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)
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Which general management skill does a project manager employ up to 90% of their time?
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What type of project request is a desktop management system for the customer-support staff?
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Choose two responses that describe a matrix organization.
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A project manager has the most authority under which organizational structure?
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Which cash flow technique was used to determine expected cash inflows of $7.8 million in today's dollars?
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Which of the following are the steps required to validate a project? (Select all that apply)
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This general management skill concerns obtaining mutually acceptable agreements with individuals or groups.
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What are the steps for the pre-project setup after receiving a project idea from the marketing director?
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Which cash flow technique was used to determine that a project pays for itself in 23 months?
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What do you recommend if a business-case analysis poses significant risk?
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Who should make decisions about the management of the software development project?
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What is one disadvantage of a project-based organization?
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Which of the following are reasons for bringing about a project? (Select all that apply)
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What is the NPV determination when expected cash inflows are $7.8 million and initial investment is $9.2 million?
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What form of project selection is based on reviewing the business case and similar project experiences?
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Which two elements should always be included in a business case analysis? (Select all that apply)
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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.