PM Chapter 4

A Gantt chart is the same as a project management plan.

False

A SWOT analysis, being a linear process, cannot be performed using the nonlinear mind mapping technique.

False

A project charter typically does not authorize the project manager to use organizational resources to complete the project

False

An organization should consider only projects with a negative NPV if financial value is a key criterion for project selection

False

Corrective actions reduce the probability of negative consequences associated with project risks, while preventive actions should result in improvements in project performance.

False

Opportunities and directives are essentially the same thing.

False

Projects that address broad organizational needs are likely to fail.

False

The introduction or overview of a project must only include a list of definitions and acronyms.

False

The number of interfaces in a single project is limited, and does not depend on the number of people involved in the project

False

The organization should complete low-priority projects before high-priority ones, if the low-priority ones take less time

False

In the _____ stage of selecting information technology projects, organizations select information technology projects.

Resource Allocation

In project integration management, directing and managing project execution involves carrying out the project management plan by performing the activities included in it.

True

Information systems can help an organization support a strategy of being a low-cost producer.

True

NPV analysis is a method for making equal comparisons between cash flows for multi-year projects

True

Payback occurs when:

the net cumulative benefits equal the net cumulative costs.

The business case includes information on _____.

the project objective, high-level requirements, and time and cost goals

A project's internal rate of return can be determined by finding what discount rate results in an NPV of _____ for the project.

zero

Interface management involves identifying and managing the points of interaction between various elements of a project.

False

It is necessary that IT project managers have prior technical experience in creating and managing IT products

False

Project integration management must occur just within the context of a particular project.

False

The ROI is always positive.

False

A _____ is a document used to coordinate all project planning documents and help guide a project's execution and control.

Project Management Plan

In the _____ stage of selecting information technology projects, organizations define project scope, benefits, and constraints.

Project Planning

The _____ section of the project plan should describe the major project functions and activities and identify those individuals who are in charge of them.

Project responsibilities

The _____ is the minimum acceptable rate of return on an investment.

Required rate of return

Organizational process asset updates are an important output of the closing process of a project

True

Payback period is the amount of time it will take to recoup, in the form of net cash inflows, the total dollars invested in a project.

True

Some organizations initiate projects using a contract in place of a project charter.

True

The first step in the planning process is _____.

to tie the information technology strategic plan to the organizations overall strategic plan.

Projects that arise as a result of problems and directives must be resolved quickly to avoid hurting an organization's business.

True

In a weighted scoring model, the sum of the weights of all the criteria must total _____ percent

100

The _____ stage of information technology planning outlines business processes that are central to achieving strategic goals and helps determine which ones could most benefit from information technology.

Business Area Analysis

Benefits minus costs is known as the ___

Cash Flow

A(n) _____ is a formal, documented process that describes when and how official project documents may be modified, the people authorized to make modifications, and the paperwork required for these changes.

Change Control System

_____ involves identifying and controlling the functional and physical design characteristics of products and their support documentation, and ensures that the descriptions of the project's products are correct and complete.

Configuration Management

_____ should result in improvements in project performance.

Corrective Actions

_____ involves working with stakeholders to create the document that formally authorizes a project

Developing the project charter

_____ involves coordinating all planning efforts to create a consistent, coherent document.

Developing the project management plan

_____ are new requirements imposed by management, government, or some external influence.

Directives

Which of the following is true of return on investment or ROI?

It is always a percentage.

Which of the following are organizational process assets?

Management Systems

The outputs of the _____ process include change request status updates, project management plan updates, and project document updates.

Monitoring and Controlling

_____ analysis is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time.

Net Present Value

Which of the following is a proactive process undertaken to reduce the probability of negative consequences associated with project risks?

Preventive Actions

A _____ is a document that recognizes the existence of a project and provides direction on the project's objectives and management.

Project Charter

The _____ section of the project management plan describes how to monitor project progress and handle changes.

Project Controls

The _____ section of the project management plan describes specific methodologies a project might use and explains how to document information.

Technical Processes

An annual discount factor is a multiplier for each year based on the discount rate and year.

True

As projects progress, the organization must reevaluate the need, funding, and will for each project to determine if the project should be continued, redefined, or terminated.

True

Change requests are always made in writing.

True

An IT company revises its process parameters in response to complaints from vendors that products were not ready on time. This would be an example of _____.

a Corrective Action

The project schedule information section of the project management plan includes ____.

an elaborate timetable

The first step in determining the NPV is to _____.

determine the estimated costs and benefits for the life of the project and the products it produces

The majority of time on a project is usually spent on _____, as is most of the project's budget.

execution

An organization's information technology project selection process should guide the strategic plan

False