Ch 1. Review Flashcards
1 What is the definition of a project? Choose two.
A. A group of interrelated activities that create a unique benefit to the organization
B. Through the use of project management techniques, which are repeatable processes, a series of actions that are performed to produce the same result multiple times
C. A temporary endeavor undertaken to create a unique product, service, or result
D. A process used to generate profit, improve market share, or adhere to legal requirements
E.A time-constrained endeavor with assigned resources responsible for meeting the goals of the project according to the quality standards
C. A temporary endeavor undertaken to create a unique product, service, or result
E. A time-constrained endeavor with assigned resources responsible for meeting the goals of the project according to the quality standards
A project creates a unique product, service, or result and has defined start and finish dates. Projects must have resources in order to bring about their results, and they must meet the quality standards outlined in the project plan. Interrelated activities are not projects because they don’t meet the criteria for a project. Project management processes are a means to manage projects, and processes used to generate profits or increase market share do not fit the definition of a project. Processes are typically ongoing; projects start and stop.
What organization is recognized worldwide for setting project management standards?
A. PMC
B. PMI®
C. PMP
D. CompTIA
B. PMI®
The Project Management Institute (PMI®) is the leading professional project management association, with more than 700,000 members worldwide.
What is the term for a group of related projects managed in a coordinated fashion?
A. Life cycle
B. Phase
C. Process group
D. Program
D. Program
A program is a group of related projects that can benefit from coordinated management. Life cycles are the various stages a project goes through, and process groups consist of Initiating, Planning, Executing, Monitoring and Controlling, and Closing.
Which of the following are true regarding project portfolios? Choose two.
A. The independent projects in the portfolio may not have anything in common.
B. The programs in the portfolio are related to one another.
C. The programs and projects within the portfolio support the strategic goals of the portfolio.
D. An organization has only one portfolio.
E. Portfolios consist of programs and do not contain stand-alone projects.
A. The independent projects in the portfolio may not have anything in common.
C. The programs and projects within the portfolio support the strategic goals of the portfolio.
Portfolios consist of programs, subportfolios, and independent projects that are not necessarily related to one another. An organization could have any number of portfolios.
Which of the following general management skills does a project manager employ up to 90 percent of their time?
A. Programming
B. Communicating
C. Leading
D. Problem-solving
B. Communicating
Project managers can spend up to 90 percent of their time communicating. The other skills listed here are important as well, but the clue in this question is the 90 percent figure that relates to the amount of time project managers may spend communicating.
You receive a request from customer service to develop and implement a desktop management system for the customer-support staff. What type of project request is this?
A. Business need
B. Market demand
C. Legal requirement
D. Technological advance
A. Business need
A request to develop a product for use by an internal department is a business need. Market demands are driven by the needs of the market, legal requirements come about because of rules or regulations that must be complied with, and technological advances are because of improvements in expertise or equipment.
You are working in a matrix organization. Choose two responses that describe this type of structure.
A. Project resources are members of another business unit and may or may not be able to help you full-time.
B. Matrix organizations can be structured as strong, weak, or balanced.
C. Project managers have the majority of power in this type of structure.
D. This organizational structure is similar to a functional organization.
E. Employees are assigned project tasks by their project manager in this type of structure.
B. Matrix organizations can be structured as strong, weak, or balanced.
E. Employees are assigned project tasks by their project manager in this type of structure.
A matrix organization can be structured as a strong, weak, or balanced matrix. Employees are assigned to projects by their functional managers, and the project tasks are assigned to them by the project manager. The project manager has the majority of power in a projectized organization.
A project manager has the most authority under which organizational structure?
A. Projectized
B. Functional
C. Balanced matrix
D. Strong matrix
A. Projectized
A projectized organization is designed around project work, and project managers have the most authority in this type of structure. Project managers have the least amount of authority in a functional organization; they have some authority in a balanced matrix and a little more authority in a strong matrix, but not as much authority as they have in a project-based organization.
Your project has expected cash inflows of $7.8 million in today’s dollars. Which cash flow technique was used to determine this?
A. Discounted cash flow
B. IRR
C. NPV
D. Cost-benefit analysis
A. Discounted cash flow
The discounted cash flow technique compares the total value of each year’s expected cash inflow to today’s dollar. IRR calculates the internal rate of return, NPV determines the net present value, and cost-benefit analysis determines the cost of the project versus the benefits received.
Which of the following are the steps required to validate a project? Choose two.
A. Analyze the feasibility.
B. Justify the project.
C. Align it to the strategic plan.
D. Validate the business case.
E. Identify and analyze stakeholders.
D. Validate the business case.
E. Identify and analyze stakeholders.
The steps required to validate a project are validating the business case (which encompasses a feasibility analysis, justification for the project, and alignment to the strategic plan) and identifying and analyzing stakeholders.
This general management skill concerns obtaining mutually acceptable agreements with individuals or groups.
A. Leadership
B. Problem-solving
C. Negotiating
D. Communicating
C. Negotiating
Negotiating involves obtaining mutually acceptable agreements with individuals or groups. Leadership involves imparting a vision and motivating others to achieve the goal. Problem-solving involves working together to reach a solution. Communicating involves exchanging information.
Federico, the director of the marketing department, has approached you with an idea for a project. What are the elements you’ll include in the business case? Choose four.
A. The business justification for the project
B. The strategic opportunity/business need that brought ab out the project
C. The recommended alternative
D. List of key stakeholders
E. Alternative solutions analysis
A. The business justification for the project
B. The strategic opportunity/business need that brought ab out the project
C. The recommended alternative
E. Alternative solutions analysis
The business case establishes the justification for the project, how it aligns to the strategic goals of the organization, the business need or opportunity that brought about the project, alternative recommendations and analysis, a recommendation on which alternative to choose, and the feasibility study or the feasibility study results may or may not be included in the business case.
Your project has expected cash inflows of $1.2 million in year 1, $2.4 million in year 2, and $4.6 million in year 3. The project pays for itself in 23 months. Which cash flow technique was used to determine this?
A. IRR
B. NPV
C. Discounted cash flow
D. Payback period
D. Payback period
Payback period is a technique that calculates the expected cash inflows over time to determine how many periods it will take to recover the original investment. IRR calculates the internal rate of return, NPV determines the net present value, and discounted cash flows determine the amount of the cash flows in today’s dollars.
You’ve been given an idea for a project by an executive in your organization. After writing the business-case analysis, you submit it to the executive for review. After reading the business case, he determines that the project poses a significant amount of risk to the organization. What do you recommend next?
A. Proceed to the project selection committee.
B. Reject the project based on the analysis.
C. Proceed to writing the project plan.
D. Perform a feasibility study.
D. Perform a feasibility study.
The next best step to take in this situation is to perform a feasibility study. Feasibility studies are typically undertaken for projects that are risky, projects that are new to the organization, or projects that are highly complex. Projects of significant risk to the organization shouldn’t be taken to the selection committee without having a feasibility study first, and writing the project plan doesn’t make sense at this point because you don’t know if the project will be chosen or not. You also can’t reject the project because there isn’t enough information to determine whether it should be rejected until the feasibility study is completed.
You’re a project manager working on a software development project. You are working hand in hand with a systems analyst who is considered an expert in her field. She has years of experience working for the organization and understands not only systems development but also the business area the system will support. Which person should make the decisions about the management of the project?
A. roject manager
B. Systems analyst
C. Project manager with input from systems analyst
D. Systems analyst with input from project manager
C. Project manager with input from systems analyst
The project manager is ultimately responsible for managing the work of the project. That doesn’t mean they should work without the benefit of input from others.
