[study] Project Management Final

All of the following are usually included in a work package

- All the costs for the work package. - A single person who is responsible for its completion. - The time needed to complete the work. - What will be done.

What major information would you expect to find in a project review?

- Classification of the project— large/small, platform/incremental, complex/typical - Analysis of information gathered - Recommendations - Lessons learned - An appendix with backup information to support recommendations

How does a communication plan benefit management of projects?

- Instead of responding to information requests, you are controlling the flow of information. - Keeping stakeholders informed with timely information reduces confusion, unnecessary interruptions, and can provide project managers greater autonomy. - By reporting on a regular basis how things are going and what is happening, allows senior management to feel more comfortable about letting the team complete the project without interference.

Project management is important to understand when people are a part of a project team because they

- Need to be able to monitor and report project progress. - Need to understand project priorities so they can make independent decisions. - Need to understand the project charter or scope statement that defines the objectives and parameters of the project.

Change management systems are designed to accomplish

- Reflect scope changes in baseline and performance measures - Review, evaluate, and approve/disapprove proposed changes formally - Track all changes that are to be implemented - Identify expected effects of proposed changes on schedule and budget

Why is the implementation of projects important to strategic planning and the project manager?

- Strategic plans are implemented primarily through projects. - The project manager is responsible for completing the project on time, on budget, and within specifications so the project's customer is satisfied. - If the project is not linked to the strategic plan of the organization, resources devoted to the project are wasted and a customer need is not met.

How does the WBS differ from the project network?

- The WBS is hierarchical while the project network is sequential. - The network provides a project schedule by identifying sequential dependencies and timing of project activities. The network sets all project work, resource needs, and budgets into a sequential time frame; the WBS does not provide this information. - The WBS is used to identify each project deliverable and the organization unit responsible for its accomplishment within budget and within a time duration. - The WBS provides a framework for tracking costs to deliverables and organization units responsible.

Why are lags used in developing project networks?

- To closer represent real situations found in projects - To allow work to be accomplished in parallel when the finish-to-start relationship is too restrictive

Free slack

- Usually occurs at the end of an activity chain—before a merge activity. - It is the amount of time the activity can be delayed without affecting the early start of the activity immediately following it.

What are five characteristics which help differentiate projects from other functions carried out in the daily operations of the organization?

- a defined life span - a well-defined objective - typically involves people from several disciplines - a project life cycle - specific time, cost, and performance requirements

How does the culture of an organization influence the quality of estimates?

- depends on the importance the organization places on estimating - use of top-down versus bottom-up estimating can influence estimates - how padding is handled strongly influences estimates - how organization politics is tolerated can severely influence estimates.

What has been the effect of environmental forces on the management of projects?

- more projects per organization - project teams responsible for implementing projects - accountability - changing organization structures - need for rapid completion of projects - linking projects to organization strategy and customers - prioritizing projects to conserve organization resources - alliances with external organizations

What are some of the key environmental forces that have changed the way projects are managed?

- product life cycle - knowledge growth - global competition - organization downsizing - technology changes - time-to-time market

Hammock Activity

- special purpose activity that exists over a segment of the life of the project - typically uses resources and is handled as an overhead cost - used to identify overhead resources or costs tied directly to the project - duration is determined by the beginning of the first of a string of activities and the ending of the last activity in the string - used to aggregate sections of projects to avoid project detail - gives top management an overview of the project by avoiding detail

Total slack

- the amount of time an activity can be delayed before it becomes critical. - prevents its use on a following activity.

Bottom-up Estimates

- time and cost estimates are usually tied directly to the WBS and a work package - estimates are made by people familiar with the task, which helps to gain buy-in on the validity of the estimate - use of several people should improve the accuracy of the estimate - should be preferred if time to estimate is available, estimating cost is reasonable, and accuracy is important

Top-down Estimates

- typically used in the project conceptual phase, and depend on surrogate measures such as weight, square feet, ratios - do not consider individual activity issues and problems, but are good for rough estimates and can help select and prioritize projects

Work packages include the following types of information:

- work to accomplish a segment of the project - time to accomplish the work package - time-phased budget for the work package and total cost to complete the work package - resources needed to complete the work package - single person responsible for accomplishment of the work package - monitoring points for measuring process during implementation of the work package - any specifications critical to the work package

What are the six elements of a typical scope statement?

1. project objective 2. deliverables 3. milestones 4. technical requirements 5.limits and exclusions 6. reviews with customer

What is a project?

A complex, non-routine, one-time effort limited by time, budget, resource, and specifications.

What are the differences between BAC and EAC?

BAC is the planned budget at completion. EAC is the estimate at completion. EAC can be calculated two ways. First is simply by formula, which is used in software programs; the formula applies a performance ratio from past work on the project to the remaining work for an EAC. A second method uses new cost estimates that have been made by project participants concerning specific work packages; these new estimates are then factored into the EAC.

A project manager learns that the project is only earning $.90 of planned work for each dollar spent by looking at the

CPI

Why is trust a function of both character and competence?

Character alone is not likely to engender trust. People must have confidence in the other person's abilities and competence. For example, you are unlikely to follow someone who has the best of intentions if he/she has a track record of failing to get things done correctly. Conversely, one will not trust someone who is very competent but has a doubtful character. For example, you are unlikely to follow someone who is quite competent if you believe he/she is only looking out for what is best for him/her.

If, for some reason, the project must be expedited to meet an earlier date, which of the following actions would the project manager take first?

Check to see which activities are on the critical path

Which of the following is NOT true in regard to the level of detail estimates should contain?

Detailed estimates are crucial to project success; therefore, an effort should be made to make estimates as detailed as possible for all projects

Scott has just been given a project that has a specific completion date. After a discussion with top management he finds that while the date is important the cost is more important and a slip in delivery would be acceptable if required to meet the cost targets. The completion date is best classified as

Accepted

Which of the following would be considered the MOST effective project reward?

All-expenses-paid trip for team members and their families

Each retrospective has an owner.

Assigning an owner who has knowledge and an interest in the retrospective, provides a resource for other project managers who wish to acquire more firsthand information.

Which costs are controllable by the project manager?

Direct costs are controllable by the project manager. Direct overhead and general and administrative costs are only controllable in the sense that if the resource or project is finished early or late the costs will continue for the duration of the project.

What are the major types of costs?

Direct, direct overhead, and general and administrative costs

Which of the following methods will measure the cost efficiency of the work accomplished to date?

EV/AC

Which of the following methods will measure the scheduling efficiency of the work accomplished to date?

EV/PV

How does earned value give a clearer picture of project schedule and cost status than a simple plan versus actual system?

Earned value gives a clearer picture than a simple plan versus actual system because the earned value system includes the time variable in measuring progress. Plan versus actual can lead to false conclusions. Earned value measures what work was accomplished for the money spent.

Which of the following is NOT one of the recommended guidelines for developing useful work package estimates?

Estimates should include a normal level of contingency

An activity that represents a major segment of work is a good example of a milestone.

False

The backward pass determines project duration.

False

The requirement for a freshly poured foundation to cure before beginning construction is an example of which of the following type of lag?

Finish to start

What is the difference between functional and dysfunctional conflict on a project?

It can be difficult to discern whether a conflict among project members is functional or dysfunctional. The key is how conflict affects project performance, not how individuals feel. Members can be upset and dissatisfied with each other, but as long as the conflict enhances project performance then it is considered functional. Conversely, if the conflict distracts from project performance by degenerating into personality clashes or creating unnecessary delays in critical project work, then the conflict is considered dysfunctional.

Which of the following is NOT true regarding scope creep?

It is when the cost of the project is more than expected

Which of the following correctly calculates the late start for an activity?

LF - DUR

The assumption that all immediate preceding activities must be 100% complete is too restrictive in some situations. When an activity is broken down into smaller segments in order to start the succeeding activity sooner, this is called

Laddering

What is the difference between leading and managing a project?

Leading involves recognizing and communicating the need to change course and direction of the project, aligning people to this new direction, and motivating the team to overcome obstacles to achieve the new objectives. Managing is about formulating plans and objectives, designing procedures to achieve those objectives, monitoring progress, and taking corrective action. Managing is about putting out fires and maintaining the course. Leading is about change, and altering the course of a project.

Individual rewards for outstanding work would NOT include

Letters of commendation Public recognition Desirable job assignments Judiciously making exceptions to the rules

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

Limits and exclusions.

Which of the following is used at Hewlett-Packard for building relationships with key players that will determine a project's success?

MBWA

Mandates a discipline that ensures retrospective are used.

Managers of a future project are required to review retrospectives of similar projects. Failure to avoid a problem or use a success noted in a past retrospective has dire consequences.

Which of the following is commonly associated with high-performing project teams?

Mistakes are viewed as opportunities for learning

What is the difference between mitigating a risk and contingency planning?

Mitigating a risk refers to taking action to either reduce the likelihood that a risk (bad event) will happen and/or reduce the impact the risk has on the project. Contingency planning is developing a response if the risk occurs. Mitigating is preventive while contingency is reactive.

When would it be appropriate to create a responsibility matrix rather than a full-blown WBS?

On smaller projects where verbal, face-to-face communication is possible, a responsibility matrix should be adequate. Sometimes a responsibility matrix is used for a segment of a project or one in which a team wishes to stress responsibility.

_______________ focuses on how to respond to events that have a positive impact on a project.

Opportunity management

The integration of the lowest level of the WBS with the organizational units responsible for performing the work is known as

Organization breakdown structure.

Why is it critical to develop a time-phased baseline?

Other systems do not measure how much work is accomplished for the money spent! Hence, without time-phasing cost to match your project schedule, it is impossible to have reliable information for control purposes.

How can outsourcing project work alleviate the three most common problems associated with multi project resource scheduling?

Outsourcing can be used to reduce project slippage, improve utilization of critical resources, and avoid resource bottlenecks. For example, project delays can be avoided by contracting key activities when resources are not available internally. Likewise, hiring consultants to help with Y2K problems allows critical IT people to work on specific problems, while the outsiders work on standard programs. Not only does the project get done on time, but the company avoids hiring IT personnel to meet a short term need.

Which of the following is least likely to be included in a work package?

Overhead expenses

Which of the following is NOT typical of a project manager?

Overseeing existing operations

A professional organization for project management specialists is the

PMI

Janet is forecasting how much money her department needs to support a new project. She estimates that two people and $25,000 in expenses will cover her needs. Because management typically insists on reducing forecasts by 20 percent, she increases her estimates to allow for that reduction. Which of the following factors is illustrated in this situation?

Padding estimates

Activities which can take place at the same time are termed

Parallel activity.

Why is it important to build a relationship before you need it?

People are likely to be more cooperative if they know you, and you have developed a personal relationship with them. When people view you as pleasant, credible, and helpful based on past contact, they are more likely to be responsive to your requests for help and less confrontational when problems arise. The key is building a positive credit in the relationship that you can tap into when you need help.

________ activities must be completed immediately before a particular activity.

Predecessor

Which of the following are included in a Failure Mode and Effects Analysis?

Probability, Impact, Detection, and Risk Value

Which of these is NOT part of the "technical dimension" of project management?

Problem solving

How does the project closure review differ from the performance measurement control system discussed in Chapter 13?

Project closure review is a macro view of project performance as a part of the total organization. Although closure is concerned about current or past performance of the project, project closure is also concerned with assessing organizational culture and support of projects, the project's fit within the total portfolio of projects, project priorities, team performance, and lessons learned. The closure review is intended to include all factors relevant to the project and managing future projects.

Ed is looking over the actual results of projects and comparing them to what was estimated. He notices that the projects that took six months or longer to complete were noticeably more off the estimates. Which of the following factors is he recognizing?

Project duration

Project managers play a key role in developing high-performance project teams. Which of the following is NOT a contributing factor to this role?

Report progress to top management

How does resource scheduling reduce flexibility in managing projects?

Resource scheduling systems usually reduce flexibility because when resources are considered, computer routines use slack to get an "efficient" schedule. When slack is used up, flexibility is lost and the risk of delaying the project increases. If the resource conflict occurs on the critical path, the project is delayed.

How does resource scheduling tie to project priority?

Resource scheduling ties to project priority because resources are limited. Remember, the priority system ranks projects which then determines which project each resource should work on first.

If resources are not adequate to meet peak demands, the resulting reschedule is termed

Resource-constrained scheduling

If a project is small and does not require an elaborate system to assign tasks, which of the following is a good choice?

Responsibility matrix

The risk associated with the unlikelihood that one of the key members will be struck by lightning would most likely be handled by which of the following?

Retaining

An uncertain event or condition that, if it occurs, has a positive or negative effect on project objectives is termed a

Risk

Nancy tells her supervisor that as of right now, $1.05 worth of work has been accomplished for each $1 worth of scheduled work. Nancy got this information from viewing the

SPI

A project manager notices that $1,000 worth of work that was scheduled to be completed at this time has not been accomplished. They know this by looking at the

SV

Schedule variance (SV) is in dollars and does not directly represent time. Why is it still useful?

SV gives a project view of how well all of the scheduled activities are meeting planned dates. Research shows that after twenty percent of a large project is complete, SV is a relatively good indicator of schedule performance (even though it is in dollars or labor hours).

During the delivery phase of a project's life cycle, the most significant source of conflict is

Schedules

Pay Reviews

Since these reviews can result in negative or positive outcomes for a career, they are perceived as very serious by most individuals. These should be more carefully structured and based on clear standards and criteria known to the person being evaluated. Every attempt should be made to avoid confrontation

How does a Tracking Gantt chart help communicate project progress?

The Tracking Gantt chart graphically compares the plan and actual time performance. The bar-chart layout makes it very easy to see differences between planned schedule and actual start, finish and remaining activity times.

How are the work breakdown structure and change control connected?

The WBS and change control are directly linked. Any change from the baseline developed from the WBS needs to be recorded. This link allows management to trace changes and problems directly to deliverables and the organization unit responsible.

The chances of risk events occurring and their respective costs increasing change over the project life cycle. What is the significance of this phenomenon to a project manager?

The chances of risk events and estimated costs changing over the project life cycle are high. These events will impact project change control mechanisms. Moreover, such changes could be significant enough to require changes in scope. The project manager must ensure that these changes are recorded and kept updated. Otherwise the integrity of the project control system will quickly deteriorate and become useless as a management tool.

Which metaphor best captures the role of a project manager?

The conductor of an orchestra

How would a project manager use the CPI?

The cost performance index (EV/AC) is a popular index. An index of .60 indicates that 60 cents of work has been completed for each actual dollar spent. This would suggest to the project manager that the project will be over budget or big savings in remaining work will be needed to bring the project in on budget.

Uses an independent facilitator

The facilitator is held responsible for identifying and implementing lessons learned. Independence encourages gaining more information from stakeholders.

What are the differences between the five-stage model of team development and the punctuated equilibrium model?

The five-stage model asserts that effective project groups evolve in a predictable manner. They progress from forming, storming, norming to performing and conclude by adjourning once the project is about to be completed. The punctuated equilibrium model argues that groups do not naturally evolve into an effective team over time, but encounter a mid-point crisis which forces members to elevate their performance and establish new roles and norms for achieving project objectives. Within the context of the five-stage model, the punctuated equilibrium model suggests that groups begin by combining the forming and norming phases, then go through a period of relatively low-performance, followed by storming, then a period of high-performance, and finally adjourning.

What aspects of project managing are not reflected by this metaphor?

The metaphor fails to capture the intricacies of dealing with all of the project stakeholders government officials, contractors, top management, customers) that impact the project.

How are WBS and project networks linked?

The network uses the time estimates found in the work packages of the WBS to develop the network. Remember, the time estimates, budgets, and resources required for a work package in the WBS are set in time frames, but without dates. The dates are computed after the network is developed.

What does it mean if the priorities of a project include: Time-constrain, Scope-accept, and Cost-enhance?

The project must be completed on a specific date, the scope can be scaled back in order to meet cost and time objectives, and when possible seek opportunities to reduce costs.

Why is it critical to keep the project sponsor informed?

The project sponsor is a powerful ally who uses his/her influence to protect the project when it comes under attack in higher circles of management. Project sponsors need to be kept informed so that they can defend the project to the best of their abilities.

What is an example of a good project objective?

To replace the Willamette Bridge by August 3rd at a cost not to exceed $1.5 million

In practice, estimating processes are frequently classified as

Top down/bottom up.

The amount of time an activity can be delayed and yet not delay the project is termed

Total slack

All task time estimates need consistent time units.

True

Burst activities have more than one activity immediately following them (more than one dependency arrow flowing from them).

True

Contingency funding is made up of budget reserves and management reserves.

True

During the course of a project, it is possible that the project priorities may change.

True

Estimates are supposed to be based on normal conditions. While this is a good starting point, it rarely holds true in real life.

True

Estimates that are typically based on estimates of elements found in the work breakdown structure are called bottom-up estimates.

True

Fixed-price contracts are an example of transferring risk from an owner to a contractor.

True

It is acceptable for arrows to cross one another in a network diagram.

True

It is possible for a project network to have more than one critical path.

True

Lags can be used to constrain the start and finish of an activity.

True

Most people who excel at managing projects never have the title of project manager.

True

One guideline to follow when estimating time, cost and resources is to use several people to make the estimate for a task.

True

One of the defining characteristics of project management is that the projects are not confined to a single department but involve several departments and professionals.

True

There is a strong correlation between project success and clear project scope definition.

True

Top-down estimates usually are derived from someone who uses experience and/or information to determine the project duration and total cost.

True

Which of the following describes the consensus method?

Uses pooled experience of senior and/or middle managers to estimate the total project duration and cost

PCIB

percent complete in terms of budget what percentage of work has been completed to date based on planned budget. a good indicator of how much the project has been completed PCIB= EV/BAC

PCIC

percent complete in terms of expected costs what percentage of work has been completed to date based on revised estimates of total project costs. preferred when you have confidence in revised estimates and/or budget is not fixed. PCIC= AC/EAC

When someone familiar with each task estimates what percent of the task has been completed or how much of the task remains, they are creating a method for assigning costs to the baseline called the

percent complete rule

The earned value of a project is the

percent of the original budget that has been earned by actual work

Which of the eight traits/skills associated with being an effective project manager is the most important? The least important? Why?

personal integrity is important because it leads to trust which facilitates more effective interaction. Alternatively, being a skilled politician is necessary to deal with different stakeholders with conflicting agendas. Students should come to the conclusion that while some traits may be more important than others, all are important to being an effective project manager.

The earned value system starts with the time-phased costs that provide the project baseline, which is called the

planned budgeted value of work scheduled

To provide greater clarity to business ethics, many companies and professional groups

publish a code of conduct

Can you think of another metaphor that might be appropriate?

quarterback, steering wheel, and ship's captain.

Which part of the final report presents major improvement actions that should be made?

recommendations

In terms of commonly traded organizational currencies, providing friendship, giving emotional backing, and listening to others' concerns and issues are examples of _______-related currencies.

relationship

The following are distinguishing characteristics of retrospectives methodology EXCEPT

reviews cannot be linked to the percent complete

EACe

revised cost at completion

VACe

revised estimate cost variance

SPI

schedule performance index is a measure of schedule efficiency on a project a value less than 1 indicates that work on a project is behind schedule a value greater than 1 indicates that work on a project is ahead of schedule SPI= EV/PV

SV

schedule variance: how much work has been done compared with how much should have been done at this point in time negative number indicates work that was supposed to be done at this time has not been done. positive number indicates work that was not supposed to be done by this time has been accomplished. SV= EV-PV

In a resource-constrained project the second priority in assigning resources is usually given to activities with the

smallest duration

Resources are adequate, but demand varies widely over the life of the project. Delaying noncritical activities to lower peak demand on resources is known as resource

smoothing

A high-ranking manager who advocates the project and uses her or his influence to gain approval of the project is a project

sponsor

When project managers recognize that if they want participants to exceed project expectations then they have to exceed others' expectations of a good project manager, they are leading by example through which of the following aspects?

standards of performance

The final step in the project control process for measuring and evaluating project performance is to

take appropriate action

In terms of commonly traded organizational currencies, sharing personnel, undertaking unwanted tasks, and providing technical knowledge are examples of ______-related currencies.

task

Experience and research indicate that high-performance project teams are much more likely to develop under all the following conditions EXCEPT

team members are selected by their managers

PV

the planned time-phased value of the work that is scheduled. BCWS- budgeted cost of the work scheduled

What does the exchange model of influence suggest you do to build cooperative relationships to complete a project?

the primary way to gain cooperation is to provide services and resources to others in exchange for future resources and services (quid pro quo). The key is to find out what you can offer others that is of value to them so that they will feel obligated to reciprocate. Here the notion of influence currencies is useful in identifying different ways to gain cooperation from others. A second key is building a positive "bank account" with those whom you are dependent upon so that they are inclined to cooperate with you.

What differences would you expect to see between the kinds of influence currencies that a project manager in a functional matrix would use and the influence a project manager of a dedicated project team would use?

the project manager of a dedicated team has more formal authority over the participants and the project and, therefore, greater access to influence currencies than the project manager in a functional matrix. For example, the dedicated project manager is responsible for assigning project work, while functional managers do so in a functional matrix. A dedicated project manager will have greater access to position-related currencies. Since dedicated projects are used for high priority projects, the dedicated project manager is likely to develop inspiration-related currencies. Project managers in a functional matrix compensate for their lack of formal authority by exercising informal influence through the use of relationships and personal currencies.

BAC

the total planned value of the project

Regina's boss has told her that her project is very important. If the critical path is delayed, she will be given whatever she needs to get it back on schedule. Her project is classified as ________ constrained.

time

Most of the scheduling methods available today require the project manager to classify the project as either _______ constrained or ______ constrained.

time, resource

TCPI

to complete performance index the amount of value each remaining dollar must earn for the project to stay within budget. a number greater than 1 means there is more work than there is budget left. a number less than 1 means there is less work than there is budget left. TCPI= (BAC-EV) / (BAC-AC)

A successful project manager must build a cooperative, mutually beneficial network generally governed by the law of reciprocity.

true

Conflict is inevitable and can be a desirable part of project work.

true

If organizational priorities have changed so the project no longer supports organizational strategy, the project should be terminated.

true

If resources are truly limited and activity time estimates are accurate, the resource-constrained schedule will materialize as the project is implemented, not the time-constrained schedule.

true

Inspiration-related currencies derive from people's burning desire to make a difference and add meaning to their lives.

true

Managing upward relationships involves project managers become skilled at the art of persuading superiors.

true

Most project managers advocate the use of group rewards rather than individual rewards.

true

One important factor that a project manager must acknowledge when recruiting project members is the management structure being used to complete the project.

true

One important function of mapping dependencies and building a social network is to prevent project managers from being derailed because they were blindsided by someone whose position or power they had not anticipated.

true

Progress and performance can be measured quantitatively as well as qualitatively.

true

Resource bottlenecks are one of the three more common problems encountered in managing multi-project resource schedules.

true

Team members can be upset and dissatisfied with conflict, but as long as the disagreement furthers the objectives of the project, then the conflict is functional.

true

The first step to building a social network is identifying those on whom the project depends for success.

true

The first team meeting sets the tone for how the team will work together.

true

The only accurate method for determining the true time progress of the project is to compare the project network schedule against the actual network schedule to measure if the project is on time.

true

The processes for capturing lessons learned continue to evolve, but there are still barriers to effectively mining lessons learned.

true

To determine if a project is time-constrained or resource-constrained you would consult the project priority matrix.

true

When resource constraints are added to technical constraints the original project network may change as well as the completion date.

true

When revising the estimated cost at completion, there are two approaches. The EACre is determined by experts in the field and the EACf is a mathematical approach which assumes the CPI as the basis for forecasting cost at completion.

true

One advantage of creating a dedicated project team is that it reduces dependencies, especially within the organization.

tue

What questions does a project have to answer?

what, when, and how much

On a project network, the activity times are derived from the

work packages

Project budgets are developed by time-phasing which of the following?

work packages

Projects should align with the organization's overall strategy in order to

Reduce waste of scarce resources.

Explain the risks associated with leveling resources, compressing or crashing projects, and imposed durations or "catch-up" as the project is being implemented.

Flexibility is decreased and risk of delay is increased. For example, slack is used up and may cause other bottlenecks later in a sequence of activities. Having time buffers at merge points before the project begins could help avoid some of the need to crash activities. Decoupling critical activities can help to cut time if decoupling is possible and resources can be shifted; however, the risk is typically reduced only slightly.

One common mistake made early in the risk identification process is to

Focus on consequences and not on the events that could produce consequences

Which of the following is NOT considered to be a characteristic of a project?

For internal use only

An expected output over the life of a project would be classified as

A deliverable

Which of the following represents an activity on an activity-on-node (AON) project network?

A node

What is the difference between avoiding a risk and accepting a risk?

Avoiding a risk is changing the project plan in advance so as to eliminate specific risks from occurring while accepting a risk means no preventive action is taken; contingency plans may be used if the risk materializes.

Refining estimates may be necessary for a number of reasons. For example, people working on prototype development needing time to interact with the design engineers after the design is completed is a good example of

Hidden interaction costs.

Which of the following does NOT help describe a project network?

Highlights major deliverables and identifies their completion dates

Which of the following activities is NOT considered a project?

Production of automobile tires

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

Program

Resource leveling or smoothing can have all the following results on a project EXCEPT

a longer project duration

Only activities that occur at the end of a chain of activities can have free slack.

False

Performance bonds, warranties, and guarantees are financial instruments used to share risk.

False

Responses to all identifiable risks should be a top priority for the project manager.

False

Scope creep occurs when your project is completed over-budget.

False

Since a construction company builds many buildings, the buildings built after the first do not fit the definition of a project.

False

The first stage in the project life cycle is the concept stage.

False

Present six reasons scheduling resources is an important task.

Check if existing resources are adequate and available Decide which resources have priority Assess the impact if another project is added to the pool Determine where the real critical path is. Are there unforeseen dependencies? See what happens to the risk of being late if slack is used up developing a schedule Decide if outside contractors have to be used Decide if an imposed project duration is realistic

In the _____________ stage of the project life cycle project the product is delivered to the customer and resources are reassigned.

Closing

There are 5 steps involved when defining a project; which of the following is the last?

Code the WBS for tracking

Companies are using which of the following for improving the estimating process for future projects?

Creating historical databases of previous projects

When considering risk value, the lower the value, the higher the level of risk.

False

Work package estimates should include allowances for contingencies.

False

The _________ is used to assist in making project trade-offs among schedule, budget, and performance objectives.

Project priority matrix

Project risks can/cannot be eliminated if the project is carefully planned. Explain.

Project risks cannot be eliminated. It is impossible to be aware of all things that might happen when a project is being implemented. Undesirable events identified before the project begins can be transferred, retained/reduced, or shared. Contingency plans with trigger points and responsibility should be established before the project begins.

In the _____________ stage of the project life cycle, project objectives are established, teams are formed, and major responsibilities are assigned.

Defining

Which of the following is a good example of a program?

Developing a new residential area that includes six custom homes

The salary of the project manager would be an example of what type of cost found in a project?

Direct project overhead

What are the major differences between managing negative risks versus positive risks (opportunities)?

Essentially the same process that is used to manage negative risks is applied to positive risks. The major differences occur in the responses. Instead of avoiding negative risks, project managers often try to exploit positive risks by taking action to ensure that the opportunity occurs. Instead of transferring risks to another party, project managers often share positive risks to increase the likelihood the opportunity can be exploited. Instead of mitigating negative risks, project managers will take action to enhance the likelihood the opportunity will occur and/or increase the positive impact of the opportunity. Finally, project managers will often choose to accept both negative and positive risks, but be prepared to respond if either occurs.

In the _____________ stage of the project life cycle, a major portion of the physical project work performed.

Executing

A major portion of the project work, both physical and mental, takes place during the production stage of the project life cycle.

False

An expected output over the life of a project would be classified as a target.

False

Because of its flexibility, project management is equally useful in ongoing, routine work as well as unique, one-time projects.

False

Because of the profitability motive, project management is nearly always limited to the private sector.

False

Enhancing a risk is a tactic that seeks to eliminate the uncertainty associated with an opportunity to ensure that it definitely happens.

False

If the project has a duration of 13 days, the project should be completed 13 days from the day it starts.

False

If the project time should be accepted, then the project must be completed on time.

False

The risk management tool that is divided into three color-coded zones representing major, moderate, and minor risks is the risk

Severity matrix

The chances of a risk event occurring as a project proceeds through its life cycle tend to

Slowly drop

Concurrent engineering, which has dramatically reduced the development time for new products, relies on what kind of lag?

Start to Start lags

"To construct a high-quality, custom home within five months at costs not to exceed $150,000" is best classified as

an objective

Project success or failure often is reliant upon the contributions of all of the following groups of stakeholders EXCEPT

competitors

A lack of readily available engineers is a technical constraint.

false

Since resource leveling or smoothing delays noncritical activities, a common result is a decrease in network sensitivity.

false

Splitting is a scheduling technique used to get a better schedule or better resource utilization and should be used without hesitation.

false

When a company will reduce the number of projects they have to manage internally to only core projects and send noncritical projects to contractors and consulting firms this is called

outsourcing

Rachel is working on a project that technically allows three activities to be done at the same time. If they were to be implemented at the same time, she would need 5 contractors in order for the activities to be completed on time. There are only 3 available for her to use. This is an example of what type of constraint?

people

Sam, the project engineer, has been scheduled to run the product system test at the same time he is to build a marketing prototype. This is an example of what type of resource constraint?

people

Susan is to conduct environmental testing but the chamber cannot hold all the equipment that she wants to test. This is an example of a constraint that could impact the sequence and timing of activities in a project network. What type of constraint is it?

physical

Why is governance management important in today's environment?

Governance is most frequently used to balance resources and risk over all organizational resources. It also used to enforce or alter priorities and to ensure project align with organizational strategies and goals. In today's fast-paced world priorities can change quickly and can impact in process projects.

What is the impact of governance to managing an individual project?

Governance signals to the project manager that decisions at a higher level can impact management of an individual project. Reviews (called "Gating") during project implementation assess current performance and priorities and decide to continue, halt, hold, or revised that project.

The initial step in the risk management process is to

Identify the risks

What are the likely outcomes if a change control process is not used? Why?

If a change control process is not used, budgets and plans will self-destruct quickly. Tracking changes facilitates control and accountability of budgets and time. In addition, change control allows for coordination of changesfurther on in the project.

AC

actual cost of the work completed (ACWP)

During which stage of team development is high performance not a top priority and attention is devoted to wrapping up the project?

adjourning

A project monitoring system involves all of the following EXCEPT

adjusting the data

The outer ring in the network of relationships for project managers includes all of the following EXCEPT

administrative support

Once you have established who the key players are that will determine success, then you initiate contact and begin to build a relationship with those players. Less effective managers

announce an open door policy and encourage others to see them when a problem or issue comes up

Performance Reviews

are intended to encourage changes in behavior, encourage career development, and support continuous organizational learning. These reviews focus on social and technical contributions the individual contributed to the project team. For example, the 360- degree feedback process has been used successfully to improve the ability of people to work on teams. As long as performance reviews are not directly related to pay and promotion decisions, such reviews are more readily accepted and even perceived as positive for the individual and organization.

Why bother creating a WBS?

because it is designed to provide different information for decision making

Why not go straight to a project network and forget the WBS?

because it provides: - Link deliverables, organization units, and customer - Provide for control - Isolate problems to sourced.Track schedule and cost variance. Network doesn't - Assign responsibility and budgets - Focus attention on deliverables - Provide information for different levels in the organization.

Why is slack so important to the project manager?

because it represents the degree of flexibility the project manager will have in rearranging work and resources. A project network with several near critical paths and hence, little slack, gives the project manager little flexibility in changing resources or rearranging work.

The technical and sociocultural dimensions of project management are two sides to the same coin...

because successful project managers are skillful in both areas. The point is successful project managers need to be very comfortable and skillful in both areas.

Of the following costs, which are NOT included in baseline?

budget reserves

Managing a project and leading a project are two different things. Project leadership is about coping with

change

The third step in the project control process for measuring and evaluating project performance is to

compare the plan against actual performance

CPI

cost performance index is a measure of cost efficiency on a project a value less than 1 indicates a cost overrun. a value greater than 1 indicates cost savings. CPI= EV/AC

CV

cost variance adjusted budget costs to the actual spent costs negative number indicates over budget and positive number indicates under budget need to know % over budget to indicate magnitude CV = EV-AC

EV

earned value is simply percent complete times its budgeted cost of the work EV= % complete * PV BCWP- budgeted cost of the work performed

The process of forecasting or approximating the time and cost of completing project deliverables is called

estimating

Which of the following is NOT a wrap-up closure activity that might be found on a checklist?

evaluation of team performance

Because of circumstances beyond the control of the project team, many projects are easy for a review group to close down. This type of project closure is called

failed project

A CPI index of 0.97 indicates that the project has spent less money than budgeted.

false

A project closure where the project is completed early with some parts of the project eliminated would be classified as a failed project.

false

A project control system allows for comparing actual performance against plan to identify deviations; however, the system doesn't impact the quality of communication between stakeholders.

false

A project manager would be glad to see a TCPI of 1.07.

false

Baseline costs typically include labor, equipment, materials and direct overhead cost.

false

Every project has the same potential to evolve into a high-performance team.

false

Going native is the ability that some project teams have to bypass the normal policies and procedures that everyone in the organization is supposed to follow.

false

In most cases, if someone can manage a project well, then they are also a great leader.

false

It is impractical for a subordinate to "manage" a superior.

false

Project managers should, when possible, draw comparisons to other team members when conducting individual team member reviews.

false

The PV, AC and CV are all required to assess the current status of the project.

false

When facilitating group decision making, a project manager should identify a problem in terms of its alternate solutions so that team members can more easily reach a decision on how to solve the problem.

false

VAC

forecasted cost variance

EACf

forecasted estimate cost at competition EACf= AC + [(BAC - EV) / CPI]

During which stage of team development do team members establish ground rules and try to find out what behaviors are acceptable and what performance expectations are?

forming

Which of the following can be used without coordinating with managers of succeeding activities?

free slack

Which of the following is NOT a role of the closure facilitator?

get delivery acceptance from the customer

Which of the following groups of stakeholders place constraints on project work such as requiring permits to be secured, that work is built to code, or that safety standards are met?

government agencies

Before an evaluation of the project team can be effective and useful, a minimum core of conditions needs to be in place before the project begins. Which of the following would NOT be one of those conditions?

individuals have the skill set necessary to complete the project

Learning curves are more likely to be applied in situations where most of the costs are

labor

Refining estimates may be necessary for a number of reasons. For example, resource shortages, in the form of people, equipment, or materials, can extend original estimates. This is a good example of

normal conditions not applying.

Each retrospective is assigned a(n) _________, typically a team member who is very interested in and familiar with the retrospective. This individual will serve as the contact point for anyone needing information relating to the retrospective.

owner

Jose is looking at a document that outlines the specific deliverables and subdeliverables required to complete the writing of a technical support manual. He is most likely viewing the

Work breakdown structure.

Why should a project manager emphasize group rewards over individual rewards?

Because most project work is a collaborative effort, it makes sense that the reward system encourages teamwork. Recognizing individuals can distract from team unity. Because project work is interdependent it can be very difficult to distinguish who truly deserves individual credit. Group cohesion can be undermined if members feel that others are receiving special treatment. Camaraderie can vanish, to be replaced by bickering and obsessive preoccupation with internal group politics. Such distractions can absorb a tremendous amount of energy that would otherwise be directed to completing the project. Individual rewards should only be used when there is clear agreement that a member deserves special recognition.

Explain the difference between budget reserves and management reserves.

Budget reserves are established to cover identified risks that occur while implementing a project work package or activity. If the risk does not materialize, the funds are removed from the budget reserve. The management reserve covers unforeseen risks and applies to the total project. These reserves are usually controlled by top management, the owner, and/or the project manager. Budget and management reserves are independent of each other.

What can a project manager do to avoid some of the pitfalls of a highly cohesive project team?

First, project managers need to be aware that there is a potential downside to a highly cohesive team and be able to recognize the symptoms associated with the pathologies described in the chapter. Second, they can take preemptive action to reduce the isolation of the team by encouraging the maintenance of ties with the rest of the organization as well as with other project stakeholders. Third, they can personally reinforce the connection between the project and the mission and policies of the parent organization. They can also encourage functional conflict and discourage the group from developing a "holier than thou" attitude. They can also use the nominal group technique to encourage the surfacing of dissenting opinions. Finally, they can hold formal team-building sessions to identify and eliminate dysfunctional norms and refocus the team's attention on project objectives.

When would it be appropriate to hold a formal team-building session on a project?

Formal team-building sessions should be used whenever it is believed that such activities will enhance the performance of the project team. This would especially be true at the beginning of a project when the session would help develop a team identity among a group of strangers. Likewise, team-building activities could be used to assimilate new project members once the project is underway. Devoting time and attention to team-building would also be appropriate when the project team is experiencing problems working together or needs to elevate its performance to meet new project demands. The sessions would be useful in identifying and changing dysfunctional behavior as well as re-energizing the team to higher levels of performance. One mistake project managers make is that they resort to formal team-building activities after they realize the team is in trouble. It might be wiser to utilize team-building sessions earlier to encourage collaboration and to prevent small problems from escalating into major problems within the team.

________ activities are to be completed immediately following a particular activity.

Successor

Develops a repository that is easy to use

Such a repository is a basic requirement of retrospective methodology. Typically, this repository is an electronic search engine that allows the client to selectively search by project characteristics.

Which of the following methods is NOT considered a top-down approach to estimating project time and cost?

Template

Which of the following activities is the best example of a project?

Writing a policy manual

Why is it important for project managers to resist changes to the project baseline? Under what conditions would a project manager make changes to a baseline? When would a project manager not allow changes to a baseline?

The usefulness and integrity of the baseline, as a mechanism for monitoring progress and tracing back to the problem, can be eroded by constant changing of the baseline. Therefore, changes in baselines should be limited to major scope changes— for example, when the project will fail or the change represents a significant improvement of the project. Customers can request scope changes. Internally scope changes can come from project personnel-- e.g, significant design changes to improve a product. Natural disasters can force a baseline change. Sometimes the complete elimination of a cost account can result in a baseline change. Don't change for small changes such as price and planning errors. Changes to "improve performance" should not change a baseline. Changes should not occur after a work package or cost account is complete.

The essence of positive synergy can be found in the phrase

The whole is greater than the sum of the parts.

What are the elements of an effective project vision? Why are they important?

There are four key elements to an effective vision. First, the vision must make strategic sense. Second, one must be able to communicate it to others. Third, the project leader must have a personal passion to achieve it. Finally, the vision should inspire others to give optimal effort. The vision must make strategic sense; other wise others will not see it as appropriate or realistic. One must be able to communicate the vision to others so that they understand it and choose to pursue it. The project manager must have a passion to achieve the vision so that it is seen as being credible and has the full support of the project manager. Finally, visions motivate superior performance and therefore must be a source of inspiration to others.

What are the unique challenges of managing a virtual project team?

There are many challenges associated with managing a spatially separated, virtual team. Two of the biggest challenges are developing trust within the team and effective communication patterns. People tend to find it difficult to trust someone whom they have met one or two times or not at all. Furthermore, unlike when members work side by side and can readily assess the competence and effort displayed by fellow team members, the actions of distant members are not visible. Finally, physical separation prohibits informal socializing that contributes to trust among participants. Reliance on electronic, as opposed to direct communication, can be problematic. Managers not only have to overcome time zone differences and cross-cultural variations, but they are missing visual cues that contribute to effective communication

Why is a conductor of an orchestra an appropriate metaphor for being a project manager?

There are many parallels between conducting an orchestra and managing a project. Conductors and project managers integrate the contributions of others. Each is dependent upon the expertise and talents of others. They facilitate performance rather than actually perform. Project managers orchestrate the completion of the project by inducing participants to make the right decision at the right time. Both control the pace and intensity of work by coordinating the involvement of players. Finally each has a vision of performance that transcends the music score or project plan

Includes a minimum of three in-process learning gates during the life project cycle.

These gates catch problems and success during project execution (while the project is in flight). Corrective action can be taken immediately

Which of the following does NOT help describe a bottom-up estimating approach?

They are made by someone who uses experience and/or information from someone else to determine overall project cost and duration

The project manager must quickly establish operational ground rules for how the team will work together. These include planning, tracking, managing change, and relationship decisions. Which of the following is an example of a planning decision?

What are the specific roles and responsibilities of all the participants?

How is project scope defined?

What you expect to deliver to your customer when the project is complete

Researchers have found that high-performance teams have norms for team interaction. Which of the following is NOT one of those norms?

When a decision has to be made, everyone should agree before moving forward

Which of the following would be an appropriate situation to require facilitating group decision making?

When strong group commitment is needed to decide methods to reduce project scope

Why are accurate estimates critical to effective project management?

Without accurate times and cost estimates project control is ineffective. Inaccurate estimates can make the difference between profit or loss.

Which of the following is NOT one of the items that would appear on a project scope statement or checklist?

Work breakdown structure