224818585 Project Management Chap 001

Chapter 01 - Modern Project Management

Chapter 01 Modern Project Management Multiple Choice Questions

1. The advent of project management has been most profound in A. Automobile manufacturing B. Construction C. nformation technolog! ". The #.$. "epartment of "efense %. &ilm ma'ing

(. A professional organi)ation for project management specialists is the A. PM B. AMA C. M$ ". PM %. PMB*+

,. hich of the folloing is not considered to be a characteristic of a project/ A. An established objective B. A clear beginning and end C. Comple tas's ". *nl! for internal use %. ever been done before

2. hich of the folloing activities is not considered a project/ A. "eveloping a ne softare program B. "esigning a space station C. Preparing the site for the *l!mpic 3ames ". Production of automobile tires %. "eveloping a ne advertising program

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4. &rom among the folloing activities5 hich is the best eample of a project/ A. Processing insurance claims B. Producing automobiles C. riting a term paper ". Completing a college degree %. All of these are good eamples of projects

6. hich of the folloing constraints is not t!picall! found in managing projects/ A. Time B. People C. Cost ". Performance %. Both B and " are not t!pical constraints

7. hich of the folloing choices is not no t one of the stages of a project life c!cle/ A. Conceptuali)ing B. "efining C. Planning ". %ecuting %. "elivering

8. n hich of the folloing stages are project objectives established5 teams formed5 and major responsibilities assigned/ A. Conceptuali)ing B. "efining C. Planning ". %ecuting %. "elivering

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4. &rom among the folloing activities5 hich is the best eample of a project/ A. Processing insurance claims B. Producing automobiles C. riting a term paper ". Completing a college degree %. All of these are good eamples of projects

6. hich of the folloing constraints is not t!picall! found in managing projects/ A. Time B. People C. Cost ". Performance %. Both B and " are not t!pical constraints

7. hich of the folloing choices is not no t one of the stages of a project life c!cle/ A. Conceptuali)ing B. "efining C. Planning ". %ecuting %. "elivering

8. n hich of the folloing stages are project objectives established5 teams formed5 and major responsibilities assigned/ A. Conceptuali)ing B. "efining C. Planning ". %ecuting %. "elivering

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9. n hich of the folloing stages is a major portion of the ph!sical and mental project or' performed/ A. Conceptuali)ing B. "efining C. Planning ". %ecuting %. "elivering

10. n hich of the folloing stages are a re !ou more li'el! to find status reports5 man! changes5 cha nges5 and the creation of forecasts/ A. Conceptuali)ing B. "efining C. Planning ". %ecuting %. "elivering

11. hich of the folloing characteristics is not t!pical of a project manager/ A. Managing a temporar! activit! B. Possesses in-depth technical 'noledge C. Managing a non-repetitive activit! ". Manages independentl! of the formal organi)ation %. Provides a direct lin' to the customer

1(. hich of the folloing choices is not n ot one of the driving forces behind the increasing demand for project management/ A. Compression of the product life c!cle B. +noledge eplosion C. "evelopment of third orld and closed economies ". More emphasis on the product and an d less on the customer %. Corporate donsi)ing

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1,. hich of the folloing statements is true/ A. Project management is becoming a standard a! of doing business B. Project management is increasingl! contributing to achieving organi)ational strategies C. Project management is being used at a consistent percentage of a firm:s efforts ". Both A and B are true %. A5 B5 and C are all true

12. Project management is ideall! suited for a business environment re;uiring all of the folloing ecept A. Accountabilit! B. &leibilit! C. nnovation ". $peed %.
14. hich of the folloing is the number n umber one characteristic that is loo'ed for in management candidates/ A. *verall intelligence B. or's ell ith others C. %perience ". Past successes %. 3ood references

16. A common rule of thumb thu mb in the orld of high-tech product development is that a simonth project dela! can result in a loss of product revenue share of === percent. The aste on failed projects and cost overruns is estimated in the neighborhood of A. 10 B. (0 C. ,, ". 24 %. 40

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17. The aste on failed projects and cost overruns is estimated in the neighborhood of A. #nder >100 Million B. *ver >140 Billon C. #nder >10 Billion ". Beteen >90->100 Billion %. Beteen >1(4->1,4 Billion

18. hich of the folloing is the first step in developing dev eloping a set of strategies designed to best meet the needs of customers/ A. Mar'et
19. ntegration of project management ith the organi)ation ta'es place ith the A. Master budget B. $trateg! plan C. Process of managing actual projects ". Both b and c are correct %. A5 B5 and C are all correct

(0. To dimensions ithin the project management process are A. Technical and sociocultural B. Cost and time C. Planned and unepected ". %stablished and ne %. #ni;ue and reoccurring

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(1. hich of these is not part of the ?technical dimension? of project management/ A. B$ B. Budgets C. Problem solving ". $chedules %. $tatus reports

((. hich of these is not part of the ?sociocultural dimension? of project management/ A. egotiation B.
(,. Corporate donsi)ing has increased the trend toard A.
(2. The importance of project management has increased due to A. The movement of manufacturing operations out of the #.$ B. Time to mar'et C. The movement toard flatter and leaner organi)ations ". Both a and b are true %. A5 B5 and C are all true

(4. hich of the folloing is not t!picall! the responsibilit! of a project manger/ A. Meeting budget re;uirements B. Meeting schedule re;uirements C. Meeting performance specifications ". Coordinates the actions of the team members %. All of these are t!pical responsibilities

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(6. A series of coordinated5 related5 multiple projects that c ontinue over etended time intended to achieve a goal is 'non as a A. $trateg! B. Program C. Campaign ". Crusade %. enture

(7. n hich of the folloing stages is it determined hat the project ill entail5 hen it ill be scheduled5 hom it ill benefit5 and hat the budget ill be/ A. Conceptuali)ing B. "efining C. Planning ". %ecuting %. "elivering

(8. Competing in a global mar'et is influenced b! A.
(9. ntegration of all project processes and practices to improve Project Management is due to A. Centrali)ation B. %nvironmental anal!sis C. Customer %pectations ". Project management s!stem %. The organi)ation:s environment and culture

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,0. &rom 1992 to (009 the trend for projects late or over budget as A. $ignificantl! better B. $lightl! better C. About the same ". $lightl! orse %. $ignificantl! orse

Fill in the Blank Questions

,1. @i'e most organi)ational effort5 the major goal of a project is to ==========. ========================================

,(. The initial stage in the Project @ife C!cle is the ========== stage. ========================================

,,. The final stage in the Project @ife C!cle is the ========== stage. ========================================

,2. The ==========5 a professional organi)ation for project managers5 has gron from 9,5000 in (00( to more than (,05000 currentl!. ========================================

,4. n the ========== stage of the Project @ife C!cle a major part of the project or'5 both ph!sical and mental5 ta'es place. ========================================

,6. n the ========= stage of the Project @ife C!cle hat ill be accomplished b! the project is determined along ith the project:s schedule and budget. ========================================

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,7. A common rule of thumb in the orld of high-tech product development is that a simonth project dela! can result in a ========== percent loss in product revenue share. ========================================

,8. n toda!:s high-tech industries the product life c!cle is averaging ========= !ears. ========================================

,9. The advent of man! small projects has created the need for an organi)ation that can support ========== management. ========================================

20. ncreased competition has placed a premium on customer satisfaction and the development of ========== products and services. ========================================

21. n some organi)ations5 selection and management of projects often fail to support the broad-based ========= of the organi)ation. ========================================

2(. B$5 schedules5 and budgets are eamples of the ========= dimension of the project management process. ========================================

2,. @eadership5 teamor'5 and negotiation are eamples of the ========= dimension of the project management process. ========================================

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22. The ======== is a professional organi)ation for project management specialists. ========================================

24. *ne of the defining characteristics of a project is that it has a singular purpose5 i.e.5 an established ========. ========================================

26. Because projects have a defined beginning and end5 the ======== is fre;uentl! used to manage the transition of a project from start to completion. ========================================

27. The development of schedules5 budgets5 and identif!ing ris's are common elements to the ======== stage of the project life c!cle. ========================================

28. The establishment of project goals5 specifications5 and responsibilities usuall! occurs in the ======== stage of the project life c!cle. ========================================

29. Training the customer5 reassigning staff5 and releasing resources occurs in the ======== stage of the project life c!cle. ========================================

40. Project managers are epected to ensure that appropriate trade-offs are made beteen the time5 cost5 and ========== re;uirements of the project. ========================================

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41. The groth in ======== has increased the compleit! of projects because projects t!picall! include the latest advances. ========================================

4(. A ========= is a series of coordinated5 related multiple projects that continue over etended time intended to achieve a goal. ========================================

4,. n the ========== stage5 it determined hat the project ill entail5 he n it ill be scheduled5 hom it ill benefit5 and hat the budget ill be. ========================================

True / False Questions

42. Because of the profitabilit! motive5 project management is nearl! ala!s limited to the private sector. True &alse

44. Ten !ears ago major universities offered onl! one or to classes in project management5 primaril! for engineers. True &alse

46. The professional certification for project managers is a Project Management Professional DPMPE. True &alse

47. Because of its fleibilit!5 project management is e;uall! useful in ongoing5 routine or' as ell as uni;ue5 one-time projects. True &alse

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48. *ne of the defining characteristics of project management is that the projects are not confined to a single department but involve several departments and professionals. True &alse

49. *ne of the characteristics that separate project management from other endeavors of the organi)ation is that there are specific time5 cost5 and performance re;uirements. True &alse

60. The singular purpose of a project is often lac'ing in dail! organi)ational life in hich or'ers perform repetitive operations each da!. True &alse

61. $ince a construction compan! builds man! buildings the projects after the first building do not fit the definition of a project. True &alse

6(. The first stage in the Project @ife C!cle is the Concept stage. True &alse

6,. A major portion of the project or'5 both ph!sical and mental5 ta'es place during the Production stage of the Project @ife C!cle. True &alse

62. n practice5 the amount of or' accomplished in each stage of the Project @ife C!cle ill var! greatl! depending on the department or or' group. True &alse

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64. Because of the re;uirement for in-depth epertise5 project management is generall! restricted to specialists. True &alse

66. *n the project team5 the Mar'eting manager is the primar!5 direct lin' ith the customer. True &alse

67. *ne of the most significant driving forces behind the demand for project management is the ever increasing epansion of the product life c!cle. True &alse

68. #nli'e their functional counterparts5 project managers generall! possess onl! rudimentar! technical 'noledge to ma'e trade-off decisions. True &alse

69. Because of the significant loss in potential product revenue5 ?time to mar'et? has become one of the most critical factors in developing ne products. True &alse

70. A common rule of thumb in the orld of high-tech product development is that a simonth project dela! can result in a ,, percent loss in product revenue share. True &alse

71. Project management integration necessitates combining all of the major dimensions of project management under one umbrella. True &alse

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7(. "ue to corporate donsi)ing significant segments of project or' have been outsourced to other organi)ations. True &alse

7,. $maller projects in larger organi)ations tend not to need project management s'ills. True &alse

72. n the current trends5 Project managers are t!picall! re;uired to manage man! diverse s!stems such as netor's5 bar charts5 job costing5 tas' forces5 partnering and schedule5 to manage projects. True &alse

74. Project management is usuall! restricted to specialists. True &alse

76. Project management is becoming a standard a! of doing business. True &alse

Short Anser Questions

77. Compare and contrast the Product @ife C!cle and the Project @ife C!cle.

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78. dentif! the five major characteristics of a project.

79. dentif! and briefl! describe the four stages of the Project @ife C!cle.

80. ?Project managers perform the same functions as other managers.? Agree or "isagree and support !our decision.

81. dentif! and briefl! describe the si factors that are increasing the demand for project management.

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8(. hat is meant b! an ?ntegrated Project Management Process?/

8,. dentif! and briefl! discuss the to 'e! areas here project management need to be integrated ithin the organi)ation.

82. dentif! and briefl! discuss the to 'e! dimensions of managing actual projects.

84. The success of individual projects is t!picall! measured b! performance compared to three constraints usuall! placed on all projects. dentif! and briefl! describe those three constraints.

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86. "escribe hat it means that a Project Manager must or' ith a diverse troupe of characters/

87. hat is the difference beteen a project and a program/

88. "escribe the connection beteen Project Management and an organi)ation:s $trategic Plan.

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Chapter 01 Modern Project Management Anser +e!

Multiple Choice Questions

1. The advent of project management has been most profound in A. Automobile manufacturing B. Construction C! nformation technolog! ". The #.$. "epartment of "efense %. &ilm ma'ing The impact of project management is most profound in the area of electronics industr!5 here the ne fol' heroes are !oung professionals hose Ferculean efforts lead to the constant flo of ne hardare and softare products.

AACSB: Reflective Thinking Bloom's: Comprehension Learning Objective: What is a roject! Level: "as#

(. A professional organi)ation for project management specialists is the A! PM B. AMA C. M$ ". PM %. PMB*+ The Project Management nstitute DPME5 is a professional organi)ation for project managers.


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,. hich of the folloing is not considered to be a characteristic of a project/ A. An established objective B. A clear beginning and end C. Comple tas's "! *nl! for internal use %. ever been done before $ee @ist on Page 4.

AACSB: Reflective Thinking Bloom's: Application Learning Objective: What is a roject! Level: $e%i&m

2. hich of the folloing activities is not considered a project/ A. "eveloping a ne softare program B. "esigning a space station C. Preparing the site for the *l!mpic 3ames "! Production of automobile tires %. "eveloping a ne advertising program A project is not routine5 repetitive or'G *rdinar! dail! or' t!picall! re;uires doing the same or similar or' over and over5 hile a project is done onl! once a ne product or service eists hen the project is completed.

AACSB: Anal#tic Bloom's: "val&ation Learning Objective: What is a roject! Level: $e%i&m

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4. &rom among the folloing activities5 hich is the best eample of a project/ A. Processing insurance claims B. Producing automobiles C! riting a term paper ". Completing a college degree %. All of these are good eamples of projects $ee table 1.1 on Page 6.

AACSB: Anal#tic Bloom's: Anal#sis Learning Objective: What is a roject! Level: $e%i&m

6. hich of the folloing constraints is not t!picall! found in managing projects/ A. Time B! People C. Cost ". Performance %. Both B and " are not t!pical constraints $pecific time5 cost5 and performance re;uirements bind projects.

AACSB: Anal#tic Bloom's: Comprehension Learning Objective: What is a roject! Level: $e%i&m

7. hich of the folloing choices is not one of the stages of a project life c!cle/ A! Conceptuali)ing B. "efining C. Planning ". %ecuting %. "elivering $ee @ist on Page 7.

AACSB: Anal#tic Bloom's: no(le%ge Learning Objective: What is a roject! Level: $e%i&m

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8. n hich of the folloing stages are project objectives established5 teams formed5 and major responsibilities assigned/ A. Conceptuali)ing B! "efining C. Planning ". %ecuting %. "elivering $pecifications of the project are defined project objectives are established teams are formed major responsibilities are assigned.

AACSB: Anal#tic Bloom's: Comprehension Learning Objective: What is a roject! Level: $e%i&m

9. n hich of the folloing stages is a major portion of the ph!sical and mental project or' performed/ A. Conceptuali)ing B. "efining C. Planning "! %ecuting %. "elivering A major portion of the project or' ta'es placeHboth ph!sical and mental.

AACSB: Anal#tic Bloom's: Application Learning Objective: What is a roject! Level: $e%i&m

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10. n hich of the folloing stages are !ou more li'el! to find status reports5 man! changes5 and the creation of forecasts/ A. Conceptuali)ing B. "efining C. Planning "! %ecuting %. "elivering Time5 cost5 and specification measures are used for control.

AACSB: Anal#tic Bloom's: Application Learning Objective: What is a roject! Level: $e%i&m

11. hich of the folloing characteristics is not t!pical of a project manager/ A. Managing a temporar! activit! B! Possesses in-depth technical 'noledge C. Managing a non-repetitive activit! ". Manages independentl! of the formal organi)ation %. Provides a direct lin' to the customer ncreased competition has placed a premium on customer satisfaction. Customers no longer simpl! settle for generic products and services.

AACSB: Anal#tic Bloom's: Anal#sis Learning Objective: The )mportance of roject $anagement Level: *iffic<

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1(. hich of the folloing choices is not one of the driving forces behind the increasing demand for project management/ A. Compression of the product life c!cle B. +noledge eplosion C. "evelopment of third orld and closed economies "! More emphasis on the product and less on the customer %. Corporate donsi)ing ncreased customer attention has prompted the development of customi)ed products and services.

AACSB: Reflective Thinking Bloom's: Application Learning Objective: The )mportance of roject $anagement Level: $e%i&m

1,. hich of the folloing statements is true/ A. Project management is becoming a standard a! of doing business B. Project management is increasingl! contributing to achieving organi)ational strategies C. Project management is being used at a consistent percentage of a firm:s efforts "! Both A and B are true %. A5 B5 and C are all true Project management is no longer a special-need management. t is rapidl! becoming a standard a! of doing business. The future promises an increase in the importance and the role of projects in contributing to the strategic direction of o rgani)ations.

AACSB: Reflective Thinking Bloom's: Comprehension Learning Objective: The )mportance of roject $anagement Level: *iffic<

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12. Project management is ideall! suited for a business environment re;uiring all of the folloing ecept A. Accountabilit! B. &leibilit! C. nnovation ". $peed #!
AACSB: Anal#tic Bloom's: Comprehension Learning Objective: roject $anagement To%a# + An )ntegrate% Approach Level: $e%i&m

14. hich of the folloing is the number one characteristic that is loo'ed for in management candidates/ A. *verall intelligence B! or's ell ith others C. %perience ". Past successes %. 3ood references The phrase ?or's ell ith others? has long been a staple on grade school report cards no5 in the T orld5 it:s the o. 1 criterion for management candidates.D$ee
AACSB: Comm&nication Bloom's: Comprehension Learning Objective: roject $anagement To%a# + An )ntegrate% Approach Level: $e%i&m

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16. A common rule of thumb in the orld of high-tech product development is that a simonth project dela! can result in a loss of product revenue share of === percent. The aste on failed projects and cost overruns is estimated in the neighborhood of A. 10 B. (0 C! ,, ". 24 %. 40 A common rule of thumb in the orld of high-tech product development is that a si-month project dela! can result in a ,, percent loss in product revenue share.

AACSB: Anal#tic Bloom's: Comprehension Learning Objective: The )mportance of roject $anagement Level: $e%i&m

17. The aste on failed projects and cost overruns is estimated in the neighborhood of A. #nder >100 Million B! *ver >140 Billon C. #nder >10 Billion ". Beteen >90->100 Billion %. Beteen >1(4->1,4 Billion The need for elevating performance continues to challenge the project management profession. The aste on failed projects and cost overruns is estimated in the neighborhood of over >140 billionG

AACSB: Anal#tic Bloom's: no(le%ge Learning Objective: What is a roject! Level: "as#

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18. hich of the folloing is the first step in developing a set of strategies designed to best meet the needs of customers/ A. Mar'et
AACSB: Anal#tic Bloom's: no(le%ge Learning Objective: The )mportance of roject $anagement Level: "as#

19. ntegration of project management ith the organi)ation ta'es place ith the A. Master budget B. $trateg! plan C. Process of managing actual projects "! Both b and c are correct %. A5 B5 and C are all correct $ince projects are the modus operandi5 strategic alignment of projects is of major importance to conserving and effective use of organi)ation resources. $election criteria need to ensure each project is prioriti)ed and contributes to strategic goals.

AACSB: Anal#tic Bloom's: no(le%ge Learning Objective: roject $anagement To%a# + An )ntegrate% Approach Level: $e%i&m

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(0. To dimensions ithin the project management process are A! Technical and sociocultural B. Cost and time C. Planned and unepected ". %stablished and ne %. #ni;ue and reoccurring There are to dimensions ithin the actual eecution of projects Dsee &igure 1.,. The Technical and $ociocultural "imensions of the Project Management Process on page 14E.

AACSB: Anal#tic Bloom's: no(le%ge Learning Objective: roject $anagement To%a# + An )ntegrate% Approach Level: "as#

(1. hich of these is not part of the ?technical dimension? of project management/ A. B$ B. Budgets C! Problem solving ". $chedules %. $tatus reports $ee &igure 1.,. The Technical and $ociocultural "imensions of the Project Management Process on page 14.


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((. hich of these is not part of the ?sociocultural dimension? of project management/ A. egotiation B!

(,. Corporate donsi)ing has increased the trend toard A.

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(2. The importance of project management has increased due to A. The movement of manufacturing operations out of the #.$ B. Time to mar'et C. The movement toard flatter and leaner organi)ations ". Both a and b are true #! A5 B5 and C are all true *ne of the most significant driving forces behind the demand for project management is the shortening of the product life c!cle. n toda!:s flatter and leaner organi)ations5 here change is a constant5 project management is replacing middle management as a a! of ensuring that things get done. Corporate donsi)ing has also led to a change in the a! organi)ations approach projects. Companies outsource significant segments of project or'5 and project managers have to manage not onl! their on people but also their counterparts in different organi)ations.

AACSB: Anal#tic Bloom's: S#nthesis Learning Objective: The )mportance of roject $anagement Level: *iffic<

(4. hich of the folloing is not t!picall! the responsibilit! of a project manger/ A. Meeting budget re;uirements B. Meeting schedule re;uirements C. Meeting performance specifications ". Coordinates the actions of the team members #! All of these are t!pical responsibilities The! must ensure that appropriate trade-offs are made beteen the time5 cost5 and performance re;uirements of the project.

AACSB: Anal#tic Bloom's: no(le%ge Learning Objective: What is a roject! Level: "as#

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(6. A series of coordinated5 related5 multiple projects that c ontinue over etended time intended to achieve a goal is 'non as a A. $trateg! B! Program C. Campaign ". Crusade %. enture A program is a group of related projects designed to accomplish a common goal over an etended period of time.

AACSB: Anal#tic Bloom's: Comprehension Learning Objective: What is a roject! Level: "as#

(7. n hich of the folloing stages is it determined hat the project ill entail5 hen it ill be scheduled5 hom it ill benefit5 and hat the budget ill be/ A. Conceptuali)ing B. "efining C! Planning ". %ecuting %. "elivering The level of effort increases5 and plans are developed to determine hat the project ill entail5 hen it ill be scheduled5 hom it ill benefit5 hat ;ualit! level should be maintained5 and hat the budget ill be.


1-,0


(8. Competing in a global mar'et is influenced b! A.
AACSB: Anal#tic Bloom's: Comprehension Learning Objective: roject $anagement To%a# + An )ntegrate% Approach Level: "as#

(9. ntegration of all project processes and practices to improve Project Management is due to A! Centrali)ation B. %nvironmental anal!sis C. Customer %pectations ". Project management s!stem %. The organi)ation:s environment and culture Centrali)ation entails integration of all project processes and practices to improve project management.

AACSB: Anal#tic Bloom's: Application Learning Objective: roject $anagement To%a# + An )ntegrate% Approach Level: "as#

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,0. &rom 1992 to (009 the trend for projects late or over budget as A. $ignificantl! better B! $lightl! better C. About the same ". $lightl! orse %. $ignificantl! orse &ailed projects also declined from ,1 percent in 1992 to 18 percent in (002. Foever5 the CFA*$ $ummar! (009 report shos a small decrease in the numbers.

AACSB: Anal#tic Bloom's: "val&ation Learning Objective: What is a roject! Level: $e%i&m

Fill in the Blank Questions

,1. @i'e most organi)ational effort5 the major goal of a project is to ==========. satis$% a customer&s need @i'e most organi)ational effort5 the major goal of a project is to satisf! a customer:s need.

AACSB: Reflective Thinking Bloom's: Comprehension Learning Objective: What is a roject! Level: $e%i&m

,(. The initial stage in the Project @ife C!cle is the ========== stage. de$ining $pecifications of the project are defined project objectives are established teams are formed major responsibilities are assigned.

AACSB: Reflective Thinking Bloom's: Application Learning Objective: What is a roject! Level: "as#

1-,(


,,. The final stage in the Project @ife C!cle is the ========== stage. closure Closure includes three activities delivering the project product to the cu stomer5 redeplo!ing project resources5 and post-project revie.


,2. The ==========5 a professional organi)ation for project managers5 has gron from 9,5000 in (00( to more than (,05000 currentl!. PM' The Project Management nstitute DPME5 is a professional organi)ation for project managers.


,4. n the ========== stage of the Project @ife C!cle a major part of the project or'5 both ph!sical and mental5 ta'es place. e(ecuting A major portion of the project or' ta'es placeHboth ph!sical and mental.


1-,,


,6. n the ========= stage of the Project @ife C!cle hat ill be accomplished b! the project is determined along ith the project:s schedule and budget. planning The level of effort increases5 and plans are developed to determine hat the project ill entail5 hen it ill be scheduled5 hom it ill benefit5 hat ;ualit! level should be maintained5 and hat the budget ill be.


,7. A common rule of thumb in the orld of high-tech product development is that a simonth project dela! can result in a ========== percent loss in product revenue share. thirt%)three A common rule of thumb in the orld of high-tech product development is that a si-month project dela! can result in a ,, percent loss in product revenue share.


,8. n toda!:s high-tech industries the product life c!cle is averaging ========= !ears. 1 to * Toda! in high-tech industries the product life c!cle is averaging 1 to , !ears. *nl! ,0 !ears ago5 life c!cles of 10 to 14 !ears ere not uncommon.

AACSB: Reflective Thinking Bloom's: no(le%ge Learning Objective: The )mportance of roject $anagement Level: "as#

1-,2


,9. The advent of man! small projects has created the need for an organi)ation that can support ========== management. multiproject This climate has created a multiproject environment and a plethora of ne problems. $haring and prioriti)ing resources across a portfolio of projects is a major challenge for senior management.


20. ncreased competition has placed a premium on customer satisfaction and the development of ========== products and services. customi+ed Customers ant customi)ed products and services that cater to their specific needs.


21. n some organi)ations5 selection and management of projects often fail to support the broad-based ========= of the organi)ation. strategic plan Toda!5 projects are the modus operandi for implementing strateg!. Iet in some organi)ations5 selection and management of projects often fail to support the strategic plan of the organi)ation.


1-,4


2(. B$5 schedules5 and budgets are eamples of the ========= dimension of the project management process. technical $ee &igure 1.,. The Technical and $ociocultural "imensions of the Project Management Process on page 14.


2,. @eadership5 teamor'5 and negotiation are eamples of the ========= dimension of the project management process. sociocultural $ee &igure 1.,. The Technical and $ociocultural "imensions of the Project Management Process on page 14.


22. The ======== is a professional organi)ation for project management specialists. Project Management 'nstitute ,PM'The Project Management nstitute DPME5 is a professional organi)ation for project managers.


1-,6


24. *ne of the defining characteristics of a project is that it has a singular purpose5 i.e.5 an established ========. o.jectie Projects have a defined objectiveHhether it is constructing a 1(-stor! apartment comple b! Januar! 1 or releasing version (.0 of a specific softare pac'age as ;uic'l! as possible.


26. Because projects have a defined beginning and end5 the ======== is fre;uentl! used to manage the transition of a project from start to completion. Project i$e C%cle The project life c!cle t!picall! passes se;uentiall! through four stages defining5 p lanning5 eecuting5 and delivering.

AACSB: Anal#tic Bloom's: S#nthesis Learning Objective: What is a roject! Level: *iffic<

27. The development of schedules5 budgets5 and identif!ing ris's are common elements to the ======== stage of the project life c!cle. planning The level of effort increases5 and plans are developed to determine hat the project ill entail5 hen it ill be scheduled5 hom it ill benefit5 hat ;ualit! level should be maintained5 and hat the budget ill be.


1-,7


28. The establishment of project goals5 specifications5 and responsibilities usuall! occurs in the ======== stage of the project life c!cle. de$ining $pecifications of the project are defined project objectives are established teams are formed major responsibilities are assigned.


29. Training the customer5 reassigning staff5 and releasing resources occurs in the ======== stage of the project life c!cle. closure ncludes three activities delivering the project product to the customer5 redeplo!ing project resources5 and post-project revie. "eliver! of the project might include customer training and transferring documents.


40. Project managers are epected to ensure that appropriate trade-offs are made beteen the time5 cost5 and ========== re;uirements of the project. per$ormance Project managers are ultimatel! responsible for performance Dfre;uentl! ith too little authorit!E. The! must ensure that appropriate trade-offs are made beteen the time5 cost5 and performance re;uirements of the project.


1-,8


41. The groth in ======== has increased the compleit! of projects because projects t!picall! include the latest advances. ne knoledge The groth in ne 'noledge has increased the compleit! of projects because projects encompass the latest advances. Product compleit! has increased the need to integrate divergent technologies. Project management has emerged as an important discipline for achieving this tas'.

AACSB: Anal#tic Bloom's: no(le%ge Learning Objective: The )mportance of roject $anagement Level: $e%i&m

4(. A ========= is a series of coordinated5 related multiple projects that continue over etended time intended to achieve a goal. program A program is a group of related projects designed to accomplish a common goal over an etended period of time.


4,. n the ========== stage5 it determined hat the project ill entail5 he n it ill be scheduled5 hom it ill benefit5 and hat the budget ill be. planning The level of effort increases5 and plans are developed to determine hat the project ill entail5 hen it ill be scheduled5 hom it ill benefit5 hat ;ualit! level should be maintained5 and hat the budget ill be.


True / False Questions

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42. Because of the profitabilit! motive5 project management is nearl! ala!s limited to the private sector. FAS# Project management is not limited to the private sector. Project management is also a vehicle for doing good deeds and solving social problems.


44. Ten !ears ago major universities offered onl! one or to classes in project management5 primaril! for engineers. T2# Ten !ears ago major universities offered one or to classes in project management5 primaril! for engineers. Toda!5 most universities offer multiple sections of project management classes5 ith the core group of engineers being supplemented b! business students majoring in mar'eting5 management information s!stems DM$E.


46. The professional certification for project managers is a Project Management Professional DPMPE. T2# PM provides certification as a Project Management Professional DPMPEHsomeone ho has documented sufficient project eperience5 agreed to follo the PM code of professional conduct5 and demonstrated master! of the field of project management b! passing a comprehensive eamination. D$ee $napshot on Page 2E.


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47. Because of its fleibilit!5 project management is e;uall! useful in ongoing5 routine or' as ell as uni;ue5 one-time projects. FAS# A project is not routine5 repetitive or'G *rdinar! dail! or' t!picall! re;uires doing the same or similar or' over and over5 hile a project is done onl! once a ne product or service eists hen the project is completed.


48. *ne of the defining characteristics of project management is that the projects are not confined to a single department but involve several departments and professionals. T2# *ne of the major characteristics is the involvement of several departments and professionals.


49. *ne of the characteristics that separate project management from other endeavors of the organi)ation is that there are specific time5 cost5 and performance re;uirements. T2# Major characteristics are specific time5 cost5 and performance re;uirements.


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60. The singular purpose of a project is often lac'ing in dail! organi)ational life in hich or'ers perform repetitive operations each da!. T2# This singular purpose is often lac'ing in dail! organi)ational life in hich or'ers perform repetitive operations each da!.


61. $ince a construction compan! builds man! buildings the projects after the first building do not fit the definition of a project. FAS# All projects are nonroutine and has some uni;ue elements.

AACSB: Reflective Thinking Bloom's: Comprehension Level: $e%i&m

6(. The first stage in the Project @ife C!cle is the Concept stage. FAS# The first stage is defining.


1-2(


6,. A major portion of the project or'5 both ph!sical and mental5 ta'es place during the Production stage of the Project @ife C!cle. FAS# A major portion of the project or'5 both ph!sical and mental is done in the eecuting stage.


62. n practice5 the amount of or' accomplished in each stage of the Project @ife C!cle ill var! greatl! depending on the department or or' group. T2# n practice5 the project life c!cle is used b! some project groups to depict the timing of major tas's over the life of the project.


64. Because of the re;uirement for in-depth epertise5 project management is generall! restricted to specialists. FAS# #nli'e their functional counterparts5 project managers generall! possess onl! rudimentar! technical 'noledge.

AACSB: Reflective Thinking Bloom's: no(le%ge Learning Objective: What is a roject! Level: "as#

1-2,


66. *n the project team5 the Mar'eting manager is the primar!5 direct lin' ith the customer. FAS# Project Managers are t!picall! the direct lin' to the customer and must manage the tension beteen customer epectations and hat is feasible and reasonable.


67. *ne of the most significant driving forces behind the demand for project management is the ever increasing epansion of the product life c!cle. FAS# *ne of the most significant driving forces behind the demand for project management is the shortening of the product life c!cle.

AACSB: Reflective Thinking Bloom's: Application Learning Objective: The )mportance of roject $anagement Level: "as#

68. #nli'e their functional counterparts5 project managers generall! possess onl! rudimentar! technical 'noledge to ma'e trade-off decisions. T2# #nli'e their functional counterparts5 project managers generall! possess onl! rudimentar! technical 'noledge.

AACSB: Reflective Thinking Bloom's: no(le%ge Learning Objective: What is a roject! Level: $e%i&m

1-22


69. Because of the significant loss in potential product revenue5 ?time to mar'et? has become one of the most critical factors in developing ne products. T2# Time to mar'et for ne products ith short life c!cles has become increasingl! important.


70. A common rule of thumb in the orld of high-tech product development is that a simonth project dela! can result in a ,, percent loss in product revenue share. T2# A common rule of thumb in the orld of high-tech product development is that a si-month project dela! can result in a ,, percent loss in product revenue share. $peed5 therefore5 becomes a competitive advantage more and more organi)ations are rel!ing on crossfunctional project teams to get ne products and services to the mar'et as ;uic'l! as possible.


71. Project management integration necessitates combining all of the major dimensions of project management under one umbrella. T2# Project management integration necessitates combining all of the major d imensions of project management under one umbrella. %ach dimension is connected in one seamless5 integrated domain. ntegration means appl!ing a set of 'noledge5 s'ills5 tools5 and techni;ues to a collection of projects in order to move the organi)ation toard its strategic goals.

AACSB: Reflective Thinking Bloom's: Comprehension Learning Objective: roject $anagement To%a# + An )ntegrate% Approach Level: "as#

1-24


7(. "ue to corporate donsi)ing significant segments of project or' have been outsourced to other organi)ations. T2# Corporate donsi)ing has also led to a change in the a! organi)ations approach projects. Companies outsource significant segments of project or'5 and project managers have to manage not onl! their on people but also their counterparts in different organi)ations.


7,. $maller projects in larger organi)ations tend not to need project management s'ills. FAS# Man! small projects can eat up the people resources of a firm and represent hidden costs not measured in the accounting s!stem. *rgani)ations ith man! small projects going on concurrentl! face the most difficult project management problems.

AACSB: Reflective Thinking Bloom's: no(le%ge Learning Objective: The )mportance of roject $anagement Level: $e%i&m

1-26


72. n the current trends5 Project managers are t!picall! re;uired to manage man! diverse s!stems such as netor's5 bar charts5 job costing5 tas' forces5 partnering and schedule5 to manage projects. FAS# Project managers must shape a project culture that stimulates teamor' and high levels of personal motivation as ell as a capacit! to ;uic'l! identif! and resolve problems that threaten project or'. This dimension also involves managing the interface beteen the project and eternal environment. Project managers have to assuage and shape epectations of customers5 sustain the political support of top management5 negotiate ith their functional counterparts5 monitor subcontractors5 and so on. *verall5 the manager must build a cooperative social netor' among a divergent set of allies ith different standards5 commitments5 and perspectives.

AACSB: Reflective Thinking Bloom's: Comprehension Learning Objective: roject $anagement To%a# + An )ntegrate% Approach Level: "as#

74. Project management is usuall! restricted to specialists. FAS# #nli'e their functional counterparts5 project managers generall! possess onl! rudimentar! technical 'noledge.


76. Project management is becoming a standard a! of doing business. T2# Project management is no longer a special-need management. t is rapidl! becoming a standard a! of doing business.


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Chapter 01 - Modern Project Management Short Anser Questions

77. Compare and contrast the Product @ife C!cle and the Project @ife C!cle. Product @ife C!cle deals ith the time it ta'es to develop a product and the time it remains in the mar'etplace. The Project @ife C!cle is the stages that a ne product goes through hile being developed.

AACSB: Anal#tic Bloom's: Anal#sis Learning Objective: The )mportance of roject $anagement Level: $e%i&m

78. dentif! the five major characteristics of a project. see list on page 4 of !our tet


79. dentif! and briefl! describe the four stages of the Project @ife C!cle. see list on page 1-7


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80. ?Project managers perform the same functions as other managers.? Agree or "isagree and support !our decision. Man! of the same basic management functions are performed b! project managers hoever5 there are aspects of the project manager:s job that ma'e it uni;ue.


81. dentif! and briefl! describe the si factors that are increasing the demand for project management. 1. compression of the product life c!cle5 (. 'noledge eplosion5 ,. triple bottom line5 2. corporate donsi)ing5 4. increased customer focus5 6. small projects represent big problems

AACSB: Reflective Thinking Bloom's: Comprehension Learning Objective: The )mportance of roject $anagement Level: *iffic<

8(. hat is meant b! an ?ntegrated Project Management Process?/ All efforts are focused toard the strategic plan. Piece meal tools are no longer accepted.

AACSB: Anal#tic Bloom's: Comprehension Learning Objective: roject $anagement To%a# + An )ntegrate% Approach Level: *iffic<

1-29


8,. dentif! and briefl! discuss the to 'e! areas here project management need to be integrated ithin the organi)ation. 1. ith the $trategic Plan and (. ithin the process of managing actual projects


82. dentif! and briefl! discuss the to 'e! dimensions of managing actual projects. 1. Technical and (. $ociocultural


84. The success of individual projects is t!picall! measured b! performance compared to three constraints usuall! placed on all projects. dentif! and briefl! describe those three constraints. 1. time5 (. cost5 and ,. performance


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224818585 Project Management Chap 001

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