Chapter 4

What term is used for the minimum acceptable rate of return on an investment?

required rate of return

A Gantt chart is the same as a project management plan.

False

A SWOT analysis, being a linear process, cannot be performed using the nonlinear mind mapping technique.

False

An organization's information technology project selection process should guide the strategic plan.

False

It is necessary that IT project managers have prior technical experience in creating and managing IT products.

False

Opportunities and directives are essentially the same thing.

False

Project integration management must occur just within the context of a particular project.

False

The ROI is always positive.

False

The number of interfaces in a single project is limited, and does not depend on the number of people involved in the project.

False

The organization should complete low-priority projects before high-priority ones, if the low-priority ones take less time.

False

Which section of the project management plan describes specific methodologies a project might use and explains how to document information?

Technical Processes

A summary of the planned approach for managing the project should describe stakeholder needs and expectations, important assumptions, and constraints.

True

As projects progress, the organization must reevaluate the need, funding, and will for each project to determine if the project should be continued, redefined, or terminated.

True

In project integration management, directing and managing project execution involves carrying out the project management plan by performing the activities included in it.

True

Interface management involves identifying and managing the points of interaction between various elements of a project.

True

Organizational process asset updates are an important output of the closing process of a project.

True

Projects that arise as a result of problems and directives must be resolved quickly to avoid hurting an organization's business.

True

Some organizations initiate projects using a contract in place of a project charter.

True

What is the first step in the planning process?

tie the information technology strategic plan to the organization's overall strategic plan

What document used to coordinate all project planning documents and help guide a project's execution and control?

Project Management Plan

Which process includes defining project scope, benefits, and constraints?

Project planning

Which section of the project plan lists the planned dates for completing key deliverables?

Schedule

Information systems can help an organization support a strategy of being a low-cost producer.

True

NPV analysis is a method for making equal comparisons between cash flows for multi-year projects.

True

In a weighted scoring model, what percent must the sum of the weights of all the criteria total?

100

An IT company revises its process parameters in response to complaints from vendors that products were not ready on time. Which is this an example of?

A corrective action

Which section of the project management plan provides the planned cost of deliverables?

Budget

What term is used for benefits minus costs?

Cash Flow

What process involves identifying and controlling the functional and physical design characteristics of products and their support documentation, and ensures that the descriptions of the project's products are correct and complete?

Configuration management

What actions result in improvements in project performance?

Corrective

Which process involves working with stakeholders to create the document that formally authorizes a project?

Developing the project charter

What statement is true regarding a return on investment or ROI?

It is always a percentage

Which is an example of an organizational process asset?

Management Systems

What type of analysis involves calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time?

Net Present Value

Which document recognizes the existence of a project and provides direction on the project's objectives and management?

Project Charter

Which term is used for a formal, documented process that describes when and how official project documents may be modified, the people authorized to make modifications, and the paperwork required for these changes?

change control system

What is the first step in determining the NPV?

determine the estimated costs and benefits for the life of the project and the products it produces

Corrective actions reduce the probability of negative consequences associated with project risks, while preventive actions should result in improvements in project performance.

False

A project charter typically does not authorize the project manager to use organizational resources to complete the project.

False

An organization should consider only projects with a negative NPV if financial value is a key criterion for project selection.

False

Payback period is the amount of time it will take to recoup, in the form of net cash inflows, the total dollars invested in a project.

True

When does payback occur?

When the net cumulative benefits equal the net cumulative costs