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Cards In This Set
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You are considering whether to buy or make a software product.
If you want to buy, the cost is $ 80,000, and the cost of procuring and integrating the product in your company is $ 1,000. If you want to build it yourself, the product will require seven engineers working for three months. The salary of each software engineer is $ 4,000 per month. The other related miscellaneous costs budget allocated to the project is $ 2,000. Which option will you choose? 1. Buy 2. Build 3. Neither build nor buy 4. Need more information on suppliers to take a decision |
1. Buy
If you buy, the cost is: $ 80,000 + $ 1,000 = $ 81,000,
If you build, the cost is: $ 4,000 x 7 x 3 + $ 2,000 = $ 86,000 , So, it is preferable to buy. |
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You are a retail company which routinely buys goods from foreign countries. Since currency fluctuation is an important risk, you keep all other factors constant and try to find out how much your project will be impacted if the currency rate fluctuates by 5%, 10%, 20% or 25%. This helps you determine appropriate risk response. This can also be effectively shown using:
1. Beta probability distributions
2. Expected monetary value analysis
3. Tornado diagram
4. Simulation
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3. Tornado diagram
Sensitivity analysis helps to determine which risks have the most potential impact on the project. It examines the extent to which the uncertainty of each project element affects the objective being examined when all other uncertain elements are held at their baseline values. One typical display of sensitivity analysis is the tornado diagram, which is useful for comparing relative importance and impact of variables that have a high degree of uncertainty to those that are more stable.
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When referring to inputs for Develop Schedule process, responsibility (i.e., who will perform the work), activity type (i.e., summary or detailed), and WBS classification are:
1. Constraints
2. Activity attributes
3. Resource pool description
4. Activity duration estimates
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2. Activity attributes
Activity attributes can be used to identify the person responsible for executing the work, geographic area, or place where the work has to be performed, and activity type such as level of effort (LOE), discrete effort, and apportioned effort (AE). Activity attributes are used for schedule development and for selecting, ordering, and sorting the planned schedule activities in various ways within reports.
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You are the project manager of a sewage treatment plant. The government has mandated that you ensure that the neighborhood is not adversely impacted by your project plant. For your project, this directive is regarded as a/an:
1. Assumption 2. Ethical practice 3. Constraint 4. Deliverable |
3. Constraint
From a project management point of view, constraints are factors that will limit the project management team`s options. Since this is a government mandate, it becomes a constraint for your project.
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In your project, you are estimating schedule activity costs by determining the unit cost rates, e.g., staff costs per hour. All the following could be used to determine resource cost rates EXCEPT:
1. Statistical relationship between historical data and other variables 2. Gathering quotes 3. Standard rates with escalation factors (for contracts) 4. Commercial databases or seller published price lists |
1. Statistical relationship between historical data and other variables
Parametric estimating uses a statistical relationship between historical data and other variables.
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In your project, you are performing the Monitor and Control Risks process. So, you are always on the lookout for indications that a risk has occurred or is about to occur. These indications can also be referred to as:
1. Triggers 2. Warning signs 3. Risk symptoms 4. Triggers, warning signs and risk symptoms |
4. Triggers, warning signs and risk symptoms
Triggers. Indications that a risk has occurred or is about to occur. Triggers may be discovered in the risk identification process and watched in the risk monitoring and control process. Triggers are sometimes called risk symptoms or warning signs.
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In your organization, all big technical projects go through Initiate, Analyze, Design, Implement, Test, and Closeout. In this context, a project life cycle:
1. Defines the product life cycle 2. Defines the project phases 3. Contains several product life cycles 4. Has deliverables that must be completed before work starts on the next phase |
2. Defines the project phases
A project life cycle is a collection of generally sequential and sometimes overlapping project phases whose name and number are determined by the management and control needs of the organization or organizations involved in the project, the nature of the project itself, and its area of application.
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When you started creating a work breakdown structure for your project, you realized that it was too complicated to be done on a single piece of paper. You then started using a work breakdown structure numbering system to:
1. Determine the complexity of the project 2. Determine the level at which individual WBS elements are found 3. Help in automating the WBS using appropriate software 4. Present justification for the project |
2. Determine the level at which individual WBS elements are found
The WBS is finalized by establishing control accounts for the work packages and a unique identifier from a code of accounts. These identifiers provide a structure for hierarchical summation of costs, schedule, and resource information.
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As a project manager, you advocate active participation of your team members; this is because you believe in:
1. Theory Y (McGregor Model)
2. Theory X (McGregor Model)
3. Maslow`s hierarchy of needs
4. Referent Power
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1. Theory Y (McGregor Model)
Douglas McGregor advocates that most workers can be categorized according to two theories: Theory X: This assumes that the workers are inherently lazy and require supervision Theory Y: The average worker finds physical and mental effort on the job satisfying and likes his work.
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Graphical representations of situations showing causal influences, time ordering of events, and other relationships among variables and outcomes are also referred to as:
1. Cause-and-effect diagrams
2. System flow charts
3. Influence diagrams
4. Simulation diagrams
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3. Influence diagrams
Influence diagrams. These are graphical representations of situations showing causal influences, time ordering of events, and other relationships among variables and outcomes.
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Which of the following is an advantage of centralized contracting?
1. Gives easier access to contracting expertise 2. Increases company expertise in contracting 3. Gives more loyalty to the project 4. Allows a contracts person to work on a single project |
2. Increases company expertise in contracting
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Risks will be identified during which risk management process(es)?
1. Quantitative risk analysis and risk identification 2. Risk identification and risk monitoring and control 3. Qualitative risk analysis and risk monitoring and control 4. Risk identification |
2. Risk identification and risk monitoring and control
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The highest point of Maslow's hierarchy of needs is:
1. physiological satisfaction. 2. attainment of survival. 3. need for association. 4. esteem. |
4. esteem.
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Who is ultimately responsible for quality management on the project?
1. Project engineer 2. Project manager 3. Quality manager 4. Team member |
2. Project manager
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A heuristic is best described as a:
1. control tool. 2. scheduling method. 3. planning tool. 4. rule of thumb. |
4. rule of thumb.
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