Project Management Exam 1 Short Answers

1.1 Define project.

A project is an endeavor to accomplish a specific objective through a unique set of interrelated tasks and the effective utilization of resources.

3.4 Define proposal, and describe the purpose of a proposal. In addition, list the three major sections of a proposal and the purpose and elements of each.

A proposal is a selling document and its purpose is to convince the customer that you understand what the customer wants and that you are the best one for the job. Sections Technical - describe solution Management - describe capabilities and experience Cost - estimate budget

2.9 What should be contained in a statement of work?

A statement of work should define the scope of the project and outline the tasks or work elements to be performed. The SOW should be very precise.

4.6 What is an activity? Does it always require human effort?

An activity is a defined piece of work that consumes time. It does not necessarily require the expenditure of effort by people.

1.6 Define customer satisfaction

Customer Satisfaction is the level to which the customer is pleased with the end result of the project.

2.8 Why is it important for a business to try to quantify the expected benefits of implementing a solution to a problem?

If a business did not quantify the benefits of a solution in advance, it might discover that the costs of the solution exceed the benefits. In addition, because most businesses have limited resources, they must prioritize their projects based on the expected benefits.

2.1 Why is it important to do a thorough and detailed job of needs identification?

It is important to thoroughly study the problem or opportunity in order to develop a quality RFP and/or quality solution. If the need is not clearly defined, you cannot expect the proposed solutions to be clearly defined either.

4.8 When would you use laddering in a network diagram?

Laddering should be used when a project has a set of activities that are repeated several times and appropriate resources are available to handle tasks concurrently.

1.6 Define cost

The cost of a project is the amount the customer has agreed to pay for acceptable project deliverables. The project cost is based on a budget that includes an estimate of the costs associated with the various resources that will be used to accomplish the project.

1.6 Define schedule

The schedule for a project is the timetable that specifies when each activity should start and finish. The project objective usually states the time by which the project scope must be completed in terms of a specific date agreed upon by the customer and the individual or organization performing the work.

1.9 Why must a manager monitor the progress of a project? What can be done if a project is not proceeding according to plan?

A manager must monitor progress to ensure that everything is going according to plan. It is also necessary to measure actual progress and compare it to planned progress. If at any time during the project the comparison of actual progress to planned progress reveals that the project is behind schedule, overrunning the budget, or not meeting the technical specifications, corrective action must be taken to get the project back on track within the scope, schedule, and budget constraints of the project objective. These actions include adding or changing resources to make up time and get back on schedule.

1.2 Define the term project objective, and give some examples

A project has a well-defined objective—an expected result or product. The objective of a project is usually defined in terms of scope, schedule, and cost. Furthermore, it is expected that the work scope will be accomplished in a quality manner and to the customer's satisfaction. For example, to produce 5,000 two-page marketing brochures by July 1 for a cost of $15,000.

5.8 Why should a project have a regular reporting period? Should all projects have the same reporting period? Why or why not?

A regular reporting period should be established so that actual progress can be compared to planned progress and any discrepancies can be dealt with as early as possible. The period depends on the complexity or duration of the project. It may be daily, weekly, bi-weekly, or monthly.

5.10 Who can initiate changes to a project schedule? Describe why and when changes would occur in a project. How are the network diagram and schedule updated to reflect the changes?

Changes might be initiated by the customer or the project team, or they might be the result of an unanticipated occurrence.

3.9 Describe two different types of contracts, when each should be used, and the risks associated with each.

Fixed-price contract Well-defined projects with low risk Low risk for customer High risk for contractor Cost-reimbursement contract Projects that involve risks High risk for customer Low risk for contractor

5.6 Why is it important to determine the critical path of a project? What happens if activities on this path are delayed? What happens if activities on this path are accelerated?

If any activity on the critical path is delayed, the whole project will be delayed, so it is important to know what the critical path is. If any of these activities are accelerated, the project completion date will also be accelerated.

2.12 Why would a customer give contractors instructions in the RFP to submit their proposals according to a standard format?

Instructions ensure that all proposals have a standard form and are thus easier to evaluate and compare. If instructions were not followed, one proposal might be 5 pages and another might be 50 pages. One might include technical specifications and another might not.

3.1 Describe why building relationships with customers and partners is important. How is this accomplished?

It is important to build relationships with customers and partners, since they prefer to work with people they know and can trust. Relationships establish the foundation for successful funding and contract opportunities. Relationship building requires being proactive and engaged. Relationship building, in many ways, is a contact sport. It requires getting out of the office and having face-to-face interactions. It cannot be done as effectively through e-mail or phone conversations.

5.11 Describe how you would apply the four steps of schedule control to a project. If the project needs to be accelerated, what kinds of activities would be the primary focus? Why?

Schedule control involves four steps: 1. Analyzing the schedule to determine which areas may need corrective action 2. Deciding what specific corrective actions should be taken 3. Revising the plan to incorporate the chosen corrective actions 4. Recalculating the schedule to evaluate the effects of the planned corrective actions Specific examples will vary. Answers will depend upon the project example. Accelerate near-term and longer-duration activities that are on the critical path.

5.12 Why is the scheduling of IS projects so challenging? What are some of the common problems that push IS projects beyond their due dates?

Scheduling for IS is often done in a haphazard manner, and thus a large percentage of IS projects are finished much later than originally promised— or never finished at all. One of the most important factors in effective scheduling is arriving at activity duration estimates that are as realistic as possible. Among the common problems that often push IS development projects beyond their required completion time are the following: Failure to identify all user requirements Failure to properly identify user requirements Continuing growth of project scope Underestimating learning curves for new software packages Incompatible hardware Logical design flaws Poor selection of software Failure to select the best design strategy Data incompatibility issues Failure to perform all phases of the SDLC

3.7 How do customers evaluate proposals? What factors might they consider?

Some customers first look at the prices. Other customers initially screen out those proposals with prices above their budget or those whose technical section does not meet all the requirements stated in the RFP. Others, especially on large projects, create a proposal review team that uses a scorecard to determine whether each proposal meets all requirements in the RFP and to rate the proposal against predefined evaluation criteria, such as price, schedule, capabilities, and experience.

3.5 What factors must be considered when a contractor develops the proposal price? Why is this not an easy task?

Some factors to be considered include: reliability of cost estimates; risk; value of the project to the contractor; customer's budget; and the competition. The proposal process is competitive. Contractors must make sure they do not bid too high or they might lose the bid. Contractors must make sure they do not bid too low or they might lose money even if they win the contract.

4.4 What is a work breakdown structure? What is a responsibility assignment matrix? How are they related?

The WBS is a hierarchical tree or an indentured list of end items that will be accomplished. • The responsibility assignment matrix is a method used to display, in tabular format, the individuals responsible for accomplishing the work items in the WBS. • The WBS and the responsibility assignment matrix are related. All the work items and work packages listed in the WBS are also listed in the responsibility assignment matrix.

1.4 What role does a customer have during the project life cycle? Why is it important to satisfy the customer?

The customer should be involved throughout the project life cycle. The customer is the one who is paying for the project. Unsatisfied customers have been known to withhold payments, to deny repeat business, and to spread the word of their dissatisfaction. On the other hand, a satisfied customer will do the opposite of those things.

1.6 Why are these (scope, schedule, cost, & customer satisfaction) considered to be constraints?

The objective of any project is to complete the scope within budget by a certain time to the customer's satisfaction. Any of these four factors can put limitations on the final product

4.2 What is meant by the term project objective? What might happen if a project objective is not clearly written? Give three examples of clearly written project objectives.

The project objective is the target—the tangible end product that the project team must deliver. The objective must be clear, attainable, specific and measurable. If the objective is not clearly written, the end product may not meet the needs of the customer Responses should contain the expected benefits of the project, the primary project end product or deliverable, and the date required for completion.

1.6 Define scope

The scope of a project is all the work that must be done in order to satisfy the customer that the deliverables meet the requirements or acceptance criteria agreed upon at the onset of the project.

5.3 Why might a contractor prefer to state a project completion time in terms of number of days after the project starts rather than a specific date? Give some examples of instances when this would be appropriate.

This is helpful in case the start of the project is delayed for some reason, such as an unexpected snowstorm delaying the start of a construction project. Example: A project that requires 100 days to complete with a finish date that is dependent upon the work being completed, rather than on a specific date

5.6 Describe the different types of project slack. How is each calculated ?

Total Slack is the amount of time an activity's earliest finish time can be delayed without delaying succeeding tasks beyond their latest finish times.If it is positive, you have extra time that can be used if needed. If it is negative, the activity needs to be completed by its latest finish time or the project completion will be delayed. • Slack = LF - EF or Slack = LS - ES Free Slack is calculated by finding the lowest of the values of total slack for all the activities entering into a specific activity, and then subtracting it from the values of total slack for the other activities also entering into that same activity.

5.9 What types of data should be collected during each reporting period?

Two kinds of data need to be collected: Data on actual performance. This includes the actual time that activities were started and/or finished and the actual costs expended and committed. Information on any changes to the project scope, schedule, and budget.

3.11 Describe two methods for measuring the effectiveness of your proposal efforts.

Win ratio Number of proposals won / Number of proposals submitted Total dollar value of proposals Value of proposals won / Value of proposals submitted

1.7 List and describe the main phases of the project life cycle.

initiating phase: projects are identified and selected. They are then authorized, using a project charter. planning phase: includes defining the project scope, identifying resources, developing a schedule and budget, and identifying risks, all of which make up the baseline plan for doing the project work. performing phase: the project plan is executed and work tasks are carried out to produce all the project deliverables and to accomplish the project objective. During this phase, the project progress is monitored and controlled to assure the work remains on schedule and within budget, the scope is fully completed according to specifications, and all deliverables meet acceptance criteria. Also, any changes need to be documented, approved, and may be incorporated into an updated baseline plan. closing phase: project evaluations are conducted, lessons learned are identified and documented to help improve performance on future projects, and project documents are organized and archived.

3.3 Discuss why contractors must make bid

no-bid decisions and the factors involved in making these decisions. Give an example of when a contractor should bid and when a contractor should not bid. / Most companies have limited resources and preparing a proposal can be a time consuming and costly process. Therefore companies must make bid/no-bid decisions. • Some factors to be considered are the competition, risk involved, mission of the company, opportunity to extend capabilities, reputation with the customer, available customer funds, proposal resources, and project resources.

3.2 Describe what is meant by pre-RFP

proposal marketing. Why should contractors do it? / Pre-RFP/proposal marketing is an opportunity for a client to help customers identify areas in which the customers might benefit from the implementation of projects that address needs, problems, or opportunities. Contractors should not wait until formal RFP solicitations are announced by customers before starting to develop proposals. Contractors need to develop relationships with potential customers long before the customers prepare RFPS. Contractors should maintain frequent contacts with past customers and current customers and initiate contacts with potential new customers. Working closely with a potential customer puts a contractor in a better position to be selected eventually as the winning contractor when the customer issues an RFP.

1.8 List and describe the steps required to develop a baseline plan.

• Establish project objective -- clearly define the project objective and have it agreed upon by the sponsor or customer. • Define scope -- include customer requirements, define the major work tasks or elements, as well as provide a list of deliverables and associated acceptance criteria that can be used to verify that the work and deliverables meet specifications. • Create a work breakdown structure -- divide and subdivide the project scope into pieces or work packages. • Assign responsibility - identify the person or organization responsible for each work item in the work breakdown structure. • Define the specific activities -- develop the list of detailed activities that need to be performed for each work package to produce any required deliverables. • Sequence activities -- graphically portray the activities in a network diagram to display the sequence and dependent relationships of the detailed activities. • Estimate activity resources -- determine which types and skills or expertise of resources and how many of each resource are needed for each activity with consideration of the availability of the resources. • Estimate activity durations -- make a time estimate for how long it will take to complete each activity, based on the estimate of the resources that will be applied. • Develop the project schedule -- develop the overall project schedule, including when each activity is expected to start and finish, as well as the latest times that each activity must start and finish in order to complete the project by the project required completion date. • Estimate activity costs -- determine the costs for the types and quantities of resources estimated for each activity using the appropriate labor cost rate or unit cost for each type of resource. • Determine the budget -- aggregate the cost estimates for each activity.