1. What are the five major processes associated with every project? These are the same as the five Process Groups according to the PMBOK.

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1 CTC/ITC 310 Program Management California State University Dominguez Hills Instructor: Howard Rosenthal Final Exam Dec. 7, 2017 All questions are 4 points unless indicated otherwise Answer Key 1. What are the five major processes associated with every project? These are the same as the five Process Groups according to the PMBOK. Initiating Planning Executing Monitoring and Controlling Closing 2. List four Subsidiary plans that are included in the Project Management Plan. Scope Management Plan Requirements Management Plan Schedule Management Plan Cost Management Plan Quality Management Plan Process Improvement Plan Human Resource Management Plan Communications Management Plan Risk Management Plan Procurement Management Plan Stakeholder Management Plan Change Management Plan that documents how changes will be monitored and controlled Configuration Management Plan that documents how configuration management will be performed 3. Define both Product Scope and Project Scope and explain the difference between the two. Product Scope includes the features and functions that characterize a product, service, or result. Project Scope includes the work performed to deliver a product, service, or result with the specified features and functions. The first involves the product itself while the second includes everything necessary to deliver that product, including planning, executing, monitoring and controlling and closing the project. 4. What is meant by Cost of Quality? Cost of quality (coq) refers to the total cost of the conformance work and the nonconformance work that should be done as a compensatory effort because, on the first attempt to perform that 1

2 work, the potential exists that some portion of the required work effort may be done or has been done incorrectly. The costs for quality work may be incurred throughout the deliverable s life cycle Decisions made by the project team can impact the operational costs associated with using a completed deliverable. Post-project quality costs may be incurred because of product returns, warranty claims, and recall campaigns Because of the temporary nature of projects and the potential benefits that may be derived from reducing the post-project cost of quality, sponsoring organizations may choose to invest in product quality improvement These investments generally are made in the areas of conformance work that act to prevent defects or act to mitigate the costs of defects by inspecting out nonconforming units 5. Define correlation and causation and describe the difference between the two. Correlation A statistical measure that indicates the extent to which two or more variables fluctuate together A positive correlation indicates the extent to which one variable increases as the other increases A negative correlation indicates the extent to which one variable decreases as the other increases Causation The capacity of one variable to actually influence another Can be positive or negative Must be repeatable and have an objective reason that goes beyond correlation 6. List two items included in the Staffing Management Plan. Timetables for staff acquisition and release Identification of training needs Team-building strategies Plans for recognition and rewards programs Compliance considerations Safety issues Impact of the Staffing Management Plan on the organization 7. Define and describe Maslow s Hierarchy of Needs. Maslow saw human needs in the form of a hierarchy, ascending from the lowest to the highest, and he concluded that when one set of needs is satisfied, this kind of need ceases to be a motivator. Needs can be categorized as: Physiological: These are important needs for sustaining the human life. Food, water, warmth, shelter, sleep, medicine and education are the basic physiological needs which fall 2

3 in the primary list of need satisfaction. Maslow believed that until these needs were satisfied to a degree to maintain life, no other motivating factors can work. Security or Safety: These are the needs to be free of physical danger and of the fear of losing a job, property, food or shelter. It also includes protection against any emotional harm. Social: Since people are social beings, they need to belong and be accepted by others. People try to satisfy their need for affection, acceptance and friendship. Esteem: According to Maslow, once people begin to satisfy their need to belong, they tend to want to be held in esteem both by themselves and by others. This kind of need produces such satisfaction as power, prestige status and self-confidence. It includes both internal esteem factors like self-respect, autonomy and achievements and external esteem factors such as states, recognition and attention. Self-Actualization: Maslow regards this as the highest need in his hierarchy. It is the drive to become what one is capable of becoming; it includes growth, achieving one s potential and self-fulfillment. It is to maximize one s potential and to accomplish something. 8. List 4 sources of conflict. Sources of conflict include Scarce resources Scheduling priorities Personal work styles Technical Disputes Personality conflicts 9. List and briefly describe any 2 of the 6 conflict resolution techniques. Confronting (Problem Solving) Solving the problem so that it goes away, creating a win-win situation Compromising Searching for solutions that bring some degree of satisfaction to all parties in order to temporarily or partially resolve the conflict. This is considered lose-lose and is not considered as good confronting Withdraw/Avoidance Retreating from an actual or potential conflict situation; postponing the issue to be better prepared or to be resolved by others. This is not what a good PM does in most situations Smoothing/Accommodating Emphasizing areas of agreement rather than areas of difference; conceding one s position to the needs of others to maintain harmony and relationships. Collaborating Incorporating multiple viewpoints and insights from differing perspectives; requires a cooperative attitude and open dialogue that typically leads to consensus and commitment Force/direct Pushing one s viewpoint at the expense of others. Offering only win-lose solutions, usually enforced through a power position to resolve an emergency. 3

4 10. What do we call a positive risk? An opportunity 11. What is the Risk Register? The risk register is a document in which the results of risk analysis and risk response planning are recorded and include List of identified risks The identified risks are described in as much detail as is reasonable. A structure for describing risks using risk statements may be applied, for example, EVENT may occur causing IMPACT, or If CAUSE exists, EVENT may occur leading to EFFECT In addition to the list of identified risks, the root causes of those risks may become more evident List of potential responses 12. In which Process Group do we find the Develop Project Charter process? The Initiating Process Group 13. What is the business case and what does it include? The business case or similar document describes the necessary information from a business standpoint to determine whether or not the project is worth the required investment. The business case is commonly used for decision-making by managers or executives above the project level. The business need and the cost-benefit analysis are contained in the business case to justify and establish boundaries for the project. 14. If you can develop a product for $3M and sell it for $5M what is the Benefits Cost Ratio? 5/3 = John invests $3,500 now, receives 2 yearly payments of $1200 and $1500, and a final payment of $800 in the third year. What is his Net Present Value (NPV) if he uses a 10% interest rate throughout? Now: PV = -$3500 Year 1: PV = $1200 / 1.10 = $ Year 2: PV = $1500 / = $ Year 3 (final payment): PV = $800/ = $ NPV = ( ) -$3500 = -$ List 2 of the 5 main inputs to the Create WBS process. Scope Management Plan Project Scope Statement 4

5 Requirements Documentation Enterprise Environmental Factors Organizational Process Assets 18. What is the lowest level of hierarchy displayed in the WBS? The Work Package 19. List 4 elements of the Project Scope Statement. Project goals Product description Project requirements (at a high level) Project constraints Project Assumptions Risks related to the scope Objective criteria for accepting the product 20. Define what a Control Account is. A control account is a management control point where scope, budget, actual cost, and schedule are integrated and compared to earned value for performance measurement. 21. List 4 different characteristics of a good WBS decomposition. It must be detailed down to a low level The lowest level means that the work packages have identified every project deliverable It is graphical and hierarchical Each sub-level rolls up to the level above it It has a hierarchical numbering system It must be sufficiently detailed so that subsequent planning, including activity identification, can proceed It must be complete If an item is not in the WBS it is not in the scope of the project The project team, or at least the leaders, should be building the WBS, not just the PM It should help define team responsibilities It is an integration tool, allowing you to see where the individual pieces of work fit into the project as a whole It should be a useful communications tool 22. How is an activity different from a WBS element? Activities describe actions (work) whereas WBS elements describe deliverables. 5

6 23. List 4 attributes of an activity. Activity identifier or code Activity name Activity description Predecessor and successor activities Logical relationships Leads and lags Imposed dates Constraints Assumptions Required resources and skill levels Geography or location of performance Type of effort 24. Define predecessor activity and define successor activity. A predecessor activity is an activity that logically comes before a dependent activity in a schedule A successor activity is a dependent activity that logically comes after another activity in a schedule 25. List and briefly define the four types of dependencies between activities. Finish-to-start (FS) is a logical relationship in which a successor activity cannot start until a predecessor activity has finished. Finish-to-finish (FF) is a logical relationship in which a successor activity cannot finish until a predecessor activity has finished. Start-to-start (SS) is a logical relationship in which a successor activity cannot start until a predecessor activity has started. Start-to-finish (SF) is a logical relationship in which a successor activity cannot finish until a predecessor activity has started. 26. Define what a schedule lead is. A lead is the amount of time whereby a successor activity can be advanced (start early) with respect to completion of a predecessor activity. A lead allows you to get a head start on a predecessor activity 27. Define what a schedule lag is. A lag is the amount of time whereby a successor activity will be delayed in starting relative to a predecessor activity. 6

7 28. List two things that the project manager must do as a part of the estimating process. The PM must analyze the needs of the project and create his/her own estimates based on team inputs The PM must reconcile the competing interests and estimates to produce reasonable estimates that will meet the stated objectives The project manager must regularly calculate the estimate to complete (ETC) for the project and used the approved procedures to update the estimates when necessary Estimates must be reviewed by the PM to see if they are reasonable, and to check for either padding or unaccounted for risks Estimates need to be reviewed periodically in accordance with company and policies and contractual requirements (at a minimum) Estimates can sometimes be revised downwards by reducing risk Once the estimates are finalized the PM must try to live within those estimates 29. List two possible results if you schedule too aggressively. If you are too aggressive with your estimates you will start out behind schedule and never be able to catch up The more aggressive the estimate, the higher the risk you have of running over the schedule, and probably the budget as well. 30. Define bottom-up estimating. Bottom-up estimating is a method of estimating project duration or cost by aggregating the estimates of the lower-level components of the WBS When an activity cannot be estimated with a reasonable degree of confidence, the work within the activity is decomposed into more detail and the resource needs are estimated These estimates are then aggregated into a total quantity for each of the activity s resources 7

8 Formulas Note: It may or may not be true that all of these formulas are need for the exam. Benefits Cost Ratio (BCR) = benefits/cost Economic Value Added (EVA) = (after-tax profit) (capital invested*cost of capital) Present Value (PV) = FV/(1 + r) n Note FV is final value Return On Investment (ROI) = ((benefit cost)/cost)*100 % 8