Project Management-Chapter 1 Introduction: Why Project Management?

Chapter 1 Introduction: Why Project Management?

1.1 True/False Questions

1) Projects, rather than repetitive tasks,
are now the basis for most value-added in business.

2) Projects are typically ongoing,
day-to-day activities that have goods and services as outputs.

3) A typical project stays within
functional and organizational boundaries.

4) The special nature of projects relieves
project managers from their routine of planning, organizing, motivating,
directing, and controlling.

5) A project exists outside of the
standard line organization.

6) Product life cycles are longer now than
twenty years ago.

7) The emergence of global markets has
made project management skills more critical.

8) Since a business gains market share
with day-to-day operations, senior managers value process management experience
over project management experience.

9) The initial goal and technical
specifications of the project are developed during the planning stage.

10) Client interest in a project is
highest during the termination and conceptual phases.

11) The classic triple constraint standard
for project performance is composed of time, cost, and client acceptance.

12) The business success dimension of
project success determines whether the project achieved significant commercial
success.

13) The Atkinson model for assessing
project success gathers input from all of the project’s stakeholders.

14) The use of benchmarking allows companies
that are relatively immature at project management to achieve quantum leaps of
improvement.

15) Most effective project maturity models
chart both a set of standards that are currently accepted as state-of-the-art
as well as a process for achieving significant movement towards these
benchmarks.

16) Acme uses no recognizable project
management processes and has entertaining project meetings because each member
has a unique way of reporting progress or lack thereof. Acme is most likely at
the moderate level in the generic project management maturity model.

17) Any organization, no matter how
initially unskilled in project management, can begin to chart a course toward
the type of project organization they wish to become.

18) A company’s culture has little impact
on whether projects are successfully implemented.

1.2 Short Answer Questions

1) A(n) ________ refers to ongoing,
day-to-day activities in which an organization engages while producing goods
and services.

2) The goals of a project are sometimes
called ________.

3) Projects are ________-focused.

4) Project management entails crossing
________ and ________ boundaries.

5) In general, product life cycles are
becoming ________ and product launch windows are becoming ________.

6) ________ serves as an excellent
training ground for future senior executives in most organizations.

7) The stages in a project’s development
are known as the ________.

8) Detailed specifications, schematics,
and schedules are all developed during the ________ stage.

9) Creativity is at its zenith during the
________ stage of the project life cycle.

10) The degree of risk associated with the
project is at its highest during the ________ stage.

11) The triple constraint of project
success is ________.

12) A project may be on-time,
under-budget, and perform according to specifications, but if it lacks
________, it would not be considered successful under the quadruple constraint
paradigm.

13) A project may satisfy immediate needs
by being efficient, impacting the customer positively, and achieving business
success. If the project helps open new markets, product lines or helps develop
new technology, it would also meet the ________ criterion.

14) Atkinson suggests that all groups that
are affected by a project, otherwise known as ________, should have a hand in
assessing project success.

15) ________ are used to allow
organizations to benchmark the best practices of successful project management
firms.
16) The purpose of ________ is to
systematically manage the process improvements of project delivery by a single
organization over a period of time.
17) The Center for Business Practices’
maturity model stage that describes project management as an ad hoc process is
________.
18) In general, all project management
maturity models agree that an organization that has internalized all necessary
project management principles and is actively seeking to move beyond these in
innovative ways is ________.
1.3 Multiple-Choice Questions

1) Which of the following types of
activities is more closely associated with projects rather than processes?
A) an activity that is ongoing
B) an activity that is day-to-day
C) an activity that uses existing systems
D) an activity that establishes its own
work rules

2) Which of the following is accomplished
through project management?
A) A cellular phone company activates a
new customer’s service.
B) An automotive manufacturer produces a
day’s quota of vehicles.
C) A software developer creates a new
crash-proof operating system.
D) A retailer restocks the shelves after a
day of brisk sales.

3) A project typically has:
A) a defined start and end date.
B) a defined start date but no defined end
date.
C) no defined start but a defined end date.
D) no defined start or end date.

4) The Project Management Body of
Knowledge Guide definition of a project indicates that a project is:
A) multifunctional.
B) temporary.
C) designed to consume human resources.
D) limited by a budget.

5) Project members may be from:
A) different departments.
B) other organizational units.
C) one functional area.
D) all of the above.

6) There is no such thing as a project
team:
A) with a deliverable.
B) with an ongoing, non-specific purpose.
C) with a goal.
D) with a project manager.

7) A project that results in “doing
the wrong things well” has ignored the:
A) budgetary goal.
B) technical goal.
C) customer satisfaction goal.
D) scheduling goal.

8) Which of these is NOT
characteristic of a project?
A) Projects are responsible for the newest
and most improved products, services, and organizational processes.
B) Projects are ad hoc endeavors with a
clear life cycle.
C) Projects provide a philosophy and
strategy for the management of change.
D) Traditional process management
functions of planning, organizing, and controlling do not apply to project
management.
9) Which of the following is NOT a
project constraint?
A) the budget
B) the customer requirements
C) the schedule
D) the technical specifications
10) Projects differ from classic
organizational processes because projects are:
A) discrete activities.
B) part of line organization.
C) well established systems in place to
integrate efforts.
D) multi-objective.
Answer:
A
Diff: 2
Section:
1.1 What Is a Project?
Skill:
Factual
AACSB Tag:
Reflective

11) Process management features ________
with respect to project management.
A) greater team member heterogeneity
B) greater certainty of performance
C) fewer numbers of goals and objectives
D) lower adherence to established
practices
12) Studies of IT projects reveal that:
A) initial cost estimates are overrun by
an average of 15%.
B) over 66% of IT projects were delivered
to customers but not used.
C) about 25% of all IT projects become
runaways by overshooting budgets and timetables.
D) up to 75% of software projects are
cancelled.

13) A business reality that makes
effective project management critical is the fact that:
A) products are becoming increasingly simple.
B) inflation is rampant.
C) product life cycles are compressing.
D) product launch windows are widening.

14) A product is introduced into a market,
gains the acceptance of a fickle public, and finally is supplanted by a new and
improved offering. This phenomenon is known as the:
A) product life cycle.
B) rule of 80.
C) Mendoza line.
D) beta.

15) Which of these countries is NOT
identified in the text as having a developing economy with a substantial
market?
A) Russia
B) China
C) India
D) Europe
16) Low inflation is a trigger for
improved project management skills because:
A) rampant cost increases must be passed
along to the consumer.
B) internal process improvement is
accomplished via project management.
C) lower inflation means narrower product
launch windows.
D) global markets are a prerequisite for
low inflation.
17) The technical side of project management
emphasizes:
A) team building.
B) conflict management.
C) negotiation.
D) budgeting.

18) The behavioral side of project
management emphasizes:
A) scheduling.
B) leadership.
C) planning.
D) project selection.
19) Geoffco’s project manager names three
individuals and requests a project budget of $3,000,000 for the new 8-Pod, a
backpack-sized personal music player for 8-track tapes capable of holding up to
100 songs from the ’60s and ’70s. This important step takes place during
________ of the project life cycle.
A) planning
B) conceptualization
C) execution
D) termination
20) The man-hours requirement is typically
at a peak during the ________ phase of the project life cycle.
A) planning
B) conceptualization
C) execution
D) termination
21) Individual activities and their
durations are developed during the ________ phase of the project life cycle.
A) planning
B) conceptualization
C) execution
D) termination
22) Keith Monroe nails hundreds of pieces
of culled lumber in the blazing July sun to form a parquet deck for his barn
roof. He and his assistant are clearly in:
A) the termination stage of the project
life cycle.
B) the planning stage of the project life
cycle.
C) the execution stage of the project life
cycle.
D) way over their heads.

23) The MBA redesign committee presents
the results of their five-year project to their bemused Dean. They hope it is
not just wishful thinking that they are in the:
A) planning phase.
B) conceptualization phase.
C) execution phase.
D) termination phase.

24) Client interest is typically at its
lowest during the:
A) conceptualization phase.
B) planning phase.
C) execution phase.
D) termination phase.
25) The degree of innovation and
creativity is typically at its highest during the:
A) conceptualization phase.
B) planning phase.
C) execution phase.
D) termination phase.

26) Which of these factors are essentially
complete opposites from an intensity perspective across the project life cycle?
A) Client Interest and Creativity
B) Creativity and Resources
C) Resources and Project Stake
D) Project Stake and Client Interest

27) Which of these factors are essentially
complete opposites from an intensity perspective across the project life cycle?
A) Client Interest and Uncertainty
B) Creativity and Resources
C) Uncertainty and Project Stake
D) Project Stake and Client Interest

28) Which of these factors are highly
similar from an intensity perspective across the project life cycle?
A) Client Interest and Creativity
B) Creativity and Resources
C) Resources and Project Stake
D) Project Stake and Uncertainty
29) The amount of corporate investment is
typically at its lowest in the:
A) conceptualization phase.
B) planning phase.
C) execution phase.
D) termination phase.

30) The amount of corporate investment is
typically at its highest in the:
A) conceptualization phase.
B) planning phase.
C) execution phase.
D) termination phase.

31) The degree of risk associated with the
project is typically at its highest during the:
A) conceptualization phase.
B) planning phase.
C) execution phase.
D) termination phase.

32) The technical challenges that the
project has to face are typically at their lowest during the:
A) conceptualization phase.
B) planning phase.
C) execution phase.
D) termination phase.
33) The commitment of financial, human,
and technical resources is highest during the:
A) conceptualization phase.
B) planning phase.
C) execution phase.
D) termination phase.
34) The most recent addition to the four
criteria of project success is:
A) time.
B) cost.
C) performance.
D) client acceptance.

35) The project success criteria that
functions as a quality check is:
A) time.
B) cost.
C) performance.
D) client acceptance.
36) Which of the following statements
about project success criteria is best?
A) Project cost is an external performance
measure.
B) Completion time is an internal
performance measure.
C) Client acceptance is an internal
performance measure.
D) Client acceptance is often referred to
as conducting a “quality” check.

37) A design project is completed on time,
under budget, to the customer’s satisfaction, and in adherence to the technical
specifications agreed. The new product takes the market by storm and everyone
associated with the project receives a coveted gold star. Under the four
dimensions of project success model, the project still needs to show:
A) future potential.
B) business success.
C) impact on the customer.
D) efficiency.

38) The dimension of project success that
is realized first (chronologically) is:
A) future potential.
B) business success.
C) impact on the customer.
D) efficiency.

39) The dimension of project success that
is realized last (chronologically) is:
A) future potential.
B) business success.
C) impact on the customer.
D) efficiency.

40) The dimension of project success that
is measured by both an internal and external criterion is:
A) future potential.
B) business success.
C) impact on the customer.
D) efficiency.
41) In the Atkinson model of project
success, a project’s impact to the surrounding community would be classified
as:
A) an element of the iron triangle.
B) a stakeholder benefit.
C) an organizational benefit.
D) a strategic goal.

42) In the Atkinson model of project
success, stakeholder benefits not accrued by the organization might include:
A) improved effectiveness.
B) improved efficiency.
C) social and environmental impact.
D) increased profits.

43) All groups that are affected by a
project are known by this name:
A) Ombudsmen
B) Team members
C) Minions
D) Stakeholders

44) An information system project might be
assessed by which of the following criteria?
A) Maintainability
B) Reduced waste
C) Time
D) Personal development
45) ABC company compares the way they
manage projects with the way rival NBC company manages projects. ABC company is
engaged in:
A) corporate espionage
B) ring level 0.
C) competitive benchmarking.
D) cutting edge practices.

46) Project management maturity models are
NOT used to:
A) compare practices against an industry standard.
B) define a systematic route for improving
project management practices.
C) evaluate current project management
practices.
D) ascertain all stakeholders relevant to
a project in the conceptualization phase.

47) A spider-web diagram is useful for:
A) showing company performance on a number
of criteria simultaneously.
B) collecting data on how a competitor
manages projects.
C) identifying industry standards for
project management maturity.
D) coaching, evaluating, and auditing
projects.

48) The project maturity model developed by
the Center for Business Practices would have ________ rings if a spider-web
diagram were used.
A) three
B) four
C) five
D) six
49) The most basic level in Kerzner’s
project management maturity model is:
A) common language.
B) common processes.
C) initial process.
D) ad hoc.

50) Carnegie Mellon’s SEI model, ESI
International’s project framework, and the Center for Business Practices all
call their highest level of maturity:
A) continuous improvement.
B) optimizing.
C) ganbei.
D)
comprehensive.

51) The author’s synthesis of all
well-known maturity models states that moderate project management maturity is
characterized by:
A) ad hoc processes.
B) little support from upper management.
C) project management training programs.
D) active exploration of ways to improve
project management.
52) Which statement regarding the Project
Management Institute’s Project Management Body of Knowledge (PMBoK) is best?
A) The PMBoK consists of seven knowledge
areas of project management skills and activities.
B) Each element of the iron triangle is
represented by its own area.
C) Project risk management is part of the
integration section.
D) The institute’s position that a
properly planned project will not require any changes precludes the need for
change control in the model.
1.4 Essay Questions

1) What is a project?

2) What are key differences between
projects and processes?3) What roles do traditional process
management duties of planning, organizing, and controlling play in project
management, if any?

4) Why is project management challenging?

5) Why are projects important?

6) What changes in the business
environment have necessitated a greater use of project management skills?

7) Why is project management considered an
excellent training ground for future senior executives in many organizations?

8) Describe the activities that occur at
each stage of a project.

9) Where in the project life cycle are the
intensity level of resources and client interest at their highest? Why is this
the case?

10) Rank the determinants of project
success from most important to least important and justify your rankings.

11) Discuss the internal and external measures
of project success.

12) Describe the elements of the Atkinson
model of project success.

13) One model of project success offered
in the chapter looks beyond the current project into the future. Comment on the
elements of this model and their impact along the timeline from project
completion to well beyond this point in time.

14) What are project management maturity
models used for?

15) Describe the spider-web methodology
for displaying project management maturity and present any five components of
project management practice that can be displayed using this technique.

16) Describe the project management
characteristics of firms that reside at the lowest levels of the ESI, SEI,
Center for Business Practice, and Kerzner maturity models and characteristics
of firms that reside at the highest levels of these models.

17) What are the three levels of the
generic project management maturity model and what are the characteristics of a
company at each level? Provide examples of organizations at each of these
levels and support your choices.