Exam 1

What are the components that differentiate a project from operational work? A. A unique goal, temporary endeavor, and a budget B. A unique goal, temporary endeavor, dedicated resources C. A unique goal, deadline, specific objectives D. Specific requirements, set start and finish date, budgets

A. A unique goal, temporary endeavor, and a budget.

Which of the following skills is not crucial for a project manager to possess? A. Accounting B. Business expertise C. Leadership D. Interpersonal skills

A. Accounting

The project manager is in the process of meeting with various people who are impacted by his new project. He is attempting to find out what their needs are for the project as well as any constraints and assumptions that they might be aware of. At the same time, the project manager is beginning to set expectations for the project. Which of the following is the best description of this? A. Stakeholder management B. Stakeholder identification C. Change control board D. Team member analysis

A. Stakeholder management

As part of a project to increase revenues from construction co lending, a financial services company is reviewing an in-process construction loan for the development of an office and shopping complex just north of a rapidly expanding suburb. The manager is adept at taking an exploit approach to risks and points out an opportunity to the functional manager. Of the following, which is the best example of an exploit type of risk response strategy the finance company could take in connection with this project? A. The finance company could purchase 100 acres of land abutting the development land based on its projections that the area will appreciate in value upon completion of the project. B. The finance company could sell information about prospective tenants to marketing firms. C. The finance company could charge every fee and interest penalty in its aresenal. D. The finance company could delay construction loan payouts so they can continue to earn interest on that money.

A. The finance company could purchase 100 acres of land abutting the development land based on its projections that the area will appreciate in value upon completion of the project.

What is project risk?

An uncertain event or condition that, if it occurs, has an effect on at least one project objective.

A new call center is being built to support a new product at a national telephone company. The company doesn't have any data on how long it will take to sign up customers via the call center. This data is important because it will help determine the number of employees needed in the call center. The company performs some tests to try to determine how long it will take to sign up customers. This test data is then incorporated into the projections planning. What has the company just created? A. Team development B. Assumptions C. Constraints D. Staff acquisition

B. Assumptions

The construction team is building a new design for their company and the market for the product is extremely unstable because of current interest rates. According to the site manager, a key to success will be to have an extremely accurate estimate of the resource needs for the project, especially because the company is resource constrained. Which type of duration estimating approach is the most accurate? A. Analogous estimating B. Bottom-up estimating C. Fast tracking D. Parametric estimating

B. Bottom-up estimating

During the Identify Risk Process, the project manager and the team categorize risks in an effort to determine risks they may have missed. Of the following, which is the best example of risk categories? A. Initiating, planning, executing, monitoring and controlling closing B. External, internal, technology, personnel C. Quality, schedule, budget D. Scope, time, cost

B. External, internal, technology, personnel

Using the original network diagram question, what is the slack of Activity F? A. Two days B. One day C. Four days D. Not enough information

B. One day

When creating a project management plan, which of the following is the best choice to create it? A. Project manager B. Project manager and team C. Team D. Sponsor

B. Project management and team

There is $150,000 allocated for management reserves. One of the stakeholders is a newly hired vice president who comes from a small company where project management was not formalized, so he is unfamiliar with this term. The project manager explains the specific reason for which management reserves are created. Of the following, what is the reason? A. Project risk events that do occur with a cumulative cost greater than the amount set aside in contingency reserves. B. Project risk events that cannot logically be forecasted. C. Project risk events you know can occur D. Project risk events that do occur with a cumulative cost greater than the amount set aside in management reserves.

B. Project risk events that cannot logically be forecasted.

To ensure that all the project work is considered, the project manager and his team create a bottom-up estimate. Of the following, which is not an advantage of creating such an estimate? A. The estimate provides supporting detail B. The estimate takes a great amount of time to create C. The estimate has a greater degree of accuracy than other estimates because of the detail. D. The estimate provides team buy-in since the team is involved in its creation.

B. The estimate takes a great amount of time to create.

The management team is calculating the cost range for a project to develop a product that targets an unfamiliar market. What is the key principal that governs the cost range tolerance? A. -50 percent to +50 percent B. The less known, the wider the range C. The more known, the wider the range D. The earlier in the project, the narrower the range

B. The less known, the wider the range

Executing process

Coordinating people and other resources to carry out the plan.

The team is in the process of completing the work breakdown structure of the project. Once they have completed this, which of the following can they begin to work on A. Estimating activity durations B. Estimating costs C. Developing schedule D. All of the answers

D. All of the answers

You are the project manager on a defense project and are creating a network diagram. Activity A (7 days) and Activity B (12 days) can start immediately. Activity C (3 days) can start after Activity A is complete. Activity D (4 days) and Activity F (3 days) can start after Activity B is complete. Activity E (5 days) can start after Activity C and Activity D are complete. Activity G (6 days) can start after Activity D and Activity F are complete. When Activity E and Activity G are complete, the project is done. What is the critical path? A. BDE B. ACE C. BFG D. BDG

D. BDG

In the original network diagram question, if Activity D increases from four to five days, what is the critical path, and what is the length? A. BDE, 33 days B. ACE, 15 days C. BFG, 21 days D. BDG, 23 days

D. BDG, 23 days

Planning process

Devising and maintaining a workable scheme to accomplish the business needs the project was undertaken to address.

Controlling process

Ensuring that project objectives are met by monitoring and measuring progress and taking corrective action when necessary.

Various approaches to project estimating

Expert Judgement Analogous Parametric RFP Bottom-up

T/F: Because project management has always focused on budget, schedule, and meeting specifications it is a discipline that has consistently delivered business value by building the right products.

False

T/F: If your project only uses internal salaried employees you can consider their efforts free to the project.

False

T/F: The Lean Startup is an approach that eliminates waste so it is best used on known problems where optimizing existing processes is most important.

False

Risk assessment

Identification of the possibility for loss due to an event and an estimate of its effect.

Management reserve

Money available for changing project scope

Contingency reserve

Money held to pay for predictable but unspecified extra costs.

Parametric

Use cost-per-unit and unit usage to multiply and find cost

Analogous

Use similar products to estimate yours

Risk mitigation plan

Plan to reduce or eliminate loss from unexpected events.

Different roles on a project

Project manager Operational manager Process manager Functional manager Stakeholders

RFP

RFP document has a cost proposal from a client

Initiating process

Recognizing that a project or phase should begin and committing to do so.

Expert judgment

Rely on advice from experienced professionals

What is the purpose of milestones?

An important point in a project without duration or resources. Establishes key dates throughout the duration of the project.

What is a project?

An initiative that has a specific purpose, creates specific results, has a definite start and end date, and is temporary

How do project management and quality management complement each other? A. Both focus on continuous improvement, management responsibility, customer satisfaction, and prevention over inspection. B. Both focus on prevention over inspection, continuous improvement, management responsibility, and product excellence. C. Both focus on fulfillment of requirements, management responsibility, prevention over inspection, continuous improvement, and customer satisfaction. D. Both focus on management responsibility, fulfillment of requirements, continuous improvement, product excellence, and prevention over inspection.

A. Both focus on continuous improvement, management responsibility, customer satisfaction, and prevention over inspection.

You are assigned to a new data warehouse project and notice in the charter that there are four business units listed as sponsors. The data warehouse system has been discussed at your organization for some time, but it's everyone's first exposure to implementing one. Which of the following could present the biggest challenge on the project? A. Conflicting goals of the sponsors B. The implementation team C. The work breakdown structure (WBS) D. Integrated change control

A. Conflicting goals of the sponsors

The project team has just started planning as a result of the charter being signed. Of the following, which does the charter not provide? A. Defines the scope statement B. Gives the project existence C. Outlines the project manager's authority D. Contains or makes reference to the product description

A. Defines the scope statement

A project that you manage is behind schedule. You have identified an approach that would get the project back on track, but it would require you to break one of your organization's policies. What is the best course of action? A. Determine if the rule is one that can be broken and come up with a plan of action if your approach doesn't work. B. Inform the management team that there is no way to shorten the schedule given your constraints. C. Move forward with your plan because you can ask for forgiveness later. D. Ask the management team for permission to break the rule.

A. Determine if the rule is one that can be broken and come up with a plan of action if your approach doesn't work.

The project to provide an organizational restructuring of the company to increase operational efficiency and provide clearer lines of communication and development opportunities for managers has been initiated. During the planning processes, the project manager is determining the milestones. Of following what is a key element of a milestone definition? A. It has a duration of zero (0) B. It has value in the project charter but not in the plan. C. It defines a phase of the project D. It has a duration of one day

A. It has a duration of zero (0)

The project manager and the functional manager at the pharmaceutical company are having a discussion about the project to create a system to produce antibiotic and intravenous injection vials. The functional manager continually brings the discussion back to the costs of running the system and the length of time the system will be viable. Of the following, what best describes the functional manager's primary focus? A. Product life cycle B. Program management life cycle C. Project life cycle D. Project management life cycle

A. Product life cycle

Slack/Float

Amount of time an activity can be delayed from an early start without delaying the completion date.

The project manager is creating an estimate for building a warehouse and distribution center. It is a project similar to those he executes about three times a year. He is using the rule of thumb per square foot to calculate the estimate. What type of estimate is this? A. Bottom-up B. Analogous C. Parametric D. Gut feel

C. Parametric

The Inter-State bank has approved the project to replace its legacy system with a web-based interface and SQL database. It will use cross-functional work teams to accomplish the planning and testing. Which of the following is the most accurate description of a cross-functional work team? A. A team comprised of participants that have been trained to work in more than one department. B. A team comprised of participants that understand computer concepts and are experts in their fields. C. A team comprised of participants from all groups across the company. D. A team comprised of participants that are adept in the performance of multiple functions.

C. A team comprised of participants fro all groups across the company.

Of the following, which is the most comprehensive definition of a project? A. An environment created to deliver a product, service, or result. B. A collaborative enterprise that delivers a product, service, or result. C. An initiative that has a specific purpose, creates specific results, has a definite start and end date, and is temporary. D. An initiative that has a specific purpose, creates specific results, and is temporary in nature.

C. An initiative that has a specific purpose, creates specific results, has a definite start and end date, and is temporary.

The project manager always involves the team in the creation of the work breakdown structure. What is the most significant benefit derived from this approach? A. Generation of a more accurate budget B. Establishment of the project manager's authority C. Buy-in from the team doing the work D. Generation of a more accurate schedule

C. Buy-in from the team doing the work

What can a responsibility matrix eliminate? A. Confusion about how long the tasks are B. Confusion about who is on the team C. Confusion about who is responsible for doing what D. Confusion about what order tasks come in

C. Confusion about who is responsible for doing what

Your organization runs numerous projects and wants to choose the most appropriate resources for each project team. Which of the following is the best tool for identifying project resources? A. Scheduling software B. A spreadsheet program C. Enterprise project management software D. A collaboration tool

C. Enterprise project management software

Of the following, which is not an example of a project interacting with operations? A. Retooling a factory to increase production efficiency. B. Opening a new call center. C. Increasing rose bouquet production in anticipation of Mother's Day demand. D. Preparing the document center to utilize new imaging hardware and software.

C. Increasing rose bouquet production in anticipation of Mother's Day demand.

To determine the float, which formula should you use? A. Late finish-early finish (LF - EF) or late finish-late start (LF - LS) B. Late start-early start (LS - ES) or late finish-late start (LF - LS) C. Late finish-early finish (LF - EF) or late start-early start (LS - ES) D. Late start-early start (LS - ES) or early finish-early start (EF - ES)

C. Late finish-early finish (LF - EF) or late start-early start (LS - ES)

An Internet project is about 65 percent complete and has had its challenges. As of the last status report, it appears to be on track regarding cost, schedule, and scope. Senior management tells you that the sponsor has some serious concerns about the project. You don't understand why, based on the last status report. What would be the best thing to do first? A. Evaluate the schedule and budget to verify the triple constraint health of the project. B. Tell senior management that the project is in good shape. C. Meet with the sponsor and find out what the sponsor's concerns are. D. Ignore senior management, as the project is in good shape.

C. Meet with the sponsor and find out what the sponsor's concerns are.

The project to develop a proprietary custom support system for a major mortgage company is underway. This is the largest project E-TEK has ever undertaken and E-TEK is concerned about possible liability due to failure to meet the schedule or to perform the work in accordance with the agreement. E-TEK responds to these concerns by obtaining Professional Liability Insurance. Of the following, what best describes the type of risk response represented by this response? A. Risk avoidance, which avoids negative risk by taking actions to prevent it. B. Risk acceptance, which accepts negative risk and has a plan to deal with it if it occurs. C. Risk transference, which avoids negative risk by transferring or reassigning responsibilities. D. Risk mitigation, which mitigates negative risk by taking actions to lessen its impact.

C. Risk transference, which avoids negative risk by transferring or reassigning responsibilities.

The pharmaceutical company is in the planning stages of a critical project and the project management team is finalizing the responsibility assignment matrix. How will this document benefit the team? A. The team will know who does what work and when they are to do it B. The team will know the sequence in which the resources are to perform the activities C. The team will know who is responsible for what work D. The team will know the location in which the work is performed

C. The team will know who is responsible for what work.

The customer has just attended the weekly staff meeting for the infrastructure project and has stated that the market is changing for the product being created. As a result of this, the customer has requested a significant change to the project. The project is 85 percent complete. What does the project manager do? A. Make the new work a new project and release the project as is to market. B. Tell the customer the project is too close to being complete to integrate the change. C. Ignore the customer, hoping the change will disappear. D. Evaluate the impact to the project and let the customer know the options and the impact of the change.

D. Evaluate the impact to the project and let the customer know the options and impact of the change.

During the _____ project management process group, you, as project manager, orient your team members to the project and the parts they play in it. A. Monitoring and controlling B. Initiating C. Planning D. Executing

D. Executing

The team has had five meetings to decompose the work of the aircraft carrier project. They are making progress and in a few more meetings should have all the decomposition complete for the year project. Which of the following is not a benefit of using a WBS? A. Provides the justification for staff, cost, and time B. Helps the project team understand their role and buy-in on project C. Describes the deliverables of the project D. Identifies special work packages that can be created outside the WBS, but within the project

D. Identifies special work packages that can be created outside the WBS, but within the project

Of the following, which is the most comprehensive definition of project risk? A. Risk is a positive event that may or may not occur B. Risk is a negative event that may or may not occur C. Risk is a positive or negative event that may or may not have occurred. D. Risk is a positive or negative event that may or may not occur.

D. Risk is a positive or negative event that may or may not occur.

Both Chapter 1 and Chapter 6 identified crucial factors for success. Which of the following was NOT listed as one of the success factors? A. Management support B. Agreement on the goals of the project C. Control over the scope of the project D. Selecting a qualified project manager

D. Selecting a qualified project manager

In a situation where there is a well-defined goal and clear requirements which project management approach should be applied? A. Lean startup B. An agile approach C. An iterative approach D. Traditional / Waterfall approach

D. Traditional / Waterfall approach

Project phases

Initiating Planning Executing Controlling Closing

Closing process

Formalizing acceptance of the project or phase and bringing it to an orderly end.

Scope Creep

Incremental expansion of the project scope without formal approval

Approaches to reducing project risk

Risk assessment Risk mitigation plan

What is the triple constraint?

Time Scope Cost