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Project Management 2016 - Pinto - Quiz - Chapter 5

MBA Project Management

PROJECT MANAGEMENT 2016

Case study guides and online resources (2016)

Project Management: Achieving Competitive Advantage, 4th Edition, 2016, Jeffrey K. Pinto

 

 

Project Management: Achieving Competitive Advantage, 4e (Pinto)

Chapter 5   Scope Management

 

1) Which statement about scope management is BEST?

  1. A) Scope management must take place during the conceptual development, full definition, execution, and termination phases.
  2. B) Project goals don't matter in scope management as long as the budget is not exceeded.
  3. C) Scope management is accomplished in a single step by any one project team member.
  4. D) Scope management can begin once a project hits operational level.

Answer:  A

Diff: 1

Section:  5.0 Introduction

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Concept

AACSB:  Application of Knowledge

 

2) The Scope Management chapter begins and ends with the quote, "It's a dream until you write it down. Then it's:

  1. A) Etched in stone."
  2. B) A scope statement."
  3. C) A documented dream."
  4. D) A goal."

 

Answer:  D

Diff: 1

Section:  5.0 Introduction

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Concept

AACSB:  Application of Knowledge

 

3) Which of these is NOT an element of project scope management?

  1. A) Project champion
  2. B) Scope statement
  3. C) Project closeout
  4. D) Control systems

Answer:  A

Diff: 1

Section:  5.0 Introduction

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Concept

AACSB:  Application of Knowledge

 

 

4) Scope management for a project begins with:

  1. A) A work package.
  2. B) An organization breakdown structure.
  3. C) A statement of goals.
  4. D) A configuration statement.

Answer:  C

Diff: 1

Section:  5.1 Conceptual Development

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Concept

AACSB:  Application of Knowledge

5) Restrictions that affect project development are:

  1. A) Problems.
  2. B) Constraints.
  3. C) Stop-limits.
  4. D) Limitations.

Answer:  B

Diff: 1

Section:  5.1 Conceptual Development

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Concept

AACSB:  Application of Knowledge

 

6) The cat-skinning project management team considers the many ways to accomplish their objective before settling on one technique as part of their:

  1. A) Information gathering step.
  2. B) Need statement step.
  3. C) Project objectives step.
  4. D) Alternative analysis step.

Answer:  D

Diff: 2

Section:  5.1 Conceptual Development

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Application

AACSB:  Application of Knowledge

 

 

7) There were conceivably an infinite number of courses he could take during his final semester, but since he worked 8-5, Jake needed to take night classes. He also needed to ensure that the class was offered at the Edmond campus rather than Midwest City, so he could get home in time for his favorite programs. This whittled down the list of possibilities to Systems Analysis Design and Differential Equations. "Neither of these courses is very attractive. I may have to rethink my priorities," Jake wondered aloud. "The work schedule and wrestling schedule are significant:

  1. A) Scope statements."
  2. B) Alternatives."
  3. C) Constraints."
  4. D) Goals."

Answer:  C

Diff: 2

Section:  5.1 Conceptual Development

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Concept

AACSB:  Application of Knowledge

8) Conceptual development for a project concludes with:

  1. A) Project objectives.
  2. B) Alternative analysis.
  3. C) Project delivery.
  4. D) Team dissolution.

Answer:  A

Diff: 2

Section:  5.1 Conceptual Development

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Concept

AACSB:  Application of Knowledge

 

9) One consequence of conceptual development that proceeds with a problem that is poorly understood is:

  1. A) Problem restatement.
  2. B) Cost overruns.
  3. C) Problem clarification.
  4. D) Task confusion.

Answer:  B

Diff: 2

Section:  5.1 Conceptual Development

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Concept

AACSB:  Application of Knowledge

 

 

10) Which statement about conceptual development is BEST?

  1. A) A project goal of "significantly increase computer performance" is better than "improve processing speed 20%" because the team may exceed 20%.
  2. B) It is vital that a best approach to solving a problem be locked in as soon as possible to save analysis time downstream.
  3. C) Conceptual development begins with the process of reducing the project's overall complexity to a more basic level.
  4. D) Project goals should be optimistic to the point of excess.

Answer:  C

Diff: 2

Section:  5.1 Conceptual Development

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Application

AACSB:  Application of Knowledge

 

11) The statement of work should contain:

  1. A) Information on the key objectives for the project.
  2. B) A brief and general description of the work to be performed.
  3. C) Expected project outcomes.
  4. D) All of these are elements of a statement of work.

Answer:  D

Diff: 2

Section:  5.1 Conceptual Development

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Concept

AACSB:  Application of Knowledge

12) A statement of work identifies:

  1. A) A need.
  2. B) A project organization.
  3. C) Members of the project team.
  4. D) Alternatives.

Answer:  A

Diff: 2

Section:  5.1 Conceptual Development

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Concept

AACSB:  Application of Knowledge

 

 

13) The description and scope section of a statement of work would contain statements regarding:

  1. A) Environmental risks.
  2. B) Termination of project information.
  3. C) Expected benefits.
  4. D) Major milestones.

Answer:  C

Diff: 3

Section:  5.1 Conceptual Development

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Concept

AACSB:  Application of Knowledge

 

14) Expected commitments from other departments in support of the project would most likely be detailed in the:

  1. A) Approach section of the SOW.
  2. B) Risks and concerns section of the SOW.
  3. C) Acceptance criteria section of the SOW.
  4. D) Resource requirements section of the SOW.

Answer:  D

Diff: 2

Section:  5.1 Conceptual Development

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Concept

AACSB:  Application of Knowledge

 

15) A testing plan would be outlined in which section of a statement of work?

  1. A) Acceptance criteria
  2. B) Risks and concerns
  3. C) Description and scope
  4. D) Approach

Answer:  A

Diff: 2

Section:  5.1 Conceptual Development

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Concept

AACSB:  Application of Knowledge

 

16) The step that reflects the formal "go ahead" given to the project to commence once the scope definition, planning documents, and other contractual documents have been prepared and approved is the:

  1. A) Go ahead.
  2. B) Send off.
  3. C) Work authorization.
  4. D) Work release.

Answer:  C

Diff: 1

Section:  5.3 Work Authorization

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Concept

AACSB:  Application of Knowledge

 

17) In the case of projects developed for external clients, work authorization typically addresses:

  1. A) Budget linkage.
  2. B) Audit trail establishment.
  3. C) Resource requirements.
  4. D) Contractual obligations.

Answer:  D

Diff: 1

Section:  5.3 Work Authorization

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Concept

AACSB:  Application of Knowledge

 

18) All projects are promised in terms of the specific functionality or performance criteria they will meet. The key feature of the contractual documentation that specifies this functionality or criteria is the:

  1. A) Contractual requirements.
  2. B) Valid consideration.
  3. C) Contracted terms.
  4. D) Contractual performance.

Answer:  A

Diff: 3

Section:  5.3 Work Authorization

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Concept

AACSB:  Application of Knowledge

 

 

19) The exchange that is specified by the contractual documentation documents is:

  1. A) The terms.
  2. B) Valid consideration.
  3. C) Reciprocity.
  4. D) Fair and unencumbered.

Answer:  B

Diff: 2

Section:  5.3 Work Authorization

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Concept

AACSB:  Application of Knowledge

20) The section of the contractual documentation that identifies what are the excusable delays, allowable costs, and criteria for inspection is called the:

  1. A) Bylaws.
  2. B) Amendments.
  3. C) Contracted terms.
  4. D) Dissolution factors.

Answer:  C

Diff: 3

Section:  5.3 Work Authorization

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Concept

AACSB:  Application of Knowledge

 

21) A project management firm that promises to do everything for a major project and hand over a fully functional, ready-to-use deliverable is performing under a(n):

  1. A) Umbrella contract.
  2. B) All-inclusive contract.
  3. C) Cost-plus contract.
  4. D) Turnkey contract.

Answer:  D

Diff: 3

Section:  5.3 Work Authorization

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Concept

AACSB:  Application of Knowledge

 

 

22) Which pair of statements is BEST?

  1. A) Cost-plus contracts are prone to budget overruns while turnkey contracts are typically underbid by the contractor.
  2. B) Cost-plus contracts are prone to a budget surplus while turnkey contracts are typically underbid by the contractor.
  3. C) Cost-plus contracts are prone to a budget surplus while turnkey contracts are typically overbid by the contractor.
  4. D) Cost-plus contracts are prone to budget overruns while turnkey contracts are typically overbid by the contractor.

Answer:  D

Diff: 3

Section:  5.3 Work Authorization

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Application

AACSB:  Application of Knowledge

23) Your professor moonlights to make ends meet during the summer months and has a knack for painting houses. You agree to pay $500 over whatever the materials and equipment rental cost for the job and delight in sipping lemonade in the shade watching your poor professor perform under a(n):

  1. A) Cost-plus contract.
  2. B) Lump-sum contract.
  3. C) Time and material contract.
  4. D) Fixed wage contract.

Answer:  A

Diff: 3

Section:  5.3 Work Authorization

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Application

AACSB:  Application of Knowledge

 

24) The reporting frequency, report recipients, and content required during project execution is laid out by:

  1. A) The organizational breakdown structure.
  2. B) Scope reporting.
  3. C) The information system architecture.
  4. D) A need-to-know basis.

Answer:  B

Diff: 1

Section:  5.4 Scope Reporting

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Concept

AACSB:  Application of Knowledge

 

 

25) Updates on how the project is performing against milestones can be accomplished by issuing a report containing:

  1. A) S-curves.
  2. B) Schedule status.
  3. C) Earned value.
  4. D) Technical performance.

Answer:  B

Diff: 1

Section:  5.4 Scope Reporting

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Concept

AACSB:  Application of Knowledge

 

26) A graphical display of costs against project schedule is called a(n):

  1. A) S-curves.
  2. B) Gantt chart.
  3. C) Radar chart.
  4. D) Budget plot.

Answer:  A

Diff: 1

Section:  5.4 Scope Reporting

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Concept

AACSB:  Application of Knowledge

27) An earned value report shows:

  1. A) How much money has actually been spent so far on the project.
  2. B) Slippages in performance measures for the work product.
  3. C) The budgeted value of work performed.
  4. D) Slippages in time against planned measures.

Answer:  C

Diff: 2

Section:  5.4 Scope Reporting

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Concept

AACSB:  Application of Knowledge

 

28) Scope management is the function controlling a project in terms of its goals and objectives during the execution phase.

Answer:  FALSE

Diff: 1

Section:  5.0 Introduction

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Concept

AACSB:  Application of Knowledge

 

 

29) The statement of work is a detailed narrative description of the work required for a project.

Answer:  TRUE

Diff: 1

Section:  5.1 Conceptual Development

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Concept

AACSB:  Application of Knowledge

 

30) A comprehensive statement of work includes an estimate of time and costs, resource requirements, and the scope of the work to be performed.

Answer:  TRUE

Diff: 1

Section:  5.1 Conceptual Development

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Concept

AACSB:  Application of Knowledge

 

31) Work authorization functions as the formal "It's OK to begin work," on the project.

Answer:  TRUE

Diff: 1

Section:  5.3 Work Authorization

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Concept

AACSB:  Application of Knowledge

 

32) The terms lump-sum contract and turnkey contract are interchangeable.

Answer:  TRUE

Diff: 1

Section:  5.3 Work Authorization

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Concept

AACSB:  Application of Knowledge

33) A lump-sum contract requires the customer to pay for the full delivered price of the project before any work is done.

Answer:  FALSE

Diff: 2

Section:  5.3 Work Authorization

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Concept

AACSB:  Application of Knowledge

 

 

34) Scope reporting not only identifies the type of information that will be reported, but also to whom it will be reported and with what frequency.

Answer:  TRUE

Diff: 2

Section:  5.4 Scope Reporting

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Concept

AACSB:  Application of Knowledge

 

35) Rank the key steps in information development from most to least important and justify your rankings.

Answer:  Rankings will vary, but the key steps in information development are and always will be:

Problem or need statement — why is there a need in search of a solution, what is the underlying problem, and what does the project intend to do?

Information gathering — research to gather all relevant data for the project.

Constraints — time, budget, and client constraints that may affect project development.

Alternative analysis — different solution methods for the problem targeted by the project.

Project objectives — final objectives for the project in terms of outputs, required resources, and timing.

Diff: 2

Section:  5.1 Conceptual Development

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Application

AACSB:  Application of Knowledge

 

36) What is a statement of work and what are the key elements it contains?

Answer:  A statement of work (SOW) is a detailed narrative description of the work required for a project, containing objectives for the project, a brief and general description of the work to be performed, expected project outcomes and any funding or schedule constraints. The author indicates that elements in an effective SOW include introduction and background including a problem statement, a technical description of the project, and timeline and milestones.

Diff: 2

Section:  5.1 Conceptual Development

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Application

AACSB:  Application of Knowledge

 

37) Develop a statement of work (SOW) for a spectacular project of your choosing. Include all of the key elements for a SOW as detailed in your book.

Answer:  Examples will vary depending on the spectacular project that is selected. The statement of work (SOW) should contain the following elements: objectives for the project, a brief and general description of the work to be performed, expected project outcomes and any funding or schedule constraints. In addition, the author indicates that elements in an effective SOW include introduction and background including a problem statement, a technical description of the project, and timeline and milestones.

Diff: 2

Section:  5.1 Conceptual Development

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Application

AACSB:  Application of Knowledge

 

38) What is work authorization?

Answer:  Work authorization is the step that reflects the formal "go ahead" given to the project to commence once the scope definition, planning documents, management plans, and other contractual documents have been prepared and approved. Work authorization consists of a formal sign off and for external clients it typically addresses contractual obligations.

Diff: 2

Section:  5.3 Work Authorization

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Application

AACSB:  Application of Knowledge

 

39) What are three common elements in most work authorization contracts?

Answer:  The elements common to most work authorization contracts are the contractual elements, valid consideration, and contracted terms. Contractual elements include the promised specific functionality, or performance criteria, that will be met. Consideration is an element of all valid contracts and covers the items that are voluntarily promised in exchange for a reciprocal commitment by another party. The contracted terms make clear the commitments agreed to by both parties, i.e., what are excusable delays, allowable costs, statements of liquidated damages in the case of nonperformance, the criteria for inspection, and who has responsibility for correction of defects.

Diff: 2

Section:  5.3 Work Authorization

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Application

AACSB:  Application of Knowledge

 

40) What is the difference between a turnkey contract and a cost-plus contract? Include in your discussion the advantages and disadvantages of each.

Answer:  A turnkey or lump-sum contract is one where the project organization assumes all responsibility for successful performance. Turnkey contracts work well when the contract is well-understood by all parties so initial cost estimates are reasonable. If project elements are missed or difficulties arise, the contractor is left holding the bag for all unforeseen costs. A cost-plus arrangement is one where the contractor's fee is fixed in advance and the requesting party pays for all costs plus the fee. The risk is shifted to the requesting party with this arrangement since there is little incentive for the contractor to hold the line on costs.

Diff: 2

Section:  5.3 Work Authorization

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Application

AACSB:  Application of Knowledge

 

41) You have decided to install a naturalistic outdoor pool in your backyard, replete with caves, live plants, boulders and sparkling waterfalls, capable of comfortably accommodating the party guests you occasionally. Which would better suit you, a turnkey contract or a cost-plus contract? Support your reasoning and enumerate the potential weaknesses of both approaches.

Answer:  Answers will vary, likely due to the assumptions students make about their personal financial circumstances. A turnkey or lump-sum contract is one where the project organization assumes all responsibility for successful performance. Turnkey contracts work well when the contract is well-understood by all parties so initial cost estimates are reasonable. If project elements are missed or difficulties arise, the contractor is left holding the bag for all unforeseen costs. A cost-plus arrangement is one where the contractor's fee is fixed in advance and the requesting party pays for all costs plus the fee. The risk is shifted to the requesting party with this arrangement since there is little incentive for the contractor to hold the line on costs.

Diff: 2

Section:  5.3 Work Authorization

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Application

AACSB:  Application of Knowledge

 

42) What is contained in scope reporting and what function does it serve?

Answer:  Scope reporting determines the types of information that will regularly be reported, who will receive copies of this information, and how this information will be acquired and disseminated. One type of information collected commonly is cost performance – against budget and schedule and exception reports. Schedule status and technical performance against plans are also regularly included in scope reporting. Project managers and other key stakeholders, such as the members of the project team, clients, top management and other internal and external groups affected by the project, might all be on the reporting list.

Diff: 2

Section:  5.4 Scope Reporting

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Application

AACSB:  Application of Knowledge

43) The Project Management Research in Brief for Chapter 5 discusses Information Technology (IT) Project "Death Marches." What are the facts about such projects and what conclusions does the article present?

Answer:  The brief does not paint a flattering portrait of IT project success. The average IT project is likely to be 6 to 12 months behind schedule and 50% to 100% over budget. Of course, the numbers vary with the size of the project, but the results still suggest that companies should expect their IT projects to lead to wasted effort, enormous delays, burnout, and many lost weekends while laboring for success with the cards stacked the other way. The death march project is typically one in which the project is set up for failure through the demands or expectations that the company places on it, leaving the expectation that the project team will pull off a miracle. Death march projects are defined as projects "whose parameters exceed the norm by at least 50%." To avoid setting the stage for future death march projects, we need to start with the end in mind and determine whether the goals and conditions (budget, personnel assigned, and schedule) are conducive to project success.

Diff: 2

Section:  5.4 Scope Reporting

LO:  5.1: Understand the importance of scope management for project success.

Classification:  Application

AACSB:  Application of Knowledge

 

44) Any measurable, tangible, verifiable outcome, result, or item that must be produced to complete a project or part of a project is a:

  1. A) Product.
  2. B) Deliverable.
  3. C) Tangible.
  4. D) Work product.

Answer:  B

Diff: 2

Section:  5.2 The Scope Statement

LO:  5.2: Understand the significance of developing a scope statement.

Classification:  Concept

AACSB:  Application of Knowledge

 

45) The organizational structure for the project team, including policies and procedures, is the:

  1. A) Work breakdown structure.
  2. B) Rules statement.
  3. C) Scope statement.
  4. D) Management plan.

Answer:  D

Diff: 1

Section:  5.2 The Scope Statement

LO:  5.2: Understand the significance of developing a scope statement.

Classification:  Concept

AACSB:  Application of Knowledge

 

46) Which of these scope statement steps creates the all-important bureaucracy for a project?

  1. A) The management plan
  2. B) The work breakdown structure
  3. C) The scope baseline
  4. D) The project goal criteria

Answer:  A

Diff: 2

Section:  5.2 The Scope Statement

LO:  5.2: Understand the significance of developing a scope statement.

Classification:  Concept

AACSB:  Application of Knowledge

 

47) The mountaineers all agreed that their quest to build a bridge between the two peaks of Mount Kilimanjaro was a noble one, but they had no idea how long it would take to complete until they finished their:

  1. A) Project goal criteria.
  2. B) Work breakdown structure.
  3. C) Scope baseline.
  4. D) Management plan.

Answer:  B

Diff: 2

Section:  5.2 The Scope Statement

LO:  5.2: Understand the significance of developing a scope statement.

Classification:  Concept

AACSB:  Application of Knowledge

 

48) The new Magic Pan coming soon to your area usually serves 20,000 customers in the first year of operation. Construction plans include site selection, foundation, framing, finishing, egg-laying, and chicken acquisition. The scope statement step that determines relationships among these steps, e.g. does the chicken acquisition come before the egg laying, etc., is the:

  1. A) Project goal criteria.
  2. B) Management plan.
  3. C) Work breakdown structure.
  4. D) Scope baseline

Answer:  C

Diff: 2

Section:  5.2 The Scope Statement

LO:  5.2: Understand the significance of developing a scope statement.

Classification:  Application

AACSB:  Application of Knowledge

 

 

49) Budget and schedule information for each activity in a project is contained in the:

  1. A) Project goal criteria.
  2. B) Management plan.
  3. C) Work breakdown structure.
  4. D) Scope baseline.

Answer:  D

Diff: 2

Section:  5.2 The Scope Statement

LO:  5.2: Understand the significance of developing a scope statement.

Classification:  Concept

AACSB:  Application of Knowledge

50) The final step in the process of systematically laying out all pre-work information is the creation of the:

  1. A) Scope baseline.
  2. B) Work breakdown structure.
  3. C) Management plan.
  4. D) Project goal criteria.

Answer:  A

Diff: 2

Section:  5.2 The Scope Statement

LO:  5.2: Understand the significance of developing a scope statement.

Classification:  Concept

AACSB:  Application of Knowledge

 

51) The PMBoK definition stating, "a process that sets a project's scope by breaking down its overall mission into a cohesive set of synchronous, increasingly specific tasks," is for the:

  1. A) Project plan.
  2. B) Work breakdown structure.
  3. C) Deliverable statement.
  4. D) Scope expansion.

Answer:  B

Diff: 2

Section:  5.2 The Scope Statement

LO:  5.2: Understand the significance of developing a scope statement.

Classification:  Concept

AACSB:  Application of Knowledge

 

 

52) What are work breakdown structure elements that must be completed to conclude the project deliverables?

  1. A) Activities
  2. B) Tasks
  3. C) Work packages
  4. D) Milestones

Answer:  C

Diff: 2

Section:  5.2 The Scope Statement

LO:  5.2: Understand the significance of developing a scope statement.

Classification:  Concept

AACSB:  Application of Knowledge

 

53) The lowest level in work breakdown structure contains the:

  1. A) Atoms.
  2. B) Activities.
  3. C) Finite elements.
  4. D) Work packages.

Answer:  D

Diff: 1

Section:  5.2 The Scope Statement

LO:  5.2: Understand the significance of developing a scope statement.

Classification:  Concept

AACSB:  Application of Knowledge

54) The highest level of work breakdown structure is the:

  1. A) Project.
  2. B) Deliverable.
  3. C) Subdeliverable.
  4. D) Work package.

Answer:  A

Diff: 1

Section:  5.2 The Scope Statement

LO:  5.2: Understand the significance of developing a scope statement.

Classification:  Concept

AACSB:  Application of Knowledge

 

 

55) The second level in work breakdown structure contains the:

  1. A) Projects.
  2. B) Deliverables.
  3. C) Subdeliverables.
  4. D) Work packages.

Answer:  B

Diff: 1

Section:  5.2 The Scope Statement

LO:  5.2: Understand the significance of developing a scope statement.

Classification:  Concept

AACSB:  Application of Knowledge

 

56) Which of these statements about subdeliverables is BEST?

  1. A) Subdeliverables have durations of their own.
  2. B) Subdeliverables consume resources.
  3. C) Subdeliverables have direct assignable costs.
  4. D) Subdeliverables summarize the outcomes of work packages.

Answer:  D

Diff: 2

Section:  5.2 The Scope Statement

LO:  5.2: Understand the significance of developing a scope statement.

Classification:  Application

AACSB:  Application of Knowledge

 

57) The costs attached to subdeliverables:

  1. A) Are the summary of the work packages that support it.
  2. B) Are called phantom costs.
  3. C) Should be subtracted directly from deliverable costs.
  4. D) Are not recoverable unless explicitly stated in the work breakdown structure.

Answer:  A

Diff: 2

Section:  5.2 The Scope Statement

LO:  5.2: Understand the significance of developing a scope statement.

Classification:  Concept

AACSB:  Application of Knowledge

 

58) When a supporting document functions as a project control device throughout the project's development, it is NOT prepared in advance:

  1. A) Due to time constraints.
  2. B) As it is a dynamic document.
  3. C) Since micromanaging can occur.
  4. D) Because control devices are left to project completion.

Answer:  B

Diff: 2

Section:  5.2 The Scope Statement

LO:  5.2: Understand the significance of developing a scope statement.

Classification:  Concept

AACSB:  Application of Knowledge

 

59) When work is organized into cost control accounts:

  1. A) The work no longer needs to be tracked by the project manager.
  2. B) The subdeliverables become cost centers instead of profit centers for the project.
  3. C) These are assigned to the units performing project activities.
  4. D) These budgets can then be assigned back to the project manager's department.

Answer:  C

Diff: 2

Section:  5.2 The Scope Statement

LO:  5.2: Understand the significance of developing a scope statement.

Classification:  Concept

AACSB:  Application of Knowledge

 

60) Project team members can identify who should be notified of task completion status by checking the:

  1. A) Control account.
  2. B) Linear responsibility chart.
  3. C) Statement of work.
  4. D) Monthly joint review report.

Answer:  B

Diff: 1

Section:  5.2 The Scope Statement

LO:  5.2: Understand the significance of developing a scope statement.

Classification:  Concept

AACSB:  Application of Knowledge

 

61) Until a project has gone through work breakdown structure, it is impossible to determine the relationships among the constituent activities.

Answer:  TRUE

Diff: 2

Section:  5.2 The Scope Statement

LO:  5.2: Understand the significance of developing a scope statement.

Classification:  Concept

AACSB:  Application of Knowledge

62) The scope baseline is a document that provides a summary description of each reporting relationship along with a schedule for meetings and reports.

Answer:  FALSE

Diff: 2

Section:  5.2 The Scope Statement

LO:  5.2: Understand the significance of developing a scope statement.

Classification:  Concept

AACSB:  Application of Knowledge

 

63) A work package may be composed of one or more subdeliverables.

Answer:  FALSE

Diff: 2

Section:  5.2 The Scope Statement

LO:  5.2: Understand the significance of developing a scope statement.

Classification:  Concept

AACSB:  Application of Knowledge

 

64) A work package may consist of more than one milestone.

Answer:  TRUE

Diff: 2

Section:  5.2 The Scope Statement

LO:  5.2: Understand the significance of developing a scope statement.

Classification:  Concept

AACSB:  Application of Knowledge

 

65) What is a scope statement and what are the key steps in the scope statement process?

Answer:  The scope statement reflects a project team's best efforts at creating the documentation and approval of all important project parameters prior to proceeding to the development phase. The key steps of the scope statement process identified in the text are:

Establishing the project goal criteria.

Developing the management plan for the project.

Establishing a work breakdown structure.

Creating a scope baseline.

Diff: 2

Section:  5.2 The Scope Statement

LO:  5.2: Understand the significance of developing a scope statement.

Classification:  Application

AACSB:  Application of Knowledge

 

66) List any five important points to remember when defining work packages.

Answer:  The author lists seven important points to remember about defining a project work package:

The work package typically forms the lowest level in the work breakdown structure.

A work package has a deliverable result.

A work package has one owner.

A work package may be considered by its owner as a project in itself.

A work package may include several milestones.

A work package should fit organizational procedures and culture.

The optimal size of a work package may be expressed in terms of labor hours, calendar time, cost, report period, and risks.

Diff: 2

Section:  5.2 The Scope Statement

LO:  5.2: Understand the significance of developing a scope statement.

Classification:  Application

AACSB:  Application of Knowledge

 

67) What is hierarchy among the deliverable, work package, subdeliverable, and project? Create an example starting with the most macro element, cascading through to the lowest element.

Answer:  The highest (most macro) level is the project, followed by in increasing order of specificity, the deliverables, subdeliverables, and work packages. Examples will vary.

Diff: 2

Section:  5.2 The Scope Statement

LO:  5.2: Understand the significance of developing a scope statement.

Classification:  Application

AACSB:  Application of Knowledge

 

68) In order to allocate costs more precisely, a company will assign:

  1. A) Bar codes to each activity.
  2. B) Activity codes to each subdeliverable.
  3. C) WBS codes to each activity.
  4. D) Level 4 codes to each package element.

Answer:  C

Diff: 1

Section:  5.2 The Scope Statement

LO:  5.3: Construct a Work Breakdown Structure for a project.

Classification:  Concept

AACSB:  Application of Knowledge

 

 

69) Organizational breakdown structure (OBS) allows companies to:

  1. A) Assign the duties of tracking costs to the customer's accounting function.
  2. B) Circumvent the onerous task of work breakdown structure.
  3. C) Issue a preliminary TPS report.
  4. D) Define the work to be accomplished.

Answer:  D

Diff: 2

Section:  5.2 The Scope Statement

LO:  5.3: Construct a Work Breakdown Structure for a project.

Classification:  Concept

AACSB:  Application of Knowledge

70) Provide an example of work breakdown structure and indicate what purpose WBS serves.

Answer:  Work breakdown structure (WBS) divides the project into its component sub-steps in order to begin establishing critical interrelationships among activities. Examples may vary, but if the project is to lead students on a study tour of Mexico, major components might be transportation, housing, business visits, recreation visits, and curriculum. Each of these major headings can be broken down further, for example, transportation can be segmented into air and ground transportation, with timelines established for securing firm reservations, paying deposits, and getting directions.

Diff: 2

Section:  5.2 The Scope Statement

LO:  5.3: Construct a Work Breakdown Structure for a project.

Classification:  Application

AACSB:  Application of Knowledge

 

71) Provide an example of a work package and a WBS code and indicate the information they provide.

Answer:  A work package is the lowest (most detailed) level in work breakdown structure (WBS). Some firms use work package and task interchangeably, using the terms to represent an individual activity. A WBS code is a number assigned to each activity so that the accounting function may track costs more precisely. The accounting function may track activities that are over or under budget and otherwise maintain financial control of the development process. Examples may vary, but a work package for a curriculum redesign might be to design the syllabus for an introductory course and the WBS code would be 2.3.8.

Diff: 2

Section:  5.2 The Scope Statement

LO:  5.3: Construct a Work Breakdown Structure for a project.

Classification:  Application

AACSB:  Application of Knowledge

 

 

72) What is organization breakdown structure?

Answer:  Organization Breakdown Structure (OBS) is the outcome of assigning work to be performed into cost control accounts that are assignable to various units within the company (performing those project activities). The OBS allows companies to define the work to be accomplished and assign it to the owners of the work packages.

Diff: 2

Section:  5.2 The Scope Statement

LO:  5.3: Construct a Work Breakdown Structure for a project.

Classification:  Application

AACSB:  Application of Knowledge

 

73) A project manager can identify personnel who will be directly responsible for each task in the project's development by using a(n):

  1. A) Responsibility assignment matrix.
  2. B) Milestone designation chart.
  3. C) Merrill report.
  4. D) Work package report.

Answer:  A

Diff: 2

Section:  5.2 The Scope Statement

LO:  5.4: Develop a Responsibility Assignment Matrix for a project.

Classification:  Concept

AACSB:  Application of Knowledge

 

74) Create a 4x4 responsibility assignment matrix as an example and indicate the information gleaned from this tool.

Answer:  Examples may vary. A responsibility assignment matrix (RAM) also called a linear responsibility chart, is a matrix that lists members of the project team responsible for each activity. The RAM also shows other significant members of the team at each stage as well, organized according to how that activity requires their support. The RAM identifies where a person may go for support, who should be notified when the task is complete, and whose signature is required for sign-off. The tool provides a clear picture to all project team members and keeps all lines of communication open with appropriate communication flowing. An example is shown in Figure 5.10.

 

Diff: 2

Section:  5.2 The Scope Statement

LO:  5.4: Develop a Responsibility Assignment Matrix for a project.

Classification:  Application

AACSB:  Application of Knowledge

 

75) Develop a responsibility assignment matrix for your semester project. Provide a brief (two or three sentence) description of your project and its current state.

Answer:  Examples may vary — if the semester project is a group project, then there will be more to work with than if students have individual semester projects. If the latter is the case, then this question probably shouldn't be assigned. The responsibility assignment matrix should list members of the project team responsible for each activity. The RAM also shows other significant members of the team at each stage as well, organized according to how that activity requires their support. The RAM identifies where a person may go for support, who should be notified when the task is complete, and whose signature is required for sign-off. The tool provides a clear picture to all project team members and keeps all lines of communication open with appropriate communication flowing.

Diff: 2

Section:  5.2 The Scope Statement

LO:  5.4: Develop a Responsibility Assignment Matrix for a project.

Classification:  Application

AACSB:  Analytical Thinking

 

76) Procedures that monitor emerging project scope against the original baseline scope are called:

  1. A) Configuration control.
  2. B) Design control.
  3. C) Trend monitoring.
  4. D) Document control.

Answer:  A

Diff: 2

Section:  5.5 Control Systems

LO:  5.5: Describe the roles of changes and configuration management in assessing project scope.

Classification:  Concept

AACSB:  Application of Knowledge

 

77) A young professor becomes obsessed with the latest release of Halo and completely loses sight of his research commitment to his colleagues, falling hopelessly behind schedule and consuming 80% of the department's computing budget. Addictive behavior notwithstanding, this sad tale would never have happened had:

  1. A) Configuration controls been established.
  2. B) Trend monitoring been regularly performed.
  3. C) Design controls been appropriately deployed.
  4. D) Document control been conducted assiduously.

Answer:  B

Diff: 2

Section:  5.5 Control Systems

LO:  5.5: Describe the roles of changes and configuration management in assessing project scope.

Classification:  Concept

AACSB:  Application of Knowledge

78) Systems for monitoring the project's scope, schedule, and costs during the design stage fall under the heading of:

  1. A) Configuration control.
  2. B) Acquisition control.
  3. C) Design control.
  4. D) Specification control.

Answer:  C

Diff: 2

Section:  5.5 Control Systems

LO:  5.5: Describe the roles of changes and configuration management in assessing project scope.

Classification:  Concept

AACSB:  Application of Knowledge

 

79) As the 80th change order floated across his desk, the project manager wished that he had kept the first 79. What money he had saved in scrap paper might well be lost in charges that could never be recouped from the client. "What I need is better:

  1. A) Trend monitoring," muttered the manager.
  2. B) Configuration control," sighed the manager.
  3. C) Specification control," fumed the manager.
  4. D) Document control," whimpered the manager.

Answer:  D

Diff: 2

Section:  5.5 Control Systems

LO:  5.5: Describe the roles of changes and configuration management in assessing project scope.

Classification:  Concept

AACSB:  Application of Knowledge

 

80) The framing crew would never know when it was time to order more $400 hammers without their fancy new:

  1. A) Acquisition control system.
  2. B) Specification control system.
  3. C) Configuration control system.
  4. D) Design control system.

Answer:  A

Diff: 1

Section:  5.5 Control Systems

LO:  5.5: Describe the roles of changes and configuration management in assessing project scope.

Classification:  Application

AACSB:  Application of Knowledge

 

 

81) The homeowner lusted over a 36,000 BTU oven in his dream kitchen, but his contractor got a deal on a 20,000 BTU oven and installed it without a peep. Thanks to:

  1. A) Acquisition controls, the homeowner ended up with the right oven.
  2. B) Specification controls, the homeowner ended up with the right oven.
  3. C) Design controls, the homeowner ended up with the right oven.
  4. D) Oven controls, the homeowner ended up with the right oven.

Answer:  B

Diff: 2

Section:  5.5 Control Systems

LO:  5.5: Describe the roles of changes and configuration management in assessing project scope.

Classification:  Concept

AACSB:  Application of Knowledge

82) The BEST time to establish reasonable controls is:

  1. A) After a project is over.
  2. B) At the end of a project.
  3. C) At the start of a project.
  4. D) When they are first needed during the project.

Answer:  C

Diff: 1

Section:  5.5 Control Systems

LO:  5.5: Describe the roles of changes and configuration management in assessing project scope.

Classification:  Application

AACSB:  Application of Knowledge

 

83) The project's scope fixed at a specific point in time is the:

  1. A) Scope.
  2. B) Design.
  3. C) Historical standard.
  4. D) Baseline.

Answer:  D

Diff: 1

Section:  5.5 Control Systems

LO:  5.5: Describe the roles of changes and configuration management in assessing project scope.

Classification:  Concept

AACSB:  Application of Knowledge

 

 

84) All pieces of a project must be developed and assembled to produce the final product functionality. Designing, making, and assembling these components is the role of:

  1. A) Configuration management.
  2. B) Baseline scope control.
  3. C) Systematic management.
  4. D) Baseline configuration.

Answer:  A

Diff: 2

Section:  5.5 Control Systems

LO:  5.5: Describe the roles of changes and configuration management in assessing project scope.

Classification:  Concept

AACSB:  Application of Knowledge

 

85) The stage of configuration management where the breakdown of the project to the necessary level of definition is identified as:

  1. A) Configuration review.
  2. B) Configuration identification.
  3. C) Status accounting.
  4. D) Configuration control.

Answer:  B

Diff: 2

Section:  5.5 Control Systems

LO:  5.5: Describe the roles of changes and configuration management in assessing project scope.

Classification:  Concept

AACSB:  Application of Knowledge

86) The management of project changes is most effectively accomplished:

  1. A) When project change needs arise.
  2. B) When plans and project scope are first articulated.
  3. C) Once closeout is complete.
  4. D) During the configuration identification phase.

Answer:  B

Diff: 1

Section:  5.5 Control Systems

LO:  5.5: Describe the roles of changes and configuration management in assessing project scope.

Classification:  Application

AACSB:  Application of Knowledge

 

 

87) The primary action during a configuration review is to:

  1. A) Develop a breakdown of the project to the necessary level of definition.
  2. B) Identify the specifications of the components of the breakdown and of the total project.
  3. C) Meet with all the project stakeholders to agree to the current project definition.
  4. D) Change the specifications last obtained by a process change control to match what people think it should be.

Answer:  C

Diff: 3

Section:  5.5 Control Systems

LO:  5.5: Describe the roles of changes and configuration management in assessing project scope.

Classification:  Concept

AACSB:  Application of Knowledge

 

88) The status accounting step of configuration management functions primarily as:

  1. A) A hierarchy.
  2. B) Binding arbitration.
  3. C) Cost control.
  4. D) Memory.

Answer:  D

Diff: 3

Section:  5.5 Control Systems

LO:  5.5: Describe the roles of changes and configuration management in assessing project scope.

Classification:  Concept

AACSB:  Application of Knowledge

 

89) If viewed from a flow standpoint, the stage of configuration management that has provision for variable routing to the next step, depending on outcome at this stage, is:

  1. A) Configuration control.
  2. B) Configuration review.
  3. C) Status accounting.
  4. D) Configuration identification.

Answer:  A

Diff: 3

Section:  5.5 Control Systems

LO:  5.5: Describe the roles of changes and configuration management in assessing project scope.

Classification:  Concept

AACSB:  Application of Knowledge

 

90) Project closeout documentation that can be used to predict trends, analyze feasibility, and highlight problem areas for similar future projects is:

  1. A) Post project analysis.
  2. B) Historical records.
  3. C) Financial closeout.
  4. D) Post-mortem.

Answer:  B

Diff: 2

Section:  5.6 Project Closeout

LO:  5.5: Describe the roles of changes and configuration management in assessing project scope.

Classification:  Concept

AACSB:  Application of Knowledge

 

91) The ambitious sprinkler system project was finally over and it was hard to believe that it took only two years. The project manager leaned back in his office chair and admired his emerald green lawn and flower garden that was filling in nicely. He was amused by the birds that had gathered to bathe and drink at a persistent puddle just outside his window, a harbinger of the first major repair of his own shoddy workmanship. His review of receipts for the job was less entertaining; between trips to the local home improvement store, consultations with plumbers, city inspectors, and some hired labor, he had sunk a small fortune into his lawn. The manager's:

  1. A) Historical records made for interesting reading.
  2. B) Post-project analysis would someday appear in Better Housekeeping.
  3. C) Financial closeout would be forever hidden from his wife.
  4. D) Project plan was a document for the ages.

Answer:  C

Diff: 2

Section:  5.6 Project Closeout

LO:  5.5: Describe the roles of changes and configuration management in assessing project scope.

Classification:  Application

AACSB:  Application of Knowledge

 

92) Closeout documentation that follows a formal reporting structure, including analysis and documentation of the project's performance in terms of cost, schedule adherence, and technical specification performance, is:

  1. A) Historical records.
  2. B) Financial closeout.
  3. C) Hierarchy reporting.
  4. D) Post-project analysis.

Answer:  D

Diff: 2

Section:  5.6 Project Closeout

LO:  5.5: Describe the roles of changes and configuration management in assessing project scope.

Classification:  Concept

AACSB:  Application of Knowledge

93) The windmills of Mykonos were lovely, so Lisa contracted with an architectural firm to build one in the west pasture. Once the windmill had been built and was operational, the project team looked back at how they had managed to stay on schedule and what budget variances existed along the way. The windmill was pumping as promised, an honest two gallons per minute just as they had design it. Closeout documentation of this type is considered:

  1. A) Historical records.
  2. B) Financial closeout.
  3. C) Hierarchy reporting.
  4. D) Post-project analysis.

Answer:  D

Diff: 2

Section:  5.6 Project Closeout

LO:  5.5: Describe the roles of changes and configuration management in assessing project scope.

Classification:  Concept

AACSB:  Application of Knowledge

 

94) Which step in project management requires project managers to consider the types of records and reports they and their clients will require at the completion of the project?

  1. A) Project closeout
  2. B) Completion phase
  3. C) Reporting
  4. D) Planning

Answer:  A

Diff: 1

Section:  5.6 Project Closeout

LO:  5.5: Describe the roles of changes and configuration management in assessing project scope.

Classification:  Concept

AACSB:  Application of Knowledge

 

95) A priori consideration of information needs is performed:

  1. A) Several years after a project is completed.
  2. B) Before a project begins.
  3. C) At the start of a project.
  4. D) During the project.

Answer:  B

Diff: 2

Section:  5.6 Project Closeout

LO:  5.5: Describe the roles of changes and configuration management in assessing project scope.

Classification:  Concept

AACSB:  Application of Knowledge

 

 

96) Controls can be established at any point during a project but should follow the maxim "more control is better."

Answer:  FALSE

Diff: 2

Section:  5.5 Control Systems

LO:  5.5: Describe the roles of changes and configuration management in assessing project scope.

Classification:  Application

AACSB:  Application of Knowledge

97) A baseline is the project's scope fixed at a specific point in time.

Answer:  TRUE

Diff: 1

Section:  5.5 Control Systems

LO:  5.5: Describe the roles of changes and configuration management in assessing project scope.

Classification:  Concept

AACSB:  Application of Knowledge

 

98) The project closeout step requires project managers to consider the types of records and reports they and their clients will require at the completion of a project.

Answer:  TRUE

Diff: 1

Section:  5.6 Project Closeout

LO:  5.5: Describe the roles of changes and configuration management in assessing project scope.

Classification:  Concept

AACSB:  Application of Knowledge

 

 

99) What is the purpose of controls? Describe any three types of control systems.

Answer:  Control systems are vital to ensure that any changes to the project baseline are conducted in a systematic and thorough manner. The focus of a control system may be on configuration, design, trends, documents, acquisition, or specification.

Configuration control takes procedures that monitor emerging project scope against original baseline scope. Design control relates to systems for monitoring the project's scope, schedule, and costs during the design stage. Trend monitoring is the process of tracking the estimated costs, schedules, and resources needed against those planned. Document control ensures that important documentation is compiled and disseminated in an orderly and timely fashion. Acquisition control monitors systems used to acquire necessary project equipment, materials, or services needed for project development and implementation. Specification control ensures that project specifications are prepared clearly, communicated to all concerned parties, and changed only with proper authorization.

Diff: 2

Section:  5.5 Control Systems

LO:  5.5: Describe the roles of changes and configuration management in assessing project scope.

Classification:  Application

AACSB:  Application of Knowledge

 

100) What is configuration management and why is it important?

Answer:  The Project Management Body of Knowledge defines configuration management as "a system of procedures that monitors emerging project scope against the scope baseline. It requires documentation and management approval on any change to the baseline." The baseline is the project's scope fixed at a point in time and is viewed as the project's configuration. Configuration management is the systematic management of project change. Since complex projects may be composed of many elements that are being created by a large number of different teams or subcontractors, configuration management is a means of keeping all of these pieces fully informed about any changes that occur along the way. These changes may come at the request of the customer or one of the project teams or even from an external stakeholder.

Diff: 2

Section:  5.5 Control Systems

LO:  5.5: Describe the roles of changes and configuration management in assessing project scope.

Classification:  Application

AACSB:  Application of Knowledge

 

101) What are two common reasons that project or specification changes must be made?

Answer:  The need to make project changes or specification adjustments can come from one of several reasons. The design team may have made initial planning errors, either technological or human. As the project progresses, additional knowledge of the project or environmental conditions may come to light that affect the performance of the original design. An external entity may issue a mandate that affects original configuration or the client may request a new feature.

Diff: 2

Section:  5.5 Control Systems

LO:  5.5: Describe the roles of changes and configuration management in assessing project scope.

Classification:  Application

AACSB:  Application of Knowledge

 

102) What takes place at the project closeout step?

Answer:  All good projects, and even many bad ones, come to an end, and project closeout is the anticipation of this end. The project closeout step requires project managers to consider the types of records and reports that they and their clients will require at the completion of the project. Closeout documentation may include historical records, post project analysis, and financial closeout and this information may be held in case of contractual disputes, as a training tool, and to facilitate project auditing tasks.

Diff: 2

Section:  5.6 Project Closeout

LO:  5.5: Describe the roles of changes and configuration management in assessing project scope.

Classification:  Application

AACSB:  Application of Knowledge

 

103) How should the project closeout step be planned?

Answer:  Project closeout planning is an important component of scope management. The project closeout step requires project managers to consider the types of records and reports they and their clients will require at the completion of the project. The earlier in the scope development process that these decisions are made, the more useful the information collected over the project's development can be. One of the most important lessons for successful project managers is to "start with the end in mind." Clear goals at the beginning of a project make clear what the project's completion will require. Project closeout requires managers to consider a priori the types and amounts of information to continually collect during project development, relying on a sound project tracking and filing system.

Diff: 2

Section:  5.6 Project Closeout

LO:  5.5: Describe the roles of changes and configuration management in assessing project scope.

Classification:  Application

AACSB:  Application of Knowledge

 

 

 

 

 

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