M03 Quiz

false Feedback: It is very difficult to create a good WBS. In order to do so, you must understand the project and its scope and incorporate the needs and knowledge of the stakeholders.

Given the project management software that is available, it is relatively easy to create a good WBS.

CPIF Feedback: In a cost plus incentive fee (CPIF) contract, the buyer pays the supplier for allowable performance costs along with a predetermined fee and an incentive bonus.

In a(n) _____ contract, the buyer pays the supplier for allowable performance costs along with a predetermined fee and an incentive bonus. FPIF CPPC FFP CPIF

true Feedback: A basic principle of creating a good WBS and its WBS dictionary is that a unit of work should appear at only one place in the WBS.

A unit of work should appear at only one place in the WBS.

false Feedback: A work package is a task at the lowest level of the WBS. It represents the level of work that the project manager monitors and controls.

A work package represents one component of the product that the project aims to deliver.

bid

A(n) _____ is also known as a tender or quote, short for quotation.

e-sourcing

A(n) _____ type of e-procurement that identifies new suppliers for a specific category of purchasing requirements using Internet technology.

false Feedback: Deliverables can be product-related, such as a piece of hardware or software, or process-related, such as a planning document or meeting minutes.

Deliverables are only product-related, such as a piece of hardware or software.

true Feedback: Planning procurements involves identifying which project needs can best be met by using products or services outside the organization. If there is no need to buy products or services from outside the organization, then further procurement management is not needed.

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.

false Feedback: A firm-fixed-price (FFP) contract has the least amount of risk for the buyer, followed by a fixed-price incentive fee (FPIF) contract.

In an FPI contract, all of the risk is borne by the buyer.

impact

In procurement management, evaluation of any change should include a(n) _____ analysis.

conducting procurements Feedback: The process of conducting procurements involves obtaining seller responses, selecting sellers, and awarding contracts.

In project procurement management, which process involves obtaining seller responses, selecting sellers, and awarding contracts? settling contracts closing procurements conducting procurements planning procurement management

bottom up

In the _____ approach to creating a WBS, team members first identify as many specific tasks related to the project as possible.

False Feedback: Project scope statements should include at least a product scope description, product user acceptance criteria, and detailed information on all project deliverables. It is also helpful to document other scope-related information, such as the project boundaries, constraints, and assumptions.

Project scope statements must include the project boundaries, constraints, and assumptions.

true Feedback: The final process in project procurement management is closing procurements. This process involves determining if all work required in each contract was completed correctly and satisfactorily. The team should also update records to reflect final results and archive information for future use.

The closing procurements process involves updating records to reflect final results and archiving information for future use.

scope definition

The main outputs of _____are the project scope statement and updates to project documents.

project scope statement

The main outputs of scope definition are the _____ and project document updates.

source selection Feedback: 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 _____. WBS a change order a bid source selection

True Feedback: The project management plan, project documents, enterprise environmental factors, and organizational process assets are the primary inputs for creating a WBS.

The project management plan, project documents, enterprise environmental factors, and organizational process assets are the primary inputs for creating a WBS.

Defining scope Feedback: Defining scope involves reviewing the scope management plan, project charter, requirements documents, and organizational process assets to create a scope statement, adding more information as requirements are developed and change requests are approved.

Which action involves reviewing the project charter, requirements documents, and organizational process assets to create a scope statement, adding more information as requirements are developed and change requests are approved? Controlling scope Defining scope Creating scope Validating scope

top-down Feedback: To use the top-down approach, start with the largest items of the project and break them into subordinate items. This process involves refining the work into greater and greater levels of detail.

Which approach for constructing a WBS involves refining the work into greater and greater levels of detail? top-down mind mapping bottom-up analogy

top-down Feedback: To use the top-down approach, start with the largest items of the project and break them into subordinate items. The top-down approach is best suited to project managers who have vast technical insight and a big-picture perspective.

Which approach for constructing a WBS starts with the largest items of the project and breaks them into subordinate items? top-down mind mapping analogy bottom-up

JAD Feedback: Joint Application Design (JAD) uses highly organized and intensive workshops to bring together project stakeholders — the sponsor, users, business analysts, programmers, and so on —to jointly define and design information systems.

Which process uses highly organized and intensive workshops to bring together project stakeholders—the sponsor, users, business analysts, programmers, and so on—to jointly define and design information systems? JAD Use case modeling RAD Prototyping

work involved in creating the products and the processes used to create them Feedback: Scope refers to all the work involved in creating the products of the project and the processes used to create them.

Which statement best describes scope? each level of work that is outlined in a work breakdown structure end product created as part of a project that is delivered to the client tasks that are decomposed into smaller tasks in a work breakdown structure work involved in creating the products and the processes used to create them

Cost-reimbursable Feedback: Cost-reimbursable contracts involve payment to the supplier for direct and indirect actual costs. Such contracts often include fees, such as a profit percentage or incentives for meeting or exceeding selected project objectives.

_____ contracts involve payment to the supplier for direct and indirect actual costs and often include fees. Firm-fixed-price Lump sum Cost-reimbursable Fixed-price incentive fee

Scope creep

_____ is the tendency for project scope to keep getting bigger and bigger.

Project procurement

_____ management includes the processes required to acquire goods and services for a project from outside the performing organization.

task

A hierarchy is used to show the levels of _____ in the WBS.

make or buy

A(n) _____ decision is one in which an organization decides if it is in its best interests to make certain products or perform certain services inside the organization, or if it is better to buy them from an outside organization.

proposal

A(n) _____ is a document prepared by a seller when there are different approaches for meeting buyer needs.

WBS dictionary

A(n) _____ is a document that describes detailed information about each WBS item.

RFP Feedback: 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 SOW WBS RFP

requirements traceability matrix

A(n) _____ is a table that lists requirements, their various attributes, and the status of the requirements to ensure that all are addressed.

sending appropriate documentation to potential sellers Feedback: After planning for procurement management, the next process involves deciding whom to ask to do the work, sending appropriate documentation to potential sellers, obtaining proposals or bids, selecting a seller, and awarding a contract.

After planning for procurement management, the next process involves ____. determining the evaluation criteria for the contract award sending appropriate documentation to potential sellers developing procurement statements of work using expert judgement in planning purchases and acquisitions

false Feedback: Cost-reimbursable contracts often include fees, such as a profit percentage or incentives for meeting or exceeding selected project objectives. Buyer absorb more of the risk with cost-reimbursable contracts than they do with fixed-price contracts.

Buyers absorb lesser risk with cost-reimbursable contracts than they do with fixed-price contracts.

true Feedback: 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.

closing procurements

Controlling procurement also involves _____, which is sometimes referred to as contract closure.

true Feedback: 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.

True Feedback: Instead of writing down tasks in a list or immediately trying to create a structure for tasks, mind mapping allows people to write and even draw pictures of ideas in a nonlinear format. This more visual, less structured approach to defining and then grouping tasks can unlock creativity among individuals and increase participation and morale among teams.

Mind mapping allows people to write and even draw pictures of ideas in a nonlinear format.

top-down or bottom-up approach Feedback: You could conduct mind mapping for an entire project by listing the project in the center of a diagram and adding branches or develop a mind-mapping diagram for each deliverable and merge them to create one large diagram for the entire project.

Mind mapping can be used for developing WBSs using which approach? analogy approach only any approach bottom-up or analogy approach top-down or bottom-up approach

true Feedback: 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.

guidelines

Some organizations prescribe the form and content for WBSs for particular projects. These are known as _____.

false Feedback: The scope baseline includes the approved project scope statement and its associated WBS and WBS dictionary.

The scope baseline in a WBS consists of the requirements documentation and enterprise environmental factors.

cost plus percentage of costs CPPC

Three types of cost-reimbursable contracts include cost plus incentive fee, cost plus fixed fee, and _____.

negotiated settlements

Tools used in contract closure include procurement audits, _____, and a records management system.

it can make an organization become overly dependent on particular suppliers. Feedback: An organization can become too dependent on particular suppliers. If those suppliers went out of business or lost key personnel, it could cause great damage to a project.

What is one drawback of outsourcing? it can make an organization become overly dependent on particular suppliers. it does not provide access to specific skills or technologies it invariably results in an increase in both fixed and recurrent costs it cannot increase accountability of suppliers through a written contract

summary

When using project management software, estimates of work time should be entered only at the work package level; the rest of the WBS items are just groupings or _____ tasks.

Validating scope Feedback: Validating scope involves formalizing acceptance of the project deliverables. Key project stakeholders, such as the customer and sponsor for the project, inspect and then formally accept the deliverables during this process.

Which action involves normalizing acceptance of the project deliverables and during this phase the key project stakeholders, such as the customer and sponsor for the project, inspect and then formally accept the deliverables? Creating scope Defining scope Controlling scope Validating scope

They involve a fixed total price for a well-defined product or service. Feedback: Fixed-price or lump-sum contracts involve a fixed total price for a well-defined product or service. The buyer incurs little risk in this situation because the price is predetermined.

Which is true of lump-sum contracts? They consist of a fee based on the satisfaction of subjective performance criteria. They are also known as cost-reimbursable contracts. They incur a high degree of risk for the buyer. They involve a fixed total price for a well-defined product or service.

true Feedback: 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.

Variance

_____ is the difference between planned and actual performance.