project management chapters 9-11 quizzes & extra questions

Consider the time-phased budget presented in Figure 9-1. What is the cumulative project budget through the end of April? $38,000 $ 8.000 $20,000 $46,000

$46,000

When planning risk responses, the strategy of changing the project management plan to eliminate the risk is known as: A. Avoidance. B. Mitigation. C. Acceptance. D. Transference.

A. Avoidance

Which of the following is the MOST likely cause of poor risk management? A. Lack of a prioritized list of risks B. Poor risk monitoring and control C. Lack of detail in the project scope statement D. Inadequate risk response planning

A. Lack of a prioritized list of risks

All of the following are ALWAYS inputs to the risk management process EXCEPT: A. Project status reports. B. Work breakdown structure. C. Lessons learned. D. Historical information.

A. Project status reports.

The outputs of the Plan Risk Responses process include risk response plans, risk owners assigned, and: A. Residual risks. B. Probability of achieving cost objectives. C. Closed risks. D. Probability and impact matrix.

A. Residual Risks

Which of the following describes the appropriate use of a cause-and-effect diagram to support project risk analysis? Although effects are more visible, it is often easier to alter the effect by changing the underlying cause. The project team begins by identifying strengths, weaknesses, opportunities and threats. Assumptions and constraints are organized in a fishbone pattern. Team members are encouraged to keep asking "when?" to break down risks into more detailed causes. Although effects are more visible, it is often easier to alter the effect by changing the underlying cause.

Although effects are more visible, it is often easier to alter the effect by changing the underlying cause.

During which DMAIC phase would you find the objectives of identify possible root causes, collect data, and confirm root causes through data analysis? Analyze Define Improve Measure

Analyze

What is the difference between management reserves and contingency reserves? A. Contingency reserves address known knowns, wheareas management reserves address known unknowns. B. Contingency reserves address known unknowns, whereas management reserves address unknown unknowns. C. Contingency reserves are managed by senior management, whereas management reserves are managed by the project manager. D. Contingency and management reserves both address known unknowns and could be considered the same.

B. Contingency reserves address known unknowns, whereas management reserves address unknown unknowns.

Executing risk response plans in order to react to risk events throughout the project is called: A. Mitigation. B. Control. C. Contingency planning. D. Life cycel costing.

B. Control

Allocating ownership of a risk to a third party who is best able to capture the opportunity is an example of _____ the risk. A. Exploiting B. Sharing C. Accepting D. Enhancing

B. Sharing

Consider the excerpt of the Internet Project risk register presented in Figure 10-1. Which of the following risk events should receive the highest priority for the development of risk responses? B - web infrastructure lacks sufficient transaction capacity A - project requires new technology and support structure D - The intranet site suffers a security breach C - IS resources are spread too thin

C - IS resources are spread too thin

Two people are in the process of estimating probabilities for each of their identified risks. Which step of risk management is this? A. Plan Risk Responses B. Identify Risks C. Perform Qualitative Risk Analysis D. Control Risks

C. Perform Qualitative Risk Analysis

Outputs of the Plan Risk Responses process include: A. Secondary risks, process updates, and risk owners. B. Risk triggers, contracts, and a risk list. C. Residual risks, fallback plans, and contingency reserves. D. Contingency plans, project management plan updates, and a sensitivity analysis.

C. Residual risks, fallback plans, and contingency reserves.

A source of variation that is inherent in a system and predictable is typically known as: common cause variation. special cause variation. life cycle variation systemic variation.

Common cause variation

Workarounds are determined during which risk management process? A. Identify Risks B. Perform Quantitative Risk Analysis C. Plan Risk Responses D. Control Risks

D. Control Risks

Purchasing insurance is BEST considered an example of risk: A. Avoidance. B. Acceptance. C. Mitigation. D. Transfer.

D. Transfer.

A risk management plan should define who has responsibility for causing each risk and hold the re- sponsible party directly accountable for developing an appropriate solution True False

False

Plan Risk Responses is the process of developing options to enhance opportunities and reduce threats for every risk that has been identified. False True

False

Recurring costs tend to occur during project planning and closing while nonrecurring costs tend to occur during project execution. True False

False

The cost per risk for risks discovered early in the project is often more than the cost per risk for risks discovered late because there is more opportunity for the risk to impact several dimensions of the project. True False

False

The primary output of risk identification is the Risk Identification Matrix (RIM). True False

False

The process of deciding how to approach, plan and execute risk management activities for a project is known as Project Risk Absorption Methodology (PRAM) True False

False

The process of determining which risks might affect the project and documenting their characteristics is known as risk charting True False

False

W. Edwards Deming asserted that managers need to understand both serial variation and sequential variation and then work to reduce both True False

False

When the impact of an event is negative, it is considered a risk; when the impact is positive, the event is considered an opportunity True False

False

All of the following statements accurately describe special cause variation EXCEPT: It comes from external sources It can be quite unpredictable It is inherent in the system and is predictable It is not inherent in the system

It is inherent in the system and is predictable

All of the following items describe an aspect of life cycle costing EXCEPT: Life cycle cost includes the cost of creating the project and using the result. Project managers may need to consider product disposition costs to calculate total life cycle cost. Life cycle cost only includes the project cost from initiating through closing Many project selection decisions are made based upon life cycle cost.Life cycle cost only includes the project cost from initiating through closing

Life cycle cost only includes the project cost from initiating through closing

All of the following are among the classic risk response strategies EXCEPT: enhance an opportunity avoid a threat share a threat transfer a threat

Share a threat

All of the following items are among the key areas covered by the Malcolm Baldrige National Quality Award EXCEPT: Strategic planning Team Learning Leadership Customer focus

Team Learning

Which of the following describes the activities appropriately performed by the project team during Perform Qualitative Risk Analysis? Team members define how to conduct risk management activities for the project. Team members assess the probability of occurrence and severity of impact for identified risks. Team members identify potential risk events. Team members develop contingency plans for all risks to avoid adverse impacts to project objectives.

Team members assess the probability of occurrence and severity of impact for identified risks.

All of the following reasons explain why it is better to design quality into processes than to find problems through inspections EXCEPT: The time spent on rework aggravates time pressures that already exist on projects. Some mistakes are likely to reach the customer. The cost of rework can be expensive. The best inspectors should find every variation and defect

The best inspectors should find every variation and defect

Which of the following activities are typically included in a project kick-off meeting? The project manager evaluates team member performance. The project manager outlines the project goals. The project sponsor brings in a facilitator to conduct a brainstorming exercise The project team collects lessons learned for use on future projects.

The project manager outlines the project goals.

A risk is anything that may impact the project team's ability to achieve the general project success measures and the specific project stakeholder priorities True False

True

DMAIC is typically used as a method of implementing continuous improvement and can thus be practiced repeatedly within a single process to further improve process performance True False

True

Estimate cost is the process of developing an approximation of the monetary resources needed to complete project activities. True False

True

Fact-based management requires an understanding of variation, deciding what to measure, working correctly with data, and using the resulting information appropriately. True False

True

It is impossible to remove all sources of risk on a project. False True

True

It is impossible to remove all sources of risk on a project. True False

True

Most projects will employ bottom-up estimating at some point to serve as a basis for estimating cash flow needs and for controlling the project. False True

True

On many small, simple projects the quality planning is performed concurrently with other planning and the quality plan is seamlessly incorporated into the project plan. False True

True

On many small, simple projects the quality planning is performed concurrently with other planning and the quality plan is seamlessly incorporated into the project plan. True False

True

Once risks have been identified and analyzed, the project team decides how they will handle each risk. True False

True

Perform Quantitative Risk Analysis is the process of numerically analyzing the effect of identified risks on overall project objectives. True False

True

Project stakeholders will judge the quality of project work processes as well as project deliverables. False True

True

Project stakeholders will judge the quality of project work processes as well as project deliverables. True False

True

Special cause variation arises when something out of the ordinary occurs. True False

True

The International Organization for Standardization developed a quality management standard that relies upon several quality management areas including management, resources and realization True False

True

The purpose of process control is to be able to have confidence that outputs are predictable. True False

True

The quality management plan describes how the project management team will implement the performing organization's quality policy True False

True

The risk register is a living document and new risks can be added as they are discovered. False True

True

W. Edwards Deming argued that managers must understand cause and effect relationships to predict future behavior. True Falso

True

ix Sigma is a quality improvement approach that is particularly suited for many service processes that people had previously said were too difficult if not impossible to measure. True False

True

Fact-based management includes four key ideas. Which of the following is among the key ideas associated with fact-based management? a. the need to understand variation b. reliance on historical research c. routine use of interrogations d. use of analogous estimating

a. the need to understand variation

All of the following criteria can be used to categorize project risks EXCEPT: a. whether the risk is a known known b. the project objective that may be impacted by the risk c. whether the risk is internal or external to the performing organization d. the project life cycle phase

a. whether the risk is a known known

Which estimating technique uses historical data from a similar project as a starting point for creating a time or cost estimate? Monte Carlo estimating parametric estimating analogous estimating bottom-up estimating

analogous estimating

A source of variation that is inherent in a system and predictable is typically known as: a. special cause variation. b. common cause variation. c. systemic variation. d. life cycle variation

b. common cause variation.

The four core project quality concepts include which of the following? a. assumption-based management b. stakeholder satisfaction c. benchmarking d. Earned Value management

b. stakeholder satisfaction

DMAIC is a disciplined process that includes five phases: Define, Measure, Analyze, Improve and Control. DMAIC is most typically associated with which of the following quality improvement approaches? a. Quality circles b. Total Quality Management (TQM) c. Six Sigma d. ISO 9001:2008

c. Six Sigma

The decision process for developing relevant quality standards on a project includes all of the following activities EXCEPT: a. identify all stakeholders b. understand the prioritized stakeholders' requirements c. design work systems d. make tradeoff decisions

c. design work systems

All of the following reasons explain why it is better to design quality into processes than to find problems through inspections EXCEPT: a. The cost of rework can be expensive. b. The time associated with rework aggravates time pressures. c. Some mistakes are likely to reach the customer. d. The best inspectors should find every variation and defect

d. The best inspectors should find every variation and defect

What type of cost is incurred when a project must be conducted faster than normal, and overtime for workers and / or extra charges for rapid delivery from suppliers are necessary? nonrecurring costs marginal costs variable costs. expedited costs

expedited costs

Activity based costing allocates indirect costs to fixed costs based on different types of cost drivers. Which of the following is one of the cost drivers that serve as a basis of cost allocation? direct equipment costs quantity of materials used number of labor hours number of units produced

number of units produced

All of the following activities illustrate a risk response strategy designed to exploit an opportunity EXCEPT: give the project more visibility purchase insurance assign more or better resources identify trigger condition

purchase insurance

Which of the following documents describes how the project team will implement the performing organization's quality policy? quality audit plan quality control plan quality benchmarking plan quality management plan

quality management plan

Costs that repeat as project work continues such as writing code are appropriately classified as: fixed costs. nonrecurring costs. indirect costs. recurring costs

recurring costs