Final Project Management
budgetary 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.
A cost estimation tool which is used to allocate money into an organization's budget is known as a _____ estimate. budgetary definitive rough order of magnitude ballpark
False Top management grants authority to the project manager. However, assignment, budget, promotion, money, and penalty influence bases are not automatically available to project managers as part of their position.
Assignment, budget, promotion, money, and penalty influence bases are automatically available to project managers as part of their position. (T/F)
True Project managers must understand and work with various stakeholders; therefore, they should specifically address how to use various communications methods and their interpersonal and management skills to engage stakeholders.
Communication and interpersonal skills are important for successful project stakeholder management. (T/F)
True Estimates are usually done at various stages of a project and should become more accurate as time progresses.
Estimates should become more accurate as time progresses. (T/F)
False Geographic location and cultural background affect the complexity of project communications. If project stakeholders are in different countries, it is often difficult or impossible to schedule times for two-way communication during normal working hours.
Geographic location and cultural background have no impact on communications. (T/F)
False Intangible costs or benefits are difficult to measure in monetary terms. Conversely, tangible costs or benefits can easily be measured in dollars.
Intangible costs can be easily measured in monetary terms. (T/F)
True Issues should be documented in an issue log, a tool used to document, monitor, and track issues that need resolution. Though the PMI now lists issue logs as a tool for stakeholder management, even though they can address issues related to other knowledge areas.
Issue logs can be used to address issues related to other knowledge areas like project scope management or project quality management. (T/F)
True Make-or-buy analysis involves estimating the internal costs of providing a product or service and comparing the estimate to the cost of outsourcing.
Make-or-buy analysis involves comparing the internal costs of providing a product with the cost of outsourcing. (T/F)
False 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.
Managers who believe in Theory Y assume that workers dislike and avoid work if possible, so managers must use coercion, threats, and various control schemes to get workers to make adequate efforts to meet objectives. (T/F)
True The receiver of information rarely interprets it exactly as the sender intended. Therefore, it is important to provide several methods of communication, such as written words, visuals, videos, and meetings, and an environment that promotes open dialogue.
Rarely does the receiver interpret a message exactly as the sender intended. (T/F)
True Monte Carlo analysis simulates a model's outcome many times to provide a statistical distribution of the calculated results. This analysis can predict the probability of finishing by a certain date or the probability that the cost will be equal to or less than a certain value.
The Monte Carlo analysis can predict the probability of finishing by a certain date or the probability that the cost will be equal to or less than a certain value. (T/F)
managing changes to the project budget. 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.
The process of controlling costs primarily involves: determining the policies for project costs. managing changes to the project budget. finalising the procedures for project costs. determining a basis for estimates.
monitoring and controlling Validated changes and validated deliverables are the outputs of the monitoring and controlling subprocess of the quality control process of project quality management.
Validated changes and validated deliverables are the outputs of the _____ subprocess of project quality management. initiating closing monitoring and controlling executing
True In general, a cost management plan includes level of accuracy, organizational procedures links, process descriptions, control thresholds, and rules of performance measurement, among others.
A cost management plan can include organizational procedures links, control thresholds, and process descriptions. (T/F)
True It is often beneficial to have a facilitator from outside the project team assess how well communications are working. A facilitator can also help the team solve any communication problems.
A facilitator can help the team solve any communication problems. (T/F)
True Three broad categories of contracts are fixed price or lump sum, cost reimbursable, and time and material. A single contract can include all three of these categories if it makes sense for a particular procurement.
A single contract can include all three categories of contracts. (T/F)
RFP A Request for Proposal (RFP) is a document used to solicit proposals from prospective suppliers.
A(n) _____ is a document used to solicit proposals from prospective suppliers. RFQ WBS RFP SOW
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.
According to Blake and Mouton, project managers who use the _____ method use a give-and take-approach to resolving conflicts. smoothing forcing confrontation compromise
False According to Herzberg, motivators such as larger salaries, more supervision, or a more attractive work environment would motivate workers to do more if present.He referred to factors that cause job satisfaction as motivators and factors that could cause dissatisfaction as hygiene factors.
According to Herzberg, hygiene factors such as larger salaries, more supervision, or a more attractive work environment would motivate workers to do more if present. (T/F)
True Many top managers think they can just add more people to a project that is falling behind schedule. Unfortunately, this approach often causes more setbacks because of the increased complexity of communications.
Adding more people to a project that is falling behind schedule often causes more setbacks because of the increased complexity of communications. (T/F)
True The procurement management plan is a document that describes how the procurement processes will be managed. Like other project plans, contents of the procurement management plan will vary with project needs.
Contents of the procurement management plan vary with project needs. (T/F)
False Quality planning also involves communicating the correct actions for ensuring quality in a format that is understandable and complete. In quality planning for projects, it is important to describe key factors that directly contribute to meeting the customer's requirements.
Customer requirements are an important aspect of the quality planning process. (T/F)
False DeMarco and Lister also found no correlation between productivity and programming language, years of experience, or salary. Furthermore, the study showed that providing a dedicated workspace and a quiet work environment were key factors in improving productivity.
DeMarco and Lister's study on organizations and productivity found direct correlations between productivity and programming language, years of experience, and salary. (T/F)
True Determining the budget involves allocating the project cost estimate to individual material resources or work items over time. These material resources or work items are based onthe activities in the work breakdown structure for the project.
Determining the budget involves allocating the project cost estimate to individual work items over time. (T/F)
sunk 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.
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. recurring direct sunk intangible
True Most members of a company's executive board have a better understanding of financial terms than IT terms, and are more interested in finance. Therefore, IT project managers need to be able to present and discuss project information both in financial terms and technical terms.
IT project managers must be able to present and discuss project information both in financial and technical terms. (T/F)
True Communicating badly exponentially increases the possibility of making fatal mistakes. A large-scale project has a lot of moving parts, which makes it that much easier to break down. Communication is the oil that keeps everything working properly.
In a project, communicating badly exponentially increases the possibility of making mistakes. (T/F)
False Overrun is the additional percentage or dollar amount by which actual costs exceed estimates.
Overrun is the additional percentage amount by which estimates exceed actual costs. (T/F)
True Procurement audits are often done during contract closure to identify lessons learned in the entire procurement process. Organizations should strive to improve all of their business processes, including procurement management.
Procurement audits are often done during contract closure to identify lessons learned in the entire procurement process. (T/F)
True Acceptance decisions determine if the products or services produced as part of the project will be accepted or rejected. If they are accepted, they are considered to be validated deliverables.
Products that are accepted by project stakeholders are considered to be validated deliverables. (T/F)
False Project managers must also realize that not all conflict is bad. Conflict often produces important results, such as new ideas, better alternatives, and motivation to work harder andmore collaboratively.
Project managers must try to avoid conflict at all costs as all conflict within groups is bad. (T/F)
False There are four main processes in project procurement management. These consist of planning procurement management, conducting procurements, controlling procurements, and closing procurements.
Project procurement management consists primarily of two processes: assessing procurements and controlling procurements.
False Reliability is the ability of a product or service to perform as expected under normal conditions.
Reliability is the ability of a product or service to perform as expected under deviant conditions. (T/F)
58 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.
Research has indicated that in a face-to-face interaction, _____ percent of information is through body language. 58 35 7 75
True A key factor in evaluating bids, particularly for projects involving IT, is the past performance record of the bidder. Reviewing performance records and references reduces the risk of selecting a supplier with a poor track record.
Reviewing performance records reduces the risk of selecting a supplier with a poor track record. (T/F)
False The risk register and the stakeholder register are inputs for the planning procurement process. Other inputs needed for planning procurements include the project management plan, requirements documentation, activity resource requirements, the project schedule, and activity cost estimates, among others.
Risk registers and stakeholder registers are outputs of the planning procurement process. (T/F)
True Performing quality assurance involves periodically evaluating overall project performance to ensure that the project will satisfy the relevant quality standards. The quality assurance process involves taking responsibility for quality throughout the project's life cycle.
The quality assurance process involves taking responsibility for quality throughout the project's life cycle. (T/F)
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.
Which of the following involves developing an approximation of the costs of resources needed to complete a project? Determining the budget Finalising the cost baseline Controlling costs Estimating costs
Pareto 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.
_____ help users to identify the vital few contributors that account for most quality problems in a system. Gantt charts Pareto charts Control charts Tracking Gantt charts
False Project managers should strive to use a win/win approach in making decisions, but in competitive situations they sometimes must use a win/lose paradigm.
According to Covey, project managers must use a win/lose approach in making decisions. (T/F)
unit test A unit test is done to test each individual component (often a program) to ensure that it is as defect-free as possible. Unit tests are performed before moving on to the integration test.
A(n) _____ is done to test each individual component (often a program) to ensure that it is as defect-free as possible. integration test unit test user acceptance test system test
Call Phil in for a private meeting to appreciate his work. 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.
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? Call Phil in for a private meeting to appreciate his work. Call a team meeting to praise Phil for his work on the project. Announce Phil's accomplishment on the company Web site. Have top management and the other teams in the company award Phil.
False 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. Communication becomes more complex as you increase team size.
Communication becomes simpler when you increase the number of team members. (T/F)
True Contingency plans are predefined actions that the project team will take if an identified risk event occurs.
Contingency plans are predefined actions that the project team will take if an identified risk event occurs. (T/F)
executing Conducting procurements is part of the executing process of project procurement management. It involves obtaining seller responses, selecting sellers, and awarding contracts.
In project procurement management, the process of conducting procurements is part of the _____ process. planning executing monitoring and controlling closing
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.
In the Tuckman model, _____ occurs as team members have different opinions as to how the team should operate. performing norming forming storming
True In the Tuckman model, 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.
In the Tuckman model, storming occurs when team members have different opinions for how the team should operate. (T/F)
True Project communication management involves the inclusion of detailed technical information that affects critical performance features of products or services developed in a project. It is even more important to document any changes in technical specifications that might affect product performance.
It is extremely important to document any changes in technical specifications that might affect product performance. (T/F)
True Maslow's hierarchy of needs states that people's behaviors are guided or motivated by a sequence of needs.
Maslow's hierarchy of needs states that people's behaviors are guided or motivated by a sequence of needs. (T/F)
False Minutes should be short and focus on the crucial decisions and action items from the meeting.
Minutes must be a comprehensive report of the meeting that was scheduled. (T/F)
True Information about the content of essential project communications comes from the work breakdown structure (WBS). In fact, many WBSs include a section for project communications to ensure that reporting key information is a project deliverable.
Most WBSs include a section for project communications to ensure that reporting key information is a project deliverable. (T/F)
probability/impact 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.
The _____ lists the relative probability of a risk occurring and the relative impact of the risk occurring. Top Ten Risk Item Tracking chart requirements traceability matrix probability/impact matrix expectations management matrix
True Because communication is so important on projects, every project should include a communications management plan—a document that guides project communications. The communications management plan varies with the needs of the project.
The communications management plan varies with the needs of the project. (T/F)
True Controlling procurements ensures that the seller's performance meets contractual requirements. The contractual relationship is a legal relationship, which means it is subject to state and federal contract laws.
The contractual relationship is a legal relationship, which means it is subject to state and federal contract laws. (T/F)
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.
The first step in project procurement management is: closing procurement management. controlling procurements. conducting procurements. planning procurement management.
False 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.
The main output of the identifying stakeholders process is the project charter. (T/F)
True The main sections of an RFP usually include its statement of purpose, background information on the organization issuing the RFP, the basic requirements for the products and services being proposed, and the hardware and software environment.
The main sections of an RFP can include the statement of work and schedule information. (T/F)
False The main output of the planning cost management process process is a cost management plan. Planning cost management involves determining the policies, procedures, and documentation that will be used for planning, executing, and controlling project cost.
The primary output of the planning cost management process is a change request. (T/F)
source selection 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.
The process of choosing suppliers or sellers is known as _____. source selection a bid WBS a change order
True The project management plan, project funding requirements, work performance data, and organizational process assets are inputs for controlling costs.
The project management plan and project funding requirements are inputs of the process of controlling costs (T/F)
The communications plan should be part of the overall project management plan. 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.
Which of the following is true of a project communications plan? The communications plan within an organization does not vary from project to project. The communications plan should be part of the overall project management plan. The communications plan should never be part of the team contract, but should always be a separate document. The communications plan should include project forecasts and other technical information.
They are time-intensive and expensive to develop. Bottom-up estimates involve estimating the costs of individual work items or activities and summing them to get a project total. The drawback with bottom-up estimates is that they are usually time-intensive and therefore expensive to develop.
Which of the following is true of bottom-up estimates? They are based on the actual cost of a previous, similar project. They are also known as parametric estimating. They are most accurate when they involve large, extensive work items. They are time-intensive and expensive to develop.
True While outsourcing, organizations should be careful to protect strategic information that could become vulnerable in the hands of suppliers.
While outsourcing, organizations should protect strategic information because it can become vulnerable in the hands of suppliers. (T/F)
Performance Performance addresses how well a product or service performs the customer's intended use.
_____ addresses how well a product or service performs the customer's intended use. Reliability Performance Maintainability Functionality
Contingency plans Contingency plans are predefined actions that the project team will take if an identified risk event occurs.
_____ are predefined actions that the project team will take if an identified risk event occurs. Secondary risks Workarounds Contingency plans Management reserves
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.
_____ emphasizes things such as job rotation, broadening of skills, generalization versus specialization, and the need for continuous training of workers. Theory W Theory X Theory Y Theory Z
Determining the budget Determining the budget involves allocating the overall cost estimate to individual work items to establish a baseline for measuring performance.
_____ involves allocating the overall cost estimate to individual work items to establish a baseline for measuring performance. Determining the budget Finalising policies for project costs Controlling costs Estimating costs
Project stakeholder 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.
_____ is the new knowledge area identified by the Project Management Institute. Project stakeholder management Project communication management Project risk management Project procurement management
Resource loading 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.
_____ refers to the amount of individual resources an existing schedule requires during specific time periods. Resource loading Resource leveling Resource histogram Resource logs
Secondary Secondary risks are a direct result of implementing a risk response.
_____ risks refer to those that are direct results of implementing risk responses. Architectural Primary Residual Secondary
