- Which of the following is a tool used to secure expert judgment?
- Peer review
- Delphi technique
- Expected value technique
- Work Breakdown Structure (WBS)
The 'Delphi technique' is a commonly used tool to secure expert judgment while initiating a project.
'Peer review' is a project selection tool, 'Expected value' is a method quantitative risk analysis, and 'WBS' is a project-planning tool.
- Based on the information provided below, which project would you recommend pursuing?
Project I, with BCR (Benefit Cost ratio) of 1:1.6;
Project II, with NPV of US $ 500,000;
Project III, with IRR (Internal rate of return) of 15%
Project IV, with opportunity cost of US $ 500,000.
- Project I
- Project III
- Either project II or IV
- Can not say from the data provided
Project III has an IRR of 15%, which means the revenues from the project equal the cost expended at an interest rate of 15%.
This is a definitive and a favorable parameter, and hence can be recommended for selection.
Project I have an unfavorable BCR and hence cannot be recommended.
Information provided on projects II and IV is not definitive, and hence neither of projects II and IV qualifies for a positive recommendation.
- What the project manager to ensure that all work in the project is included should do?
- Create a contingency plan
- Create a risk management plan
- Create a WBS
- Create a scope statement
A WBS is a deliverable oriented grouping of project components that organizes and defines the total scope of the project.
- What kind of a relationship is implied when completion of a successor is dependent on initiation of its predecessor?
- finish-to-start (FS)
- finish-to-finish (FF)
- start-to-start (SS)
- start-to-finish (SF)
A start-to-finish (SF) relationship between two activities implies that the completion of successor is dependent on the initiation of its predecessor.
A finish-to-start (FS) relationship between two activities implies that the initiation of successor is dependent on the completion of predecessor.
A finish-to-finish (FF) relationship between two activities implies that the completion of successor is dependent on the completion of predecessor.
A start-to-start (SS) relationship implies that the initiation of successor is dependent on the initiation of predecessor..
- What should a project manager do or follow to ensure clear boundaries for project completion?
- Scope verification
- Complete a scope statement
- Scope definition
- Risk management plan
The project team must complete a scope statement for developing a common understanding of the project scope among stakeholders. This lists project deliverables - summary level sub-products, whose full and satisfactory delivery marks the completion of the project.
Scope verification is the process of securing a formal acceptance of the project scope by stakeholders.
Scope definition is the process of subdividing the major project deliverables into smaller, more manageable components.
A risk management plan involves setting up processes for identifying and dealing with project risks.
- An organization is certified to a stringent environmental standard and uses that as the key differentiator with its competitors. Alternative identification during scope planning for a particular project has thrown up an expeditious approach to achieve a project need, but this involves a risk of environmental contamination. The team evaluates that the likelihood of the risk is very low. What should the project team do?
- Drop the alternative approach
- Work out a mitigation plan
- Procure an insurance against the risk
- Plan all precautions to avoid the risk
The organization's reputation being at stake, the threshold for such a risk would be very low.
Mitigation plan against an environmental contamination would mean reducing the impact, which may not be a plausible response.
Procuring an insurance against the risk would only transfer the monetary impact of the risk, and not the intangible impact like, the reputation of the organization.
Planning precautions against the occurrence would still leave an opportunity of occurrence.
This cannot be completely avoided.
The best option would be to drop the approach - that is, complete avoidance of the risk.
- The following three tasks form the entire critical path of the project network.
The three estimates of each of these tasks are tabulated below. How long would the project take to complete expressed with an accuracy of one standard deviation?
- 75.5 +/- 5.08
- 75.5 +/- 8.5
- 75.5 +/- 2.83
The critical path is the longest duration path through a network and determines the shortest time to complete the project. The PERT estimates of the tasks listed are 27, 22.5 & 26. Therefore, the length of the critical path of the project is 27+22.5+26 = 75.5.
The standard deviations of the estimates of the three tasks are determined as (P-O)/6 = 2, 3.83 & 2.67 respectively. The standard deviation of the total path is determined as Sq. root (sum of variances), where variance = square of standard deviation. Thus, standard deviation of critical path = Sq. root (4+14.67+7.13) = 5.08.
- After a study of the work processes on a project, a quality audit team reports to the project manager that irrelevant quality standards were being used by the project, which might lead to rework. What was the objective of the project manager in initiating this study?
- Quality control
- Quality planning
- Checking adherence to processes
- Quality assurance
Determining validity of quality standards, followed by the project is a 'quality assurance' activity.
Compliance of work results to required specifications is a 'quality control' activity.
Determining quality standards is a 'quality planning' activity.
'Checking adherence to processes' is a quality audit activity to ensure that standard operating procedures or job instruction documents (SOPs or JIDs) are being followed for producing the deliverables of the process.
- Which of the following provides the foundation for team development?
- Organizational development
- Conflict Management
- Individual Development
Individual development (managerial and technical) is the foundation of a team.
- Which of the following is NOT an input to project plan execution?
- Work authorization system
- Project plan
- Corrective action
- Preventive action
A Project plan is the basis of project plan execution and is a primary input.
Work authorization system is a tool used for orchestrating execution of various project tasks.
Whereas, Corrective and Preventive actions are inputs to the project plan execution process from various controlling processes.