Review Flashcards
(155 cards)
0
Q
planning technique to subdivide the project scope and deliverables into smaller, more manageable components. What is this technique called?
A
Decomposition
1
Q
The three types of estimates on which three-point estimates are based are:
A
Most likely, optimistic, and pessimistic
2
Q
Project calendar definition
A
A project calendar is a calendar of working days or shifts that establishes those dates on which schedule activities are worked. It also establishes non-working days that determine dates on which schedule activities are idle, such as holidays, weekends and non-shift hours.
3
Q
For control and management communication, the broader and more comprehensive summary activity that is used between milestones is referred to as:
A
Hammock activity
4
Q
a technique that computes or iterates the project cost or the project schedule many times, using input values selected at random from probability distributions of possible costs or durations. In this way, one can calculate a distribution of possible total project costs or completion dates.
A
Monte Carlo Analysis
5
Q
The critical path method (CPM) calculates the theoretical early start and finish dates and late start and finish dates. The difference between the late and early start of a task is called:
A
Total float
6
Q
A control chart is used to determine whether a process is stable or has predictable performance. When a process is within acceptable limits, the process need not be adjusted. At what values are the upper and lower control limits usually set?
A
+ / - 3 Sigma
7
Q
The three categories into which contracts can be broadly classified are:
A
Broadly speaking, contracts can be classified as: 1. Fixed-price (Firm-fixed-price, Fixed-price incentive), 2. Cost-reimbursable (Cost-plus-fixed-fee, Cost-plus-incentive fee, Cost-plus-award fee), 3. Time-and-Materials (T&M).
8
Q
The Plan-Do-Check-Act (PDCA) cycle as the basis for quality improvement is usually attributed to:
A
Deming
9
Q
A ______ is a collection of projects or programs grouped together for strategic business needs.
A
Portfolio
10
Q
While managing a project, you decide to award a contract to an external enterprise. You enter into a contract where you pay the external enterprise a set amount (as defined by the contract), irrespective of the seller’s costs. What would best describe this type of contract?
A
Firm Fixed Price FFP
11
Q
What are the outputs of the Plan Procurement Management process?
A
The procurement management plan, procurement statements of work, and make-or-buy decisions are three of the seven outputs of the Plan Procurements process.
12
Q
A tool that provides a visual representation of human resource allocation to a project, number of working hours and availability on the project is a:
A
The correct response is Resource Histogram. This bar chart illustrates the number of hours that a project, department or project team will be working each week or month over the course of the project. The chart can include a horizontal line that represents the maximum number of hours available for a particular resource. Bars that extend beyond the maximum available hours indicate the need for a resource leveling strategy.
13
Q
Four negative risk management strategies are:
A
Avoid, Transfer, Mitigate, and Accept.
14
Q
What does it mean if the Earned Value is equal to Actual Cost?
A
CV = EV - AC. If the EV is equal to the AC, then there is no cost variance on the project.
15
Q
You are the project manager managing a project to design a print head for dot matrix printers. In order to determine ideal settings for print quality, the quality manager of the company suggests trying out various scenarios for printing by varying certain parameters on the print head. Identifying variables which influence the product or process under development is called:
A
Design of Experiments
16
Q
Cause and Effect diagrams are used to illustrate how various factors might be linked to potential problems or effects. They are also called:
A
Ishikawa Diagrams
17
Q
What is the best way to make an accurate forecast of ETC?
A
Manual forecasting of costs of remaining work is generally the best means of generating an accurate forecast of ETC.
18
Q
What is the difference between a histogram and a Pareto chart?
A
A Pareto chart is a type of histogram where the causes are ordered by frequency.
19
Q
Most project management software packages use a method of constructing a project schedule network diagram known as:
A
Precedence Diagramming Method. PDM uses Nodes to represent Activities and connects the activities with Arrows to show dependencies. This is the method most commonly used by project management software packages.
20
Q
When a negative unplanned risk occurs in a project, a response to it would be called:
A
A workaround
21
Q
A management control point where scope, budget, actual cost and schedule are integrated and compared to earned value for performance measurement is called a:
A
This is a control account. Control accounts are placed at selected management points of the Work Breakdown Structure (WBS). Each control account may include one or more work packages, but each of the work packages must be associated with only one control account.
22
Q
You are defining the schedule activities for your project and identifying deliverables at the lowest level in the Work Breakdown Structure (WBS). You find that there is insufficient definition of the project scope to decompose a branch of the WBS down to the work package level. You now look at using the last component in that branch of the WBS to develop a high-level project schedule for that component. Such a planning component is called:
A
The correct response is a planning package. Control accounts and planning packages are two planning components used when there are insufficient details of the project scope.
23
Q
A Project manager estimates the work to be accomplished in the near term in detail at a low level of the Work Breakdown Structure (WBS). He estimates work far in the future as WBS components that are at a relatively high level of the WBS. What is this technique called?
A
Rolling wave planning. In Rolling Wave Planning, the work to be accomplished in the near term is estimated in detail at a low level of the Work Breakdown Structure (WBS), while the work far in the future is estimated as WBS components that are at a relatively high level of the WBS. The work to be performed within another one or two reporting periods in the near future is planned in detail during the current period.
24
The WBS represents all product and project work. The total work at the lowest levels should roll up to the higher levels so that nothing is left out and no extra work is performed. This principle is also called the:
100% rule. The WBS represents all product and project work. The total work at the lowest levels should roll up to the higher levels so that nothing is omitted and no extra work is performed. This principle is also called the 100% rule.
25
A Resource Breakdown Structure (RBS) is used to break down the project by type of resources. The RBS is an example of a:
Hierarchical chart. The Resource Breakdown Structure (RBS) is a hierarchical chart. It is used to break down the project by type of resources. For example, an RBS can depict all of the welders and welding equipment used in different areas of a ship, even though these resources may be scattered among different branches of the Organizational Breakdown Structure and RBS.
26
Analogous Estimating is an estimation technique that uses the values of parameters such as scope, cost, budget and duration from a previous similar activity as the basis of activity. It is frequently used for estimation when there is a limited amount of information about the project. This is a form of:
Gross value estimation. Analogous estimating is a gross value estimating technique. It is most reliable when the previous activities are similar in fact and not just in appearance, and the project team members preparing the estimates have the needed expertise.
27
A project was estimated to cost $200,000 with a timeline of 10 months. Due to a shipment delay, the schedule was slightly delayed. However, this was made up by shipping the first batch of materials for the project by air. The net result was that there was some additional cost in the project. At the end of the second month, the Project Manager reviews the project and finds that the project is 20% complete and Actual Costs are $50,000. The Estimate to Complete (ETC) for the project would now be:
$160,000 The budget at completion (BAC) = $200,000 (given). The Actual Cost (AC) = $50,000 (given). The Earned value (EV) = (2/10) * 200,000 since 20% of the project is complete; i.e., 2 months out of 10. Hence, Earned Value (EV) = $40,000. This is an instance of an atypical situation in the project. Late arrival of materials does not mean that all subsequent material will arrive late. Hence, the calculation used for ETC is ETC = BAC - EV = $200,000 - $40,000 = $160,000.
28
As a project manager, where would you document the escalation process to resolve issues that cannot be resolved at a lower staff level?
Communications Management Plan
29
While developing the project schedule, you find that the completion of a successor activity depends on the completion of its predecessor activity. What is this dependency called?
Finish to finish
30
A project manager wishes to illustrate the connections between the work that needs to be done and the project team members. According to the PMBOK, the resulting document would be called:
The correct response is Responsibility Assignment Matrix (RAM). This illustrates the connections between the work that needs to be done and the various team members. On larger projects, RAMs can be developed at various levels.
31
The project management team has determined that there are some changes to the scope of the project. According to the PMBOK, who would be responsible for reviewing, evaluating and approving documented changes to the project?
The Change Control Board is a group of formally constituted stakeholders responsible for reviewing, evaluating, approving, delaying or rejecting changes to the project.
32
The transition from one phase to another within a project's life cycle (e.g., from design to manufacturing) is typically marked by:
Kill point
33
Estimating the type and quantities of material, people, equipment and supplies required to perform each activity is:
Estimate Activity Resources
34
Fill in the blank: _______________ means developing in steps and continuing by increments.
Progressive elaboration
35
Randy is managing a project and identifies that there are eight stakeholders in the project. He is concerned that he might end up with an unmanageable number of communication channels. How many communication channels does Randy have to plan for?
28 channels The correct response is 28. The formula for the number of communication channels is n*(n – 1)/2, where n is the number of stakeholders. In this case, n = 8, so it works out to 8*(8 - 1)/2 = 28.
36
As a project manager, you perform various project performance measurements to assess the magnitude of variation. You then attempt to determine the cause and decide whether corrective action is required. This is known as:
Variance Analysis This is known as Variance Analysis. As project manager, you would then attempt to determine the cause of the variance relative to the scope baseline, and then decide whether corrective action is required.
37
Two efficiency indicators that reflect the cost and schedule performance of a project are:
The Cost Performance Index (CPI) and the Schedule Performance Index (SPI) are two efficiency indicators that reflect the cost and schedule performance of the project. [PMBOK 5th edition, Page 219]
38
At the end of a project, what will your schedule variance be equal to?
Zero. The schedule variance is the earned value minus the planned value. At the end of the project, all of the planned values should be earned, and the differences should be zero.
39
Quantitative risk analysis should be performed:
only on prioritized risks. Since the quantitative risk analysis is a more in-depth process, it should only be performed on prioritized risks to minimize impact to the overall project schedule.
40
If you are working on a project where there is no definite detailed scope, but similar projects have been completed in the past, what is the correct Estimate Activity Durations tool to use?
Analogous estimation relies on comparing a project to previous projects that were similar in nature.
41
As project manager, you would like to show the relationship between two variables to help your project team understand the quality impacts better. Which tool should be used?
Scatter Diagram A scatter diagram plots several occurrences of two variables (one on each axis). Often a relationship between the two variables can then be determined, based on how closely they fit a geometric model. [PMBOK 5th edition, Page 238]
42
Which document describes the project's deliverables and the work required to create those deliverables?
The project scope statement is the correct response. This document describes the project's deliverables in detail and the work that is required to create those deliverables. It also forms the baseline for evaluating whether requests for changes are within or outside the project's boundaries. [PMBOK 5th edition, Page 123]
43
The date through which the project has provided actual status and accomplishments is called:
The date through which the project has provided actual status and accomplishments is called the data date (DD). It is also known as the as-of date or the status date. [PMBOK 5th edition, Page 184]
44
Types of risk diagramming techniques:
Risk diagramming techniques include: Cause-and-effect diagrams (also known as fishbone diagrams), flowcharts, and influence diagrams. [PMBOK 5th edition, Page 325]
45
A hierarchical structure of resources organized by resource type category and resource type, used in resource leveling schedules, is known as:
The Resource Breakdown Structure (RBS) is a hierarchical structure of resources by resource category and resource type, used in resource leveling schedules and in developing resource-limited schedules. The RBS may also be used to identify and analyze project human resource assignments. [PMBOK 5th edition, Page 261]
46
What does a Cost Performance Index (CPI) of more than 1.0 indicate?
The project is under budget. The CPI is calculated as the earned value divided by the actual cost. An index of greater than one indicates that you have spent less than you forecasted to this point. [PMBOK 5th edition, Page 219]
47
The Cost Performance Baseline is a time-phased budget and is used as a basis to measure, monitor, and control overall cost performance of the project. It is usually displayed in the form of:
The correct response is an S-curve (or S curve). The Cost Performance Baseline is a time-phased budget and is used as a basis to measure, monitor, and control overall cost performance of the project. It is usually displayed in the form of an S-curve and is developed by summing estimated costs by period. [PMBOK 5th edition, Page 213]
48
A project is estimated to cost $50,000 with a timeline of 50 days. After 25 days, the project manager finds that 50% of the project is complete and actual costs are $50,000. What is the Cost Performance Index (CPI)?
The CPI is 0.5 The Cost performance Index (CPI) is given by the formula CPI = EV/AC where EV is the Earned Value and AC is the Actual Cost. Since 50% of the project is complete, Earned Value = 50% of $50,000 = $25,000. Hence CPI = 25,000/50,000 = 0.5. [PMBOK 5th edition, Page 219]
49
An estimating technique that uses a statistical relationship between historical data and other variables (such as square footage in construction or lines of code in software development) is known as:
This technique is known as Parametric Estimating. It can produce higher levels of accuracy, depending on the sophistication as well as on the underlying resource quantity and cost data built into the model. [PMBOK 5th edition, Page 205]
50
Lucy is currently preparing a high-level cost estimate for her project in the initiation phase. With the limited detail available to her, what would you expect the range of her estimate to be, and what would you call such an estimate?
During the initial stages of the project, the amount of information available will be limited. Therefore, a Rough Order of Magnitude (ROM) estimate is usually prepared, and it should have an accuracy range of -25% to +75%. [PMBOK 5th edition, Page 201]
51
Funding requirements for a project are usually in incremental amounts that are not continuous. These increments appear as a step function in the graph depicting Cash flow, Cost baseline and Funding. Any gap at the end of the project between the funds allocated and the cost baseline represents:
Management reserves Management reserves are included in the project's total funds, but they are not included in the project's cost performance baseline. [PMBOK 5th edition, Page 214]
52
A variance threshold for costs or other indicators to indicate the agreed amount of variation allowed is called:
Control thresholds are variance thresholds for costs or other indicators such as person-days, and they indicate the agreed amount of variation allowed. [PMBOK 5th edition, Page 148]
53
The WBS is finalized by establishing control accounts for the work packages and a unique identifier from a code of accounts. This provides a structure for hierarchical summation of:
Cost, schedule and resource information
54
Uncontrolled project scope changes are often referred to as ________ .
Scope creep
55
A fundamentally functional organization creates a special project team to handle a critical project. This team has many of the characteristics of a project team in a project organization and has a Project Manager dedicated to the project. Such an organization is called:
Composite
56
The Create WBS process identifies the deliverables at the __________ level in the Work Breakdown Structure (WBS).
Lowest
57
After brainstorming potential project risks, what is the recommended method for prioritizing these risks and their mitigation plans?
A probability and impact matrix will help filter the high-risk items and high-impact items from the others, so that you can focus your attention on these riskier items. [PMBOK 5th edition, Page 331]
58
If you are requesting a vendor quote for a defined scope, what is the recommended contract type?
Fixed price
59
The most detailed level of the WBS is called the _______________ .
Work package
60
Which of the following is a hierarchical representation of project risks?
Risk breakdown structure
61
During the Plan Procurement Management phase, the make-or-____ analysis must be completed. This technique prompts the project team to determine the source of their item.
The make-or-buy analysis is a technique used by the project manager to determine whether a particular work can be best completed by the project team or should be procured from outside sources. [PMBOK 5th edition, Page 365]
62
Which of these types of precedence relationships is least commonly used in the Precedence Diagramming Method?
Start to Finish relationships indicate that the next task cannot be completed until the one preceding it has started. This type is not commonly used. [PMBOK 5th edition, Page 157]
63
A RACI chart is an example of a _________________.
Responsibility assignment matrix. A RACI chart outlines in matrix form, the project tasks and for each task, who is responsible, who is accountable, whom to consult, and whom to inform. [PMBOK 5th edition, Page 226]
64
If the project's current total earned value (EV) is $100,000 and the actual amount spent (AC) is $95,000, what is the cost variance of the project?
The cost variance is 5,000. The cost variance (CV) equals EV - AC. In this case, the CV = $5,000. [PMBOK 5th edition, Page 224]
65
If you want a group of experts to identify project risks but you also want unbiased data, what is an appropriate technique to use?
The Delphi technique involves anonymous questionnaires circulated to a group of experts and provides an unbiased assessment of the risks. [PMBOK 5th edition, Page 324]
66
If you are working on a project with constantly changing scope, which type of contract would work best when hiring an outside vendor to complete a portion of the work?
A cost-reimbursable contract will allow the contract to change as the project scope changes. [PMBOK 5th edition, Page 363]
67
Measuring the quality of items in a sample on a pass/fail basis is called:
Attribute sampling Attribute sampling measures the quality of items in a sample on a pass/fail basis; variable sampling measures the quality on a continuous scale. [PMBOK 5th edition, Page 250]
68
During the Plan Risk Management process, assigning ___________ will help you and the project team identify all important risks and work more effectively during the identification process.
Risk categories provide a structure that ensures a comprehensive process of systematically identifying risks and that contributes to the effectiveness and quality of the process. [PMBOK 5th edition, Page 317]
69
The technique most commonly used by project management software packages to construct a project schedule network diagram is:
Activity-On-Node (AON). This method uses boxes or rectangles, called nodes, to represent activities. It connects the nodes with arrows showing the logical relationships among them. [PMBOK 5th edition, Page 156
70
What is the traditional way to display a reporting structure among project team members?
Hierarchical-type charts
71
An effective quality audit should be:
Structured and independent.
72
The Identify Stakeholders process has four inputs. Three of them are project charter, enterprise environmental factors and organizational process assets. What is the fourth one?
Procurement documents
73
The Project Managers have maximum authority in which type of organization?
Strong matrix
74
Which of the following is a control tool that helps the project management team quantify and categorize defects according to sources?
Pareto diagram A Pareto Diagram helps the management team quantify and categorize defects. [PMBOK 5th edition, Page 237]
75
Alan is the project manager of a project with six stakeholders. If the number of stakeholders goes up to eight, how many additional channels does he have to manage?
The formula to calculate the number of channels is n*(n-1)/2, where n is the number of stakeholders. In the original situation, with 6 stakeholders, the number of channels equals 6*(6 - 1)/2 = 30/2 = 15. In the new situation, with 8 stakeholders, the number of channels equals 8*(8 - 1)/2 = 56/2 = 28. Therefore, the additional number of channels to manage equals 28-15 = 13. [PMBOK 5th edition, Page 292]
76
Your Vice President has asked you what the Estimate at Completion is going to be for a small project you are working on. You were given a budget of $30,000, and to date you have spent $20,000 but only completed $10,000 worth of work. You are sure that the future work will be accomplished at the planned rate.
If the future work will be accomplished at the planned rate, then the Estimate at Completion (EAC) will be AC+BAC-EV. Budget at Completion (BAC) is $30,000, Earned Value (EV) is $10,000, and Actual Cost (AC) is $20,000. Hence, the EAC is $40,000. [PMBOK 5th edition, Page 224]
77
You are the project manager responsible for building a 100,000 sq. ft. data center. One of the schedule activities in your plan is to install the Computer Room Air Conditioning (CRAC) units. However, before beginning the installation of the units, a raised floor must be installed to which the units can then be bolted. This is an example of what type of dependency?
Mandatory
78
You are analyzing the risk in a project. You decide to do a sensitivity analysis to determine which risks have the most potential impact on the project. You consider using a tool to help compare the relative importance of variables that have a high degree of uncertainty with those variables that are more stable. One such tool is:
A tornado diagram is useful for comparing the relative importance of variables that have a high degree of uncertainty with those that are more stable. [PMBOK 5th edition, Page 338]
79
When a project is executed under contract, the contractual provisions will generally be considered as _____________ for the project.
Constraints
80
You are attempting to estimate the resources required to assemble the server racks in the new data center you are building. It has occurred to you that you may be able to compress the schedule if you use power tools instead of hand tools to build the racks and if you employ individuals who have worked on this brand of rack in the past. This is an example of what type of resource estimating tool?
Alternative Analysis
81
A project is contracted as a Time-and-Materials (T&M) type of contract. The service provider initially estimates that the total effort involved would be about 1000 hours of effort. The project is contracted at a rate of US$75 per hour of effort. If the project ends up with 1200 hours of effort, what will the contract payout be.
The correct answer is US$90,000. Since this is a T&M contract, the contract is open-ended in value. Hence the contract value is the actual effort multiplied by the agreed rate = US$75 X 1200 = US$90,000. [PMBOK 5th edition, Page 364]
82
A project is contracted as a Cost-Plus-Incentive-Fee (CPIF) type of contract. The project was negotiated such that if the final costs are less than the expected costs, the sharing formula for cost savings is 75:25. The targeted cost is US$100,000 with an 8% incentive fee on the targeted cost. If the project comes in at US$80,000, what would be the cost of the total contract?
The correct answer is US$93,000. The calculation is as follows: Incentive fee based on budgeted costs = 8% of 100,000 = 8,000. Actual costs = 80,000. Share of cost savings = 25% of 20,000 = 5,000 (since the cost savings is 100,000 - 80,000). Hence the payout = 80,000 + 8,000 + 5,000 = US$93,000. [PMBOK 5th edition, Page 364]
83
During a work breakdown structure meeting, you have decomposed the deliverables into work packages and created your WBS dictionary. However, you now want to decompose the work packages to assist you in estimating, executing, and controlling the project. These decomposed work packages are called:
Activities
84
A fundamentally functional organization creates a special project team to handle a critical project. This team has many of the characteristics of a project team in a project organization and has a Project Manager dedicated to the project. Such an organization is called:
Composite organization
85
As you are creating the Activity List, which technique is recommended for subdividing the project into smaller components called activities?
Decomposition
86
The Create WBS process identifies the deliverables at the __________ level in the Work Breakdown Structure (WBS).
Lowest
87
After brainstorming potential project risks, what is the recommended method for prioritizing these risks and their mitigation plans?
A probability and impact matrix will help filter the high-risk items and high-impact items from the others, so that you can focus your attention on these riskier items. [PMBOK 5th edition, Page 331]
88
If you are requesting a vendor quote for a defined scope, what is the recommended contract type?
Fixed-price
89
The most detailed level of the WBS is called the _______________ .
Work package.
90
Which of the following is a hierarchical representation of project risks?
Risk Breakdown Structure
91
During the Plan Procurement Management phase, the make-or-____ analysis must be completed. This technique prompts the project team to determine the source of their item.
Buy
92
Which of these types of precedence relationships is least commonly used in the Precedence Diagramming Method?
Start to Finish
93
A RACI chart is an example of a _________________.
Responsibility Assignment Matrix
94
If the project's current total earned value (EV) is $100,000 and the actual amount spent (AC) is $95,000, what is the cost variance of the project?
CV = EV - AC. 5,000
95
If you want a group of experts to identify project risks but you also want unbiased data, what is an appropriate technique to use?
The Delphi technique involves anonymous questionnaires circulated to a group of experts and provides an unbiased assessment of the risks. [PMBOK 5th edition, Page 324]
96
If you are working on a project with constantly changing scope, which type of contract would work best when hiring an outside vendor to complete a portion of the work?
Cost-reimbursable
97
Measuring the quality of items in a sample on a pass/fail basis is called:
Attribute sampling
98
During the Plan Risk Management process, assigning ___________ will help you and the project team identify all important risks and work more effectively during the identification process.
Risk categories
99
The technique most commonly used by project management software packages to construct a project schedule network diagram is:
Activity-on-node (AON)
100
A fundamentally functional organization creates a special project team to handle a critical project. This team has many of the characteristics of a project team in a project organization and has a Project Manager dedicated to the project. Such an organization is called:
Composite organization
101
As you are creating the Activity List, which technique is recommended for subdividing the project into smaller components called activities?
Decomposition
102
What is the primary risk when including reserves or contingency allowances in your cost estimate?
Overstating the cost estimate
103
With the establishment of a PMO in an organization, employees are adopting project management jargon. However, a few employees are still struggling with project management terminologies. One of the most common sources of confusion is the difference between a project stakeholder and a key stakeholder. Who are the key stakeholders?
Individuals, groups or organizations in a decision making position.
104
After brainstorming potential project risks, what is the recommended method for prioritizing these risks and their mitigation plans?
Probability and impact matrix.
105
If you are influencing factors that create changes to the cost of the project, which process are you using?
Control costs
106
If you are requesting a vendor quote for a defined scope, what is the recommended contract type?
Fixed-price
107
The most detailed level of the WBS is called the _______________ .
Work package
108
Which of the following is a hierarchical representation of project risks?
Risk breakdown structure
109
During the Plan Procurement Management phase, the make-or-____ analysis must be completed. This technique prompts the project team to determine the source of their item.
Buy
110
Which of these types of precedence relationships is least commonly used in the Precedence Diagramming Method?
Start to Finish
111
A RACI chart is an example of a _________________.
Responsibility assignment matrix
112
If the project's current total earned value (EV) is $100,000 and the actual amount spent (AC) is $95,000, what is the cost variance of the project?
$5000
113
If you want a group of experts to identify project risks but you also want unbiased data, what is an appropriate technique to use?
The Delphi technique involves anonymous questionnaires circulated to a group of experts and provides an unbiased assessment of the risks. [PMBOK 5th edition, Page 324]
114
If you are writing a proposal for additional funding, which communication style should you choose?
Formal and vertical
115
If you are working on a project with constantly changing scope, which type of contract would work best when hiring an outside vendor to complete a portion of the work?
Cost-reimbursable
116
Measuring the quality of items in a sample on a pass/fail basis is called:
Attribute sampling
117
During the Plan Risk Management process, assigning ___________ will help you and the project team identify all important risks and work more effectively during the identification process.
Risk categories
118
The technique most commonly used by project management software packages to construct a project schedule network diagram is:
Activity-on-node (AON)
119
Which of the following defines the total scope of the project and represents the work specified in the current approved project scope statement?
WBS
120
What is the traditional way to display a reporting structure among project team members?
Hierarchal type charts
121
Three types of project selection critieria:
Strategic, financial, non-financial.
122
Typical measures of financial return for a project:
Present value, Net Present Value, ROI, Internal Rate of Return, Payback period criteria, Cost benefit analysis
123
Present value (PV) Calculation:
PV = C / (1 + r) ^n Calculates the value in today’s dollars of future in coming cash flows generated by a project when a discount rate is applied.
124
Net Present Value (NPV) Calculation:
NPV = Co + PV1 + PV2 + PV3, etc. Takes the total PV calculation for a given time period and subtracts it from the initial investment in the project to determine a net present value. Co is the initial outlay represented as negative number; and PV1, PV2, PV3, and so on represent the PV calculations for the defined time period.
125
Why is important that all projects are subject to a defined project selection process?
It is important that all projects are subject to a defined project selection process in order to standardize and provide a robust, defensible process for selecting projects from all the available projects that could be undertaken.
126
What are typical financial criteria used to assess projects?
Difficult financial criteria for assessing whether or not the project should go ahead include payback period, present value, and net present value, return on investment, internal rate of return and cost benefit analysis.
127
What is the present value of $50,000 in 2 years at a discount rate of 10 percent?
The present value is $50,000/((1+ .1)2) = $41 322.31.
128
Your project will cost $30,000 and generate income in the first year of $7,000, $10,000 in the second year, and $15,000 in the third year. What is the net present value of your project at a discount rate of 8 percent?
The net present value equals −$30,000 + ($7,000/((1+ .08)1)) + ($10,000/((1+ .08)2)) + ($15,000/((1+ .08)3)) = $3, 037.65.
129
What role does the project sponsor play in the project?
The project sponsor is the person in the organization completing the project who takes ultimate accountability for the success of the project, and provides financial and political support as part of the project charter-approval process.
130
What information does the project statement of work contain?
The project statement of work contains as much information as is known and a narrative form about the work to be completed in the project. Given that it is developed during the initiating tasks, it does not contain as much information as a fully developed project scope.
131
Why is the statement of work typically in narrative form only?
The project statement of work is typically in narrative form because that is the easiest way to describe the level of detail that is known about the work to be done at that stage in the project. It is highly unlikely that you can produce a detailed description using diagrams, plans, or drawings at this stage because it will be done at the planning stages.
132
What is the difference between the project scope and the product scope?
The product scope refers to the deliverable of the project, and might include technical specifications and requirements about the deliverable. The project scope includes the product scope and all the other work to be done as part of managing the project.
133
Why is defining the customer’s project expectations important?
It is important to define customer expectations of the project because they are the party that defines and ultimately pays the deliverable of the project. If you do not understand customer expectations, you will not satisfy them.
134
Who takes responsibility for ensuring that the customer’s project expectations are gathered and documented?
It is the responsibility of the project manager to ensure that the stakeholders’ expectations are gathered and documented. He or she might not actually do the work, but must take responsibility for ensuring that it is done.
135
What is the best definition of a stakeholder?
A stakeholder is best defined as any person, group, or organization that can affect or be affected by your project.
136
What is the key purpose of using data-gathering techniques during stakeholder analysis?
Stakeholders provide expectations and requirements of the project; the best way to gather these expectations and requirements is to use data-gathering techniques to communicate with stakeholders.
137
If you have gathered a group of stakeholders together in a meeting and are asking them to think creatively about potential project deliverables and ways of achieving them, what data-gathering technique are you using?
This is an example of using brainstorming as a data-gathering technique.
138
What information is contained in the stakeholder register?
The stakeholder register contains information about stakeholders: their contact details; a description of their interest, influence, or impact on the project; and a description of how their expectations will be managed.
139
If you have identified stakeholders on your project and classified them according to their power, legitimacy and urgency, what model are you using?
This is an example of using the salience model to classify stakeholders.
140
Why is it important to identify high-level risks as soon as possible in the project initiation processes?
It is important to identify the high-level risks as soon as possible because they might affect whether the project is given approval to proceed.
141
What are the assumptions that you might make about the project?
You will make several assumptions that influence whether or not the project is approved. These assumptions include future market conditions, demand for the product or deliverable, and quality of information used to approve a project.
142
What are examples of typical project constraints?
Typical examples of project constraints include time, scope, cost, and quality. Other constraints include risk, health and safety, and customer satisfaction.
143
What is the best implementation approach to use for a project?
The type of project and its duration, complexity, and size dictate the best implementation approach to use. There is no one-size-fits-all solution.
144
If you are first completing the process of developing a business case for a project, waiting for approval to proceed before moving on to design the deliverable, and then waiting for approval to start manufacturing, what sort of implementation approach should you use?
This is an example of a phased implementation approach.
145
At what point in a project should the project charter be developed?
You should begin development of the project charter as soon as you begin assessing whether the project will be approved. The final form of the project charter contains all the information needed to approve it.
146
What is the purpose of the project charter?
The purpose of the project charter is to document everything that is known about the project at the initiating stage and to provide enough information so the project has financial and political support to proceed to detailed planning.
147
What sort of project should always have a project charter?
All projects, no matter the size and complexity, should have a project charter.
148
If you are working on a project and discover the project charter was never formally signed off on, what should you do?
If you are working on a project and discover the project charter was never formally signed off on, you should immediately discuss it with the project sponsor and stop work until it is signed.
149
What sort of information is captured as part of documenting stakeholder requirements?
The sort of information captured as part of documenting stakeholder requirements includes technical requirements and other non-technical requirements for the project.
150
Who should take responsibility for getting approval of the project charter?
The project manager should take responsibility for getting approval of the project charter, but it is the project sponsor and the customer who formally authorize the project charter.
151
What level of responsibility and authority should a project manager have?
A project manager should have high levels of both responsibility and authority, and this should be documented in the project charter.
152
In a weak matrix organization, who has the most power: the functional manager or the project manager?
In a weak matrix organization, the functional manager has more power than the project manager.
153
At what point in the project lifecycle should the project manager be identified?
The project manager should be identified and authority given during the development of the project charter.
154
If you are a project manager in an organization, are utilizing staff from several different functional areas, and you are continually having to ask each of the functional managers to use staff you need on the project and they occasionally decline your requests, what sort of organizational structure are you working in?
This is an example of the functional manager having the most power; it is a weak matrix organizational structure.
