SIE Midterm 1

•Funds that are for identified risks that have a low probability of occurring and that decrease as the project progresses are called ______ reserves. a.Management b.Budget c.Contingency d.Padded e.Just in case

C

•If a risk has a 90 percent chance of occurring, and the consequences will be $10,000, what does $9,000 represent? • a.Risk value b.Present value c.Expected monetary value d.Contingency budget

C

•In a software company a large number of simultaneously performed projects utilize the same groups of human and other resources. What is the term commonly used for this situation? a.Concurrent engineering b.Resource over-allocation c.Resource pooling d.Program management

C

•In which of the five PMI project management process groups is the most time and money usually spent? • a.initiating b.planning c.executing d.monitoring & controlling e.closing

C

•Project portfolio management addresses ______ goals of an organization, whereas project management addresses _____ goals. • a.external, internal b.internal, external c.strategic, tactical d.tactical, strategic

C

•Suppose a project plan had three distinct paths through a network. The first path consisted of activities A (3 days), B (4 days), and C (2 days). The second path consisted of activities D (4 days), E (5 days), and F (5 days). The third path consisted of activities G (2 days), H (3 days) and I (10 days). Which is the critical path? • a.ABC b.DEF c.GHI d.ADG

C

•The WBS, estimates for each work package, and the network diagram are completed. Which of the following would be the NEXT thing for the project manager to do? • a.Sequence the activities b.Verify that they have the correct scope c.Create a preliminary schedule d.Complete risk management

C

•A rough order of magnitude estimate is made during which project management process group? • a.Project planning b.Project closing c.Project executing d.Project initiating

D

•Activity slack (also known as float) can be calculated through which of the following means? • a.Early Finish (EF) - late finish (LF) b.Early finish (EF) - early start (ES) c.Late finish (LF) - late start (LS) d.Late start (LS) - early start (ES)

D

•All of the following are characteristics of a project EXCEPT: • A. project success criteria B. product requirements C. deliverables D. roles and responsibilities

D

•All of the following are characteristics of a project EXCEPT: • A.Temporary B.Definite beginning and end C.Interrelated activities D.Repeats itself every month

D

•Suppose you evaluated the best-case, most likely, and worst-case duration estimates for an activity and determined that they were 3 days, 4 days, and 8 days, respectively. Using PERT (three-point estimates) estimation techniques, what would be the expected duration for the activity? • a.4 days b.8 days c.5 days d.4.5 days

D

•The PMI project management process groups are: a.Initiating, planning, expediting, and control. b.Plan, organize, develop, and control. c.Plan, do, observe, commit. d.Initiating, planning, executing, monitoring & controlling, and closing.

D

•The authority to approve or deny change request lies with • a.Project Manager b.Customer c.Project Sponsor d.Configuration Control Board

D

•What should not be covered by a risk management plan? a.Roles and responsibilities for handling project risks b.Timing of project risk management activities c.The methodological approach used for risk management d. Individual risks and potential responses to them

D

•Which of the following best describes a project stakeholder • a.A team member b.The project manager c.Someone who works in an area affected by the project d.All of the above are stakeholders

D

•Which of the following is a common multi-criteria selection model? a.Checklist b.Net Present Value c.Weighted criteria model d.Both A and C are correct e.All of these are common multicriteria selection models

D

•Which of the following is not part of a SWOT analysis? • a.strengths b.weaknesses c.opportunities d.tactics

D

•Which of the following is true statement about risks? a.If a risk is identified in a risk response plan, then that means that risk has already happened. b.Once a risk has happened, you refer to the risk management plan to determine what action needs to be taken. c.A risk that was not planned but has happened is called a trigger. d.Risk identification happens in all the phases of the project.

D

•Which of these is not an example of a project? • a.Planning for your friends wedding b.Building a bridge across the Amazon river c.Buying clothes from the market on a special sale d.Cleaning the office building each day

D

•You have been asked to make an estimate for a project. The project involves manufacturing 1000 toys. You expect that as the team manufactures some toys, the time to make them will reduce. Which estimation technique are you trying to use? • a.Analogous Estimation b.Regression Analysis c.Bottom up Estimating d.Learning Curve

D

•You have been criticized that certain specifications in your scope statement do not pass the test for SMART objectives. What are SMART objectives? a.Objectives specified in far more detail than necessary for a execution of a successful project. b.Easily achievable objectives which help you reducing the pressure on yourself and the team. c.Objectives that should be achieved in order to attain formal recognition by both the customer and the project sponsor. d.Objectives that are described using specific, measurable, assignable, realistic and time-related specifications.

D

•Which of the following is the most critical component of the quadruple constraint? • a.Time, then cost, then quality b.Quality, then budget, then time c.Scope d.They are all equal importance unless otherwise stated

D. All equal

•Which of the following is not true about the WBS report? • a.WBS should focus in on the activities that must be performed in the project and should not focus on the deliverables b.The project team must be involved in developing the WBS c.As a rule of thumb, each activity of the WBS should take less than 80 hours d.WBS is usually represented in a hierarchical fashion

A

•A building contractor is working on a vacation home and is looking over his schedule. He notices that the schedule calls for the foundation footers to be poured and then the rough decking to be installed. In this plan, the decking would be an example of what type of activity? • a.Successor task b.Predecessor task c.Lag activity d.Crashed activity

A

•A project is handled by departments of an organization and expedited by a project coordinator. Which of the following statements is most likely to be true? ● a.The performing organization is a weak matrix. b.The performing organization is doing "management by projects". c.The performing organization is a strong matrix. d.The performing organization is projectized.

A

•If the optimistic estimate for an activity is 12 days, and the pessimistic estimate is 18 days, what is the standard deviation for this activity? • a.1 day b.1.3 days c.6 days d.3 days

A

•Rolling wave planning is ______. a.Planning near term work in detail b.Critical chain project management c.Critical path project management d.Precedence diagramming

A

•The assessment of the external and internal environments is called a _______ analysis. a.SWOT b.Competitive c.Industry d.Market e.Strategic

A

•The notion that work fills the time available so why hustle to complete a task when it isn't due until tomorrow is? • a.Parkinson's law b.Self protection c.Dropped baton d.Student syndrome e.Bottlenecks

A

•The objective of failure mode and effects analysis is to: a.Anticipate product failures and prevent them from occurring b.Devise ways of minimizing the impacts of product failures when they occur c.Describe the interrelationships among product failures d.Quantify the likelihood of different product failures

A

•The project manager wants to make sure that he is proceeding in the right order as he moves to develop a clear scope for his project. During scope definition, what should he be doing? ● a.Involving stakeholders and verifying that they have all provided their input to the process b.Developing his WBS and OBS c.Moving as quickly as possible to the determination of scope reporting methods d.Identifying all necessary vendors for any outsourcing that must be done

A

•To control the schedule, a project manager is reanalyzing the project to predict project duration. She does this by analyzing the sequence of activities with the least amount of scheduling flexibility. What technique is she using? a. Critical Path Method b. PERT Method c. Critical Chain Method. d. Activity on Arrow Method

A

•Todd is working on resource scheduling in preparation for the start of a project. There is a potential problem in the works; however, as the new collective bargaining agreement with the company's union has not been concluded. Todd decides to continue working on the resource schedule in anticipation of a satisfactory settlement. Todd's approach would be an example of which method for dealing with risk? • a.Retain (Accept) it b.Mitigate (Minimize) it c.Transfer it d.Avoid it

A

•What cost estimating technique uses project characteristics in a mathematical model to estimate project costs? a.parametric modeling b.fast-track estimating c.analogous estimating d.critical chain

A

•What does the acronym RACI commonly stand for in project management? • a.Responsible, Accountable, to be Consulted, to be Informed b.Remote, Attached, Connected, Integrated c.Risk Analysis and Caution Initiative d.Randomly Accessible Cashflow Information

A

•What is organization that controls project managers? • a.Project Management Office b.Strong matrix c.Functional d.Pure project

A

•What is the lowest level of decomposition in the Works Breakdown Structure called? • a.Work package b.Deliverable c.Subdeliverable d.Project

A

•What is the project impact of a one-week delay of a task that is on the critical path? • a.The project will be delayed by one week b.There is no impact to the project c.The project will be delayed by one day to one week depending upon whether there is a new critical path

A

•What two dimensions should you use when evaluating project risks? a.probability and impact b.cost and schedule c.negative and positive d.source and responsibility

A

•Which statement describes best the meaning of the term cost baseline? a.A cost baseline is an approved time-phased budget that will be used to measure and monitor cost performance on the project. b.Data to draw a cost baseline can be easily generated and updated as necessary from information related to actual project cost. c.A cost baseline is usually displayed in the form of an inverse S-curve drawn from the beginning of the project until data date.

A

•You are creating your WBS and find that you keep decomposing tasks into smaller and smaller units. How can you tell when you are done? ● a.Keep decomposing tasks until you reach an amount of work that is small enough to reliably estimate required resources and durations b.Keep decomposing tasks until you reach an amount of work that can be accomplished in one hour c.Keep decomposing work until you reach an amount of work that can be accomplished in you organization's basic work unit d.Keep decomposing work until you reach predetermined number of hierarchy levels to keep the WBS balanced

A

•You are working on the project of painting of your house. You identify a dependency that the painting of roof should begin only after two days of completion of painting of walls. This is an example of • a.Lag b.Lead c.Slack d.Float

A

•You have just been made the Project Manager of the ABC project. You are trying to read the WBS and are unable to understand some of the WBS components. Which should be your first step to understand this? • a.Refer to the WBS dictionary b.Refer to the scope statement c.Refer to the Project charter d.Contact the previous Project Manager

A

•You need to analyze a rocket engine. Which method is best to be applied for this situation? • a.DFMEA b.PFMEA

A

•What is the main role of the functional manager • a.To control resources b.To manage the project when the Project Manager isn't available c.To define business processes d.To manage the project manager

A&C

•Which of the following statements regarding PERT times is true? a.Optimistic time estimate is an estimate of the minimum time an activity will require. b.Optimistic time estimate is an estimate of the maximum time an activity will require. c.The probable time estimate is calculated as t = (a + 4m + b)/6. d.Pessimistic time estimate is an estimate of the minimum time an activity will require. e.Most likely time estimate is an estimate of the maximum time an activity will require.

A&C

•A professional organization for project management specialists is the a. PMI b. AMA c. MIS d. IPM e. PMBOK

A. PMI

•A finish to finish relationship is defined as which of the following? • a.Both activities have to finish at the same time b.The predecessor has to finish before the successor can finish c.Both activities are on a critical path d.The predecessor has a defined lead while the successor has a defined lag

B

•A hospital expansion is being planned for a community. As part of the scope of this project, it will be necessary to close down the access routes into the emergency room for major remolding; however, because this is the only hospital for trauma cases within 50 miles, it is not possible to completely shut down the emergency room. The project team will have to find a means to remodel the emergency room while allowing for continuous operations of the unit. This is an example of what? • a.Negotiation points with the owner b.Constraints c.Initial assumptions d.Milestone development

B

•A project manager is informed that a limited number of resources are going to be available for his project. He creates a project schedule by adding buffers to the project to protect the target finish date. What type of schedule network analysis is he using? a.What-if Analysis b.Critical chain method c.Critical path method d.Resource leveling

B

•A project manager is using weighted average duration estimates to perform schedule network analysis. Which type of mathematical analysis is being used? • a.Critical path method b.PERT c.Monte Carlo d.Resource Leveling

B

•A project manager tracks the work of team members using a network logic diagram. Which effect will the presence of an actual finish date have on the calculation of float for the finished activity? • a.Finished activities have only float left when they have been completed on schedule. b.Calculating free float and total float is generally not reasonable for finished activities. c.When an activity has been finished, total float gets often converted to become free float. d.When an activity has been finished, float gets often converted to become slack

B

•A temporary endeavor undertaken to create a new product or service is called a: • a.New product development. b.Project c.Program d.Enterprise

B

•Cost baseline is usually represented using which curve or line? • a.a Slanted line b.a S-curve c.a Z curve d.a PQ curve

B

•Learning curves are most likely to be applied in situations where most of the costs are • a.Materials b.Labor c.Overhead d.Travel

B

•Purchasing insurance is BEST considered an example of risk: • a.Mitigation b.Transfer c.Acceptance d.Avoidance

B

•The essential difference between cost and price is? • a.Price includes cost-of-living adjustment and cost does not b.Cost is the expenses incurred by the project; price is what the customer is charged for the work/product c.Price divided by cost equals the benefit cost ratio (BCR) for the project d.Cost is what the customer is charged for the project work/product; price is based on the retail value of the project work/product

B

•To balance risks, the PM should also consider? • a.Problems b.Opportunities c.Resources d.Schedules

B

•What is a trigger in project risk management? a.An expected situation causing an unidentified risk to occur b.A warning sign that a previously identified risk might be occurring or has occurred c.An unexpected situation causing an identified risk to occur d.An unexpected situation causing an unidentified risk to occur

B

•What is the first step in planning a project schedule? a.developing a budget b.developing an activity list c.assigning resources to the project d. determining activity sequencing

B

•What kind of certification does the Project Management Institute provide? • a.Certified Project Manager (CPM) b.Project Management Professional (PMP) c.Project Management Expert (PME) d.Project Management Mentor (PMM)

B

•Which of the following is a benefit of an analogous project estimate? a.It will be closer to what the work will actually require. b.It gives the project team an understanding of management's expectations c.It is based on a detailed understanding of what the work requires d.It helps the project manager determine if the project will meet the schedule

B

•Which of the following would be least important on the risk register? • a.Risk owner b.Who identified the risk c.Risk triggers d.Secondary risks

B

•You are working as a project manager in a company. You have the highest degree of authority, you are working full-time for your project and you manage the budget of the project. What is the organization structure in your company? • a.Strong matrix b.Projectized c.Functional d.Balanced Matrix

B

•You need to analyze the assembly process of a rocket engine. Which method is best to be applied for this situation? • a.DFMEA b.PFMEA

B

•Your project team is working on a brand new project with leading edge technology. As a result, it is very difficult for your team to give reasonable accurate estimates for how long their activities are going to take in order to be completed. Because of this uncertainty, it would be appropriate for you to require your team members to use what kind of logic when estimating durations? • a.Normal distribution b.Beta distribution c.Deterministic estimates d.Experience

B

•In a matrix organization, which of the following is true? a.The project manager is responsible for employee skills improvement. b.The functional manager is responsible for employee skills improvement. c.The project manager is responsible for the employee's annual appraisal. d.The employee is responsible for his or her own skills improvement.

B & D (B)

•A RACI chart is a type of _______ . ● a.project organizational chart b.resource histogram c.responsibility assignment matrix d.project dashboard

C

•A _____ is a time-phased budget that project managers use to measure and monitor cost performance. • a.cost estimate b.life-cycle budget c.cost baseline d.cash flow analysis

C

•A ______ is a deliverable-oriented grouping of the work involved in a project that defines the total scope of the project. • a.contract b.Gantt chart c.WBS d.Network diagram

C

•A ______ is a document that contains results of various risk management assessments, often displayed in a table or spreadsheet format. a.risk event b.Trigger c.risk register risk management plan

C

•A group of related projects that are managed in a coordinated way that usually include an element of ongoing activity is called a: • a.Major project. b.Project office. c.Program. d.Group of projects.

C

•All of the following are elements in the definition of a project except • a.A project is time-limited b.A project is unique c.A project is composed of unrelated activities d.A project is undertaken for a purpose

C

•The project manager has just met with her team to brainstorm some of the problems that could occur on the upcoming project. Today's session was intended to generate possible issues that could arise and get everyone to start thinking in terms of what they should be looking for once the project kicks off. This meeting would be an example of what element in the risk management process? • a.Risk mitigation b.Control and documentation c.Risk identification d.Analysis of probability and consequences

C

•There are four projects to be chosen from; Project A has NPV of $32,500, Project B has NPV of $35,000, Project C has NPV of $45,000 and Project D has NPV of $10,000. Which Project should be chosen? • a.Project A b.Project B c.Project C d.Project D

C

•What is the typical role of senior management on a project? • a.Support the project b.Pay for it c.Support the project and resolve resource and other conflicts d.Resolve resource and other conflicts

C

•When would a milestone chart be used instead of a bar (Gantt) chart? • a.Project planning b.Reporting to team members c.Reporting to management d.Risk analysis

C

•Which is not a point used for three-point estimation? • a.Optimistic estimate b.Most likely estimate c.Budget estimate d.Pessimistic estimate

C

•Which is the best definition of the "Critical Chain"? a.The shortest sequence of dependent events through a project network considering both task and resource dependencies. b.The longest sequence of dependent events through a project network considering task dependencies c.The longest sequence of dependent events through a project network considering both task and resource dependencies d.The longest sequence of dependent events through a project network considering resource dependencies

C

•Which of the following is a benefit of an analogous project estimate? • a.It will be closer to what the work will actually require b.It is based on a detailed understanding of what the work requires c.It gives the project team an understanding of managements' expectations d.It helps the project manager determine if the project will meet the schedule

C

•Which of the following is not part of the triple constraint in project management? • a.Meeting scope goals b.Meeting time goals c.Meeting communication goals d.Meeting cost goals

C

•Which of the following is not true about analogous estimating a.Estimate based on past projects b.It is not very accurate c.It uses bottom-up approach d.It is a form of an expert judgement

C

•Which of the following is true statement about risks? a.If a risk is identified in a risk response plan, then that means that risk has already happened. b.A risk that was not planned but has happened is called a trigger. c.Risk identification happens in all the phases of the project.

C

•Which relationship model is most commonly used in the Precedence diagrams? • a.start-to-start b.start-to-finish c.finish-to-start d.finish-to-finish

C

•______ is a method of planning and managing projects that emphasizes the resources required to execute project tasks. It is based on methods and algorithms derived from Theory of Constraints? • a. Critical Path Method b. PERT Method c. Critical Chain Method. d. Activity on Arrow Method

C

•Which of the following statements is false concerning the financial analysis of projects? • a.The higher the net present value the better b.A shorter payback period is better than a longer one c.The required rate of return is the discount rate that results in an NPV of zero for the project d.ROI is the result of subtracting the project costs from the benefits and then divided by the costs.

C. (IRR is the discount rate (interest rate) to yield an NPV =0)

•A project budget report is showing our project as spending $35,000 against a budgeted amount of $40,000. Which of the following is true? a.We are spending less than we should for the project b.We are doing a good job managing the project c.We should check to see if all the bills have been paid d.Both A and B are correct e.We can't be sure how the project is going

E

•All of the following would be considered examples of significant project risks except? • a.Financial risks b.Technical risks c.Subcontractor risks d.Legal risks e.All are examples of significant potential project risks

E

•Resource leveling can provide a.Lower peak demand b.Reduced resource need over the life of the project c.Reduced fluctuations in resource demand d.Both A and B are correct e.A, B, and C are all correct

E

•Splitting an activity creates the following situation: a.More people working on the same activity b.There are possible startup and shutdown costs c.A resource may be moved from one activity to another and then back d.Both B and C are correct e.A, B, and C are all correct

E

•The chances of a risk event occurring as a project proceeds through its life cycle tends to a.Slowly rise b.Drop sharply and then level out c.Rise sharply and then level out d.Remain about the same e.Slowly drop

E

•The project manager spends a great deal of her time communicating with project stakeholders. Which of the following represent an example of a stakeholder group for her project? • a.A. Top management b.B. Customers c.C. Project team members d.D. Functional group heads e.E. All are project stakeholders

E

•Which of the following statements regarding networks is false? • a. The critical path is the shortest of all paths through the network. b. The critical path is that set of activities that has positive slack. c. Some networks have no critical path. d. All activities on the critical path have their LS equal EF. e. All of the above are false.

E