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.