Chapter 1 Projects and Project Management
1.1 True False
1) An example of a project is an accounting clerk entering journal entries.
Answer: False
Rationale:
This statement is false because entering journal entries is a task or activity within the broader
scope of accounting or financial management, not a standalone project. A project typically
involves a unique set of activities with a specific goal, such as implementing a new
accounting system or conducting a financial audit.
2) A project has a beginning and an end.
Answer: True
Rationale:
This statement is true. A project is a temporary endeavor with a defined start and end date,
undertaken to achieve a specific goal or objective.
3) Based on research cited in the textbook, 31 percent of software projects were canceled
before completion and cost an average of 189 percent of their original estimates in more than
half the projects.
Answer: True
Rationale:
This statement is true based on the information provided. It highlights the challenges often
faced in software project management, including high cancellation rates and cost overruns.
4) Complexity refers to the extent to which the items or elements upon which work is
performed or the work processes themselves are interrelated.
Answer: False
Rationale:
This statement is false. Complexity refers to the level of difficulty or intricacy involved in a
project, which can be influenced by various factors such as the number of tasks, resources,
and dependencies.
5) Interdependence refers to the number of products or operations that are performed at the
same time and the resulting degree of difficulty.
Answer: False
Rationale:
This statement is false. Interdependence refers to the relationships and dependencies between
different elements or tasks within a project, not the number of products or operations
performed simultaneously.
6) Complexity in a project is directly attributed to the scope of the project.
Answer: True
Rationale:
This statement is true. The scope of a project, which includes the goals, deliverables, tasks,
costs, and deadlines, can directly impact its complexity. A larger scope often leads to greater
complexity.
7) When developed, the DVD player was considered a Type C Level 1 project.
Answer: True
Rationale:
This statement is true. The development of a DVD player would likely be classified as a Type
C Level 1 project, which involves the introduction of a new product or service using existing
technologies in a familiar environment.
8) A project is a set of activities to solve a problem or take advantage of an opportunity.
Answer: True
Rationale:
This statement is true. A project is a temporary endeavor undertaken to create a unique
product, service, or result, often to address a specific problem or opportunity.
9) Conceptualization is a process used to set the goals of a project, develop strategies to
support an organization's strategic goals, and outline tasks and schedules to accomplish the
project goals.
Answer: False
Rationale:
This statement is false. Conceptualization is a phase in the project management process
where the initial ideas and goals of a project are developed and refined. It involves defining
the project scope, objectives, and approach, but it does not include detailed task scheduling.
10) The pre-feasibility study is usually used to assess whether to conduct a full feasibility
study.
Answer: True
Rationale:
This statement is true. A pre-feasibility study is conducted to evaluate the potential of a
project and determine whether it is worth further investment and effort in conducting a full
feasibility study.
11) A discovery audit is a controlled process for identifying potential problems and
opportunities.
Answer: False
Rationale:
This statement is false. A discovery audit is an informal and often unstructured process used
to gather information and insights about a particular subject, such as customer needs or
market trends. It is not a controlled process like a formal audit.
12) During the post-implementation phase, a project is brought to its proper completion.
Answer: False
Rationale:
This statement is false. The post-implementation phase occurs after the project has been
completed and involves activities such as evaluating the project's performance, documenting
lessons learned, and transitioning the project's deliverables to the operational environment. It
is not focused on completing the project, as the project should already be completed by this
point.
13) Quality functional deployment, Kano model, and affinity diagrams are tools used during
the design phase.
Answer: True
Rationale:
This statement is true. Quality functional deployment (QFD), Kano model, and affinity
diagrams are tools commonly used during the design phase of a project to help understand
customer needs, prioritize features, and develop product specifications.
14) A clear statement of project needs is an output associated with the planning phase.
Answer: False
Rationale:
This statement is false. A clear statement of project needs is typically an input to the planning
phase, as it helps define the scope and objectives of the project. It is not an output of the
planning phase.
15) Risk management plans are an output associated with the analysis phase.
Answer: False
Rationale:
This statement is false. Risk management plans are typically developed during the planning
phase of a project, not the analysis phase. The planning phase is where risks are identified,
analyzed, and strategies are developed to manage them.
16) User manuals are an output associated with the implementation phase.
Answer: True
Rationale:
This statement is true. User manuals are often developed and provided to users during the
implementation phase of a project to help them understand how to use the project's
deliverables, such as a new software system or product.
17) Project management and engineering and services of projects are the two main streams of
project activities.
Answer: True
Rationale:
This statement is true. Project management activities focus on planning, organizing, and
controlling project resources to achieve specific goals, while engineering and services
activities involve the technical aspects of designing and implementing the project's
deliverables.
18) Final launch documents are an output associated with the closure phase.
Answer: True
Rationale:
This statement is true. Final launch documents, such as release notes or launch plans, are
typically produced during the closure phase of a project to document the final steps taken to
complete the project and transition its deliverables to the operational environment.
19) A benefit of project management is that it creates a structure and process that enables a
project to be kept under control.
Answer: True
Rationale:
This statement is true. One of the key benefits of project management is that it provides a
structured approach to planning, executing, and monitoring projects, which helps keep the
project under control and increases the likelihood of its success.
20) Projects are straightforward and not restrained by technological complexity,
organizational complexity, and management complexity.
Answer: False
Rationale:
This statement is false. Projects can be complex and are often constrained by various factors,
including technological complexity (such as using new or unfamiliar technologies),
organizational complexity (such as involving multiple stakeholders or departments), and
management complexity (such as coordinating resources and managing risks).
21) A project may be successfully managed but may not meet customer expectations.
Answer: True
Rationale:
This statement is true. Successful project management involves achieving project goals
within constraints such as time, cost, and quality. However, meeting customer expectations
requires understanding and fulfilling their specific requirements, which may not always align
with the project's goals.
22) The project management process helps individuals and organizations map a clear strategy
to complete a project successfully.
Answer: True
Rationale:
This statement is true. The project management process involves initiating, planning,
executing, monitoring, and closing a project to achieve its objectives. Through this process,
individuals and organizations can establish a clear strategy and roadmap for completing a
project successfully.
23) The overall success factor of a project is the realized value of the project that can be
measured by the project stakeholders.
Answer: True
Rationale:
This statement is true. The overall success of a project is often measured by the extent to
which it delivers value to its stakeholders. This value can be measured in various ways,
including financial returns, customer satisfaction, and achievement of strategic objectives.
24) Project success and project management success are the same.
Answer: False
Rationale:
This statement is false. Project success refers to the achievement of project objectives, such
as delivering a product on time and within budget. Project management success, on the other
hand, refers to the effectiveness of the project management process in achieving these
objectives. A project can be successfully managed but still fail to meet its objectives, and vice
versa.
25) Politics and conflicts can lead to overall project failure.
Answer: True
Rationale:
This statement is true. Politics and conflicts within an organization or project team can
disrupt communication, create resistance to change, and hinder decision-making, all of which
can contribute to project failure.
26) Poor communication can lead to overall project failure.
Answer: True
Rationale:
This statement is true. Communication is essential for coordinating project activities, sharing
information, and resolving issues. Poor communication can lead to misunderstandings,
delays, and conflicts, ultimately impacting the project's success.
27) Scope constraint refers to the amount of time available to complete a project.
Answer: False
Rationale:
This statement is false. Scope constraint refers to the boundaries or limits of a project,
including what is and is not included in the project. Time constraint, on the other hand, refers
to the amount of time available to complete the project.
28) Project value refers to the overall worth of a project.
Answer: True
Rationale:
This statement is true. Project value refers to the overall worth or benefit that a project
delivers to its stakeholders. This can include financial returns, strategic objectives, and other
forms of value.
29) The discipline of project management is about providing tools and techniques to enable a
project team to organize its work and meet the project success factors.
Answer: True
Rationale:
This statement is true. The discipline of project management involves providing the tools,
techniques, and framework necessary to plan, execute, and control a project to achieve its
objectives and meet the success factors defined for the project.
30) Stringent performance measures can lead to increased time, increased scope, and
increased cost.
Answer: True
Rationale:
This statement is true. Stringent performance measures, if not carefully managed, can lead to
increased time, scope, and cost as project teams may focus more on meeting the measures
than on delivering the project efficiently.
1.2 Multiple Choice
1) A unique activity that adds value, expends resources, has beginning and end dates, and has
constraints and requirements that include scope, cost, schedule performance, resources, and
value best defines
A) project.
B) task.
C) activity.
D) job.
Answer: A
Rationale:
A project is a unique endeavor that is temporary in nature and aims to achieve specific goals
or objectives. It involves activities that add value, consume resources, have defined start and
end dates, and are subject to constraints and requirements such as scope, cost, schedule
performance, resources, and value to stakeholders.
2) A project
A) has a beginning and a definite end.
B) expends resources.
C) has constraints and requirements that may include scope, budget, schedule, and resources,
performance factors, and creation of value to stakeholders.
D) All of the above are correct.
Answer: D
Rationale:
All of the statements are correct. A project has a defined start and end date, consumes
resources, and is subject to constraints and requirements such as scope, budget, schedule,
resources, performance factors, and value creation for stakeholders.
3) According to a study cited in the textbook, inadequate management practices are
associated with project failure. What is the percentage?
A) 45%
B) 65%
C) 25%
D) 5%
Answer: B
Rationale:
The percentage cited in the textbook is 65%. This indicates that inadequate management
practices play a significant role in project failure.
4) Constructing buildings as environmentally friendly and energy-efficient as possible by
using more recyclable and earth-friendly products best describes
A) red construction.
B) blue construction.
C) green construction.
D) yellow construction.
Answer: C
Rationale:
Green construction refers to the practice of constructing buildings in an environmentally
friendly and energy-efficient manner, often involving the use of recyclable and earth-friendly
products to minimize environmental impact.
5) Each of the following is an underlying dimension encompassing almost all aspects of
technology except
A) interdependence.
B) uncertainty.
C) complexity.
D) distribution.
Answer: D
Rationale:
Distribution is not typically considered an underlying dimension encompassing almost all
aspects of technology. Interdependence, uncertainty, and complexity are more commonly
recognized as key dimensions that impact various aspects of technology.
6) The number of products or operations that are performed at the same time and the resulting
degree of difficulty best defines
A) complexity.
B) interdependence.
C) uncertainty.
D) product count.
Answer: A
Rationale:
Complexity refers to the extent to which the items or elements upon which work is
performed, or the work processes themselves, are interrelated. It includes factors such as the
number of products or operations performed simultaneously and the resulting degree of
difficulty.
7) The extent to which the items or elements upon which work is performed or the work
processes themselves are interrelated best defines
A) uncertainty.
B) interdependence.
C) sufficiency.
D) complexity.
Answer: B
Rationale:
Interdependence refers to the extent to which the items or elements upon which work is
performed, or the work processes themselves, are interrelated. It reflects the degree to which
one part of a project depends on another.
8) The variability in the process of transformation of inputs to outputs or in the inputs
themselves best defines
A) specificity.
B) complexity.
C) uncertainty.
D) interdependence.
Answer: C
Rationale:
Uncertainty refers to the variability in the process of transformation of inputs to outputs or in
the inputs themselves. It encompasses factors such as the unpredictability of outcomes and
the presence of unknowns in a project.
9) Projects requiring development of new technologies, providing great competitive
advantage are classified as
A) Type A projects.
B) Type B projects.
C) Type C projects.
D) Type D projects.
Answer: D
Rationale:
Type D projects are characterized by the development of new technologies that provide a
significant competitive advantage. These projects often involve high levels of innovation and
uncertainty.
10) Projects relying on mature technologies for all industries to have equal access are
classified as
A) Type A projects.
B) Type B projects.
C) Type C projects.
D) Type D projects.
Answer: A
Rationale:
Type A projects are characterized by relying on mature technologies that are widely
accessible across industries. These projects are often less risky and more predictable
compared to projects involving new technologies.
11) When classified according to complexity, a public transportation system project would be
classified as a
A) Level 2.
B) Level 3.
C) Level 1.
D) Level 4.
Answer: B
Rationale:
Public transportation system projects are typically complex due to the interdependencies of
various components such as routes, vehicles, schedules, and passenger needs. This
complexity would classify the project as a Level 3 project.
12) A project life span is
A) a progression through a series of differing stages of project development.
B) the total of the phases through which a project passes from the time it is initially
conceived until the time it is either in use as a success or abandoned as a failure.
C) often used to explain changes in project strategic decision priorities, changes in project
strategic outlook, and their effect on organizational structure and perceptions of
organizational effectiveness criteria.
D) all of the above.
Answer: D
Rationale:
The project life span refers to all the stages and phases a project goes through from its
conception to its completion or termination. It includes progression through different stages
of development and encompasses the total phases from conception to success or failure.
13) Factors affecting project progress include each of the following except
A) cost of each phase.
B) value chain assessment during each phase.
C) resource allocation in each phase.
D) amount of materials utilized in each phase.
Answer: B
Rationale:
Factors affecting project progress include the cost of each phase, resource allocation, and the
amount of materials utilized. Value chain assessment, while important, is not typically a
direct factor affecting project progress.
14) The first phase in the project life span is
A) design.
B) conceptualization.
C) planning.
D) implementation.
Answer: B
Rationale:
The first phase in the project life span is conceptualization, where the initial idea or concept
for the project is developed and refined.
15) An idea or thought that refers to the reflection of a targeted business function or process
and how the various facets of the process or function relate to each other best defines
A) commitment.
B) pre-feasibility study.
C) conceptualization.
D) closure.
Answer: C
Rationale:
Conceptualization is the phase in which the goals of the project are set, strategies are
developed to support the organization's strategic goals, and tasks and schedules are outlined
to accomplish the project goals.
16) A preliminary study to assess whether to conduct a full feasibility study or not best
describes
A) conceptualization.
B) case justification.
C) alignment.
D) pre-feasibility study.
Answer: D
Rationale:
A pre-feasibility study is a preliminary study conducted to assess the viability of a project and
determine whether to proceed with a full feasibility study.
17) A process used to set the goals of a project, develop strategies to support an
organization's strategic goals, and outline tasks and schedules to accomplish the project goals
best defines
A) planning.
B) assessment.
C) implementation.
D) conceptualization.
Answer: A
Rationale:
Planning is the process of setting the goals of a project, developing strategies to support an
organization's strategic goals, and outlining tasks and schedules to accomplish the project
goals.
18) Which of the following project life span phases helps to identify certain technical
problems and issues in a project that may require additional investigation?
A) conceptualization
B) planning
C) design
D) implementation
Answer: B
Rationale:
The planning phase helps to identify certain technical problems and issues in a project that
may require additional investigation. It is during this phase that the project plan is developed,
including the identification of potential risks and issues.
19) A detailed study in a controlled process to identify potential problems and opportunities
best defines
A) project plan.
B) project charter.
C) feasibility study.
D) request for proposal.
Answer: C
Rationale:
A feasibility study is a detailed study conducted in a controlled process to identify potential
problems and opportunities associated with a project. It assesses the project's feasibility and
helps determine whether the project should proceed.
20) In which of the following phases are products, services, and systems realized?
A) conceptualization
B) planning
C) design
D) implementation
Answer: D
Rationale:
Products, services, and systems are realized during the implementation phase of a project.
This is when the planned activities are executed, and the project deliverables are developed
and delivered.
21) Software being coded, contracts tendered and awarded, and construction work being
undertaken will generally occur during
A) conceptualization.
B) planning.
C) design.
D) implementation.
Answer: D
Rationale:
Implementation is the phase in which planned activities are executed, and project deliverables
are developed and delivered. This is when software is coded, contracts are tendered and
awarded, and construction work is undertaken.
22) During this phase, progress and success are measured, project documents are archived,
lessons learned are captured, and project activities are formally closed.
A) post-implementation
B) closure
C) conceptualization
D) implementation
Answer: A
Rationale:
The post-implementation phase is where progress and success are measured, project
documents are archived, lessons learned are captured, and project activities are formally
closed out. It occurs after the project has been completed and its deliverables are in use.
23) Project life span phases include each of the following except
A) reassignment.
B) design.
C) planning.
D) implementation.
Answer: A
Rationale:
Reassignment is not typically considered a phase in the project life span. The project life span
typically includes phases such as conceptualization, planning, design, and implementation.
24) Outputs for this phase include communication plans, change management plans,
performance plans, and value plans.
A) implementation
B) planning
C) conceptualization
D) design
Answer: B
Rationale:
The planning phase involves developing various plans to guide the project, including
communication plans, change management plans, performance plans, and value plans.
25) Tested product or system, training manuals, and user manuals are outputs of this phase.
A) conceptualization
B) design
C) implementation
D) closure
Answer: C
Rationale:
In the implementation phase, the tested product or system, training manuals, and user
manuals are developed as outputs of the project activities.
26) Customer acceptance documents are an output of this phase.
A) conceptualization
B) analysis design/development
C) implementation execution testing
D) launch termination closure
Answer: D
Rationale:
Customer acceptance documents are typically finalized and delivered during the closure
phase of the project, indicating that the project has been completed to the satisfaction of the
customer.
27) The act of collaboration among people and other required resources such that a project is
planned, organized, and controlled effectively to accomplish its goals and objectives best
defines
A) project management.
B) knowledge acquisition.
C) project planning.
D) project implementation.
Answer: A
Rationale:
Project management is the act of collaboration among people and other required resources to
plan, organize, and control a project effectively to accomplish its goals and objectives.
28) Project failure is caused by each of the following except
A) cost and duration.
B) enhanced communication.
C) unrealistic goals.
D) customer dissatisfaction.
Answer: B
Rationale:
Enhanced communication is not a cause of project failure. However, project failure can be
caused by factors such as cost and duration overruns, unrealistic goals, and customer
dissatisfaction.
29) Factors that may cause project management to fail include
A) wrong project manager.
B) lack or misuse of project management techniques.
C) inadequate rationale, objectives, tasks, and goals.
D) all of the above.
Answer: D
Rationale:
Factors that may cause project management to fail include having the wrong project manager,
lack or misuse of project management techniques, and inadequate rationale, objectives, tasks,
and goals.
30) Successful project management requires each of the following except
A) good planning and required resources with a commitment to complete projects.
B) a skilled project manager.
C) good communication and information flows.
D) end users with project management experience.
Answer: D
Rationale:
While having end users with project management experience can be beneficial, it is not a
requirement for successful project management. The other factors listed, such as good
planning, a skilled project manager, and good communication, are essential for success.
31) Factors and constraints affecting either the success or failure of projects include
A) completion of the project to maximize project value for stakeholders.
B) completion of the project within established performance and technology standards.
C) completion of the project within allocated resources.
D) all of the above.
Answer: D
Rationale:
All of the factors listed—completion of the project to maximize project value for
stakeholders, completion within established performance and technology standards, and
completion within allocated resources—can impact the success or failure of a project.
32) An available supply of assets, capabilities, processes, attributes, and knowledge in an
organization best defines
A) project resources.
B) project inventory.
C) project repository.
D) project scope.
Answer: A
Rationale:
Project resources refer to the available supply of assets, capabilities, processes, attributes, and
knowledge in an organization that can be utilized to complete a project.
33) The general work that needs to be accomplished to deliver a product, a system, a
structure, or a service with the specified features and functions best defines
A) product scope.
B) project scope.
C) project range.
D) project deliverable.
Answer: B
Rationale:
Project scope refers to the general work that needs to be accomplished to deliver a product, a
system, a structure, or a service with the specified features and functions.
34) The list of all activities of a project with intended start and end dates linked by
dependencies and constraints of a project best defines
A) project calendar.
B) business case.
C) project schedule.
D) project scope.
Answer: C
Rationale:
A project schedule is a list of all activities of a project with intended start and end dates
linked by dependencies and constraints of the project.
35) The sum of all costs to complete a project best describes
A) feasibility costs.
B) total cost of ownership.
C) project budget.
D) project costs.
Answer: D
Rationale:
Project costs refer to the sum of all costs to complete a project, including direct and indirect
costs.
36) Which of the following consists of the features and functions that characterize a product,
a service, a system, or a structure?
A) project scope
B) product scope
C) business case
D) project deliverable
Answer: B
Rationale:
Product scope consists of the features and functions that characterize a product, a service, a
system, or a structure.
37) The overall quality of a project in terms of its impacts and benefits best defines
A) project feasibility.
B) project range.
C) project performance.
D) project scope.
Answer: C
Rationale:
Project performance refers to the overall quality of a project in terms of its impacts and
benefits, including how well it meets its objectives and delivers value to stakeholders.
38) The foundation of successful projects includes each of the following except
A) money.
B) strategy.
C) leadership.
D) management.
Answer: A
Rationale:
While money is important for funding a project, the foundation of successful projects is
typically considered to include strategy, leadership, and management.
39) A communication plan is developed during the
A) design phase.
B) planning phase.
C) conceptualization phase.
D) closure phase.
Answer: B
Rationale:
A communication plan is typically developed during the planning phase of a project to
outline how communication will be managed throughout the project.
40) An investigation of available resources is undertaken during the
A) planning phase.
B) design phase.
C) conceptualization phase.
D) implementation phase.
Answer: C
Rationale:
An investigation of available resources is typically undertaken during the conceptualization
phase of a project to determine what resources are available and needed for the project.
41) A project audit is conducted during the
A) post-implementation phase.
B) design phase.
C) conceptualization phase.
D) closure phase.
Answer: D
Rationale:
A project audit is typically conducted during the closure phase of a project. This phase
involves reviewing the project's performance, outcomes, and processes to ensure that it meets
its objectives and complies with relevant standards and regulations.
42) The project is finalized during the
A) closure phase.
B) post-implementation phase.
C) design phase.
D) implementation phase.
Answer: A
Rationale:
The closure phase is when the project is finalized. This includes completing any remaining
activities, obtaining final approvals, and closing out the project formally.
43) Quality standards are refined during the
A) conceptualization phase.
B) planning phase.
C) design phase.
D) implementation phase.
Answer: B
Rationale:
Quality standards are typically refined during the planning phase of a project. This is when
the project team determines the quality requirements and establishes the processes and
standards that will be used to ensure quality throughout the project.
44) Establishing lessons learned occurs during the
A) conceptualization phase.
B) planning phase.
C) post-implementation phase.
D) implementation phase.
Answer: C
Rationale:
Establishing lessons learned occurs during the post-implementation phase of a project. This
phase involves reflecting on the project's outcomes and processes to identify what went well,
what could have been improved, and what lessons can be applied to future projects.
45) Ensuring compliance plans occur during the
A) planning phase.
B) post-implementation phase.
C) implementation phase.
D) design phase.
Answer: D
Rationale:
Ensuring compliance plans typically occur during the design phase of a project. This is when
the project team develops detailed plans and specifications for the project, including ensuring
compliance with relevant standards and regulations.
1.3 Essay
1) List five potential benefits of project management.
Answer: Potential benefits include: (1) project management will make sure that the scope of a
project as required by a customer is completely met; (2) project management provides a
process that can be followed to the successful completion of projects; (3) the first successful
project management process will lead the way to successfully complete many more projects;
(4) success from project management will inspire individuals and organizations to perform
efficiently in the future; and (5) the project management process will help individuals and
organizations to map a clear strategy to complete a project successfully.
2) Define project. Identify four major types of projects.
Answer: A project is a unique activity that adds value, expends resources, has beginning and
end dates, and has constraints and requirements that include scope, cost, schedule
performance, resources, and value. Project types may include information system projects,
healthcare projects, new product development projects, and construction projects.
3) For each project life span phase, identify one tool that may be used.
Answer: Tools used during the project life span phases include: (1) conceptualization SWOT analysis; (2) planning - project planning software; (3) design - quality functional
deployment; (4) implementation - project management software; (5) closure - brainstorming;
and (6) post-implementation - surveys. Table 1-3 provides additional examples.
4) Identify six factors and constraints that affect either the success or the failure of projects.
Answer: Six factors and constraints that affect either the success or the failure of projects
include (1) completion of the project within scope or customer requirements; (2) completion
of project within allocated budget; (3) completion of project within allocated schedule or
period of time; (4) completion of project using allocated resources; (5) completion of project
within established performance and technology standards; and (6) completion of project to
maximize project value for stakeholders.
5) List the six project life span phases. For each phase, identify one task completed during
that phase.
Answer: Conceptualization, planning, design, implementation, closure, and postimplementation are the six phases. Respectively, the tasks are developing a project proposal,
establishing a SOW, executing a project plan, monitoring scope, conducting a project audit,
and soliciting feedback from stakeholders. Additional examples are provided in Table 1-6.
Test Bank for Project Management: Process, Technology and Practice
Ganesh Vaidyanathan
9780132807180
