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Project Management Review Ch 6-8

A project manager analyzing a complex flowchart on a digital tablet in a modern office environment, with charts and graphs prominently displayed in the background.

Project Management Mastery Quiz

Test your knowledge and skills in project management with our comprehensive quiz covering chapters 6-8. Ideal for both students and professionals, this quiz challenges you with a variety of questions on cost management, earned value, and project performance metrics.

91 questions spanning key project management concepts
Multiple choice format for ease of answering
Ideal for self-assessment and review
Boost your understanding of project cost management

91 Questions23 MinutesCreated by ManagingMouse42

Many information technology projects, that have cost overruns, involve new technology or business processes:

True

False

Cash flow analysis is a method for determining the estimated annual costs and benefits for a project and the resulting annual cash flow:

True

False

Internal rate of return (IRR) is the discount rate that makes net present value greater than zero:

True

False

A rough order of magnitude (ROM) estimate provides a rough idea of how long a project will run:

True

False

Analogous estimates are also called bottom-up estimating:

True

False

Bottom up estimating involves estimating individual work items and summing them to get a project total:

True

False

Constructive Cost Model (COCOMO) is used for estimating software development costs based on parameters:

True

False

Earned Value Management (EVM) is a project performance measurement technique that integrates scope, time, and cost data:

True

False

A project baseline is the original project plan plus any changes waiting for approvals:

True

False

Project cost management includes all of the following functions except:

Resource planning

Resource leveling

Cost estimating

Cost budgeting

What is a sunk cost?

The cost of a failed project

Management reserve

Money spent over which we have no control

Overhead cost

Life cycle costing:

Is a method of including all of the costs associated with the project over its entire life

Is a federal government accounting method

Is a method of predicting the life of a project

Is a method of evaluating projects when they are compete

A parametric cost estimate:

Is a bottom up estimating technique

Is a top down estimating technique

Is a statistical estimating technique

B and c

“Earned value” can best be defined as:

The value of the equipment that has been installed as of the data date

The sum of the labor costs that have been incurred on the project to date

A method of measuring the amount of money that has been spent to date

The actual cost of work performed (ACWP) minus the budgeted cost of work performed (BCWP)

The cost performance index (CPI) is:

Earned value divided by actual cost

Actual cost divided by earned value

Earned value divided by planned value

Planned value to date times percent complete

The project is considered on schedule if:

Schedule variance (SV) is negative

Cost variance (CV) is positive

Schedule performance index (SPI) is one or 100 percent

Earned value (EV) is positive

In a software project, the planned value (PV) was 80,000, the earned value (EV) was 75,000, and the actual cost (AC) was 71,00, what is the schedule variance (SV)?

+4,000

+9,000

�9,000

�5,000

In a software project, the planned value (PV) was 80,000, the earned value (EV) was 75,000 and the actual cost (AC) was 71,000, what is the cost performance index?

�0.947

0.947

0.937

1.056

In a software project, the planned value (PV) was 80,000, the earned value (EV) was 75,000 and the actual cost (AC) was 71,000, what is the cost variance (CV)?

�4,000

+4,000

+9,000

�9,000

Cash flow ____________________ is a method for determining the estimated annual costs and benefits for a project.

Analysis

Cost

Estimate

____________________ management plan is a document that describes how cost variances will be managed on the project.

Cost

Estimate

Index

A rough order of magnitude ____________________ is a cost estimate prepared very early in the life of a project to provide a rough idea of what a project will cost.

Estimate

Cost

Legacy

Cost performance ____________________ is the ratio of earned value to actual cost; can be used to estimate the projected cost to complete the project.

Index

Profit

Cost

Schedule performance ____________________ is the ratio of earned value to planned value; can be used to estimate the projected time to complete the project

Index

Cost

Profit

____________________ systems are older information technology systems that usually ran on an old mainframe computer.

Legacy

Estimate

Cost

____________________ is equal to revenues minus expenses

Profit

Cash

Cost

Profit ____________________ is the ratio between revenues and profits.

Margin

Estimate

Cost

____________________ modeling is a cost-estimating technique that uses project characteristics in a mathematical model to estimate project costs.

Parametric

Cost

Profit

According to the 1995 CHAOS study, what was the average cost overrun on IT projects? What was it in the 2001 study?

169 percent in the 1995 study; 45 percent in the 2001 study

Suppose you sell 10 widgets per day on average, and the average cost per widget is $10. If you sold 11 widgets one day, what would the affect on profits be?

There is not enough information to answer this question. You are given costs and asked to estimate profits. You do not know what the average profit is per widget. You might lose money by selling more widgets.

What is another name for earned value?

BCWP or budgeted cost of work performed

Quality planning includes identifying which quality standards are relevant to the project and how to satisfy them:

True

False

Quality assurance involves a one time evaluation of project performance to ensure that the project will satisfy the relevant quality standards:

True

False

Quality control involves monitoring specific project results to ensure that they comply with the relevant quality standards while identifying ways to improve overall quality:

True

False

Modern quality management does not require customer satisfaction but prefers prevention to inspection:

True

False

Genichi Taguchi key concept is that quality should be designed into the product and not inspected into it:

True

False

Design of experiments is a quality technique that helps identify which variables have the most influence on the overall outcome of a process:

True

False

Benchmarking is a technique that can be used to generate ideas for quality improvements by comparing specific project practices to those of other projects within or outside the performing organization:

True

False

Quality audits are structured reviews that are normally conducted whenever a problem is encountered in a project:

True

False

Pareto diagrams are histograms that help identify and prioritize problem areas in a project:

True

False

In a software development life cycle project, testing would normally come at the end of the project:

True

False

Quality management deals with the following except:

Conformance to requirements and specifications

Satisfying the needs of the customer

Making the product more desirable and luxurious

A and c

Quality assurance:

Refers to the prevention of product defects

Is an auditing function that provides feedback to the project team and client about the quality of the output being produced

Is the technical process that includes the construction of control charts, which specify the acceptability limits for conforming output

A and b

Following the methods used in Japan for quality control, Japan has improved quality dramatically in the last thirty years. Which of the following is not one of the reasons for this improvement?

The use of quality circles

Allowing the means for worker input and suggestions

Use of quality control charts

Focusing quality control effort on system output

Fishbone diagrams are used to:

Help find the root cause of quality problems

Improve the quality circle

Enhance the project manager’s quality management skills

All of the above

One of the fundamental belief of quality management is that quality:

Exceeds client expectations

Does not cost

Is planned in, not inspected in

All of the above

The diagram which ranks defects in the order of frequency of occurrence, using a histogram to depict 100 percent of the defects is called a:

Pareto diagram

Bar charts

Network diagram

Critical path

The main outputs of the quality control process are:

Pareto diagram, acceptance decisions, and process adjustments

Bar charts, network diagrams, and rework

Acceptance decisions, rework, and process adjustments

Acceptance decisions, performance indicators, and rework

Which of the following is not a true statement about control charts?

Control charts can be used to establish as well as maintain process control

Control charts are used to determine acceptance limits when no limits are stipulated by the product specification; otherwise, one should use the limits dictated by the specification

All data points outside the control chart limits are variations explained by assignable causes

B and c

Cost of quality is:

The expense of nonconformance to requirements and specifications

The direct responsibility of the project team members

The expense of conformance to requirements and specifications

A and c

Maturity models are used to:

Improve quality in software development projects

Help organizations improve their processes and systems

Enable continuous process improvement

All of the above

Project ____________________ management is implemented by means such as quality planning, control, assurance and improvement within the quality system.

Quality

Costs

Stats

In the quality management discipline, benefits ____________________ costs.

Outweigh

Quality

Costs

The project management team should have a working knowledge of ____________________ quality control.

Statistical

Numbers

Pareto

Quality ____________________ is evaluating overall project performance on a regular basis to provide confidence that the project will satisfy the relevant standards.

Assurance

Cost

Analysis

Capability ____________________ model is a five-level model laying out a generic path to process improvement for software development in organizations.

Maturity

Cost

Something

Cost of _________________________ is taking responsibility for failures or not meeting quality expectations.

Non-conformance

Quality

Assurance

Cost of ____________________ is the cost of conformance plus the cost of nonconformance

Quality

Cost

Estimation

____________________ analysis is used in identifying the vital few contributors that account for most quality problems in a system.

Pareto

Cost

Quality

User acceptance testing is a(n) ____________________ test performed by end users prior to accepting the delivered system.

Independent

Lonely

Love

____________________ cost is the cost of planning and executing a project so that it is error-free or within an acceptable error range.

Prevention

Quality

Estimate

Define quality and what is meant by stated and implied needs.

Quality is the totality of characteristics of an entity that bear on its ability to satisfy stated or implied needs. Stated needs are formally communicated either verbally or in writing. Implied needs mean the product is fit for use or can be used as it was intended.

Who created fishbone diagrams, and what are they used for?

Ishikawa developed fishbone diagrams, and they are used to trace complaints about quality problems back to the responsible production operations to find the root cause.

Which is better, 3 sigma, 4 sigma, 5 sigma, or 6 sigma?

6 sigma. There are less defective units as sigma increases. See Table 7-2 on pg. 209 for the relationship between sigma and the number of defective units.

Organizational planning involve identifying, assigning, and documenting project roles, responsibilities, and reporting relationships:

True

False

Team building involves building individual an group skills to enhance project performance:

True

False

Maslow’s hierarchy of needs states that people’s behaviors are not guided or motivated by a sequence of needs:

True

False

Frederick Herzberg is best known for distinguishing between motivational factors and hygiene factors when considering motivation in work settings:

True

False

A responsibility assignment matrix (RAM) is used to identify project roles and responsibilities:

True

False

An organizational breakdown structure (OBS) is developed without regard to the organizational chart of the performing organization:

True

False

A staffing management plan describes when and how people will be added to and taken off the project team:

True

False

Resource loading refers to the amount of individual resources an existing schedule requires during specific time periods:

True

False

Resource leveling is a technique for resolving conflicts by deleting conflicting tasks to create a smoother distribution of resource usage:

True

False

Project human resource management involves much more than using software to facilitate organizational planning and assign resources:

True

False

Project human resource management is divided into:

Organization planning, staff acquisition, and performance appraisal

Leadership, team building, and negotiation

Team building, communications, and labor relations

Organizational planning, staff acquisition, and team development

Tools and techniques to aid in staff acquisition include:

Staffing management plan

Procurement

Team directory

All of the above

Outputs of organizational planning are:

Project organization chart

Staffing management plan

Project template

All of the above

What method is used to communicate staffing requirements to the organization?

Gantt chart

Staffing plan

Responsibility matrix

Project objective statement

According to McGregor’s concept of theory X and theory Y, which of the following statements is true?

Theory X managers view their subordinates as lazy, irresponsible, and resistant to change

Theory Y managers view their subordinates as creative, imaginative, and agreeable to change

Theory Y mangers tend to delegate authority

All of the above

Responsibility ____________________ matrix is a matrix that maps the work of the project as described in the WBS to the people responsible for performing the work as described in the OBS.

Assignment

Delay

Trust

Myers-Briggs Type Indicator is a popular tool for determining ____________________ preferences.

Personality

Secret

Staff

Resource leveling is a technique for resolving resource conflicts by ____________________ tasks.

Delaying

Early

Late

Theory ____________________ is sometimes referred to as human relations theory.

Theory ____________________ is sometimes referred to as classical systems theory.

Theory ____________________ is based on the Japanese approach to motivating workers.

____________________ power uses punishment, threats, or other negative approaches to get people to do things they do not want to do.

Coercive

Delaying

Costs

____________________ power is getting people to do things based on an individual’s personal charisma.

Referent

Theory

Strong

Give an example of a hygiene factor, according to Herzberg.

Answers could include a more attractive work environment, training, or fringe benefits such as a good parking space or casual dress, and so on. Herzberg also says that money is a hygiene factor.

What type of chart is used to show resource loading?

A histogram

What do the letters RAM stand for as they relate to project human resource management?

Responsibility Assignment Matrix

What ways to have influence are correlated with successful projects?

Expertise and work challenge

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