The Main 5 chapters P.M/The Main 5 chapters P.M/The Main 5 chapters P.M, Exams of Engineering

Download The Main 5 chapters P.M/The Main 5 chapters P.M/The Main 5 chapters P.M and more Exams Engineering in PDF only on Docsity! The Main 5 chapters P.M MULTIPLE CHOICE Ch 1 1. A 2001 report showed that the United States spends on projects every year, and the world as a whole spends nearly $10 trillion on projects of all kinds. a. $2.3 million b. $230 million c. d. $2.3 billion $2.3 trillion ANS: D PTS: 1 REF: 2 2. Many organizations claim that using project management . a. lowers costs c. lengthens development time b. reduces internal coordination d. diminishes customer relations ANS: A PTS: 1 REF: 3 3. The project usually provides the direction and funding for the project. a. planner c. sponsor b. coordinator d. auditor ANS: C PTS: 1 REF: 5 4. If it is crucial to meet time and cost goals, the must be flexible. a. schedule b. scope c. d. time-frame cost ANS: B PTS: 1 REF: 7 5. Some experts believe that quality considerations, including customer satisfaction, must be in setting the scope, time, and cost goals of a project. a. supplementary b. tangential c. d. inherent subsidiary ANS: C PTS: 1 REF: 7 6. Key elements of the project management framework include the project stakeholders, project management , project management tools and techniques, project success, and contribution of a portfolio of projects to the success of the entire enterprise. a. domain c. vision b. scope d. knowledge areas ANS: D PTS: 1 REF: 7 7. In a home construction project, the project would be the potential new homeowners. a. sponsors b. managers c. d. contractors engineers ANS: A PTS: 1 REF: 8 8. The four core knowledge areas of project management include project scope, time, cost, and management. a. affordable b. centralized c. d. quality bottom- up ANS: C PTS: 1 REF: 9 The Main 5 chapters P.M 9. Project management involves working with all appropriate stakeholders to define, gain written agreement for, and manage all the work required to complete the project successfully. a. time c. risk b. communications d. scope ANS: D PTS: 1 REF: 9 10. Project management, the ninth knowledge area, is an overarching function that affects and is affected by all of the other knowledge areas. a. human resource c. integration b. procurement d. quality ANS: C PTS: 1 REF: 10 11. Some popular -management tools and techniques include Gantt charts, project network diagrams, and critical-path analysis. a. quality c. cost b. time d. scope ANS: B PTS: 1 REF: 10 12. Project may be defined as a test of whether a project has met scope, time, and cost goals. a. depth c. success b. clarity d. vision ANS: C PTS: 1 REF: 12 13. Project work with the project sponsors, the project team, and the other people involved in a project to meet project goals. a. organizers c. handlers b. designers d. managers ANS: D PTS: 1 REF: 13 14. About of the world’s gross domestic product is spent on projects. a. one- quarter b. one-third c. d. one-half three-quarters ANS: A PTS: 1 REF: 13 15. Two important concepts that help projects meet enterprise goals are the use of programs and project management. a. waste b. portfolio c. d. means promotion ANS: B PTS: 1 REF: 13 16. Given a program for building one hundred residential single family homes in a particular neighborhood, each home is a separate for a specific homeowner. a. project b. program c. d. sponsorship scope ANS: A PTS: 1 REF: 14 The Main 5 chapters P.M ANS: D PTS: 1 REF: 39 2. In the four-stage planning process for selecting projects, is the last step. a. project planning c. business area analysis b. resource allocation d. strategic planning ANS: B PTS: 1 REF: 41 3. Projects should first and foremost address business . a. portfolios c. needs b. ventures d. practices ANS: C PTS: 1 REF: 43 4. Projects that address competitive are much more likely to be successful because they will be important to the organization’s competitive position. a. value c. tactics b. products d. strategy ANS: D PTS: 1 REF: 43 5. One method for selecting projects based on broad organizational needs is to first determine whether they meet three important criteria: need, , and will. a. ambition c. funding b. practicality d. vision ANS: C PTS: 1 REF: 44 6. Three primary methods for determining the projected financial value of projects include net present value analysis, return on investment, andanalysis. a. growth c. environmental impact b. payback d. efficiency ANS: B PTS: 1 REF: 44 7. An organization should consider only projects with a NPV if financial value is a key criterion for project selection. a. positive c. zero b. negative d. well-defined ANS: A PTS: 1 REF: 44 8. A positive NPV means the return from a project exceeds the cost of capital—the return available by investing the capital elsewhere. a. fixed c. alternative b. variable d. opportunity ANS: D PTS: 1 REF: 44 9. According to the value of money, a dollar today is worth more than a dollar tomorrow. a. financial b. time c. d. economic discretionary ANS: B PTS: 1 REF: 45 The Main 5 chapters P.M 10. You calculate cash by subtracting costs from benefits, or expenses from income. a. flow c. budgets b. statements d. structure ANS: A PTS: 1 REF: 45 11. Project managers must be sure to check with their organization to find out its guidelines for when discounting starts, what discount rate to use, and whatthe organization prefers. a. charts c. format b. technique d. results ANS: C PTS: 1 REF: 46 12. A rate is the rate used in discounting future cash flows. a. prime b. markup c. d. cash flow discount ANS: D PTS: 1 REF: 47 13. Which of the following formulas is used by Excel to calculate NPV? a. =npv() c. =npv(discount rate, range of cash flows) b. =npv(range of cash flows) d. =npv(discount rate) ANS: C PTS: 1 REF: 47 14. is the result of subtracting the project costs from the benefits and then dividing by the costs. a. Return on investment c. NPV b. Internal Return Rate d. The payback period ANS: A PTS: 1 REF: 48 15. Given discounted benefits of $516,000 and discounted costs of $243,200, your ROI is %. a. 10 c. 112 b. 89 d. 212 ANS: C PTS: 1 REF: 48 16. period is the amount of time it will take to recoup—in the form of net cash inflows—the total dollars invested in a project. a. Return b. Payback c. d. Accrual Residual ANS: B PTS: 1 REF: 49 17. Payback occurs in the year when the cumulative benefits minus costs reach . a. ($1400) c. $0 b. ($100) d. $100 ANS: C PTS: 1 REF: 49 18. A(n) scoring model is a tool that provides a systematic process for selecting projects based on many criteria. a. weighted c. variable The Main 5 chapters P.M b. biased d. opportunity ANS: A PTS: 1 REF: 50 19. After assigning weights for the criteria and scores for each project, you calculate a weighted score for each project by multiplying the weight for each criterion by its score and the resulting values. a. multiplying c. dividing b. adding d. subtracting ANS: B PTS: 1 REF: 51 20. If you create the weighted scoring model in a spreadsheet, you can enter the data, create and copy formulas, and perform a “ ” analysis. a. scenario b. query c. d. what-if hypotheti cal ANS: C PTS: 1 REF: 51 21. You can establish weights by assigning . a. results c. scores b. values d. points ANS: D PTS: 1 REF: 52 22. are new requirements imposed by government, management, or some external influence. a. Directives c. Opportunities b. Problems d. Thresholds ANS: A PTS: 1 REF: 54 23. After deciding which projects to pursue, organizations need to decide if it is advantageous to manage several projects together as part of a(n) . a. aggregate c. cluster b. program d. group ANS: B PTS: 1 REF: 54 24. The goal of portfolio management is clear: to help maximize business value to ensure enterprise success. a. investment c. project b. interest d. program ANS: C PTS: 1 REF: 56 25. should be formed and continuously updated to help the organization as a whole make better strategic decisions. a. Monitors c. Projects b. Portfolios d. Programs ANS: B PTS: 1 REF: 57 26. An IT project in the category could help transform the business. a. growth c. venture b. assessment d. discretionary The Main 5 chapters P.M a. low c. top b. middle d. junior ANS: C PTS: 1 REF: 77 13. In the earliest stages of the Just-In-Time Training project, which task is completed first? a. The project is approved through a formal project selection process. b. The project manager produces a business case. c. The project manager holds a kickoff meeting with key team members. d. The project manager produces a stakeholder analysis. ANS: A PTS: 1 REF: 79 14. After a project is approved, senior managers should meet to determine the , time, and cost constraints for the project. a. range b. scope c. d. vision boundary ANS: B PTS: 1 REF: 79 15. For a large training project, there is often a(n) project done first before investing in a larger project. a. simulated c. preparatory b. advance d. study ANS: D PTS: 1 REF: 80 16. It often makes sense to break large projects down into two or more smaller . a. projects c. portfolios b. programs d. enterprises ANS: A PTS: 1 REF: 80 17. One of the main tasks normally involved in project initiation is to identify and understand project . a. shareholders b. stakeholders c. d. critics analysts ANS: B PTS: 1 REF: 82 18. Because the purpose of project management is to meet project requirements and satisfy stakeholders, it is critical that project managers take adequate time to identify, understand, and manage relationships with all project . a. sales c. purchasing b. engineering d. stakeholders ANS: D PTS: 1 REF: 82 19. A stakeholder provides information on key stakeholders to help manage relationships with them. a. study b. charter c. d. analysis guide ANS: C PTS: 1 REF: 83 20. It is helpful to start preparing a stakeholder analysis during initiation and adding information to it during the process. The Main 5 chapters P.M a. planning c. implementation b. updating d. ending ANS: A PTS: 1 REF: 83 21. In many cases, only and a few other team members should be involved in preparing the stakeholder analysis. a. customers c. stakeholders b. support staff d. project managers ANS: D PTS: 1 REF: 83 22. Which of the following information is typically included in a business case? a. Competitor Opinions c. Business Objective b. Personal Background Checks d. Stakeholder Analysis ANS: C PTS: 1 REF: 85 23. In Phase I of the Just-In-Time Project, Kristin estimated that the project would have a percent discounted return on investment and payback in the second year after implementing the new training program. a. 10 c. 37 b. 27 d. 45 ANS: B PTS: 1 REF: 85 24. Global Construction believed they could reduce training costs and improve productivity by successfully implementing a project to provide training on key topics. a. just-in-time c. iterative b. feedback d. phase ANS: A PTS: 1 REF: 85 25. Some organizations initiate projects using a simple letter of , whereas others use much longer documents or formal contracts. a. concord c. understanding b. agreement d. recognition ANS: B PTS: 1 REF: 89 26. A crucial part of the project charter is the section, where key project stakeholders sign the document to acknowledge their agreement on the need for the project. a. membership c. sign-off b. revision d. acknowledgement ANS: C PTS: 1 REF: 89 27. Typically included in the project charter, the section describes how the project objectives will be met, provides a list of important assumptions, and often gives references to related documents. a. Roles and Responsibilities c. Budget Information b. Comment d. Approach ANS: D PTS: 1 REF: 89 The Main 5 chapters P.M 28. Because many projects fail due to unclear requirements and expectations, starting with a project makes sense. a. charter c. vision statement b. contract d. compact ANS: A PTS: 1 REF: 91 29. It is good practice to document meeting minutes, focusing on key decisions and items. a. miscellaneous b. undisclosed c. d. unresolved action ANS: D PTS: 1 REF: 93 30. It is helpful to create a scope statement during project initiation so that the entire project team can start important discussions and work related to the project scope. a. tentative b. provisional c. d. preliminary categorical ANS: C PTS: 1 REF: 94 MULTIPLE CHOICE CH 4 1. The main purpose of project planning is to guide project . a. initiation c. review b. execution d. evaluation ANS: B PTS: 1 REF: 106 2. Planning includes tasks related to each of the project management knowledge areas. a. four b. five c. d. nine sixteen ANS: C PTS: 1 REF: 107 3. The PMBOK® Guide lists over documents that project teams can produce as part of project planning. a. 50 c. 100 b. 75 d. 125 ANS: A PTS: 1 REF: 107 4. Project management involves coordinating all the project management knowledge areas throughout a project’s life span. a. union b. synthesis c. d. unification integration ANS: D PTS: 1 R E F : 108 5. Project management facilitate communication among stakeholders and provide a baseline for progress measurement and project control. a. charters c. contracts b. plans d. compacts The Main 5 chapters P.M 22. dependencies are inherent in the nature of the work being performed on a project. a. Embedded b. Absolute c. d. Mandatory Compulsory ANS: C PTS: 1 REF: 131 23. dependencies involve relationships between project and nonproject activities. a. Internal c. Ancillary b. External d. Miscellaneous ANS: B PTS: 1 REF: 131 24. In the context of a network diagram, a is simply the starting and ending point of an activity. a. cell c. source b. vertex d. node ANS: D PTS: 1 REF: 132 25. In an AOA network diagram, occur when two or more activities follow a single node. a. drives b. flares c. d. bursts runs ANS: C PTS: 1 REF: 132 26. In an AOA network diagram, a(n) occurs when two or more nodes precede a single node. a. merge c. union b. join d. intersection ANS: A PTS: 1 REF: 132 27. includes the actual amount of time spent working on an activity plus elapsed time. a. Extension c. Period b. Duration d. Length ANS: B PTS: 1 REF: 136 28. A three-point estimate is an estimate that includes a(n) , most likely, and pessimistic estimate, such as three weeks, four weeks, and five weeks, respectively. a. optimistic c. remote b. unusual d. conditional ANS: A PTS: 1 REF: 136 29. Duration estimates are provided as a number, such as four weeks; as a range, such as three to five weeks; or as a three-point estimate. a. continuous c. fractional b. random d. discrete ANS: D PTS: 1 REF: 136 30. What is the PERT weighted average based on an optimistic estimate of six days, a most likely estimate of eight days, and a pessimistic time of twelve days? a. six c. eleven b. eight d. twelve The Main 5 chapters P.M ANS: B PTS: 1 REF: 137 31. development uses the results of all the preceding project time management processes to determine the start and end dates of project activities and of the entire project. a. Task b. Schedule c. d. Work Package Activity ANS: B PTS: 1 REF: 138 32. A(n) path for a project is the series of activities that determine the earliest time by which the project can be completed. a. integral b. incidental c. d. critical vital ANS: C PTS: 1 REF: 139 33. Slack or is the amount of time an activity may be delayed without delaying a succeeding activity or the project finish date. a. leeway b. float c. d. redundancy space ANS: B PTS: 1 REF: 139 34. is a technique for making cost and schedule trade-offs to obtain the greatest amount of schedule compression for the least incremental cost. a. Crashing b. Deflating c. d. Compacting Minimizing ANS: A PTS: 1 REF: 142 35. The main disadvantage of is that it can end up lengthening the project schedule, because starting some tasks too soon often increases project risk and results in rework. a. reviewing b. crashing c. d. extending fast tracking ANS: D PTS: 1 REF: 142 36. Project management includes the processes required to ensure that a project team completes a project within an approved budget. a. control b. delivery c. d. cost outlays ANS: C PTS: 1 REF: 147 37. Cost involves allocating the overall cost estimate to individual tasks over time to establish a baseline for measuring performance. a. estimating b. account c. d. allowance budgeting ANS: D PTS: 1 REF: 147 38. estimates, also called top-down estimates, use the actual cost of a previous, similar project as the basis for estimating the cost of the current project. The Main 5 chapters P.M a. Homologous c. Sequential b. Analogous d. Parallel ANS: B PTS: 1 REF: 147 39. estimates involve estimating individual activities and summing them to get a project total. a. Bottom-up c. Ad hoc b. Provisional d. Temporary ANS: A PTS: 1 REF: 148 40. A cost baseline is a(n) budget that project managers use to measure and monitor cost performance. a. incidental b. basic c. d. time-phased incremental ANS: C PTS: 1 REF: 151 MULTIPLE CHOICE CH 5 1. Project management ensures that the project will satisfy the stated or implied needs for which it was undertaken. a. integration b. quality c. d. portfolio performance ANS: B PTS: 1 REF: 163 2. to requirements means that the project’s processes and products meet written specifications. a. Voluntary adherence c. Conformance b. Management d. Fidelity ANS: C PTS: 1 REF: 163 3. If a project’s stakeholders are not satisfied with the quality of the project management or the resulting products or services, the project team will need to adjust , time, and cost to satisfy stakeholder needs and expectations. a. range b. breadth c. d. vision scope ANS: D PTS: 1 REF: 164 4. Examples of common used by organizations include failure rates of products produced, availability of goods and services, and customer satisfaction ratings. a. metrics b. analytics c. d. requirements guidelines ANS: A PTS: 1 REF: 166 5. Two important metrics related to the Just-In-Time Training project include the and course evaluation ratings. a. rate of attrition c. overall attendance b. survey response rate d. quantity of lesson modules ANS: B PTS: 1 REF: 167 The Main 5 chapters P.M d. The root cause of the risk event ANS: D PTS: 1 REF: 182 21. You can help identify the root cause of problems by creating a cause-and-effect or diagram. a. fishbone b. event c. d. results deterministic ANS: A PTS: 1 REF: 182 22. are indicators or symptoms of actual risk events. a. Signals c. Triggers b. Flags d. Monitors ANS: C PTS: 1 REF: 183 23. contracts reduce the risk of incurring higher costs than expected. a. Variable-price c. Oral b. Bid d. Fixed-price ANS: D PTS: 1 REF: 183 24. Project management includes acquiring or procuring goods and services for a project from outside the organization. a. logistics c. acquisition b. procurement d. supply ANS: B PTS: 1 REF: 186 25. As the business world continues to become more competitive and , more and more projects include procurement. a. global c. local b. provincial d. regulated ANS: A PTS: 1 REF: 186 26. Which of the following is a key output of project procurement management planning? a. quality metrics c. contract statements of work b. quality checklists d. project Web site ANS: C PTS: 1 REF: 186 27. You would use a(n) -or-buy analysis to decide whether to purchase or lease items for a particular project. a. retain b. lease c. d. acquire inspect ANS: B PTS: 1 REF: 187 28. Suppose that the purchase price for a piece of equipment is $12,000, with operational costs of $400 per day. If the same equipment can be leased for $800 per day (inclusive of operational costs), after how many days will the lease cost equal the purchase cost? a. 10 c. 30 b. 15 d. 60 The Main 5 chapters P.M ANS: C PTS: 1 REF: 187 29. Which of the following topics could you expect to find in a procurement management plan? a. methodology for risk management b. guidelines on types of contracts to be used in different situations c. budget and schedule estimates for risk-related activities d. risk categories ANS: B PTS: 1 REF: 190 30. Three broad categories of contracts are fixed price, or lump sum; ; and time and material. a. cost intensive b. cost averse c. d. cost reducing cost reimbursable ANS: D PTS: 1 REF: 190 31. A contract has the least amount of risk for the buyer. a. firm-fixed price c. soft-fixed-price b. fixed-price incentive d. contingent-fixed ANS: A PTS: 1 REF: 191 32. The costs of providing a work space for project workers, office furniture, electricity, and a cafeteria are costs. a. direct c. indirect b. explicit d. incidental ANS: C PTS: 1 REF: 191 33. Time-and- contracts are a hybrid of both fixed-price and cost reimbursable contracts. a. space c. price b. material d. reimbursable ANS: B PTS: 1 REF: 191 34. pricing can be used in various types of contracts to require the buyer to pay the supplier a predetermined amount per unit of service. a. Volume c. Variable b. Discount d. Unit ANS: D PTS: 1 REF: 191 35. A(n) is a document in which sellers describe what they will do to meet the requirements of a buyer. a. proposal b. charter c. d. schedule draft ANS: A PTS: 1 REF: 192 36. A Request for is a document used to solicit quotes or bids from prospective suppliers. a. Proposal c. Quote b. Price d. Cost ANS: C PTS: 1 REF: 193 The Main 5 chapters P.M 37. After thoroughly evaluating a supplier, many organizations summarize evaluations using a supplier matrix—a type of weighted scoring model. a. survey c. construction b. evaluation d. review ANS: B PTS: 1 REF: 195