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You are a project manager working on a project to market a new product. The deliverables of the project have been established, and the project work has begun. A contract to deliver the deliverables has been signed. The customer who has signed the contract has telephoned you to request additional work to be done on the project. This work will affect the budget but not the schedule of the project. This project has a high priority with your company. What should you so next? Do what the customer asks you to do and add the additional requirements to the original contract. Refuse the request and send a memo to your management explaining the situation. Respond to the customers request by explaining the change procedure and askingthat he or she submit a request for change. Arrange to meet with the project team to discuss this change.
You are the project manager for a high visibility project. The margin on this project is low,and it is extremely important that the cost estimates for the work on the project be accurate. While reviewing the cost estimates for this project you notice that one of the cost estimates for an element in the WBS is 10% higher than two previous projects for very similar work. What should you do? Accept the estimate because you trust all of the people on your project team, and they are responsible for estimates Reduce the estimate and add the additional budget to the management reserve Ask the person responsible for the estimate to explain the difference and bring supporting information to you Reduce the estimate and add the additional budget to the contingency reserve.
You are managing a project in a foreign country. In this country there is a normal practice for business people to exchange gifts when very large contracts, such as the one you are working on, are signed. The gift is of a greater value than your companys policy for gift exchange will allow. You have given a gift of similar value to the customers representative already. What should you do? Take the gift Contact your companys management and seek for assistance Refuse the gift graciously, explaining your companys policy Ask the customers representative to give the gift to your manager.
You are the manager of a research group that is developing a new chemical material.You hire a person from a competing company who has a great deal of expertise in this area. The person contributes greatly to the progress of your project. During conversation with the person you determine that many of this persons ideas were developed by the competing company. What do you do? Tell the person that he or she should not mention that the ideas came from another company Sign a nondisclosure agreement with this person before he or she leaves your company Accept the new ideas Investigate the employee for security reasons.
You are managing a project that is in process. A large and unexpected problem occurs that will cause a delay in the schedule in excess of the contingency schedule for the project. What should you do? Look at other tasks in the schedule and see which ones should be reduced to allow time for this problem to be worked Reduce testing on the completed tasks Require mandatory overtime for the project team Speak to the stakeholders about getting additional time and budget for the project.
You are the project manager for a large project. Some members of the project team have come to you and asked that they be permitted to work on a flexible schedule. Some of the other team members feel that it is important that all team members be on site at all times unless they are absent for business reasons. What should you do? Turn down the request for flexible time schedules Accept the request for flexible time schedules Arrange a meeting of the project team members and allow them to decide Discuss this problem with your manager and act on the results of the meeting.
You are the project manager for a project that has high visibility. Your manager wants you to prepare a presentation for him to present at a conference. Most of the material in the presentation will be facts that are the results of your project. Your manager intends to present the material under his own name. Your name will not appear. What should you do? Refuse to work on the presentation unless you are listed as a coauthor Do the work as you were told by your manager Present your own presentation Meet with your managers manager and discuss the problem.
You are managing a project and the customers engineer visits your facility on an inspection and general getting acquainted tour. During the tour they make the comment that the parts that are being designed should be in stainless steel instead of plain steel with enamel. What should you do? Authorize the change in design to your engineers Continue with the present design Speak to the visiting engineers and discuss having an informal meeting between your engineers and the visiting engineers.
Ask the visiting engineers to submit a change proposal to the change system.
Which of the following is the example of a conflict of interest? You are the fourth cousin of a vendor supplying parts to a project in your company You are the owner of a company that is supplying parts to a project that you are managing You receive a gift from a supplier of parts for your project A supplier tells you sensitive information, in confidence, that allows you to select another supplier for your project.
You are the project manager for a large project that is completed on time and on budget. The customer and all of the stakeholders are pleased with the results. As a direct result of the successful completion of the project, your manager approves a bonus of $25,000 for you. There are fifteen members of the project team. One of the people in the project team has been a very low contributor to the project; the other fourteen have all been above standard. What should you do with the money?
Keep the money yourself; you deserve it. And the manager gave it to you Divide the money equally among all the team members Ask the team members how they would divide the money Divide the money equally among the team members except for the substandard team member.
One of the members of your project team comes to you and says that he heard that one of the suppliers to the project had given a substantial gift to one of the project team members in hopes that the team member would favor his company with a purchase order. The company was favored with a purchase order for the parts. What should you do? Talk to the person and get him or her to give back the gift Investigate the matter completely Cancel the purchase order with the supplier Meet with your manager and discuss the problem.
Decomposing the major deliverables into smaller, more manageable components to provide better control is called: Scope planning Scope definition Scope baselining Scope verification.
Any numbering system that is used to monitor project costs by category such as labor, supplies, or materials, for example, is called Chart of accounts Work breakdown structure Universal accounting standard Standard accounting practices.
A person who is involved in or may be affected by the activities or anyone who has something to gain or lose by the activity of the project is called a: Team member Customer Stakeholder Supporter.
A project manager is assigned to a project early in the project lifecycle. One of the things that must be done is to do a justification for the project. Since very little information is known about the project, the estimates are considered to be rough estimates. The following table is the project managers estimate of the cash flow that will take place over the next five years.
End of Year Cash Flow In Cash Flow Out
1 0 500,000
2 300,000 90,000
3 400,000 100,000
4 100,000 175,000
5 50,000 35,000
What is the payback period for this project? One year Two years Three years Four years.
A project manager is assigned to a project early in the project lifecycle. One of the things that must be done is to do a justification for the project. Since very little information is known about the project, the estimates are considered to be rough estimates. The following table is the project managers estimate of the cash flow that will take place over the next five years.
End of Year Cash Flow In Cash Flow Out
1 0 500,000
2 300,000 90,000
3 400,000 100,000
4 100,000 175,000
5 50,000 35,000
What is the net cash flow at the end of five years? $50,000 - $50,000 $850,000 $100,000.
A project manager is assigned to a project early in the project lifecycle. One of the things that must be done is to do a justification for the project. Since very little information is known about the project, the estimates are considered to be rough estimates. The following table is the project managers estimate of the cash flow that will take place over the next five years.
End of Year Cash Flow In Cash Flow Out
1 0 500,000
2 300,000 90,000
3 400,000 100,000
4 100,000 175,000
5 50,000 35,000
If the net present value for each of the cash flows were calculated at a 10% interest rate, the net present value cash flow at the end of five years would be: Greater than the total cash flow without the net present value applied Less than the total cash flow without the net present value applied The same as the total cash flow without the net present value applied Unable to be calculated with the information supplied.
A group of related projects that are managed in a coordinated way that usually include an element of ongoing activity is called a: Major project Project office Program Group of projects.
During the full life cycle of the project, a plot of the projects expected expenditure will usually follow a characteristic S shape. This indicates that: There is a cyclic nature to all projects Problems will always occur in the execution phase There are high expenditure during closeout The bulk of the project budget will be spent in the execution phase.
A temporary endeavor undertaken to create a new product or service is called a: New product development Project Program Enterprise.
A project manager makes a narrative description of the work that must be done for her project. This is called a: Project plan Control chart Statement of work Project objective.
An example of scope verification is: Reviewing the performance of an installed software module Managing changes to the project schedule Decomposing the WBS to a work package level Performing a benefit-cost analysis to determine if we should proceed.
The process of establishing clear and achievable objectives, measuring their achievement, and adjusting performance in accordance with the results of the measurement is called Strategic planning Contingency planning Detailed planning Management by objectives.
Configuration management is: Used to ensure that the description of the project product is correct and complete The creation of work breakdown structure The set of procedures developed to ensure that project design criteria are met A mechanism to track budget and schedule variances.
A project manager is employed by a construction company and is responsible for the furnishing of the completed building. One of the first things that the project manager for this project should do is to write a: Work breakdown structure Budget baseline Project charter Project plan .
A project manager is creating a work breakdown structure for her project. In the work break down structure, the lowest level of the breakdown for the project manager is called: Activity Task Work package Cost account.
A project manager is reviewing the scope of the project and the scope baseline of the project. This includes which of the following? The original project schedule, budget, and scope The original project description and project charter The original scope of the project plus or minus any scope changes The current budget of the project.
A project manager has just become the manager of a project. The document that recognizes the existence of the project is called: The statement of work The project assignment The project charter The product description.
A project manager is reviewing the work breakdown structure for her project. The WBS of the project represents: All the tangible items that must be delivered to the client All the work that must be completed for the project The work that must be performed by the project team All the activities of the project.
A manager who manages a group of related projects is called a: Project manager Project expediter Program coordinator Program manager.
A new project has begun. The project charter has been written and the project manager has been assigned. The project manager is preparing the work breakdown structure for the project. The WBS is typically used for: Explaining the scope of the project relevant to the client The basis for organizing and defining the total scope of the project Showing the resource conflicts that exist in the project The logical relationship between tasks in the project.
During the life of a project, the project will go through several phases initiating, planning, execution, and closeout. Which phase of the project is likely to have the greatest amount of its funding spent? Initiating Planning Executing Closeout.
During the course of the project it is important that the stakeholders be informed of the progress of the project. One of the reports that is frequently used is a progress report. Which of the following is true about progress report? They allow stakeholders to judge the performance of the project according to its plan They are generally considered to be overkill on very small projects They require the use of earned value reports They must be produced by the project manager.
The coordinated undertaking of interrelated activities directed toward a specific goal that has finite period of performance is a: Project charter Project Set of project objectives Program.
The document that is proof of upper managements commitment to the project and gives the authority to manage the project to the project manager is called: The project plan The project goals and objectives The project charter The project definition.
A project manager works in a company favoring the weakest authority for the projectmanager the type of organization that holds the project manager to be the weakest is: Projectized organization Strong matrix organization Weak matrix organization Balanced matrix organization.
A project manager has been asked by the client to meet the promise date of the project. The project manager analyzes the schedule before promising a date to the customer. The project manager uses the program evaluation and review technique to evaluate the project schedule. She decides that based on the PERT calculations she can promise a delivery date of June 30. The expected value of the project completion date is May 30. If the project manager is willing to accept a 5% probability that the project will be delivered later than June 30, what is the standard deviation of the duration of the activities on the critical path? Assume a five-day workweek. Ten days Fifteen days One-half month One month.
A project is proposed to a customer. Price and schedule for delivery are agreed upon. The work breakdown structure is agreed to as well. The customer requests that one of the milestones of the project be completed by a certain date. The project schedule is reviewed, and it is found that the expected completion date for this milestone is considerably earlier that the date requested by the customer. The date for this milestone is which of the following? Consideration Summary activity Constraint Suggestion.
A project manager is managing a project. The original scope baseline of the project was budgeted at $100,000. Since work on the project started there have been seventeen authorized and approved changes to the project. The changes have a value of $17,000 and the cost of investigating them prior to their approval was $2,500. What is the current budget for the project? $100,000 $114,500 $117,000 $119,500.
In a very large project having a budget of $5 million and a project team of over one hundred persons, the project manager constructs a work breakdown structure. The project manager will do the WBS to the detail level of which of the following? Task Activity WBS element Work package.
Which of the following is true? The critical path is the path through the network that has the highest total duration The critical path is the path with the least amount of free float The critical path is the list of activities that have zero float The critical path is the list of activities that have critical risks associated with them.
Resource leveling will generally: Reduce the time needed to do the project Increase the total time necessary to do all the tasks Reduce the over utilization of resources Reduce resources to the lowest skill that is possible.
A task was scheduled to use two persons, full time, and take two weeks to complete. Instead, the project manager was only able to assign one person to this task. At the end of two weeks, the person assigned to the task was 75% complete. What is the cost performance index? 0.75 1.5 1.33 .5.
Five tasks are scheduled to be completed in sequence. Each task has a finish-start relationship with the next task. Each has one day of total float. As of today, task one and two have been completed on schedule. How many days of float remain in the schedule of these tasks? Two One Zero Four.
Which of the following is considered to be a simulation technique? PERT analysis GERT analysis Monte Carlo analysis Critical path method.
The main difference between the two types (ADM, arrow diagramming method, and PDM, precedence diagramming method) of the critical path method (CPM) of scheduling is: Placement of the activity on the logic diagram line Arrow diagramming method (ADM) is a deterministic method, whereas the
precedence diagramming method (PDM) is a probabilistic method Precedence diagramming method (PDM) is a deterministic method, whereas the arrow diagramming method (ADM) is a probabilistic method Precedence diagramming method (PDM) is a more accurate method.
The project schedule is not used to determine: The start and finish dates of the activities Occasional changes to the activity listing The total float of the activities The projects budget.
A project manager wants to make a trip to California by car. The project manager knows how many miles it will be to drive to California, the current price of gasoline, and how many miles the car will go on a gallon of gasoline. From this information he or she can calculate the estimated cost of the gasoline for the trip. This is a form of what kind of estimating technique? Definitive Analogous Parametric Quantitative.
A project manager wants to make a trip to California by car. The project manager knows someone who has made this trip before. This person has a similar car to the one that the project manager has, and the person has kept good records on the money spent for fuel on the trip. The distance that the project manager will travel is 10% farther than the other persons trip. By multiplying the cost of fuel reported by the other person by 1.1, the project manager is performing what kind of estimate? Definitive Analogous Parametric Quantitative.
To distinguish top-down estimates from bottom-up estimates, it would be correct to say that the bottom-up estimate would be: Less accurate About equal in accuracy to the top-down estimate More accurate No different to perform than the top-down estimate.
A project manager and the project team identify several specific risks in a project. The expected value of these risks is estimated at $10,000. The impact on the project brought about by these risks is estimated at $40,000. What value should be entered into the management reserve for these risks? $10,000 $40,000 $0 $25,000.
A project manager and the project team identify several specific risks in a project. The expected value of these risks is estimated at $10,000. The impact on the project brought about by these risks is estimated at $40,000. What value should be entered into the contingency reserve for these risks? $10,000 $40,000 $0 $25,000.
What characteristic best describes the cost baseline? Total budget for the project Time-phased budget for the project Total budget for the project including the contingency budget Total budget for the project including the contingency budget and the management reserve.
A project is formed to produce a product that will be used for transporting people. Costs that are associated with the project that occur after the delivery of the product to the customer are considered to be what kind of cost? Prorated cost Expenses Life cycle cost Expected value.
A project team receives an approved change request from customer. The team has previously estimated that the cost to implement this change is $10,000. The customer has agreed to pay this amount for the additional work. The customer realizes that there is a 50 percent chance that this change will not work and will later be removed. What change, if any, should be made in the budget? The project budget should not be increased The project budget should be increased by $15,000 The project budget should be increased by $10,000 The project budget should be increased by $5,000.
The act of doing anything that will help to bring future project performance into line with the project plan is called: Budget update Revised cost estimate Corrective action Contingency planning.
Which of the following choices would be an acceptable cause for rebaselining a $10 million project? The monthly consumer price index on some of the commodities used on the project has been identified as having gone up by 1.6%, an increase of 46% over the 1.1% that had been budgeted The client has authorized a $10,000 addition to the scope of the project The contractors company has instituted a quality program on which it has pledged to spend $1 million during the next year The productivity in the drafting department has been shown to be lower than anticipated, which has resulted in 1,000 additional hours, a 78% increase over what was budgeted.
In terms of earned value reporting, a project is considered complete when: The BAC is equal to the PV The EV is equal to the AC The PV is equal to the AC The BAC is equal to the EV.
The time-phased cost of the project that reflects the expenditures rather than the consumption of a resource that will be used to measure and monitor cost performance on a project is the: Spending plan Cost baseline WBS Schedule.
A large piece of equipment is needed for the project. It will be retained and used after the project is completed. The equipment has a value of $500,000, and it has a scrap value of $50,000 at the end of its useful life of ten years. If the sum of the years digits method of depreciation is used, what is the depreciation that is taken at the end of the third year? $81,818 $90,900 $65,250 $72,500.
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