OMGT 4733 Test 1

Pearl projects

Represent revolutionary commercial opportunities using proven technical advances

Causes of Project Trade-offs

Shifts in the relative importance of criterions related to cost, time, and performance parameters • Budget-Cost • Schedule-Time • Performance-Scope

Defining stage

Specifications of the project are defined; project objectives are established; teams are formed; major responsibilities are assigned.

Two dimensions of project management

Technical (scope, WBS, schedules, resource allocation, baseline budgets, & status reports) sociocultural (leadership, problem solving, teamwork, negotiations, etc.)

planning stage

The level of effort increases, and plans are developed to determine what the project will entail, when it will be scheduled, whom it will benefit, what quality level should be maintained, and what the budget will be.

NPV

Uses managements minimum desired rate-of-return (discount rate) to compute the present value of all net cash inflows. Outlfow+ inflow/1+r +inflow/1+r^2.... however many years there are squared on r.

Multi-Weighted Scoring Model

Uses several weighted qualitative and/or quantitative selection criteria to evaluate project proposals. Allows for comparison of projects with other potential projects

Portfolio

a collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives.

Project (Book)

a complex, non-routine, one time effort limited by time, budge, resources and performance specifications designed to meet customer needs

Project Scope

a definition of the end result or mission of the project- a product or service for the client. in specific, tangible and measurable items

Project Charter

a document authorizing the project manager to initiate and lead the project

program

a group of related projects designed to accomplish a common goal over an extended period of time

Functional Organization

-Different segments of the project are delegated to respective functional units. -Coordination is maintained through normal management channels. -Used when the interest of one functional area dominates the project or one functional area has a dominant interest in the project's success

senior management input

-Provide guidance in selecting criteria that are aligned with the organization's strategic goals -Decide how to balance available resources among current projects

characteristics of a project

1. An established objective 2. A defined life span with a beginning and an end 3. Usually, the involvement of several departments and professionals 4. Typically, doing something that has never been done before 5. Specific time, cost, and performance requirements

Steps of defining a project

1. Defining the project scope 2. Establishing the project priorities 3. Creating the work breakdown structure 4. Integrating the WBS with the organization 5. Coding the WBS for the information system

Scope management checklist

1. Project objective 2. Deliverables 3. Milestones 4. Technical requirements 5. Limits and exclusions 6. Reviews with customer

closing stage

3 activities: -delivering the project to the customer -redeploying project resources - post- project review.

Refer to Snapshot from Practice 5.1. According to Kerry Wills, a project management senior director, what is the primary driver of estimating error? A. Complexity B. Organization culture C. Project structure D. People

A

Snapshot from Practice 2.2: Crisis IT featured ________. A. how management decided which projects to cut during a time of financial crisis B. the gap between strategy and implementation C. the gap between strategy and implementation D. the need to develop more fuel efficient planes

A

There are 5 steps involved when defining a project; which of the following is the last? A. Code the WBS for tracking B. Assign the cost account to a manager C. Assign the work package to a manager D. Develop the responsibility matrix

A

Which of the following is NOT true for strategic management? A. It should be done once every few years just before developing the operating plan B. It supports consistency of action at every level of the organization C. It develops an integrated and coordinated long-term plan of action D. It involves responding to changes in the external market and allocating scarce resources to improve a competitive position

A

Which of the following terms is often used to denote a project that a powerful, high-ranking official is advocating A. Sacred cow B. Pet project C. Political necessity D. special undertaking

A

Refer to Snapshot from Practice 1.4. What is the driving force behind the development of Google's autonomous-vehicle project? A. Compression of the product life cycle B. Preventing collisions C. Triple bottom line D. Increased customer focus

B

The tendency for the project deliverables to expand over time-usually by changing requirements, specifications, and priorities-is called A. Scope erosion B. Scope creep C. Project bloat D. Scope enhancement

B

According to Snapshot from Practice 4.1, why was the new version of the Big Bertha ERC II barred from use by golfers in North America who intended to play by USGA's Rules of Golf? A. It utilized space-age technology. B. It was too expensive yet heavy. C. It did not conform to the USGA's rules. D. Callaway did not sponsor the USGA.

C

Work break down coding system

Defines the levels and elements of the WBS, organization elements, work packages, budget and cost info. Allows reports to be consolidated at any level in the organization structure.

Work Package

Lowest level of the WBS

Project manager

Manages temporary, non-repetitive activities and frequently acts independently of the formal organization.

consensus method

Problem-solving technique when the group comes to substantial agreement on a solution

Importance of Project Management

Project managers create a project team and organization where none existed before. They must work with a diverse troupe of characters to complete projects.

Bottom-Up Estimating

can serve as a check on cost elements in the WBS by rolling up the work packages and associated cost accounts to major deliverables at the work package level.

White elephant projects

showered promise at one time but no longer viable

main goal of a project

to satisfy a customer's need

Priority Team Responsibilities

vertical: technicality feasibility low to high. horizontal: Commercial potential (NPV given success) Low to high upper left: Bread and butter lower left: white elephant lower right: oyster upper right: pearl

Ratio methods (Top-down)

(Sometimes called parametric) usually use ratios, or surrogates, to estimate project times or costs

Top-down estimating

- Are usually derived from someone who uses experience and/or information to determine the project duration and total cost. - Are sometimes made by top managers who have little knowledge of the processes used to complete the project.

According to Snapshot from Practice 3.1, skunk works is an example of ________. Correct A. a strong matrix structure B. a project office C. projectitis D.a dedicated project team

A

Bill is working on a project involving the upgrading of a management information system. The project is being managed by the information systems department with the coordination of other departments occurring through normal channels. He is working in a _________ organization. A. Functional B. Balanced Matrix C. Strong Matrix D. Projectized

A

If a project is small and does not require an elaborate system to assign tasks, which of the following is a good choice? A. Responsibility matrix B. Organization breakdown structure C. Work breakdown structure D. Priority Matrix

A

Project selection criteria are typically classified as A. Financial and nonfinancial B. Short-term and long term C. Strategic and tactical D. Cost and schedule

A

Refer to Snapshot from Practice 1.1. The ________ is an international society for project managers A. PMI B. PMP C. CAPM D. PMBOK

A

Which of the following top-down methods is used when projects closely follow past projects in regard to features and costs of those features, and result in costs being assigned by percentages to major segments of the project? A. Apportion B. Function point C. Phase estimating D. Consensus

A

WBS Dictionary

A document that provides detailed deliverable, activity, and scheduling information about each component in the work breakdown structure.

Work Breakdown Structure (WBS)

A hierarchical decomposition of the total scope of work to be carried out by the project team to accomplish the project objectives and create the required deliverables.

executing stage

A major portion of the project work takes place—both physical and mental. The physical product is produced (a bridge, a report, a software pro- gram). Time, cost, and specification measures are used for control. Is the project on schedule, on budget, and meeting specifications? What are the forecasts of each of these measures? What revisions/changes are necessary? (high effort)

Program Management

A process of managing a group of ongoing, interdependent, related projects in a coordinated way to achieve strategic objectives

Project (PMI)

A temporary endeavor undertaken to create a unique product, service, or result.

Regardless of the criteria differences among different types of projects, typically the most important criterion for project selection is A. how the project will balance risk within the project portfolio B. the project's fit to the organization strategy C. compliance D. profit

B

A series of coordinated, related, multiple projects that continue over an extended time period and are intended to achieve a goal is known as a A. Strategy B. Program C. Campaign D. Venture

B

According to Snapshot from Practice 5.1, what issue is caused by not involving the stakeholders when creating the estimates? A. Accuracy B. Accountability C. Timeliness D. Over budget

B

According to Snapshot from Practice 5.3, the Delphi Method makes use of ________ familiar with the kind of project in question. A. a panel of project team members B. a panel of experts C. a panel of investors D. a panel of project managers

B

All of the following are disadvantages of organizing projects within a matrix arrangement EXCEPT A. Dysfunctional conflict between functional managers and project managers. B. Expensive C. Infighting D. Stressful

B

All of the following are functions culture plays in an organization EXCEPT A. It provides a sense of identity. B. It replaces the need for a project selection process. C. It helps create social order. D. It clarifies and reinforces standards of behavior.

B

In the _____________ stage of What is a project?, project objectives are established, teams are formed, and major responsibilities are assigned. A. Identifying B. Defining C. Planning D. Executing

B

In which of the following is the balance of authority strongly in favor of the functional managers? A. Matrix B. Weak matrix C. Balanced matrix D. Strong matrix

B

Which of the following is NOT typical a project manager? A. Managing a temporary activity B. Overseeing existing operations C. Managing a nonrepetitive activity D. Responsible for time, cost and performance trade-offs

B

Which of the following is a good condition for bottom-up estimating? A. When the project involves strategic decision making B. When there is a fixed price contract C. When there is high uncertainty involved in the project D. When there is an unstable scope

B

A project selection process that is strongly linked to strategy results in A. The most profit B. Better utilization of the organization's resources C. A larger and more diverse organization D. More projects

Better utilization of the organization's resources

All of the following are organizational considerations when determining the right project management structure EXCEPT A. How important project management is to the success of the organization B. What percentage of core work involves projects C. Resource availability D. Budget constraints

Budget Constraints

Refer to Snapshot from Practice 1.1. James is a business undergraduate student taking project management course but does not have sufficient project experience. Which PMI certification will James be eligible to stand for after he finishes taking his project management course? A. PMP B. CPA C. CAPM D. PMBOK

C

Refer to Snapshot from Practice 5.1. Which of the followings is not an approach Kerry Wills follows when managing projects? A. Identify all of the stakeholders B. Aggregate the estimates by comparing several methods C. Treat the estimates as a one-time event D. Track project closely

C

Refining Estimates may be necessary for a number of reasons. For example, a manager getting further into a project and obtaining a better understanding of what needs to be done to accomplish a project and meet the needs of the customer is an example of A. Hidden interaction costs. B. Things going wrong on a project. C. Changes in project scope. D. There is never a good reason to refine estimates.

C

Snapshot from Practice 4.1: Big Bertha II illustrates ________. A. the need to identify who your customers are B. the importance of setting milestones for a project C. the importance of defining the technical requirement before starting a project D. the value of establishing a charter of a project

C

The _________ is used to assist in making project trade-offs among schedule, budget, and performance objectives. A. Responsibility matrix B. Work breakdown structure C. Project priority matrix D. Work package

C

The salary of the project manager would be an example of what type of cost found in a project? A. Labor B. Direct C. Direct project overhead D. General and administrative overhead

C

Which structure would be most appropriate for developing a new, highly innovative product that has strict time constraints? A. Functional organization B. Balanced matrix C. Dedicated project team D. Weak matrix

C

Payback

Calculate how many years it'll take to pay the outflow back

Level of effort is highest when you go to execute the project. Toward the end, cost of changes will be higher. Stakeholders will ;influence will be smaller toward the end.

Changes in level of effort, cost changes, stakeholder influence

Which of the below is NOT considered a strength for a matrix organization? A. Strong project focus B. Flexibility C. Easier post-project transition D. Streamlined project selection

D

Which of the following cultural characteristics relates to the degree to which groups within the organization are encouraged to operate in a coordinated or independent manner? A. Member identity B. Team emphasis C. Managerial focus D. Unit integration

D

Which of the following is NOT considered to be a characteristic of a project? A. An established objective B. A clear beginning and end C. Specific time, cost and performance requirements D. For internal use only

D

Project classification

Deciding how well a strategic or operations project fits the organization's strategy

matrix structure

Hybrid organization structure in which individuals from different functional areas are assigned to work on a specific project or task. optimizes use of resources

Bread-and-butter Projects

Involve evolutionary improvements to current products and services

Oyster projects

Involve technological breakthrough with high commercial payoffs

Project Governance

designed to improve project management in the whole organization over the long haul.

Selection criteria

o Applying a selection model to align projects closer with the organization's strategic goals ♣ Reduces the number of wasteful projects ♣ Helps identify proper goals for projects ♣ Helps everyone involved understand how and why a project is selected

Projectized Organization

projects are the dominant form of business, functional departments are responsible for providing support for its teams.

Which of the following is NOT true about an organization's strategy? A. Strategy determines how an organization will compete B. Strategy is implemented through projects C. Only top management must understand strategy D. Project selection should be clearly aligned with strategy

C

Which of the following is least likely to be included in a work package? A. How long the work package should take to complete B. A description of work to be performed C. Overhead expenses D. How much the work package should cost to complete

C

Which of the following is the correct order for the strategic management process? A. Strategies, mission, objectives, projects B. Objectives, projects, mission, strategies C. Mission, strategies, objectives, projects D. Objectives, mission, strategies, projects

C

An operational project is one that A. must be completed B. supports an organizations' long-run mission C. can improve organizational performance D. is completed to meet regulatory compliance

C

In reviewing the project plan, Susan sees that the first prototype must be completed by October 12. This would be best classified as A. Project target B. Limit item C. Milestone D. Project objective

C

The project scope statement indicates that the client is responsible for training the people who will be using the equipment and that the project team will train the client's trainers. This is an example of A. Project objectives B. Deliverables C. Limits and exclusions D. Technical requirements

C

According to Snapshot from Practice 1.3, which of the following tool(s) did Ron Parker consider to be important for his successful career? A. Communication skills B. Sense of urgency C. project management skills D. all of these alternatives are correct

D

According to Snapshot from Practice 2.2, how can Frontier Airlines get to a backlog of over hundreds of projects? A. Sacred cow projects get included in the selection system. B. Projects proposed from people who have left the airline still reside in the project portfolio. C. Non-value added projects make their way into the project portfolio. D. All of these alternatives are correct.

D

According to Snapshot from Practice 3.2, what does the term "projectitis" refer to? A. A negative dimension of creating dedicated project teams B. A conflict between project team members and the rest of the organization C. A situation when people not assigned to the project become jealous of the special treatment the project team members are getting D. All of these alternatives are correct.

D

All of the following are symptoms of organizations struggling with strategy disconnect and unclear priorities EXCEPT A.Frequent conflicts between managers B. Inadequate resources C. Confused employees regarding which projects are more important D. Not enough projects within the portfolio to make a profit

D

All of the following are ways the WBS helps in managing projects EXCEPT A. With cost and time estimates the WBS makes it possible to plan, schedule and budget the project. B. It provides management with information appropriate to each level. C. Can be used to define communication channels. D. Allows the project manager to establish the overall objective of the project

D

Companies are using which of the following for improving the estimating process for future projects? A. Adjusting estimates based on individual forecasting abilities B. Bench-marking and using the experience of other companies C. Using time and motion studies D. Creating historical databases of previous projects

D

Project governance does NOT include A. Setting standards for project seletion B. Overseeing project management activities C. Centralization of project processes and practices D. Allowing project managers to plan the project the way they see fit.

D

Reasons why estimating time and cost are important include all of the following EXCEPT A. To schedule work. B. To determine how long the project should take and cost. C. To determine how well the project is progressing. D. To help establish a project selection process.

D

Refer to Snapshot from Practice 1.1. Which of the following are certification(s) PMI provides for project management specialists? A. PMP B. CAPM C. PMBOK D. Both PMP and CAPM are correct

D

The highest element in the hierarchical breakdown of the WBS is A. A work package B. Sub-deliverables C. A cost account D. The project

D

Project Life Cycle

Defining (specifications of the project are defined) Planning (plans are developed to determine what the project will entail) Executing (status reports, change, quality, forecasts) Closing (train customer, transfer documents, release resources, evaluation, lessons learned)

Project life cycle stages

Defining, planning, executing, closing

Project Communication Plan

Maps out the flow of information on the project

Scope Creep

The tendency for the project scope to expand over time due to changing requirements, specifications, and priorities.

Checklist model

• Uses a list of questions to review potential projects and to determine their acceptance or rejection. • Fails to answer the relative importance or value of a potential project • Doesn't allow for comparison with other potential projects.

Characteristics of a project

•Has an established objective •Has a defined life span with a beginning and an end •Requires across-the-organizational participation •Involves doing something never been done before •Has specific time, cost, and performance requirements