UNIVERITY OF JOHANNESBURG ENGINEERING MANAGEMENT SEMESTER TEST 2013 (Version X34) COURSE: M.ING Engineering Management TIME: 4 HOURS PAPER: PROJECT MANAGEMENT MARKS: 350 ________________________________________________________________________________ MODULE : ROJECT MANAGEMENT CODE : PJB4088 DATE : 24 OCTOBER 2013 _________________________________________________________________ INSTRUCTIONS TO CANDIDATES: Candidates must follow the hand-in procedure to the letter. No late submissions will be considered. Answer the following questions by placing a clear bold “X” over the appropriate letter on the provided multiple choice answer sheet. Text books or other notes may be consulted during the duration of the exam Question papers must be handed in together with the answer book. This is an open book TAKE HOME assessment. NO GROUP WORK IS PERMITTED and no consultation with other students or any other person may be entered into during the duration of this test. Read the questions carefully and answer only what is asked. Keep answers crisp, logical and to the point. Write neatly and legibly The general University of Johannesburg policies, procedures and rules pertaining to written assessments apply to this assessment. Failing to return this paper as per the submitting procedure will result in your answers not being assessed. SECTION A: MULTIPLE CHOICE: Make a clear cross (X) ) over the appropriate letter for the multi-choice questions on Section A of your answer sheet. Mark allocation: Correct answer = 1, Incorrect answer = - 1/5; No answer = 0 (80 marks) 1. Which statement is true? (a) Response to the client’s needs is as rapid in pure project organization as in matrix organization, but matrix organization is less flexible. (b) Matrix organizations tend to be less rapid in response to clients’ needs than pure project organizations. (c) Matrix organizations are as rapid as pure project organizations in response to client needs and just as flexible. (d) all the above are false (e) all are true. 2. The process of evaluating a potential project: (a) should focus primarily on the issues of profitability and payback (b) is a time-consuming and difficult activity, the importance of which cannot be overstated (c) is an activity which is best left to project and systems management specialists (d) should be minimized in both time and cost (e) none of the above. 3. Which of the following are all project problem areas that require strict control? (a) Performance, cost, profits, safety (b) Costs, quality, time, risk (c) Profits, cash flow, time, customer satisfaction (d) Time, resource utilization, safety, profits (e) none of the above. 4. The major problems in the design of PM reports are (a) too much detail. (b) poor interface between the project and the parent firm's information systems. (c) poor correspondence between planning and the monitoring system. (d) all of the above. (e) none of the above. 5. An advantage to smoother resource usage is that: (a) much less hands-on management is required (b) the project manager can arrange to have the resources available when (c) needed (d) a just-in-time inventory policy may be used (e) none of the above. 6. For constrained resource project scheduling, the generally best priority rule was found to be: (a) Shortest task first (b) Most resources first (c) Minimum slack first (d) (e) Most resources first Most successors first. 7. Project control is focused on three elements: (a) cost, time, and performance. (b) expenses, schedule, and standards. (c) budget, schedule, and objectives. (d) budget and objectives. (e) cost and performance. 8. Attempts to expedite a project are subject to: (a) marginal increasing costs (b) marginal increasing returns (c) marginal decreasing returns (d) marginal decreasing costs (e) none of the above. 9. The two constraints on resource allocation are: (a) Scarce resource and budget (b) Budget and time (c) Cost and resource (d) Time and resource (e) None of the above. 10. An analytic tool available to the PM specifically for controlling the project is the (a) Gantt chart. (b) PERT/CPM chart. (c) earned value analysis. (d) all of the above. (e) none of the above. 11. Because of the nature of control, to achieve a balanced control system one has to (a) forget about being cost-effective. (b) design an extensive and detailed system. (c) consider gearing the system for the end results sought. (d) institute across-the-board controls. (e) none of the above. 12. In order to control creative projects, the PM should (a) adhere to the same processes that he/she would follow for any project. (b) stress schedules and budgeting (c) consider controlling through progress review. (d) minimize any control efforts in order not to hamper the creative process. (e) none of the above. 13. Which of the following is NOT a project problem area that requires control? (f) performance (g) costs (h) profits (i) (j) time none of the above. 14. With regards to the timing of reports, project managers should endeavour to a. develop a periodic reporting schedule. b. maintain a schedule consistent with calendar events and sequences (e.g., weekly). c. schedule the reports into the project plan. d. all of the above. e. none of the above. 15. Insufficient resources being available when needed is an example of a condition which would require control of (a) time. (b) objectives. (c) performance. (d) schedule. (e) standards. 16. A benefit of detailed reporting, when delivered to the proper individual on a timely basis, is (a) an early warning signal of potential problems and delays in the project. (b) faster management action in response to unacceptable or inappropriate work. (c) mutual understanding of the goals of the project. (d) all of the above. (e) none of the above. 17. A type of resource that must be controlled by the PM is (a) human resources. (b) physical assets. (c) financial resources. (d) a and c. (e) all the above. 18. It is useful to view the control process as a (a) closed loop system. (b) means to put the hassles of a project "up front". (c) situational activity occurring at benchmark points & conclusion of the project. (d) desirable system which, if time permits, can be an effective managerial tool for the PM (e) none of the above. 19. The organization is responsible for the conservation and proper use of resources owned by the client or owned by the organization and charged to the client, and this responsibility on projects is that of (a) the comptroller. (b) the project manager. (c) the project engineer. (d) the controller. (e) none of the above. 20. The decision to terminate a project should be made by (a) the PM. (b) the client. (c) the project controller. (d) a broadly-based committee of top managers. (e) none of the above. 21. A type of question that should be asked when designing a control system is (a) what corrective actions are available. (b) how realistic are the standards. (c) how timely must the monitoring be. (d) all the above. (e) none of the above. 22. The first step in setting up an monitoring system is (a) to determine how it can be integrated with the budget. (b) to determine who will be responsible for the system. (c) to secure a commitment from management to act upon any adverse results. (d) to identify the key factors to be controlled. (e) none of the above. 23. In the design of a control system, the system should (a) be designed to operate as simply as possible. (b) should be capable of being extended or otherwise altered. (c) must be truly useful (d) all the above. (e) none of the above. 24. The best source of items to be monitored during project implementation is in the (a) action plan. (b) WBS. (c) budget. (d) Linear responsibility chart. (e) master schedule. 25. For each factor to be measured during a project audit, we must first establish (a) performance criteria. (b) standards. (c) data collection procedures. (d) all the above (e) a and b above 26. In the segment of the post-control report, the emphasis is not on what the project did but rather on how it did it. (a) milestones, checkpoints, and budgets section. (b) the final report on project results section. (c) recommendations for performance and process improvement section. (d) project objectives section. (e) none of the above. 27. Technical project audits are (a) usually initiated during the latter stages of a project. (b) primarily initiated by senior management to get a detailed evaluation of the project's status. (c) not as detailed as the general audit. (d) usually initiated during the early stages of a project. (e) none of the above. 28. Which of the following is the most important use of the project monitoring system? (a) learning from past mistakes (b) keeping senior management informed on project progress (c) making information available for timely decisions (d) keeping the project controller informed (e) all the above are equally important 29. All dynamic project control systems contain (a) flexibility (b) accurate sensors and monitors (c) cost effectiveness (d) feedback processes (e) none of the above. 30. Monitoring is collecting, recording, and reporting of information concerning any and all aspects of the project (a) to senior management so that they can keep tabs on the project's progress. (b) which is initiated by the controller of the organization to ensure that the project is operating within its budgetary guidelines. (c) which the PM and others in the organization need to know. (d) all the above. (e) none of the above. 31. Monitoring should focus on measuring (a) data that is easily gathered. (b) objective types of data or events. (c) what senior management wants to know. (d) various facets of output rather than activity. (e) none of the above. 32. The principle distinction between a financial audit and a project audit is that (a) the financial audit has limited scope, the project audit has broad scope. (b) the financial audit must create a basis for confirming the status of the project whereas the project audit does not. (c) the financial audit requires an extensive set of records whereas the project audit uses the project's own documents. (d) none of the above. 33. Monitoring is a link between (a) leading and directing. (b) measuring and controlling. (c) (d) (e) planning and controlling. leading and planning. planning and measuring. 34. In the relationship between a project’s time use and its resource use, the time-limited condition is when the project must be finished: (a) using whatever resources are required in order to finish by a certain time. (b) by a certain time, using as few resources as possible (c) by a certain time, using as few resources as possible (d) as soon as possible, but without exceeding general resource constraints (e) using only the available resources but as quickly as possible (f) none of the above. 35. The average resource requirement during a set time period divided by the resource availability for that period is a measure of: (a) resource utilization (b) resource slippage (c) system occupancy (d) resource load (e) none of the above. 36. If the minimum slack rule is used, resources would be devoted to: (a) critical activities first (b) activities with the shortest duration first (c) tasks with the most number of critical followers first (d) activities that use the most resources first (e) none of the above. 37. The primary focus of project evaluation is to: (a) identify problems in the project. (b) determine the financial state of the project. (c) aid in achieving the project's goals. (d) give the project manager a better feel for how the project is progressing. (e) all of the above. 38. Which is a reason for project failure? (a) A project organization was not required. (b) Insufficient support from top management. (c) Poor planning. (d) b and c. (e) all the above. 39. Which of the following reasons for project failure could be blamed on poor project evaluation? (a) ongoing reviews refrained from in-depth evaluation (b) failure to evaluate personnel (c) reluctance to ask meaningful, detailed questions (d) all of the above (e) none of the above. 40. The most natural time for a project evaluation is (a) when major milestones and contractual commitments are missed. (b) when major milestones and contractual commitments are completed. (c) when major milestones and contractual commitments are scheduled for completion. (d) none of the above. (e) all of the above. 41. The results of project evaluation help ongoing and future projects to (a) identify problems earlier. (b) improve project performance. (c) identify mistakes, remedy them, and avoid them in the future. (d) provide information to the client. (e) all the above. 42. The first step in setting up a monitoring system is to identify the (a) key factors to be controlled. (b) personnel. (c) managers to be informed. (d) required resources. (e) none of the above. 43. One of the goals of project evaluation is to generate recommendations in order to (a) improve project performance. (b) speed the achievement of results. (c) identify mistakes, remedy them, and avoid them in the future. (d) all of the above. (e) none of the above. 44. The audit life cycle contains all but which of the following? (a) project audit initiation (b) project baseline definition (c) project audit definition (d) audit report preparation (e) none of the above. 45. A task that requires a fixed amount of time and known quantities of resources is called: (a) time limited (b) system constrained (c) resource limited (d) cost constrained (e) labour limited. 46. The monitoring system is a direct connection between (a) planning and control. (b) control and evaluation. (c) planning and scheduling. (d) scheduling and project termination. (e) evaluation and scheduling. 47. During project evaluation, measurement problems may be more obstinate when stated in terms of (a) profits. (b) rates of return. (c) budget. (d) schedule. (e) a and b. 48. Termination by extinction (a) ends a project by institutionalizing it as a part of the parent organization. (b) may occur because the project has been successful or unsuccessful. (c) occurs only if a project deals with construction. (d) never occurs in PM. (e) none of the above. 49. This segment of the audit report focuses on the auditor's conclusions regarding the project's progress, together with recommendations concerning any needed changes. (a) current status (b) future project status (c) critical management issues (d) risk analysis (e) none of the above 50. In this segment of the project audit life cycle, the focus is on establishing performance standards against which the project's performance and accomplishments can be evaluated. (a) project audit initiation (b) preliminary analysis of the project (c) audit report preparation (d) none of the above. 51. An essential condition of a project audit/evaluation is that (a) the auditing team is properly selected. (b) all project records and files must be accessible to auditors. (c) the auditors will have unrestricted contact with the project team members. (d) all the above. (e) none of the above. 52. Project evaluation appraises the progress and performance of a project compared to (a) that project's planned progress and performance. (b) the progress and performance of other similar projects. (c) the standards of top management. (d) both a and b. (e) both a and c. 53. Which of the following is the most difficult task in terms of the project audit? (a) measurement of milestone completion (b) measurement of performance against planned budget (c) determination of what revenues to assign to the project (d) (e) measurement of objectives when a project has been stated in terms of rates of return none of the above. 54. An advantage of the scoring models is: (a) they are in linear form and thus the essential elements of the model are independent (b) that one assumes that all criteria are of equal importance (c) that they are a direct reflection of managerial policy (d) none of the above (e) all of the above. 55. Which of the following is NOT a basic object of the post-project audit? (a) to reveal any dishonesty on the part of project team members (b) to obtain managerial feedback (c) to account for all project property (d) to account for all project expenditures (e) to conform to contractual obligations. 56. Which is NOT a method of termination? (a) Addition (b) Integration (c) Starvation (d) Dispersion (e) Extinction 57. A comment which should be included in a formal project audit report is (a) the current status of the project. (b) a risk assessment. (c) the limitations of the audit. (d) all the above. (e) none of the above. 58. Showing the amount of individual resources an existing schedule requires during specific time periods, is called: (a) its crash condition (b) an allocation table (c) resource loading (d) the cost slope (e) none of the above. 59. Positional Negotiation is: (a) ensuring both parties are better off in the outcome (b) stating immediate wants on the assumption that the environment is static (c) a process of negotiation that aims to achieve at least a win-win result (d) ensuring that both parties maintains their position in the negotiations (e) none of the above 60. During the termination stage of the project life cycle, the PM should be concerned about a. influencing the residual attitudes toward the project, particularly concerning the client, senior management, and the project's members. b. insuring that all implementation plans have been carried out in order to maximize the project's technical success. c. resolving any and all problems that still persist. d. all of the above. e. none of the above. 61. In general, the problems of integration are inversely related to the level of experience that the parent organization has had with respect to (a) instituting new divisions into the organization's formal structure. (b) the type and level of technology being integrated. (c) its ability to protect and support the more formalized nature of the project in its divisional form. (d) all the above. (e) none of the above. 62. According to a survey of executives, the most important reason for prematurely terminating a project is (a) the realization that resources could be better spent elsewhere in the organization. (b) the probabilities of technical and/or commercial failure. (c) the change in the political climate associated with the support or resistance of the project. (d) if the focus of the project, whether overtly or covertly, has become primarily one of perpetuating the project. (e) none of the above. 63. With regards to handling personnel actions during the termination stage, a PM should (a) not waste any effort on team members who have simply quit working because they know the project is about to end. (b) avoid any direct involvement in personnel actions and instead shift responsibilities for release or reassignment to the personnel department. (c) simply post the reassignment/layoff-notice. (d) none of the above. 64. Which contact cannot be made without clearance from senior management? (a) the customer (b) project team members (c) functional managers (d) the PM (e) the project controller. 65. The project's Final Report (a) is an effective tool for top management to evaluate the project. (b) is a chronicle of the life of the project, focusing on what was done and how things were managed. (c) should focus only on the positive aspects of the project, highlighting what was best. (d) (e) all of the above. none of the above. 66. Termination of a project by addition results in: (a) the project becoming a formal part of the organization. (b) receiving a budget like the other areas of the organization. (c) its systems being redistributed among those of the existing organization. (d) a and b. (e) all of the above. 67. First and foremost, the project auditor should (a) tell the truth. (b) meet with the PM. (c) introduce the problems areas of the project. (d) indicate the current project status. (e) none of the above. 68. The purchase of "creativity" outside the firm appears to (a) increase the risk involved. (b) increase the cost of creative ideas. (c) decrease the cost of creative ideas. (d) a and b (e) a and c. 69. Which of the following is true? a. A project's information system should not be built around the parent organization's information system. b. It is not necessary to monitor individual task performance, only overall performance c. The monitoring system should correspond to project plans in order to ensure the meaningfulness of control activities. d. Project reports should require highly detailed input data to ensure the validity of the resulting information. e. None of the above are true. 70. Which project organization does NOT facilitate a holistic approach to the project? (a) pure project (b) matrix (c) functional (d) mixed (e) all the above do. 71. Regarding creativity, most organizations, including forward-looking high-technology firms, (a) have a limited tolerance for innovation. (b) place great importance on and excessively reward innovation. (c) have few problems in stifling innovation. (d) all the above. (e) none of the above. 72. A major source of control system imbalance is (a) placing too much weight on easy-to-measure factors. (b) emphasizing short-run results at the expense of long-run objectives. (c) over-control on the part of any particular individual or an aggressive executive. (d) all of the above. (e) none of the above. 73. All of the following are advantages of numeric models EXCEPT: (a) undiscounted models are simple to use and understand (b) some models ignore the time value of money (c) all use readily available accounting data to determine cash flows (d) model results are in familiar terms to decision makers (e) all are advantages. 74. A type of question that should be asked when considering whether or not to terminate a project. (a) Is the scope of the project still consistent with the organization's financial strength? (b) Is organizational project support being spread too thin? (c) Is the project team still innovative, or has it gone stale? (d) all of the above. (e) none of the above. 75. In preparing a project evaluation, the auditor should remember (a) not to worry about the anxiety her/his activity may be creating among the project team. (b) to make the evaluation as critical as possible. (c) that the worry experienced by the project team produces self-protective activities which, in turn, lowers the activity devoted to the project. (d) all of the above. (e) none of the above. 76. Which are helpful for handling uncertainty? (a) pro forma documents (b) risk analysis (c) simulation (d) all of the above (e) none of the above. 77. What are the two distinct parts of the termination process? (a) decision process and implementation process (b) termination start and termination finish (c) pre-termination and post-termination (d) planning and execution (e) none of the above. 78. In brainstorming (a) criticism, judgment, and analysis of ideas is encouraged. (b) (c) (d) (e) criticism, judgment, and analysis of ideas is prohibited. introduction of wild ideas should be limited. introduction of quality ideas should be encouraged. none of the above. 79. When a successful project is terminated by institutionalizing it as a formal part of the parent organization, then its termination is by (a) integration (b) extinction (c) addition (d) absorption (e) distribution 80. Which of the following is true concerning project goals throughout the life cycle? (a) Early in the life cycle, the project team’s focus is on how to achieve performance (b) Early in the life cycle, the team’s focus is on how to economize on costs (c) During the latter stages of life cycle, focus shifts from time to cost (d) Cost uncertainty increases as a project moves toward completion (e) In the middle of the life cycle, attention is not directed toward any of the goals. SECTION B: Answer the questions in section B of the answer sheet by either crossing (X) block T for true or block F for false on the multi-choice question answer sheet. Mark allocation: Correct answer = 1, Incorrect answer = - 1/5; No answer = 0 1. In pure project organization, the project is separate from the parent system. 2. Fortunately for project managers, the disadvantages of project management do not stem from the same sources as do the advantages. 3. According to the project life cycle concept, the greatest amount of activity occurs during the final stages of the project. 4. The total Rand value approach is the ratio of the total Rand value of proposals that the contractor won as a percentage of the total Rand value of all the proposals the contractor submitted to various customers during a specific time period. 5. Project termination is final - projects cannot be reinstated if once terminated. 6. Schedule tends to become more important as the project starts up and progresses. 7. The customer will make payments to the contractor according to the payment schedule in the contract. 8. A “strong” matrix would be expected to have many part-time personnel. 9. In project organization each executive level manager is responsible for a project. 10. Personality conflicts occur mainly at the beginning of a project. 11. Parent organization refers to the client or organization for which the project is to be done 12. Projectitis is a social phenomenon leading to a disinterest in the project 13. When a project is too small to bother to set up a full project group, a “task force” may handle the problem. 14. The simplicity of a functional form should be avoided if a matrix form of organizing can get the job done. 15. The hybrid or mixed form of organization typically entails a larger number and greater size of projects than does the matrix form. 16. In matrix organized projects, the project manager controls technological decisions while the functional heads control administrative decisions. 17. Locus-of-authority conflicts are endemic to matrix-organized projects. 18. The matrix organization is a combination of the functional and pure project organizations. 19. There is unity of command in matrix organization. 20. Mixed organizational systems encourage overlap, duplication, and friction. 21. A work breakdown structure is prepared to determine the exact nature of the tasks required to complete the project. 22. For the most part, projects are directly integrated into the functional structure of an organization because of their specialized nature. 23. Creativity may be thought of as a technique, rather than a personal characteristic. 24. For handling uncertainty, pro forma documents, risk analysis, and simulation with sensitivity analysis are all helpful. 25. Under a pure project organizational structure, the project manager has full authority and all members of the project team report directly to the project manager. 26. One of the major disadvantages of the pure project organization as a structural form is that it tends to support a holistic approach to the project and, as such, adds complexity to the project’s organization. 27. Pure functional and pure project organization cannot coexist in the same firm. 28. For the most part, organizations typically spend sufficient time and effort on the planning and controlling of projects. 29. The nature of project professionals tends to cause project delays. 30. In staffing, one of the major challenges facing the PM is in trying to convince both the employee and their superior that the project is in the best interest of both parties. 31. The degree of success concerning the staffing of the project team depends in large part on the political skill and ability of the project manager. 32. Monitoring is essentially the same thing as controlling. 33. It is advisable to terminate a project if it is specifically related to a particular department within the firm but doesn't have the department's support. 34. There are four significant ways of concluding projects: extinction, addition, integration, and distribution. 35. Project planning clearly includes budgeting and scheduling. 36. Costs would be considered design parameters by systems engineers. 37. The goal of the work breakdown structure is to reach a task level that is associated with an individual job and individual responsibility. 38. A contractor should bid on RFPs where there is little or no competition and avoid ones where they might have a competitor bid on the project. 39. The project manager plans all task elements connected with the project. 40. The structure of the WBS takes into account the relative importance of each group or individual. 41. Since the initial project meeting is a coordinating meeting, the basic areas of performance responsibility need not be accepted by the participants. 42. All changes must be documented and approved by the contractor's project team before they are incorporated into the project. 43. The use of project management often results in more internal complexity. 44. Termination comes to most projects. 45. Plans serve as a map of the process involved in managing a project and, as such, they must be substantially explicit, covering even the most apparently insignificant details. 46. Once a project has undergone a series of developmental revisions and received a final endorsement from senior management, any subsequent change in the plan must be processed through a formal change order procedure. 47. Senior management’s approval of a project not only indicates its willingness to fund and support the project but it also indicates to subordinate elements in the organization that they may be called upon to commit resources to the project. 48. A work breakdown structure may be perceived as a type of organizational chart, except that tasks are substituted in the blocks for people. 49. Top management needs detailed information about the progress of a project. 50. Top management should receive progress reports less frequently than lower level workers. 51. Exception reports are for management's needs. 52. Variances should be tracked and plotted to determine trends and uncover problems. 53. Monitoring should concentrate primarily on measuring intensity of activity rather than output. 54. One of the major advantages of a matrix organization is that such a structure allows the project to be the major point of emphasis. 55. Project management information systems should be designed with flexibility in mind. 56. The spending variance in an earned value chart is the actual value completed less the planned (baseline) cost. 57. Monitoring should be kept distinct from controlling and evaluation. 58. The control process should be perceived as an open loop system. 59. The first step in setting up any monitoring system is to identify the key factors to be controlled. 60. The standards of a project are set up for the life of the project. 61. Top management is usually most concerned with schedule variance. 62. The criteria of data collection procedures are usually set up for the life of the project. 63. In project management, monitoring is considered the linkage between planning and control. 64. It is useful to incorporate controlling as an integral part of the organizational structure of the project, provided that it is externally imposed and administered. 65. As a rule, managers can only effectively plan one to three levels below their position. 66. A linear responsibility chart lists the personnel and organizations responsible for each task. 67. The most difficult aspect of implementing the project plan is the coordination of the various elements of the project so they can achieve their mutual goals of performance, scheduling, and budget. 68. Termination by integration consists of redistributing the functions of the project among the existing segments of the organization. 69. The “mixed” form of organization is not very common. 70. Negotiation skills are the most important tools of a project manager. 71. Scheduling conflicts are the top source of conflict at every stage of the project life cycle. 72. Priorities are a source of conflict among all parties-at-interest in a project. 73. A “project” is usually a very large, one-time activity with a well-defined purpose. 74. Technical issues are a source of conflict among all parties-at-interest in a project. 75. The project environment is that of conflict. 76. A “strong” matrix would be expected to have many part-time personnel. 77. In project organization each executive level manager is responsible for a project. 78. Technical conflicts predominate during both the build-up and main program stages. 79. Technical problems resulting in conflict between the project manager and the functional managers come to a head in the phase-out stage. 80. One requirement of conflict resolution methods is that they allow the parties to remain on amicable terms in the future. 81. A requirement of conflict resolution methods is that they foster honesty. 82. “Principled negotiation” has been proposed as a better method for resolving conflicts than what is termed “positional negotiation”. 83. In conflicts that involve the organization and an outsider, parties to the negotiations see themselves as opponents. 84. If a project’s organizational form is a strong matrix, the PM seeks a commitment of people from the functional manager. 85. Significant variances should serve as early warning guidelines for the project manager. 86. Not everyone concerned with a project need be tied into the reporting system. 87. Conflict in a project is highest during the project formation stage. 88. Technical problems are a major source of conflict during project phase-out. 89. A contractor should avoid no-bid decisions. 90. Computer programs cannot be used to predict project success. 91. Problem avoidance is not a realistic choice for the successful PM. 92. Locus-of-authority conflicts are endemic in matrix-organized projects. 93. Scheduling conflicts are most serious in project build-up and phase-out. 94. A win-win situation produces an optimal solution for all parties. 95. A “task force” is usually set up to handle a much smaller, highly dependent, long-range activity. 96. A “program” is a short-run project or a collection of various projects. 97. Everything that works in a project environment, with its own support systems, will work in the regular departments of the organization. 98. If there is high risk for the success of a project, the contractor should include a cost-reimbursement plan in their cost section if the RFP did not specify a contract type. 99. Most firms tend to use financial-type models for R&D project selection. 100. Successful contract opportunities are grounded in relationships. 101. It has generally been found that the factors associated with project success tend to stay the same regardless of industry. 102. It has generally been found that the factors associated with project success tend to stay the same regardless of project type. 103. Most of the attention given to termination is focused on the failing project. 104. The fundamental purpose of the Final Report is to determine the success/failure of the project. 105. The termination stage of a project has much impact on technical success or failure. 106. The middle stages of the project life cycle usually involve a focus on time with attention shifting to cost control in the latter stages. 107. Schedule tends to become more important as the project starts up and progresses. 108. Personality conflicts occur mainly at the beginning of a project. 109. The “mixed” form of organization is not very common. 110. When a project is too small to bother to set up a full project group, a “task force” may handle the problem. 111. The functional form of organization is advantageous for situations that will require large capital expenditures. 112. The simplicity of a functional form should be avoided if a matrix form of organizing can get the job done. 113. Establishing and building trust is key to developing effective and successful relationships with clients and partners. 114. Project tasks are rarely subcontracted out of the company so control can be maintained. 115. The hybrid or mixed form of organization typically entails a larger number and greater size of projects than does the matrix form. 116. In matrix organized projects, the project manager controls technological decisions while the functional heads control administrative decisions. 117. A good time to terminate a project is when the project no longer agrees with the goals or needs of the firm. 118. Lower level personnel need detailed information which, consequently, results in high frequency reporting. 119. The project manager usually chooses a project’s organizational form. 120. In pure project organization, the project is separate from the parent system. 121. The matrix organization is a combination of the functional and pure project organizations. 122. There is unity of command in matrix organization. 123. A work breakdown structure is prepared to determine the exact nature of the tasks required to complete the project. 124. For the most part, projects are directly integrated into the functional structure of an organization because of their specialized nature. 125. When the project involves an outside client, changes can be made without the client’s approval only if a change order is submitted to management. 126. Under a pure project organizational structure, the project manager has full authority and all members of the project team report directly to the project manager. 127. One of the major disadvantages of the pure project organization as a structural form is that it tends to support a holistic approach to the project and, as such, adds complexity to the project’s organization. 128. One of the major advantages of a matrix organization is that such a structure allows the project to be the major point of emphasis. 129. Most of the attention given to termination is focused on the failing project. 130. Pure functional and pure project organization cannot coexist in the same firm. 131. In staffing, one of the major challenges facing the PM is in trying to convince both the employee and their superior that the project is in the best interest of both parties. 132. The degree of success concerning the staffing of the project team depends in large part on the political skill and ability of the project manager. 133. One of the characteristics of a good project manager is that the individual is a good conflict avoider. 134. The decision to terminate a project early is relatively clear and easy. 135. The factors associated with project success are different for different industries. 136. Most of the problems of termination by addition are not present when the project is integrated. 137. Computer programs cannot be used to predict project failure. 138. When a project has ceased or slowed to the point that further progress on the project is no longer possible, one can conclude that, for all intents and purposes, the project has been terminated. 139. A project is said to be terminated by extinction only when the project was terminated because it was unsuccessful or was superseded by another project. 140. Termination by integration is the most common way of closing out successful projects and it is the most complex and difficult method. 141. Near-termination by budget decrement is a unique form of project termination in that, strictly speaking, it is not termination. 142. A common cause of project failure is poor planning, where the project's atmosphere becomes one of crisis management. 143. Contractors interested in submitting a proposal in response to an RFP must be realistic about the probability of being selected as the winning contractor. 144. The WBS is a basic project document forming the basis for costing, scheduling and work responsibility. 145. Generally speaking, the PM is the ideal individual to assume the responsibility of terminating a project since, under such circumstances, the PM will be the person most willing to expedite the termination procedures and activities. 146. During the termination stage, most PM's delay the personnel reassignment/release issue as long as possible because of a reluctance to face the interpersonal conflicts that might arise when new assignments and layoffs are announced. 147. A customer uses a request for proposal to solicit bids and then award a noncompetitive contract. 148. Idealists are better at solving problems than realists. 149. Most firms tend to use financial-type models for R&D project selection. 150. Risk analysis involves a simulation of the manager’s utility function. 151. A model is said to be stochastic when the input data are certain. 152. If the RFP format requirement states a page limit, the customer can reject a proposal that exceeds the page limit without any further review. 153. The biggest increases in the use of project management were initiated by the military. 154. Characteristics of a project are: a slow beginning, a buildup of size and speed, a push to completion, and then a phasing out of the project. 155. Following the initiation of a project, momentum continually increases until completion of the project. 156. Projects are typically very cost oriented during the high-activity period of the project. 157. Projects are typically very performance and schedule oriented throughout the project. 158. The life cycle of a project is a slow start, then a gaining of momentum, and finally a quick finish. 159. When discussing project management, one must recognize that there is little distinction between such terms as project, program, and task. 160. While it may appear to be a rather simple idea, the basic purpose for initiating a project is to accomplish some goal. 161. Since a project is considered a one-time activity, projects only occasionally interact with the organization’s on-going operations. 162. Project organization decreases the likelihood that organizational policy will be violated. 163. The amount of effort put into a project reaches a peak and remains there until completion of the project. 164. A “task force” is usually set up to handle a much smaller, highly dependent, long-range activity. 165. Characteristics of a project are: a slow beginning, a buildup of size and speed, a push to completion, and then a phasing out of the project. 166. The project environment is that of conflict. 167. Changes can be initiated by the customer or be proposed by the contractor. Some changes may necessitate a change in price (increase or decrease); others may not. 168. A war room may be a source of technical assistance in managing projects 169. The use of project management often results in more internal complexity. 170. Sunk costs are not relevant to the project termination decision. 171. A successful project manager must be a conflict avoider. 172. Projects are typically very performance and schedule oriented throughout the project. 173. The life cycle of a project is a slow start, then a gaining of momentum, and finally a quick finish. 174. When discussing project management, one must recognize that there is little distinction between such terms as project, program, and task. 175. While it may appear to be a rather simple idea, the basic purpose for initiating a project is to accomplish some goal. 176. A ballpark estimate is acceptable for the proposal. There will be time to figure out the budget after the contract is won. 177. Mixed organizational systems encourage overlap, duplication, and friction. 178. According to the project life cycle concept, the greatest amount of activity occurs during the final stages of the project. 179. Since a project is considered a one-time activity, projects only occasionally interact with the organization’s on-going operations. 180. Project organization decreases the likelihood that organizational policy will be violated. 181. The amount of effort put into a project reaches a peak and remains there until completion of the project. 182. Economic analysis models compare projects on the basis of estimated profit. 183. Project selection models can also be used for allocation of scarce resources. 184. Accounting data should be used whenever possible in project selection because it is derived from standard cost analyses and standard revenue assumptions. 185. Project evaluation can be applied to any area of an organization’s business in which choices must be made between competing alternatives. 186. Well-designed, sophisticated models can be effectively used by managers to arrive at optimal decisions which can be easily applied to the reality being modeled. 187. The internal rate of return is a type of non-numeric model. 188. When using a creativity group to solve a problem, the problem should be stated in very broad and general terms. 189. The best project models are those that use financial measures for determining the “goodness” of a decision. 190. When individuals oppose a project, for whatever reason, they commonly complain that the information used to support the project is too “subjective”. 191. When one alters a system, the behavioral changes of that system can almost always be predicted. 192. You learn more by telling than by listening. 193. Taking credit for outcomes that others have accomplished is a way to build yourself for others to respect you. 194. Waiting to develop a proposal until an RFP is announced is important to be sure all the information is available. 195. Helping customers identify needs, even if they are needs your company cannot help them address, is a way to position your company to win future contracts. 196. It is unethical to submit an unsolicited proposal to a customer. 197. It is good practice to have the person who will be responsible for the major work tasks estimate the associated costs. 198. It is unfair to receive a noncompetitive contract with a customer that was thinking about developing a RFP. 199. A contractor’s pre-RFP/proposal efforts are crucial to establishing the foundation for eventually winning a contract from the customer. 200. A contractor should make a no-bid decision for a project that would not be consistent the contractor's business mission. 201. The reputation of the company that announced the RFP should be evaluated as a factor as well as the reputation of the contractor when making a bid or no-bid decision. 202. Good pre-RFP marketing helps a contractor to know if funds will be available for a project in an RFP. 203. For projects that are new and have high risk, the contractor should include larger amounts of contingency. 204. The middle stages of the project life cycle usually involve a focus on time with attention shifting to cost control in the latter stages. 205. A contractor should only respond to RFPs if they have the required resources already on their staff. 206. Economic analysis models compare projects on the basis of estimated profit. 207. Project selection models can also be used for allocation of scarce resources. 208. The length of the proposal is not as important as the quality of the information contained in the proposal. 209. The bid or no-bid decision is made on the capability to develop a quality proposal as well as the capability to complete the project if the contractor wins the bid. 210. Management reserves or contingencies are the estimated costs to cover unexpected situations. 211. A bid/no-bid checklist helps the client to decide whether to submit a proposal in response to an RFP. 212. Submitting a proposal that meets the customer's statement of work and requirements is all that is needed to secure a contract. 213. A complex proposal is a technical report with charts and figures to explain the approach. 214. Project evaluation can be applied to any area of an organization’s business in which choices must be made between competing alternatives. 215. It is important to emphasize the unique features that differentiate the contractor from other contractors. 216. Key partners and subcontractors can help win a project for a contractor by complementing the contractor's expertise. 217. Including complicated graphics in a proposal demonstrates a contractor's advanced skill and shows specific technical expertise. 218. Proposals that promise too much or are overly optimistic may seem believable and support that the contractor understands what needs to be done and how to do it. 219. Accounting data should be used whenever possible in project selection because it is derived from standard cost analyses and standard revenue assumptions. 220. A proposal manager is required to have a consistent, comprehensive proposal by the due date in the RFP. 221. Local travel is usually not included in the project costs. 222. Developing a large proposal is a project. 223. The customer selects the proposal that it expects will provide the best value. 224. A specific proposed solution should be suggested for the customer's need. 225. Specific criteria listed in the RFP should be restated in the proposal to reinforce to the customer that the contractor understands the requirements. 226. Quantitative and qualitative benefits to the customer should be stated to help convince the customer of the value of the proposed result. 227. The proposal should include a lengthy, detailed list of activities to show planning has been well thought out by the contractor. 228. The schedule can include times for major tasks and key milestones to show sequence and interdependencies of the tasks. 229. Inclusion of an organization chart or assigned responsibility is helpful for the customer to evaluate the expertise of the project staff. 230. The objective of the cost section of the contractor proposal is to convince the project team that the contractor’s price for the proposed project is realistic and reasonable. 231. Realistic estimated hours and hourly labor rate for each person or classification is included in the cost section. 232. Equipment that is included in the project costs are those required by the project. 233. Special facilities for a project are a project cost and should not be included in the project cost estimates for the proposal. 234. Contractors may outsource some of the work to subcontractors or consultants to perform certain project tasks. 235. Documentation deliverables are sometimes shown as separate costs in the project cost estimate. 236. Indirect costs of doing business are included in proposals where the customer permits the charging of indirect costs. 237. Escalation are costs associated with the increased costs for materials and wages in a long term project.: 238. An RFP says that the contract planned is to be fixed price. The project is well-defined and low risk. The contractor should bid based upon the contract type and risk level. 239. Historical data should not be used to guide estimating costs for a proposed project. 240. A contractor that is entering a similar but new field should plan a smaller profit to increase chances of winning the project. 241. If a customer has stated the budget in the RFP, the customer might reject proposals that have cost estimates greater than the budget without further review of the proposal. 242. By participating in pre-RFP meetings, a contractor may gain budget intelligence and be able to submit a project proposal with a more appropriate level of effort expected. 243. The amount of profit on a project is adjusted depending upon the amount of competition for a project. 244. Contractors must continue to be proactive after submitting a proposal by contacting the customer to ensure the RFP has been received and answer any questions. 245. Project proposals are evaluated with a standard set of criteria. 246. It is acceptable for the contractor to overstate the hours or costs. 247. The contractor must notify the customer immediately of any actual or anticipated cost savings or schedule delays. 248. The contractor needs to obtain advance approval from the customer before hiring a subcontractor to perform a project task. 249. By having a customer supply schedule, the contractor is protected from incurring schedule slippage caused by customer delays in furnishing information, parts, or other items. 250. The cost of developing a proposal should be added in as a direct expense in the budget for a proposal. 251. Operations research models can be used for allocation of scarce resources. 252. As soon as a contractor finds out it is the winner, it can start working on the project. 253. At times, patents that may result from performing the project. 254. One party is prohibited from disclosing confidential information, technologies, or processes utilized by the other party during the project to anyone else or using it for any purpose other than work on the project. 255. Goal programming optimizes an objective function with multiple objectives. 256. Contracts for projects that are done for a foreign customer or are conducted in part in a foreign country do not require the contractor to make certain accommodations. 257. The customer can terminate the contract according to requirements in the contract. 258. The customer will pay the contractor a bonus if the project is completed ahead of schedule or exceeds other customer performance requirements. 259. Proposals must be realistic in terms of the proposed scope, cost, and schedule in the eyes of the customer. 260. Contractors measure the success of their proposal efforts by the number of times their proposals are selected by customers and/or by the total dollar value of their proposals that are selected. 261. The win ratio is the percentage of the number of proposals a contractor won out of the total number of proposals the contractor submitted to various customers over a particular time period. 262. Matrix organization approach includes both functions and projects in its hierarchy. 263. For handling uncertainty, pro forma documents, risk analysis, and simulation with sensitivity analysis are all helpful. 264. Well-designed, sophisticated models can be effectively used by managers to arrive at optimal decisions which can be easily applied to the reality being modelled. 265. The best project models are those that use financial measures for determining the “goodness” of a decision. 266. The comparative benefit model is an example of a non-numeric model. 267. When individuals oppose a project, for whatever reason, they commonly complain that the information used to support the project is too “subjective”. 268. When one alters a system, the behavioural changes of that system can almost always be predicted. 269. I have done this test entirely on my own without consultation or contact with others 270. Plagiarism and unethical behaviour may lead to expulsion from this university.