Deck 1: The World of Project Management

Question 1

Many recent developments in project management are being driven by changes in the nature of the American workforce.

Answer 1

False

Question 2

Achieving both strategic and routine goals are growing in importance in project management.

Answer 2

True

Question 3

Projects are always carried out under conditions of uncertainty.

Answer 3

True

Question 4

Programs are subdivisions of projects.

Question 5

Nonnumeric project selection methods are only suitable if numeric methods are not available.

Question 6

One can trade-off time and cost when managing a project, but the project's technical specifications must be maintained exactly as the client initially specifies.

Question 7

While general managers have their authority limited to specific areas in the overall organization, project managers have authority over any activity required by the project.

Question 8

The main distinction between platform and breakthrough projects is that the former usually depend on existing technology.

Question 9

One of the few similarities between project management and general management is that both exist in the well-defined organizational structure of superior/subordinates in the overall organization.

Question 10

The main distinction between platform and derivative projects is that the latter depend on existing technology.

Question 11

A disadvantage of using the payback period method for selecting projects is that it cannot reflect the time-value of money.

Question 12

When using financial methods for selecting projects, the payback period is the simplest and best method to use.

Question 13

One reason for the emphasis on project management is that tasks fit neatly into business-as-usual.

Question 14

A primary purpose of forming projects is to assign the responsibility for accomplishing some organizational task to a specific person or small group.

Question 15

Rank-ordering a large number of projects can be done with a Q-sort.

Question 16

A disadvantage of using the discounted cash flow method (or net present value) for selecting projects is that it ignores all non-monetary factors associated with the project.

Question 17

A key deficiency of the aggregate project plan is that it provides little information about the resources committed to the various projects.

Question 18

A disadvantage of using scoring models rather than financial models for selecting projects is that they cannot include the project's profitability.

Question 19

If a PM manages her project well enough she can eliminate uncertainty.

Question 20

A PM does not need to understand why a project is selected for funding because he did not initiate the process.

Question 21

One limitation of scoring methods is that they can only incorporate quantitative data.

Question 22

Projects success is not determined by the portfolio of projects in an organization..

Question 23

Negotiating the purchase of a new car would typically be characterized as win-win negotiation.

Question 24

Projects with deliverables that are incrementally different from existing offerings are classified as platform projects.

Question 25

Scoring methods were developed to overcome some of the disadvantages of simple financial profitability methods.

Question 26

Projects are subdivisions of programs.

Question 27

The comparative benefits method is considered a nonnumeric project selection method.

Question 28

Projects in which team members may never physically meet before the team is disbanded and another team reconstituted is called a virtual team

Question 29

In the early years of a project when outflows usually exceed inflows, the NPV of the project for those years will be positive.

Question 30

Project budgets are primarily modifications of budgets for the same activity in the previous period.

Question 31

The project manager depends on legitimate authority to gain the cooperation of the many departments in the organization that may be asked to supply technology, information, resources and personnel to the project.

Question 32

A project that is selected because it is necessary for continued operations exemplifies a sacred cow.

Question 33

When using the weighted scoring model, the categories for each scale must be in equal intervals.

Question 34

The construction of a house would likely follow a J-shaped lifecycle.

Question 35

As a rule of thumb, the number of factors included in a scoring model should be at least 10.

Question 36

R&D projects are oriented toward using newly developed technologies or existing technologies in a new manner.

Question 37

A similarity between project management and general management is the tendency to "manage by exception."

Question 38

In project management, it is often necessary to trade-off one objective for another.

Question 39

In project management, superior-subordinate relationships are known and lines of authority are clear.

Question 40

Having responsibility for the outcome of a project without the authority of rank or position is common in project management.

Question 41

Which of the following is not a characteristic of a project?

A) They are unique
B) They are routine
C) They have specific due date
D) They have a specific deliverable
E) They have a purpose

Question 42

In Crystal Ball, cells that contain outcomes we are interested in are called

A) assumption cells
B) distribution cells
C) forecast cells
D) decision cells
E) define cells

Question 43

Which of the following criteria can be included in scoring models for selecting projects?

A) potential profitability of the project
B) potential impact on the firm's competitive position
C) the organization's ability to market the output of a project
D) All of the above can be included
E) only a and b above

Question 44

As the present value of future returns decreases with rising discount rates, firms with high hurdle rates favor short-run projects.

Question 45

Which of the following is not related to the three goals of a project?

A) time
B) data
C) schedule
D) cost
E) performance

Question 46

Searching for the third alternative is most closely associated with

A) win-win negotiation
B) project planning
C) project budgeting
D) the three goals of a project
E) the weighted scoring model

Question 47

Projects that begin with a slow start, have quick momentum in the middle, and have a slow finish are said to follow which type of lifecycle?

A) J-shaped lifecycle
B) L-shaped lifecycle
C) an exponential growth lifecycle
D) an S-shaped lifecycle
E) an X-shaped lifecycle

Question 48

Briefly explain what a project is.

Question 49

Which of the following are projects?

A) the design and development of a new product
B) gathering and entering employment data for a Bureau of Labor Statistics quarterly report
C) producing a car on an automobile assembly line
D) a and b above.
E) a, b, and c above.

Question 50

Which of the following is a numeric project selection method?

A) comparative benefits
B) payback period
C) Q-sort method
D) operating/competitive necessity
E) sacred cow

Question 51

Which of the following is not a trend in project management?

A) achieving strategic goals
B) improving project effectiveness
C) quasi projects
D) reductive projects
E) achieving routine goals

Question 52

If the initial investment is a project is $100,000 and the expected annual net profit for the project is $20,000, the payback period is:

A) One fifth of a year
B) 4 years
C) 5 years
D) 10 years
E) insufficient information to determine the payback period

Question 53

Which of the following would not be considered a project?

A) placing the weekly replenishment order
B) a political campaign
C) constructing a new office building
D) developing a new cancer treatment.
E) writing a new textbook

Question 54

Which of the following is are criteria for project selection?

A) Is there a market offering for the project results
B) How risky is the project
C) Is the project synergistic with other important projects
D) All of the above

Question 55

The aggregate project plan can be used for the following except:

A) View the mix of projects within each illustrated aspect
B) Determine the profitability of the projects
C) Analyze and adjust the mix of projects within each category or aspect
D) Identify and adjust the gaps in the categories, aspects, sizes and timing of the projects.

Question 56

Which of the following is a nonnumeric project selection method?

A) Q-sort method
B) payback period
C) discounted cash flow method
D) real options
E) scoring methods

Question 57

A matrix that illustrates the magnitude of both product and process changes resulting from a project is called

A) the aggregate project plan
B) the product-process matrix
C) the aggregate master production schedule
D) the balanced scorecard
E) the R&D project portfolio

Question 58

How do you know if project completion is successful?.

Question 59

The ________________________ attempts to link the organization's projects directly to the goals and strategy of the organization.

A) the product-process matrix
B) the balanced scorecard
C) the action plan
D) project portfolio process
E) the work breakdown structure

Question 60

"Blue Sky" projects are

A) R & D projects
B) Platform projects
C) Breakthrough projects
D) Derivative projects
E) High risk projects

Question 61

Briefly describe each of the three fundamental goals of a project.

Question 62

To what extent can the three goals of a project be traded-off for one another?

Question 63

Why is having a negotiation skill in win-win negotiation necessary for the project manager?

Question 64

Briefly describe the two different life cycles of projects.

Question 65

Explain what the third alternative is in negotiation.

Question 66

Briefly explain the project portfolio process.

Question 67

Briefly differentiate between derivative and breakthrough projects as defined by Wheelwright and Clark.

Question 68

What are the major trends in project management?

Question 69

Briefly explain the advantages of using scoring models to evaluate and select projects rather than using financial models.

Question 70

Briefly highlight the difference between win-win and win-lose negotiation strategies.