ADVANCED QUESTIONS

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School

Conestoga College**We aren't endorsed by this school

Course

MGMT 8400

Subject

Management

Date

Dec 16, 2024

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Uploaded by MinisterCapybaraPerson1020

ADVANCED QUESTIONSW1 Introduction - Governance & Project Management Maturity ModelQuestion 1Companies sequentially work through the levels of maturity described in Kerzner's project management maturity model, and they don’t overlap. For example, Company A completes Level 1 and then moves to Level 2.TrueFalse(Correct Answer)Question 2Kerzner's project management maturity model lays out a progression for project management—starting with a common language around project management and ending with continuous improvement.True(Correct Answer)FalseQuestion 3Kerzner's project management maturity model has 3 levels.TrueFalse(Correct Answer)Question 4Having effective project management software and a project management office could be two key components to effective project governance.True (Correct Answer)FalseQuestion 5The key to project governance lies with project sponsorship and a goal of excellence in project management.True(Correct Answer)False

Question 6In Kerzner's project management maturity model, the order of the phases does not change.True(Correct Answer)FalseQuestion 7An open and accountable corporate culture along with an effective methodology do not play a role in effective project governance.TrueFalse(Correct Answer)Question 8The project management maturity model (PMMM) lays the groundwork for developing excellence in project management.True(Correct Answer)FalseQuestion 9Strategic planning for projects can reduce the time it takes for a company to become excellent at project management.True(Correct Answer)FalseQuestion 10Companies may have governance functions at 3 levels—project, portfolio, and corporate.True(Correct Answer)FalseQuestion 11The simple use of project management leads to excellence in project management.TrueFalse(Correct Answer)

Question 12Strategic planning for project management is performed at the middle-management level rather than by executive management.TrueFalse(Correct Answer)Question 13Governance can be defined as leadership guidance and oversight.True(Correct Answer)FalseQuestion 14Select all the options that apply to or define 'governance':Policies and procedures(Correct Answer)WBSTechnologyPolitics of powerGuidance(Correct Answer)Direction(Correct Answer)Control(Correct Answer)Oversight(Correct Answer)Leadership(Correct Answer)Question 15Project governance can be performed in several different ways or models, ranging from a one-person model to a model with several committees (e.g., steering committee).True(Correct Answer)FalseQuestion 16Executive management leads strategic planning for project management. Middle management supports it.True

False(Correct Answer)Question 17Indicate all of the items that management could use to oversee or control projects (i.e., governance):Project methodology(Correct Answer)Change control planProject Steering Committee(Correct Answer)Project Management Office (PMO)(Correct Answer)Programs(Correct Answer)Portfolios(Correct Answer)Software trackingW2 ProcurementQuestion 1The definition of procurement:Documenting project decisions about outsourcing and identifying potential sellersThe acquisition of goods or services(Correct Answer)The addition of procurement specialists to the project teamObtaining information from sellers and awarding a contractQuestion 2The following list contains items in the macro environment which affect procurement,except:The company’s procurement strategy (Correct Answer)Place in the economic cycle (e.g., recession)The existence of sellers in the marketInflation

Question 3Effective procurement management can increase company profitability by taking advantage of quantity discounts.True(Correct Answer)FalseQuestion 4Effective procurement management can increase company profitability by finding high-quality suppliers for the company.True(Correct Answer)FalseQuestion 5Which of the following support functions of a company would not be involvedin procurement?FinanceLegalProcurement or OutsourcingAll of these functions can play a role in project procurement(Correct Answer)MarketingQuestion 6When planning procurement for the project, we do not:Explain how the project will find and approach sellersNote the preferred type of contract to award to the sellerDocument purchasing/leasing decisionsSend RFPs or IFBs to potential sellers(Correct Answer)

Question 7Two procurement strategies can exist: one for the company and one for the project.True(Correct Answer)FalseQuestion 8With procurement, the equivalent to the WBS is the Statement of Work.True(Correct Answer)FalseQuestion 9Which statement best describes the Statement of Work?A brief high-level overview for sellers to get started biddingCreated at two levels of detail—one for preferred sellers and one for every other seller in the marketplaceDescription of resources required from the project teamCould be called the scope statement for the procurement(Correct Answer)Question 10Outsourcing options (a.k.a. "make or buy") for obtaining goods or services are considered part of planning the project procurements.True(Correct Answer)FalseQuestion 11Which of the following is not typically a factor in a make-or-buy decision?Procurement costsAvailability of resources

Sellers' project management expertise(Correct Answer)The expertise in the company versus the expertise with sellersQuestion 12The Solicitation Package created by the project team as part of planning procurement would not contain:The procurement strategy of the company and project (Correct Answer)List of qualified sellersPreferred payment plan for sellersHow change requests are managedBid documents to be usedQuestion 13Which item is not found in the Procurement Plan?Preferred type of contract(s) to usePerformance reporting that will be required from sellersQualified supplier list(Correct Answer)The use of corporate and project procurement processesItems to be procuredW3 Procurement 2AQuestion 1The objective when the project conducts procurement:Obtain responses from sellersNegotiate a contract and price that results in reasonable risk and provides the seller with performance incentive(Correct Answer)Use or add to the company's preferred seller list

Follow the company's procurement strategy except where it conflicts with the project's procurement strategyQuestion 2In the conducting procurements process, the project team completes all of the following except:Requests responses from sellersObtains proposals from sellersEvaluates seller’s proposals and awards a contractNegotiates the content of the solicitation package(Correct Answer)Question 3During the conducting phase of procurements, the project team or legal department negotiates a contract with the winning seller.True(Correct Answer)FalseQuestion 4Which is not a common method for inviting sellers to respond to a project’s procurement needs?Driving through the city broadcasting the procurement opportunity(Correct Answer)Advertising in magazines and trade publicationsUsing internet websites or communitiesNegotiating using a procurement vehicle such as an RFPQuestion 5In the negotiating approach to sellers, which is not a procurement vehicle that would be used:

Request for Quote (RFQ)Bidders Proposal Document (BPD)(Correct Answer)Request for Proposal (RFP)Invitation for Bid (IFB)Question 6Procurement can be a lengthy endeavor. Why?Simple procurements involving simple parts often can simply be purchased from a sellerMost sellers are busy and give new procurements lower priorityComplex or large procurements may require several documents to be completed along with meetings(Correct Answer)Project team has little or no supportQuestion 7What is a weighted scoring model?A method to determine the type of procurement vehicle to use to approach sellersA method to determine the roles played by project team members in project procurementA method to evaluate sellers using the selection criteria(Correct Answer)A document used to evaluate the seller’s performance during project executionQuestion 8Selection criteria used in the weighted scoring model are determined during:Planning(Correct Answer)Initiating

Bidders ConferencesExecutingQuestion 9Negotiating with sellers can sometimes include the type and length of contract.True(Correct Answer)FalseQuestion 10Why is it good practice to treat negotiation with sellers as a win-win situation?It may speed up negotiations(Correct Answer)We’ll remove the seller from our preferred list if they are troublesomeWe’ll show good faith in negotiations, but we can be certain the seller will do the sameWe’ll get as much out of the seller as possibleQuestion 11When we plan for negotiations, we take all of the following actions, except:Define our strategy and tacticsDevelop our objectivesUse hygiene factors to make the actual meetings stressful for the seller(Correct Answer)Perform a complete price/cost analysisQuestion 12When negotiating, we should understand the seller’s motivation.True(Correct Answer)

FalseQuestion 13Negotiations are always conducted by the project manager and project sponsor.TrueFalse(Correct Answer)Question 14Post-negotiation critiques should never be conducted with sellers. It gives them too much information and can weaken our position in future negotiations.TrueFalse(Correct Answer)W3 Procurement 2BQuestion 1Definitive contract means the project team is still awaiting more details from the seller.TrueFalse(Correct Answer)Question 2It's not uncommon for the seller's work to begin before the contract has beensigned.True(Correct Answer)False

Question 3If work begins prior to the contract being signed by both parties, a temporarylegal document is put in place. The name of that document:Letter of Intent(Correct Answer)Constructive AgreementTemporary Proposal AgreementBid AcceptanceQuestion 4Although the project team decides up front on the type of contract it prefers to award to the seller, sometimes the contract type may be changed during negotiations.True(Correct Answer)FalseQuestion 5Which item would not be a consideration when determining the type of contract to use?Cost and schedule riskThe seller's response time during the bidding process(Correct Answer)The amount of work the seller plans to outsourceUrgency of our requirementsTechnical riskQuestion 6Procurement contracts can be divided into two general types:Fixed Price and Time & MaterialsFirm Fixed Price and Cost-Plus-MaterialsFixed Price and Cost-Plus(Correct Answer)

Fixed Price and IncentiveQuestion 7Buyers often use incentive clauses to encourage seller behavior which is beneficial to the buyer.True(Correct Answer)FalseQuestion 8The disadvantage of pure fixed price contracts:Specifications don't have to be well understoodLittle incentive for seller to control costs or finish their work on scheduleGives the seller incentive to use higher grade materialsThe seller runs the risk of underestimating their costs(Correct Answer)Question 9Fixed price contracts result in the seller assuming the contract risk.True(Correct Answer)FalseW4 Procurement 3Question 1Contract closure occurs after administrative closure of the procurement.True(Correct Answer)False

Question 2In the following list of activities, which of the following is not part of controlling procurements?Managing the relationship with the sellerMonitoring payments to the sellerMonitoring the seller's performanceMaking changes to the seller's work (and project) as neededPerforming stakeholder analysis as it relates to the seller(Correct Answer)Question 3Controlling procurements also ensures that the seller's product is fit for use.True(Correct Answer)FalseQuestion 4Which statement is most accurate about administrative closure?Does not include debriefing the seller on their performanceDoes not include a lessons learned review with the project teamLeaves all necessary financial accounts of the company open for additional transactions with the sellerDocuments the seller's performance for future procurements(Correct Answer)Question 5The _________ __________ is assigned to ensure that the seller follows the terms and conditions of the contract.Project DesignateProject ManagerProcurement Administrator

Contract Administrator(Correct Answer)W5 Project MethodologiesQuestion 1A common methodology that is sequential and begins with well-defined requirements.Waterfall(Correct Answer)AgileExtremeCritical ChainQuestion 2Many companies evolve from a methodology to a project framework. Which statement best describes a project framework?Policies are extremely rigidGives the project manager flexibility and freedom to meet the customer's needs(Correct Answer)It is extremely flexibleProvides guidance for managing the team resources on a daily basisQuestion 3Which is a characteristic of a good methodology?Used only in project-driven areas of the companyA formal process to change the methodology that ensures changes are implemented only after being piloted(Correct Answer)Very little flexibilityStrives to focus on guidelines rather than strict procedures as the company matures

Question 4Waterfall would be considered a formal project management methodology.True(Correct Answer)FalseQuestion 5The waterfall methodology is ideal for projects with similar requirements thatare well-defined. These projects don't require many scope changes or significant product/service customization.True(Correct Answer)FalseQuestion 6Which is not a characteristic of a good methodology?Standard techniques to plan schedulesGuidance on the appropriate level of detailTemplates for documentsFocus on specific types of projects only(Correct Answer)Question 7Companies can develop their methodology based on their project management experience and processes.True(Correct Answer)FalseQuestion 8Companies can be unsuccessful using a methodology because they create the wrong methodology that doesn't fit well with the company or they misuse the methodology.True(Correct Answer)

FalseQuestion 9When a company decides to use a common theoretical methodology, it must stick to the theory. The methodology cannot be changed.TrueFalse(Correct Answer)Question 10The waterfall methodology tends to have low documentation needs and low cost.TrueFalse(Correct Answer)Question 11Which is not a reason for the failure of a project methodology?The methodology allows too much flexibility, resulting in executives rejecting the methodology. (Correct Answer)The methodology is too detailedThe methodology doesn't allow for value-added project scope changes(Incorrect Response)Question 12How does corporate culture affect the methodology that a company should have in place?If the company has a culture that fosters teamwork, communication, and cooperation, a highly flexible methodology may be the best choice(Correct Answer)A company's project management maturity doesn't affect the methodology

If the company has a culture that fosters teamwork, communication, and cooperation, a methodology focused on rigid policies and procedures may be the best choiceCorporate culture doesn't affect the methodologyQuestion 13Which statement is false?The project management maturity level affects the type of methodology it creates.Kerzner recommends that companies maintain multiple methodologies to fit their different types of projects.(Correct Answer)Methodologies are repetitive processes that can be used on every project.Project management excellence is correlated to the use of a methodology.Question 14Which is a benefit of having a corporate culture aligned to the project methodology?Project teams have better control over the project scope(Correct Answer)Decision-making is focused on the project sponsorCulture doesn't have any effect on the use of a methodologyProject risks can always be transferred to another projectQuestion 15Which of the following describes a downside to using the waterfall methodology?It's not well suited to innovation projects where the requirements aren't well known upfront.(Correct Answer)

It allows the project team to experiment with change control.The solution to develop deliverables is always clear.Customers are always heavily involved in the projectW7 Project SelectionQuestion 1The project selection process should focus on selecting projects that align with the organization's business strategy.True(Correct Answer)Question 2Project selection can be considered a phase in the project life cycle. It occurs between initiation and planning.True(Correct Answer)Question 3Not all qualitative methods used to evaluate project ideas are equal. Some are better than others at aligning projects selected to business strategy.True(Correct Answer)Question 4Using a weighted scoring model to decide which project ideas to move forward with is a good idea as bias can be minimized and the model can incorporate both qualitative and quantitative evaluations.True(Correct Answer)Question 5Even a project idea with a negative NPV is preferable to a project that's not aligned to the business strategy.True(Correct Answer)

Question 6The Four Stage Strategic Planning Process may be the best qualitative method as it incorporates the business strategy and all levels of the organization.True(Correct Answer)Question 7In the project priority method, project ideas are evaluated based on expectedtime to complete project or required completion date.True(Correct Answer)Question 8Which of the following is not a step in the project selection process?Collect and store project ideasSolicit external customers for project ideasDecide which project(s) to move forward withEvaluate project ideas(Correct Answer)Question 9Generally, organizations prefer projects with a longer payback period.TrueFalse(Correct Answer)Question 10Projects can be divided into three categories: problems, opportunities, and directives.True(Correct Answer)

Question 11Net present value (NPV) is the preferred quantitative evaluation method because it recognizes the time value of money.True(Correct Answer)Question 12The weighted scoring model and the organization project selection process should only be used on high-cost and high-priority projects.TrueFalse(Correct Answer)Question 13Methods for evaluating project ideas can be divided into two categories - financial and quantitative.TrueFalse(Correct Answer: qualitative and quantitative)Question 14In theory, IRR is the rate of return that the company earns by investing in theproject.True(Correct Answer)Question 15Various scoring models are available to use to select projects. All have the same strengths and weaknesses.TrueFalse(Correct Answer)W6 PMO Review (With All Options and Correct Answers)

Question 1Indicate each item that describes an effective PMO. (Select all that apply)Calculate rate of performance and actual costs for individual projects. ❌Train and mentor project staff. ✅Provide resources to assist with planning. ✅Operate and support project management software. ✅Promote ‘best practices’ in projects. ✅Highlight trends and issues for management's attention. ✅Question 2Indicate each item that describes an effective PMO. (Select all that apply)Implement effective trend monitoring and predictive systems (e.g. earned value). ✅Track cross-project dependencies. ✅Identify poorly performing operations managers. ❌Provide input into risk assessment and monitoring. ✅Reduce projects' schedules and budgets. ❌Question 3The implementation of a PMO in non-project-driven organizations can be more challenging than implementing a PMO in a project-driven organization.True ✅False ❌Question 4PMOs are always a formal part of an organization.True ❌False ✅

Question 5Which statement is false?A committee-type PMO may have representation from various functional areas of the organization.Resources assigned to a PMO may be part-time or full-time.In the past, PMOs were often called centers for project management expertise.PMOs only are implemented after the company establishes a center of excellence. ✅Question 6PMOs tend to signal the importance of project management to the organization.True ✅False ❌Question 7When established, the emphasis of the PMO is profitability for the organization.True ❌False ✅oExplanation: The emphasis is on professionalism in project management.Question 8Many organizations implement PMOs with very few responsibilities. Over time, the PMO will add more responsibilities.True ✅False ❌

W9 Portfolios & Programs MatchingCorrect Answer Key:1 = Portfolio2 = ProgramStatements with Correct Matches1.Project-specific, short-termCorrect Answer:2 (Program)2.CoordinationCorrect Answer:2 (Program)3.Usually managed by more senior manager with financial expertiseCorrect Answer:1 (Portfolio)4.Collection of related projectsCorrect Answer:2 (Program)5.Goal – take advantage of economies of scale and scopeCorrect Answer:2 (Program)6.____ Manager worries about these things:~ Do we have the right resources?~ Are we investing in the right areas?~ Do we have the right resources to be competitive?Correct Answer:1 (Portfolio)7.Collection of projects & programsCorrect Answer:1 (Portfolio)8.Typically managed by someone with project management experienceCorrect Answer:2 (Program)9.Focus on tactical goals (specific, short-term)Correct Answer:2 (Program)10.StrategicCorrect Answer:1 (Portfolio)

11.Example:Projects divided into 3 categories:~ Single-family homes~ Apartment buildings~ Office buildingsCorrect Answer:2 (Program)12.Long-term, higher levelCorrect Answer:1 (Portfolio)13.Example:3 categories of IT projects:~ Venture: Projects to help transform company~ Growth: Projects to help increase revenues~ Core: Projects to help run the companyCorrect Answer:1 (Portfolio)14.Goal – alignment of projects to company strategyCorrect Answer:1 (Portfolio)