Chapter 1 - Introduction to Project Management TRUE/FALSE 1. A project is a temporary endeavor undertaken to create a unique product, service or result. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03 REF: P. 4 OBJ: CPMT.KLOP.15.01.01 KEY: Bloom's: Knowledge 2. A project is a lasting endeavor undertaken to maintain a reliable product or service. ANS: F DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03 REF: P. 4 OBJ: CPMT.KLOP.15.01.01 KEY: Bloom's: Comprehension 3. Most projects are conducted with constraints on the amount of time and funding available to the project manager. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03 REF: P. 10 OBJ: CPMT.KLOP.15.01.01 KEY: Bloom's: Comprehension 4. Project plans and goals usually become more specific as early work is completed. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.06 REF: P. 4 OBJ: CPMT.KLOP.15.01.02 KEY: Bloom's: Knowledge 5. Operations consist of the ongoing work needed to ensure the organization continues to function effectively. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03 REF: P. 5 OBJ: CPMT.KLOP.15.01.01 KEY: Bloom's: Knowledge 6. Customers may need to sacrifice expectations related to cost or schedule in order to realize their expectations for scope or quality. ANS: T DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.06 REF: P. 10 OBJ: CPMT.KLOP.15.01.01 KEY: Bloom's: Analysis 7. An important factor used to determine the phases in a project life cycle are the control needs of the organization(s) involved in the project. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03 REF: P. 6 OBJ: CPMT.KLOP.15.01.02 KEY: Bloom's: Comprehension 8. Generally, project life cycle stages are designed so that the amount of money spent in each of the stages is nearly equivalent. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.06 REF: P. 6 OBJ: CPMT.KLOP.15.01.02 KEY: Bloom's: Comprehension 9. Project customers can be either internal or external to the organization. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03 REF: P. 6 OBJ: CPMT.KLOP.15.01.02 KEY: Bloom's: Knowledge 10. Different project life cycle models are used for different types of projects. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.06 REF: P. 6 OBJ: CPMT.KLOP.15.01.02 KEY: Bloom's: Knowledge 11. All projects go through a common project life cycle that includes four stages: concept, development, production and close-out. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.06 REF: P. 6 OBJ: CPMT.KLOP.15.01.02 KEY: Bloom's: Analysis 12. The name and number of phases in a project life cycle are determined by the organization(s) involved in the project. ANS: T DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.06 REF: P. 6 OBJ: CPMT.KLOP.15.01.02 KEY: Bloom's: Application 13. Integration management represents the processes and activities to identify, define, combine, unify and coordinate the various processes and project management activities. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.06 REF: P. 9 OBJ: CPMT.KLOP.15.01.03 KEY: Bloom's: Knowledge 14. Scope management includes the processes to manage timely completion of the project. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.06 REF: P. 9 OBJ: CPMT.KLOP.15.01.03 KEY: Bloom's: Application 15. Communications management generally entails the processes that organize, manage, and lead the project team. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.06 REF: P. 9 OBJ: CPMT.KLOP.15.01.03 KEY: Bloom's: Application 16. Stakeholder management is comprised of the processes to identify the people, groups, or organizations that could impact or be impacted by the project, analyze their expectations and impact, and developing strategies for engaging them and managing conflicting interests. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03 REF: P. 9 OBJ: CPMT.KLOP.15.01.03 KEY: Bloom's: Knowledge 17. Cost management processes are involved in planning, estimating, budgeting,m financing, funding, managing and controlling costs so that the project can be completed within the approved budget. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03 REF: P. 9 OBJ: CPMT.KLOP.15.01.03 KEY: Bloom's: Knowledge 18. The most critical measures of project success are completing the project on schedule and on budget. ANS: F DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.06 REF: P. 11 OBJ: CPMT.KLOP.15.01.04 KEY: Bloom's: Analysis 19. Some projects are considered successful if they reap business benefits like increased profitability, even if completed late or over budget. ANS: T DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.06 REF: P. 11 OBJ: CPMT.KLOP.15.01.04 KEY: Bloom's: Analysis 20. In reality, many projects are fully successful in some ways, but less successful in others. ANS: T DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.06 REF: P. 11 OBJ: CPMT.KLOP.15.01.04 KEY: Bloom's: Analysis 21. In agile projects, the customer representative role is passive, and their involvement is typically limited to the early stages of the project. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03 REF: P. 14 OBJ: CPMT.KLOP.15.01.05 KEY: Bloom's: Application 22. The project manager is normally directly accountable for the project results, schedule and budget. ANS: T DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03 REF: P. 14 OBJ: CPMT.KLOP.15.01.06 KEY: Bloom's: Comprehension 23. The project management office (PMO) is typically the person or group that provides the financial resources and support for the project, and is accountable for enabling success. ANS: F DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.06 REF: P. 14 OBJ: CPMT.KLOP.15.01.06 KEY: Bloom's: Application MULTIPLE CHOICE 1. Which of the following examples is NOT a typical or appropriate situation to employ project management? a. b. c. d. improving an existing work process installing a new computer system conducting a routine, standard customer service operation developing a new product ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03 REF: P. 5 OBJ: CPMT.KLOP.15.01.01 KEY: Bloom's: Application 2. Which of the following examples is NOT a typical or appropriate situation to employ project management? a. improving a soldering process in an assembly line b. processing deposits and withdrawals in a bank c. installing a new accounting application on to a server d. developing a new medical device for use by clinics ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03 REF: P. 5 OBJ: CPMT.KLOP.15.01.01 KEY: Bloom's: Application 3. All of the following factors have influenced the increased reliance upon project management in recent years EXCEPT: a. rapid growth and changes in the information technology and telecommunications industries b. realization that methods for large projects can be modified and used for small projects c. increased international competition and its influence on consumer demands d. the decreased demands of ongoing operational work ANS: D DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03 REF: P. 5 OBJ: CPMT.KLOP.15.01.01 KEY: Bloom's: Comprehension 4. Projects often require tradeoffs among all of the following EXCEPT: a. b. c. d. scope cost schedule programs ANS: D DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03 REF: P. 10 OBJ: CPMT.KLOP.15.01.01 KEY: Bloom's: Comprehension 5. Once projects are completed, they will typically yield all of the following results EXCEPT: a. b. c. d. a unique product, service or result make or buy decisions stakeholders whose interests are affected by the outcome a primary deliverable along with supporting deliverables ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03 REF: P. 4 OBJ: CPMT.KLOP.15.01.01 KEY: Bloom's: Application 6. In an adaptive or change - driven project life cycle: a. the product or deliverable is well understood. b. planning precedes all executing. c. early results lead into planning later work. d. the waterfall approach is commonly used. ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03 REF: P. 7 OBJ: CPMT.KLOP.15.01.05 KEY: Bloom's: Application 7. Which of the following statements correctly describes project management? a. b. c. d. Project management applies knowledge, skills, tools and techniques to project activities. Project management should not involve tradeoffs between scope, schedule and cost. Project management only relies upon checklists to plan and execute the work. Project management’s goal is to maintain efficiency of ongoing operations. ANS: A DIF: Moderate REF: P. 4 OBJ: CPMT.KLOP.15.01.01 NAT: BUSPROG.CPMT.KLOP.15.06 KEY: Bloom's: Comprehension 8. Which of the following statements regarding project life cycles is most accurate? a. All research and development organizations rely upon a four-stage project life cycle that includes initiating, planning, executing and closing. b. The project life cycle is the same regardless of the type of projects managed by an organization. c. Many different project life cycle models are used, for different types of projects. d. All project life cycles are the same across every industry ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03 REF: P. 6 OBJ: CPMT.KLOP.15.01.02 KEY: Bloom's: Comprehension 9. In the PMBOK, the five logical groupings of the project management inputs, tools and techniques, and outputs are called the: a. project management knowledge areas b. project management process groups c. life cycle stages d. phases and gates ANS: B DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03 REF: P. 9 OBJ: CPMT.KLOP.15.01.03 KEY: Bloom's: Analysis 10. When applied to project management, the human resource management knowledge area typically involves which of the following activities? a. b. c. d. determining the work necessary for project completion estimating, budgeting and controlling project costs identifying, analyzing and controlling project risks organizing, managing and leading the project team ANS: D DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03 REF: P. 9 OBJ: CPMT.KLOP.15.01.03 KEY: Bloom's: Knowledge 11. Which of the ten knowledge areas defined in the Project Management Body of Knowledge includes the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully? a. Project scope management b. Project quality management c. Project communications management d. Project stakeholder management ANS: A DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03 REF: P. 9 OBJ: CPMT.KLOP.15.01.03 KEY: Bloom's: Knowledge 12. Which of the ten knowledge areas defined in the Project Management Body of Knowledge includes the activities of purchasing or acquiring products, services or results from outside the project team? a. b. c. d. Scope management Quality management Communications management Procurement management ANS: D DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03 REF: P. 9 OBJ: CPMT.KLOP.15.01.03 KEY: Bloom's: Knowledge 13. Achieving project success is determined by all of the following EXCEPT: a. b. c. d. creating deliverables that include all required features involving only important key stakeholders completing the project on schedule and on budget providing outputs that please the project’s customers ANS: B DIF: Challenging NAT: BUSPROG.CPMT.KLOP.15.03 REF: P. 9 OBJ: CPMT.KLOP.15.01.04 KEY: Bloom's: Analysis 14. Projects are considered successful for all of the reasons below EXCEPT:.. a. b. c. d. members of the team learn new skills working on the project. the organization captures lessons learned for future projects. the team has demonstrated heroics to meet project objectives the organization reaps business level benefits. ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03 REF: P. 11 OBJ: CPMT.KLOP.15.01.04 KEY: Bloom's: Application 15. Which of the following actions will likely cause a project to fail? a. b. c. d. dedicating valuable team member time to identify risk events spending project funding to procure needed tools and spare parts unclear or conflicting stakeholder expectations conducting a project audit to evaluate performance ANS: C DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03 REF: P. 12 OBJ: CPMT.KLOP.15.01.04 KEY: Bloom's: Application 16. Project failure can result from all of the following causes EXCEPT: a. b. c. d. support of senior management changes in scope are not agreed upon by all parties involved. too little time is allowed for project completion. planning is not adequate. ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03 REF: P. 12 OBJ: CPMT.KLOP.15.01.04 KEY: Bloom's: Comprehension 17. A project manager in agile projects who serves and leads in a collaborative, facilitation manner is called a: a. b. c. d. program manager scrum master sponsor functional manager ANS: B DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03 REF: P. 15 OBJ: CPMT.KLOP.15.01.06 KEY: Bloom's: Knowledge 18. Typically, a steering team or leadership team is responsible for all of the following project related roles EXCEPT: a. b. c. d. selecting, prioritizing and resourcing projects providing rigid policies, procedures, standards and guidelines ensuring accurate progress is reported and adjustments made aligning projects with the organization’s strategic plans ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03 REF: P. 14 OBJ: CPMT.KLOP.15.01.06 KEY: Bloom's:Comprehension 19. Which of the following roles is typically associated with the project manager? a. the person assigned by the performing organization to lead the team that is responsible for achieving the project objectives b. the person with management authority over a unit within a functional organization c. the person responsible for project methods, standards and training d. the person responsible for providing the financial resources and support for the project and is accountable for enabling success. ANS: A DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.06 REF: P. 14? OBJ: CPMT.KLOP.15.01.06 KEY: Bloom's: Application 20. Typically, the senior customer representative is responsible for which of the following project roles? a. b. c. d. develops the project schedule and budget determines how the project work will be accomplished ensures the needs of the customer’s organization are identified and prioritized helps the project manager with running meetings and providing status reports ANS: C DIF: Easy NAT: BUSPROG.CPMT.KLOP.15.03 REF: P. 14? OBJ: CPMT.KLOP.15.01.06 KEY: Bloom's: Knowledge 21. From an agile project management perspective, which of these constraints are considered to be fixed? a. Quality and value c. Scope and time b. Resources and schedule d. Customer satisfaction ANS: B DIF: Moderate NAT: BUSPROG.CPMT.KLOP.15.03 REF: P. 11 OBJ: CPMT.KLOP.15.01.05 KEY: Bloom's: Comprehension ESSAY 1. Contrast project management with operations management. How do these differences impact the approach required to manage a project successfully? ANS: Key concepts to be covered in the response include: Operations - Ongoing; continuous; repetitive process- Management approach can include using checklists to guide operational work. Project - Temporary; unique - management of a project entails gathering requirements and creating a project plan. Using a checklist is not sufficient due to the unique nature of the project. DIF: Moderate REF: P. 5 NAT: BUSPROG.CPMT.KLOP.15.03 OBJ: CPMT.KLOP.15.01.01 KEY: Bloom's: Comprehension 2. Project managers frequently face competing constraints. Identify these common constraints and describe approaches that project managers can use to make the trade-offs required to succeed. ANS: Key concepts to be covered in the response include: Project constraints are: scope, schedule, cost, quality, resources, and risks. During management of a project, tradeoffs must be made between these factors. From a client perspective, projects typically have time and cost constraints, so a project manager needs to be concerned with achieving desired scope and quality, subject to the constraints of time and cost. As a project is conducted, many opportunities and challenges may occur. The project manager will need to understand which of these four constraints must take precedence, and which may be sacrificed. Understanding the customer’s desires will help the project manager to make a good decision. DIF: Challenging REF: P. 4, pp. 10 - 11 OBJ: CPMT.KLOP.15.01.01 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Analysis 3. The Project Management Body of Knowledge (PMBOK® Guide) published by the Project Management Institute identifies five process groups. Briefly identify and describe each of these five process groups. ANS: Key concepts to be covered in the response include: A project management process group is a “logical grouping of the project management inputs, tools and techniques, and outputs.” The five process groups defined in the PMBOK Guide are: Initiating: Define the project or new phase and obtain authorization Planning: Establish scope, refine objectives and define actions to attain objectives. Executing: Complete the work defined to satisfy project specifications. Monitoring and controlling: Track, review and regulate progress and performance, identify changes required, and initiate changes. Closing: Finalize all activities to formally close a project or phase. DIF: Moderate REF: P. 9 NAT: BUSPROG.CPMT.KLOP.15.03 OBJ: CPMT.KLOP.15.01.01 KEY: Bloom's: Comprehension 4. Compare and contrast predictive, or plan-driven project life cycles with agile, or change-driven life cycles. When might each type of life cycle be appropriate? ANS: Key concepts to be covered in the response include: In a predictive or plan-driven life cycle, the product is well understood. There is a single detailed planning phase that is completed prior to project execution. In an adaptive or change-driven project life cycle, a single detailed project plan is not completed prior to project execution. The plan is developed iteratively and incrementally. Iterations are very rapid and are fixed in time and cost. Early results lead into planning later work. DIF: Moderate REF: P. 7 NAT: BUSPROG.CPMT.KLOP.15.03 OBJ: CPMT.KLOP.15.01.05 KEY: Bloom's: Comprehension 5. The leadership of top management is often cited as a factor that is critical to project success. Describe the key project related activities of the steering team, chief projects officer and sponsor. ANS: Key concepts to be covered in the response include: Steering Team - Often comprised of the CEO and direct reports. Responsible for selecting, prioritizing, and resourcing projects in accordance with the organization’s strategic planning. As the project progresses, they also ensure that accurate progress is reported and adjustments made as necessary. Chief Projects Officer - This role is sometimes called a project management office (PMO), which is “an organizational structure that standardizes the project related governance processes and facilitates the sharing of resources, methodologies, tools and techniques.” The role of the PMO can range from supporting project managers, to controlling them by managing projects directly. Sponsor - PMI’s definition is that a sponsor is “the person or group that provides resources and support for the project and is accountable for enabling success.” This person takes an active role in chartering the project, reviewing progress, mentoring, and assisting the project manager throughout the project. DIF: Moderate REF: P. 14 NAT: BUSPROG.CPMT.KLOP.15.03 OBJ: CPMT.KLOP.15.01.06 KEY: Bloom's: Comprehension