TEST BANK_Project Management: A Systems Approach to Planning, Scheduling & Controlling 12th Edition

CHAPTER 1: OVERVIEW (Difficulty: E = easy, M = medium, H = hard)

(E)

1.

In today’s market, which of the following industries appears to have a need for project management?

A. Aerospace and defense B. Construction C. Information systems *D. All industries have a need for project management

(M) 2.

Which of the following is not one of the PMBOKâ Guide’s five process groups? *A. Feasibility studies B. Planning C. Execution D. Closure

(E)

3.

Which of the following is normally not one of the traditional components of the triple constraint?

A. Within time B. Within cost C. Within performance (scope, technology or quality) *D. Accepted by the customer

(M) 4.

Which of the following is a potential benefit of using project management?

A. Maximization of continuous reporting B. No need for identification of functional responsibilities *C. Identification of time limits for scheduling D. No need for a project management methodology

(E)

5.

Which of the following functions of classical management is generally not performed by the project manager?

A. Planning B. Organizing *C. Staffing D. Controlling

(M) 6.

Which of the following three types of deliverables discussed in the book would be used to classify the final report that must be presented to the customer at the end of the project?

A. Hardware deliverables *B. Software deliverables C. Interim deliverables D. Validation deliverables

(E)

7.

Which of the following are not organizational stakeholders?

A. Executive officers B. Unions C. Employees *D. Customers

(E)

8.

Which of the following are not product/market stakeholders? *A. Creditors B. Customers C. Suppliers D. Governments

(E)

9.

Which of the following are not capital market stakeholders?

A. Banks *B. Unions C. Shareholders D. Creditors

(M) 10. Which of the following is directly controlled by the project manager?

A. Money B. Manpower C. Information/technology *D. None of the above (H) 11. Which of the following is reflective of the changes in project management according to Dr. Thamhain?

A. Moving from dynamic to linear processes

*B. Moving toward full utilization of information technology C. Moving away from the use of an enterprise-wide methodology D. Moving from effectiveness to efficiency (E)

12. Successful project management requires a good daily working relationship between project and line managers. *A. True B. False

(E)

13. Successful project management does not require that people understand how to report to multiple bosses.

A. True *B. False

(E)

14. The project manager’s role as an integrator of activities does not include integration of activities necessary to: A. Develop the plan B. Execute the plan C. Make changes to the plan *D. All of above are PM roles.

(M) 15. The PM’s role with regard to interface management does not include interfacing: A. Within the project team B. Between the project team and functional organizations C. Between the project team and senior management *D. Between senior management and various external stakeholders (H) 16. Which of the following is the role of the PM rather than the role of the functional manager? *A. What work will be done B. How the work will be done C. Who will do it D. Where it will be done

(E)

17. Which of the following problems affects the functional manager’s ability to staff and support a project during execution?

A. Limited availability of resources B. Predetermined deadlines C. Unscheduled changes to the project plan *D. All of the above

(H) 18. What type of project manager would have employees (i.e., team members) that report directly to the project manager full-time for the duration of the project?

A. Lightweight team leader B. Heavyweight team leader *C. Tiger team leader D. Leopard team leader (H) 19. When team members take direction from both the project and line managers, the type of project manager is usually a: A. Lightweight team leader *B. Heavyweight team leader C. Tiger team leader D. Leopard team leader (H) 20. On a project headed up by a lightweight project manager, employees have their performance reviews made by: *A. Line managers only B. Line managers with input from the project managers C. Concurrence jointly by project managers and line managers D. Project managers only (H) 21. Which of the following is normally not part of a team member’s role?

A. Accepting responsibility for a deliverable *B. Sharing information with the sponsor C. Sharing information with the team D. Completing the work at the earliest possible time.

(M) 22. In which life cycle phase do project sponsors become most actively involved in the project? *A. Initiation B. Execution C. Monitor and control D. Closure (M) 23. Which of the following is not part of the project sponsor’s role?

A. Conflict resolution B. Priority-setting *C. Selection of project team members D. Monitoring performance at a high level (M) 24. Project sponsorship almost always resides at the executive levels A. True *B. False (M) 25. Which of the following promises can project managers make to functional employees assigned to a project?

A. Promotions B. Overtime C. Future work assignments *D. None of the above (H) 26. Which of the following most likely represents a project champion rather than a project manager?

A. Manages people *B. Seeks perfection C. Willing to take risks D. Prefers to work in groups

CHAPTER 2: PROJECT MANAGEMENT GROWTH: CONCEPTS AND DEFINITIONS (Difficulty: E = easy, M = medium, H = hard)

(M) 1.

Typical cost overruns on government contracts in the early years of project management reached: A 20% B 50% C 100% *D 300%

(E)

2.

Which of the following techniques led to the acceptance of project management principles? *A. B. C. D.

(E)

3.

Ineffectiveness of over-the-fence management Total quality management Six Sigma The need for better management of smaller projects

The growth of project management came about more so from desire rather than necessity.

A. True *B. False

(M) 4.

Industries that have _____ tasks and operate in a _____ environment demonstrated the greatest need for project management.

A. B. *C. D.

(M) 5.

During the 1970s and 1980s, formal project management practices were put in place because the constraints were _____ and _____ boundaries had to be crossed.

A. B. *C. D.

(E)

6.

simple; dynamic simple; static complex; dynamic complex; static

loose; several loose; few tight; several tight; few

Project management restructuring allowed companies to manage projects that _____. *A. Could not be handled by the traditional organization B. Had undefined objectives

C. Did not require effective cost control D. Require little functional integration (H) 7.

Which of the following is not necessarily an obstacle to effective project management?

A. *B. C. D.

(M) 8.

Uncontrolled obstacles can result in: A. B. *C. D.

(E)

9.

Changes in technology Changes in project sponsorship Increased project complexity Unstable economy

Increased profits Reduction in manpower An inability to cope with changes in technology Easier establishment of objectives

Effective project management pushes decision making down in the organization *A. True B. False

(M) 10. According to the text, which of the following is not a life cycle phase for project management maturity?

A. *B. C. D.

Embryonic Phase Planning Phase Growth Phase Maturity Phase

(M) 11. Most people seem to believe that the most common driving force for maturity in project management is: *A. B. C. D.

Survival Executive understanding New Product development Customer expectations

(H) 12. If a company advertises on television that they consider themselves to be a solution provider to satisfy your business needs, then their driving force was most likely: A. *B. C. D.

Competitiveness Customer expectations Efficiency and effectiveness Executive understanding

(H) 13. Which of the following is not a present view of project management?

A. B. C. *D. (E)

14. Which of the following industry types has the greatest need for superior project management performance? *A. B. C. D.

(E)

Cost Time Technology requirements Quality requirements

16. Which category of projects would be most suited for a small project that stays in one functional unit and is headed up by the functional manager? *A. B. C. D.

(E)

Project-driven Hybrids Non-project-driven Pure functional type

15. The major difference between projects and programs is usually: A. *B. C. D.

(E)

Accomplishing more work in less time and with fewer people A reduction in power and authority struggles Improvements in quality Providing good products rather than business solutions

Individual Staff Special Matrixed

17. Which category of projects would involve a large number of functional units where the workers may be assigned either part-time or full-time?

A. B. C. *D.

Individual Staff Special Matrixed

(M) 18. Companies can become reasonably mature in project management by designing the right support systems. In general, how much time usually elapses after maturity before a company becomes excellent in project management execution?

A. B. *C. D.

1 year 2 years 5 years 10 years

(H) 19. The primary difference between formal versus informal execution of a project is the: A. B. C. *D. (E)

20. For informal project management to be effective, which of the following must exist among the project team?

A. B. C. *D.

(E)

Time constraint Budgetary considerations Need for a breakthrough in technology Amount of paperwork

Effective communications Cooperation Trust All of the above

21. All of the stakeholders involved in a project either directly or indirectly may have a different definition of project success. *A. True B. False

(E)

22. Which of the following is not a major benefit of using life cycle phases?

A. *B. C. D.

Providing structure to project management Easier task of selecting the project manager Standardizing planning, scheduling and control Structured decision making

(M) 23. The most difficult decision for a sponsor at the gate review meetings is to: A. B. C. *D.

Allow the project to continue without an increase in the budget Allow the project to continue with a budget increase Approval of scope changes Cancel the project

(H) 24. Which of the following is generally not one of the five processes that historically were integrated into an enterprise project management methodology? *A. B. C. D.

Manpower staffing Total quality management Scope change management Risk management

(M) 25. Historically, which functional organization provided the greatest resistance to project management implementation? *A. Sales B. Procurement

C. Information Systems/Technology D. Engineering

CHAPTER 3: ORGANIZATIONAL STRUCTURES (Difficulty: E = easy, M = medium, H = hard)

(H) 1.

According to Grinnell and Apple, organizational restructuring was needed because management was unhappy with technical skills though projects were being completed within time and cost.

A. True *B.False

(E)

2.

Which of the following is not one of the three critical terms to consider when looking at organizational workflow? *A. B. C. D.

(E)

3.

Accountability can be defined as: *A. B. C. D.

(E)

4.

5.

Classical Strong matrix Balanced matrix Weak matrix

In which organizational form is there quite often no customer focal point? *A. B. C. D.

6.

Authority plus responsibility Authority without responsibility Responsibility without authority Pure responsibility

In which of the following structures is budgeting and cost control easier to perform? *A. B. C. D.

(E)

Span of control Authority Responsibility Accountability

Traditional Projectized Strong matrix Weak matrix

In which organizational form is response to the customer’s needs the slowest? *A. B. C. D.

Traditional Projectized Strong matrix Weak matrix

(E)

7.

In which organizational form is it highly unlikely that project management would be a career path? *A. B. C. D.

(H) 8.

Traditional Projectized Strong matrix Weak matrix

In which organizational form does the project manager have the greatest authority over the assigned resources?

A. Traditional *B.Projectized C. Strong matrix D. Weak matrix

(M) 9.

In which organizational form are the formal and informal organizations well established? *A. B. C. D.

Traditional Strong matrix Balanced matrix Weak matrix

(H) 10. Which of the following is not one of the integration mechanisms considered when creating work integration positions?

A. Rules and procedures *B.Project manager’s rank and pay grade C. Planning processes D. Direct contact (M) 11. With departmental project management, the person assigned to head up the project is called a: A. Project head B. Project manager *C.Project leader D. Project supervisor (H) 12. In departmental project management, the person that ultimately ends up managing the project, assuming several departments are involved, is the: A. B. C. *D.

Project manager Project leader Department manager(s) Division manager above all of the departments

(M) 13. With the project expeditor organizational structure, the expeditor is usually brought on board: A. B. C. *D. (E)

At the beginning of the project At the end of the first life cycle phase When the project is 50% complete When a problem arises

14. Project expeditors generally have authority over the functional managers.

A. True *B. False

(M) 15. With a line-staff organizational structure, department managers will readily accept instructions from the project manager.

A. True *B.False (M) 16. In a line-staff organizational structure, the person heading up the project is called the: A. B. C. *D.

Project supervisor Project leader Project coordinator Project division leader

(M) 17. In line-staff project management, the ultimate authority on the project resides with the division manager. *A. True B. False (E)

18. Other than the traditional structure, which organizational form has strong communication channels? *A. B. C. D.

Projectized Strong matrix Balanced matrix Weak Matrix

(M) 19. Which of the following organizational forms provides the least career path opportunities for project personnel? *A. B. C. D.

Projectized Strong matrix Balanced matrix Weak Matrix

(E)

20. Which organizational structure generally retains team members long after they are needed? *A. B. C. D.

(E)

Projectized Strong matrix Balanced matrix Weak Matrix

21. Matrix structures allow for workers to be shared on multiple projects and at a lower than usual cost. *A. True B. False

(E)

22. In which organizational form do we usually have the best balance among the time, cost and performance constraints on a project?

A. B. C. *D.

Traditional Projectized Line-staff Matrix

(M) 23. In which organizational form do we usually have a sharing of authority and responsibility?

A. B. C. *D.

Traditional Projectized Line-staff Matrix

(M) 24. Before becoming a project manager within a matrix organization, training should be provided in all of the following except: A. Matrix operations *B.Wage and salary administration C. Problem-solving D. Role definitions (H) 25. In a strong matrix structure, employees take daily direction from: A. Project manager only B. Functional manager only *C.Both, but the project manager has greater influence D. Both, but the functional manager has greater influence

CHAPTER 4: ORGANIZING AND STAFFING THE PROJECT OFFICE AND TEAM (Difficulty: E = easy, M = medium, H = hard)

(E)

1.

Most people seem to believe that the number one behavioral issue in project management is multiple-boss reporting. *A. True B. False

(E)

2.

Which of the following is generally not considered as a personal attribute of a project manager, but perhaps should be?

A. Honesty and integrity B. Energy and toughness *C.Poor coping skills D. Decision-making skills

(E)

3.

Project manager selection is usually made by the: *A. Senior levels of management B. Customer’s selection process C. Line management based upon cooperation on past projects D. Voting by the team members

(E)

4.

Which of the following is a job-related characteristic that a PM should possess or may be expected to possess?

A. Necessity for feasibility studies B. Project’s priority and risks C. Requirement for complex technical expertise *D. All of the above

(E)

5.

The wrong people are often selected as project managers because of: A. A belief that project management maturity comes with age B. A belief that someone who knows the customer well will make the best project manager C. A belief that entrepreneurial skills are always necessary *D. All of the above

(M) 6.

It is usually easier to manage one large project on a full-time basis than to manage multiple small projects at the same time. *A. True B. False

(M) 7.

Which of the following is often regarded as the best way to train project managers? *A. On-the-job training B. Formal education C. Seminars D. Personal readings

(M) 8.

According to the text, the “next generation” project manager must exhibit skills in all of the following except: A. Integration skills B. Risk management skills *C.Wage and salary administration skills D. Knowledge of the business

(M) 9.

Which of the following is usually not a major concern for the PM during the organizational staffing process? *A. Union versus nonunion personnel B. Where the resources will come from C. Skill level of the resources D. Type of organizational structure for the project?

(H) 10. Probably the greatest risk to a project manager on a long-term project is to receive the best employees and then: A. Have them seek perfection rather than just meeting the requirements B. Find that your costs are escalating C. Being unable to motivate them *D. Losing them to other projects at an inopportune time (M) 11. In a weak matrix structure, teamwork is not vital for project success because the team members are under the control of their functional manager.

A. True *B.False (H) 12. Which people generally receive no visibility or credit for a job well done?

A. Project sponsors B. Project managers C. Project team members *D. Functional managers (M) 13. Strange as it may seem, project managers should encourage conflicts to take place during recruitment and staffing. *A. True B. False

(E)

14. Under which of the following situations can an employee be terminated from the project?

A. Failure to follow rules, policies, and procedures B. Failure to accept formal authority C. When professionalism is more important than company loyalty *D. All of the above

(M) 15. Which of the following is not usually an option for a PM dealing with an incompetent worker?

A. On-the-spot appraisals B. Reassignment to less critical activities *C.Removal from the company D. Removal from the project (M) 16. A typical project office (not to be confused with a project management office) responsible for the management of a large project includes the project manager and the: A. Project sponsor B. Project sponsor and assistant project managers *C.Assistant project managers D. Assistant project managers and functional managers (H) 17. During the past few years, which project management skill seems to have outpaced all other skills?

A. Technical skills *B.Business conceptual skills C. Behavioral skills D. Problem-solving skills (H) 18. Professionally trained people with advanced degrees often prefer: A. To work on project tasks alone *B.To work in groups with people devoted to their discipline C. To work in groups with people not devoted to their discipline D. Never to work on project teams (M) 19. Project team members often feel threatened by the possibility of the cancellation of the project. In which organizational form is this threat the greatest? *A. Projectized B. Strong matrix C. Balanced matrix D. Weak matrix

(M) 20. Some companies assign employees to a project management position as a lateral transfer move without a salary increase because: A. The project is short term in nature B. The project maybe canceled *C.The employee must demonstrate performance first D. The employee reports to a functional organization (M) 21. The person most qualified to assess the overall risk in a work package activity in a project is the: A. PM B. Sponsor C. Team member *D. Team member and/or line manager (H) 22. Once an employee is assigned to a project, the project manager has the authority to provide team members with work assignments above their pay grade so that they can get promoted.

A. True *B. False (E)

23. Who determines grade level of the employee needed to accomplish a task?

A. Project sponsor B. Project manager *C.Functional manager D. A consensus vote during the project’s kickoff meeting.

(H) 24. You have just been awarded a contract in which you told the customer that a certain employee would be assigned full time on the project. Once the project begins, you discover that the employee is splitting his time between two projects per the instructions of his functional manager. You should: A. Do nothing B. Determine the impact on the project and discuss it with the project sponsor *C.Determine the impact on the project and discuss it with the functional manager D. Determine the impact on the project and discuss it with the customer (H) 25. After a contract award, a customer requests that some of the senior workers in the functional areas be assigned to the project team. You priced out the project assuming the average worker would be assigned and furthermore assumed that the average worker could do the job effectively. You should discuss this first with: A. The average workers B. The senior workers *C.The project sponsor D. The functional manager

CHAPTER 5: MANAGEMENT FUNCTIONS (Difficulty: E = easy, M = medium, H = hard)

(M) 1.

Which one of the following is not one of the three steps of controlling?

A. Monitoring B. Evaluating *C.Authorizing D. Correcting

(E)

2.

According to Douglas McGregor, team members that require supervision, direction, and threat of punishment for noncompliance are called _____ employees. *A. Theory X B. Theory Y C. Theory Z D. Noncompliant

(E)

3.

William Ouchi’s approach that managers in Japanese companies have a better relationship with their subordinates falls under: A. Theory X B. Theory Y *C.Theory Z D. Noncompliant

(E)

4.

Which of Maslow’s levels would be a motivational force for newly hired employees? *A. Physiological B. Safety C. Social D. Self-esteem

(M) 5.

An employee who would turn down a promotion in order to remain as a project manager would most likely be at which level of Maslow’s hierarchy of needs?

A. Safety B. Social C. Esteem *D. Self-actualization

(M) 6.

Herzberg believed that the bottom three levels of Maslow’s hierarchy of needs are: *A. Hygiene factors B. Satisfiers C. Dissatisfiers

D. Esteem drivers (M) 7.

Authority comes from _____, whereas power comes from _____.

A. Above; above *B.Above, below C. Below; above D. Below, below

(E)

8.

The document that is prepared at the beginning of a project in order to clarify the roles and responsibilities of the team members is called a: A. Responsibility clarification table B. Responsibility identification table *C.Responsibility assignment matrix D. Work package assignment sheet

(E)

9.

Which of the following are factors to be considered when providing project managers with authority?

A. The size, nature, and business base of the company B. The length of the project C. The size and nature of the project *D. All of the above

(E)

10. Which of the following is the most common type of project authority?

A. De jure B. De facto *C.Project charter D. Implied

(H) 11. Which of the following type of authority would come from the project manager’s job description? *A. De jure B. De facto C. Project charter D. Implied (M) 12. If the project manager’s authority is not documented, then the project manager is expected to assume whatever authority he/she needs to get the job done. *A. True B. False

(E) 13. Which of the following people has the greatest influence on how much authority a project manager will possess on a given project?

A. The customer *B.The project sponsor C. The project manager’s line manager D. The project manager himself/herself (E)

14. Which of the following types of interpersonal influences comes from the recognition that the project manager is officially empowered to give orders? *A. Legitimate power B. Reward power C. Expert power D. Referent power

(M) 15. Which of the following types of interpersonal influences would be representative of workers that are attracted to a particular project?

A. Legitimate power B. Reward power C. Expert power *D. Referent power (E)

16. Which type of interpersonal influences would be represented by a project manager that has a command of technology?

A. Legitimate power B. Reward power *C.Expert power D. Referent power

(M) 17. Which of the following type of interpersonal influence has as its source the individual rather than the company?

A. Legitimate power B. Reward power C. Penalty power *D. Referent power (M) 18. Coercive power most often represents: A. Legitimate power B. Reward power *C.Penalty power D. Referent power

(H) 19. Laissez-faire leadership most likely represents: A. Telling B. Selling C. Participating *D. Delegating (H) 20. Democratic leadership most likely represents: A. Telling B. Selling *C.Participating D. Delegating (M) 21. The most difficult decision for a project manager is to say: A. OK! I’ll do it.

B. It’s my job.

C. Let the sponsor do it. *D. No, it’s not my job.

(E)

22. Waiting for people, incomplete work, and numerous telephone calls are referred to as: *A. Time robbers B. Time imbalances C. Inappropriate actions D. Cause and effect relations

(M) 23. Two common time management forms, as described in the book, are called: A. To-do pad and project scheduler B. Daily calendar log and project scheduler C. Responsibility assignment matrix and daily calendar log *D. To-do pad and daily calendar log (E)

24. Stress and burnout in project management are usually due to the project manager’s inability to implement effective time management practices. *A. True B. False

(M) 25. Project managers that refuse to delegate and have limited faith in the ability of the team create time management problems for: *A. Themselves B. The team C. The sponsor D. The client

CHAPTER 6: COMMUNICATIONS MANAGEMENT (Difficulty: E = easy, M = medium, H = hard)

(M) 1.

If six people are in a room are participating in a conversation, then there are _____ two-way channels of communications.

A. 9 B. 10 *C.15 D. 30

(M) 2.

Most project managers communicate ______________ and most line managers communicate ____________.

A. *B. C. D.

(M) 3.

laterally; vertically upward laterally; vertically downward vertically upward; vertically downward vertically downward; vertically upward

Project managers generally spend what percent of their time involved in some type of communications?

A. 25% B. 40% C. 60% *D. 90%

(M) 4.

Project managers would prefer to communicate in which of the following manners if given a choice?

A. B. *C. D.

(M) 5.

Formal and written Formal and oral Informal and oral Informal and written

A project manager that communicates honestly, fairly, and by the book is called a(n) _____ communicator.

A. B. *C. D.

conciliatory judicial ethical secretive

CHAPTER 7: CONFLICTS (Difficulty: E = easy, M = medium, H = hard)

(E)

1.

Project objectives must be clearly defined so that we know when the project is over. *A. True B. False

(E)

2.

In which life cycle phase do most conflicts over project objectives occur?

A. B. *C. D.

(M) 3.

Project closure Project monitoring and control Project initiation and planning Project execution

For a project internal to your company, the business objectives of the project are defined by: *A. The sponsor B. The project manager C. The project team D. Customers and the marketplace

(H) 4.

Which of the following conflicts has the most frequent occurrence for a project manager?

A. B. *C. D.

(E)

5.

Manpower Costs Time Trade-offs

Project managers should allow all conflicts to be resolved at the sponsor level A. True *B. False

(M) 6.

Which conflict, if it occurs, can have the most serious impact on the team’s performance A. B. *C. D.

(E)

7.

Schedules Cost Personality clashes Resource availability

Factors influencing project priorities can include: A. The technical risks

B. The nearness of the delivery date C. The expected profit or savings *D. All of the above (M) 8.

Which of the following conflict resolution modes would a project least likely accept if the conflict was with the project team?

A. B. *C. D.

(M) 9.

Confrontation Compromise Forcing Smoothing

Which of the following conflict resolution modes would a project manager prefer to use for a conflict with superiors?

A. *B. C. D.

Confrontation Compromise Forcing Smoothing

(M) 10. Emphasizing areas of agreement and deemphasizing areas of non-agreement represents which type of conflict resolution mode?

A. Confrontation B. Compromise C. Forcing *D. Smoothing

CHAPTER 8: SPECIAL TOPICS (Difficulty: E = easy, M = medium, H = hard)

(M) 1.

The most difficult part of creating job descriptions for project managers is figuring out how to differentiate the roles and responsibilities of various pay grades of project managers. *A. True B. False

(H) 2.

Which of the following is normally not included in a project manager’s job description? *A. Authority B. Responsibility C. Role D. Years of experience

(H) 3.

Which of the following is not a foundation for compensation practices?

A. *B. C. D.

(M) 4.

Job classification Overtime pay Merit increases Performance appraisal

Merit increases are difficult to implement because it may not be possible to attribute project success to a single individual. *A. True B. False

(M) 5.

Which of the following is the most difficult to determine and implement effectively?

A. *B. C. D.

(E)

6.

Individual incentives Project team incentives Organizational unit incentives Sponsorship incentives

Incentive systems for project personnel often fail to consider the impact on employees that do not have the opportunity to work on projects. *A. True B. False

(H) 7.

Which type of award usually has greater staying power and lasts longer?

A. Small cash awards B. Large cash awards

*C. Noncash awards D. All of above (M) 8.

On mega projects, all of the following are critical for success except: *A. Quality back-end planning B. Communications at all levels C. Rules and procedures clearly defined D. Training in project management

(E)

9.

With which of the following external partnerships would a supplier be least likely to prepare a formal proposal in response to an RFP? A. External supplier B. Approved supplier C. Preferred supplier *D. Strategic partnership supplier

(H) 10. What are the two critical components with integrated project teams?

A. *B. C. D.

Authority and responsibility Authority and technical knowledge Technical knowledge and rank Rank and authority

CHAPTER 9: THE VARIABLES FOR SUCCESS (Difficulty: E = easy, M = medium, H = hard)

(M) 1.

Lowering the bid price of a project, possibly below your own cost of doing the work, is called a _____. *A. Buy-in B. Over-optimistic response C. Unrealistic proposal D. Unrealistic cost estimate

(E)

2.

Which of the following are causes of project failure?

A. Selecting the wrong person as the project manager B. Having nonsupportive upper management C. Misused management techniques *D. All of the above

(H) 3.

Which of the following is not one of the four major variables for project management effectiveness?

A. *B. C. D.

(E)

4.

Credibility Communications Priority Visibility

Which of the following is not what most companies do with a best practice?

A. Share it internally only B. Share it internally but only to a selected few C. Advertize it to your customers *D. Create a best practices library on the internet for all to see

(H) 5.

The hardest part in creating a best practices library is: A. Evaluation B. Classification C. Storage *D. Knowledge transfer

CHAPTER 10: WORKING WITH EXECUTIVES (Difficulty: E = easy, M = medium, H = hard)

(M) 1.

In mature organizations, project and line managers negotiate for deliverables rather than people. *A. True B. False

(H) 2.

In mature organizations, project leadership is centered around the team rather than the project manager. *A. True B. False

(E)

3.

As project management matures in an organization, sponsorship can be pushed down to middle-management or below. *A. True B. False

(E)

4.

In mature organizations, priority shifting is avoided. *A. True B. False

(M) 5.

In mature organizations, project managers can disagree with the decisions made by the sponsor. *A. True B. False

(H) 6.

As projects become more complex and more challenging, project sponsorship is being replaced with committee governance. *A. True B. False

CHAPTER 11: PLANNING (Difficulty: E = easy, M = medium, H = hard)

(E)

1.

Generally speaking, the lowest level in the WBS is referred to as: A. Level 3 B. Level 4 C. Level 5 *D. The work package

(E)

2.

Scope creep is generally the result of: A. *B. C. D.

(M) 3.

Having too many levels in the WBS A poorly defined SOW Too much detail in the specifications Having the wrong people assigned to the project

Which of the following is not a benefit of having a highly detailed work breakdown structure? *A. Lower status reporting costs B. Less likely that anything will be omitted C. Better estimating D. Better activity tracking

(M) 4.

All work packages in a project must be at the same level of the WBS. A. True *B. False

(M) 5.

Generally speaking, work packages are assigned to one functional unit. *A. True B. False

(H) 6.

If the customer’s SOW contains words such as nearly or approximately, then: A. B. *C. D.

(M) 7.

The project manager uses his discretion in determining the meaning The sponsor uses his discretion in determining the meaning The customer uses his discretion in determining the meaning Scope creep is unlikely

Which of the following documents is not defined in the text as one of the four critical documents for preliminary planning?

A. SOW B. WBS

C. Specifications *D. Network Diagrams (H) 8.

Project managers often rewrite the customer’s SOW into a document that the project team can easily understand. The document is called: A. *B. C. D.

(E)

9.

The redefined SOW The scope statement The deliverable statement The finalized SOW statement

Which of the following would be the first item to be discussed in the initial kickoff meeting for a project? *A. Understanding of the requirements B. Understanding of the plan C. Understanding of the schedule D. Understanding of the budget

(M) 10. Which of the following is often overlooked when planning and budgeting a project?

A. *B. C. D.

Customer’s milestones Cost and size of contractual documentation Number of meetings with the customer Timing of the deliverables

(M) 11. Which of the following is normally not addressed in a change control board meeting to approve a scope change?

A. *B. C. D.

Cost of the change Which functional unit will perform the change Impact on the schedule Value-added opportunity for the client

(H) 12. Which of the following is usually not validated by using the WBS? A. B. *C. D. (E)

The schedule The Risks The quality of the deliverables The budget

13. A project manager desires a work breakdown structure that goes through six levels of detail. Level 3 through level 6 would most likely be prepared by the: A. B. *C. D.

Project sponsor Project manager Subject matter experts Customer

(M) 14. Plans such as the cost plan, schedule plan and quality plan are referred to as: A. Integration plans B. Specialized plans C. Functional plans *D. Subsidiary plans (H) 15. Which of the following is usually preferred for the placement of the project manager with regard to the WBS? The project manager’s salary should be: A. Divided up at each work package B. Divided up at each WBS element not lower than level 3 of the WBS C. Divided up at each level 2 WBS element *D. There should be only one WBS element covering the project manager’s salary.

(M) 16. What is the project sponsor’s responsibility with regard to the WBS preparation?

A. Make sure all work packages are well defined.

B. Make sure that the management levels of the WBS are correct.

C. Make sure that the technical levels of the WBS are correct. *D. The sponsor should not be involved in WBS development.

(H) 17. A customer external to your company requests that a certain element of work be subdivided to lower-level work packages and that cost/schedule information be reported at the lower levels. You should: A. Grant the customer’s request but bill the customer for the changes to the WBS. B. Simply grant the customer’s request.

C. Deny the request since the WBS is finalized and cannot change. *D. Check with the line managers first to see if cost and schedule can be reported at this level.

(M) 18. Consider the WBS shown below: 1.00.00 1.1.0 1.1.1 1.1.2 1.2.0 1.2.1 1.2.2 If the total program costs $100,000 and 1.2.1 and 1.2.2 are each $20K, then the cost of 1.1.0 is: A. $20K B. $40K *C. $60K D. Cannot be determined (H) 19. A contractor accepts a project, after go-ahead, and the contractor discovers that the statement of work was ill-defined and pushed through scope changes that significantly alienate the customer. The customer pays for the scope changes and then files a law suit against the contractor to recover the cost of the scope changes. Neglecting the type of contract, the court would most likely rule that: A. The contractor is at fault for accepting a contract with ill-defined requirements and not discovering this initially.

B. The contractor is at fault for a misinterpretation of the wording in the statement of work. *C. The customer is at fault for providing a statement of work that could be misinterpreted.

D. The customer cannot recover the cost associated with the scope changes once payment has been made.

(M) 20. The person with the ultimate responsibility to make sure that all work required by the SOW and only the work required by the SOW is performed is the: A. Customer *B. Project manager C. Appropriate subject matter expert for that work package D. Project sponsor

(M) 21. A customer is unhappy with the performance thus far on a project. The customer states that, unless scope changes are made at the contractor’s expense, the contractor would be removed from the customer’s preferred bidders list for future contracts. The contractor would most likely: A. Refuse to perform the scope changes. *B. Perform the scope changes at the contractor’s expense.

C. Perform the scope changes and then submit an invoice for payment to the customer.

D. Take no action and hope that the customer will forget about the scope change request.

(H) 22. During the execution of a project, the customer asks you to perform additional tests, which the customer will pay for. Unfortunately, there are no resources available to perform the additional tests. The project manager should: A. Refuse to perform the tests.

B. Determine when the tests can be done and then inform the customer C. Tell the customer that company policy is that the additional tests must be treated as an enhancement project and funded separately after this project is over. *D. Let the sponsor make the decision on what to do.

(M) 23. Project sponsors within the contractor’s company have the authority to change the scope of an external customer’s project as they see fit.

A. True *B. False (M) 24. During competitive bidding, a contractor can submit inclusions and exclusions to the customer’s preliminary statement of work. *A. True B. False (H) 25. During an interface meeting with your customer, the two of you have different interpretations of the raw data. If the customer’s interpretation is correct, then the direction of the project should change. However, the customer states that they need more time to determine if their interpretation is correct. As the PM, you should: *A. Continue on with your existing baseline until the customer confirms that the direction must change.

B. Change the direction of the project according to the customer’s interpretation of the results and continue on.

C. Stop working on the project until you both agree on the direction D. Cancel the project and then, after an agreement is reached, submit a new proposal and price to restart the project.

CHAPTER 12: NETWORK SCHEDULING TECHNIQUES (Difficulty: E = easy, M = medium, H = hard)

(E)

1.

Which of the following scheduling techniques is most appropriate today for managing a project?

A. BAR charts B. Milestone charts C. PERT charts *D. Precedence charts

(E)

2.

Which of the following scheduling techniques is most appropriate today for reporting project status to a customer during an interchange meeting? *A. BAR charts B. Milestone charts C. PERT charts D. Precedence charts

(M) 3.

The major disadvantage of using a bar chart on large projects is that bar charts: A. *B. C. D.

(E)

4.

Which of the following is not one of the four network diagramming techniques?

A. B. *C. D.

(H) 5.

PERT GERT VERT PDM

Which of the following activity-on-arrow network diagramming methods does not require three estimates for durations?

A. B. *C. D.

(M) 6.

Cannot identify critical paths Do not show dependencies between activities Cannot identify milestones Cannot show slack

PERT GERT ADM PDM

Which of the following network diagramming methods do not use dummy activities?

A. PERT B. GERT

Deleted: ?

C. ADM *D. PDM (M) 7.

Which of the following network diagramming methods allows for branching and looping?

A. *B. C. D.

(M) 8.

PERT GERT ADM PDM

Which of the following is an activity-on-node network diagramming method?

A. PERT B. GERT C. ADM *D. PDM

(H) 9.

Which of the following cannot be determined after performing a forward pass and a backward pass on a network diagram?

A. B. *C. D.

The critical path The end date of the project The effort in each activity The slack in each activity

(H) 10. Negative slack is the result of: *A. The forward pass going beyond the customer’s end date and the backward pass is measured from the customer’s end date B. Non-critical-path activity using up all of their slack C. The critical path can be completed before the customer’s desired end date D. All of the above (M) 11. Activities with zero time durations are called: A. B. *C. D.

Low-slack activities No-slack activities Dummy activities Special activities

(H) 12. Which of the following is false concerning the critical path in a network?

A. B. *C. D.

It is the longest path in the network.

It is the shortest amount of time in which the project can be completed.

It is the path that contains the greatest number of activities.

It is the path where each activity has zero slack.

(M) 13. The critical path is the path in the network with the greatest amount of risk.

A. True *B. False (E)

14. If the optimistic time for an activity is 6 weeks, the pessimistic time is 24 weeks and the most likely time is 12 weeks, then the expected duration is: A. *B. C. D.

(E)

7 weeks 13 weeks 22 weeks 24 weeks

15. Which of the following schedule compression techniques usually requires adding more resources to each work package that is being compressed?

A. *B. C. D.

Overtime Crashing Outsourcing Descoping

(M) 16. In which of the following schedule compression techniques is the cost of rework usually the greatest?

A. B. *C. D.

Overtime Crashing Performing series work in parallel Outsourcing

(M) 17. Which of the following schedule compression techniques is often the lowest risk and with the added benefit of lowering the cost?

A. Crashing *B.Descoping C. Outsourcing D. Overtime (E)

18. Smoothing out project resources from period to period is called *A. Resource leveling B. Resource allocation or resource limited planning C. Better effort planning D. Slack utilization planning

(E)

19. Laying out a network diagram when you know before-hand the size of the available resource pool is called: A. Resource leveling

*B. Resource allocation or resource limited planning C. Better effort planning D. Slack utilization planning (E)

20. An activity in a network has the following characteristics: ES = 5, EF = 9, and LF = 12. LS = _____.

A. *B. C. D.

(E)

5 8 9 12

21. An activity in a network has the following characteristics: ES = 10, EF = 18, and LS = 12. The duration of the activity is: A. *B. C. D.

6 8 10 Cannot be determined

(M) 22. If the slack in a 12-week activity is 6 weeks and ES = 4, then LF = _____.

A. 4 B. 10 C. 16 *D. 22 (M) 23. The measurement of lag is made within an activity whereas slack is measured between activities.

A. True *B. False (M) 24. A PERT network reflects what type of precedence diagram?

A. B. *C. D. (E)

Start-to-start Start-to-finish Finish-to-start Finish-to-finish

25. What are the maximum number of inputs and outputs that can exist in a node in the precedence diagramming method?

A. 3 each B. 5 each C. 10 each *D. It is unlimited

Deleted: 12

CHAPTER 13: PRICING AND ESTIMATING (Difficulty: E = easy, M = medium, H = hard)

(E)

1.

Which of the following is a cost-estimating relationship?

A. Mathematical equations based upon regression analysis B. Cost-quantity relationships C. Cost-cost relationships *D. All of the above

(E)

2.

Which of the following standard project estimating techniques is usually accomplished in weeks?

A. *B. C. D.

(M) 3.

Parametric Analogy Engineering Grassroots

Pricing out the construction cost of a home by a cost per square foot would be representative of a ____________ estimate. *A. Parametric B. Analogy C. Engineering D. Grassroots

(M) 4.

When a functional manager tells you that your project is 10% more difficult than the standard project, the functional manager is providing you with a _____ estimate.

A. *B. C. D.

(E)

5.

Parametric Analogy Engineering Grassroots

Which of the following projects would most likely have reasonably good estimating techniques? *A. Construction B. R & D C. Software development D. New product development

(M) 6.

Material provided in a proposal to justify one’s estimates are called: A. Supporting pricing *B. Back-up data

C. Risk justification D. Proprietary pricing (E)

7.

An employee earning $40/hour works in a department where the overhead is 125%. A billable or charge back hour to this department would be: A. B. *C. D.

(E)

8.

$40 $50 $90 $100

Which of the following is an estimating pitfall?

A. Misinterpretation of the statement of work B. Inaccurate work breakdown structure C. Failure to use correct estimating techniques. *D. All of the above

(H) 9.

Which of the following components of life cycle costing incurs the largest cost?

A. B. *C. D.

(E)

R&D Production Operational and support Disposal

10. Which of the following is generally not part of capital budgeting? *A. Life cycle cost estimating B. Net present value C. Internal rate of return D. Discounted cash flow

CHAPTER 14: COST CONTROL (Difficulty: E = easy, M = medium, H = hard)

(E)

1.

If the schedule variance is positive and the cost variance is negative, the project’s status is: A. Over budget and behind schedule B. Over budget and ahead of schedule C. Under budget and behind schedule *D. Under budget and ahead of schedule

(E)

2.

The EVMS term that represents the value of work actually accomplished is: A. *B. C. D.

(M) 3.

Which of the following terms is used to determine the trend on cost?

A. B. *C. D.

(M) 4.

Over budget and behind schedule Over budget and ahead of schedule Under budget and behind schedule Under budget and ahead of schedule

If SPI = 1.05 and CPI = 0.96, the project’s trend is: A. *B. C. D.

(H) 6.

CV EAC CPI AC

If PV = $100, EV = $200, and AC = $300, the status is: A. *B. C. D.

(H) 5.

PV EV AC BAC

Over budget and behind schedule Over budget and ahead of schedule Under budget and behind schedule Under budget and ahead of schedule

Consider the following: BAC = $1000, VAC = <$200>, and AC = $400. Therefore, EV = _____. *A. $480 B. $600 C. $800 D. Cannot be determined

(H) 7.

Consider the following: BAC = $1000, VAC = <$200>, and AC = $400. Therefore, SV = _____.

A. $480 B. $600 C. $800 *D. Cannot be determined

(M) 8.

The difference between the cost baseline and the contracted cost is the: A. *B. C. D.

(M) 9.

Cost at completion Management reserve Profit Cost of scope changes

The best source of revenue for a customer-requested scope change is: *A. A customer-funded contract amendment B. Management reserve C. Undistributed budget D. Profits

(E)

10. The form that is used to establish charge numbers is the: A. *B. C. D.

Responsibility assignment matrix Work authorization form Work package Cost account change notice

(M) 11. The weakness in all of earned value measurement is the way we calculate: A. *B. C. D. (E)

12. The best method to price out a work package is to use the: A. B. *C. D.

(E)

PV EV AC EAC

Average departmental labor rate Average pay grade labor rate Actual salary of the workers assuming they are known Statistical data from the Payroll Department

13. Which of the following escalation factors are usually paid for with funds from the management reserve?

A. Salaries

B. Overhead rates C. Material costs *D. All of the above (M) 14. A common cause for a favorable SV but unfavorable CV might be: A. *B. C. D.

Using lower salaried workers Using overtime Using less expensive raw materials All of the above

(M) 15. A common cause for a favorable CV but unfavorable SV might be: A. *B. C. D.

Too many workers on the project Too few workers on the project Crashing the project Use of overtime

(M) 16. An S-Curve plots: *A. Cumulative cost as a function of time B. Schedule variance as a function of time C. Work package schedules as a function of time D. None of the above (H) 17. If PV > AC, then we are spending less than the plan called for, but we do not know if that’s good or bad without having a value for EV. *A. True B. False (M) 18. Earned value measurement systems must be capable of: A. Measuring resources consumed B. Measuring status and accomplishment C. Provide a basis for diagnosis and replanning *D. All of the above (M) 19. The person or group with greatest ability to influence cost at project initiation is: *A. The customer/owner B. The project manager C. The project team D. The users

(M) 20. At project initiation: A. Few cost reduction opportunities exist, and the cost of each change is large B. Few cost reduction opportunities exist, and the cost of each change is low C. Many cost reduction opportunities exist, and the cost of each change is high *D. Many cost reduction opportunities exist, and the cost of each change is low (M) 21. The establishment of all of the charge numbers for a project is called the: A. *B. C. D.

Work package codes Code of accounts Summation of charge numbers Cost accounts

(H) 22. Work that does not lend itself to subdivision into discrete scheduled increments of work, such as project support, is called: A. *B. C. D.

Measurable effort Level of effort Discrete estimates Work package effort

(H) 23. Variance envelopes are usually established because: A. *B. C. D.

All cost variances must be accounted for and explained Not all cost variances must be explained even though they exist All schedule variances must be explained All cost overruns require sponsor authorization

(H) 24. The 50-50 rule is a technique used to determine: *A. EV B. EAC C. CPI D. VAC (M) 25. In which type of project report would we most likely find EAC and ETC? A. B. *C. D.

Performance Status Forecast Exception

CHAPTER 15: METRICS (E) 1.

The project manager must consider metrics for passive stakeholders as well as active stakeholders, but perhaps not the same number of metrics. *A. True B. False

(E) 2.

Good metrics can serve as a replacement for effective stakeholder communications.

A. True *B. False

(H) 3.

Changes in stakeholders may cause the creation of new metrics regardless how far the project has proceeded. *A. True B. False

(M) 4.

Metrics are design to: A. Keep stakeholders informed B. Portray a clear and truthful representation of the project C. Provide information for informed decision making *D. All of the above

(E) 5.

In the early years of project management, how many core metrics were looked at one each project other than time and cost? *A. None B. 2 C. 3 D. 5

(M) 6.

The benefits of an effective EVMS include: A. Accurate display of project status B. Reasonable determination of the project’s health C. A basis for course corrections *D. All of the above

(H) 7.

In the early years, we discovered that: A. Measurement of time and cost was usually quite accurate

B. The project was a success if we met the time and cost constraints *C. Unfavorable metrics did not often provide us with sufficient information for corrective action D. Customers and stakeholders quickly understood the meaning of these metrics (M) 8.

Which of the following drove the need for better metrics?

A. The desire for paperless project management B. The growth in more complex projects C. New definitions of project success and failure *D. All of the above

(H) 9.

Which of the following is true?

A. Metrics should not be allowed to change as the project progresses.

B. Good metrics can provide precise predictions of performance rather than a close estimate. *C. Metrics do not provide any real value unless they can be measured.

D. All of above are true.

(M) 10. Even with good metrics, metric management can fail because of: A. Poor stakeholder governance B. Overly optimistic planning C. Slow decision-making processes *D. All of the above (H) 11. Which of the following is not a requirement for a metric?

A. A need or purpose *B. A metric owner C. A Means of measurement D. A reporting structure (M) 12. Which of the following stakeholder actions can lead to metric management failure?

A. Mistrust among the stakeholders B. Failing to understanding the metrics C. Failing to agree on how to measure the metrics *D. All of the above

(H) 13. Which of the following is not one of the critical questions that need to be addressed concerning metric measurements?

A. What should be measured B. When should it be measured C. Who will perform the measurement *D. When and how will the information be reported (H) 14. Which of the following is a characteristic of a project metric rather than a business or financial metric?

A. Used for decades or longer *B. Reported in real time C. Used for information flow and changes to the strategy D. Targeted for executive levels of management (E) 15. Promising stakeholders certain metrics without knowing how to perform the measurement is an example of a metric trap. *A. True B. False (E) 16. Metrics focus on the future whereas KPIs focus more so on the here and now.

A. True *B. False (E) 17. Some metrics and KPIs may not be measured until well into the future because the measurement is based upon the beneficial use of the deliverable. *A. True B. False (M) 18. Which of the following is true?

A. KPIs used in one industry may not be transferable to another industry.

B. KPIs used in one company may not be transferable to another company even if they are both I the same industry.

C. KPIs in one part of a business may not be transferable to another part of the business within the same company. *D. All of the above (M) 19. Stakeholders should be asked to buy into the KPI measurement techniques. *A. True B. False

(M) 20. Which of the following is not one of the six characteristics of a KPI? A. Predicts the present and the future *B. Can be displayed with more than one icon C. Relevant to the success and failure of the project D. Few in number (H) 21. Which of the following is not one of the questions that KPIs traditionally address?

A. Where are we today? *B. What are the current risks?

C. Where will we end up?

D. How can we get there in a cost-effective manner?

(H) 22. Which of the following can influence the selection of KPIs? A. Size and number of dashboards B. Type of audience and audience requirements C. Audience project management maturity level *D. All of the above (E) 23. It is important that the number of metrics be limited so that everyone is focused on the same KPIs and understands them. *A. True B. False (M) 24. Which of the following is true?

A. We can always get the customers and stakeholders to agree on the KPIs. B. KPI data is always available through an EPM system.

C. Once the KPI is selected, the cost, complexity, and timing to obtain the data are generally low. *D. The risks of changes to the information system and data collection techniques must be considered.

(M) 25. On the same project, some stakeholders can view a measurement as merely a metric, whereas other stakeholders may view it as a KPI. *A. True B. False

(H) 26. KPIs provide no real value if they cannot be measured with any “reasonable” degree of accuracy. *A. True B. False (E) 27. The true health of a project can be determined from a single metric or KPI. A. True *B. False (M) 28. Stakeholders view value as: *A. Something worth paying for B. Low cost C. Quality D. Longevity (E) 29. Intellectual capital valuation, the balanced scorecard, and VMM are examples of value modeling. *A. True B. False (E) 30. The three broad categories of metrics include traditional metrics, KPIs and _______.

*A. Value-based or value reflective metrics B. Quality metrics C. Service metrics D. Operational metrics (M) 31. Which of the following are generally considered as an easy item to measure? *A. Market share B. Time-to-market C. Safety D. Reliability (M) 32. Which of the following are generally considered as a hard item to measure?

A. Cash flow B. Return on investment *C. Customer satisfaction D. All of the above

(E) 33. We often consider certain items as hard to measure if the definition of value is based upon subjective-type attributes of the person doing the measurement. *A. True B. False (M) 34. Which of the following is a valid reason for value trade-offs?

A. Changes in the enterprise environmental factors A. Changes in the assumptions B. Availability of highly skilled labor *C. All of the above (E) 35. If a value metric is established without time and cost being considered as value attributes, then time and cost may still be tracked as traditional metrics. *A. True B. False

CHAPTER 16: TRADE-OFF ANALYSIS IN A PROJECT ENVIRONMENT (Difficulty: E = easy, M = medium, H = hard)

(E)

1.

Which of the following is normally not one of the three parameters considered during trade-offs?

A. Time B. Cost C. Performance *D. Financial risks

(E)

2.

Which of the following generally gets reduced during trade-offs?

A. Time B. Cost *C.Performance D. Financial risks

(E)

3.

Which of the following is a human error / failure that can lead to trade-offs?

A. Impossible schedule commitments B. Poor control of design changes C. Failure to receive approvals in a timely manner *D. All of the above

(e)

4.

The type of contract can influence the order of trade-offs. *A. True B. False

(E)

5.

Cost and schedule overruns are generally caused by scope changes *A. True B. False

CHAPTER 17: RISK MANAGEMENT (Difficulty: E = easy, M = medium, H = hard)

(E)

1.

The two primary components of a risk are: A. The event and the probability *B.The probability and the impact C. The impact and the event D. The impact and the amount at stake

(M) 2.

Risk constitutes a lack of knowledge ____________________. *A. of future events B. about the environment C. about the estimates D. about the customer’s requirements

(E)

3.

Which of the following is not included in risk management?

A. Risk planning B. Risk Assessment C. Risk handling *D. All of above are part of risk management.

(E)

4.

Proper risk management is reactive rather than proactive.

A. True *B. False

(E)

5.

If there’s a 40% chance of making $1 million and a 60% chance of losing $600,000, then the expected monetary outcome is.

A. <$400,000> *B.<$40,000> C. $360,000 D. <$360,000>

(M) 6.

The process that identifies, evaluates, selects and implements one or more strategies to set risk at an acceptable level is: A. B. *C. D.

Risk planning Risk assessment Risk handling Risk monitoring and control

(E)

7.

An objective source for risk identification is: A. Lessons learned files B. Program documentation evaluations C. Current performance data *D. All of the above

(M) 8.

Brainstorming, assumption analysis and WBS decomposition are techniques used for: *A. Risk identification B. Risk assessment C. Risk monitoring and control D. Risk handling

(M) 9.

Monte Carlo simulation is a technique used as part of: A. *B. C. D.

Risk identification Risk assessment Risk monitoring and control Risk handling

(M) 10. The probability-impact matrix is a technique used as part of: A. *B. C. D.

Risk identification Risk assessment Risk monitoring and control Risk handling

(M) 11. Nominal work groups and the Delphi Techniques are used as part of which risk management process? *A. Risk identification B. Risk assessment C. Risk monitoring and control D. Risk handling (M) 12. An investor has a 25% chance of making $1000 if the stock market is good, and a 50% chance of making $600 if the market is average. The investor expects to lose $800 if the market is bad. The expected monetary value is: A. *B. C. D.

$250 $350 <$250> <$400>

(E)

13. Which of the following is not considered to be an insurable risk?

A. Direct property damage B. Indirect consequential loss C. Legal liability *D. Inflation

(M) 14. In which life cycle phase does the project manager have the greatest financial risk? (i.e. amount at state) A. Initiation/approval B. Planning C. Execution *D. Closure (M) 15. In which life cycle phase is the total project risk generally the least?

A. Initiation/Approval B. Planning C. Execution *D. Closure (M) 16. Assigning high, medium or low to a potential risk is part of: A. B. *C. D.

Risk identification Quantitative risk assessment Qualitative risk assessment Risk response

(M) 17. A technique that uses a series of probability distributions and then transforms them into various risks is called: A. *B. C. D. (E)

Probability estimating Monte Carlo simulation Estimating simulation Black box analysis

18. Which risk handling mode is a project manager using if he/she throws out one of three designs for a new product?

A. *B. C. D.

Acceptance/assumption Avoidance Control/mitigation Transfer

(M) 19. If a project manager believes in a reactive rather than proactive risk management approach, he/she is using: *A. Acceptance/assumption B. Avoidance C. Control/mitigation D. Transfer (M) 20. If a project manager believes in a proactive rather than reactive risk management approach, he / she is using: A. B. *C. D.

Acceptance/assumption Avoidance Control/mitigation Transfer

(M) 21. If a project manager awards a firm-fixed-price contract to a supplier, he/she is using: A. Acceptance/assumption B. Avoidance C. Control/mitigation *D. Transfer (M) 22. Risk mitigation or control does not eliminate a risk but seeks to reduce it without altering the requirements. *A. True B. False (M) 23. During risk monitoring and control, we focus first on the risk’s trigger rather than the risk itself. *A. True B. False (E)

24. Earned value measurement is a technique suitable for risk monitoring and control. *A. True B. False

(E)

25. Risk and knowledge are inversely related. *A. True B. False

CHAPTER 18: LEARNING CURVES (Difficulty: E = easy, M = medium, H = hard)

(M) 1.

Learning curve theory is based upon: A. The time required to perform a task increases as the task is repeated B. The amount of improvement increases as more units are produced *C. The rate of improvement has sufficient consistency to allow its use as a predictive tool D. All of the above

(M) 2.

If a product is being manufactured on an 80% learning curve, and the time for building the 100th unit is 50 hours, then the time required to build the 200th unit should be: A. B. *C. D.

(M) 3.

If the 400th unit is 60 hours, and the 800th unit is 45 hours, then the learning curve is _____ percent.

A. B. *C. D.

(E)

4.

90 hours 50 hours 40 hours None of the above

90 80 75 60

Which of the following is a valid source of experience for learning curve?

A. Labor efficiency B. Product redesign C. Worker incentives *D. All of the above

(E)

5.

Which of the following would be a typical limitation to a learning curve?

A. The learning curve does not continue forever B. Learning gained on one product cannot be transferred to another product.

C. Cost data may not be available to construct a learning curve *D. All of the above

CHAPTER 19: CONTRACT MANAGEMENT (Difficulty: E = easy, M = medium, H = hard)

(E)

1.

Bidder conferences are used to: *A. Answer questions about the project prior to submittal of proposals B. Answer questions about the project after contract award C. Debrief the bidder on their performance after completion of the contract D. Solicit pricing information from the bidders on proposed scope changes

(M) 2.

During contract negotiations, the goal of the buyer is to: A. *B. C. D.

(M) 3.

Get the seller to accept the greatest risk Get the highest quality result for the lowest price Get the seller to agree to scope changes at no cost to the buyer Try to get the least amount of work done at the lowest price

During contract negotiations, the goal of the seller is to: A. Get the buyer to accept the greatest amount of risk B. Get the largest possible profit margin regardless of the risk C. Get the largest possible price for the contract *D. Negotiate a contract where the profit margin is commensurate with the risk the contractor is expected to incur

(E)

4.

Which of the following contract types has the greatest risk with the buyer?

A. *B. C. D.

(M) 5.

Which of the following contract types has the greatest risk with the seller?

A. B. *C. D.

(M) 6.

Cost sharing Cost-plus-incentive-fee Firm-fixed-price Fixed-price-incentive-fee

Cost sharing Cost-plus-incentive-fee Firm-fixed-price Fixed-price-incentive-fee

_____ -source contracting is when multiple suppliers exist but only one is selected to receive the contract.

A. Preferred B. Sole *C. Single

D. Surety (M) 7.

_____ source contracting is when there exists only one supplier in the marketplace to satisfy the requirements of the contract.

A. *B. C. D.

(E)

8.

Preferred Sole Single Surety

Companies that give part of a procurement contract to multiple suppliers do so to: A. Promote and maintain competition B. Reduce reliance on dust one supplier C. Minimize procurement risks *D. All of the above

(E)

9.

Which of the following is not one of the three types of specifications discussed in the text?

A. *B. C. D.

Design specifications Material specifications Performance specifications Functional specifications

(M) 10. For long-term projects, such as weapon systems projects, contracted for by the Department of Defense, the type of contract can change from life cycle phase to life cycle phase. *A. True B. False (M) 11. Which of the following is generally not part of “Conducting the Procurements”? *A. Perform a make-or-buy analysis B. Confirm qualified sources C. Review past performance of sources D. Produce a solicitation package (E)

12. The cost of renting a piece of equipment is $200 per day and the leasing cost is $5000 plus $100 per day. The breakeven cost between renting and leasing occurs at _____ days.

A. *B. C. D.

30 50 100 200

(E)

13. Which of the following is generally not included in a solicitation package?

A. *B. C. D.

(E)

Listing of qualified vendors Past bidding history of qualified vendors How changes will be managed Supplier payment plan

14. Which of the following would be included in a scoring model for evaluating bidders?

A. Overall bid price B. Financial strength (ability to stay in business) C. Intellectual property rights *D. All of the above

(M) 15. In which of the following would the price of a possible contract not be included? *A. Request for information (RFI) B. Request for quotation (RFQ) C. Request for proposal (RFP) D. Invitation for bids (IFB) (M) 16. “Hygiene factors” refers to: A. B. *C. D.

How a contractor should respond to an RFP The type of proposal expected by the seller How and where contract negotiations will take place How many bidder conferences will be held

(H) 17. A covenant providing restrictions on certain proprietary knowledge is called a: A. *B. C. D.

Noncompete clause Nondisclosure clause Nonconformance clause Penalty clause

(H) 18. Failure to exercise one’s activity in such a manner that a reasonable person would do in a similar situation is: *A. Negligence B. Liquidated damages C. Breach of contract D. Privity of contract (H) 19. An intentional relinquishment of a legal right is a(n): A. Infringement B. Breach of contract

*C. Waiver D. Termination liability (H) 20. The type of contract where all of the seller’s costs are reimbursed and the seller will also receive a percentage of the profit pool based upon how well the buyer likes the end result is a ______________________ contract.

A. *B. C. D.

Cost-sharing Cost-plus-award-fee Cost-plus-fixed-fee Cost-plus-incentive-fee

(H) 21. Which type of cost-plus contract provides the seller with a guaranteed dollar-value profit rather than as a percentage?

A. B. *C. D.

Cost-sharing Cost-plus-award-fee Cost-plus-fixed-fee Cost-plus-incentive-fee

(H) 22. Which type of contract has a sharing ratio and a ceiling on the profit?

A. *B. C. D.

Fixed-price Cost-plus-incentive-fee Cost-plus-fixed-fee Cost-sharing

(H) 23. Which type of contract has a point of total assumption?

A. *B C. D.

Cost-plus-incentive-fee Fixed-price-incentive-fee Firm-fixed-price Cost-plus-award-fee

(M) 24. Which of the following is part of the responsibility of a contract administrator?

A. Inspections and audits B. Performance reporting (documenting seller’s performance) C. Approval of waivers *D. All of the above (M) 25. Billing the cost of repairs against a financially closed out project is called _________. *A. Back charging B. Refinancing C. Order of precedence D. Arbitration

CHAPTER 20: QUALITY MANAGEMENT (Difficulty: E = easy, M = medium, H = hard)

(E)

1.

Customers are now demanding: *A. Higher performance requirements B. Higher contractor profit margins C. Slower product development D. All of the above

(H) 2.

The balance between quality and cost is called: *A. Salability B. Produceability C. Operability D. Availability

(E)

3.

Quality is defined by the: A. Project manager B. Project team C. Project sponsor *D. Customer

(M) 4.

In which project life cycle phase does quality begin? *A. Initiation/planning B. Execution C. Monitoring & control D. Closure

(E)

5.

The plan-do-check-act cycle is attributed to: *A. Deming B. Juran C. Crosby D. Taguchi

(E)

6.

Which of the following quality gurus focused on the four absolutes of quality?

A. B. *C. D.

Deming Juran Crosby Taguchi

(E)

7.

Which of the following quality gurus developed an approach for determining the cost of quality?

A. *B. C. D.

(M) 8.

Deming Juran Crosby Taguchi

Crosby believed that the cost of quality was the cost of conformance to quality.

A. True *B. False

(E)

9.

Design of experiments is attributed to: A. Deming B. Juran C. Crosby *D. Taguchi

(M) 10. A document that states the principles of quality is a quality _____. *A. Policy B. Procedure C. Plan D. All of the above (M) 11. The collective term for the formal quality activities and processes is called: A. *B. C. D.

Quality control Quality assurance Quality policies Quality visions

(M) 12. The collective term for the activities and techniques within the overall process is called: *A. Quality control B. Quality assurance C. Quality policies D. Quality visions (M) 13. Which of the following is not one of the four categories of the cost of quality?

A. Prevention *B. Identification C. Internal failures

D. External failures (M) 14. Dr. Juran’s cost of quality model suggests that complete elimination of all defects may not be cost-effective. *A. True B. False (M) 15. The cause and effect chart is used to _____.

A. *B. C. D.

Identify a problem Determine its cause Prioritize a solution Decide upon a course of action

(M) 16. A Pareto diagram is used to identify and prioritize quality problems. *A. True B. False (H) 17. The primary use of control charts is to: *A. Prevent defects B. Detect defects C. Reject defects D. All of the above (E)

18. If the upper and lower control limits of a process are set at plus or minus three sigma, then what percent of the units produced are expected to satisfy the customer’s requirements?

A. B. *C. D.

68% 95% 99.73% Impossible to determine

(M) 19. The fact that random variation is always present in any process is called: *A. Common cause variability B. Special cause variability C. Assignable cause variability D. Control limit variability 20.

Which of the following is not generally a special cause variability?

A. A point outside of the control limit *B. A value of sigma greater than 0.32.

C. Hugging the control limit

D. The application of the rule of 7 (E)

21. Acceptance sampling is a statistical process for evaluating a portion of lot for the purpose of: A. Measuring the weight of each sample B. Measuring the length and width of each sample C. Measuring the volume of each sample *D. Acceptance or rejection of the entire lot

(H) 22. The person ultimately responsible for the quality of the deliverable is the: *A. Project manager B. Project team C. Project sponsor D. Customer (H) 23. The alternative to 3 sigma is: A. B. *C. D.

4 sigma 5 sigma 6 sigma All are possible

(M) 24. Which quality guru was heavily involved with quality control charts? *A. Deming B. Juran C. Crosby D. Taguchi (M) 25. One of the primary reasons for the failure of quality circles is because management refuses to listen to the quality improvement ideas of subordinates. *A. True B. False