Project Management Concepts Quiz

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Questions and Answers

Which project classification is an example of a regional project?

Cement project

Euro tunnel project

Irrigation project

Elementary school project (correct)

What type of project is characterized as capital intensive?

Textile industry project

Bank project

Brewery project (correct)

Irrigation project

Which of the following is NOT considered one of the five constraints that operate on every project?

Resources

Quality

Innovation (correct)

Scope

In what context is scope often referred to as a functional specification?

Engineering profession (D) Signup and view all the answers

Which type of project is classified as an independent project?

Hydroelectric power project (D) Signup and view all the answers

Which of the following classifications is an example of a service sector project?

Bank projects (C) Signup and view all the answers

What is typically the first type of quality addressed in a project?

Product quality (B) Signup and view all the answers

What is the primary challenge for project managers regarding scope?

Implementing scope changes effectively (A) Signup and view all the answers

What are the main components of cost analysis in financial projects?

Initial investment costs and operation costs (C) Signup and view all the answers

Which of the following is NOT included in fixed investment costs?

Salaries for personnel during the implementation (A) Signup and view all the answers

What is a key factor to consider when estimating sales revenue in the first year of operation?

Potential constraints on raw materials (B) Signup and view all the answers

Which component is considered part of operation costs?

Overhead costs (B) Signup and view all the answers

What is the purpose of estimating production and sales?

To project potential revenue (C) Signup and view all the answers

Which of the following costs falls under pre-operation expenditures?

Travel expenses (B) Signup and view all the answers

What is a distinguishing characteristic of a development program compared to a project?

A program has broader objectives. (B) Signup and view all the answers

What is the effect of high capacity utilization in the first year of a project's operation?

It can be unrealistic due to constraints. (C) Signup and view all the answers

Which of the following is an example of a project within a development program aimed at increasing agricultural productivity?

Construction of dams for irrigation. (C) Signup and view all the answers

How should the level of capacity utilization be adjusted in the initial years of operation?

Gradually increased over time. (B) Signup and view all the answers

What type of project involves establishing a new productive process independent of existing operations?

New investment projects (C) Signup and view all the answers

In project and program hierarchy, which level is primarily responsible for implementing specific activities?

Task (D) Signup and view all the answers

Which of the following types of projects is focused on replacing elements within an existing activity but does not significantly alter the output?

Updating projects (B) Signup and view all the answers

How do expansion projects differ from new investment projects?

Expansion projects maintain existing outputs with current technologies. (A) Signup and view all the answers

Which option correctly describes the structure of a program within a national plan?

Programs fit within specific frameworks, like health or education. (D) Signup and view all the answers

What outcome can be expected from effective development planning?

Accurate assessment of resource allocation needs. (B) Signup and view all the answers

What type of information is essential for understanding consumer demand in a market survey?

Motives for buying (D) Signup and view all the answers

Which aspect is NOT typically considered when characterizing the market for a product?

Historical marketing tactics (C) Signup and view all the answers

What does the breakdown of demand help to analyze?

Different market segments (D) Signup and view all the answers

Which qualitative method is based on gathering opinions from a panel of experts?

Jury of Executive Method (B), Delphi Method (D) Signup and view all the answers

How is effective demand determined according to market analysis?

Production + Imports - Exports - Change in stock level (D) Signup and view all the answers

Which of the following factors is NOT part of price analysis in market survey?

Selling price history (A) Signup and view all the answers

What are time series projection methods primarily used for?

Generating forecasts using historical data (C) Signup and view all the answers

Which aspect of market characterization considers future potential?

Planned expansions (B) Signup and view all the answers

What is a key characteristic of a matrix organization?

It combines functional and product departmentalization. (B) Signup and view all the answers

In a weak matrix structure, who is primarily responsible for project activities?

The project manager acts as a staff assistant. (B) Signup and view all the answers

Which matrix type attempts to create a project team feel within the matrix environment?

Strong matrix (B) Signup and view all the answers

What does the matrix structure allow for in terms of complex activities?

Facilitating coordination of complex and interdependent activities. (C) Signup and view all the answers

What must be considered when choosing the appropriate project management structure?

How much autonomy the project needs for successful completion. (B) Signup and view all the answers

What does the balanced matrix establish for a project manager?

Responsibility for defining project objectives. (A) Signup and view all the answers

What is the primary function of project managers in the matrix structure?

To negotiate with functional managers on resource allocation. (D) Signup and view all the answers

What is a disadvantage of the matrix structure?

It can lead to confusion due to dual reporting lines. (A) Signup and view all the answers

What does the concept of process quality focus on?

How well the project management process works (A) Signup and view all the answers

Why is continuous quality improvement important?

It measures and enhances process quality. (A) Signup and view all the answers

What is a critical relationship between cost and time in project management?

Reducing time generally leads to increased costs. (A) Signup and view all the answers

What is the primary objective of a project manager regarding future time?

To use it effectively and productively. (C) Signup and view all the answers

What factor should not be compromised according to the information provided?

Quality management (A) Signup and view all the answers

What is meant by the term 'quality of the deliverable'?

The standards met by project outputs (B) Signup and view all the answers

How is cost defined in the context of a project?

The expected monetary value of the project (A) Signup and view all the answers

What role does a sound quality management program play in a project?

It monitors the work and increases project success probability. (A) Signup and view all the answers

Study Notes

Addis Ababa University Course Information

College: Business and Economics
Department: Management
Program: Master of Business Administration (MBA)
Course Title: Project Management

Course Description

Aims to give students fundamental knowledge, tools, and techniques in project management,
Develops practical application skills of project management concepts,
Covers project types, life cycles, and management issues related to initiation, planning, organization, scheduling, resource allocation, implementation, and project monitoring and control,
Includes lectures, class discussions, readings, case studies, group work, and presentations.

Course Contents

Chapter One: Overview of Project and Project Management
- Project and Project Management Fundamental Project Characteristics
- Primary Objectives of a Project
- Link between Plans, Programs and Projects
- Project management: An Integrative Approach
- Integration of Project Management with Strategic Plan
- Project Management Knowledge areas
Chapter Two: Project Life Cycles (largely independent study)
- What is a project cycle and why the need
- World bank (Baum) project cycle
- UNIDO project cycle
Chapter Three: Project Management Structures/ Leadership
- Organizing Projects within the Functional Organization
- Matrix Organizations
- Project Team Organization
- Hybrid Organizations
Chapter Four: Project Appraisal Process
- Project initiation/identification
- Pre-feasibility and feasibility studies (Independent study)
- Defining the Project Task (Scope)
- Market Analysis
- Technical Analysis
- Economic Analysis
- Financial Analysis
Chapter Five: Scheduling resources and costs
- Work Breakdown Structures
- Identifying resources and sequencing activities
- Estimating the project activity times and costs
- Bar Charts
- Developing the project network
- Critical path analysis using arrow diagrams
- Reducing project duration
Chapter Six: Managing project risk (Independent review)
- Identifying the Possible Risks
- Risk Appraisal and Analysis
- Risk Register
- Dealing with Risks
Chapter Seven: Implementing the project plan, monitoring progress, performance evaluation and closure
- Project Authorization
- The project control process
- Managing Progress - Tracking Gantt chart and PERT
- Earned value cost/schedule system of performance evaluation
- Closure report
- Lessons learnt

Teaching and Learning Techniques

Lectures, class discussions, readings, case studies, group work, and presentations

Assignment - Group Work

Review of previously completed projects (industrial/developmental)
Develop a new industrial project feasibility study and project plan

Project Defining

An intervention that consists of a set of planned, interrelated activities designed to achieve defined objectives within a given budget and a specified period of time.
A series of activities aimed at bringing about clearly specified objectives within a defined time-period and with a defined budget.
Projects have four essential elements: a specified timeframe, an orchestrated approach to co-dependent events, a desired outcome, and unique characteristics, Projects often fail due to
Only the project team interested in the end result.
Lack of leadership
Project plan lacks structure.
Project plan lacks detail with respect to management functions and tools.
Under-budgeting
Insufficient resources being allocated
Project being not tracked against its plan
Team not communicating.
Project strays from original goals.

• Various classifications for types of projects • Types of Projects: New investment projects, Expansion projects, Updating projects. • Criteria for project classifications: output, scope, economic sector, and technology. • Revenue vs. capital project.

Revenue projects: completed within a single accounting period
Capital projects: stretched over multiple accounting periods. • Further Classifications: Time Horizon (short term, medium term, long term), type of output, scope (international, national, regional), and economic sector (agricultural, industrial, service).

Project Parameters

Scope (a statement that defines project boundaries, including what will and will not be done, used in functional specification and engineering statements of work)
Quality (product quality regarding the project's output and process quality regarding the effectiveness of the project management process)
Cost (monetary cost of the project, often thought of as the budget)
Time (time-frame and deadlines determined by customer or management)
Resources (personnel, equipment, and materials utilized during the project)

Project Appraisal Process

Pre-feasibility studies: Intermediate stage between opportunity study and feasibility study, aiming to determine if a project concept is worth further analysis.
Feasibility study: Examination of a project's economic, financial, technical, and environmental viability and includes the analysis of market, technical, financial and economic and social conditions.

Project Management Structures

Functional (divisional) organization: projects are implemented within existing organizational structure, coordination among different function.
Dedicated project teams: project teams are formed specifically to handle particular projects. The advantage is that the work is streamlined, however this can be difficult if the project is large in scope.
Matrix organization: combines traditional functional structure with temporary project structure.

Project Time Analysis

• Scheduling • Activities must be identified and ordered with proper relationships (dependencies) • Accurate estimates of times & resources needed • Work Breakdown Structure (WBS) – divide work into smaller parts. • Gantt charts – visual representation of project tasks against a timeline. • Network techniques– graphical representation with arrows denoting activities, circle or node denoting events.

Activity Duration

• Deterministic time estimate (CPM). • A single time estimate for each activity from expert prior knowledge and experience • Probabilistic time estimate (PERT) • Multiple time estimates : optimistic, most likely, pessimistic, based on group consensus.

Project Controlling: Monitoring and Evaluation

Concept of Monitoring & evaluation (M&E) is part of continuous supervision and assessment, crucial in project management
Monitoring assesses to what extent project activities/progress are matching the initial plan.
Evaluation is systematic and objective assessment of ongoing/completed project success and effectiveness. • Types of Evaluations: Formative (process), Summative (outcome/impact). • Issues in monitoring & evaluation and their potential causes. • What to Monitor : Performance against targets, work volume, quality, costs, attitude of staff and project stakeholders. • Criteria for successful project control: project plan as primary guide, consistent monitoring, regular reporting and communication.

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Description

Test your understanding of key project management concepts with this quiz. Explore various project classifications, constraints, cost analysis, and quality considerations. Perfect for anyone looking to enhance their project management knowledge!