Download Project Management Fundamentals: A Comprehensive Guide and more Exams Business Informatics in PDF only on Docsity!
Project Management Certification Program
What is a Project? correct answer a project is a temporary endeavor undertaken to create a unique product or service. Project has a life Cycle correct answer Every project has a life cycle with definite start and end dates. Project is Unique in Nature correct answer The important tasks within a work are called projects. Thus, projects differ from on-going operations, as they come into existence for a unique activity. Project has an objective correct answer In the above example, the objective is to develop a new technology within the time schedule, resources, and budget earmarked for the purpose. A project is deemed successful only if:
- it is completed 2.The completion is within the budget
- The completion is within the scheduled time
- The completion satisfies the stakeholders. Project Involves Risks correct answer There are certain risks associated with all kinds of projects. Project is an Amalgam of Different Activities correct answer There are different activities involved in a Project. All such activities are to be completed to complete the project. Project is a single Entity correct answer This single entity called project is a responsibility of one Project Manager. Project Involves Sub-Contracted Work correct answer A project can have as much as 70-80% of its work being sub-contracted to external agencies. Project is a Collaborative Effort correct answer In the context of Project Management, a project is a team effort.
Project Grows in Stages correct answer Once the project has been initiated, everything seems to fall into place. How do Projects Differ from One Another? correct answer Speed, Location, Size, Scope, and Technology Construction Projects correct answer Involve building structures like offices, factories, schools, and mansions. Research Projects correct answer Involve studying, testing, and examining a given subject, product, or service. Re-engineering Projects correct answer Involve making additions and alterations in a given system, task, or process. Procurement Projects correct answer Involve purchasing the required resources or commodities Software Development Projects correct answer Involve creating new computer programs or software, or customizing the existing programs or software as per the needs and demands. Planning Projects correct answer Involve planning for an organization, society, club, institute, etc. Installation Projects correct answer Involve installing an equipment, machine, device, instrument, etc. Event Management Projects correct answer Involves managing an event like a fashion show, talent show, corporate party, press conference, pleasure trip, etc. Product/Service Projects correct answer Involve creating a tangible product or an intangible service. Maintenance Projects correct answer Involve maintenance of a factory, office, industrial unit, etc.
What is a Project Deliverable? correct answer The product or service to be produced through a project is called the project deliverable. Is a measurable output of a project. Initiating Project correct answer Is the beginning or the launching of a project. This process gives a formal confirmation to the necessity of undertaking a particular project. A project is started by weighing its pros and cons and assessing all its aspects. Planning correct answer The planning phase includes all the factors associated with a project, whether major or minor, internal or external. Defining the scope of the project and its objective. Planning the budget. Planning the time schedules for the project activities. Planning the procurement. Planning the project team requirements and recruitment. Planning the risks involved in the project. Executing correct answer Good plans needs to be well executed to make a project successful. A quality deliverable is possible only if all the processes are qualitatively executed. Controlling correct answer The controlling phase keeps tabs on different phases of the project and analyzes the qualitative and quantitative worth of all the activities that are carried out to successfully complete the project. It measures the project performance it compares all the actual performances with the expected performance, as laid down in the project plan. in case of any discrepancy, it takes corrective measures to put the project back on track, as per the plan. Closing correct answer There is an official announcement of the project closure. It involves important activities like conducting the project audit, holding the final meetings, filing and submitting all the project related documents and reports, presenting the project closure report and getting it endorsed by the steering committee or the management.`
What is the project Selection Process? correct answer A company has the option to undertake hordes of projects, but it does not take all of them. A company wisely picks the projects that best suit its interests, objective, capabilities, and resources. The process of rightly choosing the projects and aptly prioritizing them is called project selection process. How is a Projecf Selected? correct answer The company first examines the offer from different perspectives, weighs its pros and cons, and measures it up against other projects that the company might be having in the pipeline. Payback period (PP) correct answer The payback Period refers to the time required to recover the costs on investment. Is based on the principle that every capital expenditure is recovered within a certain period of time. For Projects that Generate Constant Cash Inflows correct answer Payback Period (PP) = Projects Costs/ Annual Cash Inflows For Projects that Generate Unequal Cash Inflows correct answer The PP for the projects that generate unequal cash inflows can be calculated by adding the periodic cash inflows, till the time when the whole investment costs have been recovered. Discounted Cash Flow (DCF) correct answer The Discounted cash Flow method takes into account the present and future value of cash inflows. Formula for calculating the Future Value of money correct answer (FV)=PV(1+i)^n How to calculate project profitability using the Discounted Cash Inflow method correct answer Present Value=FV/(1+i)^n Internal Rate of Return (IRR) correct answer This method takes into account the time value of money, that's why it is also referred to as the Time Adjusted Rate of Return or Discounted Rate of Return method. IRR on Equal Cash Inflows correct answer Present Value Factor= Initial Project Investment/ Annual Cash Inflow
Assigning the roles Selecting the Project Manager Finalizing the Reporting System How is a Project Initiated? correct answer The Initiation Process has to be craftily carved out to set the tone of the whole project. What's PID? correct answer The scope is defined through a document called Project Initiation Document (PID) or Project Charter. It is a vital document of the Project Initiation Process. It not only defines the scope of the project, but also spells out various other important details pertaining to the project. PID is not necessarily a single document report. It can comprise a set of documents explaining different aspects of the project. The main objective of this document is to clearly mark down the right path for the project. The important Areas that PID covers are: Project Background correct answer Elucidates the points that led to the existence of a particular project. Project Definition correct answer Gives complete information about the project by explaining the following: Project Scope Project Objective Project Approach Project Deliverable Specifications Project Exclusions Project Constraints Project Precinct Project Assumptions Quality Control correct answer Explains the tools and techniques that help control the project. Organizational Structure correct answer Depicts the organizational structure and assigns the roles and responsibilities vis-à-vis the project activities.
Project Control correct answer Defines the ways to control the project processes. Risk Control correct answer Explains the ways to manage the anticipated risks. Project Justification correct answer Justifies the needs and benefits of the project. Inputs to Initiation Process correct answer This information unravels the complex constituents of the project, and presents a clear picture of the internal and external factors, which can have a bearing on the project. Product Description correct answer Project Initiation requires information in the form of a product description, which clearly specifies the kind and nature of the deliverable to be produced by the project. This information also depicts the correlation between the product deliverable and the business requirements. What are the goals of the organization? correct answer This is the question that needs to be answered before undertaking any project. The answer to this question answers many other questions related to the Project Initiation Process. Project Selection Criteria correct answer Project Selection Criteria act as a vital input to the Project Initiation Process, as they elucidate various factors like the financial gains, market share, and product specifications. Historical Information correct answer Historical Information refers to the previous projects undertaken by the organization. It's a vital input to the Project Initiation Process, as it sheds light on the previous projects in the context of the effects of the various decisions regarding those projects PID correct answer As described earlier, PID is the Project Initiation Document, which formally recognizes the existence of a project. Besides, it portrays the vital aspects of the project like Project Background, Project Scope, and Project Objectives.
Expert Judgment correct answer A project is a huge task, which calls for strenuous efforts and wise decision making. To ensure that the decisions made with regard to the different processes and activities of the project are judicious, there arises a need for expert judgment. The experts calculate and evaluate the inputs to the Project Initiation process. The experts can be identified from within the organization or from any outside source like customers, consultants, and other professionals. What is Planning? correct answer Planning is all about "what to do", "When to do", and "How to do". It is an exhaustive process, which includes a plethora of procedures like defining, developing, preparing, predicting, arranging, and scheduling the activities. A project cannot move ahead till all its activities and processes have been properly planned. A project's planning process begins with the planning of its scope. What is Scope Planning? correct answer Scope of a project refers to the boundaries within which it has to confine itself and accomplish its objectives. Scope is the first thing planned in a project, and the process of planning the scope is referred to as Scope Planning. The main objective of Scope Planning is to determine the path as well as the destination of the project. It acts as a tool, which helps measure the output of the project. Therefore, Scope Planning is the crux of a project, so it needs to be astutely planned to ensure that the project culminates in success. What is Scope Statement? correct answer Scope Statement is a key constituent of Scope Planning. Scope Statement is a draft that defines the Project Scope. It gives a definite direction to the project and acts as a pivot on which all the further project processes revolve. Writing a Scope Statement calls for in- depth knowledge of the project deliverables. The process of gathering the requisite knowledge about the product is called the Product Analysis. One of the main sources of information the Product Analysis Process relies on is the Project Identification Document or Project Charter. Importance of Scope Statement correct answer Scope statement is an important part of the agreement between the customer and supplier. Scope statement contains essential information about the final product. Scope statement determines whether or not a project has been successfully completed. Scope statement forms the basis of a common understanding of the project deliverables amongst the project stakeholders. Scope statements is an important document for project related decisions.
Components of Scope Statements correct answer Description of the project product or service Explanation of the project requirements Identification of the project objectives Portrayal of the project strategy Making the project assumptions making the scope change management plan Defining the specifications of the deliverables Identifying the project constraints What is Scope Management Plan? correct answer The Scope Management Plan is a document which is prepared along with the scope statement. It states how changes to the scope can be made. Project Scope Statement Approval correct answer Once the Scope Statement has been finalized, it has to be signed by the stakeholders as a formal acknowledgement and approval of the scope of the project. What is Work Breakdown Structure? correct answer Work Breakdown Structure or WBS is the hierarchical decomposition of the project work into tasks, of the tasks into smaller activities, and of the deliverables into sub- deliverables. How to create a WBS? correct answer WBS has to be astutely designed and properly structured, so that it delineates all the project activities. At the same time, it has to be kept flexible to accommodate any prospective changes. WBS must identify all the project deliverables and project activities. The activities at the lowest level of the project are called the work packages. What are Resources? correct answer The term "Resources" here refers to the raw material, equipment, machines, time, money manpower, site, and other facilities or supplies required for the project. Consumable Resources correct answer As the name suggests, these resources get gobbled up or consumed at one or the other stage of the project.
Estimates the Working Capital Costs correct answer Calculates the Working Capital Costs. Working Capital refers to the excess of short term assets over short term liabilities. The working capital requirements include the costs incurred on raw material, inventories, salaries of the permanent staff, etc. Estimates the Operating Costs correct answer The Cost Estimating process estimates the Operating Costs. These costs allude to the secondary expenses of the project such as expenses incurred on utilities, repair, maintenance, sales, and marketing. Optimizes Resource Usage correct answer Cost Estimation process clearly determines the quantity and quality of the resources required for a project. What is Cost Estimation Document? correct answer is a written draft that delineates all the project costs. The main output of the Cost Estimation process is the actual estimate of all the costs to be incurred by the company to produce the project deliverable. The Cost Estimation Document has to be correctly and comprehensively prepared. Why Plan Time? correct answer All the projects are limited by time frames. This calls for prudent time planning and deft understanding of Time Estimation Techniques. What are Time Estimation Techniques? correct answer Time Estimation Techniques help determine the time to be assigned to different major and minor activities of a project. Besides, Time Estimation Techniques act as tools to gauge the progress of a project, right from the beginning till the end. Activity Definition Process correct answer The precise method of identifying and defining various project activities is called Activity Definition Process. It not only delineates all the project activities, but also presents explicit explanations for each activity, as well as the exact roles, targets, and duties of all the team members. The Activity Definition Process covers even the minutest parts of the project, which makes it a complete process. Activity Definition Process is an extension of the Work Breakdown Structure. What is Quality? correct answer Quality is an essential trait of a person, creature, product, service, or a process, which confirms its value or worth in a particular context. In project management, quality means conformance to requirements.
What is Quality Management? correct answer Quality Management is all about managing quality. It is an ongoing process, which enables a company to produce quality deliverables as per the set standards, specifications, and requirements. The Quality Deliverable correct answer The objective of every project is to produce a quality deliverable, and the accomplishment of this objective is the sole reason for which a particular project is on. Deliverable in the Form of Quality Service correct answer Producing a service as a deliverable means creating utilities, conveniences, or benefits that are intangible. Value of Execution correct answer It refers to the costs involved in producing a deliverable in the form of a quality service. Different plans are devised to carry out different project activities. Value of Execution delineates the measurable results with respect to the costs incurred. Value of Actual Service correct answer It refers to the recognitions, status, and usage of the actual service that a project has produced. Value of Utility & Efficacy correct answer Value of Utility and Efficacy refers to the success of the deliverable in terms of expectations associated with it. Value of Durability correct answer It refers to the period of time for which a service will be in vogue. A service is regarded as a quality service only if it stays put for long and excels in the competition. Value of Dependability correct answer It refers to the reliability and consistency of the service produced. Deliverable in the Form of Quality Product correct answer Producing a product as a deliverable means creating an object, a good, or any other physical entity. Value of Actual Product correct answer It refers to the recognition, status, and usage of the actual product that a project has produced. Value of Functionality correct answer It refers to the functions a product is expected to perform.
Arrow Diagramming Method (ADM) correct answer The Arrow Diagramming Method is the most commonly used method of depicting Arrow Diagrams, and very appropriately, this is the method we are going to deliberate on in this chapter. Precedence Diagramming Method (PDM) correct answer Project Activity Bar Charts correct answer The Project Activities can also be depicted with the help of the Activity Bar Chart also called Gantt Chart., which show the Activities on the Y-axis and the Time elapsed on the X axis. It also helps assess whether or not the project is going according to the plan. Determining the Critical Path correct answer The CPM helps recognize the activities that lie on the critical path those activities for which any setback or rushing will affect the overall time for the project. The amount of time by which a non-critical path activity can be delayed without delaying the project is referred to as Slack Time. Activity Duration Estimating Process correct answer The term "work periods" refer to the number of hours, days, weeks, or months anticipated to be consumed in completing a project. Expert Judgment correct answer People who are actually going to undertake an activity can come up with an accurate Activity Duration Estimate. They are experts in their domain, and know the kind and nature of activities involved therein. Analogous Estimating correct answer Analogous means similar, corresponding, or comparable. Thus, Analogous Estimation for an activity is done on the basis of a similar previous activity. Analogous Estimating is also referred to as Top-down Estimating, as it gives a top to bottom and an inside-out view of the different phases of an activity by providing a corresponding case study of a previous activity. Quantitatively Based Durations correct answer Quantitatively Based Durations connote estimating the duration via another tangible source. Reserve Time correct answer Reserve Time refers to cushioning a project by allotting it some extra time for an unforeseen situation. That is why, it is also called Contingency Time. At times, some external forces halt the progress of an activity.
Benefit/ Cost Analysis correct answer it evaluates the costs involved in meeting the quality standards and also examines the benefits of producing that quality. Benchmarking correct answer Benchmarking provides some set measures based on the previous activities. These measures help guide the current activity. Flowcharting correct answer Flowcharting gives an inside view of the steps or activities of a particular process. It also provides the inter-connection between the different segments or components of a project process. Cause -and -Effect Diagram correct answer It specifies the connection between the causes and effects of different problems of a process. Process Flowchart correct answer This is a general flowchart that depict the various steps of an activity or a process. It also reveals the inter- relationship of the various components of a process. Design of Experiments correct answer Design of Experiments is a tool, which is used to identify those variables within a project that can make a positive effect on it. Cost of Quality correct answer Cost of Quality is the aggregate of all the costs involved in producing a deliverable. These costs include every penny spent while ensuring the quality of a project. Prevention Costs correct answer Refers to the costs involved in keeping the project deliverable free from any defects. Appraisal Costs correct answer Refer to the costs that re incurred to analyze the credibility and quality of the deliverable. When a deliverable is ready, it needs to be ensured whether or not it meets the stipulated standards and fulfills the prescribed requirements. Failure Costs correct answer Refer to the costs incurred because of internal or external failure
Working with the people Chosen by the Management correct answer Project Manager needs to apprise himself of the skills and expertise of all his team members. Only then he will be able to define the roles and build a team that clicks. Building a Team Externally ( Recruiting People) correct answer New candidates are recruited when people who have the requisite skills and expertise to work on a particular project are not found internally. It involves a variety of activities like determining the number of vacancies, modes of recruitment, selection criteria, and defining the skills set required as well as the salary slabs. Different Modes of Recruiting correct answer Advertising the positions required in the newspapers, magazines, job portals. etc. Engaging recruitment consultants or agencies. Using database of the aspiring candidates previously interviewed by the company. Using employee referrals. Campus recruitment. Assessing Skills correct answer Once the team members have been identified, the process of analyzing their skills and expertise begins. Who is capable of what. Defining Roles correct answer Who will fit in where?, The Project Manager should look beyond the personal profiles of the team members. He should try to understand their attitudes. Imparting Training correct answer A trained team can work well without any halts and jams, however, it needs to be ensured that training will help the team members produce better results. Forming correct answer Forming refers to that phase of team building when the different team members get to know each other. Storming correct answer This is the phase when the team members get to know the hierarchy of the team. Norming correct answer This phase refers to the stage when everyone focuses on the project. Performing correct answer This is the phase when all the team members have got in the groove and work together diligently to complete the project.
How to manage a Team? correct answer It is easier to manage convoluted work, complex machines, and complicated technologies, but its a daunting task to manage people. Different individuals have different mindsets, varied attitudes, assorted ambitions, diverse skill-sets, distinct aptitudes, contrasting approach, and disparate work capacity. Qualities correct answer Only a good leader can be a good Manager. Managing a project in a broader sense is managing people. Building Team Spirit correct answer All for one and one for all. different ways to build team spirit. Team Meetings One to one meetings Pleasure Trips Informal get-togethers Promotional Celebrations Birthday Celebrations Project's Success Celebrations Surprise Adventures Family Interactions Ensuring Discipline correct answer Discipline is an important ingredient of team management. No individual is bigger than the organization. Therefore, a Project Manager must ensure that each member of his team adheres to the rules and regulations marked down by the organization and follows the instructions given by him from time to time. Conflict Management correct answer A team consists of different individuals, so theres bound to be some conflicts. Types of conflicts (simple conflicts correct answer Conflicts that arise out of simple reasons like the clash of opinions are called simple conflicts. In such conflicts, a Project manager should follow a middle path by adopting a "Take in. Give in" policy. Complex conflicts correct answer Conflicts that arise out of complex reasons like hostility or jealousy are called complex conflicts. Such a situation is a tricky one for any Project Manager, and he ahs to take
