Deck 7: Starting a Project

Question 1

Not-for-profit or government organizations are likely to approve projects with longer simple payback periods because they are not compared to other not-for-profit or government agencies based on their profitability.

Answer 1

True

Question 2

The repayment of a loan and interest to a company is usually paid quarterly or annually.

Answer 2

True

Question 3

Government organizations can raise money to fund projects by selling stock.

Answer 3

False

Question 4

The final approval of a project belongs to the project manager.

Question 5

Typically, the client will develop the first draft of the project scope.

Question 6

A well-developed project scope statement provides the project team with information the team needs to design and execute the project plan.

Question 7

Selection of the project manager is always the defining event in a project start-up.

Question 8

Project goals established during the alignment process are narrow in nature.

Question 9

A goal must have a measurable outcome.

Question 10

The risk in selecting a project manager prior to completing the project evaluation process is that it may indicate a need for project manager skills and experiences that are different from the project manager who is involved in the evaluation.

Question 11

To identify the advocates and opponents of a project, begin by reading public documents such as the minutes of the meeting at which the project was approved.

Question 12

The scope document is usually several hundred pages long.

Question 13

A purpose statement provides a project with an organizational focus.

Question 14

The project manager will conduct one or more kickoff meetings to develop plans for establishing the project office.

Question 15

The internal rate of return can be used to compare the profitability of competing projects.

Question 16

One of the necessary components of a change documentation process is to estimate the time needed to evaluate the change.

Question 17

Developing a common understanding of the project purpose implies building a consensus.

Question 18

As long as the end date of a project or major objectives are not delayed, a formal change request to the client is not needed.

Question 19

A not-for-profit organization must consider the cost of each project and how much profit it is likely to generate.

Question 20

Irrespective of the complexity profile, all projects require dedicated infrastructure.

Question 21

Projects have the advantage of an existing communication structure.

Question 22

When trust is not present, time and energy is invested in fact checking or finding information.

Question 23

The _____ defines what tasks the project team is expected to accomplish and, just as importantly, what is not part of the project.

A) punch list
B) check sheet
C) project logic diagram
D) checklist
E) scope document

Question 24

Document controls systems have a systematic numbering system that allows a team member to derive information about the document through the document number.

Question 25

The _____ of an organization is a statement of why it exists.

A) objective
B) vision
C) charter
D) mission
E) goal

Question 26

The time period it takes to recoup the original expense without considering interest payments or other complicating factors is called _____.

A) internal rate of return
B) cash flow
C) simple payback
D) ROI
E) inclusion ratio

Question 27

A project champion:

A) is often made the project manager during the later stages of a project.
B) can fund the project from existing earnings.
C) is usually the business owner of the project.
D) is an influential person who is willing to use his/her influence to help the project succeed.
E) focuses on planning, organizing, and managing the execution of the project.

Question 28

The _____ is the average annual return on an investment that earns or saves money.

A) MVA
B) MIRR
C) GRR
D) APV
E) IRR

Question 29

According to the text, a government agency's sources of funding are usually _____.

A) charities and donations
B) taxes and fees
C) trusts and foundations
D) companies and small businesses
E) trading and investments

Question 30

If a company borrows $175,000 to fund a project and the project increases cash flow by $25,000 a year, the simple payback would be:

A) 8 years.
B) 5 years.
C) 6 years.
D) 7 years.
E) 4 years.

Question 31

An) _____ is an end toward which effort is directed that has a measurable outcome.

A) idea
B) objective
C) mission
D) vision
E) duty

Question 32

If a company borrows money, it must pay back a portion of the amount it borrowed plus _____.

A) extra payment
B) alternative giving
C) donation
D) contributions
E) additional interest

Question 33

An) _____ is an end toward which effort is directed.

A) goal
B) idea
C) mission
D) vision
E) duty

Question 34

A business that is created to make a profit for its owners and stockholders:

A) would deemphasize the service it provides.
B) should select projects that entail limited cost.
C) competes for funding from higher levels of government.
D) emphasizes its responsibilities to the citizens it represents.
E) must consider the cost of each project and how much profit it is likely to generate.

Question 35

Which of the following is

A) On a large, complex project, the development of the project scope document can take weeks.
B) The final approval of a project scope belongs to the project manager.
C) Feedback on the scope document is rarely solicited from the project team.
D) Typically, the client will develop the first draft of the project scope.
E) The client will attempt to develop consensus around the project scope.

Question 36

Which of the following is NOT

A) The mission statement of a not-for-profit organization would emphasize the service it provides.
B) It is always seeking funding.
C) Its sources of funding are typically taxes and fees.
D) It must control its costs so that it does not exceed its funding.
E) It competes with other not-for-profit organizations for funding from the same sources.

Question 37

The movement of money where income is positive and spending is negative is called _____.

A) cash flow
B) net income
C) actual cost
D) CPI
E) simple payback

Question 38

Which of the following statements is

A) The cash flow generated by the product of the project for the first three years is considered.
B) The company assumes that all of the annual cash flows will be positive.
C) Cash flows are assumed to be constant from year to year and impervious to external factors.
D) The inputs to the IRR calculation are the net cash flow for each year where at least one of them is negative and at least one of them is positive.
E) The IRR method is considered inferior to the simple payback method.

Question 39

Role clarity is critical to the planning and execution of a project.

Question 40

On smaller, less complex projects the team discusses key work processes, often using flowcharts to diagram the work process as a team.

Question 41

The transition from planning to project initiation is typically marked by the decision to _____ the project and the _____ of the project manager.

A) approve; consideration
B) proceed with; assessment
C) support; training
D) commit to; evaluation
E) fund; selection

Question 42

During the start-up phase, a project manager will conduct one or more _____ to develop plans for establishing the project office and for developing project policies and procedures.

A) cross functional meetings
B) management meetings
C) kickoff meetings
D) action item meetings
E) leadership meetings

Question 43

Which of the following statements is

A) It involves setting up dedicated infrastructure for projects, irrespective of their size.
B) It is often the least chaotic of all project phases.
C) It is the phase in which the project manager dedicates the least amount of time in developing plans.
D) It is an opportunity for the project manager to set expectations for project team members.
E) It involves staffing the project, building both internal and external relationships, and archiving documents.

Question 44

Roles:

A) are defined as the project progresses.
B) are usually not delineated in contracts.
C) are rarely open to interpretation.
D) can be clarified by using a flip chart to record project roles.
E) tend to limit the scope of work performed by project members.

Question 45

Why are changes to the project scope necessary?

A) To understand reports
B) To reflect new information
C) To begin planning the project
D) To teach team members what they need to know about their jobs
E) To establish a trusting project culture

Question 46

All of the following steps, as paraphrased by Tom Mochal, have the necessary components of a change documentation process EXCEPT:

A) inform project stakeholders of the change request process.
B) require that the change request be made in writing.
C) estimate the time needed to evaluate the change.
D) evaluate the change and its impact on the schedule.
E) withhold the distribution of the scope change log to team members .

Question 47

Role clarification facilitates the development of all of the following, EXCEPT:

A) Communication planning
B) Key milestones
C) Work flow organization
D) Approval processes
E) Role boundary spanning processes

Question 48

The project _____ team is responsible for developing a communication plan that provides the right information, at the right place, at the right time.

A) client
B) administration
C) alignment
D) leadership
E) control

Question 49

_____ are those persons in the organization who know how to generate or find information.

A) Originators
B) Initiators
C) Influencers
D) Approvers
E) Gatekeepers

Question 50

A purpose statement:

A) is developed as part of the team development process during the project delivery phase.
B) provides a project with an anchor or organizational focus.
C) provides a method to support the integration of distinct business applications that have not necessarily been designed to coexist.
D) is an objective of maximum productivity with minimum participation.
E) delivers innovative solutions.

Question 51

The types of goals and the processes used to develop the goals will vary depending on the complexity of the project, the knowledge and skills of the project leadership team, and the _____ of the project plan which refers to the degree of stretch for the team.

A) boldness
B) expanse
C) intricacy
D) sophistication
E) breadth

Question 52

Which of the following is

A) Goals reflect who we are.
B) Goals have uniform characteristics.
C) Goals add clarity to the anchor statement.
D) Goals translate behaviors into emotional concepts.
E) Goals established during the alignment process are narrow in nature.

Question 53

Which of the following is an advantage of including the project manager in the project evaluation process?

A) It enables the project manager to have an understanding of the selection criteria that can be used when making decisions about the project during later phases.
B) It may indicate a need for project manager skills and experiences that are different from the project manager who is involved in the evaluation.
C) It allows the parent organization to select a project manager whose abilities match the complexity profile of the project.
D) It improves the project manager's level of understanding about the project and ensures that the chosen project manager is the most suitable individual for executing the project.
E) It helps achieve greater buy-in from the top management of the parent organization.

Question 54

The level of communication on a project is directly related to the level of _____.

A) decision-making
B) interest
C) motivation
D) trust
E) time management

Question 55

Determining the policies that are needed for the smooth execution of a project relates to which of the following agenda items of alignment sessions?

A) Developing a common understanding of the project purpose
B) Establishing trust among team members
C) Engaging stakeholders in dialogue
D) Developing role clarification on projects
E) Agreeing on the means and methods for accomplishing the purpose

Question 56

It is important to accomplish alignment among key stakeholders during the _____ phase itself.

A) closing
B) delivery
C) planning
D) initiation
E) execution

Question 57

During the _____ of a project, the project manager focuses on developing the project infrastructure
a. completion
b. start-up
c. execution
d. evaluation
e. selection

Question 58

Developing a common understanding among the key stakeholders of the purpose and goals of the project and the means and methods of accomplishing those goals is called the _____.

A) work breakdown structure
B) master schedule
C) contracting plan
D) assignable cause
E) alignment process

Question 59

Which of the following statements is

A) A common understanding means building a consensus and disagreement regarding a project's purpose is often fatal to project execution.
B) Developing a common understanding involves defining project success, determining potential barriers to success, establishing milestones, and identifying decision-makers.
C) The methods and processes employed to develop a common understanding depend on the duration of the project.
D) Irrespective of the complexity of the project, developing a common understanding usually involves informal discussions that last a few hours.
E) When developing a common understanding of the purpose of a project, participants are often instructed to refrain from expressing skepticism.

Question 60

Sometimes called an anchoring statement, these statements can become a basis for testing key decisions.

A) Conceptual estimates
B) Project objectives
C) Purpose statements
D) Scope documents
E) Project profiles

Question 61

Explain one of the reasons for conducting several meetings during the start-up of projects with a high complexity profile.

Question 62

What are the uses of a scope document?

Question 63

The role clarification process enables the team to develop _____ processes, where two or more members share similar roles or responsibilities.

Question 64

The _____ matrix is a table that displays the responsibilities and distribution for each type of document.

A) linear
B) communication
C) responsibility
D) decision
E) risk

Question 65

What is the mission of an organization? What are the sections of a mission statement?
a. Purpose of the organization
b. Primary stakeholders
c. Responsibility of the organization toward the stakeholders
d. Products or services offered

Question 66

Which of the following is NOT

A) Organizations that execute a large number of complex projects will often have project document control systems.
B) Document control systems distribute, store, and retrieve information that is needed by the project team.
C) Document controls systems generally do not maintain document archives.
D) Documents that originate from team members during planning and execution are transmitted to the document team for cataloging, distributing, and storing.
E) Document controls systems have numbering techniques that allow a team member to derive information about the document through the document number.

Question 67

The _____ is a sequential list of scope change requests and actions related to scope changes.

Question 68

Why is role clarification important?

Question 69

_____ means labeling each document revision to enable the team to understand the latest activity and status of the document.

A) Statistical control
B) Project control
C) Span of control
D) Version control
E) Quality control

Question 70

_____ conventions for files and the versions of files should be consistent with the practices of the parent organization or with the client organization so that the files may be archived with files from other projects.

Question 71

Project managers usually conduct a start-up meeting that is sometimes called an) _____ meeting.

Question 72

What are some of the common agenda items in alignment sessions?
a. Developing a common understanding of the project purpose
b. Agreeing on the means and methods for accomplishing the purpose
c. Establishing trust among team members
Moderate

Question 73

Describe the communication structure in an existing organization.

Question 74

An) _____ organization is a group that determines the need for the project.