Chapter 01 Modern Project Management Answer Key

Multiple Choice Questions

1. The advent of project management has been most profound in

A. Automobile manufacturing
B. Construction
C. Information technology
D. The U.S. Department of Defense
E. Film making
The impact of project management is most profound in the area of electronics industry, where the new folk heroes are young
professionals whose Herculean efforts lead to the constant flow of new hardware and software products.

2. A professional organization for project management specialists is the

A. PMI
B. AMA
C. MIS
D. IPM
E. PMBOK
The Project Management Institute (PMI), is a professional organization for project managers.

3. Which of the following is not considered to be a characteristic of a project?

A. An established objective
B. A clear beginning and end
C. Complex tasks
D. Only for internal use
E. Never been done before
See List on Page 5.

4. Which of the following activities is not considered a project?

A. Developing a new software program
B. Designing a space station
C. Preparing the site for the Olympic Games
D. Production of automobile tires
E. Developing a new advertising program
A project is not routine, repetitive work! Ordinary daily work typically requires doing the same or similar work over and over,
while a project is done only once; a new product or service exists when the project is completed.

5. From among the following activities, which is the best example of a project?
A. Processing insurance claims
B. Producing automobiles
C. Writing a term paper
D. Completing a college degree
E. All of these are good examples of projects
See table 1.1 on Page 6.
6. Which of the following constraints is not typically found in managing projects?
A. Time
B. People
C. Cost
D. Performance
E. Both B and D are not typical constraints
Specific time, cost, and performance requirements bind projects.

7. Which of the following choices is not one of the stages of a project life cycle?
A. Conceptualizing
B. Defining
C. Planning
D. Executing
E. Delivering
See List on Page 7.

8. In which of the following stages are project objectives established, teams formed, and major responsibilities assigned?
A. Conceptualizing
B. Defining
C. Planning
D. Executing
E. Delivering
Specifications of the project are defined; project objectives are established; teams are formed; major responsibilities are assigned.

9. In which of the following stages is a major portion of the physical and mental project work performed?
A. Conceptualizing
B. Defining
C. Planning
D. Executing
E. Delivering
A major portion of the project work takes place—both physical and mental.

10. In which of the following stages are you more likely to find status reports, many changes, and the creation of forecasts?
A. Conceptualizing
B. Defining
C. Planning
D. Executing
E. Delivering
Time, cost, and specification measures are used for control.

15. Which of the following is the number one characteristic that is looked for in management candidates?
A. Overall intelligence
B. Works well with others
C. Experience
D. Past successes
E. Good references
The phrase "works well with others" has long been a staple on grade school report cards; now, in the IT world, it's the No. 1
criterion for management candidates.(See Research Highlight on page 16).
22. Which of these is not part of the "sociocultural dimension" of project management?
A. Negotiation
B. Resource allocation
C. Customer expectations
D. Leadership
E. Politics
See Figure 1.3. The Technical and Sociocultural Dimensions of the Project Management Process on page 15.

23. Corporate downsizing has increased the trend toward

A. Reducing the number of projects a company initiates
B. Outsourcing significant segments of project work
C. Using dedicated project teams
D. Shorter project lead times
E. Longer project lead times
Companies outsource significant segments of project work, and project managers have to manage not only their own people but
also their counterparts in different organizations.

26. A series of coordinated, related, multiple projects that continue over extended time intended to achieve a goal is known as a
A. Strategy
B. Program
C. Campaign
D. Crusade
E. Venture
A program is a group of related projects designed to accomplish a common goal over an extended period of time.

27. In which of the following stages is it determined what the project will entail, when it will be scheduled, whom it will benefit,
and what the budget will be?
A. Conceptualizing
B. Defining
C. Planning
D. Executing
E. Delivering
The level of effort increases, and plans are developed to determine what the project will entail, when it will be scheduled, whom
it will benefit, what quality level should be maintained, and what the budget will be.

29. Integration of all project processes and practices to improve Project Management is due to
A. Centralization
B. Environmental analysis
C. Customer Expectations
D. Project management system
E. The organization's environment and culture
Centralization entails integration of all project processes and practices to improve project management.

30. From 1994 to 2009 the trend for projects late or over budget was:
A. Significantly better
B. Slightly better
C. About the
Fill in the Blank Questions

31. Like most organizational effort, the major goal of a project is to __________.
satisfy a customer's need
Like most organizational effort, the major goal of a project is to satisfy a customer's need.

32. The initial stage in the Project Life Cycle is the __________ stage.
defining
Specifications of the project are defined; project objectives are established; teams are formed; major responsibilities are assigned.

33. The final stage in the Project Life Cycle is the __________ stage.
closure
Closure includes three activities: delivering the project product to the customer, redeploying project resources, and post-project
review.

35. In the __________ stage of the Project Life Cycle a major part of the project work, both physical and mental, takes place.
executing
A major portion of the project work takes place—both physical and mental.

36. In the _________ stage of the Project Life Cycle what will be accomplished by the project is determined along with the
project's schedule and budget.
planning
The level of effort increases, and plans are developed to determine what the project will entail, when it will be scheduled, whom
it will benefit, what quality level should be maintained, and what the budget will be.

41. In some organizations, selection and management of projects often fail to support the broad-based _________ of the
organization.
strategic plan
Today, projects are the modus operandi for implementing strategy. Yet in some organizations, selection and management of
projects often fail to support the strategic plan of the organization.

42. WBS, schedules, and budgets are examples of the _________ dimension of the project management process.
technical
See Figure 1.3. The Technical and Sociocultural Dimensions of the Project Management Process on page 15.

43. Leadership, teamwork, and negotiation are examples of the _________ dimension of the project management process.
sociocultural
See Figure 1.3. The Technical and Sociocultural Dimensions of the Project Management Process on page 15.
47. The development of schedules, budgets, and identifying risks are common elements to the ________ stage of the project life
cycle.
planning
The level of effort increases, and plans are developed to determine what the project will entail, when it will be scheduled, whom
it will benefit, what quality level should be maintained, and what the budget will be.

48. The establishment of project goals, specifications, and responsibilities usually occurs in the ________ stage of the project life
cycle.
defining
Specifications of the project are defined; project objectives are established; teams are formed; major responsibilities are assigned.

49. Training the customer, reassigning staff, and releasing resources occurs in the ________ stage of the project life cycle.
closure
Includes three activities: delivering the project product to the customer, redeploying project resources, and post-project review.
Delivery of the project might include customer training and transferring documents.

53. In the __________ stage, it determined what the project will entail, when it will be scheduled, whom it will benefit, and what
the budget will be.
planning
The level of effort increases, and plans are developed to determine what the project will entail, when it will be scheduled, whom
it will benefit, what quality level should be maintained, and what the budget will be.
True / False Questions

55. Ten years ago major universities offered only one or two classes in project management, primarily for engineers.
TRUE
Ten years ago major universities offered one or two classes in project management, primarily for engineers. Today, most
universities offer multiple sections of project management classes, with the core group of engineers being supplemented by
business students majoring in marketing, management information systems (MIS).

58. One of the defining characteristics of project management is that the projects are not confined to a single department but
involve several departments and professionals.
TRUE
One of the major characteristics is the involvement of several departments and professionals.

59. One of the characteristics that separate project management from other endeavors of the organization is that there are specific
time, cost, and performance requirements.
TRUE
Major characteristics are specific time, cost, and performance requirements.

60. The singular purpose of a project is often lacking in daily organizational life in which workers perform repetitive operations
each day.
TRUE
This singular purpose is often lacking in daily organizational life in which workers perform repetitive operations each day.

64. In practice, the amount of work accomplished in each stage of the Project Life Cycle will vary greatly depending on the
department or work group.
TRUE
In practice, the project life cycle is used by some project groups to depict the timing of major tasks over the life of the project.

65. Because of the requirement for in-depth expertise, project management is generally restricted to specialists.
FALSE
Unlike their functional counterparts, project managers generally possess only rudimentary technical knowledge.
69. Because of the significant loss in potential product revenue, "time to market" has become one of the most critical factors in
developing new products.
TRUE
Time to market for new products with short life cycles has become increasingly important.

70. A common rule of thumb in the world of high-tech product development is that a six-month project delay can result in a 33
percent loss in product revenue share.
TRUE
A common rule of thumb in the world of high-tech product development is that a six-month project delay can result in a 33
percent loss in product revenue share. Speed, therefore, becomes a competitive advantage; more and more organizations are
relying on cross-functional project teams to get new products and services to the market as quickly as possible.

71. Project management integration necessitates combining all of the major dimensions of project management under one
umbrella.
TRUE
Project management integration necessitates combining all of the major dimensions of project management under one umbrella.
Each dimension is connected in one seamless, integrated domain. Integration means applying a set of knowledge, skills, tools,
and techniques to a collection of projects in order to move the organization toward its strategic goals.

Project managers must shape a project culture that stimulates teamwork and high levels of personal motivation as well as a
capacity to quickly identify and resolve problems that threaten project work. This dimension also involves managing the interface
between the project and external environment. Project managers have to assuage and shape expectations of customers, sustain the
political support of top management, negotiate with their functional counterparts, monitor subcontractors, and so on. Overall, the
manager must build a cooperative social network among a divergent set of allies with different standards, commitments, and
perspectives.

75. Project management is usually restricted to specialists.

FALSE
Unlike their functional counterparts, project managers generally possess only rudimentary technical knowledge.

Chapter 02 Organization Strategy and Project Selection Answer Key

Multiple Choice Questions

1. Which of the follow is not one of the commonly heard comments of project managers?
A. Where did this project come from?
B. Why are we doing this project?
C. How can all these projects be first priority?
D. Why is this project so strongly linked to the strategic plan?
E. Where are we going to get the resources to do this project?
Ample evidence still suggests that many organizations have not developed a process that clearly aligns project selection to the
strategic plan.
4. The intended outcome of strategy/projects integration is
A. Clear organization focus
B. Best use of scare organization resources
C. Improved communication across projects and departments
D. Both A and C are correct
E. A, B, and C are all correct
A generic methodology that ensures integration by creating very strong linkages of project selection and priority to the strategic
plan is then discussed. The intended outcomes are clear organization focus, best use of scarce organization resources (people,
equipment, capital), and improved communication across projects and departments.

6. Project managers who do not understand the role that their project plays in accomplishing the organization's strategy tend to
make all the following mistakes except:
A. Focusing on low priority problems
B. Overemphasizing technology as an end in and of itself
C. Focusing on the immediate customer
D. Trying to solve every customer issue
E. All the above are likely mistakes
See list on page 24.

9. Which of the following is not true for strategic management?

A. It should be done once each year just before developing the operating plan
B. It supports consistency of action at every level of the organization
C. It develops an integrated and coordinated long-term plan of action
D. It positions the firm to meet the needs of its customers
E. All of these are true statements
Two major dimensions of strategic management are responding to changes in the external environment and allocating scarce
resources of the firm to improve its competitive position. Constant scanning of the external environment for changes is a major
requirement for survival in a dynamic competitive environment.

10. Which of the following is the correct order for the strategic management process?
A. Strategies, mission, goals, projects
B. Goals, projects, mission, strategies
C. Mission, goals, strategies, projects
D. Goals, mission, strategies, projects
E. Projects, mission, strategies, goals
See list on page 26.

13. Which of the following is not one of the characteristics of effective objectives?
A. Realistic
B. Assignable
C. Flexible
D. Specific
E. Measurable
See Exhibit 2-1 on page 29.
14. Strategy formulation includes which of the following activities?
A. Determining alternatives
B. Creating profitability targets
C. Evaluating alternatives
D. Both a and c are correct
E. A, B, and C are all correct
Strategy formulation includes determining and evaluating alternatives that support the organization's objectives and selecting the
best alternative.

16. Which of the following would not be classified as an organizational threat?

A. Slowing of the economy
B. A maturing life cycle
C. Poor product quality
D. Government regulations
E. All of these are organizational threats
Examples of perceived external threats could be a slowing of the economy, a maturing life cycle, exchange rates, or government
regulation.

17. Which of the following would not be classified as an organizational opportunity?

A. Increasing product demand
B. Excellent employees
C. Emerging markets
D. demographics
E. All of these are organizational opportunities
Typical opportunities are increasing demand, emerging markets, and demographics. Managers or individual firms have limited
opportunities to influence such external environmental factors; however, in recent years notable exceptions have been new
technologies such as Apple using the iPod to create a market to sell music.

19. Which of the following terms is often used to denote a project that a powerful, high-ranking official is advocating?
A. Sacred cow
B. Pet project
C. Political necessity
D. Special undertaking
E. Strategic ploy
The term "sacred cow" is often used to denote a project that a powerful, high-ranking official is advocating.

21. Project selection criteria are typically classified as:

A. Financial and non-financial
B. Short-term and long-term
C. Strategic and tactical
D. Required and optional
E. Cost and schedule
Although there are many criteria for selecting projects, selection criteria are typically identified as financial and nonfinancial.

22. Which of the following financial models are typically included in project selection?
A. Payback
B. Net present value
C. Internal rate of return
D. Both A and B are correct
E. A, B, and C are all correct
For most managers financial criteria are the preferred method to evaluate projects. These models are appropriate when there is a
high level of confidence associated with estimates of future cash flows; These models are payback and net present value (NPV).

23. Projects are usually classified into all but one of the following categories. Which one is not one of the typical classifications?
A. Compliance and emergency
B. Operational
C. Strategic
D. Political necessity
E. All of these are typical classifications
Many organizations find they have three different kinds of projects in their portfolio: compliance and emergency (must do),
operational, and strategic projects.

27. In the Snapshot from Practice, Intel's CEO has concentrated Intel's strategy toward?
A. Creating chips to support the digital device market
B. Eliminating AMD as a competitor
C. Strengthening Intel's position in the PC market
D. Expanding Intel's international market
E. Expand efforts in the mainframe computer market
Barrett wants INTEL chips to be the guts of every digital device on the planet—especially in the communications, consumer
electronics, and entertainment industries. Think—cell phones, wireless home networks, video players, flat panel TVs—INTEL's
expertise fits right in.

29. A major project proposal form will likely include all of the following except:
A. Project Classification
B. Schedule objective
C. Major deliverables of the project
D. How success will be measured
E. All of these are likely to be included

30. Which of the following is a common multicriteria selection model?

A. Checklist
B. Net Present Value
C. Weighted criteria model
D. Both A and C are correct
E. All of these are common multicriteria selection models

Fill in the Blank Questions

31. Successful ________ requires strong links among mission statements, goals, objectives, and strategies.
strategic management
32. ________ change infrequently and may require revision only when the nature of the business changes or shifts.
Mission statements
33. ________ translate the organization's mission statement into specific, concrete, and measurable terms.
Objectives
39. In a SWOT analysis, strong competition, reduced product demand, and a maturing product life cycle are examples of
________.
threats

45. The _______ financial model measures the time it will take to recover the project investment.
payback

46. The ________ financial model measures the current value of all cash inflows and outflows using management's minimum
desired rate of return.
net present value (NPV)

49. In classifying the kinds of projects an organization has in its portfolio, ________ projects are typically those that directly
support the organization's long run mission.
strategic

True / False Questions

54. Project Management historically has been preoccupied solely with the planning and execution of projects while strategy was
under the purview of senior management.
TRUE

55. The problem in many organizations is not with formulating strategies but with implementing the strategies.
TRUE

56. A written mission statement provides focus for decision making when shared by organizational managers and employees.
TRUE

61. If a proposed project does not meet one of the designated "must" objectives it is immediately removed from consideration.
TRUE

62. Using the Project Portfolio Matrix, revolutionary commercial advances using proven technical advances are classified as
Oyster projects.
FALSE

63. It is necessary to have exactly the same strategic and operations criteria for different projects
FALSE

64. The two axes of the Project Portfolio Matrix are technical feasibility and commercial potential.
TRUE

65. Many organizations find they have three different kinds of projects in their portfolio, compliance, operational, and sacred
cows.
Refer to 2.2
FALSE

69. The information gap refers to the lack of understanding and consensus of organization strategy among top and middle-level
managers.
FALSE
70. One way to offset the influence of politics on project management within an organization is to have a well-defined project
selection model.
TRUE
Top management needs to develop a system for identifying and selecting projects that reduces the impact of internal politics and
fosters the selection of the best projects for achieving the mission and strategy of the firm.

73. The NPV financial model measures the time it will take to recover the project investment.
FALSE
The net present value (NPV) model uses management's minimum desired rate-of-return (discount rate, for example, 20 percent)
to compute the present value of all net cash inflows.

75. Multi-weighted scoring models include only quantitative criteria, not qualitative.
FALSE
Weighted scoring models will generally include qualitative and/or quantitative criteria.

Chapter 03 Organization: Structure and Culture Answer Key

Multiple Choice Questions

1. Organizational culture is best explained as organizational

A. Personality
B. Hierarchy
C. Reporting relationships
D. Background
E. Management style
A simple explanation of organizational culture is that it reflects the "personality" of an organization.

AACSB: Analytic
Bloom's: Comprehension
Learning Objective: Project Management Structure
Level: Medium

3. Organizations have difficulty in creating a system for managing projects because

A. Contrary to typical operations, projects are one-time efforts
B. Projects are multidisciplinary while organizations are usually departmentalized by discipline
C. Projects are not focused on profits
D. Both a and b are correct
E. A, B, and C are all correct
Many business organizations have struggled with creating a system for organizing projects while managing ongoing operations.

4. The structure that manages projects within the existing organizational structure is __________ organization.
A. Functional
B. Balanced matrix
C. Weak matrix
D. Strong matrix
E. Project
One approach to organizing projects is to simply manage them within the existing functional hierarchy of the organization. Once
management decides to implement a project, the different segments of the project are delegated to the respective functional units
with each unit responsible for completing its segment of the project.
6. Which of the following is an advantage of a functional project management organization?
A. Maximum flexibility in the use of staff
B. Good integration across functional units
C. Shorter project duration
D. Strong motivation of project team members
E. All of these are advantages
There is maximum flexibility in the use of staff. Appropriate specialists in different functional units can temporarily be assigned
to work on the project and then return to their normal work.

9. A project team that operates with a full-time project manager as a separate unit from the rest of the organization is structured as
a ________ organization.
A. Functional
B. Balanced matrix
C. Weak matrix
D. Strong matrix
E. Projectized
Level: Easy

11. MegaComputers, Inc. has assigned a project manager for each of the five new-product teams. The managers as well as the
project team members work on the projects on a full-time basis. The structure being used is ________ organization.
A. Functional
B. Balanced matrix
C. Weak matrix
D. Strong matrix
E. Project
Instead of one or two special projects, the organization consists of sets of quasi-independent teams working on specific projects.

AACSB: Analytic
Bloom's: Comprehension
Learning Objective: Project Management Structure
Level: Medium

12. Which of the following structures is referred to in popular literature as a projectized form of organizations?
A. Functional organization
B. Balanced matrix organization
C. Weak matrix organization
D. Strong matrix organization
E. Projectized organization

14. Projectitis is most likely to occur in the _______ organization structure.

A. Functional
B. Balanced matrix
C. Weak matrix
D. Strong matrix
E. Project

16. _________ organization is a hybrid form in which a horizontal project management structure is overlaid in the normal
functional hierarchy.
A. Functional
B. Matrix
C. Project
D. Balanced
E. A, B, and C are all correct
Matrix management is a hybrid organizational form in which a horizontal project management structure is "overlaid" on the
normal functional hierarchy.

19. The project manager has the responsibility to answer which of the following questions?
A. What task has to be done?
B. Who will do the task?
C. How will the task be done?
D. How well has the functional input been integrated?
E. Why will the task be done?
See table 3.1 on page 73.

20. Matrix management violates the management principle of

A. Span of control
B. Unity of command
C. Parity principle
D. Empowerment
E. All of these management principles
21. All are negotiated issues except:
A. Who will do the task?
B. Where will the task be done?
C. Why will the task be done?
D. Is the task satisfactorily completed?
E. The total cost of the project

22. The project structure that is ranked as least effective is _______ organization.
A. Functional
B. Balanced matrix
C. Weak matrix
D. Strong matrix
E. Project

23. The project structure that is ranked as most effective for developing new products is ______ organization.
A. Functional
B. Balanced matrix
C. Weak matrix
D. Strong matrix
E. Project

24. From the list below, which is not a primary characteristic of organization culture?
A. Control
B. Team emphasis
C. History
D. Conflict tolerance
E. Risk tolerance
25. Factors in identifying cultural characteristics include all the following except
A. Norms.
B. Customs.
C. Values.
D. Both B and C are correct.
E. A, B, and C are all correct.
27. Who is responsible for determining what tasks have to be done in a matrix project management structure?
A. The functional manager
B. The project manager
C. Both are responsible
D. This is no pattern of who takes responsibility
E. None of these are true
The project manager controls most aspects of the project, including scope trade-offs and assignment of functional personnel. The
project manager controls when and what specialists do and has final say on major project decisions.

28. The Macintosh development team at Apple is a good example of what kind of project structure?
A. Project
B. Balanced Matrix
C. Project Matrix
D. Functional Matrix
E. Functional

31. Which of the following cultural characteristics relates to the degree to which work activities are organized around groups
rather than individuals?
A. Member identity
B. Team emphasis
C. Managerial focus
D. Unit integration
E. Control
33. Which of the following cultural characteristics relates to the degree to which groups within the organization are encouraged to
operate in a coordinated or independent manner?
A. Member identity
B. Team emphasis
C. Managerial focus
D. Unit integration
E. Control
34. Which of the following cultural characteristics relates to the degree to which management focuses on outcomes rather than on
techniques and processes used to achieve those results?
A. Risk tolerance
B. Reward criteria
C. Conflict tolerance
D. Means versus end orientation
E. Open-systems focus

Fill in the Blank Questions

35. A simple explanation of ________ is that it reflects the personality of an organization.

organizational culture
Organizational culture refers to a system of shared norms, beliefs, values, and assumptions which binds people together, thereby
creating shared meanings.

36. The ________ organizational approach to project management uses the existing hierarchy of the organization to manage
projects.
functional

39. At Apple Computer, the Macintosh development team was isolated in a separate building and given the prime directive to
develop a breakthrough computer as quickly as possible. This is an example of using the ________ organizational approach to
project management.
project

40. A high level of motivation and the tendency for projects to get done more quickly are benefits of using the ________
organizational approach to project management.
project

41. ________, a strong feeling of we-they divisiveness, can undermine the integration of the eventual outcomes of the project
into mainstream operations.
Projectitis

44. Strong, heavyweight, or ________ is used to describe a matrix in which the balance of authority is strongly on the side of the
project manager.
project matrix
45. One key factor that determines the relative importance of project and functional managers is the determination of which and
how _________ are to be performed.
tasks or activities

48. The ________ matrix form of project organization is likely to improve technical quality as well as provide a better system for
managing conflict across projects because the functional manager assigns personnel to different projects.
weak

50. __________ were originally developed as a response to the poor track record many companies had in completing projects on
time, within budget, and according to plan.
Project offices

52. Research suggests that there is a strong connection between project management structure, organization ________, and
project success.
culture
53. Organization ________ refers to a system of shared norms, beliefs, values, and assumptions which bind people together,
thereby creating shared meanings.
culture

54. In a Snapshot from Practice, at ________ Corporation, employees put in the hours necessary to get a job done, even if it
requires staying up all night; however, they also may stay home to tend to a sick child and do makeup work at some other time.
Microsoft

61. Many organizations have struggled with project management organization because projects contradict fundamental design
principals associated with traditional organizations.
TRUE
62. The project form of project management structure is commonly used when one functional area plays a dominant role in
completing the project or has a dominant interest in the success of the project.
FALSE

63. The matrix form of project management structure is a good choice when the scope of the project is narrow and maximum
flexibility in staff usage is important.
FALSE
64. A disadvantage of using the functional form of project management structure is that projects generally take longer to
complete.
TRUE
65. The functional project team is usually physically separated from the parent organization and given the primary directive of
accomplishing the objectives of the project.
FALSE
66. In the projectized form of company organization the main responsibility of traditional functional departments is to assist and
support the project teams.
TRUE
67. The project form of project management structure is a good choice when speed of completion of the project without directly
disrupting ongoing operations is important.
TRUE
68. One of the major disadvantages of the project form of project management structure is that it tends to be more expensive than
other forms of organizing.
TRUE
69. Creating teams using the project form of project management structure results in the maximum technological expertise being
brought to bear on project problems.
FALSE

74. The three forms of matrix project management are weak, mixed, and strong.
FALSE
75. Whether a matrix is weak or strong is determined by the extent to which the project manager has direct authority over project
participants.
TRUE

76. In a balanced matrix form of project management, the project manager is responsible for defining what needs to be
accomplished while the functional managers are concerned with how it will be accomplished.
TRUE

77. The matrix form of project management is predicated on tension between functional managers and project managers who
bring critical expertise and perspectives to the project.
TRUE

78. Project management offices were originally developed to make optimal use of scarce project resources.
FALSE
79. The functional form of project management has been rated as the most effective of the various forms of organizing project
teams.
FALSE
When thinking only in terms of what is best for the project, the creation of an independent project team is clearly favored.

80. Organizational culture refers to a system of shared norms, beliefs, values, and assumptions which bind people together.
TRUE

Chapter 04 Defining the Project Answer Key

Multiple Choice Questions

1. The method used to collect information to use through all phases of the project life cycle is called
A. Responsibility matrix
B. Organization breakdown structure
C. Work breakdown structure
D. Priority matrix
E. Work package

2. Jose is looking at a document that outlines the specific tasks and subtasks required to complete the writing of a technical
support manual. The method that was probably used to develop the document is most likely
A. Responsibility matrix
B. Organization breakdown structure
C. Work breakdown structure
D. Priority matrix
E. Work package
3. The first step in creating the necessary information to manage a project is to
A. Establish project priorities
B. Define the project scope
C. Verify the budget available
D. Assign team members to work on the project
E. Determine the required completion date
4. Linda has just been assigned a project to develop a new advertising campaign for an established product. Her first step should
be to
A. Establish project priorities
B. Define the project scope
C. Verify the budget available
D. Assign team members to work on the project
E. Determine the required completion date
6. An expected output over the life of a project would be classified as
A. A deliverable
B. A product
C. An end object
D. An objective
E. A target

8. In reviewing the project plan, Susan sees that the first prototype is due by October 12. This would be best classified as a
A. Project target
B. Limit item
C. Milestone
D. Project objective
E. Critical goal
9. The ability of 911 emergency systems to identify the caller's phone number and location are considered to be a
A. Technical requirement
B. Milestone
C. Project limit
D. Project exclusion
E. Project deliverable
10. Which of the following is not one of the items that would appear on a project scope checklist?
A. Deliverables
B. Technical requirements
C. Objectives
D. Work breakdown structure
E. Reviews with customer

11. "To construct a high-quality, custom home within five months at costs not to exceed $150,000" is best classified as
A. A deliverable
B. A milestone
C. An objective
D. A limit
E. An exclusion

12. The second step in the defining of a project would be to

A. Analyze the strategic plan
B. Analyze the current budget plan
C. Establish project priorities
D. Select team members
E. Define the major objectives to meet the customer's needs

13. Which of the following is not one of the basic classifications of project priorities?
A. Profit
B. Cost
C. Time
D. Performance
E. All of these are basic classifications
14. If a project criterion indicates that the project must meet a specific date, that criterion is classified as
A. Constrained
B. Enhanced
C. Accepted
D. Limited
E. Fixed
15. Scott has just been given a project that has a specific target date. After discussion with top management he finds that while
the date is important the cost is more important and a slip in delivery would be acceptable if required to meet the cost targets. The
target date is best classified as
A. Constrain
B. Enhance
C. Accept
D. Limit
E. Optional

17. The lowest element in the hierarchical breakdown of the WBS is

A. A deliverable
B. A work package
C. A cost account
D. A lowest sub deliverable
E. An object

18. The highest element in the hierarchical breakdown of the WBS is

A. A work package
B. Sub deliverables
C. A cost account
D. Major deliverables
E. The project

21. The integration of project work packages within the organization's management structure is known as
A. Responsibility matrix
B. Organization breakdown structure
C. Work breakdown structure
D. Priority matrix
E. Process breakdown structure

22. The final step in the creation of a Work Breakdown Structure is to

A. Code the WBS for tracking
B. Assign the cost account to a manager
C. Assign the work package to a manager
D. Develop the responsibility matrix
E. All of these are included in the final step
23. The intersection of the WBS and the OBS is called the
A. Responsibility matrix
B. Priority matrix
C. Work package
D. Cost account
E. Project overlap
24. Creating an extranet website or an internal software database system would be most closely associated with the
A. Responsibility matrix
B. Organization breakdown structure
C. Work breakdown structure
D. Priority matrix
E. Process breakdown structure
The classic WBS is when the project is broken down to the lowest manageable deliverable and subsequent work packages.

25. If a project is small or of narrow scope and does not require an elaborate system, which of the following is a good choice?
A. Responsibility matrix
B. Organization breakdown structure
C. Work breakdown structure
D. Priority matrix
E. Process breakdown structure
26. The project scope statement indicates that the client is responsible for training the people who will be using the equipment
and that the project team will train the client's trainers. This is an example of:
A. Project objectives
B. Deliverables
C. Limits and exclusions
D. Technical requirements
E. Milestones

28. Which of the following is a good example of a Process Breakdown Structure?

A. New car prototype
B. New software program
C. New computer hardware
D. New sports stadium
E. New project management book

29. Which of the follow is least likely to be included in a Work Package?

A. Materials
B. Labor
C. Overhead
D. Duration
E. Responsibilities
30. The Snapshot from Practice dealing with Big Bertha II illustrated how important a project's __________ is to the successful
completion of a project.
A. Objective
B. Deliverables
C. Technical requirements
D. Milestones
E. Limits and exclusions

Fill in the Blank Questions

31. A selective outline of the project that ensures the identification of all tasks and an understanding of what is to be done is
called a _______________.
work breakdown structure
32. The first step in planning any project is to ________.
define the project scope
33. The primary purpose of the first step of defining a project is to identify the ________ for the end user and to focus project
plans.
objective

35. The need for a computer to function in countries having different electrical systems is an example of a ________.
technical requirement

41. The result of subdividing the work of a project into smaller and smaller work elements is called ________.
work breakdown structure

42. The most detailed element in the hierarchical breakdown of the project work to be accomplished is known as the ________.
work package
43. A(n) ________ is a grouping of work packages for monitoring progress and responsibility.
cost account
45. The process of assigning specific work packages to a particular group or person within the organization is called ________.
organization breakdown structure

48. Once the __________ has been established, it is the basis for making trade-off decisions later in the project.
Priority Matrix
49. In a ________ the project is organized around phases or groups of activities rather than the more conventional deliverables.
work breakdown structure

True / False Questions

55. The development of a work breakdown structure with appropriate dates and budget is usually accomplished in a single
iteration.
FALSE
56. Studies suggest that there is a strong correlation between project success and clear project scope definition.
TRUE

57. Project scope describes what you expect to deliver to your customers when the project is complete.
TRUE

58. One of the items included on a project scope checklist is the reviews with the customer.
TRUE

59. Quality and the ultimate success of a project are traditionally defined as meeting or exceeding the expectations of the
customer or management.
Refer to Figure 4.1
TRUE

60. The criteria for project success include attaining objectives relating to cost, schedule, and revenue.
Refer to Figure 4.1
FALSE

62. If a project criterion should be optimized if at all possible, it is classified as being constrained.
FALSE
63. Basically, the WBS is an outline of the project with different levels of detail.
TRUE
64. In general, work packages should not exceed 10 work days.
TRUE
Practice suggests a work package should not exceed 10 workdays or one reporting period. If a work package has a duration
exceeding 10 days, check or monitoring points should be established within the duration, say, every three to five days, so
progress and problems can be identified before too much time has passed.
65. In a Work Breakdown Structure for a software development project, the typical structure follows the major phases of
software development.
Refer to Figure 4.4
TRUE

66. Integrating a project's work packages within the organization's management structure is known as work breakdown structure.
FALSE
Work packages are short duration tasks that have a definite start and stop point, consume resources, and represent cost.

67. Scope definitions are usually brief with only one or two pages being typical for small projects.
TRUE
68. A work breakdown structure is frequently used on projects such as software development where the project is focused on
activities rather than deliverables.
Refer to Snapshot from Practice on Page114
TRUE
69. Responsibility matrices are used primarily with small and medium sized projects and have limited use in large projects.
FALSE
70. In a work breakdown structure deliverables are ignored and replaced with activities or tasks that have been grouped in
phases.
FALSE
71. The intersection of the WBS and the OBS represents a control point, called a cost account.
TRUE
73. For large companies, the organization breakdown structure is used rather than the work breakdown structure.
FALSE
The OBS defines the organization subdeliverables in a hierarchical pattern in successively smaller and smaller units. Frequently,
the traditional organization structure can be used. Even if the project is completely performed by a team, it is necessary to break
down the team structure for assigning responsibility for budgets, time, and technical performance.

AACSB: Reflective Thinking

Bloom's: Knowledge
Learning Objective: Step 4: Integrating the WBS with the Organization
Level: Medium

74. The hierarchical work breakdown structure can be used to represent the need for information at various levels of
management.
TRUE

76. Reviews with customers only refers to projects with external customers who are paying for the project.
FALSE