BUS 517 Midterm Exam – New

BUS 517 Midterm Exam – Strayer New

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Midterm Exam, Part 1: Chapters 1-3
Midterm Exam, Part 2: Chapters 4-5 and Chapter 15

ch1
Student: ___________________________________________________________________________
1. The advent of project management has been most profound in 
A. Automobile manufacturing
B. Construction
C. Information technology
D. The U.S. Department of Defense
E. Film making

2. A professional organization for project management specialists is the 
A. PMI
B. AMA
C. MIS
D. IPM
E. PMBOK

3. Which of the following is not considered to be a characteristic of a project? 
A. An established objective
B. A clear beginning and end
C. Complex tasks
D. Only for internal use
E. Never been done before

4. Which of the following activities is not considered a project? 
A. Developing a new software program
B. Designing a space station
C. Preparing the site for the Olympic Games
D. Production of automobile tires
E. Developing a new advertising program

5. From among the following activities, which is the best example of a project? 
A. Processing insurance claims
B. Producing automobiles
C. Writing a term paper
D. Completing a college degree
E. All of these are good examples of projects

6. Which of the following constraints is not typically found in managing projects? 
A. Time
B. People
C. Cost
D. Performance
E. Both B and D are not typical constraints

7. Which of the following choices is not one of the stages of a project life cycle? 
A. Conceptualizing
B. Defining
C. Planning
D. Executing
E. Delivering

8. In which of the following stages are project objectives established, teams formed, and major responsibilities assigned? 
A. Conceptualizing
B. Defining
C. Planning
D. Executing
E. Delivering

9. In which of the following stages is a major portion of the physical and mental project work performed? 
A. Conceptualizing
B. Defining
C. Planning
D. Executing
E. Delivering

10. In which of the following stages are you more likely to find status reports, many changes, and the creation of forecasts? 
A. Conceptualizing
B. Defining
C. Planning
D. Executing
E. Delivering

11. Which of the following characteristics is not typical of a project manager? 
A. Managing a temporary activity
B. Possesses in-depth technical knowledge
C. Managing a non-repetitive activity
D. Manages independently of the formal organization
E. Provides a direct link to the customer

12. Which of the following choices is not one of the driving forces behind the increasing demand for project management? 
A. Compression of the product life cycle
B. Knowledge explosion
C. Development of third world and closed economies
D. More emphasis on the product and less on the customer
E. Corporate downsizing

13. Which of the following statements is true? 
A. Project management is becoming a standard way of doing business
B. Project management is increasingly contributing to achieving organizational strategies
C. Project management is being used at a consistent percentage of a firm’s efforts
D. Both A and B are true
E. A, B, and C are all true

14. Project management is ideally suited for a business environment requiring all of the following except 
A. Accountability
B. Flexibility
C. Innovation
D. Speed
E. Repeatability

15. Which of the following is the number one characteristic that is looked for in management candidates? 
A. Overall intelligence
B. Works well with others
C. Experience
D. Past successes
E. Good references

16. A common rule of thumb in the world of high-tech product development is that a six-month project delay can result in a loss of product revenue share of ___ percent. The waste on failed projects and cost overruns is estimated in the neighborhood of 
A. 10
B. 20
C. 33
D. 45
E. 50

17. The waste on failed projects and cost overruns is estimated in the neighborhood of 
A. Under $100 Million
B. Over $150 Billon
C. Under $10 Billion
D. Between $90-$100 Billion
E. Between $125-$135 Billion

18. Which of the following is the first step in developing a set of strategies designed to best meet the needs of customers? 
A. Market Research
B. Define the Integrated Project Management System
C. Environmental Analysis
D. Project Selection
E. All of the above are correct

19. Integration of project management with the organization takes place with the 
A. Master budget
B. Strategy plan
C. Process of managing actual projects
D. Both b and c are correct
E. A, B, and C are all correct

20. Two dimensions within the project management process are 
A. Technical and sociocultural
B. Cost and time
C. Planned and unexpected
D. Established and new
E. Unique and reoccurring

21. Which of these is not part of the “technical dimension” of project management? 
A. WBS
B. Budgets
C. Problem solving
D. Schedules
E. Status reports

22. Which of these is not part of the “sociocultural dimension” of project management? 
A. Negotiation
B. Resource allocation
C. Customer expectations
D. Leadership
E. Politics

23. Corporate downsizing has increased the trend toward 
A. Reducing the number of projects a company initiates
B. Outsourcing significant segments of project work
C. Using dedicated project teams
D. Shorter project lead times
E. Longer project lead times

24. The importance of project management has increased due to 
A. The movement of manufacturing operations out of the U.S
B. Time to market
C. The movement toward flatter and leaner organizations
D. Both a and b are true
E. A, B, and C are all true

25. Which of the following is not typically the responsibility of a project manger? 
A. Meeting budget requirements
B. Meeting schedule requirements
C. Meeting performance specifications
D. Coordinates the actions of the team members
E. All of these are typical responsibilities

26. A series of coordinated, related, multiple projects that continue over extended time intended to achieve a goal is known as a 
A. Strategy
B. Program
C. Campaign
D. Crusade
E. Venture

27. In which of the following stages is it determined what the project will entail, when it will be scheduled, whom it will benefit, and what the budget will be? 
A. Conceptualizing
B. Defining
C. Planning
D. Executing
E. Delivering

28. Competing in a global market is influenced by 
A. Rapid change
B. Innovation
C. Time to market
D. Politics
E. A, B, and C are all true

29. Integration of all project processes and practices to improve Project Management is due to 
A. Centralization
B. Environmental analysis
C. Customer Expectations
D. Project management system
E. The organization’s environment and culture

30. From 1994 to 2009 the trend for projects late or over budget was: 
A. Significantly better
B. Slightly better
C. About the same
D. Slightly worse
E. Significantly worse

31. Like most organizational effort, the major goal of a project is to __________. 
________________________________________

32. The initial stage in the Project Life Cycle is the __________ stage. 
________________________________________

33. The final stage in the Project Life Cycle is the __________ stage. 
________________________________________

34. The __________, a professional organization for project managers, has grown from 93,000 in 2002 to more than 230,000 currently. 
________________________________________

35. In the __________ stage of the Project Life Cycle a major part of the project work, both physical and mental, takes place. 
________________________________________

36. In the _________ stage of the Project Life Cycle what will be accomplished by the project is determined along with the project’s schedule and budget. 
________________________________________

37. A common rule of thumb in the world of high-tech product development is that a six-month project delay can result in a __________ percent loss in product revenue share. 
________________________________________

38. In today’s high-tech industries the product life cycle is averaging _________ years. 
________________________________________

39. The advent of many small projects has created the need for an organization that can support __________ management. 
________________________________________

40. Increased competition has placed a premium on customer satisfaction and the development of __________ products and services. 
________________________________________

41. In some organizations, selection and management of projects often fail to support the broad-based _________ of the organization. 
________________________________________

42. WBS, schedules, and budgets are examples of the _________ dimension of the project management process. 
________________________________________

43. Leadership, teamwork, and negotiation are examples of the _________ dimension of the project management process. 
________________________________________

44. The ________ is a professional organization for project management specialists. 
________________________________________

45. One of the defining characteristics of a project is that it has a singular purpose, i.e., an established ________. 
________________________________________

46. Because projects have a defined beginning and end, the ________ is frequently used to manage the transition of a project from start to completion. 
________________________________________

47. The development of schedules, budgets, and identifying risks are common elements to the ________ stage of the project life cycle. 
________________________________________

48. The establishment of project goals, specifications, and responsibilities usually occurs in the ________ stage of the project life cycle. 
________________________________________

49. Training the customer, reassigning staff, and releasing resources occurs in the ________ stage of the project life cycle. 
________________________________________

50. Project managers are expected to ensure that appropriate trade-offs are made between the time, cost, and __________ requirements of the project. 
________________________________________

51. The growth in ________ has increased the complexity of projects because projects typically include the latest advances. 
________________________________________

52. A _________ is a series of coordinated, related; multiple projects that continue over extended time intended to achieve a goal. 
________________________________________

53. In the __________ stage, it determined what the project will entail, when it will be scheduled, whom it will benefit, and what the budget will be. 
________________________________________

54. Because of the profitability motive, project management is nearly always limited to the private sector. 
True False

55. Ten years ago major universities offered only one or two classes in project management, primarily for engineers. 
True False

56. The professional certification for project managers is a Project Management Professional (PMP). 
True False

57. Because of its flexibility, project management is equally useful in ongoing, routine work as well as unique, one-time projects. 
True False

58. One of the defining characteristics of project management is that the projects are not confined to a single department but involve several departments and professionals. 
True False

59. One of the characteristics that separate project management from other endeavors of the organization is that there are specific time, cost, and performance requirements. 
True False

60. The singular purpose of a project is often lacking in daily organizational life in which workers perform repetitive operations each day. 
True False

61. Since a construction company builds many buildings the projects after the first building do not fit the definition of a project. 
True False

62. The first stage in the Project Life Cycle is the Concept stage. 
True False

63. A major portion of the project work, both physical and mental, takes place during the Production stage of the Project Life Cycle. 
True False

64. In practice, the amount of work accomplished in each stage of the Project Life Cycle will vary greatly depending on the department or work group. 
True False

65. Because of the requirement for in-depth expertise, project management is generally restricted to specialists. 
True False

66. On the project team, the Marketing manager is the primary, direct link with the customer. 
True False

67. One of the most significant driving forces behind the demand for project management is the ever increasing expansion of the product life cycle. 
True False

68. Unlike their functional counterparts, project managers generally possess only rudimentary technical knowledge to make trade-off decisions. 
True False

69. Because of the significant loss in potential product revenue, “time to market” has become one of the most critical factors in developing new products. 
True False

70. A common rule of thumb in the world of high-tech product development is that a six-month project delay can result in a 33 percent loss in product revenue share. 
True False

71. Project management integration necessitates combining all of the major dimensions of project management under one umbrella. 
True False

72. Due to corporate downsizing significant segments of project work have been outsourced to other organizations. 
True False

73. Smaller projects in larger organizations tend not to need project management skills. 
True False

74. In the current trends, Project managers are typically required to manage many diverse systems such as; networks, bar charts, job costing, task forces, partnering and schedule, to manage projects. 
True False

75. Project management is usually restricted to specialists. 
True False

76. Project management is becoming a standard way of doing business. 
True False

77. Compare and contrast the Product Life Cycle and the Project Life Cycle.

78. Identify the five major characteristics of a project.

79. Identify and briefly describe the four stages of the Project Life Cycle.

80. “Project managers perform the same functions as other managers.” Agree or Disagree and support your decision.

81. Identify and briefly describe the six factors that are increasing the demand for project management.

82. What is meant by an “Integrated Project Management Process”?

83. Identify and briefly discuss the two key areas where project management need to be integrated within the organization.

84. Identify and briefly discuss the two key dimensions of managing actual projects.

85. The success of individual projects is typically measured by performance compared to three constraints usually placed on all projects. Identify and briefly describe those three constraints.

86. Describe what it means that a Project Manager must work with a diverse troupe of characters?

87. What is the difference between a project and a program?

88. Describe the connection between Project Management and an organization’s Strategic Plan.

ch2
Student: ___________________________________________________________________________
1. Which of the follow is not one of the commonly heard comments of project managers? 
A. Where did this project come from?
B. Why are we doing this project?
C. How can all these projects be first priority?
D. Why is this project so strongly linked to the strategic plan?
E. Where are we going to get the resources to do this project?

2. Strategy considered to be under purview of senior management is 
A. Old school thinking
B. A new school of management thought
C. Necessary in a company structure
D. Beneficial to the Project Manager
E. Depended on company goals

3. A critical factor to ensure the success of integrating the strategic plan with projects lies in a process that 
A. Is open and published for all participants to review
B. Starts with top management’s directives
C. With projects first and integrates them with the strategic plan
D. Both B and C are correct
E. A, B, and C are all correct

4. The intended outcome of strategy/projects integration is 
A. Clear organization focus
B. Best use of scare organization resources
C. Improved communication across projects and departments
D. Both A and C are correct
E. A, B, and C are all correct

5. Which of the following is a main reason why project managers need to understand their organization’s mission and strategy? 
A. They can better focus on the immediate customer
B. They can make appropriate decisions and adjustments
C. So they can be effective project advocates
D. Both B and C are correct
E. A, B, and C are all correct

6. Project managers who do not understand the role that their project plays in accomplishing the organization’s strategy tend to make all the following mistakes except: 
A. Focusing on low priority problems
B. Overemphasizing technology as an end in and of itself
C. Focusing on the immediate customer
D. Trying to solve every customer issue
E. All the above are likely mistakes

7. In today’s business environment, project managers find it valuable to have a keen understanding of 
A. Strategic management
B. Technical issues
C. Project selection process
D. Both A and C are correct
E. A, B, and C are all correct

8. The textbook indicated that ________ is the major dimension of strategic management. 
A. Responding to changes in the external market
B. Allocating scarce resources of the organization
C. Beating competition to the market
D. Both a and b are correct
E. Both a and c are correct

9. Which of the following is not true for strategic management? 
A. It should be done once each year just before developing the operating plan
B. It supports consistency of action at every level of the organization
C. It develops an integrated and coordinated long-term plan of action
D. It positions the firm to meet the needs of its customers
E. All of these are true statements

10. Which of the following is the correct order for the strategic management process? 
A. Strategies, mission, goals, projects
B. Goals, projects, mission, strategies
C. Mission, goals, strategies, projects
D. Goals, mission, strategies, projects
E. Projects, mission, strategies, goals

11. Which of the following questions does the organization’s mission statement answer? 
A. What are our long-term strategies?
B. What are our long-term goals and objectives?
C. How do we operate in the existing environment?
D. What do we want to become?
E. All of these are answered by the mission statement

12. Which of the following is not one of the traditional components found in mission statements? 
A. Major products and services
B. Profitability
C. Target customers and markets
D. Geographic domain
E. Contribution to society

13. Which of the following is not one of the characteristics of effective objectives? 
A. Realistic
B. Assignable
C. Flexible
D. Specific
E. Measurable

14. Strategy formulation includes which of the following activities? 
A. Determining alternatives
B. Creating profitability targets
C. Evaluating alternatives
D. Both a and c are correct
E. A, B, and C are all correct

15. The assessment of the external and internal environments is called _______ analysis. 
A. SWOT analysis
B. Competitive
C. Industry
D. Market
E. Strategic

16. Which of the following would not be classified as an organizational threat? 
A. Slowing of the economy
B. A maturing life cycle
C. Poor product quality
D. Government regulations
E. All of these are organizational threats

17. Which of the following would not be classified as an organizational opportunity? 
A. Increasing product demand
B. Excellent employees
C. Emerging markets
D. demographics
E. All of these are organizational opportunities

18. Which of the following is not one of the requirements for successful implementation of strategies through projects? 
A. Allocation of resources
B. Prioritizing of projects
C. Motivation of project contributors
D. Adequate planning and control systems
E. All of these are requirements

19. Which of the following terms is often used to denote a project that a powerful, high-ranking official is advocating? 
A. Sacred cow
B. Pet project
C. Political necessity
D. Special undertaking
E. Strategic ploy

20. Susie’s department is implementing many projects. She finds herself starting and stopping work on one task to go and work on another task, and then return to the work on the original task. Susie is experiencing 
A. Poor scheduling
B. Excess work burden
C. Flexible tasking
D. Multitasking
E. Burnout

21. Project selection criteria are typically classified as: 
A. Financial and non-financial
B. Short-term and long-term
C. Strategic and tactical
D. Required and optional
E. Cost and schedule

22. Which of the following financial models are typically included in project selection? 
A. Payback
B. Net present value
C. Internal rate of return
D. Both A and B are correct
E. A, B, and C are all correct

23. Projects are usually classified into all but one of the following categories. Which one is not one of the typical classifications? 
A. Compliance and emergency
B. Operational
C. Strategic
D. Political necessity
E. All of these are typical classifications

24. Which of the following is not one of the classifications for assessing a project portfolio? 
A. Sacred cow
B. Bread-and-butter
C. Pearls
D. Oysters
E. White elephants

25. A project screening matrix typically contains all of the following except: 
A. The list of available projects
B. Specific criteria
C. Weights assigned to specific criteria
D. Costs to complete each project
E. All of the above are typically contained

26. Which of the following is the reason(s) why project managers need to understand their organization’s mission and strategy? 
A. To make appropriate decisions and adjustments
B. To be effective project advocates
C. To be able to get their job done
D. Both A and B are correct
E. A, B, and C are all correct

27. In the Snapshot from Practice, Intel’s CEO has concentrated Intel’s strategy toward? 
A. Creating chips to support the digital device market
B. Eliminating AMD as a competitor
C. Strengthening Intel’s position in the PC market
D. Expanding Intel’s international market
E. Expand efforts in the mainframe computer market

28. Which of the following is not true of multi-weighted scoring models? 
A. Will include quantitative criteria
B. Will include qualitative criteria
C. Each criterion is assigned a weight
D. Projects with higher scores are considered more desirable
E. All of the above are true

29. A major project proposal form will likely include all of the following except: 
A. Project Classification
B. Schedule objective
C. Major deliverables of the project
D. How success will be measured
E. All of these are likely to be included

30. Which of the following is a common multicriteria selection model? 
A. Checklist
B. Net Present Value
C. Weighted criteria model
D. Both A and C are correct
E. All of these are common multicriteria selection models

31. Successful ________ requires strong links among mission statements, goals, objectives, and strategies. 
________________________________________

32. ________ change infrequently and may require revision only when the nature of the business changes or shifts. 
________________________________________

33. ________ translate the organization’s mission statement into specific, concrete, and measurable terms. 
________________________________________

34. ________ answers the question of how strategies will be realized, given available resources. 
________________________________________

35. Project ________ are typically high-ranking managers who endorse and lend political support for the completion of a specific project. 
________________________________________

36. A weighted scoring model such as _________ typically uses several weighted selection criteria to evaluate project proposals. 
________________________________________

37. The __________ identifies what the organization wants to become and the scope of the firm in terms of its product or service. 
________________________________________

38. In a SWOT analysis, good product quality, low debt, and an established dealer network are examples of positive ________. 
________________________________________

39. In a SWOT analysis, strong competition, reduced product demand, and a maturing product life cycle are examples of ________. 
________________________________________

40. The assessment of the internal and external environments is known as a ________. 
________________________________________

41. Apple Computers has been successful in developing a turnaround strategy that has developed new markets and increased market share. This began with strict adherence to the ________. 
________________________________________

42. The term ________ is often used to denote a project that a powerful, high-ranking official is advocating. 
________________________________________

43. Xerox’s ALTO computer and the Ford Mustang are examples of the significance that ________ can play in project management. 
________________________________________

44. Capacity overload which inevitably leads to confusion and inefficient use of scarce resources is an __________. 
________________________________________

45. The _______ financial model measures the time it will take to recover the project investment. 
________________________________________

46. The ________ financial model measures the current value of all cash inflows and outflows using management’s minimum desired rate of return. 
________________________________________

47. In classifying the kinds of projects an organization has in its portfolio, ________ projects are typically those needed to meet regulatory conditions required to operate in a region. 
________________________________________

48. In classifying the kinds of projects an organization has in its portfolio, ________ projects are typically those needed to support current operations. 
________________________________________

49. In classifying the kinds of projects an organization has in its portfolio, ________ projects are typically those that directly support the organization’s long run mission. 
________________________________________

50. Using the Project Portfolio Matrix, software upgrades and manufacturing cost reduction projects are examples of ________ projects that involve evolutionary improvements to existing products. 
________________________________________

51. In some cases organizations will use a __________ to solicit ideas for projects when the knowledge requirements for the project are not available in the organization. 
________________________________________

52. A ___________ will typically include a list of potential projects, several criteria, weights for those criteria, and criteria scores for those projects. 
________________________________________

53. The most common approach to selecting project has been to use the __________ model. 
________________________________________

54. Project Management historically has been preoccupied solely with the planning and execution of projects while strategy was under the purview of senior management. 
True False

55. The problem in many organizations is not with formulating strategies but with implementing the strategies. 
True False

56. A written mission statement provides focus for decision making when shared by organizational managers and employees. 
True False

57. Effective objectives can be created to apply only at the department level and not relating to organizational objectives. 
True False

58. Organizational objectives set targets for all levels of the organization not just for top management. 
True False

59. Formulating strategy answers the questions who and when the tasks will be performed to reach objectives. 
True False

60. Strategy formulation ends with cascading objectives or projects assigned to lower divisions, departments, or individuals. 
True False

61. If a proposed project does not meet one of the designated “must” objectives it is immediately removed from consideration. 
True False

62. Using the Project Portfolio Matrix, revolutionary commercial advances using proven technical advances are classified as Oyster projects. 
True False

63. It is necessary to have exactly the same strategic and operations criteria for different projects 
True False

64. The two axes of the Project Portfolio Matrix are technical feasibility and commercial potential. 
True False

65. Many organizations find they have three different kinds of projects in their portfolio, compliance, operational, and sacred cows. 
Refer to 2.2 
True False

66. The first step in the Strategic Management Process is to set long-range goals and objectives. 
True False

67. Reviewing and revising the organization’s mission is best achieve through the use of a SWOT analysis. 
True False

68. Opportunities and threats are the flip sides of each other; that is, a threat can be viewed as an opportunity, and vice versa. 
True False

69. The information gap refers to the lack of understanding and consensus of organization strategy among top and middle-level managers. 
True False

70. One way to offset the influence of politics on project management within an organization is to have a well-defined project selection model. 
True False

71. Lee Iacocca’s career was built on successfully leading the design and development of the highly successful Ford Mustang. 
True False

72. Generally, people working on several projects at the same time are more efficient than having several people working part-time on the same projects. 
True False

73. The NPV financial model measures the time it will take to recover the project investment. 
True False

74. Intel’s CEO, Craig R. Barrett, is envisioning Intel’s future as being beyond computers and to include all digital products as Intel’s potential customers. 
True False

75. Multi-weighted scoring models include only quantitative criteria, not qualitative. 
True False

76. “Politics and project management should not mix.” Agree or Disagree and support your position.

77. Identify and briefly discuss the three intended outcomes of integrating and linking projects with the strategic plan.

78. What is strategic management?

79. Identify and briefly describe the four components of strategic management and why they must be strongly linked.

80. The typical Strategic Management Process includes four activities. Identify and briefly describe each of those four activities.

81. Identify and briefly describe the five characteristics of effective objectives.

82. What is a SWOT analysis and how does it relate to the Strategic Management Process?

83. What is the implementation gap and why is it important to project management?

84. Identify and briefly discuss the three classes of projects usually found in an organization’s project portfolio.

85. Draw the Project Portfolio Matrix identifying the major elements on the drawing.

86. Identify and briefly describe five of the benefits of Project Portfolio Management.

87. Why is profitability alone not an adequate measure of a project’s value to an organization?

88. What are the two major shortcomings of using the Checklist approach to project selection?

ch3
Student: ___________________________________________________________________________
1. Organizational culture is best explained as organizational 
A. Personality
B. Hierarchy
C. Reporting relationships
D. Background
E. Management style

2. A good project management system provides for defining the interface between the project team and the organization in all the following areas except 
A. Authority
B. Allocation of resources
C. Development of project team members
D. Integration of the project into the organization
E. All of these are provided

3. Organizations have difficulty in creating a system for managing projects because 
A. Contrary to typical operations, projects are one-time efforts
B. Projects are multidisciplinary while organizations are usually departmentalized by discipline
C. Projects are not focused on profits
D. Both a and b are correct
E. A, B, and C are all correct

4. The structure that manages projects within the existing organizational structure is __________ organization. 
A. Functional
B. Balanced matrix
C. Weak matrix
D. Strong matrix
E. Project

5. Bill is working on a project involving the upgrading of a management information system. The project is being managed by the information systems department with coordination with other departments occurring through normal channels. He is working in a _________ organization. 
A. Functional
B. Balanced matrix
C. Weak matrix
D. Strong matrix
E. Project

6. Which of the following is an advantage of a functional project management organization? 
A. Maximum flexibility in the use of staff
B. Good integration across functional units
C. Shorter project duration
D. Strong motivation of project team members
E. All of these are advantages

7. Which of the following is a disadvantage of functional project management organization? 
A. Lack of motivation of project team members
B. Longer project duration
C. Lack of focus on the project
D. Both b and c are correct
E. A, B, and C are all correct

8. Kim is reviewing a proposed project. The scope of the project is narrow with a lot of in-depth expertise required and it will take a short period of time to complete. The best choice for organizing the project is ________ organization. 
A. Functional
B. Balanced matrix
C. Weak matrix
D. Strong matrix
E. Project

9. A project team that operates with a full-time project manager as a separate unit from the rest of the organization is structured as a ________ organization. 
A. Functional
B. Balanced matrix
C. Weak matrix
D. Strong matrix
E. Projectized

10. Which of the following combinations represents the extremes of project organization? 
A. Strong matrix and balanced matrix organizations
B. Functional and dedicated project teams
C. Project and balanced matrix organizations
D. Project and strong matrix organizations
E. Strong matrix and functional organizations

11. MegaComputers, Inc. has assigned a project manager for each of the five new-product teams. The managers as well as the project team members work on the projects on a full-time basis. The structure being used is ________ organization. 
A. Functional
B. Balanced matrix
C. Weak matrix
D. Strong matrix
E. Project

12. Which of the following structures is referred to in popular literature as a projectized form of organizations? 
A. Functional organization
B. Balanced matrix organization
C. Weak matrix organization
D. Strong matrix organization
E. Projectized organization

13. Elizabeth is considering how to structure a project team that will not directly disrupt ongoing operations. The project needs to be done quickly and a high level of motivation will be needed in order to do that. For this situation, the ______ organization would be the best choice. 
A. Functional
B. Balanced matrix
C. Weak matrix
D. Strong matrix
E. Project

14. Projectitis is most likely to occur in the _______ organization structure. 
A. Functional
B. Balanced matrix
C. Weak matrix
D. Strong matrix
E. Project

15. Computers R Us is concerned about keeping project costs low and wants to be sure that all pools of expertise are used. Additionally they want to minimize duplication of efforts across projects. Their best choice for project management structure is the _______ organization structure. 
A. Functional
B. Balanced matrix
C. Weak matrix
D. Strong matrix
E. Project

16. _________ organization is a hybrid form in which a horizontal project management structure is overlaid in the normal functional hierarchy. 
A. Functional
B. Matrix
C. Project
D. Balanced
E. A, B, and C are all correct

17. A project management system provides a framework for launching and implementing project activities within a ______ organization. 
A. Matrix
B. Balanced
C. Weak
D. Sponsor
E. Parent

18. In which of the following is the balance of authority strongly in favor of the functional managers? 
A. Weak matrix
B. Balanced matrix
C. Strong matrix
D. Strong
E. Both C and D are correct

19. The project manager has the responsibility to answer which of the following questions? 
A. What task has to be done?
B. Who will do the task?
C. How will the task be done?
D. How well has the functional input been integrated?
E. Why will the task be done?

20. Matrix management violates the management principle of 
A. Span of control
B. Unity of command
C. Parity principle
D. Empowerment
E. All of these management principles

21. All are negotiated issues except: 
A. Who will do the task?
B. Where will the task be done?
C. Why will the task be done?
D. Is the task satisfactorily completed?
E. The total cost of the project

22. The project structure that is ranked as least effective is _______ organization. 
A. Functional
B. Balanced matrix
C. Weak matrix
D. Strong matrix
E. Project

23. The project structure that is ranked as most effective for developing new products is ______ organization. 
A. Functional
B. Balanced matrix
C. Weak matrix
D. Strong matrix
E. Project

24. From the list below, which is not a primary characteristic of organization culture? 
A. Control
B. Team emphasis
C. History
D. Conflict tolerance
E. Risk tolerance

25. Factors in identifying cultural characteristics include all the following except 
A. Norms.
B. Customs.
C. Values.
D. Both B and C are correct.
E. A, B, and C are all correct.

26. Who is responsible for determining how tasks will be done in a matrix project management structure? 
A. The functional manager
B. The project manager
C. Both are responsible
D. This is no pattern of who takes responsibility
E. None of these are true

27. Who is responsible for determining what tasks have to be done in a matrix project management structure? 
A. The functional manager
B. The project manager
C. Both are responsible
D. This is no pattern of who takes responsibility
E. None of these are true

28. The Macintosh development team at Apple is a good example of what kind of project structure? 
A. Project
B. Balanced Matrix
C. Project Matrix
D. Functional Matrix
E. Functional

29. The Organizational Culture Diagnosis Worksheet classifies cultural characteristics into all of the following except: 
A. Physical characteristics
B. Public documents
C. Behavior
D. Folklore
E. Ethics

30. Which of the following cultural characteristics relates to the degree to which employees identify with the organization as a whole rather than with their type of job or field of professional expertise? 
A. Member identity
B. Team emphasis
C. Managerial focus
D. Unit integration
E. Control

31. Which of the following cultural characteristics relates to the degree to which work activities are organized around groups rather than individuals? 
A. Member identity
B. Team emphasis
C. Managerial focus
D. Unit integration
E. Control

32. Which of the following is not one of the typical forms of a project management office? 
A. Command center
B. Control tower
C. Resource pool
D. Weather station
E. All of these are typical forms of a project management office

33. Which of the following cultural characteristics relates to the degree to which groups within the organization are encouraged to operate in a coordinated or independent manner? 
A. Member identity
B. Team emphasis
C. Managerial focus
D. Unit integration
E. Control

34. Which of the following cultural characteristics relates to the degree to which management focuses on outcomes rather than on techniques and processes used to achieve those results? 
A. Risk tolerance
B. Reward criteria
C. Conflict tolerance
D. Means versus end orientation
E. Open-systems focus

35. A simple explanation of ________ is that it reflects the personality of an organization. 
________________________________________

36. The ________ organizational approach to project management uses the existing hierarchy of the organization to manage projects. 
________________________________________

37. One of the major advantages of the ________ organizational approach to project management is that specialists in different departments can temporarily be assigned to work on the project and then return to their normal work. 
________________________________________

38. Two of the major disadvantages of the ________ organizational approach to project management are that projects may lack focus and it can take longer to complete projects. 
________________________________________

39. At Apple Computer, the Macintosh development team was isolated in a separate building and given the prime directive to develop a breakthrough computer as quickly as possible. This is an example of using the ________ organizational approach to project management. 
________________________________________

40. A high level of motivation and the tendency for projects to get done more quickly are benefits of using the ________ organizational approach to project management. 
________________________________________

41. ________, a strong feeling of we-they divisiveness, can undermine the integration of the eventual outcomes of the project into mainstream operations. 
________________________________________

42. In a ________ system, there are usually two chains of command, one along functional lines and the other along project lines. 
________________________________________

43. The ________ structure is designed to optimally utilize resources by having individuals work on multiple projects as well as being capable of performing normal functional duties. 
________________________________________

44. Strong, heavyweight, or ________ is used to describe a matrix in which the balance of authority is strongly on the side of the project manager. 
________________________________________

45. One key factor that determines the relative importance of project and functional managers is the determination of which and how _________ are to be performed. 
________________________________________

46. Matrix management violates the management principle of ________. 
________________________________________

47. The ________ matrix form of project organization is likely to enhance project integration, diminish internal power struggles, and ultimately improve control of project activities and costs. 
________________________________________

48. The ________ matrix form of project organization is likely to improve technical quality as well as provide a better system for managing conflict across projects because the functional manager assigns personnel to different projects. 
________________________________________

49. The ________ matrix form of project organization can achieve better equilibrium between technical and project requirements, but it is a very delicate system to create and manage. 
________________________________________

50. __________ were originally developed as a response to the poor track record many companies had in completing projects on time, within budget, and according to plan. 
________________________________________

51. As more and more companies embrace project management as a critical vehicle for realizing corporate objectives, they are creating centralized ________ to oversee and improve the management of projects. 
________________________________________

52. Research suggests that there is a strong connection between project management structure, organization ________, and project success. 
________________________________________

53. Organization ________ refers to a system of shared norms, beliefs, values, and assumptions which bind people together, thereby creating shared meanings. 
________________________________________

54. In a Snapshot from Practice, at ________ Corporation, employees put in the hours necessary to get a job done, even if it requires staying up all night; however, they also may stay home to tend to a sick child and do makeup work at some other time. 
________________________________________

55. In a __________ PO structure, the primary function of the PMO is to track and monitor project performance. 
________________________________________

56. In a __________ PO structure, the primary function of the PMO is to provide the organization with a cadre of trained project managers and professionals. 
________________________________________

57. In a __________ PO structure, the primary function of the PMO is to improve project execution. 
________________________________________

58. ____________ refers to the degree to which the organization monitors and responds to changes in the external environment. 
________________________________________

59. ___________ refers to the degree to which employees are encouraged to be aggressive, innovative, and risk seeking. 
________________________________________

60. While organization culture is important to the overall function of an organization, it has minor influence on its project management. 
True False

61. Many organizations have struggled with project management organization because projects contradict fundamental design principals associated with traditional organizations. 
True False

62. The project form of project management structure is commonly used when one functional area plays a dominant role in completing the project or has a dominant interest in the success of the project. 
True False

63. The matrix form of project management structure is a good choice when the scope of the project is narrow and maximum flexibility in staff usage is important. 
True False

64. A disadvantage of using the functional form of project management structure is that projects generally take longer to complete. 
True False

65. The functional project team is usually physically separated from the parent organization and given the primary directive of accomplishing the objectives of the project. 
True False

66. In the projectized form of company organization the main responsibility of traditional functional departments is to assist and support the project teams. 
True False

67. The project form of project management structure is a good choice when speed of completion of the project without directly disrupting ongoing operations is important. 
True False

68. One of the major disadvantages of the project form of project management structure is that it tends to be more expensive than other forms of organizing. 
True False

69. Creating teams using the project form of project management structure results in the maximum technological expertise being brought to bear on project problems. 
True False

70. Matrix management is a hybrid organizational form in which a horizontal project management structure is “overlaid” on the normal functional hierarchy. 
True False

71. “Silver bullets” and “Tiger Teams” are terms that are frequently given to functional project management teams. 
True False

72. The relationship between the Apple II and Mac teams at Apple Computer is a good example of projectitis. 
True False

73. In a matrix form of project management, the project managers report directly to a Director of projects, who supervises all projects. 
True False

74. The three forms of matrix project management are weak, mixed, and strong. 
True False

75. Whether a matrix is weak or strong is determined by the extent to which the project manager has direct authority over project participants. 
True False

76. In a balanced matrix form of project management, the project manager is responsible for defining what needs to be accomplished while the functional managers are concerned with how it will be accomplished. 
True False

77. The matrix form of project management is predicated on tension between functional managers and project managers who bring critical expertise and perspectives to the project. 
True False

78. Project management offices were originally developed to make optimal use of scarce project resources. 
True False

79. The functional form of project management has been rated as the most effective of the various forms of organizing project teams. 
True False

80. Organizational culture refers to a system of shared norms, beliefs, values, and assumptions which bind people together. 
True False

81. Probably the most important function of organization culture is to clarify and reinforce standards of behavior within the organization. 
True False

82. There is a strong connection between project management structure, organizational culture, and project success. 
True False

83. “Projects are a smaller version of the larger organization and thus have similar fundamental design principles.” Agree or Disagree and support your conclusion.

84. Identify and briefly describe the three basic project management structures.

85. Identify and briefly describe at least two advantages and two disadvantages of having project teams report directly to an existing functional area.

86. Identify and briefly describe at least two advantages and two disadvantages of organizing project teams as dedicated teams.

87. Identify and briefly describe at least two advantages and two disadvantages of organizing project teams using the matrix management approach.

88. Identify and briefly describe the three forms of organizing projects using the matrix management approach.

89. What are Project Management Offices? Identify the three most common forms.

90. Identify and briefly describe at least five of the ten primary characteristics of organization culture as discussed in the text.

91. Culture provides three major functions within today’s organizations. Identify and briefly describe those three functions.

92. The metaphor used to describe the relationship between organizational culture and project management was that of a riverboat trip. Briefly describe that metaphor.

93. Briefly describe the task decision making responsibilities under the three project management matrix structures.

94. What is an Organizational Culture Diagnosis Worksheet and what is its purpose?

ch4
Student: ___________________________________________________________________________
1. The method used to collect information to use through all phases of the project life cycle is called 
A. Responsibility matrix
B. Organization breakdown structure
C. Work breakdown structure
D. Priority matrix
E. Work package

2. Jose is looking at a document that outlines the specific tasks and subtasks required to complete the writing of a technical support manual. The method that was probably used to develop the document is most likely 
A. Responsibility matrix
B. Organization breakdown structure
C. Work breakdown structure
D. Priority matrix
E. Work package

3. The first step in creating the necessary information to manage a project is to 
A. Establish project priorities
B. Define the project scope
C. Verify the budget available
D. Assign team members to work on the project
E. Determine the required completion date

4. Linda has just been assigned a project to develop a new advertising campaign for an established product. Her first step should be to 
A. Establish project priorities
B. Define the project scope
C. Verify the budget available
D. Assign team members to work on the project
E. Determine the required completion date

5. Research shows the most frequently mentioned barrier to project success is 
A. Not enough budget resources
B. Poor performance by team members
C. Weak project leadership
D. Poorly defined scope or mission
E. Political in-fighting

6. An expected output over the life of a project would be classified as 
A. A deliverable
B. A product
C. An end object
D. An objective
E. A target

7. The first step of project scope definition is to 
A. Analyze the strategic plan
B. Analyze the current budget plan
C. Meet with team members
D. Select team members
E. Define the overall objective to meet the customer’s needs

8. In reviewing the project plan, Susan sees that the first prototype is due by October 12. This would be best classified as a 
A. Project target
B. Limit item
C. Milestone
D. Project objective
E. Critical goal

9. The ability of 911 emergency systems to identify the caller’s phone number and location are considered to be a 
A. Technical requirement
B. Milestone
C. Project limit
D. Project exclusion
E. Project deliverable

10. Which of the following is not one of the items that would appear on a project scope checklist? 
A. Deliverables
B. Technical requirements
C. Objectives
D. Work breakdown structure
E. Reviews with customer

11. “To construct a high-quality, custom home within five months at costs not to exceed $150,000” is best classified as 
A. A deliverable
B. A milestone
C. An objective
D. A limit
E. An exclusion

12. The second step in the defining of a project would be to 
A. Analyze the strategic plan
B. Analyze the current budget plan
C. Establish project priorities
D. Select team members
E. Define the major objectives to meet the customer’s needs

13. Which of the following is not one of the basic classifications of project priorities? 
A. Profit
B. Cost
C. Time
D. Performance
E. All of these are basic classifications

14. If a project criterion indicates that the project must meet a specific date, that criterion is classified as 
A. Constrained
B. Enhanced
C. Accepted
D. Limited
E. Fixed

15. Scott has just been given a project that has a specific target date. After discussion with top management he finds that while the date is important the cost is more important and a slip in delivery would be acceptable if required to meet the cost targets. The target date is best classified as 
A. Constrain
B. Enhance
C. Accept
D. Limit
E. Optional

16. The tool used to assist in making project trade-offs between schedule, budget, and performance objectives is called a 
A. Responsibility matrix
B. Work breakdown structure
C. Project priority matrix
D. Work package
E. Criterion matrix

17. The lowest element in the hierarchical breakdown of the WBS is 
A. A deliverable
B. A work package
C. A cost account
D. A lowest sub deliverable
E. An object

18. The highest element in the hierarchical breakdown of the WBS is 
A. A work package
B. Sub deliverables
C. A cost account
D. Major deliverables
E. The project

19. All of the following are true about work packages except 
A. Consume resources
B. Assigned to only one manager
C. Have medium to long duration
D. Definitive starts and stops dates
E. All of these are true

20. All of the following are usually included in a work package except 
A. What will be done?
B. The time needed to complete the work.
C. A single person who is responsible for its completion.
D. All the costs for the work package.
E. All of these are included in a work package.

21. The integration of project work packages within the organization’s management structure is known as 
A. Responsibility matrix
B. Organization breakdown structure
C. Work breakdown structure
D. Priority matrix
E. Process breakdown structure

22. The final step in the creation of a Work Breakdown Structure is to 
A. Code the WBS for tracking
B. Assign the cost account to a manager
C. Assign the work package to a manager
D. Develop the responsibility matrix
E. All of these are included in the final step

23. The intersection of the WBS and the OBS is called the 
A. Responsibility matrix
B. Priority matrix
C. Work package
D. Cost account
E. Project overlap

24. Creating an extranet website or an internal software database system would be most closely associated with the 
A. Responsibility matrix
B. Organization breakdown structure
C. Work breakdown structure
D. Priority matrix
E. Process breakdown structure

25. If a project is small or of narrow scope and does not require an elaborate system, which of the following is a good choice? 
A. Responsibility matrix
B. Organization breakdown structure
C. Work breakdown structure
D. Priority matrix
E. Process breakdown structure

26. The project scope statement indicates that the client is responsible for training the people who will be using the equipment and that the project team will train the client’s trainers. This is an example of: 
A. Project objectives
B. Deliverables
C. Limits and exclusions
D. Technical requirements
E. Milestones

27. The tendency for the project deliverables to expand over time—usually by changing requirements, specifications, and priorities—is called: 
A. Scope erosion
B. Scope creep
C. Project bloat
D. Scope enhancement
E. Project add-ons

28. Which of the following is a good example of a Process Breakdown Structure? 
A. New car prototype
B. New software program
C. New computer hardware
D. New sports stadium
E. New project management book

29. Which of the follow is least likely to be included in a Work Package? 
A. Materials
B. Labor
C. Overhead
D. Duration
E. Responsibilities

30. The Snapshot from Practice dealing with Big Bertha II illustrated how important a project’s __________ is to the successful completion of a project. 
A. Objective
B. Deliverables
C. Technical requirements
D. Milestones
E. Limits and exclusions

31. A selective outline of the project that ensures the identification of all tasks and an understanding of what is to be done is called a _______________. 
________________________________________

32. The first step in planning any project is to ________. 
________________________________________

33. The primary purpose of the first step of defining a project is to identify the ________ for the end user and to focus project plans. 
________________________________________

34. Significant events in a project that occur at a specific point in time, are natural control points, and are easily recognized by project participants are known as ___________. 
________________________________________

35. The need for a computer to function in countries having different electrical systems is an example of a ________. 
________________________________________

36. The agreement that training will be the responsibility of the customer is an example of a project ________. 
________________________________________

37. A project parameter such as completion date or cost is ________ if it is fixed and must be met. 
________________________________________

38. Taking advantage of opportunities to reduce costs or accelerate the schedule are examples of project criteria being classified as ________. 
________________________________________

39. In making project trade-offs, a criteria that is allowed to not meet the original target is classified as ________. 
________________________________________

40. Developing a ________ provides a forum for clearly establishing priorities with customers and top management so as to create shared expectations and avoid misunderstandings. 
________________________________________

41. The result of subdividing the work of a project into smaller and smaller work elements is called ________. 
________________________________________

42. The most detailed element in the hierarchical breakdown of the project work to be accomplished is known as the ________. 
________________________________________

43. A(n) ________ is a grouping of work packages for monitoring progress and responsibility. 
________________________________________

44. Practice suggests that a work package should not exceed ________ workdays or one reporting period. 
________________________________________

45. The process of assigning specific work packages to a particular group or person within the organization is called ________. 
________________________________________

46. The final step in the defining of a project is focused on assigning ________ to each of the work packages. 
________________________________________

47. In a work breakdown structure the ________ is the focal point because all budgets, work assignments, time, cost, and technical performance come together at that point. 
________________________________________

48. Once the __________ has been established, it is the basis for making trade-off decisions later in the project. 
________________________________________

49. In a ________ the project is organized around phases or groups of activities rather than the more conventional deliverables. 
________________________________________

50. The ________ summarizes, in graphic format, the tasks to be accomplished and who is responsible for what on a given project. 
________________________________________

51. The Work Breakdown Structure is an outline of the project with different levels of __________. 
________________________________________

52. The purposes of the ____________ are to provide a framework to summarize organization unit work performance, identify organization units responsible for work packages, and tie the organizational unit to cost control accounts. 
________________________________________

53. The most commonly used method for coding the WBS is __________. 
________________________________________

54. The gradual expansion of project requirements during the execution of project is known as __________. 
________________________________________

55. The development of a work breakdown structure with appropriate dates and budget is usually accomplished in a single iteration. 
True False

56. Studies suggest that there is a strong correlation between project success and clear project scope definition. 
True False

57. Project scope describes what you expect to deliver to your customers when the project is complete. 
True False

58. One of the items included on a project scope checklist is the reviews with the customer. 
True False

59. Quality and the ultimate success of a project are traditionally defined as meeting or exceeding the expectations of the customer or management. 
Refer to Figure 4.1 
True False

60. The criteria for project success include attaining objectives relating to cost, schedule, and revenue. 
Refer to Figure 4.1 
True False

61. Statements of project scope are sometimes referred to as Statements of Work or Project Charters. 
True False

62. If a project criterion should be optimized if at all possible, it is classified as being constrained. 
True False

63. Basically, the WBS is an outline of the project with different levels of detail. 
True False

64. In general, work packages should not exceed 10 work days. 
True False

65. In a Work Breakdown Structure for a software development project, the typical structure follows the major phases of software development. 
Refer to Figure 4.4 
True False

66. Integrating a project’s work packages within the organization’s management structure is known as work breakdown structure. 
True False

67. Scope definitions are usually brief with only one or two pages being typical for small projects. 
True False

68. A work breakdown structure is frequently used on projects such as software development where the project is focused on activities rather than deliverables. 
Refer to Snapshot from Practice on Page114 
True False

69. Responsibility matrices are used primarily with small and medium sized projects and have limited use in large projects. 
True False

70. In a work breakdown structure deliverables are ignored and replaced with activities or tasks that have been grouped in phases. 
True False

71. The intersection of the WBS and the OBS represents a control point, called a cost account. 
True False

72. The most commonly used scheme for coding the work breakdown structure is to use a department project number assigned by the accounting department. 
True False

73. For large companies, the organization breakdown structure is used rather than the work breakdown structure. 
True False

74. The hierarchical work breakdown structure can be used to represent the need for information at various levels of management. 
True False

75. The intersection of work packages and the organization unit creates a project control point called a cost account. 
True False

76. Reviews with customers only refers to projects with external customers who are paying for the project. 
True False

77. A typical responsibility matrix will include not only those responsible for a specific task but also those who supply support and assistance. 
Refer to Figure 4.6 
True False

78. Identify and briefly describe the five steps in defining a project.

79. Identify and briefly describe the six elements on the recommended project scope checklist.

80. In terms of project management, what is a deliverable and give an example.

81. Identify and briefly describe the three elements that are traditionally used to measure the ultimate success of a project.

82. In project management terms, what is meant by “managing the trade-offs?”

83. Identify and briefly describe the three categories used to classify the priority of major project parameters.

84. What is a Project Priority Matrix and how would you use one?

85. What is meant by a work breakdown structure and how does it help manage projects?

86. Identify in order from broadest to most specific, the six parts of the hierarchical breakdown of the WBS.

87. What is a Responsibility Matrix and how would it be used in project management?

88. What is meant by “Scope Creep” and why is it significant to project managers?

89. What is an OBS and how would you use it to plan a project?

ch5
Student: ___________________________________________________________________________
1. The process of forecasting or approximating the time and cost of completing project deliverables is called 
A. Budgeting
B. Predicting
C. Estimating
D. Planning
E. Guesstimating

2. In practice, estimating processes are frequently classified as 
A. Top down/bottom up
B. Rough/polished
C. Precise/order of magnitude
D. Draft/final
E. Both A and B are correct

3. A typical statement in actual practice is that estimates should have a probability of being met ______ of the time. 
A. 100%
B. 98%
C. 95%
D. 90%
E. 80%

4. A good starting point for developing time and cost estimates is 
A. Past experience
B. Work packages
C. Task analysis
D. Time and motion studies
E. Work breakdown structure

5. Which of the following is not one of the factors that need to be considered to improve quality of estimates for project times and costs? 
A. Planning horizon
B. People
C. Padding estimates
D. Profit
E. Project structure

6. Ed is looking over the actual results of projects and comparing them to what was estimated. He notices that projects that took six months or longer to complete were noticeably more off the estimates. Which of the following factors is he recognizing? 
A. Padding estimates
B. Planning horizon
C. Project structure
D. People
E. Organization culture

7. Janet is forecasting how much money her department needs to support a new project. She estimates that two people and $25,000 in expenses will cover her needs. Because management typically insists on reducing forecasts by 20 percent, she increases her estimates to allow for that reduction. Which of the following factors is illustrated in this situation? 
A. Padding estimates
B. Planning horizon
C. Project structure
D. People
E. Organization culture

8. Which of the following is a good condition for top-down estimating? 
A. Cost and time important
B. Fixed price contract
C. Customer wants details
D. Internal, small project
E. All of these are good conditions for top-down estimating

9. Which of the following is a good condition for bottom-up estimating? 
A. Strategic decision making
B. Internal, small project
C. Fixed price contract
D. High uncertainty
E. Both C and D are good conditions for bottom-up estimating

10. Top-down estimates are most likely to occur during the ______ phase. 
A. Concept
B. Planning
C. Execution
D. Delivery
E. All of these are equally likely

11. ______ estimates are most likely to use low cost, efficient methods. 
A. Apportion
B. Ratio
C. Top-down
D. Bottom-up
E. All of these are equally likely

12. Which of the following methods is not considered a top-down approach to estimating project time and cost? 
A. Ratio
B. Template
C. Apportion
D. Function point
E. Learning curve

13. Jose is forecasting project time and cost for constructing a new building by multiplying the total square footage by a given dollar amount. Which of the following methods is he using? 
A. Ratio
B. Template
C. Apportion
D. Function point
E. Learning curve

14. Sean is forecasting the time and cost of developing a customized software program by looking at the number of inputs, outputs, inquires, files, and interfaces. Which of the following methods is he using? 
A. Ratio
B. Template
C. Apportion
D. Function point
E. Learning curve

15. Laura is forecasting the time and cost of developing an intranet for a new customer. Her department has completed six such intranets for customers during the last two years. Although the proposed system is about the same size as the others she estimates that it will take about 10 percent less time and money. Which of the following methods is she using? 
A. Ratio
B. Template
C. Apportion
D. Function point
E. Learning curve

16. Learning curves are more likely to apply in situations where most of the costs are 
A. Materials
B. Labor
C. Overhead
D. Evenly spread over materials, labor, and overhead
E. All of these are equally likely situations for learning curves

17. Which of the following is not one of the bottom-up approaches to estimating project time and cost? 
A. Parametric procedures applied to specific tasks
B. Estimates for the WBS work packages
C. Learning curve
D. Template method
E. All of these are bottom-up approaches

18. The approach that begins with a top-down estimate for the project and then refines estimates as the project is implemented is known as ______ method. 
A. Function point
B. Template
C. Learning curve
D. Phase estimating
E. Apportion

19. Which of the following would be the best method for projects where the final product is not known and the uncertainty is very large? 
A. Function point
B. Template
C. Learning curve
D. Phase estimating
E. Apportion

20. The accuracy of top-down estimates will typically be in the range of 
A. Minus 50% to plus 50%
B. Minus 0% to plus 75%
C. Minus 20% to plus 60%
D. Minus 35% to plus 35%
E. Minus 10% to plus 30%

21. The accuracy of bottom-up estimates will typically be in the range of 
A. Minus 50% to plus 50%
B. Minus 0% to plus 75%
C. Minus 20% to plus 60%
D. Minus 35% to plus 35%
E. Minus 10% to plus 30%

22. The cost to prepare bottom-up estimates will typically run how much more than the costs to prepare the top-down estimates? 
A. About the same
B. About twice as much
C. About three times as much
D. About four times as much
E. About five times as much

23. Typical kinds of costs found in a project include 
A. Direct costs
B. Project overhead costs
C. General and administrative costs
D. Only A and B are included
E. A, B, and C are all included

24. Project costs are typically viewed from all of the following except: 
A. Scheduled
B. Sunk
C. Actual
D. Committed
E. All of these are correct

25. Which of the following would be considered a direct project cost? 
A. Labor
B. Materials
C. Equipment
D. Both A and B are direct costs
E. A, B, and C are all considered direct costs

26. Which of the following is not one of the recommended guidelines for developing useful work package estimates? 
A. Estimates should be made by those responsible for the work
B. Use several people to estimate the same work
C. Estimates should be based on normal conditions
D. Estimates should include a normal level of contingency
E. Estimates should be independent of other projects

27. Companies like Boeing, Kodak, and IBM are using which of the following for improving the estimating process? 
A. Adjusting estimates based on individual forecasting abilities
B. Benchmarking using the experience of other companies
C. Using time and motion studies
D. Creating historical databases of previous projects
E. All of these are correct

28. Reasons why estimating time and cost are important include all of the following except: 
A. To schedule work
B. To determine how long the project should take and cost
C. To develop cash flow needs
D. To determine how well the project is progressing
E. All of the above are valid reasons

29. In a learning curve, the improvement ratio is applied to which of the following items? 
A. Direct materials
B. Direct labor
C. Overhead
D. Both A and B are correct
E. A, B, and C are all correct

30. The bottom-up approach for estimating times and costs that uses costs from past projects that were similar to the current project is known as: 
A. Detailed WBS work package estimates
B. Template method
C. Function point method
D. Time-phased cost estimates
E. Phase estimating

31. Which of the follow top-down methods is used when projects closely follow past projects in features and costs and result in costs being assigned by percentages to major segments of the project? 
A. Apportion
B. Function point
C. Phase estimating
D. Learning curve
E. Consensus

32. Resource shortages, in the form of people, equipment, or materials, is a good example of 
A. Hidden interaction costs
B. Things going wrong on a project
C. Normal conditions not applying
D. Changes in project scope
E. None of these are correct

33. People working on prototype development needing time to interact with the design engineers after the design is completed is an example of: 
A. Hidden interaction costs
B. Things going wrong on a project
C. Normal conditions not applying
D. Changes in project scope
E. None of these are correct

34. A manager getting further into a project and obtaining a better understanding of what needs to be done to accomplish a project is an example of: 
A. Hidden interaction costs
B. Things going wrong on a project
C. Normal conditions not applying
D. Changes in project scope
E. None of these are correct

35. Design flaws being revealed after the fact, extreme weather conditions, and accidents occurring are examples of: 
A. Hidden interaction costs
B. Things going wrong on a project
C. Normal conditions not applying
D. Changes in project scope
E. None of these are correct

36. Estimates that are typically based on estimates of elements found in the work breakdown structure are called ________ estimates. 
________________________________________

37. Estimates that are usually derived from analogy or mathematical relationships are called ________ estimates. 
________________________________________

38. The estimating factor known as ________ considers the decreasing accuracy of estimates as one forecasts activities that are further into the future. 
________________________________________

39. The ________ factor in estimating project times and costs can introduce errors due to staff turnover, the skills of the participants, and whether the team members have worked with each other on previous projects. 
________________________________________

40. The tendency to over-estimate project time and cost in order to improve the likelihood of meeting the estimates is known as the ________ factor. 
________________________________________

41. The prevailing belief in some firms that detailed estimating takes too much time and is not worth the effort or that it is impossible to predict the future is an example of the ________ factor. 
________________________________________

42. Using the _______ method of forecasting project time and costs is the preferred method for situations involving strategic decision-making, projects with a high degree of uncertainty, and projects with an unstable scope. 
________________________________________

43. Using the ________ method of forecasting project time and costs is the preferred method for situations where the cost and time estimates are important, in a fixed contract situation, and when the customer wants a lot of detail. 
________________________________________

44. The information necessary to conduct a bottom-up estimate of project time and costs starts with the ________. 
________________________________________

45. In the ________ method of top-down estimating, a quantitative relationship is established between the estimates and a project parameter. 
________________________________________

46. Given that a project closely follows past projects in features and costs, the ________ method of assigns costs and times to particular phases that a project will go through. 
________________________________________

47. The ________ method for estimating project time and cost uses weighted variables based on major parameters and is frequently used in the development of software. 
________________________________________

48. The ________ method of estimating project time and costs is useful for projects requiring the same task, group of tasks, or product repeated several times, especially if it is labor intensive. 
________________________________________

49. In the ________ method of estimating project time and costs past projects are used as a starting point with adjustments made based on differences in the new project. 
________________________________________

50. Probably the most reliable method for estimating time and cost is to use the _______ and to ask the people responsible for the work package to make the estimates. 
________________________________________

51. The ________ approach to estimating project time and cost begins with an overall estimate for the project and then refines estimates for various stages of the project as it is implemented. 
________________________________________

52. The cost to prepare a top-down budget will typically run ________ percent of the total project cost. 
________________________________________

53. The cost to prepare a bottom-up budget will typically run ________ percent of the total project cost. 
________________________________________

54. Project costs such as labor and materials are typically classified as ________ costs. 
________________________________________

55. The salary of the project manager and temporary rental space for the project team would be classified as ________ costs. 
________________________________________

56. Estimates should be made based on ________ conditions, efficient methods, and a normal level of resources. 
________________________________________

57. The __________ method is a top-down approach that uses the pooled experience of senior and/or middle managers to estimate the total project duration and cost. 
________________________________________

58. Costs that are not directly related to a specific project, such as advertising, accounting, and senior management, are classified as ____________. 
________________________________________

59. Project estimates should be broken down into as much detail than and with as much accuracy as possible. 
True False

60. Bottom-up-estimating is another name for overzealous top management estimates. 
True False

61. The use of past experience is almost always used primarily in the initial phases of a project. 
True False

62. Due to the averaging out of under-estimates and over-estimates, a long duration project is more likely to be on target than a short term, small project. 
Refer to Snapshot from Practice Page 140. 
True False

63. The project structure chosen to manage the project will have little impact on the actual project work to be accomplished. 
True False

64. As long as everyone in a project adds just a little padding to reduce risk, the project duration and costs are probably overstated by a small amount. 
True False

65. Organization culture can significantly influence project time and cost estimates. 
True False

66. If a project is internal to the company and relatively small, the bottom-up approach to estimating time and costs for the project is the best choice. 
Refer to Table 5.1 
True False

67. If time and costs are important to a project the top-down approach to estimating time and costs for the project is the best choice. 
True False

68. The ideal approach to estimating project time and costs is to use both the top-down and the bottom-up approach. 
True False

69. At the strategic level top-down estimating methods are used to evaluate a project proposal. 
Refer to Table 5.1 
True False

70. Top-down estimates usually are derived from someone who uses experience and/or information to determine the project duration and total cost. 
True False

71. Estimating the total cost of a house by multiplying the total square feet by a cost per square foot is an example of the apportion method of estimating costs. 
True False

72. Estimating the total cost of a project by multiplying each major function by a complexity factor is an example of the apportion method of estimating costs. 
True False

73. Phase estimating is used when a project cannot be rigorously defined because of the uncertainty of design or the final product. 
True False

74. Phase estimating uses both the bottom-up and top-down methods for estimating project time and costs. 
True False

75. Using a WBS permits the use of different levels of detail for different levels of management. 
True False

76. The Consensus method of estimating costs is a bottom-up technique. 
True False

77. The salary of the project manager and her administrative assistant is classified as direct labor costs. 
True False

78. General and Administrative costs are usually allocated as a percent of the total of a direct cost such as labor, materials, or equipment. 
True False

79. The apportion method is a top-down approach that uses the pooled experience of senior and/or middle managers to estimate the total project duration and cost. 
True False

80. The function point method of time and cost estimating is best applied to projects that have large, complex physical deliverables, such as a bridge or building. 
True False

81. Identify and briefly describe the two major categories of estimating project time and costs.

82. Why are the estimates for a project’s time and costs important for all phases of a project?

83. Identify the factors that should be considered to improve the quality of estimates for project times and costs.

84. Under what conditions would the top-down approach to estimating project times and costs be the best choice?

85. Under what conditions would the bottom-up approach to estimating project times and costs be the best choice?

86. Describe the ideal approach for a project manager to develop optimal estimates for a project’s time and costs.

87. Identify and briefly describe the five major methods of top-down estimating.

88. Identify and briefly describe the four major methods of bottom-up estimating.

89. Identify the drawbacks to an excessive level of detail in project times and costs.

90. Identify the three major categories of project costs and give an example of each.

91. “The best way to improve estimates is to collect and archive data on past project estimates and actuals.” Agree or disagree and support your answer.

ch15
Student: ___________________________________________________________________________
1. If a construction company in Dallas builds a bridge in Houston, the project would be classified as 
A. Global
B. Overseas
C. Local
D. Domestic
E. Foreign

2. If the Lincoln Log Construction Co. (based in Chicago) built an assembly plant for General Motors in Nigeria, the project would be classified as 
A. Global
B. Overseas
C. Local
D. Domestic
E. Foreign

3. If IBM built a computer system for Outback Barbie Inc. (based in Australia) at their corporate headquarters in Sydney, the project would be classified as 
A. Global
B. Overseas
C. Local
D. Domestic
E. Foreign

4. McDonald’s is creating a multinational distribution system for all of its foreign and domestic subsidiaries. The project manager is from the corporate headquarters and he manages teams from each of the countries involved. The project would be classified as 
A. Global
B. Overseas
C. Local
D. Domestic
E. Foreign

5. Which of the following is not one of the potential results for the international project manager? 
A. Personal risk
B. Absence from home
C. Missed career opportunities
D. Adverse conditions
E. All of these are potential results

6. The major issues dealing with international project management include all of the following except: 
A. Selection and training of personnel for international projects
B. Foreign currency exchange rates
C. Location of international expansion
D. Environmental factors
E. Challenge of working in a foreign culture

7. Concern about the local restrictions on toxic waste is classified as which of the following environmental factors? 
A. Economic
B. Geographic
C. Legal/political
D. Infrastructure
E. Culture

8. The growing presence of the Russian Mafia has discouraged many foreign firms from setting up operations in the former Soviet Union. This is an example of which of the following environmental factors? 
A. Security
B. Economic
C. Cultural
D. Legal/political
E. Infrastructure

9. As a response to the events of September 11, 2001, the moving of personnel, materials, and equipment across international borders has created border congestion with increased costs and time. This is an example of which of the following environmental factors? 
A. Cultural
B. Infrastructure
C. Geographic
D. Security
E. Legal/political

10. An information systems specialist reported that his performance on a project in Northern Sweden declined due to sleep deprivation during the summer months in which there was 20 hours of daylight each day. This is an example of which of the following environmental factors? 
A. Cultural
B. Legal/political
C. Geographic
D. Economic
E. Infrastructure

11. Import quotas and tariffs, and education level of the workforce are examples of which of the following environmental factors? 
A. Legal/political
B. Security
C. Cultural
D. Infrastructure
E. Economic

12. Needs for a project could include telecommunications, transportation, power, and availability of technically skilled talent. This is an example of which of the following environmental factors? 
A. Geographic
B. Infrastructure
C. Economic
D. Legal/political
E. Cultural

13. Communications difficulties because of different languages are examples of which of the following environmental factors? 
A. Geographic
B. Security
C. Cultural
D. Legal/political
E. Infrastructure

14. Which of the following can help a project manager to digest, clarify, and understand the factors leading to the selection of a specific project? 
A. Risk matrix
B. Priority matrix
C. Responsibility matrix
D. Gantt chart
E. Contingency matrix

15. Culture is a concept that encompasses all of the following except: 
A. Shared norms
B. Beliefs
C. Values
D. Economic level
E. Customs

16. American project managers have earned a reputation abroad for being very good at understanding technology but not good at understanding: 
A. Cultures
B. People
C. Local traditions
D. Local business practices
E. Laws

17. The biggest adjustment Americans typically have to make in working abroad is: 
A. Language differences
B. Adapting to the general pace of life
C. Punctuality of people
D. Both B and C are correct
E. A, B, and C are all correct

18. Kluckhohn-Strodtbeck’s cross-cultural framework includes all of the following except: 
A. Perception of God
B. Relation to nature
C. Time orientation
D. Basic nature of people
E. Activity orientation

19. The Hofstede framework includes all of the following dimensions except: 
A. Masculinity-feminity
B. Uncertainty avoidance
C. Power distance
D. Individualism versus collectivism
E. All of these are included in the Hofstede framework

20. In the Snapshot from Practice “Project Management X-files,” a key success factor which is held in much higher regard by cultures outside the U.S. is: 
A. Family ties
B. Luck
C. Hard work
D. Social status
E. Patience

21. The significance of personal relationships has created a system in which Mexicans are obligated to give preference to relatives and friends when hiring, contracting, procuring, and sharing business opportunities. This system is referred to as: 
A. Manana
B. Gringo
C. Compadre
D. Quid pro quo
E. Nepotism

22. In France, which of the following factors is considered much more important than in the U.S? 
A. Social class
B. Agreement on issues
C. Professional accomplishments
D. Being open during negotiations
E. Dedication to project completion

23. Working in the Saudi Arabia culture would include major shifts in the area of: 
A. Bragging or calling attention to oneself
B. Importance of business connections
C. Increase in use of administrative channels
D. Both B and C are correct
E. A, B, and C are all correct

24. In dealing with the Chinese, it is important to realize that they 
A. Tend to be slow in formulating a plan
B. Will change decisions quickly
C. Value time and moving forward
D. Both B and C are correct
E. A, B, and C are all correct

25. The stages of culture shock include all of the following except: 
A. Gradual adjustment
B. Irritability and hostility
C. Honeymoon
D. Repatriation
E. Adaptation

26. Which of the following is not contained in the Assessment Matrix Project Site Selection? 
A. Political stability
B. Worker skill, supply
C. Infrastructure
D. Culture compatibility
E. Utilities

27. Which of the following is not contained in the Evaluation Matrix Breakdown for Infrastructure? 
A. Transportation
B. Government support
C. Educated workforce
D. Telecommunications
E. Vendor suppliers

28. A major difference between working in Mexico and working in the United States is the perception of deadlines. This is referred to as: 
A. Manana
B. Gringo
C. Compadre
D. Quid pro quo
E. Nepotism

29. Which of the following is not true for French values? 
A. They value punctuality
B. Great importance is placed on neatness and taste
C. The French is easy to negotiate with
D. French managers see work as an intellectual exercise
E. The French consider managers to be experts

30. Which of the following is not one of the forms that stress-related culture shock takes? 
A. Fatigue
B. Sleeplessness
C. Headaches
D. Hyperactivity
E. All of these are symptoms

31. A sense of frustration in not being understood is typical of which of the following stages of culture shock? 
A. Honeymoon
B. Gradual adjustment
C. Irritability and hostility
D. Repatriation
E. Adaptation

32. When you begin to lose confidence in your abilities to communicate and work effectively in the different culture, you are in which of the following stages of culture shock? 
A. Honeymoon
B. Gradual adjustment
C. Irritability and hostility
D. Repatriation
E. Adaptation

33. When you recover from your sense of psychological disorientation and begin to function and communicate, you are in which of the following stages of culture shock? 
A. Honeymoon
B. Gradual adjustment
C. Irritability and hostility
D. Repatriation
E. Adaptation

34. Which film project was reviewed in a Snapshot from Practice? 
A. The Godfather
B. Star Wars
C. Hearts of Darkness
D. Apocalypse Now
E. Rambo

35. A(n) ________ project consists of teams formed from professionals spanning multiple countries, continents, and cultures with their work integrated for the entire enterprise. 
________________________________________

36. A(n) ________ project is one executed in a foreign country for a native firm. 
________________________________________

37. A(n) ________ project is executed in a foreign country for a foreign firm. 
________________________________________

38. The degree to which local regulations favor local workers and suppliers is an example of the environmental factor termed ________. 
________________________________________

39. The need to hire tribal bodyguards in such places as Angola and Uzbekistan is an example of the environmental factor termed ________. 
________________________________________

40. Construction projects in Southeast Asia having to accommodate the monsoon season when rainfall can be as high as 50 inches per month is an example of the environmental factor termed ________. 
________________________________________

41. Bartering is a form of compensation that is still used by some countries and organizations and is an example of the ________ environmental factor. 
________________________________________

42. A project that depends upon a high ratio of vendor suppliers, good roads, and other transportation modes, such as air and seaports is an example of the ______ environmental factor. 
________________________________________

43. The requirement for women to cover head, arms, and legs and to be accompanied by another woman or man is an example of the environmental factor termed ________. 
________________________________________

44. ________ is a system of shared norms, beliefs, values, and customs that bind people together, creating shared meaning and a unique identity. 
________________________________________

45. In the Kluckhohn-Strodtbeck Cross-Cultural Framework, the cultural issue that is measured in terms of good, evil or mixed is nature of ________. 
________________________________________

46. In the Kluckhohn-Strodtbeck Cross-Cultural Framework, the cultural issue that is measured in terms of domination, harmony, and subjugation is relationship to ________. 
________________________________________

47. In the Hofstede Framework, ________ describes the degree to which the culture emphasizes competitive and achievement oriented behavior or displays concerns for relationships. 
________________________________________

48. In the Hofstede Framework, ________ identifies whether a culture holds individuals or the group responsible for each member’s welfare. 
________________________________________

49. The length of training required for an overseas stay of 1-3 years would be around ________. 
________________________________________

50. Americans tend to be impersonal and practical when making an argument; however, ________ can be very passionate and emotional when arguing because they enjoy a lively debate. 
________________________________________

51. The ________ place great importance upon neatness and taste; therefore, when interacting with them you should pay close attention to your appearance. 
________________________________________

52. When working with the ________, it is important never to display feelings of superiority because this makes the other party feel inferior. 
________________________________________

53. Although they may be slow to formulate a plan, once the ________ decide who and what is best, they tend to stick to their decisions and make good progress. 
________________________________________

54. Decision-making with ________ is results-oriented and tends to be based on facts and expected outcomes, not on social impact. 
________________________________________

55. ___________ have a reputation for not being able to work effectively in foreign cultures. 
________________________________________

56. In many ___________ cultures certain numbers are considered lucky, while others are considered unlucky. 
________________________________________

57. The natural psychological disorientation that most people suffer when they move into a different culture than their own is called ___________. 
________________________________________

58. It typically takes ____________ months before managers operate again at full effectiveness after a lengthy foreign assignment. 
________________________________________

59. In the Snapshot from Practice, the mapping of the “River of Doubt” occured in the country of __________. 
________________________________________

60. A local project is one performed in its native country for a resident firm. 
True False

61. The constraints imposed by national and local laws are part of the environmental factors termed infrastructure. 
True False

62. The environmental factor labeled security involves the capacity of a country’s military and police forces to prevent and respond to attacks. 
True False

63. One factor that is often underestimated until the project personnel actually arrive at a foreign destination is the culture environmental factor. 
True False

64. The example of one project in Africa being paid in goat skins is an example of the environmental factor of infrastructure. 
True False

65. Infrastructure refers to a country’s or community’s ability to provide services such as power, technology, communication, or transportation required for a project. 
True False

66. For most project managers, the biggest difference in managing an international project is operating in a national culture where projects are done differently, using different project management techniques and tools. 
True False

67. One approach for the project manager to digest, clarify, and understand the factors leading to the selection of a specific project is to use a risk matrix similar to those used to evaluate other types of risks. 
True False

68. Americans have a reputation for not being able to work effectively in foreign cultures. 
True False

69. Americans tend to underestimate the importance that relationship building plays in conducting business in other countries. 
True False

70. Two of the biggest adjustments Americans typically have to make in working abroad is adapting to the general pace of life and the punctuality of people. 
True False

71. The Kluckhohn-Strodtbeck Cross-Cultural Model includes a factor called Uncertainty Avoidance that is related to a culture’s willingness to accept uncertainty and ambiguity about the future. 
True False

72. The Hofstede framework includes a factor called Activity Orientation where cultures were classified as being, doing, or controlling. 
True False

73. Hong Kong is a place where business people often call Feng shui practitioners to construction sites to make sure that the building is aligned correctly on the site. 
True False

74. Mexicans tend to perceive Americans as being cold and that most Americans look down upon them. 
True False

75. Saudi Arabians can be difficult to negotiate with because they often ignore facts no matter how convincing they may be and they also tend to be quite secretive about their positions. 
True False

76. In dealing with the French, a lot of what get done is a result of going through administrative channels, which involves a lot of red tape and efforts to avoid sidestep this can be regarded as disrespect for legal and governmental institutions. 
True False

77. Many outsiders consider the Chinese system of guanxi to be like nepotism where decisions are made based on family ties instead of an objective assessment of ability. 
True False

78. The initial stage of culture shock is irritability and hostility. 
Refer to Figure 15.6 
True False

79. If the length of stay in another culture is to be in the range of 2 to 12 months, the experiential approach to training is advisable. 
Refer to Figure 15.7 
True False

80. Mexicans tend to be more cautious and want to spend more time discussing risks and potential problems that Americans might dismiss as improbable or irrelevant. 
True False

81. Saudis attach little importance to status and rank with the bypassing of legal channels and red tape a common occurrence. 
True False

82. The former U.S. President who got involved with the River of Doubt project was Teddy Roosevelt. 
True False

83. Identify and briefly describe the four possible classifications for international projects.

84. Identify and briefly describe the six environmental factors affecting international projects.

85. What is the Kluckhohn-Strodtbeck Cross-Cultural Framework and identify the five major cultural issues it addresses?

86. Identify and discuss three guidelines/cautions in working with Mexicans on projects.

87. Identify and discuss three guidelines/cautions in working with the French on projects.

88. Identify and discuss three guidelines/cautions in working with Saudi Arabians on projects.

89. Identify and discuss three guidelines/cautions in working with Chinese on projects.

90. Identify and discuss three guidelines/cautions in working with Americans on projects.

91. Identify and briefly describe the four stages of culture shock.

92. Identify and briefly describe the cross-cultural training approach to be taken as related to the length of stay in the foreign culture.

93. How would one use a risk matrix to aide in the site selection for an international operation?

94. Identify the major areas in which project professionals assigned to foreign countries should have a minimal understanding.