Project Management Chapter 4
c. directive
A new government law requires an organization to report data in a new way. Which of the following categories would include a new information system project to provide this data? a. problem b. opportunity c. directive d. regulation
c. 20 percent
If estimates for total discounted benefits for a project are $120,000 and total discounted costs are $100,000, what is the estimated return on investment (ROI)? a. $20,000 b. $120,000 c. 20 percent d. 120 percent
Analyzing Strengths, Weaknesses, Opportunities, and Threats; used to aid in strategic planning
SWOT analysis
d. resource allocation
What is the last step in the four-stage planning process for selecting IT projects? a. IT strategy planning b. business area analysis c. mind mapping d. resource allocation
c. expert judgment
What tool and technique is used for all processes of project integration management? a. project management software b. templates c. expert judgment d. all of the above
New requirements imposed by management, government, or some external influence
directives
A multiplier for each year based on the discount rate and year
discount factor
The rate used in discounting future cash flow; also called the capitalization rate or opportunity cost of capital
discount rate
Identifying, evaluating, and managing changes throughout the project life cycle
integrated change control
Identifying and managing the points of interaction between various elements of a project
interface management
The discount rate that results in an NPV of zero for a project
internal rate of return (IRR)
A technique that uses branches radiating from a core idea to structure thoughts and ideas
mind mapping
A method of 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 (NPV) analysis
Chances to improve an organization
opportunities
The rate used in discounting future cash flow; also called the capitalization rate or discount rate
opportunity cost of capital
Formal and informal plans, policies, procedures, guidelines, information systems, financial systems, management systems, lessons learned, and historical information that can influence a project's success
organizational process assets
The amount of time needed to recoup the total dollars invested in a project, in terms of net cash inflows
payback period
Undesirable situations that prevent an organization from achieving its goals
problems
A document that formally recognizes the existence of a project and provides direction on the project's objectives and management
project charter
Processes that coordinate all project management knowledge areas throughout a project's life, including developing the project charter, developing the preliminary project scope statement, developing the project management plan, directing and managing the project, monitoring and controlling the project, providing integrated change control, and closing the project
project integration management
A document used to coordinate all project planning documents and guide project execution and control
project management plan
The minimum acceptable rate of return on an investment
required rate of return
A method for determining the financial value of a project; the ROI is the result of subtracting the project costs from the benefits and then dividing by the costs
return on investment (ROI)
Determining long-term objectives by analyzing the strengths and weaknesses of an organization, studying opportunities and threats in the business environment, predicting future trends, and projecting the need for new products and services
strategic planning
A technique that provides a systematic process for selecting projects based on numerous criteria
weighted scoring model
a. project charter
A ______ is a document that formally recognizes the existence of a project and provides direction on the project's objectives and management. a. project charter b. contract c. business case d. project management plan
b. selecting projects that will take less than two years to provide payback
Which of the following is not a best practice for new product development projects? a. aligning projects and resources with business strategy b. selecting projects that will take less than two years to provide payback c. focusing on customer needs in identifying projects d. assigning project managers to lead projects
b. minimize change
Which of the following is not a suggestion for performing integrated change control? a. use good configuration management b. minimize change c. establish a formal change control system d. view project management as a process of constant communication and negotiation
d. a Gantt chart
Which of the following items is not normally included in a project charter? a. the name of the project manager b. budget information c. stakeholder signatures d. a Gantt chart
a. developing the project business case
Which of the following processes is not part of project integration management? a. developing the project business case b. developing the project charter c. developing the project management plan d. closing the project or phase
a. Configuration management
______ ensures that the descriptions of the project's products are correct and complete. a. Configuration management b. Integrated change control c. Integration management d. A change control board
A methodology that converts an organization's value drivers to a series of defined metrics
balanced scorecard
The approved project management plan plus approved changes
baseline
Tools that help track the execution of business process flows and expose how the state of supporting IT systems and resources affects endto- end business process performance in real time
business service management (BSM) tools
The rate used in discounting future cash flow; also called the discount rate or opportunity cost of capital
capitalization rate
Benefits minus costs or income minus expenses
cash flow
A formal group of people responsible for approving or rejecting changes on a project
change control board (CCB)
A formal, documented process that describes when and how official project documents may be changed
change control system
A process that ensures that the descriptions of a project's products are correct and complete
configuration management
The return available by investing capital elsewhere
cost of capital