Questions and Answers of Project Management

In the early years of project management, we discovered that:A. Measurement of time and cost was usually quite accurate.B. The project was a success if we met the time and cost constraints.C.
Which of the following is true?A. Metrics should not be allowed to change as the project progresses.B. Good metrics can provide precise predictions of performance rather than a close estimate.C.
Metrics focus on the future whereas KPIs focus more on the here and now.A. TrueB. False
The rule of inversion states that:A. Only metrics that are difficult to measure should be selected as KPIs.B. Risk KPIs are essential for tracking performance.C. Only core metrics should be
Some metrics and KPIs may not be measured until well into the future because the measurement is based on the beneficial use of the deliverable.A. TrueB. False
Which of the following is not one of the six characteristics of a KPI?A. Predicts the present and the futureB. Can be displayed with more than one iconC. Relevant to the success and failure of the
Which of the following can influence the selection of KPIs?A. Size and number of dashboardsB. Type of audience and audience requirementsC. Audience project management maturity levelD. All of the above
KPIs provide no real value if they cannot be measured with any “reasonable” degree of accuracy.A. TrueB. False
Sophisticated measurement techniques will eliminate uncertainties and provide us with complete information for project decision-making.A. TrueB. False
The true health of a project can be determined from a single metric or KPI.A. TrueB. False
During a project kick-off meeting, team members should be briefed on what KPIs will be used as well as what KPIs will not be used.A. TrueB. False
Trade-offs are almost always necessary because:A. Project managers are incapable of planning correctly.B. Line managers are unable to provide accurate estimates.C. Executives are unable to properly
Will the addition of more constraints and metrics make it easier to perform trade-offs on projects?
The person who may be ultimately responsible for approving the trade-off is the:A. Project managerB. Line managerC. Project sponsorD. Customer
Can customer-requested scope changes affect the order in which trade-offs will happen?
The most common trade-offs occur on:A. Time, cost, and qualityB. Risk, cost, and qualityC. Risk, time, and qualityD. Scope, quality, and risk
What should be the role of a project sponsor with regard to trade-offs?
If the start date of a project is delayed but the budget and specifications remain fixed, what would the project manager most likely trade off first?A. ScopeB. TimeC. QualityD. Risk
The two major components of a risk are:A. Time and costB. Uncertainty and impactC. Quality and timeD. Cost and decision-making circumstances
Risk management is normally performed by:A. Developing contingency plansB. Asking the customer for helpC. Asking the sponsor for helpD. Developing work-around situations
Future outcomes that provide favorable opportunities are called:A. Favorable risksB. OpportunitiesC. ContingenciesD. Surprises
Figure 17–17 shows a probability impact matrix for a project involving military operations. Can this same figure be used in the pharmaceutical industry for the development of new drugs where the
The cause of a risk event is usually referred to as:A. An opportunityB. A hazardC. An outcomeD. An unwanted surprise
If there is a 40 percent chance of making $100,000 and a 60 percent chance of losing $150,000, then the expected monetary outcome is:A. $50,000B. ($50,000)C. $90,000D. ($90,000)
Assumption, mitigation, and transfer are examples of risk:A. ContingenciesB. UncertaintiesC. ExpectationsD. Responses
In which life-cycle phase would project uncertainty be the greatest?A. InitiationB. PlanningC. ExecutionD. Closure
In which life-cycle phase would the financial risks of a project be the greatest?A. InitiationB. PlanningC. ExecutionD. Closure
Monte Carlo simulation is an example of which risk assessment?A. Go-for-brokeB. AdverseC. QualitativeD. Quantitative
Which of the following is not a valid reason for managing a risk?A. Minimizing the risk's likelihoodB. Minimizing the risk's unfavorable consequencesC. Maximizing the probability of the risk's
Which of the following is generally not part of overall risk management?A. Defining the roles and responsibilities of the team membersB. Establishing a risk reporting formatC. Selection of the
A technique for risk evaluation that uses a questionnaire, a series of rounds, and reports submitted in confidence and then circulated with the source unidentified is called:A. The Delphi techniqueB.
Risk symptoms or early warning signs are called:A. VectorsB. TriggersC. Pre-eventsD. Contingency events
Which of the following is not a risk quantification tool or technique?A. InterviewingB. Decision tree analysisC. Objective settingD. Simulation
A technique that depicts interactions among decisions and associated events is called:A. Decision tree analysisB. Earned value measurement systemC. Network scheduling systemD. Payoff matrix
Varying one risk driver at a time, either in small increments or from optimistic to pessimistic estimates while keeping all other drivers fixed, is called:A. Decision tree analysisB. Sensitivity
A risk response strategy that generally reduces the probability or impact of the event without altering the project's objectives is called:A. AvoidanceB. AcceptanceC. MitigationD. Transfer
Earned value measurement is an example of:A. Risk communication planningB. Risk identification planningC. Risk responseD. Risk monitoring and control
The difference between being proactive and reactive is the development of a:A. Payoff tableB. Range of probabilitiesC. Range of payoffsD. Contingency plan
According to learning curve theory, learning takes place at a fixed rate whenever the production levels:A. Increase higher than normalB. Increase, but at a lower than normal rateC. DoubleD. Quadruple
Learning curve theory is most appropriate for estimating which costs?A. R&DB. EngineeringC. MarketingD. Manufacturing
On a 90 percent learning curve, the 100th unit required 80 hours. How many hours would the 200th unit require?A. 200B. 180C. 100D. 90
Which of the following can be a source of improvement to a learning curve?A. New, more efficient production processesB. Product redesignsC. Higher-quality raw materialsD. All of the above
What type of contract would be most suitable for an R&D contract when you expect the customer to request significant scope changes during the execution of the project?
Identifying a risk as high, moderate, or low would be an example of which risk assessment?A. Go-for-brokeB. AdverseC. QualitativeD. Quantitative
Using the same data from Problem 20, and the same contract type, how much will the contractor be reimbursed if the cost of performing the work is $120,000?Data from problem 20A
An FPIF contract has the following characteristics:Sharing ratio: 70/30Target cost: $100,000Target fee: $8,000Price ceiling: $110,000How much will the contractor be reimbursed if the cost of
The contractual statement-of-work document is:A. A nonbinding legal document used to identify the responsibilities of the contractorB. A definition of the contracted work for government contracts
During competitive bidding activities, why aren't the contractors allowed to have personal conversations with the seller's organization without informing other bidders about the discussion?
What is a written or pictorial document that describes, defines, or specifies the services or items to be procured?A. A specification documentB. A Gantt chartC. A blueprintD. A risk management plan
Why are companies reluctant to allow project managers to conduct their own procurement activities without going through a centralized procurement group?
The “order of precedence” is:A. The document that specifies the order (priority) in which project documents will be used when it becomes necessary to resolve inconsistencies between project
How do companies handle competitive bidding activities when the statement of work in the proposal is vague?
In which type of contract arrangement is the contractor least likely to want to control costs?A. Cost plus percentage of costB. Firm-fixed priceC. Time and materialsD. Purchase order
A company is bidding on a contract that requires long-lead procurement activities. Unfortunately, the buyer needs quite a bit of time to have the final contract ready for signatures. This will create
In which type of contract arrangement is the contractor most likely to want to control costs?A. Cost plus percentage of costB. Firm-fixed priceC. Time and materialsD. Fixed-price-incentive-fee
In which type of contract arrangement is the contractor at the most risk of absorbing all cost overruns?A. Cost plus percentage of costB. Firm-fixed priceC. Time and materialsD.
In which type of contract arrangement is the customer at the most risk of absorbing excessive cost overruns?A. Cost plus percentage of costB. Firm-fixed priceC. Time and materialsD.
What is the primary objective the customer's project manager focuses on when selecting a contract type?A. Transferring all risk to the contractorB. Creating reasonable contractor risk with provisions
Which type of contract arrangement is specifically designed to give a contractor relief for inflation or material/labor cost increases on a long-term contract?A. Cost plus percentage of costB.
Which of the following is not a factor to consider when selecting a contract type?A. Type/complexity of the requirementB. Urgency of the requirementC. Extent of price competitionD. All are factors to
In a fixed-price-incentive-fee contract, the “point of total assumption” refers to the point in the project cost curve where:A. The customer assumes responsibility for every additional dollar
A written preliminary contractual instrument prepared prior to the issuance of a definitive contract that authorizes the contractor to begin work immediately, within certain limitations, is known as
A contract entered into after following normal procedures (i.e., negotiation of terms, conditions, cost, and schedule) but prior to initiation of performance is known as a:A. Definitive contractB.
If a project manager requires the use of a piece of equipment, what is the breakeven point where leasing and renting are the same?A. 300 daysB. 30 daysC. 100 daysD. 700 days Cost Categories Annual
Which of the following is not a function of the contract administration activity?A. Contract change managementB. Specification interpretationC. Determination of contract breachD. Selection of the
fixed-price contract is typically sought by the project manager from the customer's organization when:A. The risk and consequences associated with the A A contracted task are large and the customer
Which of the following are typical actions a customer would take if the customer received nonconforming materials or products and the customer did not have the ability to bring the goods into
In which type of incentive contract is there a maximum or minimum value established on the profits allowed for the contract?A. Cost-plus-incentive-fee contractB. Fixed-price-incentive-fee contractC.
In which type of incentive contract is there a maximum or minimum value established on the final price of the contract?A. Cost-plus-incentive-fee contractB. Fixed-price-incentive-fee contractC.
A cost-plus-incentive-fee contract has the following characteristics:Sharing ratio: 80/20Target cost: $100,000Target fee: $12,000Maximum fee: $14,000Minimum fee: $9,000How much will the contractor be
Using the same data from Problem 20, and the same contract type, how much will the contractor be reimbursed if the cost of performing the work is $85,000?Data from problem 20A cost-plus-incentive-fee
Using the same data from Problem 23, and the same contract type, how much will the contractor be reimbursed if the cost of performing the work is $102,000?Data from problem 23An FPIF contract has the
Using the same data from Problem 23, and the same contract type, how much will the contractor be reimbursed if the cost of performing the work is $105,000?Data from problem 23An FPIF contract has the
Which of the following is not part of the generally accepted view of quality today?A. Defects should be highlighted and brought to the surface.B. We can inspect quality.C. Improved quality saves
Are all of the quality tools applicable to every project? If not, who decides which tools should be used?
In today's view of quality, who defines quality?A. Contractors' senior managementB. Project managementC. WorkersD. Customers
Who has the ultimate responsibility for the quality of the project, and why?
Which of the following are tools of quality control?A. Sampling tablesB. Process chartsC. Statistical and mathematical techniquesD. All of the above
You have just won a contract for an external client. Who determines the quality acceptance criteria?
Which of the following is true of modern quality management?A. Quality is defined by the customer.B. Quality has become a competitive weapon.C. Quality is now an integral part of strategic
On what type of projects, if any, can quality be viewed as inspection?
A company dedicated to quality usually provides training for:A. Senior management and project managersB. Hourly workersC. Salaried workersD. All employees
On what type of projects might it be necessary to perform 100 percent inspection rather than inspection sampling?
Which of the following quality gurus believe “zero-defects” is achievable?A. DemingB. JuranC. CrosbyD. All of the above
What are the components of Juran's Trilogy?A. Quality Improvement, Quality Planning, and Quality ControlB. Quality Improvement, Zero-Defects, and Quality ControlC. Quality Improvement, Quality
Which of the following is not one of Crosby's Four Absolutes of Quality?A. Quality means conformance to requirements.B. Quality comes from prevention.C. Quality is measured by the cost of
According to Deming, what percentage of the costs of quality is generally attributable to management?A. 100%B. 85%C. 55%D. 15%
Inspection:A. Is an appropriate way to ensure qualityB. Is expensive and time-consumingC. Reduces rework and overall costsD. Is always effective in stopping defective products from reaching the
A well-written policy statement on quality will:A. Be a statement of how, not what or why.B. Promote consistency throughout the organization and across projects.C. Provide an explanation of how
Quality assurance includes:A. Identifying objectives and standardsB. Conducting quality auditsC. Planning for continuous collection of dataD. All of the above
What is the order of the four steps in Deming's Cycle for Continuous Improvement?A. Plan, do, check, and actB. Do, plan, act, and checkC. Check, do, act, and planD. Act, check, do, and plan
Quality audits:A. Are unnecessary if you do it right the first timeB. Must be performed daily for each processC. Are expensive and therefore not worth doingD. Are necessary for validation that the
Which of the following are typical tools of statistical process control?A. Pareto analysisB. Cause-and-effect analysisC. Process control chartsD. All of the above
Which of the following methods is best suited to identifying the vital few ?A. Pareto analysisB. Cause-and-effect analysisC. Trend analysisD. Process control charts
When a process is set up optimally, what are the typical upper and lower specification limits?A. Set equal to the upper and lower control limits.B. Set outside the upper and lower control limits.C.
The upper and lower control limits are typically set:A. One standard deviation from the mean in each direction.B. 3 σ (three sigma) from the mean in each direction.C. Outside the upper and lower
Which of the following is not indicative of today's views of the quality management process applied to a given project?A. Defects should be highlighted and brought to the surface.B. The ultimate
If the values generated from a process are normally distributed around the mean value, what percentage of the data points fall within plus or minus three standard deviations of the mean?A. 99.7%B.
Honicker Corporation was well-recognized as a high-quality manufacturer of dashboards for automobiles and trucks. Although it serviced mainly US automotive and truck manufacturers, the opportunity to
Marvin was the president and chief executive officer (CEO) of his company. The decision of whether to bid on a job above a certain dollar value rested entirely on his shoulders. In the past, his

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