PM Chapter 2 - Project Management and Information Technology Context

Question 1

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

Answer 1

True

Question 2

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

Answer 2

False

Question 3

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

Answer 3

False

Question 4

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

Answer 4

Thresholds

Question 5

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

Answer 5

False

Question 6

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

Answer 6

infrastructure

Question 7

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

Answer 7

True

Question 8

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

Answer 8

False

Question 9

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

Answer 9

Projects

Question 10

___________________ 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.

Answer 10

Net Present Value

Question 11

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

Answer 11

Discount

Question 12

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

Answer 12

True

Question 13

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

Answer 13

Payback

Question 14

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

Answer 14

Strategic

Question 15

____________________ 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

Answer 15

Strategic

Question 16

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

Answer 16

Comparison

Question 17

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

Answer 17

True

Question 18

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

Answer 18

True

Question 19

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.

Answer 19

Economies

Question 20

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

Answer 20

False

Question 21

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

Answer 21

Threats

Question 22

Just as projects are unique, so are project portfolios.

Answer 22

True

Question 23

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.

Answer 23

Scorecard

Question 24

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

Answer 24

nondiscretionary

Question 25

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

Answer 25

Portfolios

Question 26

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

Answer 26

True

Question 27

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

Answer 27

Payback

Question 28

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

Answer 28

True

Question 29

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

Answer 29

False

Question 30

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

Answer 30

Program

Question 31

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

Answer 31

True

Question 32

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

Answer 32

True

Question 33

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

Answer 33

True

Question 34

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

Answer 34

Factor

Question 35

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

Answer 35

ROI

Question 36

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

Answer 36

internal rate of return

Question 37

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

Answer 37

Nondiscretionary

Question 38

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

Answer 38

Financial

Question 39

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

Answer 39

False

Question 40

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

Answer 40

Aligning Projects w/ Business Strategy

Question 41

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

Answer 41

Strategic Planning

Question 42

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

Answer 42

Top-Strategic Planning Business Area Analysis Project Planning Resource Allocation

Question 43

Top-Strategic Planning Business Area Analysis Project Planning Resource Allocation

Answer 43

NPV (Net present value) analysis

Question 44

Is the rate used in discounting future cash flows.

Answer 44

Discount Rate

Question 45

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).

Answer 45

Discount Factor

Question 46

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).

Answer 46

Return on Investment (ROI)

Question 47

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

Answer 47

Internal Rate of Return (IRR)

Question 48

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

Answer 48

Payback period

Question 49

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

Answer 49

weighted scoring model

Question 50

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

Answer 50

Balance Scorecard

Question 51

Are chances to improve the organization

Answer 51

Opportunity

Question 52

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

Answer 52

Directives

Question 53

Which of the following is not part of the three-sphere model for systems management? a) Business b) Information c) Technology d) Organization

Answer 53

Information

Question 54

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

Answer 54

Symbolic

Question 55

Personnel in a ______ organizational structure often report to two or more bosses. a) Functional b) Project c) Matrix d) Hybrid

Answer 55

Matrix

Question 56

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

Answer 56

Control

Question 57

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

Answer 57

Deliverable

Question 58

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.

Answer 58

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

Question 59

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

Answer 59

Systems development life cycle

Question 60

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

Answer 60

Diverse

Question 61

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

Answer 61

Offshoring

Question 62

__________ Is the leading agile development method. a) Extreme programming b) Sprint c) Kanban d) Scrum

Answer 62

Scrum