Project Management Chapter 1 Review

Questions and Answers

What is the definition of a project?

A temporary endeavor undertaken to create a unique product, service or result.

What organization is recognized worldwide for setting project management standards?

PMI - Project Management Institute

What is the term for a group of related projects managed in a coordinated fashion?

Program

Which of the following are the requirements to complete the pre-project setup? (Select all that apply)

Identify the project Signup and view all the answers

Which general management skill does a project manager employ up to 90% of their time?

Communications Signup and view all the answers

What type of project request is a desktop management system for the customer-support staff?

Business Need - internal department Signup and view all the answers

Choose two responses that describe a matrix organization.

Matrix organizations can be structured as strong, weak or balanced Signup and view all the answers

A project manager has the most authority under which organizational structure?

Project-based Signup and view all the answers

Which cash flow technique was used to determine expected cash inflows of $7.8 million in today's dollars?

Discounted cash flow Signup and view all the answers

Which of the following are the steps required to validate a project? (Select all that apply)

Validate the business case Signup and view all the answers

This general management skill concerns obtaining mutually acceptable agreements with individuals or groups.

Negotiating Signup and view all the answers

What are the steps for the pre-project setup after receiving a project idea from the marketing director?

Identify the project, validate the project, write the project charter and obtain approval Signup and view all the answers

Which cash flow technique was used to determine that a project pays for itself in 23 months?

Payback Period Signup and view all the answers

What do you recommend if a business-case analysis poses significant risk?

Perform a feasibility study Signup and view all the answers

Who should make decisions about the management of the software development project?

Project manager with input from the systems analyst Signup and view all the answers

What is one disadvantage of a project-based organization?

Once the project is completed, the project team members may not have other projects to work on. Signup and view all the answers

Which of the following are reasons for bringing about a project? (Select all that apply)

Social needs Signup and view all the answers

What is the NPV determination when expected cash inflows are $7.8 million and initial investment is $9.2 million?

NPV is less than zero, so the project should be rejected. Signup and view all the answers

What form of project selection is based on reviewing the business case and similar project experiences?

Expert Judgement Signup and view all the answers

Which two elements should always be included in a business case analysis? (Select all that apply)

Alignment to the strategic plan Signup and view all the answers

Study Notes

Project Definition and Standards

A project is a temporary endeavor aimed at creating a unique product, service, or result, constrained by time and resources.
The Project Management Institute (PMI) is recognized globally for establishing project management standards.

Project Management Structure

A program consists of a group of related projects managed in a coordinated manner.
In a matrix organization, structures can be strong, weak, or balanced, where employees are assigned tasks by project managers.
In a project-based organization, project managers hold maximum authority over project directions.

Pre-Project Setup and Validation

Pre-project setup requirements include identifying the project, validating it, and preparing a project charter with necessary approvals.
Validation steps involve confirming the business case and analyzing stakeholders.

Cash Flow Techniques

Discounted cash flow analysis evaluates expected cash inflows in present value terms to determine project viability.
Payback period calculation assesses how long it takes for a project to repay its initial investment.

Management Skills in Project Execution

Communication skills are crucial, with project managers dedicating up to 90% of their time to effectively convey messages and align teams.
Negotiation skills are essential for securing mutually acceptable agreements with stakeholders.

Risk and Feasibility Analysis

Following a business-case review indicating significant risk, conducting a feasibility study is recommended to further assess viability.

Decision-Making and Project Management

The project manager is ultimately responsible for project decisions, integrating insights from experienced team members like systems analysts.

Project Selection and Justification

Project initiation can stem from various factors, including market demand, strategic opportunities, and social needs.
A project's net present value (NPV) is a decisive financial metric; for instance, if expected cash inflows do not exceed the initial investment, rejection is advisable.
Decision-making often relies on expert judgment from executives based on previous experiences with similar projects.

Business Case Elements

Every business case analysis should include alignment to the strategic plan and justification for undertaking the project.

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Description

Test your knowledge of project management concepts with this Chapter 1 review quiz. Explore definitions, key organizations, and fundamental principles necessary for successful project execution. Perfect for students looking to solidify their understanding of project management basics.