Project Management Test 1 Chapter 4

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

False Some people like to perform a SWOT analysis by using mind mapping, a technique that uses branches radiating from a core idea to structure thoughts and ideas.

T or F Projects that address broad organizational needs are likely to fail.

Methods for selecting projects Focusing on broad organizational needs Categorizing information technology projects Performing net present value or other financial analyses Using a weighted scoring model Implementing a balanced scorecard

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

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

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

True Many of these can be low-cost producers such as Samsung.

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

False Project integration management must occur within the context of the entire organization, not just within a particular project. The project manager must integrate the work of the project with the ongoing operations of the organization.

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

True Directing and managing project work involves carrying out the project management plan by performing the activities included in it. The outputs of this process are deliverables, work performance information, change requests, project management plan updates, and project documents updates.

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

True Instead of project charters, some organizations initiate projects using a simple letter of agreement, while others use much longer documents or formal contracts.

T or F An organization's information technology project selection process should guide the strategic plan.

False Aligning IT projects with business strategy is consistently a top concern for CIOs. Most organizations face thousands of problems and opportunities for improvement. Therefore, an organization's strategic plan should guide the IT project selection process.

T or F Change requests are always made in writing.

False Change requests are common on projects and occur in many different forms. They can be oral or written, formal or informal.

T or F The ROI is always positive.

False Costs can be entered as negative numbers and can be listed first (and then benefits)

T or F An annual discount factor is a multiplier for each year based on the discount rate and year.

True

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

True

T or F 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 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.

T or F Opportunities and directives are essentially the same thing.

False Opportunities are chances to improve the organization. Directives are new requirements imposed by management, government, or some external influence.

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

False Organizations can also categorize IT projects as having high, medium, or low priority based on the current business environment. An organization should always complete high-priority projects first, even if a low- or medium-priority project could be finished in less time.

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

True It is often easier to get approval and funding for projects that address problems or directives because the organization must respond to these categories to avoid hurting their business.

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

True NPV 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

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

True 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

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

True The project team should provide a list of project documentation, project closure documents, and historical information produced by the project in a useful format. This information is considered a process asset.