System Analysis and Design: Project Management Quiz 13 (CH12), Ch 11, chapter 10
An example of pull communication is _____.
blogs
____________ is a technique by which a group attempts to generate ideas or find a solution for a specific problem by amassing ideas spontaneously and without judgement
brainstorming
In project procurement management, which is an output of the conducting procurements process? Answers: a. make-or-buy decisions b. statements of work c. source selection criteria d. change requests
change requests
What is e-mail communication is most suited for?
communicating simple information
____________ are predefined actions that the project team will take if an identified risk event occurs
contingency plans
____________ are provisions held by the project sponsor or organization to reduce the risk of cost or schedule overruns to an acceptable level
contingency reserves/allowances
__________ is the process of understanding what potential events might hurt or enhance a particular project
contingency reserves/contingency allowances
In project procurement management, which process involves completion and settlement of each contract, including resolution of any open items? Answers: a. controlling procurements b. planning procurement management c. negotiating procurements d. conducting procurements
controlling procurements
Which process of project procurement management involves managing relationships with sellers, monitoring contract performance, making changes as needed, and closing contracts? Answers: a. deciding on the services to procure b. controlling procurements c. settling contracts d. negotiating procurements
controlling procurements
A(n) _______________ is a diagramming analysis technique used to help select the best course of action in situation in which future outcomes are uncertain
decision tree
As the number of people involved in a project _____, the complexity of communications _____.
decreases, increases
According to the guidelines provided by Practical Communications, Inc., a(n) _____ is a medium that is "excellent" for encouraging creative thinking.
During which phase must project teams address important considerations for managing information (and often end up updating business processes through improved communications)?
execution
Brainstorming is a systematic, interactive forecasting procedure based on independent and anonymous input regarding future events.
false
Risk events refer to specific, certain events that may occur to the detriment or enhancement of the project
false
The last step in project risk management is deciding how to address this knowledge area for a particular project by performing risk management planning
false
The psychology literature shows that individuals, working alone, produce fewer ideas than the same individuals produce through brainstorming in small, face-to-face groups
false
Top Ten Risk Item Tracking is a quantitative risk analysis tool.
false
Unknown risks can be managed proactively
false
The lower the earned monetary value calculation for a project, the chances of project success is higher
false, Expected monetary value (EMV) is the product of a risk event probability and the risk event's monetary value. Because the EMV provides an estimate for the total dollar value of a decision, you want to have a positive number, the higher the EMV, the better
System or process ____________________ are diagrams that show how different parts of a system interrelate.
flowcharts
Which document predicts future project status and progress based on past information and trends?
forecasts
Most organizations are not in business to provide information technology services, yet many have spent valuable time and resources on information technology functions when they should have instead worked on important competencies such as marketing, customer service, and new product design. Outsourcing helps tackle this problem. Which benefit does outsourcing primarily provide in such a scenario? Answers: a. reduces fixed and recurrent costs b. protects strategic information from being accessible to external suppliers c. increases accountability even without a written contract d. helps focus on an organization's core business
helps focus on an organization's core business
____________ involves determining which risks are likely to affect a project and documenting the characteristics of each
identifying risks
_____________ is a fact-finding technique that can be used for collecting information in face to face phone, e-mail, or instant messaging discussions
interviewing
What is one drawback of outsourcing? Answers: a. it does not provide access to specific skills or technologies b. it invariably results in an increase in both fixed and recurrent costs c. it can make an organization become overly dependent on particular suppliers. d. it cannot increase accountability of suppliers through a written contract
it can make an organization become overly dependent on particular suppliers
The items discussed in a(n) _____ include reflections on whether project goals were met, whether the project was successful or not, causes of variances on the project, reasoning behind corrective actions chosen, use of different project management tools and techniques, and personal words of wisdom based on team members' experiences.
lessons-learned report
In project procurement management, which is an output of the planning process? Answers: a. selected sellers b. change requests c. resource calendars d. make-or-buy decisions
make-or-buy decisions
According to the guidelines provided by Practical Communications, Inc., what is the most appropriate medium for addressing negative behavior?
meeting
According to the guidelines provided by Practical Communications, Inc., which is the most appropriate medium for giving complex instructions?
meeting
Risk ___________ refers to reducing the impact of a risk event by reducing the probability of its occurence
mitigation
The formula to determine the number of communication channels is _____, where n is the number of people involved.
n (n-1)/2
Potential problems that might occur on the project and how they might impede project success are _________ risks
negative
Which of the following is an output of the contract closure process? Answers: a. procurement statements of work b. open item resolution c. work performance information d. resource calendars
open item resolution
____________ involves prioritizing risks based on their probability and impact of occurence
performing qualitative risk analysis
___________ involves numerically estimating the effects of risks on project objectives
performing quantitative risk analysis
Identifying risks is a subprocess of the __________ of project risk management
planning
Performing qualitative and quantitative risk analyses are subprocesses of the _____________ process of project risk management
planning
The procurement statements of work are an output of the _____ process of project procurement management. Answers: a. planning b. monitoring and controlling c. executing d. closing
planning
The output of the _____ process is a communications management plan.
planning communications
Which process involves determining the information and communications needs of the stakeholders?
planning communications
In project procurement management, which process involves determining what to procure, when, and how? Answers: a. closing procurements b. controlling procurements c. conducting procurements d. planning procurement mana
planning procurement management
What is the first step in project procurement management? Answers: a. conducting procurements. b. planning procurement management. c. closing procurement management. d. controlling procurements.
planning procurement management.
___________ involves deciding how to approach and plan the risk management activities for the project
planning risk management
____________ involves taking steps to enhance opportunities and reduce threats to meeting project objectives
planning risk responses
The __________ lists the relative probability of a risk occurring and the relative impact of the risk occurring
probability/impact matrix
Unenforceable conditions or contract clauses and adversarial relations are risk conditions associated with the project __________ management knowledge area
procurement
Which document describes what the project team has accomplished during a certain period?
progress reports
What documents include a complete set of organized project records that provide an accurate history of the project?
project archives
A shortage of qualified personnel is one of the main reason that companies outsource. A project may require experts in a particular field for several months and planning for this procurement ensures that the needed services will be available for the project. Which benefit does this characteristic of outsourcing provide an organization? Answers: a. reduces focus on its core business b. increases control over all aspects of projects that suppliers carry out. c. provides access to specific skills d. reduces dependency on suppliers
provides access to specific skills
Outsourcing to provide extra workers during periods of peak workloads can be much more economical than trying to fill entire projects with internal resources. Which advantages does this characteristic of outsourcing provide organizations? Answers: a. offers control over all aspects of projects that suppliers carry out b. shifts accountability from external suppliers to internal staff c. helps avoid any form of dependency on suppliers d. provides flexibility
provides flexibility
Outsourcing suppliers can often provide economies of scale, especially for hardware and software, that may not be available to the client alone. Which benefit does this offer an organization? Answers: a. reduction in costs b. increased accountability c. increased flexibility d. access to specific skills
reduction in costs
_________ risks are risks that remain after all of the response strategies have been implemented
residual
A project _____________ is an uncertainty that can have a negative or positive effect on meeting project objectives.
risk
__________ applies to positive risks when the project team cannot or chooses not to take any actions toward a risk
risk acceptance
_______________ involves accepting the consequences should a risk occur
risk acceptance
The degree of uncertainty an entity is willing to take on in anticipation of a reward is
risk appetite
____________ involves eliminating a specific threat, usually by eliminating its causes
risk avoidance
A(n) ______________ is a hierarchy of potential risk categories for a project
risk breakdown structure
__________ are numbers that represent the overall risk of specific events, based on their probability of occurring and the consequences to the project if they do occur
risk factors
A(n) __________ documents the procedures for managing risk throughout the project
risk management plan
The _______________ is the person who will own or take responsibility for the risk
risk owner
A(n) ___________ is a document that contains results of various risk management processes
risk register
The main output of qualitative risk analysis is updating the _____________
risk register
_____________ involves allocating ownership of the risk to another party
risk sharing
________ involves shifting the consequences of a risk and responsibility for its management to a third party
risk transference
___________ is the amount of satisfaction or pleasure received from a potential payoff
risk utility
Risk utility rises at a decreasing rate for a ____________ person
risk-averse
Risk utility rises at a decreasing rate for a(n) ____________ person
risk-averse
A _____________ person achieves a balance between risk and payoff
risk-neutral
Those who are _____ have a higher tolerance for risk, and their satisfaction increases when more payoff is at stake.
risk-seeking
___________ risks refer to those that are direct results of implementing risk responses
secondary
In project procurement management, which is one of the main outputs of the conducting procurement process? Answers: a. procurement management plan b. selected seller c. procurement statement of work d. closed procurement
selected seller
After planning for procurement management, the next process involves ____. Answers: a. determining the evaluation criteria for the contract award b. using expert judgement in planning purchases and acquisitions c. developing procurement statements of work d. sending appropriate documentation to potential sellers
sending appropriate documentation to potential sellers
A ___________ is a technique used to show the effects of changing one or more variables on an outcome
sensitivity analysis
__________ helps professionals to see the effects of changing one or more variables on an outcome
sensitivity analysis
Which method of communication is likely to be most effective for conveying sensitive or important information?
short face-to-face meetings
The process of choosing suppliers or sellers is known as _____. Answers: a. a bid b. a change order c. WBS d. source selection
source selection
Which document addresses where the project stands in terms of meeting scope, time, and cost goals?
status reports
Which document describes where the project stands at a specific point in time?
status reports
_________________ are/is a qualitative risk analysis tool that maintains an awareness of risks throughout the life of a project in addition to identifying risks.
top ten risk item tracking
___________ are indicators or symptoms of actual risk events
triggers
A probability/impact matrix or chart lists the relative probability of a risk occurring on one side of a matrix or axis on a chart and the relative impact of the risk occurring on the other
true
A risk-seeking person prefers outcomes that are more uncertain and is often willing to pay a penalty to take risks
true
Contingency plans are predefined actions that the project team will take if identified risk event occurs
true
Identified risks may not materialize, or their probabilities of occurrence or loss may diminish
true
One possible response to managing negative risk is to accept the potential effects from the risk
true
Quantitative risk analysis need not be done for projects that are large and complex
true
Risks can have both negative and positive effects on meeting project objectives
true
The Delphi technique is a systematic, interactive forecasting procedure based on independent and anonymous input regarding future events
true
The Microsoft Solution Framework (MSF) includes a risk management model that includes developing and monitoring a top-ten master list of risks
true
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
true
An example of push communication is _____.
voice mails
A(n) ____________ is a list of risks that are low priority, but are still identified as potential risks
watch list
A(n) _____ is a website that enables anyone who accesses it to contribute or modify its content.
wiki
Project teams sometimes use ____________________—unplanned responses to risk events—when they do not have contingency plans in place.
work arounds
__________ are unplanned responses to risk events used when project teams do not have contingency plans in place
workarounds
According to research by Albert Mehrabian, which is NOT a way that information is communicated through face-to-face interaction?
written content
Outputs of the _____ process consist of selected sellers and change requests. Answers: a. planning procurement management b. conducting procurements c. controlling procurements d. closing procurements
.conducting procurements
What is the first step in a Monte Carlo analysis?
Assess the range for the variables being considered
A facilitator can help the team solve any communication problems.
True
In project procurement management, obtaining seller responses, selecting sellers, and awarding contracts is part of the _____ process. Answers: a. closing b. planning c. conducting procurements d. controlling
conducting procurements
In project procurement management, which process involves obtaining seller responses, selecting sellers, and awarding contracts? Answers: a. conducting procurements b. planning procurement management c. closing procurements d. settling contracts
conducting procurements
_______________ involves monitoring identified and residual risks, identifying new risks, carrying out risk response plans, and evaluating the effectiveness of risk strategies throughout the life of the project
controlling risk
The main output of the _________ process is the start of a risk register
identifying risks
A(n) _____________ represents decision problems by displaying essential elements, including decisions, uncertainties, causality, and objectives, and how they influence each other.
influence diagram
The term __________ is used to describe that the project team has identifies and analyzed.
known risks
Which communication method is most appropriate for assessing the commitment of project stakeholders?
meeting
_________ involves changing the size of the opportunity by identifying and maximizing key drivers of the positive risk
risk enhancement
___________ involves doing whatever you can to make sure the positive risk happens
risk exploitation
The _____ line for any e-mail messages you write should clearly state the intention of the e-mail.
subject
Using the formula for calculating the number of communication channels, how many channels would two people require?
1
Using the formula for calculating the number of communication channels, how many channels would five people require?
10
A team has 10 communication channels between its various members. Using the formula for calculating the number of communication channels, it can be deduced that the team has _____ members.
5
With a(n) _____ contract, the buyer pays the supplier for allowable performance costs plus a fixed fee payment usually based on a percentage of estimated costs. Answers: a. CPFF b. CPIF c. FPIF d. CPAF
CPFF
In a(n) _____ contract, the buyer pays the supplier for allowable performance costs along with a predetermined fee and an incentive bonus. Answers: a. CPIF b. FFP c. CPPC d. FPIF
CPIF
A(n) _____ contract carries the least risk for suppliers Answers: a. CPPC b. FFP c. CPAF d. FP-EPA
CPPC
From the buyer's perspective, the _____ is the least desirable among all contracts because the supplier has no incentive to decrease costs. Answers: a. CPIF b. CPAF c. CPPC d. CPFF
CPPC
In which contract does the buyer pay the supplier for allowable performance costs along with a predetermined percentage based on total costs? Answers: a. CPIF b. CPAF c. FPIF d. CPPC
CPPC
As a manager, you want to praise a team member, Phil, for doing a good job on a particular project. However, you know he tends to be an introvert. Which communication method would Phil be most comfortable with?
Call Phil in for a private meeting to appreciate his work.
_____ contracts involve payment to the supplier for direct and indirect actual costs and often include fees. Answers: a. Firm-fixed-price b. Fixed-price incentive fee c. Lump sum d. Cost-reimbursable
Cost-reimbursable
The basic concept of the _____________ technique is to derive a consensus among a panel of experts who make predictions about future developments
Delphi
_____________ is the product of a risk event probability and the risk event's monetary value
EMV, Expected monetary value
A company is considering whether to purchase or lease a piece of equipment for an upcoming project. The cost to purchase is $10,000 plus $100 per day to operate or $500 per day to lease (including operating costs). If the company anticipates using the equipment for a total of 20 days, they will be indifferent as to whether or lease or purchase it. Answers: True False
False
An FP-EPA contract carries the least risk for a supplier. Answers: True False
False
Buyers absorb lesser risk with cost-reimbursable contracts than they do with fixed-price contracts. Answers: True False
False
Communication becomes simpler when you increase the number of team members.
False
E-mail is the most appropriate medium for all types of communications.
False
Geographic location and cultural background have no impact on communications.
False
Improving an organization's ability to communicate is an easy process.
False
In an FPI contract, all of the risk is borne by the buyer. Answers: True False
False
In project procurement management, a main output of controlling procurements is a source selection criteria. Answers: True False
False
Indirect costs are those costs can be traced back to a project in a cost-effective way. Answers: True False
False
Minutes must be a comprehensive report of the meeting that was scheduled.
False
Project members should either have strong technical skills or soft skills.
False
Project procurement management consists primarily of two processes: assessing procurements and controlling procurements. Answers: True False
False
Status reports should be written in a consistent format, regardless of the stakeholders' needs.
False
The fee in a CPFF contract constantly varies even when the scope of a contract remains the same. Answers: True False
False
Which question is typically addressed by a project forecast?
How much more money will be needed to complete the project?
Which is a guideline that project managers should follow when communicating with teams through e-mail?
If the entire message can fit in the subject line, put it there.
Which is true of push communication?
Information is sent to recipients without their request.
____________ analysis simulates a model's outcome many times to provide a statistical distribution of the calculated results.
Monte Carlo
A(n) _____ is a document used to solicit proposals from prospective suppliers. Answers: a. RFQ b. RFP c. SOW d. WBS
RFP
A document used to solicit quotes or bids from prospective suppliers is known as a(n) _____. Answers: a. RFP b. RFQ c. WBS d. SOW
RFQ
___________ involves reducing the impact of a risk event by reducing the probability of its occurence
Risk mitigation
The _____ is a description of the work required for a procurement. Answers: a. RFP b. WBS c. SOW d. RFQ
SOW
Which is true of lump-sum contracts? Answers: a. They are also known as cost-reimbursable contracts. b. They involve a fixed total price for a well-defined product or service. c. They incur a high degree of risk for the buyer. d. They consist of a fee based on the satisfaction of subjective performance criteria.
They involve a fixed total price for a well-defined product or service
A key factor in evaluating bids, particularly for projects involving information technology, is the past performance record of the bidder. Answers: True False
True
A single contract can include all three categories of contracts. Answers: True False
True
Adding more people to a project that is falling behind schedule often causes more setbacks because of the increased complexity of communications.
True
All contracts should include specific clauses that take into account issues unique to the project. Answers: True False
True
Contents of the procurement management plan vary with project needs. Answers: True False
True
Do not have a meeting if there is a better way of achieving the objective at hand.
True
Good information technology project managers must have strong technical and communication skills.
True
If an organization has no need to buy any products or services from outside the organization, then it has no need to perform any of the procurement management processes. Answers: True False
True
In a project, communicating badly exponentially increases the possibility of making mistakes.
True
In unit pricing, the total value of the contract is a function of the quantities needed to complete the work. Answers: True False
True
It is extremely important to document any changes in technical specifications that might affect product performance.
True
Make-or-buy analysis involves comparing the internal costs of providing a product with the cost of outsourcing. Answers: True False
True
Most WBSs include a section for project communications to ensure that reporting key information is a project deliverable.
True
People have different personality traits that often affect their communication preferences.
True
Procurement audits are often done during contract closure to identify lessons learned in the entire procurement process. Answers: True False
True
Project managers must assess the needs of the organization, the project, and individuals in determining which communication medium to use, and when.
True
Rarely does the receiver interpret a message exactly as the sender intended.
True
Reviewing performance records reduces the risk of selecting a supplier with a poor track record. Answers: True False
True
Suppliers are those organizations or individuals who provide procurement services. Answers: True False
True
The closing procurements process involves updating records to reflect final results and archiving information for future use. Answers: True False
True
The communications management plan varies with the needs of the project.
True
The contractual relationship is a legal relationship, which means it is subject to state and federal contract laws. Answers: True False
True
The main sections of an RFP can include the statement of work and schedule information. Answers: True False
True
The project manager often combines information from all of the lessons-learned reports into a project summary report.
True
The risk register can be created with a simple Microsoft Word or Excel file
True
While outsourcing, organizations should protect strategic information because it can become vulnerable in the hands of suppliers. Answers: True False
True
