Sample Chapter

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Project Management In Practice 6th Edition by Jack R. Meredith – Test Bank

 

 

Sample  Questions

 

Chapter 1: The World of Project Management
True/False

 

1.         A primary purpose of forming projects is to assign the responsibility for accomplishing some organizational task to a specific person or small group.
Answer: True
Response: See section1.1

Level: easy

 

 

 

  1. One of the few similarities between project management and general management is that both exist in the well-defined organizational structure of superior/subordinates in the overall organization.

 

Answer: False

Response: See section1.2

Level: medium

 

 

 

  1. Many recent developments in project management are being driven by changes in the nature of the American workforce.

 

Answer: False

Response: See section1.1

Level: medium

 

 

 

  1. There has been a growing use of projects to achieve an organization’s strategic goals

 

Answer: True

Response: See section1.1

Level: medium

 

 

 

  1. While general managers have their authority limited to specific areas in the overall organization, project managers have authority over any activity required by the project.

 

Answer: False

Response: See section1.2

Level: medium

 

 

 

  1. Projects are always carried out under conditions of uncertainty.

 

Answer: True

Response: See section1.3

Level: easy

 

 

 

  1. One can trade-off time and cost when managing a project, but the project’s technical specifications must be maintained exactly as the client initially specifies.

 

Answer: False

Response: See section1.3

Level: medium

 

 

 

  1. Nonnumeric project selection methods are only suitable if numeric methods are not available.

 

Answer: False

Response: See section1.5

Level: medium

 

 

  1. When using financial methods for selecting projects, the payback period is the simplest and best method to use.

 

Answer: False

Response: See section1.5

Level: medium

 

 

 

10        Rank-ordering a large number of projects can be done with a Q-sort.

 

Answer: True

Response: See section1.5

Level: medium

 

 

 

  1. A disadvantage of using the payback period method for selecting projects is that it cannot reflect the time-value of money.

 

Answer: True

Response: See section1.5

Level: medium

 

 

 

 

  1. A disadvantage of using the discounted cash flow method (or net present value) for selecting projects is that it ignores all non-monetary factors associated with the project except risk.

 

Answer: True

Response: See section1.5

Level: medium

 

 

 

  1. A disadvantage of using scoring models rather than financial models for selecting projects is that they cannot include the project’s profitability.

 

Answer: False

Response: See section1.5

Level: medium

 

 

 

  1. A PM doesnot need to understand why a project is selected for funding because he didnot initiate the process.

 

Answer: False

Response: See section1.5

Level: medium

 

 

 

  1. The main distinction between platform and breakthrough projects is that the former usually depend on existing technology.

 

Answer: True

Response: See section1.6

Level: medium

 

 

 

  1. The main distinction between platform and derivative projects is that the latter depend on existing technology.

 

Answer: False

Response: See section1.6

Level: medium

 

 

 

 

 

 

  1. One reason for the emphasis on project management is that tasks fit neatly into business-as-usual.

 

Answer: False

Response: See section1.1

Level: easy

 

 

 

  1. Programs are subdivisions of projects.

 

Answer: False

Response: See section1.1

Level: easy

 

 

 

  1. Projects are subdivisions of programs.

 

Answer: True

Response: See section1.1

Level: easy

 

 

 

  1. A similarity between project management and general management is the tendency to “manage by exception.”

 

Answer: False

Response: See section1.2

Level: medium

 

 

 

  1. Project budgets are primarily modifications of budgets for the same activity in the previous period.

 

Answer: False

Response: See section1.2

Level: medium

 

 

  1. In project management, superior-subordinate relationships are known and lines of authority are clear.

 

Answer: False

Response: See section1.2

Level: medium

 

 

 

  1. Having responsibility for the outcome of a project without the authority of rank or position is common in project management.

 

Answer: True

Response: See section1.2

Level: medium

 

 

 

  1. Negotiating the purchase of a new car would typically be characterized as win-win negotiation.

 

Answer: False

Response: See section1.2

Level: medium

 

 

 

  1. In project management, it is often necessary to trade-off one objective for another.

 

Answer: True

Response: See section1.3

Level: easy

 

 

 

 

 

  1. A project that is selected because it is necessary for continued operations exemplifies a sacred cow.

 

Answer: False

Response: See section1.5

Level: medium

 

 

 

  1. The comparative benefits method is considered a nonnumeric project selection method.

 

Answer: True

Response: See section1.5

Level: medium

 

 

 

  1. When using the weighted scoring model, the categories for each scale must be in equal intervals.

 

Answer: False

Response: See section1.5

Level: medium

 

 

 

  1. Scoring methods were developed to overcome some of the disadvantages of simple financial profitability methods.

 

Answer: True

Response: See section1.5

Level: medium

 

 

 

  1. One limitation of scoring methods is that they can only incorporate quantitative data.

 

Answer: False

Response: See section1.5

Level: medium

 

 

 

  1. As a rule of thumb, the number of factors included in a scoring model should be at least 10.

 

Answer: False

Response: See section1.5

Level: medium

 

 

 

  1. Projects success is not determined by the portfolio of projects in an organization.

 

Answer: False

Response: See section1.6

Level: medium

 

 

 

  1. R&D projects are oriented toward using newly developed technologies or existing technologies in a new manner.

 

Answer: True

Response: See section1.6

Level: medium

 

 

 

  1. Projects with deliverables that are incrementally different from existing offerings are classified as platform projects.

 

Answer: False

Response: See section1.6

Level: medium

 

 

 

  1. The project manager depends on legitimate authority to gain the cooperation of the many departments in the organization that may be asked to supply technology, information, resources and personnel to the project.

Answer: False

Response: See section1.2

Level: medium

 

 

  1. In the early years of a project when outflows usually exceed inflows, the NPV of the project for those years will be positive.

Answer: False

Response: See section1.5

Level: medium

 

 

 

 

Multiple Choice

 

 

 

 

  1. Which of the following is not a trend in project management?
  2. a) achieving strategic goals
  3. b) improving project effectiveness
  4. c) quasi projects
  5. d) reductive projects
  6. e) achieving routine goals

 

Answer: d

Response: See section1.1

Level: medium

 

 

 

  1. Which of the following criteria can be included in scoring models for selecting projects?
  2. a) potential profitability of the project
  3. b) potential impact on the firm’s competitive position
  4. c) the organization’s ability to market the output of a project
  5. d) All of the above can be included
  6. e) only a and b above

 

Answer: d

Response: See section1.5

Level: medium

 

 

 

  1. If the initial investment is a project is $100,000 and the expected annual net profit for the project is $20,000, the payback period is:
  2. a) One fifth of a year
  3. b) 4 years
  4. c) 5 years
  5. d) 10 years
  6. e) insufficient information to determine the payback period

 

Answer: c

Response: See section1.5

Level: medium

 

 

 

  1. Which of the following is not a characteristic of a project?
  2. a) They are unique
  3. b) They are routine
  4. c) They have specific due date
  5. d) They have a specific deliverable
  6. e) They have a purpose

 

Answer: b

Response: See section1.1

Level: medium

 

 

 

 

 

  1. “Blue Sky” projects are
  2. a) R & D projects
  3. b) Platform projects
  4. c) Breakthrough projects
  5. d) Derivative projects
  6. e) High risk projects

 

Answer: a

Response: See section1.6

Level: medium

 

 

 

  1. Searching for the third alternative is most closely associated with
  2. a) win-win negotiation
  3. b) project planning
  4. c) project budgeting
  5. d) the three goals of a project
  6. e) the weighted scoring model

 

Answer: a

Response: See section1.2

Level: medium

 

 

 

  1. Which of the following is not related to the three goals of a project?
  2. a) time
  3. b) data
  4. c) schedule
  5. d) cost
  6. e) performance

 

Answer: b

Response: See section1.3

Level: medium

 

 

 

  1. Projects that begin with a slow start, have quick momentum in the middle, and have a slow finish are said to follow which type of lifecycle?
  2. a) J-shaped lifecycle
  3. b) L-shaped lifecycle
  4. c) an exponential growth lifecycle
  5. d) an S-shaped lifecycle
  6. e) an X-shaped lifecycle

 

Answer: d

Response: See section1.4

Level: medium

 

 

 

  1. Which of the following is a numeric project selection method?
  2. a) comparative benefits
  3. b) payback period
  4. c) Q-sort method
  5. d) operating/competitive necessity
  6. e) sacred cow

 

Answer: b

Response: See section1.5

Level: medium

 

 

 

  1. A matrix that illustrates the magnitude of both product and process changes resulting from a project is called
  2. a) the aggregate project plan
  3. b) the product-process matrix
  4. c) the aggregate master production schedule
  5. d) the balanced scorecard
  6. e) the R&D project portfolio

 

Answer: a

Response: See section1.6

Level: medium

 

 

 

  1. The ________________________ attempts to link the organization’s projects directly to the goals and strategy of the organization.
  2. a) the product-process matrix
  3. b) the balanced scorecard
  4. c) the action plan
  5. d) project portfolio process
  6. e) the work breakdown structure

 

Answer: d

Response: See section1.6

Level: medium

 

 

  1. Rebus Inc., a game development company, had gained critical success with its video game Authority Online a year ago. The game’s publisher wanted Rebus to undertake a project to revitalize the game’s salesby updating the graphics and releasing it for a new platform. This type of project is an example of a(n) _____.
  2. a) derivative project
  3. b) R&D project
  4. c) platform project
  5. d) breakthrough project
  6. e) sacred cow project

 

Answer: a

Response: See section 1.6

Level: difficult

 

 

  1. Ultor is a media company that specializes in creating print advertisements for local businesses. Lately, it has been undertaking requests for multimedia projects that are new to it. In this scenario, Ultor is most likely accepting _____.
  2. a) derivative projects
  3. b) R&D projects
  4. c) platform projects
  5. d) breakthrough projects
  6. e) sacred cow projects

 

Answer: c

Response: See section 1.6

Level: difficult

 

  1. RestrumCorp. is a company that delivers lunch to working professionals through delivery drivers. It has recently undertaken a project that will allow it to use drones to deliver meals to its customers. Restrum’s new project can be categorized asa(n) _____.
  2. a) derivative project
  3. b) R&D project
  4. c) blue-sky project
  5. d) breakthrough project
  6. e) sacred cow project

 

Answer: d

Response: See section 1.6

Level: difficult

 

 

  1. Alchemax Inc. is looking to undertake a project that requires an initial fixed investment of $200,000 and is expected to return a net cash inflow of $50,000 each year. The payback period for this project will be _____ years.
  2. a) 2
  3. b) 7
  4. c) 4
  5. d) 9
  6. e) 5

 

Answer: c

Response: See section1.5

Level: difficult

 

 

  1. Ouroboros Construction started the construction of a house for a client. The initial planning of the project took longer than expected. Once plans were finalized, it did not take long to erect the structure, and it was done much before schedule. However, it took a lot of time to give the finishing touches to the house, and it was a long time before the house was completed. The project in this scenario has a(n) _____.
  2. a) J-shaped life cycle
  3. b) X-shaped life cycle
  4. c) S-shaped life cycle
  5. d) L-shaped life cycle
  6. e) O-shaped life cycle

 

Answer: c

Response: See section 1.5

Level: difficult

 

 

  1. OmicoreSoftworks, a software development firm,undertook a projectthat involved developinga bespoke accounting software for a firm. The project initiated with the project manager spending some time to identify the correct resources. Once this was done, the process of writing the program began. Most of the time was spent on debugging and ensuring that the software worked to the client’s specification.The project in this scenario has a(n) _____.
  2. a) J-shaped life cycle
  3. b) X-shaped life cycle
  4. c) S-shaped life cycle
  5. d) L-shaped life cycle
  6. e) O-shaped life cycle

 

Answer: a

Response: See section 1.5

Level: difficult

 

 

54        Baketolife, asmall bakery that specializes in wedding cakes, undertook a project that required the creation of a large five-tier cake. While the mixture for the cake was easy to make and took less than half a day to prepare, the size of the cake meant that a lot of time was spent ensuring that each cake was cooked all the way through.The project in this scenario has a(n) _____.

  1. a) L-shaped life cycle
  2. b) X-shaped life cycle
  3. c) S-shaped life cycle
  4. d) J-shaped life cycle
  5. e) O-shaped life cycle

 

Answer: d

Response: See section 1.5

Level: difficult

 

 

  1. Which of the following is an example of win-lose negotiation?
  2. a) Buying a car from a second-hand car dealershipat the asking price.
  3. b) Discussing a problem with all parties concerned and finding a middle ground
  4. c) Carrying on an argument over a petty issue that can be easily resolved
  5. d) Agreeing to share resources for the benefit of all involved in different projects
  6. e) Disagreeing with a project idea while not providing an alternative

 

Answer: a

Response: See section1.2

Level: difficult

 

 

  1. Which of the following is an example of win-win negotiation?
  2. a) Buying a car from a second-hand car dealership at the asking price
  3. b) Forcibly using resources allocated to another department
  4. c) Keeping resources that could be used by another team busy in unnecessary tasks
  5. d) Agreeing to share resources for the benefit of all involved in different projects
  6. e) Carrying on an argument over a petty issue that can be easily resolved

 

Answer: d

Response: See section 1.2

Level: difficult

 

 

  1. Which of the following is an example of lose-lose negotiation?
  2. a) Buying a car from a second-hand car dealership at the asking price
  3. b) Taking time off from a project to help another team
  4. c) Disagreeing with a project idea while not providing an alternative
  5. d) Agreeing to share resources for the benefit of all involved in a project
  6. e) Discussing a problem with all parties concerned and finding a middle ground

 

Answer: c

Response: See section 1.2

Level: difficult

 

 

 

Short Answer

 

  1. Briefly explain what a project is.

 

Answer: A projectis a temporary endeavor undertaken to create a unique product or service. It is specific, timely, usually multidisciplinary, and typically conflict ridden. Projects are parts of overall programs and may be broken down into tasks, subtasks, and further if desired. Current trends in project management include achieving strategic goals, achieving routine goals, improving project effectiveness, virtual projects, and quasi-projects.

Response: See section 1.1

Level: medium

 

 

  1. What are the major trends in project management?

 

Answer: Many recent developments in project management are being driven by quickly changing global markets, technology, and education. The most important of these recent developments are covered below.

 

Achieving Strategic Goals: There has been a growing use of projects to achieve an organization’s strategic goals, and existing major projects are screened to make sure that their objectives support the organization’s strategy and mission. Projects that do not have clear ties to the strategy and mission are not approved.

 

PMOs for Improving Project Effectiveness: A variety of efforts are being pursued to improve the process and results of project management, whether strategic or routine. These efforts are typically being led by a formal Project Management Office that provides training in project management skills and techniques such as the use of phase gates, agile management, earned value, critical ratios, and other such approaches; continually evaluates and helps improve the organization’s project management “maturity”; educates project managers about the evolving ancillary goals of the organization; and generally helps oversee the organization’s portfolio of programs and projects.

 

Virtual Projects: With the rapid increase in the globalization of industry, many projects now involve global teams whose members operate in different countries and different time zones, each bringing a unique set of talents to the project. These are known as virtual projects because the team members may never physically meet before the team is disbanded and another team is reconstituted. Advanced telecommunications and computer technology allow such virtual projects to be created,and helps team members complete their work and projects successfully.

 

Quasi-Projects: Led by the demands of the information technology/systems departments, project management is being extended into areas where the project’s objectives are not well understood, time deadlines unknown, and/or budgets undetermined. This ill-defined type of project is extremely difficult to conduct and to date has often resulted in setting an artificial due date and budget, and then specifying project objectives to meet those limits. However, new tools for these quasi-projects are now being developed—agile management, prototyping, phase-gating, and others—to help these projects achieve results that satisfy the customer in spite of the unknowns.

Response: See section 1.1

Level: medium

 

 

  1. To what extent can the three goals of a project be traded-off for one another?

 

Answer: The two primary roles of a project manager (PM) are to manage trade-offs among three interrelated objectives and to manage risks. The three interrelated objectives are: (1) meet the budget, (2) finish on schedule, and (3) generate deliverables that satisfy the client. Since we live in an uncertain world, as work on the project proceeds, unexpected problems are bound to arise. These chance events will threaten the project’s schedule, budget or scope. The PM must then decide how to trade off one project goal against another (e.g., to stay on schedule by assigning extra resources to the project may mean it will run over the predetermined budget). If the schedule, budget, and scope are rigidly predetermined, the project is probably doomed to failure unless the preset schedule and budget are overly generous or the difficulty in meeting the specifications has been seriously overestimated.

Response: See section 1.3

Level: medium

 

 

  1. Briefly highlight the difference between win-win and win-lose negotiation strategies.

 

Answer: In win-win negotiation, both parties must try to understand what the other party needs. The problem one faces as a negotiator is how to help other parties meet their needs in return for their help in meeting the needs of one’s project.

When negotiation takes place repeatedly between the same individuals, win-win negotiation is the only sensible procedure.When one negotiates the purchase of a car or a home, one is usually engaging in win-lose negotiation. The less one pays for a home or car, the less profit the seller makes. This is an example of win-lose negotiation. This type of negotiation is never appropriate when dealing with other members of one’s organization.

Response: See section 1.2

Level: medium

 

 

  1. Why is having a negotiation skill in win-win negotiation necessary for a project manager?

 

Answer: Within an organization, win-win negotiation is mandatory. In essence, in win-win negotiation, both parties must try to understand what the other party needs. The problem one face as a negotiator is how to help other parties meet their needs in return for their help in meeting the needs of one’s project. When negotiation takes place repeatedly between the same individuals, win-win negotiation is the only sensible procedure. Project managers spend a great deal of their time negotiating, while general managers spend relatively little. Win-win negotiating skills isrequired for successful project management.

Response: See section 1.2

Level: medium

 

 

  1. Briefly describe each of the three fundamental goals of a project.

 

Answer: The performance of a project, commonly called its “efficiency,” is assessed on the basis of three criteria, variously known as the “triple constraints,” the “iron triangle,” the “golden constraints,” etc. Is the project on time or early? Is the project on or under budget? Does the project deliver the scope to the agreed-upon specifications? The performance of the project and the project manager is measured by the degree to which these goals are achieved.

Response: See section 1.3

Level: medium

 

 

  1. Briefly describe the two different life cycles of projects.

 

Answer: A house-building project starts slowly with a lot of discussion and planning. Then construction begins, and progress is rapid. When the house is built, but not finished inside, progress appears to slow down and it seemingly takes forever to finish paintingthe house, to finish all the trim, and to assemble and install the built-in appliances. Progress is slow-fast-slow. It used to be thought that the S-shaped curve represented the life cycle for all projects. While this is true of many projects, there are important exceptions. Anyone who has baked a cake has dealt with a project that approaches completion through a very different route than the traditional S-curve.The process of baking a cake is straightforward. The ingredients are mixed while the oven is preheated, usually to 350°F. The mixture (technically called “goop”) is placed in a greased pan, inserted in the oven, and the baking process begins. Assume the finished cake requires about 15 to 45 minutes for assembling materials and mixing and 30 minutes for the cake to bake. At the end of 15 minutes we have cake mix. Even after 40 minutes, having baked for 25 minutes, the cake may still be soft on the inside. In the last few minutes of the process, the cake is finally cooked. If left a few minutes too long after that in the oven, the cake will begin to burn atits base. The project of cooking a cake follows a J-shaped path to completion where initial steps and goals can be achieved quickly, but needs to be carefully watched at the end to ensure it isn’t a disaster.

Response: See section 1.4

Level: medium

 

 

  1. Explain what the third alternative is in negotiation.

 

Answer: Successful win-win negotiation often involves taking a synergistic approach by searching for the “third alternative.” For example, consider a product development project focusing on the development of a new printer. A design engineer working on the project suggests adding more memory to the printer. The project manager(PM) initially opposes this suggestion, feeling that the added memory will make the printer too costly. Rather than rejecting the suggestion, however, the PM tries to gain a better understanding of the design engineer’s concern. Based on their discussion, the PM learns that the engineer’s purpose of requesting additional memory is to increase the printer’s speed. After benchmarking the competition, the design engineer feels that the printer will not be competitive as it is currently configured. The PM explains his fear that adding the extra memory will increase the cost of the printer to the point that it also will no longer be cost competitive. Based on this discussion, the design engineer and PM agree that they need to search for another (third) alternative that will increase the printer’s speed without increasing its costs. A couple of days later, the design engineer identifies a new ink that can simultaneously increase the printer’s speed and actually lower its total and operating costs.

Response: See section 1.2

Level: medium

 

 

  1. Briefly explain the advantages of using scoring models to evaluate and select projects rather than using financial models.

 

Answer: Financial assessment methods of project selection ignore all nonmonetary factors except risk. Also, because of the nature of discounting, all the discounted methods of selection bias the selection system by favoring short-run projects.

Scoring methods were developed to overcome some of thedisadvantages of the simple financial profitability methods, especially their focuson a single criterion. The simplest scoring approach, the unweighted 0–1 factormethod, lists multiple criteria of significant interest to management. Given a listof the organization’s goals, a selection committee that usually comprises senior managers familiarwith both the organization’s criteria and potential project portfolio, check offwhich of the criteria would be satisfied with respect to each project.Those projects that exceed a certain number of criteria may be selected forfunding.

Response: See section 1.5

Level: medium

 

 

  1. Briefly explain the project portfolio process.

 

Answer: The Project Portfolio Process (PPP) attempts to link an organization’s projects directly to the goals and strategies of the organization. This occurs not only in the project’s initiation and planning phases, but also throughout the life cycle of the projects as they are managed and eventually brought to completion. Thus, the PPP is also a means to monitor and control the organization’s strategic projects. On occasion, this will mean shutting down projects prior to their completion because their risks have become excessive, their costs have escalated beyond their expected benefits, another (or a new) project does a better job of supporting the goals, or any of a variety of similar reasons.

Response: See section 1.6

Level: medium

 

 

Chapter 3: Planning the Project

 

True/False

 

  1. Defining resource needs is not necessary on small projects.

 

Answer: False

Response: See section3.1

Level: medium

 

 

 

  1. A representative of senior management should be invited to the project launch meeting.

 

Answer: True

Response: See section 3.3

Level: medium

 

 

 

  1. The primary purpose of the launch meeting is to develop the project plan and budget.

 

Answer: False

Response: See section 3.3

Level: medium

 

 

 

  1. The initial project meeting is just to coordinate the project, so areas of responsibility do not need to be discussed.

 

Answer: False

Response: See section 3.3

Level: medium

 

 

 

  1. The project plan should begin with a complete description of all agreements made with the client or any third party.

 

Answer: False

Response: See section 3.1

Level: medium

 

 

 

  1. As a rule of thumb, the lowest level tasks in a typical project should not take longer than two days to complete.

 

Answer: False

Response: See section 3.3

Level: medium

 

 

 

  1. The start and finish date of a project must be specified before the action plan can be completed.

 

Answer: False

Response: See section 3.4

Level: medium

 

 

 

  1. It is acceptable to restrict the launch meeting to brainstorming a problem.

 

Answer: True

Response: See section 3.3

Level: medium

 

 

 

  1. It is not possible to overdo it when it comes to project planning.

 

Answer: False

Response: See section 3.1

Level: medium

 

 

 

  1. Predecessors must be listed in the WBS because they are critical for scheduling.

 

Answer: True

Response: See section 3.3

Level: easy

 

 

 

  1. Lack of planning is a major contributor to project’s failure.

 

Answer: True

Response: See section 3.1

Level: medium

 

 

 

  1. You can depict who is responsible for a task on a RACI.

 

Answer: True

Response: See section 3.4

Level: medium

 

 

 

  1. RACI stands for remove all cost information.

 

Answer: False

Response: See section 3.4

Level: medium

 

 

 

  1. Taken together the RACI and the Work Breakdown Structure may be used to determine the importance of each task listed.

 

Answer: False

Response: See section 3.4

Level: medium

 

 

 

  1. The salary requirements of human resources are a required element in the project plan.

 

Answer: False

Response: See section 3.4

Level: medium

 

 

 

  1. The work breakdown structure is one way to separate project activities by their level of importance.

 

Answer: False

Response: See section 3.4

Level: medium

 

 

 

 

  1. The RACI matrix is a tool to organize the cost in your project plan.

 

Answer: False

Response: See section 3.4

Level: medium

 

 

 

 

  1. A limitation of traditional project management planning tools is that they do not address the flow of information.

 

Answer: True

Response: See section 3.4

Level: medium

 

 

 

  1. The letters used in the RACI matrix help link a person and a task for accountability purposes.

 

Answer: true

Response: See section 3.4

Level: medium

 

 

 

  1. Mind mapping is a whole-brain approach that is particularly applicable to project management.

 

Answer: True

Response: See section 3.4

Level: easy

 

 

 

  1. One of the problems with mind mapping is that it is relatively difficult to convert into work breakdown structure (WBS).

 

Answer: False

Response: See section 3.4

Level: medium

 

 

 

  1. The design structure matrix can be used to identify potential rework situations due to the flow of information in a project.

 

Answer: True

Response: See section 3.4

Level: Medium

 

 

 

  1. While the design structure matrix can help identify potential rework situations, typically nothing can be done to avoid them.

 

Answer: False

Response: See section 3.4

Level: medium

 

 

 

 

  1. The project baseline plan is the open, honest, and frequent communication between the interested parties of a project.

 

Answer: True

Response: see section 3.3

Level: medium

 

 

 

  1. The project manager can plan at all levels of the project.

 

Answer: False

Response: see page 85

Level: medium

 

 

  1. Mind mapping is a planning tool.

 

Answer: true

Response: See section 3.4

Level: medium

 

 

 

Multiple Choice

 

27.       The results of the launch meeting include:

a) finalizing the project team

b) finalizing the project’s schedule

c) finalizing the project’s budget

d) the project’s scope is understood

  1. e) selecting the project champion

 

Answer: d

Response: See section 3.3

Level: medium

 

28.       Marcus is asked by higher management to create a document that provides a high level description of a project that has not yet been approved. The document should describe the major deliverables of the project and should provide the financial and strategic justification for the project. In this scenario, Marcus needs to prepare a_____.

a) project baseline

b) RACI matrix

c) work breakdown structure

d) project charter

  1. e) contingency plan

 

Answer: d

Response: See section 3.1

Level: difficult

 

 

 

29.       Renee, a project manager, is responsible for developing a project plan for her new project. To do so, she needs to consider all the tasks that would need to be done to produce the deliverable and make a list of them. In this scenario, Renee needs to prepare a(n) _____ for the project.

a) FMEAchart

b) RACI Matrix

c) work breakdown structure

d) project charter

  1. e) contingency plan

 

Answer: c

Response: See section 3.3

Level: difficult

 

30.       Duncan, a project manager, has to create a work breakdown structure (WBS) for a new project. He gathers the project team and provides them with a pad of sticky-notes. After defining the project objectives and the major activities that would need to be done to achieve those objectives, he asks his team members to write all the tasks that they think would be required to complete the project on the sticky-notes. These notes are then stuck on a wall in a sequential manner. In this scenario, Duncan uses a(n) _____ to create the WBS.

a) FMEA chart

b) Langley histogram

c) projectbaseline

d) Gozinto chart

  1. e) RACI matrix

 

Answer: d

Response: See section 3.3

Level: difficult

31.       Suzanne, a human resources manager in an event management company, is assigned the task of arranging a farewell dinner for the CEO of the company. She uses Microsoft Project (MSP) to create a work breakdown structure list for this task. The MSP creates a list of Level 1 tasks, Level 2 tasks, and so on. Suzanne then adds appropriate descriptions to each task. While doing so, Suzanne should ensure that:

a) the generality of each task is roughly at the same level.

b) each task takes the same amount of time.

c) each task requires the same amount of resources.

d) the level of employee knowledge required for each task is roughly the same.

  1. e) each task covers multiple objectives of the project.

 

Answer: a

Response: See section 3.3

Level: difficult

 

 

32.       Robert, a project manager, created a work breakdown structure (WBS) for his new project. He then used the data from the WBS to create a table that assigned responsibilities to each team member and helped organize the project team. In this scenario, Robert created a(n)_____.

a) Failure Mode and Effect Analysis (FMEA) chart

b) RACI Matrix

c) Langley histogram

d) Gozinto chart

e)contingency plan

 

Answer: b

Response: See section 3.4

Level: difficult

 

 

 

33.       Imelda, a professor of management studies, wants to organize a collaborative project with her students to help them understand various aspects of marketing. She writes down the project goal in a circle in the center of a large sheet of paper. She and her students then brainstorm to identify the tasks that must be done to achieve the goal. She asks the students to write each task in a circle on the sheet and draw lines connecting the various circles. In this scenario, Imelda is using a process called _____.

a) Failure Mode and Effect Analysis (FMEA)

b) RACI matrix

c) hierarchal planning

d) mind mapping

  1. e) contingencyanalysis

 

Answer: d

Response: See section 3.4

Level: difficult

 

 

 

34.       Roger is a scientist who is developing a new drug to cure cancer. He lists five possible ways in which the drug might fail. He ranks the severity of the consequences of each failure, the likelihood of each failure’s occurrence, and the ease of detection of each failure on a scale of 1 to 10. In the context of Failure Mode and Effect Analysis, which of the following failures has the highest Risk Priority Number (RPN)?

a) Failure one with a severity of 4, a likelihood of 4, and an ease of detection of 7

b) Failure two with a severity of 7, a likelihood of 5, and an ease of detection of 2

c) Failure three with a severity of 8, a likelihood of 4, and an ease of detection of 4

d) Failure four with a severity of 5, a likelihood of 5, and an ease of detection of 6

  1. e) Failurefive with a severityof 2, a likelihood of 4, and an ease of detection of 7

 

Answer: d

Response: See section 3.5

Level: difficult

 

 

 

35.       Sharon, a project manager, is working on a new project with a team of six members. She allocates work to each member who then works independently. The members are asked to refrain from experimentation and rigidly follow the project scope. Sharon coordinates the work of the members and provides them with feedback confidentially. The given scenario exemplifies the use of _____.

a) Agile Project Management

b) the traditional waterfall approach to project management

c) the Responsible-Accountable-Consult-Informed Matrix

d) aGozinto chart

  1. e) mind mapping

 

Answer: a

Response: See section 3.4

Level: difficult

 

 

 

36.       Janet, a project manager, receives a complex marketing project. She needs to make sure that the client receives regular updates about the project and that the project team is flexible enough to accommodate any changes in the project scope. She also needs to ensure that feedback is provided at the completion of each project milestone. In this scenario, Janet should use _____ to plan the project.

a) a Langley histogram

b) alogic chart

c) arisk profile

d) systems engineering

e) Agile Project Management (APM)

 

Answer: e

Response: See section 3.4

Level: difficult

 

 

 

37.       The manager of a project causes a catastrophic failure in the project that threatens the timely delivery of the project. Frank, another project manager, is asked to take over. He initiates a backup plan created by him, and he takes critical steps to recover from the setback and salvage the project. In this scenario, Frank is most likely usinga(n) _____.

a) Langley histogram

b) logic chart

c) risk profile

d) FMEA chart

e) RACI matrix

 

Answer: b

Response: See section 3.5

Level: difficult

 

 

 

  1. What is the primary purpose of creating a work breakdown structure?
  2. a) to draw the project plan as a chart or tree
  3. b) to make sure important tasks are identified
  4. c) so that all team members can see what others are working on
  5. d) to assign budget numbers to tasks
  6. e) tomake sure team members can communicate effectively

 

Answer: b

Response: See section 3.3

Level: medium

 

 

 

  1. Which of the following is used to show linkages between people and tasks?
  2. a) thework breakdown structure
  3. b) theRACI
  4. c) the Project Action Plan
  5. d) the Project Resource Diagram
  6. e) the Concurrent Engineering Chart

 

Answer: b

Response: See section 3.4

Level: medium

 

 

 

 

 

  1. Which of the following is not a category in the RACI matrix?
  2. a) Responsible
  3. b) Interpret
  4. c) Accountable
  5. d) Consult
  6. e) Inform

 

Answer: b

Response: See section 3.4

Level: medium

 

 

 

  1. The first task of a newly appointed project manager is
  2. a) to negotiate the project’s budget
  3. b) to negotiate with functional managers for key resources

c)to develop a work breakdown structure for the project

  1. d) to review the project objectives with senior management
  2. e) to develop a linear responsibility chart for the project

 

Answer: d

Response: See section 3.3

Level: medium

 

 

 

  1. A(n) __________________ shows the set of all tasks in a project arranged by task level?
  2. a) RACI Matrix
  3. b) Work Breakdown Structure
  4. c) Gantt chart
  5. d) Design Structure Matrix
  6. e) Aggregate Project Portfolio

 

Answer: b

Response: See section 3.4

Level: easy

 

 

 

  1. According to the text, the use of sticky-notes can be particularly useful for constructing a(n)
  2. a) RACI matrix
  3. b) Work Breakdown Structure
  4. c) Gantt chart
  5. d) Design Structure Matrix
  6. e) Aggregate Project Portfolio

 

Answer: b

Response: See section 3.3

Level: medium

 

 

 

  1. In order to prepare a mind map, you need to start with:
  2. a) the maximum allowable cost of the project
  3. b) a definition of role of the working professional programs (WPPs)
  4. c) a means of evaluating the results
  5. d) the most detailed tasks
  6. e) a statement of the project’s objectives

 

Answer: e

Response: See section 3.4

Level: easy

 

 

 

 

  1. Entries above the diagonal in the Design Structure Matrix indicate
  2. a) tasks that need to be shortened
  3. b) tasks that have no resources assigned to them
  4. c) tasks that are on the critical path
  5. d) potential rework situations
  6. e) tasks with no predecessors

 

Answer: d

Response: See section 3.4

 

Level: medium

 

 

 

  1. In the Design Structure Matrix
  2. a) the rows correspond to tasks and the columns correspond to resources
  3. b) both the rows and columns correspond to tasks
  4. c) the rows correspond to tasks and the columns correspond to functional departments
  5. d) the rows correspond to resources and the columns correspond to tasks
  6. e) the rows correspond to resources and the columns correspond to functional

departments

 

Answer: b

Response: See section 3.4

Level: medium

 

  1. FMEA stands for
  2. a) Financial Methods and Efficiency Analysis
  3. b) Failure Modes and Effect Analysis
  4. c) Full Monetary Expenditure Accrual
  5. d) Financial Measurement of Expenses Accrued
  6. e) Factor Mode and Efficiency Analysis

 

Answer: b

Response: See section 3.5

Level: medium

 

 

 

  1. Which of the following is most closely associated with FMEA?
  2. a) risk priority number
  3. b) game theory
  4. c) expected value
  5. d) simulation
  6. e) program budgeting

 

Answer: a

Response: See section 3.5

Level: medium

 

 

 

  1. Which of the following is not a sub-process associated with risk management?
  2. a) risk identification
  3. b) risk measurement
  4. c) qualitative risk analysis
  5. d) quantitative risk analysis
  6. e) risk response planning

 

Answer: b

Response: See section 3.5

Level: medium

 

 

 

Short Answer

 

  1. What is the primary function of a project plan?

 

Answer: The project planning process begins with the development of a project charter—a high level description of the project. While the elements of the project charter vary from organization to organization, they should always include a statement of work and the business case for the project. Once the project charter is approved, the project is considered to be officially authorized and work on developing a more detailed project plan can commence. While the project charter provides a high level description of the project, the project plan defines in greater detail the project work that must be completed. More specifically, the project plan details how the work of the project will be executed, monitored, and controlled. As such, the project plan includes detailed descriptions of the work that needs to be completed, how the work will be executed, the approval process for changes to the plan, and plans for communicating with the stakeholders. In its final form, the project plan brings together all project related planning documents.

Response: See section 3.1

Level: medium

 

 

  1. List some of the results of the project launch meeting.

 

Answer: The results of the project launch meeting should be: (1) the project’s scope is understoodand temporarily fixed; (2) the various functional managers or team members understand theirresponsibilities and have committed to develop an initial task and resource plan; (3) any potential benefits to the organization outside the scope of the project are noted.

Response: See section 3.3

Level: medium

 

 

  1. Define hierarchical planning.

 

Answer: Hierarchical planning is used to develop a project plan that will take us from start to finish of a project. One needs to know precisely what must be done, by whom, when, and with what resources. Every task, however small, that must be completed in order to complete the project should be listed together with any required material or human resources.

Response: See section 3.3

Level: medium

 

 

  1. Explain the process of developing a WBS.

 

Answer: To develop a work breakdown structure (WBS) for a project, one must start with the project’s objective(s). The planner, often the project manager, makes a list of the major activities that must be completed to achieve the objective(s). The list may be as short as two or three activities, or as large as 20. These are called Level 1 activities. The planner then takes each Level 1 activity and delegates it to an individual or functional group. The project manager might delegate one or more Level 1 tasks to him- or herself. The delegate deals with the task as if it is itself a project and makes a plan to accomplish it; that is, he or she lists a specific set of Level 2 tasks required to complete each Level 1 task. Again, the breakdown typically runs between 5 and 15 tasks, but a few more or less does not matter. The process continues. For each Level 2 task, someone or some group is delegated responsibility to prepare an action plan of Level 3 subtasks. The procedure of successively decomposing larger tasks into their component parts continues until the lowest level subtasks are sufficiently understood so that there is no reason to continue. As a rule of thumb, the lowest level tasks in a typical project will have a duration of a few hours to a few days. If the team is quite familiar with the work, longer durations are acceptable for the lowest level tasks.

Another simple approach to creating the WBS begins by gathering the projectteam together and providing each member with a pad of sticky-notes. After defining the project’s objectives, and Level 1 tasks, team members then write on the sticky-notes all the tasks they can think of that are required to complete the project. The sticky-notes can then be placed on the wall and arranged in various ways. One advantage of this approach is that it provides the entire team with a better understanding of the work needed to complete the project. The fact that it is a cooperative exercise also helps the project team to bond. Finally, this exercise can generate a WBS tree.

Response: See section 3.3

Level: medium

 

 

  1. What are the key concepts behind mind mapping?

 

Answer: Mind mapping is essentially a visual approach that closely mirrors how the human brain records and stores information. In addition to its visual nature, another key advantage associated with mind mapping is that it helps tap the creative potential of the entire project team, which, in turn, helps increase both the quantity and quality of ideas generated. Because project team members tend to find mind mapping entertaining, it also helps generate enthusiasm, helps get buy-in from team members, and often gets quieter team members more involved in the planning process.

Response: See section 3.4

Level: medium

 

 

 

  1. 55. Explain how to construct a Design Structure Matrix.

 

Answer: To address the issue of information flows, Steven Eppinger, a professor at MIT’s Sloan School of Management, proposes the development and use of a Design Structure Matrix (DSM). The first step in developing a DSM is to identify all the project’s tasks and list them in the order in which they are typically carried out. This list of tasks makes up both the rows and columns of the DSM. Next, moving across one row at a time, all tasks that supply information to the task being evaluated are noted. When the DSM is completed, all the tasks that provide information that is needed to complete a given task can be determined by looking across that particular task’s row. Likewise, moving down a particular task’s column shows all the other tasks that depend on it for information.

Response: See section 3.4

Level: medium

 

 

  1. 56. What are some options for eliminating potential rework situations when they are discovered in the Design Structure Matrix?

 

Answer: A key benefit of constructing a Design Structure Matrix (DSM) is the ability to quickly identify and better understand how information is needed. It can also highlight potential information flow problems even before the project is begun. There are a couple of actions that can be taken to minimize or even eliminate potential rework situations. One option is to investigate whether the sequence of the project activities can be changed so that the potential rework situations are moved below the diagonal. Another option is to investigate ways to complete additional activities concurrently. This latter option is a bit more complex and may necessitate changing the physical location of where the tasks are completed.

Response: See section 3.4

Level: medium