Deck 14: Managing Projects

Question 1

The ________ consists of systems analysts,specialists from the relevant end-user business areas,application programmers,and perhaps database specialists.

A)project management group
B)project team
C)IS steering committee
D)corporate strategic planning committee
E)system planning committee

Answer 1

B

Question 2

As discussed in the Chapter ,which of the following is not one of the immediate consequences of inadequate software project management?

A)cost overruns
B)customer loyalty
C)time slippage
D)technical shortfalls
E)failure to obtain anticipated benefits

Answer 2

B

Question 3

The ________ is the part of the system that users interact with.

Answer 3

user interface

Question 4

All of the following are indications of a failed information systems project except

A)employees are refusing to switch to the new system.
B)employees have created a spreadsheet solution to manipulate the data generated by the system.
C)a redesigned Web site has fewer visits to the customer support pages.
D)employees require training to properly use the system.
E)the system is not being used by anyone.

Question 5

________ refers to the application of knowledge,skills,tools and techniques to achieve specific targets within specified budget and time constraints.

Question 6

The central method used in a portfolio analysis is to

A)inventory all of the organization's information systems projects and assets.
B)perform a weighted comparison of the criteria used to evaluate a system.
C)survey a large sample of managers on their objectives,decision-making process,and uses and needs for data and information.
D)interview a small number of top managers to identify their goals and criteria for achieving success.
E)score proposed systems on a number of dimensions,and select the one with the highest score.

Question 7

The ________ reviews and approves plans for systems in all divisions.

A)project management group
B)project team
C)IS steering committee
D)corporate strategic planning committee
E)chief executive officer (CEO)

Question 8

In using a portfolio analysis to determine which IT projects to pursue,you would

A)select the most low-risk projects from the inventory.
B)limit work to those projects with great rewards.
C)select only low-risk,high-reward projects.
D)balance high-risk,high reward projects with lower-risk projects.
E)avoid projects that were very costly.

Question 9

A road map indicating the direction of systems development,the rationale,the current systems,new developments to consider,the management strategy,the implementation plan,and the budget is called a(n)

A)project plan.
B)portfolio analysis.
C)information systems plan.
D)enterprise analysis.
E)strategic planning document.

Question 10

One of the five major variables in project management,________ is an indicator of how well the project satisfies management objectives.

Question 11

An information system project's scope is directly related to its business requirements.

Question 12

A planned series of related activities for achieving a specific business goal is called a(n)________.

Question 13

At the top of the management structure for information systems projects in a large company is

A)project management.
B)the CIO.
C)the corporate strategic planning group.
D)the board of directors.
E)chief executive officer (CEO).

Question 14

Which of the following project management variables indicates how well the project satisfies management objectives?

A)goals
B)risk
C)quality
D)scope
E)cost

Question 15

You have been hired to implement an enterprise system that will automate much of the billing and accounting work for a statewide HVAC services company.Which of the following would you prepare to describe how the new system will affect a firm's structure and operations?

A)information systems plan
B)internal integration report
C)sociotechnical design report
D)organizational impact analysis
E)strategic planning document

Question 16

On average,private sector IT projects underestimated budget and delivery time of systems by ________ percent.

A)30
B)40
C)50
D)60
E)70

Question 17

The ________ is directly responsible for the individual systems project.

A)project management group
B)project team
C)IS steering committee
D)corporate strategic planning committee
E)systems planning committee

Question 18

Which of the following is not one of the five main variables affecting project success?

A)risk
B)vendors
C)time
D)quality
E)cost

Question 19

The cost of a project is based on the time to complete a project multiplied by the cost of human
resources required to complete the project.

Question 20

Which of the following statistics from studies on failed projects is not true?

A)Only 32 percent of all technology investments were completed on time,on budget,and with all features and functions originally specified.
B)Large software projects on average run 66 percent over budget and 33 percent over schedule.
C)Between 30 and 40 percent of all software projects are "runaway" projects that far exceed the original schedule and budget projections and fail to perform as originally specified.
D)Thirty-two percent of technology investments are completed on time,within budget,and with requirements met.
E)The average cost overrun of IT projects is 20 percent.

Question 21

All of the following are intangible benefits of information systems except

A)improved asset utilization.
B)increased organizational learning.
C)improved operations.
D)reduced workforce.
E)employee morale.

Question 22

The information systems steering committee is composed of information systems managers and end-user managers responsible for overseeing several specific information systems projects.

Question 23

List five types of information that should be included in an information systems plan.

Question 24

A(n)________ is a method for deciding among alternative systems based on a system of ratings for selected objectives.

Question 25

Which of the following is not a tangible benefit of information systems?

A)reduced rate of growth in expenses
B)lower computer expenses
C)improved resource control
D)increased productivity
E)end user satisfaction

Question 26

You have been hired by a pharmaceutical company to evaluate its inventory of systems and IT projects.Which types of projects would be best avoided?

A)any high-risk projects
B)any low-benefit projects
C)all high-risk,low-benefit projects
D)none,any project might be beneficial
E)low cost,high benefit projects

Question 27

You have been hired as a consultant to make recommendations for Smarty's,a healthy fast-food chain that is undergoing major expansion and is in need of a supply chain planning system.They are evaluating two commercially available software packages.What systems evaluation model will help them assess and compare the two packages? How does this model work?

Question 28

If an intended benefit of an IT project is improved decision making,managers should develop a set of metrics to quantify the value of an improved decision.

Question 29

You are using a capital budgeting method to assess the worth of your company's new information system.Which of the following costs would you include in measuring the cash outflow?

A)increased sales of products
B)hardware and software expenditures
C)labor expenditures
D)reduced costs in production and operation
E)both B and C

Question 30

An information systems plan contains a statement of corporate goals and specifies how information technology will support the attainment of those goals.

Question 31

The central method used in a scoring model is to

A)inventory all of the organization's information systems projects and assets.
B)perform a weighted comparison of the criteria used to evaluate a system.
C)survey a large sample of managers on their objectives,decision-making process,and uses and needs for data and information.
D)interview a small number of top managers to identify their goals and criteria for achieving success.
E)calculate the return on investment for each system,and choose the system with the best return.

Question 32

Describe the process of portfolio analysis.In what situations is this evaluation method useful?

Question 33

Scoring models are most commonly used to make the final decision when selecting different systems .

Question 34

Which method is used to assign weights to various features of a system?

A)information systems plan
B)scoring model
C)portfolio analysis
D)TCO
E)real options model

Question 35

You are working as a project manager for a small IT consulting firm and have been asked to create a plan for reviewing and auditing completed projects in order to gauge their success.What factors will you use to measure the success of a project? What questions would you ask in order to understand why a project succeeded or failed?

Question 36

The worth of systems from a financial perspective essentially revolves around the issue of

A)total cost of ownership.
B)adherence to information requirements.
C)asset utilization.
D)return on invested capital.
E)the cost of computing equipment.

Question 37

Describe the elements of a management structure for information systems projects in a large corporation.

Question 38

Which method would you use to develop risk profiles for a firm's information system projects and assets?

A)information systems plan
B)scoring model
C)portfolio analysis
D)TCO
E)real options model

Question 39

The criteria used for evaluation in a scoring model are usually determined by

A)lengthy discussions among the decision-making group.
B)portfolio analysis.
C)the IS steering committee.
D)systems analysts.
E)project managers.

Question 40

You have been hired as a consultant for a nationwide real estate firm,Cross & Deptford,who are interested in achieving better organization between branches by updating their information systems,but are not sure what will suit their needs.What will you recommend they do in order to determine the most effective IT projects?

Question 41

One example of an implementation problem is

A)poor user interface.
B)inadequate user training.
C)project running over budget.
D)changes in job activities and responsibilities.
E)reduction in labor force.

Question 42

Intangible benefits generally do not lead to quantifiable gains in the long run.

Question 43

The organizational activities working toward the adoption,management,and routinization of a new information system are called

A)production.
B)maintenance.
C)implementation.
D)acceptance.
E)final acceptance.

Question 44

The project risk will rise if the project team and the IS staff lack

A)legacy applications as a starting point.
B)good equipment.
C)the required technical expertise.
D)financial studies and plans.
E)a committed management group of executive leaders.

Question 45

________ methods rely on measures of cash flows into and out of the firm.

Question 46

In working with ROPMs (real option pricing models)and options valuation,a call option is a(n)

A)obligation to purchase an asset at a later date at a fixed price.
B)obligation to either purchase or sell an asset at a later date at a strike price.
C)right to purchase an asset at a later date at a strike price.
D)right to purchase or sell an asset at a later date at a fixed price.
E)an obligation to sell an asset at a later date at a fixed price.

Question 47

Which of the following statements best describes the effect that project structure has on overall project risk?

A)Highly structured projects are more complex,and run a higher risk of programmers and users misunderstanding the ultimate goals.
B)Projects with relatively undefined goals are more likely to be subjected to users changing requirements and to run a higher risk of not satisfying project goals.
C)Highly structured projects tend to be larger,affecting more organizational units,and run both the risk of out-of-control costs and becoming too difficult to control.
D)Less structured projects are more able to be quickly developed,tested,and implemented using cutting-edge RAD and JAD development techniques,and pose less risk of running up unforeseen costs.
E)the less structured a project,the greater the freedom of users to define the system

Question 48

A benefit of using TCO analysis to evaluate an information technology investment is that it is able to incorporate intangible and "soft" factors such as benefits and complexity costs.

Question 49

To best evaluate,from a financial standpoint,an IT investment whose benefits cannot be firmly established in advance,you would use

A)capital budgeting.
B)the real option pricing model.
C)a scoring model.
D)the net present value.
E)a portfolio analysis.

Question 50

What is the purpose of using a real options pricing model to estimate the potential value of an information systems project?

Question 51

The principal capital budgeting models for evaluating information technology projects are the payback method,the accounting rate of return on investment (ROI),the net present value,and the

A)future present value.
B)internal rate of return.
C)external rate of return.
C)external rate of return.
E)present value of future cash flows

Question 52

In one strategic approach to determining information requirements,managers select a small number of ________ that reflect firm success and profitability.

Question 53

According to your reading of the Chapter ,change management is a process that

A)should be addressed before a project is developed.
B)begins when a project is implemented.
C)is used primarily to mandate user acceptance.
D)must be addressed in all systems development.
E)is introduced after the system is developed.

Question 54

More timely information is a intangible benefit of information systems.

Question 55

Differentiate between intangible and tangible benefits and list three examples of each.In what types of systems are intangible benefits more predominant?

Question 56

Transaction and clerical systems that displace labor and save space typically produce more measurable,tangible benefits than management information systems.

Question 57

Real options pricing models use the concept of options valuation borrowed from the financial industry.

Question 58

ROPMs (real options pricing models)value information systems similar to stock options,in that

A)ROPMs can be bought and sold like stocks.
B)a company's worth can be evaluated by the worth of their ROPMs.
C)initial expenditures on IT projects are seen as creating the right to pursue and obtain benefits from the system at a later date.
D)expenditures and benefits from IT projects are seen as inflows and outflows of cash that can be treated themselves like options.
E)the price paid today for information systems reflects their future cash flows.

Question 59

Which of the following is a limitation of using a financial approach to evaluate information systems?

A)inability to measure ROI
B)inability to control vendor costs
C)inability to assess risk
D)inability to assess costs from organizational disruption
E)inability to assess the cost of technology

Question 60

Which of the following projects is the riskiest?

A)a project that managers are concerned will affect their roles and job descriptions
B)a project that requires technical expertise that your firm's IT employees do not have
C)a project that has a strict deadline,or sales will suffer
D)a project that will automate many clerical duties
E)a project that will displace employees

Question 61

An example of using an external integration tool would be to

A)define task dependencies.
B)include user representatives as active members of the project team.
C)create a PERT chart.
D)hold frequent project team meetings.

Question 62

External integration tools

A)enable a project to have sufficient technical support for project management and development.
B)enable a project manager to properly document and monitor project plans.
C)portray a project as a network diagram with numbered nodes representing project tasks.
D)consist of ways to link the work of the implementation team with users at all organization levels.

Question 63

An example of using an internal integration tool would be to

A)define task dependencies.
B)include user representatives as active members of the project team.
C)create a PERT chart.
D)hold frequent project team meetings.
E)develop a system planning document for technical specialists.

Question 64

Users prefer systems that

A)are oriented to facilitating organizational tasks and solving business problems.
B)work with existing DBMS.
C)are able to provide optimum hardware and software efficiency.
D)are capable of storing much more data than they need.
E)have an easy-to-learn interface.

Question 65

Which of the following types of projects is most likely to fail?

A)integration of a third-party automated payment system
B)replacement of middleware with Web services for legacy application integration
C)a business process redesign project that restructures workflow and responsibilities
D)redesigning a user interface to an online investment site
E)building a Web-based interface to an existing system

Question 66

User concerns and designer concerns are usually the same at the beginning of the project but may diverge later as the system is built.

Question 67

To review a project's tasks and their interrelationships,you would use a

A)PERT chart.
B)Gantt chart.
C)either A or B.
D)neither A nor B.

Question 68

Internal integration tools

A)enable a project to have sufficient technical support for project management and development.
B)enable a project manager to properly document and monitor project plans.
C)portray a project as a network diagram with numbered nodes representing project tasks.
D)consist of ways to link the work of the implementation team with users at all organization levels.
E)enable end users to communicate with system developers.

Question 69

Which of the following tools is not one you would use to control risk factors in an information systems project?

A)internal integration tools
B)external integration tools
C)formal planning tools and formal control tools
D)real options pricing models
E)Gantt charts

Question 70

The larger the systems project,the greater the chance that the project will be completed on time,within budget,and according to project requirements.

Question 71

The relationship between users and information systems specialists has traditionally been a problem area for information systems implementation efforts.

Question 72

Which of the following is not one of the activities of the systems analyst?

A)acting as a change agent
B)communication with users
C)mediating between competing interest groups
D)formulation of capital budgeting models
E)deciding which systems to develop

Question 73

The systems analyst is the catalyst for the entire change process and is responsible for making sure that everyone involved accepts the changes created by a new system.

Question 74

In sociotechnical design

A)separate sets of technical and social design solutions are developed and compared.
B)ergonomic features of a system and the system's technical design are given equal importance.
C)systems analysts with proven backgrounds in sociological concerns rate and compare a system's social and technical aspects.
D)all of the above.

Question 75

Which of the following is not a responsibility of effective change management?

A)integrating legacy systems
B)dealing with fear and anxiety about new systems
C)training users of the new system
D)enforcing user participation at all stages of system development
E)ensuring users are properly trained

Question 76

Which of the following is not an organizational factor in systems planning and implementation?

A)standards and performance monitoring
B)government regulatory compliance
C)health and safety
D)user interface

Question 77

The most widely used project management software today is

A)Vertabase.
B)IBM Project Guide.
C)Microsoft Project.
D)Microsoft Excel.

Question 78

Which type of planning tool shows each task as a horizontal bar whose length is proportional to the time required to complete it?

A)PERT chart
B)Gantt chart
C)both A and B
D)neither A nor B

Question 79

Formal planning and control tools

A)enable a project to have sufficient technical support for project management and development.
B)enable a project manager to properly document and monitor project plans.
C)portray a project as a network diagram with numbered nodes representing project tasks.
D)consist of ways to link the work of the implementation team with users at all organization levels.
E)enable senior management to track the development of systems.

Question 80

Which type of tool helps project managers identify bottlenecks in project development?

A)internal integration tools
B)external integration tools
C)formal planning and control tools
D)both B and C