedule expectations for the project. Chapter 7: Project Cost Management MULTIPLE CHOICE 1. _____ includes the processes required to ensure that a project team completes a project within an approved budget. a. Project scope management c. Project time management b. Project quality management d. Project cost management Project cost management includes the processes required to ensure that a project team completes a project within an approved budget. Project managers must make sure their projects are well defined, have accurate time and cost estimates, and have a realistic budget that they were involved in approving. 2. Which of the following involves developing an approximation of the costs of resources needed to complete a project? a. Determining the budget c. Controlling costs b. Finalising the cost baseline d. Estimating costs Estimating costs involves developing an approximation or estimate of the costs of the resources needed to complete a project. The main outputs of the cost estimating process are activity cost estimates, basis of estimates, and project documents updates. 3. _____ involves allocating the overall cost estimate to individual work items to establish a baseline for measuring performance. a. Determining the budget c. Controlling costs b. Finalising policies for project costs d. Estimating costs 4. One of the main outputs of the _____ process is a cost baseline. a. cost controlling c. cost budgeting b. cost estimating d. cost planning Determining the budget involves allocating the overall cost estimate to individual work items to establish a baseline for measuring performance. The main outputs of the cost budgeting process are a cost baseline, project funding requirements, and project documents updates. 5. The process of controlling costs primarily involves: a. determining the policies for project costs. c. finalising the procedures for project costs. b. managing changes to the project budget. d. determining a basis for estimates. Controlling costs involves controlling changes to the project budget. The main outputs of the cost control process are work performance information, cost forecasts, change requests, project management plan updates, project documents updates, and organizational process assets updates. 6. Work performance information and cost forecasts are main outputs of the _____ process. a. cost budgeting c. cost control b. cost estimating d. cost pricing 7. Profits may be defined as: a. expenses plus net income. c. revenues plus expenses. b. costs plus revenues. d. revenues minus expenditures. To increase profits, a company can increase revenues, decrease expenses, or try to do both. 8. _____ helps develop an accurate projection of a project’s financial expenses and benefits. a. Critical path analysis c. Life cycle costing b. Fast tracking d. Crashing Life cycle costing helps develop an accurate projection of a project’s financial costs and benefits. It allows one to see a big-picture view of the cost of a project throughout its life cycle. 9. _____ is a method for determining the estimated annual costs and benefits for a project. a. Critical path analysis c. Present value analysis b. Cash flow analysis d. Requirements analysis Cash flow analysis is a method for determining the estimated annual costs and benefits for a project and the resulting annual cash flow. Project managers must conduct cash flow analysis to determine net present value. 10. Which of the following is true of tangible costs? a. They cannot be calculated in monetary terms. c. They are difficult to quantify. b. They can be easily measured. d. Their examples include goodwill and prestige. Tangible and intangible costs and benefits are categories for determining how well an organization can define the estimated costs and benefits for a project. Tangible costs or benefits can easily be measured in dollars. 11. _____ are those costs that are difficult to measure in monetary terms. a. Intangible costs c. Tangible costs b. Direct costs d. Fixed costs 12. Newtech Inc. hires John for the position of a software programmer to work on their new project. Salary paid to John by Newtech Inc. would be an example of _____ costs. a. direct c. sunk b. indirect d. intangible Direct costs can be directly related to creating the products and services of a project. For instance, direct costs include the salaries of people working full time on a project. 13. Indirect costs are: a. directly related to performing the project. c. those that can be easily controlled by managers. b. those that cannot be allocated to projects. d. not directly related to the products or services of a project. 14. Soles is a footwear company which has recently set up its store in Ambrosia. To manufacture its products, Soles incurs a range of different costs. Which of the following would be an example of an indirect cost? a. Cost of machines to produce shoes c. Electricity used to run its factories b. Salary paid to factory workers d. Cost of leather used to manufacture shoes Indirect costs are not directly related to the products or services of the project, but are indirectly related to performing the project. For example, indirect costs would include the cost of electricity, paper towels, and other necessities in a large building that houses 1,000 employees who work on many projects. 15. Good Earth, a company manufacturing packaged food products, sets up its stores in Baltonia. However, a year later, the company closes the store down due to high operating costs. In such a scenario, the money spent in paying for the rent of the store in Baltonia would be an example of _____ costs. a. recurring c. sunk b. direct d. intangible Sunk cost is money that has been spent in the past. When deciding what projects to invest in or continue, one should not include sunk costs. 16. Which of the following is true of contingency reserves? a. They allow for future situations that can be partially planned for. c. They are not included in a cost baseline. b. They are also known as unknown unknowns. d. They allow for dollar amounts to be used to cover existing, fixed costs. Contingency reserves allow for future situations that may be partially planned for (sometimes called known unknowns) and are included in the project cost baseline. 17. Which of the following reserves allows for future situations that are unpredictable? a. Contingency reserves c. Known unknowns b. Management reserves d. Cost baseline reserves Management reserves allow for future situations that are unpredictable. They are sometimes called unknown unknowns. 18. The first step in project cost management is: a. to allocate project cost estimates to individual material resources. c. to control project costs and monitor cost performance. b. to plan how costs will be managed. d. to develop several estimates of costs for different types of resources. The first step in project cost management is planning how the costs will be managed throughout the life of the project. The project manager and other stakeholders use expert judgment, analytical techniques, and meetings to produce the cost management plan. 19. Which of the following is true of a rough order of magnitude estimate? a. It is used to allocate money into an organization’s budget. c. Its timeframe is always less than a year prior to project completion. b. It provides an estimate of what a project will cost. d. It is a type of estimate that is done in the final stages of a project. A rough order of magnitude (ROM) estimate provides an estimate of what a project will cost. This type of estimate is done very early in a project or even before a project is officially started. A ROM estimate can also be referred to as a ballpark estimate, a guesstimate, a swag, or a broad gauge. 20. A rough order of magnitude estimate can be referred to as a _____ estimate. a. definitive c. final b. budgetary d. ballpark 21. A cost estimation tool which is used to allocate money into an organization’s budget is known as a _____ estimate. a. budgetary c. rough order of magnitude b. definitive d. ballpark A budgetary estimate is used to allocate money into an organization’s budget. Budgetary estimates are made one to two years prior to project completion. 22. A _____ estimate is used for making many purchasing decisions for which accurate estimates are required and for estimating final project costs. a. budgetary c. rough order of magnitude b. definitive d. final A definitive estimate provides an accurate estimate of project costs. Definitive estimates are used for making many purchasing decisions for which accurate estimates are required and for estimating final project costs. 23. Which of the following types of estimate use the actual cost of a previous, similar project as the basis for estimating the cost of the current project? a. Definitive estimates c. Bottom-up estimates b. Parametric estimates d. Analogous estimates Analogous estimates use the actual cost of a previous, similar project as the basis for estimating the cost of the current project. This technique requires a good deal of expert judgment and is generally less costly than other techniques, but it is also less accurate. They are also called top-down estimates. 24. Analogous estimates are also known as _____ estimates. a. bottom-up c. parametric b. top-down d. budgetary 25. Which of the following is true of analogous estimates? a. Their main disadvantage is that they cost more than other techniques. c. They are most reliable when previous projects are similar in fact with current projects. b. They are the only technique which do not require expert judgement. d. They use project characteristics in a mathematical model to estimate project costs. 26. A cost estimation tool which involves estimating individual work items or activities and summing them to get a project total is known as a(n) _____ estimate. a. budgetary c. bottom-up b. parametric d. analogous Bottom-up estimates involve estimating the costs of individual work items or activities and summing them to get a project total. This approach is sometimes referred to as activity-based costing. The drawback with bottom-up estimates is that they are usually time-intensive and therefore expensive to develop. 27. Which of the following is true of bottom-up estimates? a. They are based on the actual cost of a previous, similar project. c. They are most accurate when they involve large, extensive work items. b. They are also known as parametric estimating. d. They are time-intensive and expensive to develop. 28. _____ uses project characteristics in a mathematical model to estimate project costs. a. Rough order of magnitude estimating c. Bottom-up estimating b. Parametric estimating d. Analogous estimating 29. Which of the following is most likely to be a reason for inaccuracies in information technology cost estimates? a. Estimates take a long time to be worked out. c. Human beings are biased toward overestimation. b. People lack estimating experience. d. Only software development provides the scope for estimates to be accurate. The people who develop software cost estimates often do not have much experience with cost estimation, especially for large projects. They also do not have enough accurate, reliable project data on which to base estimates. 30. If the cost estimate for a project is a basis for contract awards and performance reporting, it should be a(n) _____ estimate and as accurate as possible. a. budgetary c. rough order of magnitude b. definitive d. analogous 31. The main goal of the _____ process is to produce a cost baseline for measuring project performance and project funding requirements. a. cost budgeting c. cost controlling b. cost planning d. cost estimating Determining the budget involves allocating the project cost estimate to individual material resources or work items over time. 32. Which of the following is an output of the process of controlling costs? a. Cost forecasts c. Basis of estimates b. Project funding requirements d. Scope baselines Outputs of the process of controlling costs are work performance information, cost forecasts, change requests, project management plan updates, project documents updates, and organizational process asset updates. 33. Which of the following is an input of the process of controlling costs? a. Cost forecasts c. Change requests b. Work performance data d. Scope baseline The project management plan, project funding requirements, work performance data, and organizational process assets are inputs for controlling costs. 34. The budget is one of the three values of earned value management and is also known as _____. a. earned value c. indirect cost b. actual cost d. planned value The planned value (PV), also called the budget, is the portion of the approved total cost estimate planned to be spent on an activity during a given period. 35. Which of the following is true of earned value? a. It is the actual cost plus the planned cost. c. It is an estimate of the value of the physical work actually completed. b. It is based solely on the total cost estimate to be spent on an activity. d. It is also known as the planned value. The earned value (EV) is an estimate of the value of the physical work actually completed. EV is based on the original planned costs for the project or activity and the rate at which the team is completing work on the project or activity to date. 36. Variances are calculated by subtracting the actual cost from _____. a. earned value c. planned value b. schedule variance d. rate of performance Variances are calculated by subtracting the actual cost or planned value from EV or earned value, and indexes are calculated by dividing EV by the actual cost or planned value. 37. Cost variance is: a. the planned value plus actual costs. c. the rate of performance minus earned value. b. the earned value minus the actual cost. d. the planned value minus the rate of performance. Cost variance (CV) is the earned value minus the actual cost. If cost variance is a negative number, it means that performing the work costs more than planned. If cost variance is a positive number, performing the work costs less than planned. 38. Schedule variance is: a. the earned value minus the planned value. c. the planned value plus the earned value. b. the earned value minus the actual cost. d. the planned value plus the rate of performance. Schedule variance (SV) is the earned value minus the planned value. A negative schedule variance means that it took longer than planned to perform the work, and a positive schedule variance means that the work took less time than planned to perform. 39. The cost performance index (CPI): a. indicates that a project is under budget if CPI is less than one. c. indicates that the planned and actual costs are equal if CPI is more than one. b. can be used to estimate the projected cost of completing the project. d. is the ratio of earned value to planned value. The cost performance index (CPI) is the ratio of earned value to actual cost; it can be used to estimate the projected cost of completing the project. 40. Which of the following is true of the schedule performance index (SPI)? a. It can be used to estimate the projected time to complete the project. c. It means that a project is ahead of schedule if SPI is lesser than one or hundred percent. b. It means that a project is behind schedule if an SPI is greater than one. d. It is the ratio of planned value to actual costs. The schedule performance index (SPI) is the ratio of earned value to planned value; it can be used to estimate the projected time to complete the project. Chapter 8: Project Quality Management MULTIPLE CHOICE 1. _____ means the project’s processes and products meet written specifications. a. Conformance to requirements c. Project feasibility b. Fitness for use d. Benchmarking Conformance to requirements means that the project’s processes and products meet written specifications. For example, if the project scope statement requires delivery of 100 computers with specific processors and memory, you could easily check whether suitable computers had been delivered. 2. _____ means that a product can be used as it was intended. a. Conformance to requirements c. Critical chain scheduling b. Fitness for use d. Free slack 3. Process improvement plan, quality metrics, and quality checklists are the outputs of the _____ process of project quality management. a. controlling quality c. quality certification b. planning quality management d. performing quality assurance The main outputs of planning quality management are a quality management plan, a process improvement plan, quality metrics, quality checklists, and project documents updates. 4. A _____ is a standard of measurement in quality management. a. milestone c. merge b. metric d. matrix A metric is a standard of measurement. Examples of common metrics include failure rates of products, availability of goods and services, and customer satisfaction ratings. 5. The _____ process is often associated with the technical tools and techniques of quality management, such as Pareto charts, quality control charts, and statistical sampling. a. quality planning c. quality assurance b. quality certification d. quality control Controlling quality involves monitoring specific project results to ensure that they comply with the relevant quality standards while identifying ways to improve overall quality. This process is often associated with the technical tools and techniques of quality management, such as Pareto charts, quality control charts, and statistical sampling. 6. Performing quality assurance is a subprocess of the _____ process of project quality management. a. initiating c. monitoring and controlling b. closing d. executing 7. Validated changes and validated deliverables are the outputs of the _____ subprocess of project quality management. a. initiating c. monitoring and controlling b. closing d. executing 8. _____ is a technique that helps identify which variables have the most influence on the overall outcome of a process. a. Design of experiments c. Activity-on-arrow b. Backward pass d. Crashing Understanding which variables affect outcome is a very important part of quality planning. 9. _____ is the degree to which a system performs its intended function. a. Reliability c. Maintainability b. Validity d. Functionality Functionality is the degree to which a system performs its intended function. Features are the system’s special characteristics that appeal to users. It is important to clarify what functions and features the system must perform, and what functions and features are optional. 10. _____ are the system’s special characteristics that appeal to users. a. Features c. Yields b. Outputs d. Metrics Features are the system’s special characteristics that appeal to users. It is important to clarify what functions and features the system must perform, and what functions and features are optional. 11. _____ addresses how well a product or service performs the customer’s intended use. a. Reliability c. Maintainability b. Performance d. Functionality 12. _____ is the ability of a product or service to perform as expected under normal conditions. a. Reliability c. Maintainability b. Performance d. Functionality In discussing reliability for IT projects, many people use the term IT service management. 13. _____ addresses the ease of performing maintenance on a product. a. Reliability c. Maintainability b. Performance d. Functionality 14. _____ generates ideas for quality improvements by comparing specific project practices or product characteristics to those of other projects or products within or outside the performing organization. a. Prototyping c. Mind mapping b. Systems thinking d. Benchmarking 15. _____ refers to action taken to bring rejected items into compliance with product requirements or specifications or other stakeholder expectations. a. A process adjustment c. An acceptance decision b. Rework d. Validation Rework is action taken to bring rejected items into compliance with product requirements, specifications, or other stakeholder expectations. Rework often results in requested changes and validated defect repair, and it results from recommended defect repair or corrective or preventive actions. 16. _____ correct(s) or prevent(s) further quality problems based on quality control measurements. a. Process adjustments c. Acceptance decisions b. Rework d. Decomposition Process adjustments often result in updates to the quality baseline, Organization process assets, and the project management plan. 17. A _____ is a graphic display of data that illustrates the results of a process over time. a. statistical sampling chart c. Six Sigma chart b. Pareto chart d. control chart A control chart is a graphic display of data that illustrates the results of a process over time. Control charts allow you to determine whether a process is in control or out of control. 18. _____ help users to identify the vital few contributors that account for most quality problems in a system. a. Gantt charts c. Control charts b. Pareto charts d. Tracking Gantt charts A Pareto chart is a histogram that can help you identify and prioritize problem areas. The variables described by the histogram are ordered by frequency of occurrence. Pareto charts help you identify the vital few contributors that account for most quality problems in a system. 19. _____ involves choosing part of a population of interest for inspection. a. Statistical sampling c. System testing b. Conformance d. Fitness for use 20. Six Sigma’s target for perfection is the achievement of no more than _____ defects, errors, or mistakes per million opportunities. a. 1.34 c. 34 b. 3.4 d. 13.4 21. Projects that use Six Sigma principles for quality control normally follow a five-phase improvement process called _____. a. DMAIC c. configuration management b. weighted scoring model d. use case modeling 22. Important tools used in the _____ phase of the DMAIC process include a project charter, a description of customer requirements, process maps, and Voice of the Customer (VOC) data. a. define c. analyze b. measure d. improve 23. An important tool used in the _____ phase of the DMAIC process is the fishbone or Ishikawa diagram. a. define c. analyze b. measure d. improve 24. A ____ is a bell-shaped curve that is symmetrical regarding the average value of the population (the data being analyzed). a. skewed distribution c. bimodal distribution b. normal distribution d. degenerate distribution 25. A(n) _____ is any instance where the product or service fails to meet customer requirements. a. defect c. deliverable b. yield d. variance A defect is any instance in which the product or service fails to meet customer requirements. Because most products or services have multiple customer requirements, there can be several opportunities to have a defect. 26. The _____ is a measure of quality control equal to 1 fault in 1 million opportunities problems. a. ISO 9000 c. seven run rule b. six 9s of quality rule d. Six Sigma rule Six 9s of quality is a measure of quality control equal to 1 fault in 1 million opportunities. In the telecommunications industry, it means 99.9999 percent service availability or 30 seconds of downtime a year. 27. A(n) _____ is done to test each individual component (often a program) to ensure that it is as defect-free as possible. a. integration test c. user acceptance test b. unit test d. system test Unit tests are performed before moving on to the integration test. 28. ____ is an independent test performed by end users prior to accepting the delivered system. a. Integration testing c. User acceptance testing b. Unit testing d. System testing It focuses on the business fit of the system to the organization, rather than technical issues. 29. Which of the following is one of Deming’s 14 Points for Management? a. An organization should increase dependence on inspection to achieve quality. c. Minimize total cost by working with multiple suppliers rather than a single supplier. b. Award business based on price tag alone rather than on other considerations. d. Eliminate the annual rating or merit system. Dr. W. Edwards Deming is known primarily for his work on quality control in Japan. One of Deming’s 14 Points for Management states that an organization should remove barriers that rob people of workmanship and eliminate the annual rating or merit system. 30. One of Juran’s ten steps to quality improvement states that: a. an organization should minimize top management involvement in the achievement of individual employee goals. c. an organization should build awareness of the need and opportunity for improvement. b. an organization should entrust improvement to individual employees rather than appointing teams or facilitators. d. an organization should avoid “keeping score” in order to achieve an overall atmosphere of quality improvement. Joseph M. Juran wrote the first edition of the Quality Control Handbook in 1974, stressing the importance of top management commitment to continuous product quality improvement. One of Juran’s ten steps states that an organization should build awareness of the need and opportunity for improvement. 31. _____ wrote Quality Is Free in 1979 and is best known for suggesting that organizations strive for zero defects. a. Juran c. Crosby b. Ishikawa d. Deming Philip B. Crosby wrote Quality Is Free in 1979 and is best known for suggesting that organizations strive for zero defects. He stressed that the costs of poor quality should include all the costs of not doing the job right the first time, such as scrap, rework, lost labor hours and machine hours, customer ill will and lost sales, and warranty costs. 32. _____, a quality system standard is a three-part, continuous cycle of planning, controlling, and documenting quality in an organization. a. Seven run rule c. Six Sigma b. ISO 9000 d. ASQ 33. _____ is the cost of evaluating processes and their outputs to ensure that a project is error-free or within an acceptable error range. a. Prevention cost c. Internal failure cost b. Appraisal cost d. External failure cost Appraisal cost is the cost of evaluating processes and their outputs to ensure that a project is error-free or within an acceptable error range. Activities such as inspection and testing of products, maintenance of inspection and test equipment, and processing and reporting inspection data all contribute to appraisal costs of quality. 34. _____ is a cost that relates to all errors not detected and not corrected before delivery to the customer. a. Prevention cost c. Internal failure cost b. Appraisal cost d. External failure cost External failure cost is a cost that relates to all errors not detected and corrected before delivery to the customer. Items such as warranty cost, field service personnel training cost, product liability suits, complaint handling, and future business losses are examples of external failure costs. 35. _____ helps integrate traditionally separate organizational functions, set process improvement goals and priorities, provide guidance for quality processes, and provide a point of reference for appraising current processes. a. SQFD c. OPM3 b. MTBI d. CMMI The Capability Maturity Model Integration (CMMI) is “a process improvement approach that provides organizations with the essential elements of effective processes. It can be used to guide process improvement across a project, a division, or an entire organization.” Chapter 9: Project Human Resource Management MULTIPLE CHOICE 1. _____ involves assigning the needed personnel to work on the project. a. Planning human resource management c. Acquiring the project team b. Developing the project team d. Managing the project team Acquiring the project team involves assigning the needed personnel to work on the project. Key outputs of this process are project staff assignments, resource calendars, and project management plan updates. 2. Key outputs of _____ process are project staff assignments, resource calendars, and project management plan updates. a. managing the project team c. developing the project team b. acquiring the project team d. planning the human resource plan 3. _____ involves building individual and group skills to enhance project performance. a. Developing the human resource plan c. Acquiring the project team b. Developing the project team d. Managing the project team 4. The main outputs of the _____ process are team performance assessments and enterprise environmental factors updates. a. managing the project team c. developing the project team b. acquiring the project team d. human resource planning Developing the project team involves building individual and group skills to enhance project performance. The main outputs of this process are team performance assessments and enterprise environmental factors updates. 5. _____ involves tracking team member performance, motivating team members, providing timely feedback, resolving issues and conflicts, and coordinating changes to help enhance project performance. a. Developing the human resource plan c. Acquiring the project team b. Developing the project team d. Managing the project team 6. The acquiring of the project team is a subprocess associated with the _____ process of project human resource management. a. executing c. planning b. controlling and monitoring d. initiating 7. _____ a highly respected psychologist, rejected the dehumanizing negativism of psychology and proposed the hierarchy of needs theory. a. Sigmund Freud c. Carl Jung b. Abraham Maslow d. Philip Zimbardo Abraham Maslow, a highly respected psychologist who rejected the dehumanizing negativism of psychology in the 1950s, is best known for developing a hierarchy of needs. 8. At the bottom of Maslow’s structure are _____ needs. a. esteem c. physiological b. self-actualization d. social At the bottom of the pyramid structure of Maslow’s hierarchy of needs are physiological needs. Once physiological needs are satisfied, safety needs guide behavior. 9. _____ is at the top of Maslow’s hierarchy of needs. a. Esteem c. Physiological b. Self-actualization d. Social Self actualization is at the top of Maslow’s structure. Self-actualized people are problem-focused, have an appreciation for life, are concerned about personal growth, and are able to have peak experiences. 10. Recognizing an employee as the “Star Performer of the Month” would be satisfying the _____ need of the Maslow’s hierarchy of needs. a. esteem c. physiological b. self-actualization d. safety Esteem needs include recognition, prestige, and status. 11. The bottom four needs in Maslow’s structure are referred to as _____ needs. a. self-actualization c. safety b. deficiency d. growth The bottom four needs in Maslow’s hierarchy, physiological, safety, social, and esteem needs, are referred to as deficiency needs, and the highest level, self-actualization, is considered a growth need. 12. The highest level of needs in Maslow’s structure is referred to as a _____ need. a. deficiency c. safety b. growth d. physiological 13. _____ is best known for distinguishing between motivational factors and hygiene factors when considering motivation in work settings. a. Frederick Herzberg c. Abraham Maslow b. David McClelland d. Douglas McGregor Frederick Herzberg is best known for distinguishing between motivational factors and hygiene factors when considering motivation in work settings. He referred to factors that cause job satisfaction as motivators and factors that could cause dissatisfaction as hygiene factors. 14. According to Herzberg, which of the following is a motivational factor? a. Recognition c. Training b. Salary d. Health benefits 15. People with a high need for _____ seek to excel and tend to avoid both low-risk and high-risk situations to improve their chances for achieving something worthwhile. a. affiliation c. power b. security d. achievement People who have a high need for achievement (nAch) seek to excel, and tend to avoid both low-risk and high-risk situations to improve their chances for achieving something worthwhile. Achievers need regular feedback and often prefer to work alone or with other high achievers. 16. According to McClelland’s acquired-needs theory, people with a high need for _____ desire harmonious relationships with other people and need to feel accepted by others. a. affiliation c. power b. self-actualization d. achievement People with a high need for affiliation (nAff) desire harmonious relationships with other people and need to feel accepted by others. They tend to conform to the norms of their work group and prefer work that involves significant personal interaction. 17. According to McClelland’s acquired-needs theory, people who need personal _____ want to direct others and can be seen as bossy. a. affiliation c. power b. advancement d. achievement People with a need for power (nPow) desire either personal power or institutional power. People who need personal power want to direct others and can be seen as bossy. 18. The _____ presents subjects with a series of ambiguous pictures and asks them to develop a spontaneous story for each picture, assuming they will project their own needs into the story. a. RAM c. TAT b. MBTI d. RACI The Thematic Apperception Test (TAT) is a tool to measure the individual needs of different people using McClelland’s categories. The TAT presents subjects with a series of ambiguous pictures and asks them to develop a spontaneous story for each picture, assuming they will project their own needs into the story. 19. _____ is best known for developing Theory X and Theory Y. a. Frederick Herzberg c. Abraham Maslow b. David McClelland d. Douglas McGregor Douglas McGregor was one of the great popularizers of a human relations approach to management, and he is best known for developing Theory X and Theory Y. 20. Managers who follow _____ assume that the average worker wants to be directed and prefers to avoid responsibility. a. Theory Z c. Theory Y b. Theory X d. Theory K People who believe in Theory X assume that workers dislike and avoid work if possible, so managers must use coercion, threats, and various control schemes to have workers make adequate efforts to meet objectives. They assume that the average worker wants to be directed and prefers to avoid responsibility, has little ambition, and wants security above all else. 21. _____ emphasizes things such as job rotation, broadening of skills, generalization versus specialization, and the need for continuous training of workers. a. Theory W c. Theory Y b. Theory X d. Theory Z Theory Z workers, it is assumed, can be trusted to do their jobs to their utmost ability, as long as management can be trusted to support them and look out for their wellbeing. Theory Z emphasizes job rotation, broadening of skills, generalization versus specialization, and the need for continuous training of workers. 22. According to Thamhain and Wilemon, _____ is the legitimate hierarchical right to issue orders. a. authority c. expertise b. achievement d. self-actualization 23. According to Thamhain and Wilemon, _____ is the ability to improve a worker’s position. a. penalty c. expertise b. assignment d. promotion 24. _____ involves using punishment, threats, or other negative approaches to get people to do things they do not want to do. a. Legitimate power c. Reward power b. Coercive power d. Referent power 25. _____ involves using incentives to induce people to do things. a. Legitimate power c. Reward power b. Coercive power d. Referent power 26. _____ is based on an individual’s personal charisma. a. Legitimate power c. Reward power b. Coercive power d. Referent power Referent power is based on a person’s own charisma. People who have referent power are held in very high regard; others will do what they say based on that regard. 27. _____ refers to matching certain behaviors of the other person. a. Empathic listening c. Synergy b. Rapport d. Mirroring Mirroring is matching certain behaviors of the other person. People tend to like others who are like themselves, and mirroring helps you take on some of the other person’s characteristics. 28. The first step in the framework for defining and assigning work is _____. a. defining how the work will be accomplished b. breaking down the work into manageable elements c. finalizing the project requirements d. assigning work responsibilities 29. A(n) _____ is a column chart that shows the number of resources assigned to a project over time. a. responsibility assignment matrix c. RACI charts b. resource histogram d. organizational breakdown structure The staffing management plan often includes a resource histogram, which is a column chart that shows the number of resources assigned to a project over time. 30. _____ refers to the amount of individual resources an existing schedule requires during specific time periods. a. Resource loading c. Resource histogram b. Resource leveling d. Resource logs Resource loading refers to the amount of individual resources an existing schedule requires during specific time periods. It helps project managers understand the demands of a project on the organization’s resources and on individual people’s schedules. 31. _____ is a technique for resolving resource conflicts by delaying tasks. a. Resource loading c. Resource allocation b. Resource leveling d. Resource histogram Resource leveling is a technique for resolving resource conflicts by delaying tasks. It is a form of network analysis in which resource management concerns drive scheduling decisions (start and finish dates). The main purpose of resource leveling is to create a smoother distribution of resource usage. 32. In the Tuckman model, _____ occurs as team members have different opinions as to how the team should operate. a. performing c. forming b. norming d. storming Storming occurs when team members have different opinions for how the team should operate. People test each other, and there is often conflict within the team. 33. In the Tuckman model, _____ occurs when the emphasis is on reaching the team goals, rather than working on team process. a. performing c. forming b. norming d. storming Performing occurs when the emphasis is on reaching the team’s goals rather than working on team process. Relationships are settled, and team members are likely to build loyalty towards each other. 34. In the MBTI, the _____ dimension relates to the manner in which you gather information. a. Extrovert/Introvert c. Judgment/Perception b. Thinking/Feeling d. Sensation/Intuition In the MBTI, the Sensation/ Intuition dimension relates to the manner in which you gather information. Sensation (or Sensing) type people take in facts, details, and reality and describe themselves as practical. Intuitive type people are imaginative, ingenious, and attentive to hunches or intuition. They describe themselves as innovative and conceptual. 35. Psychologist David Merril describes _____ as reactive and task-oriented. a. “Expressives” c. “Analyticals” b. “Drivers” d. “Amiables” Analyticals are reactive and task-oriented. They are past-oriented and strong thinkers. Adjectives to describe analyticals include critical, indecisive, stuffy, picky, moralistic, industrious, persistent, serious, expecting, and orderly. 36. According to Blake and Mouton, project managers who use the _____ method use a give-and take-approach to resolving conflicts. a. smoothing c. confrontation b. forcing d. compromise With the compromise mode, project managers use a give-and-take approach to resolving conflicts. They bargain and search for solutions that bring some degree of satisfaction to all the parties in a dispute. 37. According to Lencioni, which of the following qualities is present in organizations that succeed? a. Commitment c. Accountability b. Autonomy d. Teamwork According to Patrick Leniconi, “Teamwork remains the one sustainable competitive advantage that has been largely untapped .. teamwork is almost always lacking within organizations that fail, and often present within those that succeed.” Chapter 10: Project Communications Management MULTIPLE CHOICE 1. _____ involves determining the information and communications needs of the stakeholders. a. Strategic planning c. Identifying stakeholders b. Systems management d. Planning communications Planning communications management involves determining the information and communications needs of the stakeholders. Who needs what information? When will they need it? How will the information be given to them? 2. The output of the _____ process is a communications management plan. a. managing communications c. controlling communications b. reporting performance d. planning communications Planning communications management involves determining the information and communications needs of the stakeholders. The outputs of this process include a communications management plan and project documents updates. 3. Managing communications is part of the _____ process of the project communication management. a. closing c. planning b. executing d. monitoring and controlling 4. As a manager, you want to praise a team member, Phil, for doing a good job on a particular project. However, you know that Phil tends to be an introvert. Which of the following communication methods would Phil be most comfortable with? a. Call Phil in for a private meeting to appreciate his work. c. Announce Phil’s accomplishment on the company Web site. b. Call a team meeting to praise Phil for his work on the project. d. Have top management and the other teams in the company award Phil. People have different personality traits that often affect their communication preferences. For example, if you want to praise a project team member for doing a good job, most introverts would be more comfortable receiving that praise in private, while most extroverts would like everyone to hear about their good work. 5. Research has indicated that in a face-to-face interaction, _____ percent of information is through body language. a. 58 c. 7 b. 35 d. 75 Research has indicated that in a face-to-face interaction, 58 percent of communication is through body language, 35 percent is through how the words are said, and a mere 7 percent is through the actual spoken content. 6. Which of the following methods of communication is likely to be most effective for conveying sensitive or important information? a. Short face-to-face meetings c. Telephone conversations b. E-mails d. Reading reports from other team members Short face-to-face meetings are often more effective than electronic communications, particularly for sensitive information. 7. As the number of people involved in a project _____, the complexity of communications _____. a. increases, decreases c. increases, stays constant b. decreases, increases d. increases, increases An important aspect of communications is the number of people involved in a project. As the number increases, the complexity of communication increases because there are more channels or pathways through which people can communicate. 8. The formula to determine the number of communication channels is _____, where n is the number of people involved. a. n (n-1)/2 c. n (n+1)/n(n-1) b. n(n+1)/2 d. n(n-1)/n(n+1) The formula to determine the number of communication channels as the number of people involved in a project increases: number of communication channels = n (n-1)/2. 9. Using the formula for calculating the number of communication channels, how many channels would two people require? a. 1 c. 3 b. 2 d. 4 The formula to determine the number of communication channels as the number of people involved in a project increases: number of communication channels = n (n-1)/2. Two people will have one communication channel. 10. Using the formula for calculating the number of communication channels, how many channels would five people require? a. 9 c. 11 b. 10 d. 14 11. A team has 10 communication channels between its various members. Using the formula number of communication channels = n (n-1)/2, where n is the number of people in the team, the team has _____ members. a. 5 c. 2 b. 3 d. 10 12. Which of the following is true of a project communications plan? a. The communications plan within an organization does not vary from project to project. c. The communications plan should never be part of the team contract, but should always be a separate document. b. The communications plan should be part of the overall project management plan. d. The communications plan should include project forecasts and other technical information. ANS: B Because communication is so important on projects, every project should include a communications management plan—a document that guides project communications. This plan should be part of the overall project management plan. 13. An example of push communication is _____. a. meetings c. voice mails b. video conferencing d. blogs In push communication, information is sent or pushed to recipients without their request via reports, e-mails, faxes, voice mails, and other means. 14. An example of pull communication is _____. a. meetings c. voice mails b. video conferencing d. blogs In pull communication, Information is sent to recipients at their request via Web sites, bulletin boards, e-learning, knowledge repositories like blogs, and other means. 15. Which of the following is true of push communication? a. Information is sent only to recipients who request the information. c. Information is sent to recipients without their request. b. This method ensures that the information is understood by recipients. d. This method ensures that the information is received by the recipients. This method ensures that the information is distributed, but does not ensure that it was received or understood. 16. Which of the following communication methods would be most appropriate for assessing the commitment of project stakeholders? a. Wikis c. Web sites b. E-mail d. Meetings If you were trying to assess commitment of project stakeholders, a meeting would be the most appropriate medium to use. (A face-to-face meeting would be preferable, but a Web conference, in which participants could see and hear each other, would also qualify as a meeting.) A phone call would be adequate, but the other media would not be appropriate. 17. According to the guidelines provided by Practical Communications, Inc., a(n) _____ is a medium that is “excellent” for encouraging creative thinking. a. phone call c. meeting b. e-mail d. Web Site 18. According to the guidelines provided by Practical Communications, Inc., a(n) _____ is the most appropriate medium for giving complex instructions. a. phone call c. meeting b. e-mail d. Web Site 19. According to the guidelines provided by Practical Communications, Inc., a(n) _____ is the most inappropriate medium for addressing negative behavior. a. voice mail c. meeting b. e-mail d. Web Site 20. _____ address where the project stands in terms of meeting scope, time, and cost goals. a. Technical reports c. Progress reports b. Status reports d. Lessons-learned reports 21. ____ describe where the project stands at a specific point in time. a. Progress reports c. Forecasts b. Status reports d. Lessons-learned reports 22. ____ describe what the project team has accomplished during a certain period. a. Progress reports c. Forecasts b. Status reports d. Lessons-learned reports 23. ____ predict future project status and progress based on past information and trends. a. Progress reports c. Forecasts b. Status reports d. Project updates Forecasts predict future project status and progress based on past information and trends. How long will it take to finish the project based on how things are going? How much more money will be needed to complete the project? 24. Which of the following questions is typically addressed by a project forecast? a. How much more money will be needed to complete the project? c. Are our clients satisfied with the speed and quality of work on this project? b. Does the quality of output match our goals? d. How comfortable are employees with the software and technology being used on the project? 25. E-mail communication is most suited for: a. assessing commitment to a project. c. mediating a conflict between multiple parties. b. building consensus among disputing parties. d. communicating routine information. E-mail is not appropriate for assessing commitment, building consensus, mediating a conflict, resolving a misunderstanding, making an ironic statement, conveying a reference document, reinforcing one’s authority, or maintaining confidentiality. The same is true for instant messaging and other electronic communication tools. 26. A(n) _____ is a Web site that enables anyone who accesses it to contribute or modify Web page content. a. intranet b. blog c. forum d. wiki 27. The _____ line for any e-mail messages you write should clearly state the intention of the e-mail. a. to c. subject b. from d. cc 28. Which of the following is a guideline that project managers should follow when communicating with their teams through e-mail? a. Always reply to all the people to whom the initial message was sent. b. If the entire message can fit in the subject line, put it there. c. Minimize the total number of e-mails by including as many subjects as possible in a single e-mail. d. Continue replying to e-mail messages without changing the subject line to maintain continuity. One guideline for e-mail communication is not to continue replying to e-mail messages without changing the subject line. The subject should always relate to the latest correspondence. 29. The items discussed in a(n) _____ include reflections on whether project goals were met, whether the project was successful or not, the causes of variances on the project, the reasoning behind corrective actions chosen, the use of different project management tools and techniques, and personal words of wisdom based on team members’ experiences. a. final project report c. audit report b. design document d. lessons-learned report Some items discussed in lessons-learned reports include reflections on whether project goals were met, whether the project was successful or not, the causes of variances on the project, the reasoning behind corrective actions chosen, the use of different project management tools and techniques, and personal words of wisdom based on team members’ experiences. 30. _____ are a complete set of organized project records that provide an accurate history of the project. a. Project archives c. Project plans b. Forecasts d. Project notes Project archives are a complete set of organized project records that provide an accurate history of the project. These archives can provide valuable information for future projects as well. Chapter 11: Project Risk Management MULTIPLE CHOICE 1. Risk utility rises at a decreasing rate for a _____ person. a. risk-seeking c. risk-neutral b. risk-averse d. risk-indifferent Utility rises at a decreasing rate for a risk-averse person. In other words, when more payoff or money is at stake, a person or organization that is risk-averse gains less satisfaction from the risk, or has lower tolerance for the risk. 2. Those who are _____ have a higher tolerance for risk, and their satisfaction increases when more payoff is at stake. a. risk-seeking c. risk-neutral b. risk-averse d. risk-indifferent Those who are risk-seeking have a higher tolerance for risk, and their satisfaction increases when more payoff is at stake. A risk-seeking person prefers outcomes that are more uncertain and is often willing to pay a penalty to take risks. 3. A _____ person achieves a balance between risk and payoff. a. risk-seeking c. risk-fearing b. risk-averse d. risk-neutral A risk-neutral person achieves a balance between risk and payoff. This person would evaluate decisions using a number of factors—risk is just one of them. 4. _____ involves deciding how to approach and plan the risk management activities for the project. a. Identifying risks c. Performing qualitative risk analysis b. Planning risk management d. Performing quantitative risk analysis Planning risk management involves deciding how to approach and plan risk management activities for the project. 5. _____ involves determining which risks are likely to affect a project and documenting the characteristics of each. a. Identifying risks c. Performing qualitative risk analysis b. Planning risk management d. Performing quantitative risk analysis The main output of this process is the start of a risk register. 6. _____ involves prioritizing risks based on their probability and impact of occurrence. a. Performing qualitative risk analysis c. Planning risk responses b. Identifying risks d. Performing quantitative risk analysis Performing qualitative risk analysis involves prioritizing risks based on their probability and impact of occurrence. After identifying risks, project teams can use various tools and techniques to rank risks and update information in the risk register. 7. _____ involves numerically estimating the effects of risks on project objectives. a. Performing qualitative risk analysis c. Identifying risks b. Planning risk responses d. Performing quantitative risk analysis 8. _____ involves taking steps to enhance opportunities and reduce threats to meeting project objectives. a. Performing quantitative risk analysis c. Controlling risk b. Planning risk responses d. Performing qualitative risk analysis 9. _____ involves monitoring identified and residual risks, identifying new risks, carrying out risk response plans, and evaluating the effectiveness of risk strategies throughout the life of the project. a. Performing quantitative risk analysis c. Controlling risk b. Planning risk responses d. Performing qualitative risk analysis 10. Identifying risks is a subprocess of the _____ process of project risk management. a. planning c. monitoring and controlling b. executing d. closing 11. Performing qualitative and quantitative risk analyses are subprocesses of the _____ process of project risk management. a. planning c. monitoring and controlling b. executing d. closing 12. _____ are predefined actions that the project team will take if an identified risk event occurs. a. Secondary risks c. Contingency plans b. Workarounds d. Management reserves 13. Unenforceable conditions or contract clauses and adversarial relations are risk conditions associated with the project _____ management knowledge area. a. integration c. procurement b. quality d. human resources 14. _____ is a fact-finding technique that can be used for collecting information in face-to-face, phone, e-mail, or instant-messaging discussions. a. Brainstorming c. The Delphi technique b. Monte Carlo analysis d. Interviewing Interviewing people with similar project experience is an important tool for identifying potential risks. 15. A(n) _____ represents decision problems by displaying essential elements, including decisions, uncertainties, causality, and objectives, and how they influence each other. a. risk breakdown structure c. process flow chart b. influence diagram d. work breakdown structure 16. The _____ lists the relative probability of a risk occurring and the relative impact of the risk occurring. a. Top Ten Risk Item Tracking chart c. probability/impact matrix b. requirements traceability matrix d. expectations management matrix A project manager can chart the probability and impact of risks on a probability/impact matrix or chart, which lists the relative probability of a risk occurring and the relative impact of the risk occurring. 17. _____ are/is a qualitative risk analysis tool that maintains an awareness of risks throughout the life of a project in addition to identifying risks. a. SharePoint portal c. Expectations management matrix b. Probability/impact matrices or charts d. Top Ten Risk Item Tracking 18. A(n) _____ is a diagramming analysis technique used to help select the best course of action in situations in which future outcomes are uncertain. a. decision tree c. workaround b. activity-on-arrow d. backward pass 19. _____ analysis simulates a model’s outcome many times to provide a statistical distribution of the calculated results. a. Sensitivity c. Monte Carlo b. Systems d. NPV 20. What is the first step in a Monte Carlo analysis? a. Determine the probability distribution of each variable. b. For each variable, such as the time estimate for a task, select a random value based on the probability distribution for the occurrence of the variable. c. Assess the range for the variables being considered. d. Run a deterministic analysis or one pass through the model using the combination of values selected for each one of the variables. In other words, collect the most likely, optimistic, and pessimistic estimates for the variables in the model. 21. A _____ is a technique used to show the effects of changing one or more variables on an outcome. a. sensitivity analysis c. Monte Carlo analysis b. decision tree d. systems analysis 22. _____ involves eliminating a specific threat, usually by eliminating its causes. a. Risk avoidance c. Risk transference b. Risk acceptance d. Risk mitigation Risk avoidance involves eliminating a specific threat, usually by eliminating its causes. 23. _____ involves shifting the consequence of a risk and responsibility for its management to a third party. a. Risk avoidance c. Risk transference b. Risk acceptance d. Risk mitigation 24. _____ involves reducing the impact of a risk event by reducing the probability of its occurrence. a. Risk avoidance c. Risk transference b. Risk acceptance d. Risk mitigation 25. _____ involves doing whatever you can to make sure the positive risk happens. a. Risk exploitation c. Risk enhancement b. Risk sharing d. Risk acceptance 26. _____ involves allocating ownership of the risk to another party. a. Risk exploitation c. Risk enhancement b. Risk sharing d. Risk acceptance 27. _____ involves changing the size of the opportunity by identifying and maximizing key drivers of the positive risk. a. Risk exploitation c. Risk enhancement b. Risk sharing d. Risk acceptance 28. _____ applies to positive risks when the project team cannot or chooses not to take any actions toward a risk. a. Risk enhancement c. Risk sharing b. Risk acceptance d. Risk exploitation 29. _____ risks refer to those that are direct results of implementing risk responses. a. Architectural c. Residual b. Primary d. Secondary 30. _____ are unplanned responses to risk events used when project teams do not have contingency plans in place. a. Workarounds c. Contingency plans b. Fallback plans d. Triggers Chapter 12: Project Procurement Management MULTIPLE CHOICE 1. “A shortage of qualified personnel is one of the main reason that companies outsource. A project may require experts in a particular field for several months and planning for this procurement ensures that the needed services will be available for the project.” Which of the following benefits does this characteristic of outsourcing provide an organization? a. Reduces focus on its core business b. Increases control over all aspects of projects that suppliers carry out c. Provides access to specific skills d. Reduces dependency on suppliers Organizations can gain access to specific skills and technologies by using outside resources. 2. Outsourcing suppliers can often provide economies of scale, especially for hardware and software, that may not be available to the client alone. Which of the following benefits does this offer an organization? a. Reduction in fixed and recurrent costs b. Increased flexibility c. Increased accountability d. Access to specific skills Companies can use outsourcing to reduce labor costs on projects by avoiding the costs of hiring, firing, and reassigning people to projects or paying their salaries when they are between projects. Outsourcing suppliers often can provide economies of scale that may not be available to the client alone, especially for hardware and software. 3. “Most organizations are not in business to provide information technology services, yet many have spent valuable time and resources on information technology functions when they should have instead worked on important competencies such as marketing, customer service, and new product design. Outsourcing helps tackle this problem.” Which of the following benefits does outsourcing primarily provide in such a scenario? a. Reduces fixed and recurrent costs b. Protects strategic information from being accessible to external suppliers c. Increases accountability even without a written contract d. Helps focus on an organization’s core business By outsourcing many IT functions, employees can focus on jobs that are critical to the success of the organization. 4. “Outsourcing to provide extra workers during periods of peak workloads can be much more economical than trying to fill entire projects with internal resources.” Which of the following advantages does this characteristic of outsourcing provide organizations? a. Offers control over all aspects of projects that suppliers carry out b. Provides a company flexibility in staffing c. Shifts accountability from external suppliers to internal staff d. Helps avoid any form of dependency on suppliers Outsourcing to provide extra staff during periods of peak workloads can be much more economical than trying to staff entire projects with internal resources. Many companies cite better flexibility in staffing as a key reason for outsourcing. 5. A drawback of outsourcing is that: a. it does not provide access to specific skills or technologies. b. it invariably results in an increase in both fixed and recurrent costs. c. it can make an organization become overly dependent on particular suppliers. d. it cannot increase accountability of suppliers through a written contract. An organization can become too dependent on particular suppliers. If those suppliers went out of business or lost key personnel, it could cause great damage to a project. 6. The first step in project procurement management is: a. closing procurement management. c. conducting procurements. b. controlling procurements. d. planning procurement management. There are four main processes in project procurement management. The process of planning procurement management involves determining what to procure and when and how to do it. This is the first step of project procurement management. 7. In project procurement management, the process of _____ involves determining what to procure, when, and how. a. closing procurements c. conducting procurements b. controlling procurements d. planning procurement management The process of planning procurement management involves determining what to procure and when and how to do it. 8. In project procurement management, the process of _____ involves obtaining seller responses, selecting sellers, and awarding contracts. a. conducting procurements c. settling contracts b. closing procurements d. planning procurement management 9. Outputs of the _____ process consist of selected sellers and resource calendars. a. closing procurements c. planning procurement management b. conducting procurements d. controlling procurements Outputs include selected sellers, agreements, resource calendars, change requests, and updates to the project management plan and other project documents. 10. Which of the following processes of project procurement management involves managing relationships with sellers, monitoring contract performance, and making changes as needed? a. Closing procurements c. Deciding on the services to procure b. Settling contracts d. Controlling procurements 11. In project procurement management, which of the following processes involve completion and settlement of each contract, including resolution of any open items? a. Planning procurement management c. Closing procurements b. Controlling procurements d. Conducting procurements 12. The procurement statements of work are an output of the _____ process of project procurement management. a. planning c. monitoring and controlling b. executing d. closing 13. In project procurement management, the process of conducting procurements is part of the _____ process. a. planning c. monitoring and controlling b. executing d. closing 14. In project procurement management, which of the following is an output of the executing process? a. Make-or-buy decisions c. Source selection criteria b. Statements of work d. Resource calendars 15. In project procurement management, an output of the _____ monitoring and controlling process. a. Change requests c. Resource calendars b. Selected sellers d. Make-or-buy decisions 16. Which of the following is true of lump-sum contracts? a. They incur a high degree of risk for the buyer. c. They consist of a fee based on the satisfaction of subjective performance criteria. b. They involve a fixed total price for a well-defined product or service. d. They are also known as cost-reimbursable contracts. Fixed-price or lump-sum contracts involve a fixed total price for a well-defined product or service. The buyer incurs little risk in this situation because the price is predetermined. 17. _____ contracts involve payment to the supplier for direct and indirect actual costs and often include fees. a. Firm-fixed-price c. Cost-reimbursable contracts b. Lump sum d. Fixed-price incentive fee Such contracts often include fees, such as a profit percentage or incentives for meeting or exceeding selected project objectives. 18. In a(n) _____ contract, the buyer pays the supplier for allowable performance costs along with a predetermined fee and an incentive bonus. a. FFP c. CPPC b. CPIF d. FPIF In a cost plus incentive fee (CPIF) contract, the buyer pays the supplier for allowable performance costs along with a predetermined fee and an incentive bonus. 19. With a(n) _____ contract, the buyer pays the supplier for allowable performance costs plus a fixed fee payment usually based on a percentage of estimated costs. a. CPFF c. CPAF b. FPIF d. CPIF With a cost plus fixed fee (CPFF) contract, the buyer pays the supplier for allowable performance costs plus a fixed fee payment that is usually based on a percentage of estimated costs. This fee does not vary unless the scope of the contract changes. 20. In which of the following contracts does the buyer pay the supplier for allowable performance costs along with a predetermined percentage based on total costs? a. FPIF c. CPPC b. CPIF d. CPAF With a cost plus percentage of costs (CPPC) contract, the buyer pays the supplier for allowable performance costs along with a predetermined percentage based on total costs. 21. From the buyer’s perspective, the _____ is the least desirable among all contracts because the supplier has no incentive to decrease costs. a. CPIF c. CPAF b. CPFF d. CPPC With a cost plus percentage of costs (CPPC) contract, the buyer pays the supplier for allowable performance costs along with a predetermined percentage based on total costs. From the buyer’s perspective, this is the least desirable type of contract because the supplier has no incentive to decrease costs. 22. A(n) _____ contract carries the least risk for suppliers. a. CPPC c. CPAF b. FFP d. FP-EPA With a cost plus percentage of costs (CPPC) contract, the buyer pays the supplier for allowable performance costs along with a predetermined percentage based on total costs. From the supplier’s perspective, a CPPC contract carries the least risk. 23. The _____ is a description of the work required for a procurement. a. RFQ c. WBS b. RFP d. SOW The statement of work (SOW) is a description of the work required for a procurement. Some organizations use the term statement of work for a document that describes internal work as well. 24. A(n) _____ is a document used to solicit proposals from prospective suppliers. a. RFQ c. RFP b. WBS d. SOW A Request for Proposal (RFP) is a document used to solicit proposals from prospective suppliers. 25. A document used to solicit quotes or bids from prospective suppliers is known as a(n) _____. a. RFQ c. WBS b. RFP d. SOW A Request for Quote (RFQ) is a document used to solicit quotes or bids from prospective suppliers. 26. After planning for procurement management, which of the following does the next process involve? a. Determining the evaluation criteria for the contract award c. Using expert judgement in planning purchases and acquisitions b. Developing procurement statements of work d. Sending appropriate documentation to potential sellers After planning for procurement management, the next process involves deciding whom to ask to do the work, sending appropriate documentation to potential sellers, obtaining proposals or bids, selecting a seller, and awarding a contract. 27. In project procurement management, which of the following is one of the main outputs of the conducting procurement process? a. A selected seller c. A procurement statement of work b. A procurement management plan d. A closed procurement Two of the main outputs of the conducting procurement process are selected sellers and a procurement contract award. 28. The process of choosing suppliers or sellers is known as _____. a. source selection c. WBS b. a bid d. a change order Selecting suppliers or sellers is called source selection. The process involves evaluating proposals or bids from sellers, choosing the best one, negotiating the contract, and awarding the contract. 29. Which of the following is an output of the contract closure process? a. Procurement statements of work c. Resource calendars b. Updates to organizational process assets d. Work performance information Closed procurements and organizational process assets updates are outputs of the contract closure process. Chapter 13: Project Stakeholder Management MULTIPLE CHOICE 1. _____ is the new knowledge area identified by the Project Management Institute. a. Project stakeholder management c. Project risk management b. Project communication management d. Project procurement management Because stakeholder management is so important to project success, the Project Management Institute decided to create an entire knowledge area devoted to it as part of the Fifth Edition of the PMBOK Guide in 2012. 2. _____ involves determining everyone involved in the project or affected by it, and determining the best ways to manage relationships with them. a. Identifying stakeholders c. Managing stakeholder engagement b. Planning stakeholder management d. Controlling stakeholder engagement The main output of this process is a stakeholder register. 3. The main output of the _____ process is the stakeholder register. a. Planning stakeholder management c. Managing stakeholder engagement b. Identifying stakeholders d. Controlling stakeholder engagement Identifying stakeholders involves identifying everyone involved in the project or affected by it, and determining the best ways to manage relationships with them. The main output of this process is a stakeholder register. 4. One of the main outputs of the _____ process are the issue logs.. a. Planning stakeholder management c. Managing stakeholder engagement b. Identifying stakeholders d. Controlling stakeholder engagement 5. _____ involves monitoring stakeholder relationships and adjusting plans and strategies for engaging stakeholders as needed. a. Planning stakeholder management c. Managing stakeholder engagement b. Identifying stakeholders d. Controlling stakeholder engagement Controlling stakeholder engagement involves monitoring stakeholder relationships and adjusting plans and strategies for engaging stakeholders as needed. Outputs of this process are work performance information, change requests, project documents updates, and organizational process assets updates. 6. The stakeholder register is the output of the _____ process of project stakeholder management. a. initiating c. executing b. planning d. monitoring and controlling 7. Which of the following is true about identifying stakeholder? a. The project manager’s family is not a potential stakeholder. c. Stakeholders with indirect ties to the project need not be engaged with. b. It is not very difficult to identify stakeholders. d. Stakeholders do not change during a project It is also necessary to focus on stakeholders with the most direct ties to the project. For example, if you listed every single supplier for goods and services used on a project, you would be wasting precious time and resources. If a supplier is just providing an off-the-shelf product, it should need little if any attention. 8. Doctors who have been co-opted to actively participate in a project related to using information technology for chronic health problems would be examples of _____ stakeholders. a. supportive c. resistant b. leading d. neutral Leading stakeholders are aware of the project and its potential impacts and actively engaged in helping it succeed. 9. The project team must take corrective action if stakeholders with high interest and high power are categorized as _____. a. resistant c. supportive b. neutral d. leading 10. The project team must take corrective action if stakeholders with _____ are categorized as resistant or unaware. a. high interest/low power c. low interest/ low power b. high interest and high power d. low interest/high power 11. The project team must take corrective action if stakeholders with _____ are categorized as resistant or unaware. a. high interest/low power c. low interest/ low power b. high interest and high power d. low interest/high power 12. After identifying and analyzing stakeholders, the project manager and team should develop a(n)______ to help them effectively engage stakeholders and make sure that good decisions are made throughout the life of the project. a. stakeholder management plan c. issue log b. stakeholder register d. power/interest grid After identifying and analyzing stakeholders, the project manager and team should develop a stakeholder management plan to help them effectively engage stakeholders and make sure that good decisions are made throughout the life of the project. 13. Scope, time and cost goals in order of importance can be ranked on a(n) _____. a. requirements traceability matrix c. responsibility assignment matrix b. expectations management matrix d. probability matrix Project sponsors can usually rank scope, time, and cost goals in order of importance and provide guidelines on how to balance the triple constraint. This ranking can be shown in an expectations management matrix, which can help clarify expectations. 14. A(n) _____ is a tool used to document, monitor, and track problems that need resolution. a. requirements traceability matrix c. power/interest grid b. Gantt chart d. issue log