System Analysis and Design: Project Management (CH4), PM Chapter 4
In a weighted scoring model, what percent must the sum of the weights of all the criteria total? Answers: a. 150 b. 100 c. 10 d. 50
100
_____ involves working with stakeholders to create the document that formally authorizes a project. a. Developing the project charter b. Developing the preliminary project scope statement c. Developing the project management plan d. Performing integrated change control
A Developing the project charter involves working with stakeholders to create the document that formally authorizes a project —the charter.
Corrective actions reduce the probability of negative consequences associated with project risks, while preventive actions should result in improvements in project performance. Answers: True False
False
A SWOT analysis, being a linear process, cannot be performed using the nonlinear mind mapping technique. Answers: True False
False
A project charter typically does not authorize the project manager to use organizational resources to complete the project. Answers: True False
False
An organization should consider only projects with a negative NPV if financial value is a key criterion for project selection. Answers: True False
False
An organization's information technology project selection process should guide the strategic plan. Answers: True False
False
Interface management involves identifying and managing the points of interaction between various elements of a project. Answers: True False
False
It is necessary that IT project managers have prior technical experience in creating and managing IT products. Answers: True False
False
Many projects fail because of unclear requirements and expectations, so starting with a payback analysis makes a lot of sense. Answers: True False
False
Opportunities and directives are essentially the same thing. Answers: True False
False
Project integration management must occur just within the context of a particular project. Answers: True False
False
Projects that address broad organizational needs are likely to fail. Answers: True False
False
The ROI is always positive. Answers: True False
False
The number of interfaces in a single project is limited, and does not depend on the number of people involved in the project. Answers: True False
False
The organization should complete low-priority projects before high-priority ones, if the low-priority ones take less time. Answers: True False
False
What statement is true regarding a return on investment or ROI? Answers: a. It is the result of adding the project costs to the profits. b. It is always a percentage. c. It is always a positive number. d. The lower it is, the better.
It is always a percentage.
Which is an example of an organizational process asset? Answers: a. The organization's infrastructure b. Management systems c. Government standards d. Marketplace condition
Management systems
What type of analysis involves 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? Answers: a. Payback b. Cost of capital c. Net present value d. Cash flow
Net present value
Which process is undertaken to reduce the probability of negative consequences associated with project risks? Answers: a. Corrective actions b. Preventive actions c. Defect repairs d. Performance reports
Preventive actions
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
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
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
Projects that arise as a result of problems and directives must be resolved quickly to avoid hurting an organization's business.
TRUE
Some organizations initiate projects using a contract in place of a project charter
TRUE
A summary of the planned approach for managing the project should describe stakeholder needs and expectations, important assumptions, and constraints. Answers: True False
True
An annual discount factor is a multiplier for each year based on the discount rate and year. Answers: True False
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. Answers: True False
True
Change requests are always made in writing. Answers: True False
True
In project integration management, directing and managing project execution involves carrying out the project management plan by performing the activities included in it. Answers: True False
True
Information systems can help an organization support a strategy of being a low-cost producer. Answers: True False
True
NPV analysis is a method for making equal comparisons between cash flows for multi-year projects. Answers: True False
True
Organizational process asset updates are an important output of the closing process of a project. Answers: True False
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. Answers: True False
True
Projects that arise as a result of problems and directives must be resolved quickly to avoid hurting an organization's business. Answers: True False
True
Some organizations initiate projects using a contract in place of a project charter. Answers: True False
True
When does payback occur? Answers: a. When the net costs are lower than the cumulative benefits b. When the cumulative benefits are double the cumulative costs c. When the net cumulative benefits minus costs equal one d. When the net cumulative benefits equal the net cumulative costs
When the net cumulative benefits equal the net cumulative costs
What is the first step in determining the NPV? Answers: a. determine the estimated costs and benefits for the life of the project and the products it produces b. determine the discount rate c. determine the cash flow d. calculate the net present value
determine the estimated costs and benefits for the life of the project and the products it produces
What is the majority of time on a project is usually spent on? Answers: a. closing b. planning c. monitoring and controlling d. execution
execution
In the _____ stage of selecting information technology projects, organizations define project scope, benefits, and constraints. a. project planning b. business area analysis c. resource allocation d. information technology strategy planning
A In the project planning stage of selecting information technology projects, organizations define project scope, benefits, and constraints.
Which of the following is true of return on investment or ROI? a. It is always a percentage. c. It is the result of adding the project costs to the profits. b. It is always a positive number. d. The lower it is, the better.
A The ROI is always a percentage. It can be positive or negative.
The first step in determining the NPV is to _____. a. determine the estimated costs and benefits for the life of the project and the products it produces b. determine the discount rate c. calculate the net present value d. determine the cash flow
A The first step in determining the NPV is to calculate the estimated costs and benefits for the life of the project and the products it creates.
The first step in the planning process is _____. a. to tie the information technology strategic plan to the organization's overall strategic plan c. to start defining potential IT projects in terms of their scope, benefits, and constraints b. to perform a business area analysis d. to choose which projects to do and assigning resources to work on them
A The first step in the planning process, starting at the top of the hierarchy, is to tie the IT strategic plan to the organization's overall strategic plan.
A project's internal rate of return can be determined by finding what discount rate results in an NPV of _____ for the project. a. zero c. a hundred percent b. one d. fifty percent
A You can determine a project's internal rate of return (IRR) by finding what discount rate results in an NPV of zero for the project.
Benefits minus costs is known as the _____. a. cost of capital c. discount factor b. cash flow d. opportunity cost of capital
B Cash flow is the benefits minus costs or income minus expenses.
_____ analysis is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time. a. Cost of capital c. Cash flow b. Net present value d. Payback
B Net present value (NPV) analysis is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time.
Payback occurs when: a. the net cumulative benefits minus costs equal one. c. the net costs are lower than the cumulative benefits. b. the net cumulative benefits equal the net cumulative costs. d. the cumulative benefits are double the cumulative costs.
B Payback occurs when the net cumulative benefits equal the net cumulative costs, or when the net cumulative benefits minus costs equal zero.
The _____ stage of information technology planning outlines business processes that are central to achieving strategic goals and helps determine which ones could most benefit from information technology. a. project planning b. business area analysis c. resource allocation d. information technology strategy planning
B The business area analysis outlines business processes that are central to achieving strategic goals and helps determine which processes could most benefit from IT.
_____ involves coordinating all planning efforts to create a consistent, coherent document. a. Developing the project charter b. Developing the preliminary project scope statement c. Developing the project management plan d. Developing the organizational process assets updates
C Developing the project management plan involves coordinating all planning efforts to create a consistent, coherent document—the project management plan.
In a weighted scoring model, the sum of the weights of all the criteria must total _____ percent. a. 10 c. 100 b. 50 d. 150
C In a weighted scoring model, a weight is assigned to each criterion based on its importance to the project. Determining weights requires consultation and final agreement. You can assign weights based on percentages; the weights of the criteria must total 100 percent.
In the _____ stage of selecting information technology projects, organizations select information technology projects. a. project planning b. business area analysis c. resource allocation d. information technology strategy planning
C In the resource allocation stage of selecting information technology projects, organizations select information technology projects.
The business case includes information on _____. a. the business need for the project c. the project objective, high-level requirements, and time and cost goals b. relevant government or industry standards d. policies, procedures, guidelines, and systems that influence a project's success
C Many projects require a business case to justify their investment. Information in the business case, such as the project objective, high-level requirements, and time and cost goals, is included in the project charter.
What process 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? Answers: a. Project management information systems b. Project time management c. NPV analysis d. Configuration management
Configuration management
What actions result in improvements in project performance? Answers: a. Acceptance plan b. Defective c. Corrective d. Preventive
Corrective
A _____ is a document that recognizes the existence of a project and provides direction on the project's objectives and management. a. stakeholder register c. directive b. risk register d. project charter
D A project charter is a document that formally recognizes the existence of a project and provides direction on the project's objectives and management.
_____ are new requirements imposed by management, government, or some external influence. a. Opportunities c. Problems b. Charters d. Directives
D Directives are new requirements imposed by management, government, or some external influence.
The outputs of the _____ process include change request status updates, project management plan updates, and project document updates. a. initiating b. planning c. executing d. monitoring and controlling
D The outputs of the monitoring and controlling process include change request status updates, project management plan updates, and project document updates.
The _____ is the minimum acceptable rate of return on an investment. a. capitalization rate c. discount rate b. internal rate of return d. required rate of return
D The required rate of return is the minimum acceptable rate of return on an investment
Which process involves working with stakeholders to create the document that formally authorizes a project? Answers: a. Developing the project management plan b. Developing the preliminary project scope statement c. Performing integrated change control d. Developing the project charter
Developing the project charter
Which process involves working with stakeholders to create the document that formally authorizes a project? Answers: a. Developing the organizational process assets updates b. Developing the project management plan c. Developing the preliminary project scope statement d. Developing the project charter
Developing the project management plan
What are new requirements imposed by management, government, or some external influence referred to as? Answers: a. Problems b. Directives c. Opportunities d. Charters
Directives
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
An organization's information technology project selection process should guide the strategic plan.
FALSE
Corrective actions reduce the probability of negative consequences associated with project risks, while preventive actions should result in improvements in project performance.
FALSE
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
Opportunities and directives are essentially the same thing
FALSE
Project integration management must occur just within the context of a particular project
FALSE
Projects that address broad organizational needs are likely to fail.
FALSE
The ROI is always positive
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
A Gantt chart is the same as a project management plan. Answers: True False
False
An IT company revises its process parameters in response to complaints from vendors that products were not ready on time. Which is this an example of? Answers: a. cost forecasting b. a corrective action c. defect repairs d. a preventive action
a corrective action
Which section of the project management plan provides the planned cost of deliverables? Answers: a. budget b. technical c. risk d. objectives
budget
Which 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? Answers: a. resource allocation b. information technology strategy planning c. project planning d. business area analysis
business area analysis
What term is used for benefits minus costs? Answers: a. discount factor b. cash flow c. opportunity cost of capital d. cost of capital
cash flow
Which term is used for 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? Answers: a. change control system b. WBS c. project charter d. performance report
change control system
The outputs of which process include change request status updates, project management plan updates, and project document updates? Answers: a. planning b. monitoring and controlling c. initiating d. executing
monitoring and controlling
Which document recognizes the existence of a project and provides direction on the project's objectives and management? Answers: a. project charter b. directive c. risk register d. stakeholder register
project charter
What document used to coordinate all project planning documents and help guide a project's execution and control? Answers: a. scope statement b. project management plan c. business case d. statement of work
project management plan
Which information is included in a business case? Answers: a. policies, procedures, guidelines, and systems that influence a project's success b. project objective, high-level requirements, and time and cost goals c. relevant government or industry standards d. business need for the project
project objective, high-level requirements, and time and cost goals
Which section of the project management plan includes external interfaces, internal structure, as well as roles and responsibilities? Answers: a. project organization b. overview c. supporting processes d. technical processes
project organization
Which process includes defining project scope, benefits, and constraints? Answers: a. information technology strategy planning b. project planning c. business area analysis d. resource allocation
project planning
What term is used for the minimum acceptable rate of return on an investment? Answers: a. required rate of return b. discount rate c. internal rate of return d. capitalization rate
required rate of return
Which process involves selecting information technology projects and assigning resources? Answers: a. resource allocation b. information technology strategy planning c. project planning d. business area analysis
resource allocation
Which section of the project plan lists the planned dates for completing key deliverables? Answers: a. schedule b. closing c. budget d. objectives
schedule
Which section of the project management plan describes specific methodologies a project might use and explains how to document information? Answers: a. risk management b. technical processes c. project controls d. management objectives
technical processes
What is the first step in the planning process? Answers: a. choose which projects to do and assigning resources to work on them b. start defining potential IT projects in terms of their scope, benefits, and constraints c. tie the information technology strategic plan to the organization's overall strategic plan d. perform a business area analysis
tie the information technology strategic plan to the organization's overall strategic plan
A project's internal rate of return can be determined by finding what discount rate results in an NPV of what value for the project? Answers: a. fifty percent b. zero c. one d. a hundred percent
zero
