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This Document Contains Chapters 3 to 4 Chapter 3: The Project Management Process Groups: A Case Study True/False 1. Decisions and actions taken in one knowledge area at a certain time rarely affect other knowledge areas. Answer: False Rationale: Project management is an integrative endeavor; decisions and actions taken in one knowledge area at a certain time usually affect other knowledge areas. 2. Initiating processes take place during each phase of a project. Answer: True Rationale: Initiating processes include defining and authorizing a project or project phase. Initiating processes take place during each phase of a project. 3. Initiating processes are not required to end a project. Answer: False Rationale: Initiating processes are also required to end a project. Someone must initiate activities to ensure that the project team completes all the work, documents lessons learned, assigns project resources, and that the customer accepts the work. 4. The level of activity and length of each process group varies for every project. Answer: True Rationale: The level of activity and length of each process group varies for every project. Normally, executing tasks requires the most resources and time, followed by planning tasks. 5. Initiating and closing tasks are usually the longest and require the most amount of resources and time. Answer: False Rationale: Initiating and closing tasks are usually the shortest (at the beginning and end of a project or phase, respectively), and they require the least resources and time. 6. The executing process group generally requires the most resources. Answer: True Rationale: The executing process group takes the actions necessary to complete the work described in the planning activities. It should overlap the other process groups, and generally requires the most resources. 7. Monitoring and controlling processes overlap all of the other project management process groups. Answer: True Rationale: Monitoring and controlling processes overlap all of the other project management process groups because changes can occur at any time. 8. Key outcomes of the executing process group are formal acceptance of the work and creation of closing documents. Answer: False Rationale: Key outcomes of the closing process group are formal acceptance of the work and creation of closing documents, such as a final project report and lessons-learned report. 9. Agile methods comprise of 45 subprocesses which are organized into eight process groups. Answer: False Rationale: All agile methods include an iterative workflow and incremental delivery of software in short iterations. 10. The Rational Unified Process (RUP) framework is incompatible with the PMBOK process. Answer: False Rationale: According to RUP expert Bill Cottrell, “RUP embodies industry-standard management and technical methods and techniques to provide a software engineering process particularly suited to creating and maintaining component-based software system solutions.” Cottrell explained that you can tailor RUP to include the PMBOK process groups because several customers asked for that capability. 11. The DMAIC (Define, Measure, Analyze, Improve, and Control) methodology of the Six Sigma projects, is used to improve an existing business process. Answer: True Rationale: Two main methodologies are used on Six Sigma projects: DMAIC (Define, Measure, Analyze, Improve, and Control) is used to improve an existing business process, and DMADV (Define, Measure, Analyze, Design, and Verify) is used to create new product or process designs to achieve predictable, defect-free performance. 12. An organization’s project management plan expresses the vision, mission, goals, objectives, and strategies of the organization. Answer: False Rationale: The organization’s strategic plan expresses the vision, mission, goals, objectives, and strategies of the organization. 13. Identifying the project sponsor is a pre-initiation task. Answer: True Rationale: It is a good practice to lay the groundwork for a project before it officially starts. Senior managers often perform several tasks, sometimes called pre-initiation tasks. These include identifying the project sponsor and selecting the project manager. 14. The output of the stakeholder management strategy results is a project charter. Answer: False Rationale: The output of the stakeholder management strategy results is a stakeholder register. 15. The kick-off meeting is always held before the business case and project charter are completed. Answer: False Rationale: A kick-off meeting is a meeting held at the beginning of a project so that stakeholders can meet each other, review the goals of the project, and discuss future plans. The kick-off meeting is often held after the business case and project charter are completed, but it could be held sooner, as needed. 16. A milestone list is an output associated with the Project Scope Management knowledge area. Answer: False Rationale: A milestone list is an output associated with the Project Time Management knowledge area. 17. The WBS provides a basis for creating the project schedule and performing earned value management for measuring and forecasting project performance. Answer: True Rationale: The WBS is a very important tool in project management because it provides the basis for deciding how to do the work. The WBS also provides a basis for creating the project schedule and performing earned value management for measuring and forecasting project performance. 18. Project initiation involves taking the actions necessary to ensure that activities in the project plan are completed. Answer: False Rationale: Executing the project involves taking the actions necessary to ensure that activities in the project plan are completed. It also includes work required to introduce any new hardware, software, and procedures into normal operations. 19. The burndown chart is a Scrum created artifact that provides a list of features prioritized by business value. Answer: False Rationale: A burndown chart shows the cumulative work remaining in a sprint on a day by- day basis. 20. A sprint review is a meeting in which the team demonstrates to the product owner what it has completed during the sprint. Answer: True Rationale: A sprint review is a meeting in which the team demonstrates to the product owner what it has completed during the sprint. 21. The pre-initiation phase of a project using the Scrum method does not involve project charters, stakeholder management strategy, and kick-off meetings. Answer: False Rationale: A project charter, stakeholder register, stakeholder management strategy, and kick-off meeting would be created as part of initiation in a project using the Scrum method. 22. In the Scrum method, team members work as a self-directed group coached by the ScrumMaster. Answer: True Rationale: Because Scrum implies that team members work as a self-directed group, coached by the ScrumMaster, a team contract should not be necessary. 23. The two main items for monitoring and controlling in the Scrum framework are the daily Scrum and the sprint retrospectives. Answer: True Rationale: The two main items for monitoring and controlling in the Scrum framework are the daily Scrum and the sprint review. 24. Details of kick-off meetings and the stakeholder details are usually recorded in a Word document. Answer: True Rationale: Kick-off meetings and stakeholder registers are normally recorded in the form of Word documents. Multiple Choice 1. _____ processes include defining and authorizing a project or project phase. A. Initiating B. Planning C. Executing D. Monitoring and controlling Answer: A Rationale: Initiating processes include defining and authorizing a project or project phase. Initiating processes take place during each phase of a project. 2. _____ processes include devising and maintaining a workable scheme to ensure that the project addresses the organization’s needs. A. Initiating B. Planning C. Executing D. Monitoring and controlling Answer: B Rationale: Planning processes include devising and maintaining a workable scheme to ensure that the project addresses the organization’s needs. Projects include several plans, such as the scope management plan, schedule management plan, cost management plan, and procurement management plan. 3. Examples of _____ processes include acquiring and developing the project team, performing quality assurance, distributing information, managing stakeholder expectations, and conducting procurements. A. monitoring and controlling B. executing C. planning D. initiating Answer: B Rationale: Executing processes include coordinating people and other resources to carry out the various plans and create the products, services, or results of the project or phase. Examples of executing processes include acquiring and developing the project team, performing quality assurance, distributing information, managing stakeholder expectations, and conducting procurements. 4. A common _____ process is reporting performance, where project stakeholders can identify any necessary changes that may be required to keep the project on track. A. executing B. closing C. monitoring and controlling D. planning Answer: C Rationale: Monitoring and controlling processes include regularly measuring and monitoring progress to ensure that the project team meets the project objectives. A common monitoring and controlling process is reporting performance, where project stakeholders can identify any necessary changes that may be required to keep the project on track. 5. Administrative activities, such as archiving project files, closing out contracts, documenting lessons learned, and receiving formal acceptance of the delivered work as part of the phase or project, are often involved in _____ processes. A. monitoring and controlling B. executing C. initiating D. closing Answer: D Rationale: Closing processes include formalizing acceptance of the project or project phase and ending it efficiently. Administrative activities are often involved in this process group, such as archiving project files, closing out contracts, documenting lessons learned, and receiving formal acceptance of the delivered work as part of the phase or project. 6. During _____ processes for a new project, the organization recognizes that a new project exists, and completes a project charter as part of this recognition. A. initiating B. planning C. opening D. controlling Answer: A Rationale: While initiating processes for a new project, the organization recognizes that a new project exists, and completes a project charter as part of this recognition. 7. The project integration management knowledge area maps to the _____ process group through the activities of developing project charters. A. initiating B. planning C. executing D. monitoring and controlling Answer: A Rationale: The project integration management knowledge area maps to the initiating process group through the activities of developing project charters. 8. The project scope management knowledge area maps to the _____ process group through the activities of scope validation and scope control. A. initiating B. planning C. executing D. monitoring and controlling Answer: D Rationale: The project scope management knowledge area maps to the monitoring and controlling process group through the activities of scope validation and scope control. 9. The project time management knowledge area maps to the _____ process group through the activity of schedule control. A. initiating B. planning C. executing D. monitoring and controlling Answer: D Rationale: The project time management knowledge area maps to the monitoring and controlling process group through the activity of schedule control. 10. Developing a _____ is a planning process that occurs in the Project Integration Management knowledge area. A. schedule management plan B. project management plan C. WBS D. quality management Answer: B Rationale: Developing a project management plan is a planning process falling under the Project Integration Management knowledge area. 11. _____ is a planning process that is within the Project Scope Management knowledge area. A. Schedule development B. Developing a project management plan C. Creation of a WBS D. Quality planning Answer: C Rationale: Creation of a WBS is a planning process falling under the Project Scope Management knowledge area. 12. The project cost management knowledge area maps to the _____ process group through the activities of estimating costs and budget determination. A. initiating B. planning C. executing D. monitoring and controlling Answer: B Rationale: The project cost management knowledge area maps to the planning process group through the activities of estimating costs and budget determination. 13. The project stakeholder management knowledge area maps to the _____ process group by identifying stakeholders. A. initiating B. planning C. executing D. monitoring and controlling Answer: A Rationale: The project stakeholder management knowledge area maps to the initiating process group by identifying stakeholders. 14. _____ is an iterative software development process that focuses on team productivity and delivers software best practices to all team members. A. Agile Unified Process B. Dynamic Systems Development Method C. Rational Unified Process D. Six Sigma Answer: A Rationale: Agile Unified Process (AUP) is an iterative software development process that is based on the principles of Agile methodology. It focuses on delivering software in iterations (increments of usable software) and emphasizes team collaboration and productivity. 15. Which of the following is a pre-initiation task? A. Drawing up a work breakdown structure B. Developing a business case for a project C. Drafting the project charter D. Identifying stakeholders Answer: B Rationale: It is good practice to lay the groundwork for a project before it officially starts. Senior managers often perform several tasks, sometimes called pre-initiation tasks which include the development of a business case for a project. 16. One of the main outputs of the initiation process is _____. A. creating the work breakdown structure B. selecting the project manager C. developing the project charter D. identifying the project sponsor Answer: C Rationale: The main outputs of the initiation process are a project charter and a stakeholder register. 17. The project management plan is the output of the planning process of project _____. A. integration management B. quality management C. scope management D. procurement management Answer: A Rationale: The project management plan ,which is part of the planning process, is the output of project integration management. 18. Which of the following is a planning process associated with project scope management? A. Collecting requirements B. Performing qualitative risk analysis C. Planning schedule management D. Estimating costs Answer: A Rationale: Process improvement plans are an output of project quality management. 19. The _____ provides a basis for creating the project schedule and performing earned value management for measuring and forecasting project performance. A. scope statement B. cost management plan C. work breakdown structure D. project charter Answer: C Rationale: The WBS is a very important tool in project management because it provides the basis for deciding how to do the work. The WBS also provides a basis for creating the project schedule and performing earned value management for measuring and forecasting project performance. 20. _____ are an output of the executing process of project integration management. A. Deliverables B. Issue logs C. Resource calendars D. Enterprise environmental factor updates Answer: A Rationale: Deliverables are an output of the executing process of project integration management. 21. Enterprise environmental factors are an output of the executing process of _____. A. project integration management B. project quality management C. project human resource management D. project procurement management Answer: C Rationale: Enterprise environmental factors are an output of the executing process of project human resource management. 22. The _____ process involves gaining stakeholder and customer acceptance of the final products and services and bringing the project, or project phase, to an orderly end. A. executing B. closing C. planning D. monitoring Answer: B Rationale: The closing process involves gaining stakeholder and customer acceptance of the final products and services and then bringing the project or project phase to an orderly end. It includes verifying that all of the deliverables are complete, and it often includes a final project report and presentation. 23. Organizational process assets update is the output of the closing process of _____. A. project integration management B. project quality management C. project procurement management D. project time management Answer: A Rationale: The closing process involves gaining stakeholder and customer acceptance of the final products and services and then bringing the project or project phase to an orderly end. It includes verifying that all of the deliverables are complete, and it often includes a final project report and presentation. 24. Which of the following is true about the agile method? A. It is often used when a project team can express the scope early in the product life cycle. B. It is used when a project team wants to provide a potentially shippable product earlier rather than later. C. It uses several iterations or deliveries of software instead of waiting until the end of the project to provide a product. D. It is used when project teams want to use the predicative approach to a project. Answer: C Rationale: An agile approach is often used for projects in which the business team cannot clearly express the scope early in the product life cycle, but the team does want to provide a potentially shippable product earlier rather than later. An agile project team typically uses several iterations or deliveries of software instead of waiting until the end of the project to provide one product. 25. Which of the following project parameters would be compatible with the use of the agile approach? A. Projects with inexperienced and dispersed teams B. Projects that have a fairly rigid completion date C. Projects with clear-up front requirements D. Projects that have more flexible scheduling Answer: D Rationale: Projects with heavy constraints, inexperienced and dispersed teams, large risks, generally clear up-front requirements, and a fairly rigid completion date are best done using a predictive approach. In contrast, projects with less rigid constraints, experienced and preferably co-located teams, smaller risks, unclear requirements, and more flexible scheduling would be more compatible with an agile approach. 26. Which of the following activities is a part of the planning process of the Scrum? A. Determining how many sprints will compose each release B. Demonstrating the product during a sprint review meeting C. Completing tasks each day during sprints D. Creating sprint backlog Answer: D Rationale: Creating product backlogs, sprint backlogs and release backlogs are all part of the planning process of the scrum. 27. The improvement of the product and process in the Scrum method is discussed at the _____. A. sprint reflection meeting B. sprint review meeting C. kick-off meeting D. daily Scrum meeting Answer: A Rationale: The improvement of the product and process in the Scrum method is discussed at the sprint reflection meeting. 28. A _____ is usually not necessary to the Scrum method. A. team contract B. velocity estimate C. Gantt chart D. product backlog Answer: A Rationale: Because Scrum implies that team members work as a self-directed group, coached by the ScrumMaster, a team contract should not be necessary. 29. A _____ is an important Scrum artifact used to graphically display progress on each sprint during the monitoring and controlling process. A. WBS B. sprint backlog C. burndown chart D. product backlog Answer: C Rationale: A burndown chart is an important artifact used to graphically display progress on each sprint. Completion 1. A(n)_____ is a series of actions directed toward a particular result. Answer: process 2. _____ progress from initiation activities to planning activities, executing activities, monitoring and controlling activities, and closing activities. Answer: Project management process groups 3. The ideal outcome of the _____ process group is to complete a project successfully by delivering the agreed-upon project scope within time, cost, and quality constraints. Answer: monitoring and controlling 4. A(n) _____ describes how things should be done. Answer: methodology 5. _____ is a project management methodology that defines 45 separate subprocesses and organizes these into eight process groups. Answer: PRojects IN Controlled Environments PRINCE2 6. _____ are people involved in or affected by project activities and include the project sponsor, project team, support staff, customers, users, suppliers, and even opponents to the project. Answer: Stakeholders 7. A(n) _____ is a document that includes stakeholders’ roles, names, organizations, and contact information. Answer: stakeholder register 8. A(n) _____ is a meeting held at the beginning of a project so that stakeholders can meet each other, review the goals of the project, and discuss future plans. Answer: kick-off meeting 9. A risk register is the output of _____. Answer: risk identification planning 10. The _____ is a very important tool in project management because it provides the basis for deciding how to do the work. Answer: WBS work breakdown structure work breakdown structure (WBS) 11. _____ the project includes work required to introduce any new hardware, software, and procedures into normal operations. Answer: Executing 12. A(n) _____ is the person responsible for the business value of the project and for deciding what work to do and in what order when using a Scrum method. Answer: product owner 13. A(n) _____ is a set period of time, normally two to four weeks, during which specific work must be completed and made ready for review when using Scrum methods. Answer: sprint 14. A(n) _____ is the person who ensures that the team is productive, facilitates the daily Scrum, enables close cooperation across all roles and functions, and removes barriers that prevent the team from being effective. Answer: ScrumMaster 15. A(n) _____ is a cross-functional team of five to nine people who organize themselves and the work to produce the desired results for each sprint. Answer: Scrum team development team 16. In Scrum, a(n) _____ is a useful object created by people. Answer: artifact 17. A(n) _____ is a Scrum artifact and consists of the highest-priority items from the product backlog to be completed in a sprint. Answer: sprint backlog 18. _____ are short descriptions written by customers of what they need a Scrum system to do for them. Answer: User stories Essay 1. List and describe the five process management groups. Answer: Initiating processes include defining and authorizing a project or project phase. Initiating processes take place during each phase of a project. Therefore, you cannot equate process groups with project phases. Recall that there can be different project phases, but all projects will include all five process groups. For example, project managers and teams should reexamine the business need for the project during every phase of the project life cycle to determine if the project is worth continuing. Initiating processes are also required to end a project. Someone must initiate activities to ensure that the project team completes all the work, documents lessons learned, assigns project resources, and that the customer accepts the work. Planning processes include devising and maintaining a workable scheme to ensure that the project addresses the organization’s needs. There are several plans for projects, such as the scope management plan, schedule management plan, cost management plan, procurement management plan, and so on, defining each knowledge area as it relates to the project at that point in time. For example, a project team must develop a plan to define the work that needs to be done for the project, to schedule activities related to that work, to estimate costs for performing the work, to decide what resources to procure to accomplish the work, and so on. To account for changing conditions on the project and in the organization, project teams often revise plans during each phase of the project life cycle. Executing processes include coordinating people and other resources to carry out the various plans and produce the products, services, or results of the project or phase. Examples of executing processes include acquiring and developing the project team, performing quality assurance, distributing information, managing stakeholder expectations, and conducting procurements. Monitoring and controlling processes include regularly measuring and monitoring progress to ensure that the project team meets the project objectives. The project manager and staff monitor and measure progress against the plans and take corrective action when necessary. A common monitoring and controlling process is reporting performance, where project stakeholders can identify any necessary changes that may be required to keep the project on track. Closing processes include formalizing acceptance of the project or project phase and ending it efficiently. Administrative activities are often involved in this process group, such as archiving project files, closing out contracts, documenting lessons learned, and receiving formal acceptance of the delivered work as part of the phase or project. 2. What is a methodology and what are some methodologies other than the PMBOK Guide do organizations use as a basis for project management methodology? Answer: A methodology describes how things should be done, and different organizations often have different ways of doing things. In addition to using the PMBOK® Guide as a basis for project management methodology, many organizations use others, such as the following: • Projects IN Controlled Environments (PRINCE2): Originally developed for information technology projects, PRINCE2 was released in 1996 as a generic project management methodology by the U.K. Office of Government Commerce (OCG). It is the de facto standard in the United Kingdom and is used in over 50 countries. PRINCE2 defines 45 separate subprocesses and organizes these into eight process groups as follows: 1. Starting up a project 2. Planning 3. Initiating a project 4. Directing a project 5. Controlling a stage 6. Managing product delivery 7. Managing stage boundaries 8. Closing a project • Agile methodologies: Agile software development is a form of adaptive software development. All agile methodologies include an iterative workflow and incremental delivery of software in short iterations. Several popular agile methodologies include extreme programming, scrum, feature driven development, lean software development, Agile Unified Process (AUP), Crystal, and Dynamic Systems Development Method (DSDM). • Rational Unified Process (RUP) framework: RUP is an iterative software development process that focuses on team productivity and delivers software best practices to all team members. According to RUP expert Bill Cottrell, “RUP embodies industry-standard management and technical methods and techniques to provide a software engineering process particularly suited to creating and maintaining component-based software system solutions.” Cottrell explains that you can tailor RUP to include the PMBOK process groups, since several customers asked for that capability. There are several other project management methodologies specifically for software development projects such as Joint Application Development (JAD) and Rapid Application Development (RAD). • Six Sigma methodologies: Many organizations have projects underway that use Six Sigma methodologies. The work of many project quality experts contributed to the development of today’s Six Sigma principles. Two main methodologies are used on Six Sigma projects: DMAIC (Define, Measure, Analyze, Improve, and Control) is used to improve an existing business process, and DMADV (Define, Measure, Analyze, Design, and Verify) is used to create new product or process designs to achieve predictable, defect-free performance. 3. Describe the process of initiating a project and the issues involved. Answer: In project management, initiating includes recognizing and starting a new project. An organization should put considerable thought into project selection to ensure that it initiates the right kinds of projects for the right reasons. It is better to have a moderate or even small amount of success on an important project than huge success on one that is unimportant. The selection of projects for initiation, therefore, is crucial, as is the selection of project managers. Ideally, the project manager would be involved in initiating a project, but often the project manager is selected after many initiation decisions have already been made. Organizations must also understand and plan for the ongoing support that is often required after implementing a new system or other product or service resulting from a project. It is important to remember that strategic planning should serve as the foundation for deciding which projects to pursue. The organization’s strategic plan expresses the vision, mission, goals, objectives, and strategies of the organization. It also provides the basis for information technology project planning. Information technology is usually a support function in an organization, so it is critical that the people initiating information technology projects understand how those projects relate to current and future needs of the organization. Information systems must support the firm’s business goals, such as providing consulting services more effectively and efficiently. An organization may initiate information technology projects for several reasons, but the most important reason is to support business objectives. Providing a good return on investment at a reasonable level of risk is also important, especially in tough economic times. 4. What is a work breakdown structure? Answer: The WBS is a very important tool in project management because it provides the basis for deciding how to do the work. The WBS also provides a basis for creating the project schedule and performing earned value management for measuring and forecasting project performance. 5. In the Scrum method, what role is played by the ScrumMaster? Answer: The ScrumMaster facilitates four ceremonies or meetings when using Scrum methods: • Sprint planning session: A meeting with the team to select a set of work from the product backlog to deliver during a sprint. This meeting takes about four hours to a full day. • Daily Scrum: A short meeting for the development team to share progress and challenges and plan work for the day. Ideally the team members are in the same place, the meeting usually lasts no more than 15 minutes, and it is held at the same time and place each day. If that is not possible, teams can use videoconferencing to have short virtual meetings. The ScrumMaster asks what work has been done since yesterday, what work is planned for today, and what impediments or stumbling blocks might hamper the team’s efforts. The ScrumMaster documents these stumbling blocks and works with key stakeholders to resolve them after the daily Scrum. Many teams use the term issues for items that do not have to be solved in the next 24 hours and blockers for items that need to be addressed immediately. This allows a ScrumMaster to maintain focus on highest-priority items (blockers) first and then manage the resolution of other issues over the next day or so. • Sprint reviews: A meeting in which the team demonstrates to the product owner what it has completed during the sprint. • Sprint retrospectives: A meeting in which the team looks for ways to improve the product and the process based on a review of the actual performance of the development team. Chapter 4: Project Integration Management True/False 1. In project integration management, directing and managing project execution involves carrying out the project management plan by performing the activities included in it. Answer: True Rationale: Directing and managing project work involves carrying out the project management plan by performing the activities included in it. The outputs of this process are deliverables, work performance information, change requests, project management plan updates, and project documents updates. 2. Interface management involves identifying and managing the points of interaction between various elements of a project. Answer: False Rationale: Interface management involves identifying and managing the points of interaction between various elements of a project. 3. The number of interfaces in a single project is limited, and does not depend on the number of people involved in the project. Answer: False Rationale: Project integration management includes interface management, which involves identifying and managing the points of interaction between various elements of a project. The number of interfaces can increase exponentially as the number of people involved in a project increases. 4. Project integration management must occur just within the context of a particular project. Answer: False Rationale: Project integration management must occur within the context of the entire organization, not just within a particular project. The project manager must integrate the work of the project with the ongoing operations of the organization. 5. A SWOT analysis, being a linear process, cannot be performed using the nonlinear mind mapping technique. Answer: False Rationale: Some people like to perform a SWOT analysis by using mind mapping, a technique that uses branches radiating from a core idea to structure thoughts and ideas. 6. An organization’s information technology project selection process should guide the strategic plan. Answer: False Rationale: Aligning IT projects with business strategy is consistently a top concern for CIOs. Most organizations face thousands of problems and opportunities for improvement. Therefore, an organization’s strategic plan should guide the IT project selection process. 7. Information systems can help an organization support a strategy of being a low-cost producer. Answer: True Rationale: Many information systems are classified as “strategic” because they directly support key business strategies. For example, information systems can help an organization support a strategy of being a low-cost producer. 8. Projects that address broad organizational needs are likely to fail. Answer: False Rationale: Projects that address broad organizational needs are much more likely to be successful because they will be important to the organization. 9. As projects progress, the organization must reevaluate the need, funding, and will for each project to determine if the project should be continued, redefined, or terminated. Answer: True Rationale: As projects progress, the organization must reevaluate the need, funding, and will for each project to determine if it should be continued, redefined, or terminated. 10. Opportunities and directives are essentially the same thing. Answer: False Rationale: Opportunities are chances to improve the organization. Directives are new requirements imposed by management, government, or some external influence. 11. Projects that arise as a result of problems and directives must be resolved quickly to avoid hurting an organization’s business. Answer: True Rationale: It is often easier to get approval and funding for projects that address problems or directives because the organization must respond to these categories to avoid hurting their business. 12. The organization should complete low-priority projects before high-priority ones, if the low-priority ones take less time. Answer: False Rationale: Organizations can also categorize IT projects as having high, medium, or low priority based on the current business environment. An organization should always complete high-priority projects first, even if a low- or medium-priority project could be finished in less time. 13. An organization should consider only projects with a negative NPV if financial value is a key criterion for project selection. Answer: False Rationale: An organization should consider only projects with a positive NPV if financial value is a key criterion for project selection. 14. NPV analysis is a method for making equal comparisons between cash flows for multi-year projects. Answer: True Rationale: NPV analysis is a method for making equal comparisons between cash flows for multi-year projects. 15. An annual discount factor is a multiplier for each year based on the discount rate and year. Answer: True Rationale: The annual discount factor is a multiplier for each year based on the discount rate and year. 16. The ROI is always positive. Answer: False Rationale: The ROI is always a percentage. It can be positive or negative. 17. Payback period is the amount of time it will take to recoup, in the form of net cash inflows, the total dollars invested in a project. Answer: True Rationale: Payback analysis is another important financial tool when selecting projects. Payback period is the amount of time it will take to recoup the total dollars invested in a project, in terms of net cash inflows. 18. A project charter typically does not authorize the project manager to use organizational resources to complete the project. Answer: False Rationale: A project charter is a document that formally recognizes the existence of a project and provides direction on the project’s objectives and management. It authorizes the project manager to use organizational resources to complete the project. 19. Some organizations initiate projects using a contract in place of a project charter. Answer: True Rationale: Instead of project charters, some organizations initiate projects using a simple letter of agreement, while others use much longer documents or formal contracts. 20. The introduction or overview of a project must only include a list of definitions and acronyms. Answer: False Rationale: The introduction or overview of the project should include the following information: the project name; a brief description of the project and the need it addresses; the sponsor’s name; the names of the project manager and key team members; deliverables of the project; a list of important reference materials; and a list of definitions and acronyms. 21. A Gantt chart is the same as a project management plan. Answer: False Rationale: The project management plan is much more than a Gantt chart. 22. It is necessary that IT project managers have prior technical experience in creating and managing IT products. Answer: False Rationale: It is often helpful for IT project managers to have prior technical experience or at least a working knowledge of IT products. 23. Corrective actions reduce the probability of negative consequences associated with project risks, while preventive actions should result in improvements in project performance. Answer: False Rationale: Corrective actions should result in improvements in project performance. Preventive actions reduce the probability of negative consequences associated with project risks. 24. Change requests are always made in writing. Answer: True Rationale: Change requests are common on projects and occur in many different forms. They can be oral or written, formal or informal. 25. Organizational process asset updates are an important output of the closing process of a project. Answer: True Rationale: The project team should provide a list of project documentation, project closure documents, and historical information produced by the project in a useful format. This information is considered a process asset. Multiple Choice 1. _____ involves working with stakeholders to create the document that formally authorizes a project. A. Developing the project charter B. Developing the preliminary project scope statement C. Developing the project management plan D. Performing integrated change control Answer: A Rationale: Developing the project charter involves working with stakeholders to create the document that formally authorizes a project —the charter. 2. _____ involves coordinating all planning efforts to create a consistent, coherent document. A. Developing the project charter B. Developing the preliminary project scope statement C. Developing the project management plan D. Developing the organizational process assets updates Answer: C Rationale: Developing the project management plan involves coordinating all planning efforts to create a consistent, coherent document—the project management plan. 3. The outputs of the _____ process include change request status updates, project management plan updates, and project document updates. A. initiating B. planning C. executing D. monitoring and controlling Answer: D Rationale: The outputs of the monitoring and controlling process include change request status updates, project management plan updates, and project document updates. 4. The first step in the planning process is _____. A. to tie the information technology strategic plan to the organization’s overall strategic plan B. to perform a business area analysis C. to start defining potential IT projects in terms of their scope, benefits, and constraints D. to choose which projects to do and assigning resources to work on them Answer: A Rationale: The first step in the planning process, starting at the top of the hierarchy, is to tie the IT strategic plan to the organization’s overall strategic plan. 5. The _____ stage of information technology planning outlines business processes that are central to achieving strategic goals and helps determine which ones could most benefit from information technology. A. project planning B. business area analysis C. resource allocation D. information technology strategy planning Answer: B Rationale: The business area analysis outlines business processes that are central to achieving strategic goals and helps determine which processes could most benefit from IT. 6. In the _____ stage of selecting information technology projects, organizations define project scope, benefits, and constraints. A. project planning B. business area analysis C. resource allocation D. information technology strategy planning Answer: A Rationale: In the project planning stage of selecting information technology projects, organizations define project scope, benefits, and constraints. 7. In the _____ stage of selecting information technology projects, organizations select information technology projects. A. project planning B. business area analysis C. resource allocation D. information technology strategy planning Answer: C Rationale: In the resource allocation stage of selecting information technology projects, organizations select information technology projects. 8. _____ are new requirements imposed by management, government, or some external influence. A. Opportunities B. Charters C. Problems D. Directives Answer: D Rationale: Directives are new requirements imposed by management, government, or some external influence. 9. _____ analysis is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time. A. Cost of capital B. Net present value C. Cash flow D. Payback Answer: B Rationale: Net present value (NPV) analysis is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time. 10. Benefits minus costs is known as the _____. A. cost of capital B. cash flow C. discount factor D. opportunity cost of capital Answer: B Rationale: Cash flow is the benefits minus costs or income minus expenses. 11. The first step in determining the NPV is to _____. A. determine the estimated costs and benefits for the life of the project and the products it produces B. determine the discount rate C. calculate the net present value D. determine the cash flow Answer: A Rationale: The first step in determining the NPV is to calculate the estimated costs and benefits for the life of the project and the products it creates. 12. Which of the following is true of return on investment or ROI? A. It is always a percentage. B. It is always a positive number. C. It is the result of adding the project costs to the profits. D. The lower it is, the better. Answer: A Rationale: The ROI is always a percentage. It can be positive or negative. 13. The _____ is the minimum acceptable rate of return on an investment. A. capitalization rate B. internal rate of return C. discount rate D. required rate of return Answer: D Rationale: The required rate of return is the minimum acceptable rate of return on an investment. 14. Payback occurs when: A. the net cumulative benefits minus costs equal one. B. the net cumulative benefits equal the net cumulative costs. C. the net costs are lower than the cumulative benefits. D. the cumulative benefits are double the cumulative costs. Answer: B Rationale: Payback occurs when the net cumulative benefits equal the net cumulative costs, or when the net cumulative benefits minus costs equal zero. 15. A project’s internal rate of return can be determined by finding what discount rate results in an NPV of _____ for the project. A. zero B. one C. a hundred percent D. fifty percent Answer: A Rationale: You can determine a project’s internal rate of return (IRR) by finding what discount rate results in an NPV of zero for the project. 16. In a weighted scoring model, the sum of the weights of all the criteria must total _____ percent. A. 10 B. 50 C. 100 D. 150 Answer: C Rationale: In a weighted scoring model, a weight is assigned to each criterion based on its importance to the project. Determining weights requires consultation and final agreement. You can assign weights based on percentages; the weights of the criteria must total 100 percent. 17. A _____ is a document that recognizes the existence of a project and provides direction on the project’s objectives and management. A. stakeholder register B. risk register C. directive D. project charter Answer: D Rationale: A project charter is a document that formally recognizes the existence of a project and provides direction on the project’s objectives and management. 18. The business case includes information on _____. A. the business need for the project B. relevant government or industry standards C. the project objective, high-level requirements, and time and cost goals D. policies, procedures, guidelines, and systems that influence a project’s success Answer: C Rationale: Many projects require a business case to justify their investment. Information in the business case, such as the project objective, high-level requirements, and time and cost goals, is included in the project charter. 19. Which of the following are organizational process assets? A. Management systems B. The organization’s infrastructure C. Government standards D. Marketplace conditions Answer: A Rationale: Organizational process assets include formal and informal plans, policies, procedures, guidelines, information systems, financial systems, management systems, lessons learned, and historical information that can influence a project’s success. 20. A _____ is a document used to coordinate all project planning documents and help guide a project’s execution and control. A. project management plan B. statement of work C. scope statement D. business case Answer: A Rationale: A project management plan is a document used to coordinate all project planning documents and help guide a project’s execution and control. 21. The _____ section of the project plan should describe the major project functions and activities and identify those individuals who are in charge of them. A. organizational charts B. other organizational or process-related information C. project responsibilities D. management objectives Answer: C Rationale: This section of the project plan should describe the major project functions and activities and identify the people responsible for them. A responsibility assignment matrix is often used to display this information. 22. The _____ section of the project management plan describes how to monitor project progress and handle changes. A. management objectives B. project controls C. risk management D. technical processes Answer: B Rationale: The project controls section describes how to monitor project progress and handle changes. Will there be monthly status reviews and quarterly progress reviews? Will there be specific forms or charts to monitor progress? 23. The project schedule information section of the project management plan includes ____. A. a detailed budget B. a list of key deliverables C. an elaborate timetable D. a directory of staff involved in the project Answer: C Rationale: The project schedule information section should include a detailed schedule that provides more detailed information about the project schedule. It should reference the schedule management plan and discuss dependencies among project activities that could affect the project schedule. 24. The _____ section of the project management plan describes specific methodologies a project might use and explains how to document information. A. management objectives B. project controls C. risk management D. technical processes Answer: D Rationale: The technical processes section describes specific methodologies a project might use and explains how to document information. 25. The majority of time on a project is usually spent on _____, as is most of the project’s budget. A. execution B. planning C. closing D. monitoring and controlling Answer: A Rationale: The majority of time on a project is usually spent on execution, as is most of the project’s budget. 26. _____ should result in improvements in project performance. A. Corrective actions B. Defect repairs C. Preventive actions D. Product acceptance plans Answer: A Rationale: Corrective actions should result in improvements in project performance. 27. Which of the following is a proactive process undertaken to reduce the probability of negative consequences associated with project risks? A. Performance reports B. Preventive actions C. Defect repairs D. Corrective actions Answer: B Rationale: Preventive actions reduce the probability of negative consequences associated with project risks. The problem has not yet occurred. Measures are taken so that problems do not occur. 28. An IT company revises its process parameters in response to complaints from vendors that products were not ready on time. This would be an example of _____. A. cost forecasting B. a preventive action C. defect repairs D. a corrective action Answer: D Rationale: Corrective actions should result in improvements in project performance. 29. A(n) _____ is a formal, documented process that describes when and how official project documents may be modified, the people authorized to make modifications, and the paperwork required for these changes. A. WBS B. project charter C. performance report D. change control system Answer: D Rationale: A change control system is a formal, documented process that describes when and how official project documents may be changed. It also describes the people authorized to make changes, the paperwork required for these changes, and any automated or manual tracking systems the project will use. 30. _____ involves identifying and controlling the functional and physical design characteristics of products and their support documentation, and ensures that the descriptions of the project’s products are correct and complete. A. NPV analysis B. Project management information systems C. Configuration management D. Project time management Answer: C Rationale: Configuration management ensures that the descriptions of the project’s products are correct and complete. It involves identifying and controlling the functional and physical design characteristics of products and their support documentation. Completion 1. _____ involves coordinating all of the other project management knowledge areas throughout a project’s life cycle. Answer: Project integration management 2. _____ involves identifying and managing the points of interaction between various elements of the project. Answer: Interface management 3. _____ involves determining long-term objectives by analyzing the strengths and weaknesses, studying opportunities and threats, predicting future trends, and projecting the need for new products and services. Answer: Strategic planning 4. A(n) _____ involves analyzing a company’s strengths, weaknesses, opportunities, and threats, and is used to aid in strategic planning. Answer: SWOT analysis 5. _____ is a technique that uses branches radiating from a core idea to structure thoughts and ideas. Answer: Mind mapping 6. _____ refer to undesirable situations that prevent an organization from achieving its goals. Answer: Problems 7. _____ refer to chances to improve the organization. Answer: Opportunities 8. _____ are new requirements imposed by management, government, or some external influence. Answer: Directives 9. _____ analysis is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time. Answer: Net present value Net present value (NPV) NPV 10. A positive NPV means the return from a project exceeds the _____, the return available by investing the capital elsewhere. Answer: cost of capital 11. _____ is the result of subtracting the project costs from the benefits and then dividing by the costs. Answer: ROI Return on investment Return on investment (ROI) 12. The _____ is the discount rate that results in an NPV of zero for a project. Answer: internal rate of return internal rate of return (IRR) IRR 13. A(n) _____ is a tool that provides a systematic process for selecting projects based on many criteria. Answer: weighted scoring model 14. A(n) _____ is a methodology that converts value drivers, such as customer service, innovation, operational efficiency, and financial performance, to a series of defined metrics. Answer: balanced scorecard 15. _____ factors include relevant government or industry standards, the organization’s infrastructure, and marketplace conditions. Answer: Enterprise environmental 16. _____ include formal and informal plans, policies, procedures, guidelines, information systems, financial systems, management systems, lessons learned, and historical information that can be used to influence a project’s success. Answer: Organizational process assets 17. _____ project work includes collecting, measuring, and disseminating performance information. Answer: Monitoring 18. A(n) _____ is the approved project management plan plus approved changes. Answer: baseline 19. _____ involves identifying, evaluating, and managing changes throughout the project life cycle. Answer: Integrated change control 20. A(n) _____ is a formal group of people responsible for approving or rejecting changes to a project. Answer: change control board change control board (CCB) CCB 21. A category of software that can help align projects with business strategy is called _____ tools. Answer: business service management business service management (BSM) BSM Essay 1. List and briefly describe the six main processes involved in project integration management. Answer: 1. Developing the project charter involves working with stakeholders to create the document that formally authorizes a project—the charter. 2. Developing the project management plan involves coordinating all planning efforts to create a consistent, coherent document—the project management plan. 3. Directing and managing project execution involves carrying out the project management plan by performing the activities included in it. The outputs of this process are deliverables, work performance information, change requests, project management plan updates, and project document updates. 4. Monitoring and controlling project work involves overseeing activities to meet the performance objectives of the project. The outputs of this process are change requests, project management plan updates, and project document updates. 5. Performing integrated change control involves identifying, evaluating, and managing changes throughout the project life cycle. The outputs of this process include change request status updates, project management plan updates, and project document updates. 6. Closing the project or phase involves finalizing all activities to formally close the project or phrase. Outputs of this process include final product, service, or result transition and organizational process assets updates. 2. What are the methods for categorizing information technology projects? Answer: Selecting projects is based on various categorizations, such as the impetus for the project, the time window for the project, and the general priority for the project. The impetus for a project is often the need to respond to a problem, an opportunity, or a directive. Problems are undesirable situations that prevent an organization from achieving its goals. These problems can be current or anticipated. For example, users of an information system may be having trouble logging onto the system or getting information in a timely manner because the system has reached its capacity. In response, the company could initiate a project to enhance the current system by adding more access lines or upgrading the hardware with a faster processor, more memory, or more storage space. Opportunities are chances to improve the organization. For example, the project described in the opening case involves creating a new product that can make or break the entire company. Directives are new requirements imposed by management, government, or some external influence. For example, many projects involving medical technologies must meet rigorous government requirements. Another categorization for information technology projects is based on the time it will take to complete a project or the date by which it must be done. For example, some potential projects must be finished within a specific time window. If they cannot be finished by this set date, they are no longer valid projects. Some projects can be completed very quickly—within a few weeks, days, or even minutes. Many organizations have an end user support function to handle very small projects that can be completed quickly. Even though many information technology projects can be completed quickly, it is still important to prioritize them. Organizations can prioritize information technology projects as being high, medium, or low priority based on the current business environment. For example, if it is crucial to cut operating costs quickly, projects that have the most potential to do so would be given a high priority. The organization should always complete high-priority projects first, even if a low- or medium-priority project could be finished in less time. Usually there are many more potential information technology projects than an organization can undertake at any one time, so it is very important to work on the most important ones first. 3. What is a weighted scoring model? How is it created? Answer: A weighted scoring model is a tool that provides a systematic process for selecting projects based on many criteria. These criteria can include factors such as meeting broad organizational needs; addressing problems, opportunities, or directives; the amount of time it will take to complete the project; the overall priority of the project; and projected financial performance of the project. The first step in creating a weighted scoring model is to identify criteria important to the project selection process. It often takes time to develop and reach agreement on these criteria. Holding facilitated brainstorming sessions or using groupware to exchange ideas can aid in developing these criteria. Some possible criteria for information technology projects include: • Supports key business objectives • Has strong internal sponsor • Has strong customer support • Uses realistic level of technology • Can be implemented in one year or less • Provides positive NPV • Has low risk in meeting scope, time, and cost goals Next, you assign a weight to each criterion. Once again, determining weights requires consultation and final agreement. These weights indicate how much you value each criterion or how important each criterion is. You can assign weights based on percentages, and the sum of all of the criteria’s weights must total 100 percent. You then assign numerical scores to each criterion (for example, 0 to 100) for each project. The scores indicate how much each project meets each criterion. At this point, you can use a spreadsheet application to create a matrix of projects, criteria, weights, and scores. After assigning weights for the criteria and scores for each project, you calculate a weighted score for each project by multiplying the weight for each criterion by its score and adding the resulting values. 4. What is a project charter? Discuss the inputs that can aid the development of a project charter. Answer: A project charter is a document that formally recognizes the existence of a project and provides direction on the project’s objectives and management. It authorizes the project manager to use organizational resources to complete the project. Ideally, the project manager provides a major role in developing the project charter. The following inputs are helpful in developing a project charter: • A project statement of work: A statement of work is a document that describes the products or services to be created by the project team. It usually includes a description of the business need for the project, a summary of the requirements and characteristics of the products or services, and organizational information, such as appropriate parts of the strategic plan, showing the alignment of the project with strategic goals. • A business case: Many projects require a business case to justify their investment. Information in the business case, such as the project objective, high-level requirements, and time and cost goals, is included in the project charter. • Agreements: If you are working on a project under contract for an external customer, the contract or agreement should include much of the information needed for creating a good project charter. Some people might use a contract or agreement in place of a charter; however, many contracts are difficult to read and can often change, so it is still a good idea to create a project charter. • Enterprise environmental factors: These factors include relevant government or industry standards, the organization’s infrastructure, and marketplace conditions. Managers should review these factors when developing a project charter. • Organizational process assets: Organizational process assets include formal and informal plans, policies, procedures, guidelines, information systems, financial systems, management systems, lessons learned, and historical information that can influence a project’s success. 5. What is integrated change control? What are the main objectives of integrated change control? Answer: Integrated change control involves identifying, evaluating, and managing changes throughout the project life cycle. The three main objectives of integrated change control are: 1. Influencing the factors that create changes to ensure that changes are beneficial: To ensure that changes are beneficial and that a project is successful, project managers and their teams must make trade-offs among key project dimensions, such as scope, time, cost, and quality. 2. Determining that a change has occurred: To determine that a change has occurred, the project manager must know the status of key project areas at all times. In addition, the project manager must communicate significant changes to top management and key stakeholders. Top management and other key stakeholders do not like surprises, especially ones that mean the project might produce less, take longer to complete, cost more than planned, or be of lower quality than desired. 3. Managing actual changes as they occur: Managing change is a key role of project managers and their teams. It is important that project managers exercise discipline in managing the project to help minimize the number of changes that occur. Test Bank for Information Technology Project Management Kathy Schwalbe 9781133526858, 9781133627227, 9780324786927, 9781337101356, 9780324665215

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