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PM Chapter 4 > PM Chapter 2 - Project Management and Information Technology Context > Flashcards

PM Chapter 2 - Project Management and Information Technology Context Flashcards

1
Q

A weighted scoring model is a tool that provides a systematic process for selecting projects based on many criteria.

A

True

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2
Q

Organizations should only pursue projects that have the best financial value.

A

False

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3
Q

Low- or medium-priority projects that can be finished in less time than high-priority projects should always be completed first.

A

False

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4
Q

You can determine minimum scores or ____________________ for specific criteria in a weighted scoring model.

A

Thresholds

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5
Q

From the viewpoint of NPV only, if Project 2 has a higher NPV than Project 1, Project 1 should be chosen.

A

False

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6
Q

A program for IT ____________________ projects might include purchasing new hardware, software, and networking equipment, or determining standards for IT.

A

infrastructure

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7
Q

The main goal of programs is to obtain benefits and control not available from managing projects separately.

A

True

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8
Q

When using the hierarchical four-stage planning process for selecting projects, you must start at the bottom of the pyramid.

A

False

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9
Q

Grouping related ____________________ into programs helps improve coordination through better communications, planning, management, and control.

A

Projects

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10
Q

___________________ analysis is 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.

A

Net Present Value

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11
Q

A(n) ____________________ rate is the rate used in discounting future cash flows.

A

Discount

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12
Q

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

A

True

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13
Q

___________________ analysis determines how much time will lapse before accrued benefits overtake accrued and continuing costs.

A

Payback

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14
Q

Project portfolio management focuses on ____________________ issues while individual projects often focus on tactical issues.

A

Strategic

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15
Q

____________________ planning involves 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

A

Strategic

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16
Q

NPV analysis is a method for making equal ____________________ between cash flow for multiyear projects. Comparison

A

Comparison

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17
Q

Organizations—both large and small—cannot undertake most of the potential projects identified because of resource limitations and other constraints.

A

True

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18
Q

The required rate of return is the minimum acceptable rate of return on an investment.

A

True

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19
Q

A construction firm using ____________________ of scale can purchase materials, obtain services, and hire workers for less money if it is managing the construction of 100 houses instead of just one house.

A

Economies

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20
Q

With respect to NPV, all organizations start discounting in Year 0 (immediately).

A

False

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21
Q

A SWOT analysis involves the examination of Strengths, Weaknesses, Opportunities, and ____________________.

A

Threats

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22
Q

Just as projects are unique, so are project portfolios.

A

True

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23
Q

A balanced ____________________ is a methodology that converts an organization’s value drivers—such as customer service, innovation, operational efficiency, and financial performance—to a series of defined metrics.

A

Scorecard

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24
Q

Organizations have no choice in whether to fund projects that use __________ costs.

A

nondiscretionary

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25
Q

It is important for organizations to develop a fair, consistent, and logical process for selecting projects, programs, and ____________________.

A

Portfolios

26
Q

Core projects are those that are required to run the business.

A

True

27
Q

____________________ analysis determines how much time will lapse before accrued benefits overtake accrued and continuing costs.

A

Payback

28
Q

Projects with higher NPVs are preferred to projects with lower NPVs if all other factors are equal.

A

True

29
Q

Most crucial projects, such as drug development or major transportation projects, will achieve payback in less than a year.

A

False

30
Q

A(n) ____________________ is a group of projects managed in a coordinated way to obtain benefits and control not available from managing them individually

A

Program

31
Q

Organizations need to narrow down the list of potential projects to those projects that will be most beneficial.

A

True

32
Q

Payback occurs in the year when the cumulative benefits minus costs reach zero.

A

True

33
Q

If you assign weights to criteria based on percentage, the sum of all the criteria’s weights must total 100 percent.

A

True

34
Q

The annual discount ____________________ is a multiplier for each year that is based on the discount rate and year.

A

Factor

35
Q

___________________ is the result of subtracting the project costs from the benefits and then dividing by the costs.

A

ROI

36
Q

You can determine a project’s ____________________ by finding what discount rate results in an NPV of zero for the project.

A

internal rate of return

37
Q

The core category of projects labeled as ____________________ costs must be funded for a company to stay in business.

A

Nondiscretionary

38
Q

____________________ considerations are often an important aspect of the project selection process, especially during tough economic times.

A

Financial

39
Q

In practice, organizations usually use a single approach to select projects.

A

False

40
Q

An organization’s overall BUSINESS STRATEGY should guide the project selection process and management of those projects

A

Aligning Projects w/ Business Strategy

41
Q

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

A

Strategic Planning

42
Q

It is very important to start at the TOP of the pyramid to select projects that support the organization’s business strategy

A

Top-Strategic Planning
Business Area Analysis
Project Planning
Resource Allocation

43
Q

Top-Strategic Planning
Business Area Analysis
Project Planning
Resource Allocation

A

NPV (Net present value) analysis

44
Q

Is the rate used in discounting future cash flows.

A

Discount Rate

45
Q

Is a multiplier for each year based on the discount rate and year (calculated as 1/(1+r)t, where r is the discount rate, and t is the year).

A

Discount Factor

46
Q

is a multiplier for each year based on the discount rate and year (calculated as 1/(1+r)t, where r is the discount rate, and t is the year).

A

Return on Investment (ROI)

47
Q

By finding what discount rate results in an NPV of zero for the project

A

Internal Rate of Return (IRR)

48
Q

Is the amount of time it will take to recoup—in the form of net cash inflows—the total dollars invested in a project

Payback occurs in the year when the cumulative benefits minus costs reach ZERO. The shorter the payback period, the better

A

Payback period

49
Q

Is a tool that provides a systematic process for selecting projects based on many criteria

Calculate the weighted scores by MUTIPLY the weight for each criterion by its score and adding the resulting values

A

weighted scoring model

50
Q

Is a methodology that converts an organization’s value drivers—such as customer service, innovation, operational efficiency, and financial performance—to a series of defined METRIX

A

Balance Scorecard

51
Q

Are chances to improve the organization

A

Opportunity

52
Q

Are new requirements imposed by management, government, or some external influence

A

Directives

53
Q

Which of the following is not part of the three-sphere model for systems management?

a) Business
b) Information
c) Technology
d) Organization

A

Information

54
Q

Which of the four frames of organizations addresses how meetings are run, employee dress codes, and expected work hours?

a) Structural
b) Human resources
c) Political
d) Symbolic

A

Symbolic

55
Q

Personnel in a ______ organizational structure often report to two or more bosses.

a) Functional
b) Project
c) Matrix
d) Hybrid

A

Matrix

56
Q

Project work is most successful in an organization culture where all of the following characteristics are important except_____.

a) Member Identity
b) Group emphasis
c) Risk tolerance
d) Control

A

Control

57
Q

A _________ is a product or service, such as a technical report, a training session, or hardware, produced or provided as part of a project.

a) Deliverable
b) Product
c) Work Package
d) Tangible Goal

A

Deliverable

58
Q

Which of the following statements are false

a) An analysis project life cycle is a collection of project phases.
b) a Product life cycle is the same as a project life cycle.
c) The waterfall approach is an example of a predictive life cycle model.
d) Agile is an example of an adaptive life cycle model.

A

A product life cycle is the same as a project life cycle.

59
Q

Which of the following terms describes a framework in phases involved in developing information systems?

a) Systems development life cycle
b) Rapid application development
c) Predictive life cycle
d) Extreme programming

A

Systems development life cycle

60
Q

The nature of IT projects is different from the nature of projects in many other industries because they are very_______.

a) Expensive
b) Technical
c) Diverse
d) Challenging

A

Diverse

61
Q

What term describes an organization’s acquisition of goods and services from an outside source in another country.

a) Globalization
b) Offshoring
c) Exporting
d) Global sourcing

A

Offshoring

62
Q

__________ Is the leading agile development method.

a) Extreme programming
b) Sprint
c) Kanban
d) Scrum

A

Scrum

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