Deck 4: Project Integration Management

Question 1

Payback period is the amount of time it will take to recoup, in the form of net cash inflows, the total dollars invested in a project.

Answer 1

True
Payback analysis is another important financial tool when selecting projects. Payback period is the amount of time it will take to recoup the total dollars invested in a project, in terms of net cash inflows.

Question 2

A project charter typically does not authorize the project manager to use organizational resources to complete the project.

Answer 2

False
A project charter is a document that formally recognizes the existence of a project and provides direction on the project's objectives and management. It authorizes the project manager to use organizational resources to complete the project.

Question 3

Projects that arise as a result of problems and directives must be resolved quickly to avoid hurting an organization's business.

Answer 3

True
It is often easier to get approval and funding for projects that address problems or directives because the organization must respond to these categories to avoid hurting their business.

Question 4

Project integration management must occur just within the context of a particular project.

Question 5

The organization should complete low-priority projects before high-priority ones, if the low-priority ones take less time.

Question 6

Opportunities and directives are essentially the same thing.

Question 7

Projects that address broad organizational needs are likely to fail.

Question 8

NPV analysis is a method for making equal comparisons between cash flows for multi-year projects.

Question 9

Information systems can help an organization support a strategy of being a low-cost producer.

Question 10

An annual discount factor is a multiplier for each year based on the discount rate and year.

Question 11

An organization should consider only projects with a negative NPV if financial value is a key criterion for project selection.

Question 12

Interface management involves identifying and managing the points of interaction between various elements of a project.

Question 13

The number of interfaces in a single project is limited, and does not depend on the number of people involved in the project.

Question 14

In project integration management, directing and managing project execution involves carrying out the project management plan by performing the activities included in it.

Question 15

The ROI is always positive.

Question 16

An organization's information technology project selection process should guide the strategic plan.

Question 17

As projects progress, the organization must reevaluate the need, funding, and will for each project to determine if the project should be continued, redefined, or terminated.

Question 18

A SWOT analysis, being a linear process, cannot be performed using the nonlinear mind mapping technique.

Question 19

Some organizations initiate projects using a contract in place of a project charter.

Question 20

The introduction or overview of a project must only include a list of definitions and acronyms.

Question 21

Corrective actions reduce the probability of negative consequences associated with project risks, while preventive actions should result in improvements in project performance.

Question 22

The _____ is the minimum acceptable rate of return on an investment.

A) capitalization rate
B) internal rate of return
C) discount rate
D) required rate of return

Question 23

Organizational process asset updates are an important output of the closing process of a project.

Question 24

_____ analysis is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time.

A) Cost of capital
B) Net present value
C) Cash flow
D) Payback

Question 25

Which of the following is true of return on investment or ROI?

A) It is always a percentage.
B) It is always a positive number.
C) It is the result of adding the project costs to the profits.
D) The lower it is, the better.

Question 26

_____ involves coordinating all planning efforts to create a consistent, coherent document.

A) Developing the project charter
B) Developing the preliminary project scope statement
C) Developing the project management plan
D) Developing the organizational process assets updates

Question 27

The _____ stage of information technology planning outlines business processes that are central to achieving strategic goals and helps determine which ones could most benefit from information technology.

A) project planning
B) business area analysis
C) resource allocation
D) information technology strategy planning

Question 28

Change requests are always made in writing.

Question 29

It is necessary that IT project managers have prior technical experience in creating and managing IT products.

Question 30

Payback occurs when:

A) the net cumulative benefits minus costs equal one.
B) the net cumulative benefits equal the net cumulative costs.
C) the net costs are lower than the cumulative benefits.
D) the cumulative benefits are double the cumulative costs.

Question 31

The outputs of the _____ process include change request status updates, project management plan updates, and project document updates.

A) initiating
B) planning
C) executing
D) monitoring and controlling

Question 32

The first step in the planning process is _____.

A) to tie the information technology strategic plan to the organization's overall strategic plan
B) to perform a business area analysis
C) to start defining potential IT projects in terms of their scope, benefits, and constraints
D) to choose which projects to do and assigning resources to work on them

Question 33

The first step in determining the NPV is to _____.

A) determine the estimated costs and benefits for the life of the project and the products it produces
B) determine the discount rate
C) calculate the net present value
D) determine the cash flow

Question 34

In the _____ stage of selecting information technology projects, organizations select information technology projects.

A) project planning
B) business area analysis
C) resource allocation
D) information technology strategy planning

Question 35

Benefits minus costs is known as the _____.

A) cost of capital
B) cash flow
C) discount factor
D) opportunity cost of capital

Question 36

In the _____ stage of selecting information technology projects, organizations define project scope, benefits, and constraints.

A) project planning
B) business area analysis
C) resource allocation
D) information technology strategy planning

Question 37

_____ involves working with stakeholders to create the document that formally authorizes a project.

A) Developing the project charter
B) Developing the preliminary project scope statement
C) Developing the project management plan
D) Performing integrated change control

Question 38

A Gantt chart is the same as a project management plan.

Question 39

_____ are new requirements imposed by management, government, or some external influence.

A) Opportunities
B) Charters
C) Problems
D) Directives

Question 40

A project's internal rate of return can be determined by finding what discount rate results in an NPV of _____ for the project.

A) zero
B) one
C) a hundred percent
D) fifty percent

Question 41

Which of the following is a proactive process undertaken to reduce the probability of negative consequences associated with project risks?

A) Performance reports
B) Preventive actions
C) Defect repairs
D) Corrective actions

Question 42

_____ involves coordinating all of the other project management knowledge areas throughout a project's life cycle.

Question 43

The business case includes information on _____.

A) the business need for the project
B) relevant government or industry standards
C) the project objective, high-level requirements, and time and cost goals
D) policies, procedures, guidelines, and systems that influence a project's success

Question 44

_____ involves identifying and controlling the functional and physical design characteristics of products and their support documentation, and ensures that the descriptions of the project's products are correct and complete.

A) NPV analysis
B) Project management information systems
C) Configuration management
D) Project time management

Question 45

A _____ is a document that recognizes the existence of a project and provides direction on the project's objectives and management.

A) stakeholder register
B) risk register
C) directive
D) project charter

Question 46

Which of the following are organizational process assets?

A) Management systems
B) The organization's infrastructure
C) Government standards
D) Marketplace conditions

Question 47

A(n) _____ is a formal, documented process that describes when and how official project documents may be modified, the people authorized to make modifications, and the paperwork required for these changes.

A) WBS
B) project charter
C) performance report
D) change control system

Question 48

_____ involves determining long-term objectives by analyzing the strengths and weaknesses, studying opportunities and threats, predicting future trends, and projecting the need for new products and services.

Question 49

_____ should result in improvements in project performance.

A) Corrective actions
B) Defect repairs
C) Preventive actions
D) Product acceptance plans

Question 50

_____ involves identifying and managing the points of interaction between various elements of the project.

Question 51

In a weighted scoring model, the sum of the weights of all the criteria must total _____ percent.

A) 10
B) 50
C) 100
D) 150

Question 52

A _____ is a document used to coordinate all project planning documents and help guide a project's execution and control.

A) project management plan
B) statement of work
C) scope statement
D) business case

Question 53

The _____ section of the project plan should describe the major project functions and activities and identify those individuals who are in charge of them.

A) organizational charts
B) other organizational or process-related information
C) project responsibilities
D) management objectives

Question 54

The project schedule information section of the project management plan includes ____.

A) a detailed budget
B) a list of key deliverables
C) an elaborate timetable
D) a directory of staff involved in the project

Question 55

The _____ section of the project management plan describes specific methodologies a project might use and explains how to document information.

A) management objectives
B) project controls
C) risk management
D) technical processes

Question 56

The majority of time on a project is usually spent on _____, as is most of the project's budget.

A) execution
B) planning
C) closing
D) monitoring and controlling

Question 57

_____ is a technique that uses branches radiating from a core idea to structure thoughts and ideas.

Question 58

A(n) _____ involves analyzing a company's strengths, weaknesses, opportunities, and threats, and is used to aid in strategic planning.

Question 59

An IT company revises its process parameters in response to complaints from vendors that products were not ready on time. This would be an example of _____.

A) cost forecasting
B) a preventive action
C) defect repairs
D) a corrective action

Question 60

The _____ section of the project management plan describes how to monitor project progress and handle changes.

A) management objectives
B) project controls
C) risk management
D) technical processes

Question 61

What are the methods for categorizing information technology projects?

Question 62

_____ is the result of subtracting the project costs from the benefits and then dividing by the costs.

Question 63

A category of software that can help align projects with business strategy is called _____ tools.

Question 64

A(n) _____ is the approved project management plan plus approved changes.

Question 65

_____ analysis is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time.

Question 66

_____ refer to chances to improve the organization.

Question 67

_____ are new requirements imposed by management, government, or some external influence.

Question 68

A positive NPV means the return from a project exceeds the _____, the return available by investing the capital elsewhere.

Question 69

The _____ is the discount rate that results in an NPV of zero for a project.

Question 70

_____ refer to undesirable situations that prevent an organization from achieving its goals.

Question 71

What is a weighted scoring model? How is it created?

Question 72

A(n) _____ is a methodology that converts value drivers, such as customer service, innovation, operational efficiency, and financial performance, to a series of defined metrics.

Question 73

What is a project charter? Discuss the inputs that can aid the development of a project charter.

Question 74

_____ involves identifying, evaluating, and managing changes throughout the project life cycle.

Question 75

_____ project work includes collecting, measuring, and disseminating performance information.

Question 76

A(n) _____ is a tool that provides a systematic process for selecting projects based on many criteria.

Question 77

A(n) _____ is a formal group of people responsible for approving or rejecting changes to a project.

Question 78

_____ include formal and informal plans, policies, procedures, guidelines, information systems, financial systems, management systems, lessons learned, and historical information that can be used to influence a project's success.

Question 79

_____ factors include relevant government or industry standards, the organization's infrastructure, and marketplace conditions.

Question 80

List and briefly describe the six main processes involved in project integration management.