Deck 4: Systems Planning and Selection

Question 1

The development group identifies projects based on the ease with which existing hardware and systems will integrate with the proposed project.

Answer 1

True

Question 2

Projects identified by top management have a cross-functional focus.

Answer 2

False

Question 3

The Project Charter reflects the best estimate of the project's scope, benefits, costs, risks, and resource requirements, given the current understanding of the project.

Answer 3

False

Question 4

When comparing alternative methods for making information systems identification and selection decisions, top management's selection decisions often involve a small system size and have a cross-functional focus.

Question 5

Due to the principle of incremental commitment, a selected project will result in a working system.

Question 6

Project initiation focuses on activities that will help organize a team to conduct project planning.

Question 7

Increased flexibility is an example of an intangible benefit.

Question 8

Site preparation is an example of a one-time cost.

Question 9

The criteria used to evaluate projects will vary by organization.

Question 10

Requirements structuring is the first activity of the systems planning and selection phase.

Question 11

The major outcomes and deliverables from project initiation and planning are the Baseline Project Plan and the Project Scope Statement.

Question 12

Economic feasibility is a process of identifying the financial benefits and costs associated with a development project.

Question 13

Project planning focuses on defining clear, discrete tasks and the work needed to complete each task.

Question 14

The objective of project identification and selection is to transform a vague system request document into a tangible project description.

Question 15

The Baseline Project Plan (BPP) is the primary deliverable from the project identification and selection phase.

Question 16

A schedule of specific IS development projects is the primary deliverable from the project identification and selection phase.

Question 17

Proper and insightful project initiation and planning, including determining project scope and identifying project activities, can reduce the time needed to complete later project phases, including systems analysis.

Question 18

Systems analysis is the first phase of the systems development life cycle.

Question 19

To maintain consistency, the classification and ranking of projects should only be performed by top management or a steering committee.

Question 20

Opening new markets and increasing sales opportunities is a tangible benefit.

Question 21

Referencing the Management Issues section of the Baseline Project Plan, the communication plan provides a description of the team member roles and reporting relationships.

Question 22

All information collected during project initiation and planning is collected and organized into a document called the Baseline Project Plan.

Question 23

A walkthrough is a peer group review of any product created during the systems development process.

Question 24

The construction of an information system can have political ramifications.

Question 25

Using a discount rate of 14 percent, the present value of a $10,000 benefit received 5 years from now is $5,500.49.

Question 26

The goal of operational feasibility is to understand the degree to which a proposed system will likely solve the business problems or take advantage of opportunities.

Question 27

Referencing a walkthrough, the user makes sure that the work product meets the needs of the project's customers.

Question 28

The time value of money (TVM) compares present cash outlays to future expected returns.

Question 29

Generally speaking, legal and contractual feasibility is a greater consideration if your organization has historically used an outside organization for specific systems or services that you now are considering handling yourself.

Question 30

The Explanation of Services is a document prepared for the customer that describes what the project will deliver and outlines generally at a high level all work required to complete the project.

Question 31

Using a discount rate of 10 percent, the present value of a $2,500 benefit received 5 years from now is $1,552.30.

Question 32

Fulfillment feasibility is the process of examining the likelihood that the project will attain its desired objectives.

Question 33

Because many projects may be competing for the same investment dollars and may have different useful life expectancies, all costs and benefits must be viewed in relation to their present rather than future value when comparing investment options.

Question 34

Using a discount rate of 12 percent, the present value of a $50,500 benefit received 2 years from now is $40,258.29.

Question 35

The objective of return on investment (ROI) analysis is to discover at what point cumulative benefits equal costs.

Question 36

If the net present value (NPV) of all costs is $100,000 and the NPV of all benefits is $170,000, then the ROI would be 35 percent.

Question 37

Variable costs are costs resulting from the ongoing evolution and use of a system.

Question 38

Referencing a walkthrough, the maintenance oracle ensures that the work product adheres to organizational technical standards.

Question 39

Referencing a walkthrough, the coordinator reviews the work product in terms of future maintenance activities.

Question 40

Most techniques for analyzing economic feasibility employ the time value of money concept.

Question 41

The extent to which the project is viewed as improving profits, customer service, etc., and the duration of these benefits best defines which of the following evaluation criteria?

A) Potential benefits
B) Resource availability
C) Technical difficulty or risks
D) Strategic alignment
E) Value chain analysis

Question 42

An extranet is Internet-based communication to support business-to-business activities.

Question 43

Potential development projects can be identified by:

A) a steering committee.
B) top management.
C) a senior IS manager.
D) user departments.
E) all of the above.

Question 44

The Internet is a global network comprised of thousands of interconnected individual networks that communicate with each other through transmission control protocol/internet protocol (TCP/IP).

Question 45

Organizations that have intranets dictate what applications will run over the intranet and the speed and quality of the hardware connected to the intranet.

Question 46

Which of the following is one of the three primary activities associated with identifying and selecting IS development projects?

A) Preliminary investigation of the system problem or opportunity
B) Identification of potential development projects
C) Requirements determination
D) Generate alternative initial designs
E) Requirements structuring

Question 47

Research has found that projects identified by top management more often:

A) have a narrow, tactical focus.
B) reflect diversity and have a cross-functional focus.
C) have a strategic, organizational focus.
D) will integrate easily with existing hardware and systems.
E) have a very low systems development priority.

Question 48

A firewall server is an example of a content and service Web-based system cost.

Question 49

The first phase of the systems development life cycle is:

A) systems planning and selection.
B) systems study.
C) systems analysis.
D) systems design.
E) systems implementation and operation.

Question 50

Which of the following possible project sources most often reflects the broader needs of the organization?

A) User department
B) Development group
C) IS manager
D) Top management
E) Production manager

Question 51

Web-based system costs include platform costs, content and service, and marketing.

Question 52

An intranet refers to the use of the Internet between firms.

Question 53

Research has found that projects identified by individual departments or business units most often:

A) have a narrow, tactical focus.
B) reflect diversity and have a cross-functional focus.
C) have a strategic, organizational focus.
D) will integrate easily with existing hardware and systems.
E) have a very high systems development priority.

Question 54

Which of the following alternative methods for making information systems identification and selection decisions has the highest associated cost?

A) Development group
B) User department
C) Steering committee
D) Top management
E) End user

Question 55

A department head deciding which project requests to submit is an example of:

A) a preliminary investigation of the system problem or opportunity.
B) identifying potential development projects.
C) requirements determination.
D) generating alternative initial designs.
E) requirements structuring.

Question 56

The systems planning and selection process for an Internet-based electronic commerce application is no different than the process followed for other applications.

Question 57

Electronic Data Interchange (EDI) is the use of telecommunications technologies to transfer business documents directly between organizations.

Question 58

Which of the following alternative methods for making information systems identification and selection decisions has as its focus integration with existing systems?

A) Development group
B) User department
C) Steering committee
D) Top management
E) End user

Question 59

When developing an Internet electronic commerce application, developers must deal with several unknown factors, including the user, connection speed, and access method.

Question 60

When developing either an intranet or an extranet, developers know who the users are, what applications will be used, the speed of the network connection, and the type of communication devices.

Question 61

Which of the following is a project planning activity?

A) Establishing management procedures
B) Establishing a relationship with the customer
C) Estimating resources and creating a resource plan
D) Establishing the project management environment and project workbook
E) Establishing the project initiation plan

Question 62

A major outcome and deliverable from project initiation and planning that reflects the best estimate of the project's scope, benefits, costs, risks, and resource requirements defines the:

A) Baseline Project Plan.
B) Information Systems Plan.
C) Mission Statement.
D) Resource Requirements Statement.
E) Systems Service Request.

Question 63

If the project team and organizational officials reassess the project after each subsequent SDLC phase to determine if the business conditions have changed or if a more detailed understanding of a system's costs, benefits, and risks suggest that the project is not as worthy as previously thought, they are:

A) adhering to the incremental commitment principle.
B) overly cautious.
C) using a CASE methodology.
D) adhering to a bottom-up commitment principle.
E) using a staged approached to systems development.

Question 64

Analyzing an organization's activities to determine where value is added to products and/or services and the costs incurred best describes:

A) affinity clustering.
B) business process reengineering.
C) value chain analysis.
D) resource availability.
E) technical difficulty.

Question 65

The primary deliverable from the project identification and selection phase is:

A) a context data flow diagram.
B) at least three substantively different system design strategies for building the replacement information system.
C) the development of a new version of the software and new versions of all design documents.
D) an entity relationship diagram.
E) a schedule of specific IS development projects.

Question 66

Tangible benefits would include:

A) improved organizational planning.
B) ability to investigate more alternatives.
C) improved asset control.
D) lower transaction costs.
E) first to market.

Question 67

Cost reduction and avoidance, error reduction, and increased flexibility are examples of:

A) intangible benefits.
B) qualitative benefits.
C) tangible benefits.
D) legal and contractual benefits.
E) profitable benefits.

Question 68

As a rule of thumb estimate, what percentage of the entire development effort should be devoted to the project initiation and planning process?

A) Between 10 and 20 percent
B) Less than 5 percent
C) Less than 10 percent
D) Between 20 and 30 percent
E) Over 50 percent

Question 69

Activities designed to assist in organizing a team to conduct project planning is the focus of:

A) project development.
B) project identification and selection.
C) project initiation.
D) analysis.
E) implementation and operation.

Question 70

To identify the financial benefits and costs associated with the development project is the purpose of:

A) financial feasibility.
B) technical feasibility.
C) operational feasibility.
D) economic feasibility.
E) schedule feasibility.

Question 71

The Baseline Project Plan:

A) contains all information collected and analyzed during project initiation and planning.
B) specifies detailed project activities for the next life cycle phase, analysis, and less detail for subsequent project phases.
C) is used by the project selection committee to help decide if the project should be accepted, redirected, or canceled.
D) reflects the best estimate of the project's scope, benefits, costs, risks, and resource requirements given the current understanding of the project.
E) does all of the above.

Question 72

Which of the following is NOT a project initiation activity?

A) Establishing management procedures
B) Dividing the project into manageable tasks
C) Establishing a relationship with the customer
D) Establishing the project initiation team
E) Establishing the project initiation plan

Question 73

A major outcome and deliverable from the project initiation and planning phase that contains an estimate of the project's scope, benefits, costs, risks, and resource requirements best defines:

A) Baseline Project Plan.
B) Information Systems Plan.
C) Business Case.
D) Statement of Work.
E) System Service Request.

Question 74

The extent to which the project is viewed as helping the organization achieve its strategic objectives and long-term goals describes:

A) potential benefits.
B) resource availability.
C) technical difficulty or risks.
D) strategic alignment.
E) value chain analysis.

Question 75

Which of the following is NOT a project planning activity?

A) Determining project standards and procedures
B) Establishing management procedures
C) Developing a Statement of Work
D) Dividing the project into manageable tasks
E) Developing a communication plan

Question 76

A benefit derived from the creation of an information system that can be measured in dollars and with certainty is a(n):

A) intangible benefit.
B) qualitative benefit.
C) tangible benefit.
D) operational benefit.
E) profitable benefit.

Question 77

The reduction of waste creation is an example of a(n):

A) intangible benefit.
B) qualitative benefit.
C) tangible benefit.
D) operational benefit.
E) profitable benefit.

Question 78

Which of the following is a project initiation activity?

A) Developing a preliminary schedule
B) Setting a baseline project plan
C) Determining project standards and procedures
D) Establishing a relationship with the customer
E) Developing a communication plan

Question 79

The objective of the project planning process is the development of:

A) a Baseline Project Plan and Project Scope Statement.
B) a Systems Service Request.
C) entity relationship diagrams.
D) corporate strategic plan.
E) an information systems plan.

Question 80

A savings of $5,000 resulting from data entry error reductions would most likely be classified as a(n):

A) intangible benefit.
B) qualitative benefit.
C) tangible benefit.
D) operational benefit.
E) profitable benefit.