Deck 1: The World of Project Management

Question 1

The main distinction between platform and derivative projects is that the latter depend on existing technology.

Answer 1

False

Question 2

Projects are always carried out under conditions of uncertainty.

Answer 2

True

Question 3

Nonnumeric project selection methods are only suitable if numeric methods are NOT available.

Answer 3

False

Question 4

A PM doesn't need to understand why a project is selected for funding because he didn't initiate the process..

Question 5

While general managers have their authority limited to specific areas in the overall organization,project managers have authority over any activity required by the project.

Question 6

A disadvantage of using the payback period method for selecting projects is that it cannot reflect the time-value of money.

Question 7

If a PM manages her project well enough she can eliminate uncertainty.

Question 8

A primary purpose of forming projects is to assign the responsibility for accomplishing some organizational task to a specific person or small group.

Question 9

A key deficiency of the aggregate project plan is that it provides little information about the resources committed to the various projects.

Question 10

One can trade-off time and cost when managing a project,but the project's technical specifications must be maintained exactly as the client initially specifies.

Question 11

Achieving both strategic and routine goals are growing in importance in project management.

Question 12

Many recent developments in project management are being driven by changes in the nature of the American workforce.

Question 13

When using financial methods for selecting projects,the payback period is the simplest and best method to use.

Question 14

Rank-ordering a large number of projects can be done with a Q-sort..

Question 15

Programs are subdivisions of projects.

Question 16

One reason for the emphasis on project management is that tasks fit neatly into business-as-usual.

Question 17

The main distinction between platform and breakthrough projects is that the former usually depend on existing technology.

Question 18

One of the few similarities between project management and general management is that both exist in the well-defined organizational structure of superior/subordinates in the overall organization.

Question 19

A disadvantage of using the discounted cash flow method (or net present value)for selecting projects is that it ignores all non-monetary factors associated with the project.

Question 20

A disadvantage of using scoring models rather than financial models for selecting projects is that they cannot include the project's profitability.

Question 21

One limitation of scoring methods is that they can only incorporate quantitative data.

Question 22

Projects are subdivisions of programs.

Question 23

The construction of a house would likely follow a J-shaped lifecycle.

Question 24

When using the weighted scoring model,the categories for each scale must be in equal intervals.

Question 25

Which of the following criteria can be included in scoring models for selecting projects?

A) potential profitability of the project
B) potential impact on the firm's competitive position
C) the organization's ability to market the output of a project
D) All of the above can be included
E) only a and b above

Question 26

Which of the following are projects?

A) the design and development of a new product
B) gathering and entering employment data for a Bureau of Labor Statistics quarterly report
C) producing a car on an automobile assembly line
D) a and b above.
E) a, b, and c above.

Question 27

A similarity between project management and general management is the tendency to "manage by exception."

Question 28

Scoring methods were developed to overcome some of the disadvantages of simple financial profitability methods.

Question 29

Which of the following is NOT a trend in project management?

A) achieving strategic goals
B) improving project effectiveness
C) quasi projects
D) reductive projects
E) achieving routine goals

Question 30

In project management,superior-subordinate relationships are known and lines of authority are clear.

Question 31

Having responsibility for the outcome of a project without the authority of rank or position is common in project management.

Question 32

As a rule of thumb,the number of factors included in a scoring model should be at least 10.

Question 33

R&D projects are oriented toward using newly developed technologies or existing technologies in a new manner.

Question 34

Negotiating the purchase of a new car would typically be characterized as win-win negotiation.

Question 35

Projects success is not determined by the portfolio of projects in an organization..

Question 36

The comparative benefits method is considered a nonnumeric project selection method.

Question 37

Projects with deliverables that are incrementally different from existing offerings are classified as platform projects.

Question 38

In project management,it is often necessary to trade-off one objective for another.

Question 39

Project budgets are primarily modifications of budgets for the same activity in the previous period.

Question 40

A project that is selected because it is necessary for continued operations exemplifies a sacred cow.

Question 41

Which of the following is NOT related to the three goals of a project?

A) time
B) data
C) schedule
D) cost
E) performance

Question 42

Searching for the third alternative is most closely associated with

A) win-win negotiation
B) project planning
C) project budgeting
D) the three goals of a project
E) the weighted scoring model

Question 43

The ________________________ attempts to link the organization's projects directly to the goals and strategy of the organization.

A) the product-process matrix
B) the balanced scorecard
C) the action plan
D) project portfolio process
E) the work breakdown structure

Question 44

Which of the following is NOT a characteristic of a project?

A) They are unique.
B) They are routine.
C) They have specific due date.
D) They have a specific deliverable.
E) They have a purpose.

Question 45

Which of the following is a nonnumeric project selection method?

A) Q-sort method
B) payback period
C) discounted cash flow method
D) real options
E) scoring methods

Question 46

"Blue Sky" projects are

A) R & D projects
B) Platform projects
C) Breakthrough projects
D) Derivative projects
E) High risk projects

Question 47

A matrix that illustrates the magnitude of both product and process changes resulting from a project is called

A) the aggregate project plan
B) the product-process matrix
C) the aggregate master production schedule
D) the balanced scorecard
E) the R&D project portfolio

Question 48

If the initial investment is a project is $100,000 and the expected annual net profit for the project is $20,000,the payback period is:

A) 5 years
B) 4 years
C) One fifth of a year
D) 10 years
E) insufficient information to determine the payback period

Question 49

Which of the following would NOT be considered a project?

A) placing the weekly replenishment order
B) a political campaign
C) constructing a new office building
D) developing a new cancer treatment.
E) writing a new textbook

Question 50

In Crystal Ball,cells that contain outcomes we are interested in are called

A) assumption cells
B) distribution cells
C) forecast cells
D) decision cells
E) define cells

Question 51

Projects that begin with a slow start,have quick momentum in the middle,and have a slow finish are said to follow which type of lifecycle?

A) J-shaped lifecycle
B) L-shaped lifecycle
C) an exponential growth lifecycle
D) an S-shaped lifecycle
E) an X-shaped lifecycle

Question 52

Which of the following is a numeric project selection method?

A) comparative benefits
B) payback period
C) Q-sort method
D) operating/competitive necessity
E) sacred cow