IE471 and 571 Sample Midterm Exam Study Guide

(Winter 2010)

Section I: Selected Response Questions

This section contains multiple choice and true/false questions. On the multiple choice questions, CIRCLE
the letter of the choice that BEST answers the question or completes the statement. On the true/false
questions, CIRCLE the word “true” or the word “false”, depending on whether the statement is true or false.
(Students, please note that there are many more questions here than you will see on your exam).

1. 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

2. The importance of project management has increased due to

A. the movement of manufacturing operations out of the U.S.
B. time to market
C. the movement toward flatter and leaner organizations
D. both a and b are true
E. a, b, and c are all true

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

4. Which of the following characteristics is not typical of a project manager?

A. managing a temporary activity
B. possesses in-depth technical knowledge
C. managing a non-repetitive activity
D. manages independently of the formal organization
E. provides a direct link to the customer

5. Two dimensions within the project management process are

A. technical and sociocultural
B. cost and time
C. planned and unexpected
D. established and new
E. unique and reoccurring

6. 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 False
7. The assessment of the external and internal environments is called _______ analysis.
A. SWOT analysis
B. competitive
C. industry
D. market
E. Strategic

8. Which of the following is true for organizations that have a coherent link of projects to strategy?
A. There is more cooperation across the organization.
B. Performance is better on projects.
C. They have fewer projects.
D. both a and b are true
E. a, b, and c are all true

9. Which of the following is not one of the requirements for successful implementation of strategies
through projects?
A. allocation of resources
B. prioritizing of projects
C. motivation of project contributors
D. adequate planning and control systems
E. all of these are requirements

10. 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

11. A project screening matrix typically contains all of the following except:
A. the list of available projects
B. specific criteria
C. weights assigned to specific criteria
D. costs to complete each project
E. all of the above are typically contained

12. The problem in many organizations is not with formulating strategies but with implementing the
strategies.
True False
13. 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

14. Bill is working on a project involving the upgrading of a management information system. The
project is being managed by the information systems department with coordination with other
departments occurring through normal channels. He is working in a _________organization.
A. functional
B. balanced matrix
C. weak matrix
D. strong matrix
E. project
15. 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

16. 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. Project

17. In which of the following is the balance of authority strongly in favor of the functional managers?
A. weak
B. balanced matrix
C. strong matrix
D. strong
E. both c and d are correct

18. In a matrix form of project management, the project managers report directly to a Director of
projects, who supervises all projects.
True False
19. 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.

20. 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.

21. "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

22. 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

23. 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
24. The process of forecasting or approximating the time and cost of completing project deliverables is
called
A. Budgeting
B. Predicting
C. Estimating
D. Planning
E. Guesstimating

25. Which of the following methods is not considered a macro approach to estimating project time and
cost?
A. ratio
B. template
C. apportion
D. function point
E. learning curve

26. Jose is forecasting project time and cost for constructing a new building by multiplying the total
square footage by a given dollar amount. Which of the following methods is he using?
A. ratio
B. template
C. apportion
D. function point
E. learning curve

27. Typical kinds of costs found in a project include

A. direct costs
B. project overhead costs
C. general and administrative costs
D. only A and B are included
E. A, B, and C are all included

28. The ideal approach to estimating project time and costs is to use both the top-down and the bottom-
up approach.
True False

29. Information to develop a project network is collected from the

A. organization breakdown structure
B. work breakdown structure
C. budget
D. project proposal
E. responsibility matrix
30. An activity that has more than one dependency arrow flowing to it is termed a(n)
A. parallel activity
B. critical path
C. burst activity
D. merge activity
E. independent activity

31. The critical path in a project network is the

A. shortest path through the network
B. longest path through the network
C. network path with the most difficult activities
D. network path using the most resources
E. network path with the most merge activities

32. A/an _________ activity has more than one dependency arrow flowing from it.
A. parallel
B. critical path
C. burst
D. merge
E. independent

33. Activities which can take place at the same time are termed
A. parallel activity
B. critical path
C. burst activity
D. merge activity
E. independent activity

34. Which of the following is not one of the basic rules to follow when developing project networks?
A. An activity cannot begin until all preceding activities have been completed)
B. Each activity must have a unique identification number.
C. Conditional statements are allowed but looping statements are not allowed)
D. An activity identification number must be larger that that of any preceding activities.
E. Networks flow from left to right.

35. ________activities are to be completed immediately following a particular activity.

A. Merge
B. Burst
C. Predecessor
D. Successor
E. Critical
36. Which of the following correctly calculates the early finish for an activity?
A. LS + Dur
B. ES + Dur
C. LF +Dur
D. ES + Slack
E. LF + Slack

37. Which of the following will correctly calculate the total slack in an activity?
A. LS - ES
B. LF - EF
C. LS - LF
D. LF - ES
E. both A and B are correct

38. The two approaches used to develop project networks are AOA and AON.
True False

39. An activity can be a predecessor and a successor in the same project network.
True False

40. It is possible to have more than one critical path at the same time.
True False

41. Gantt charts are popular because they represent an easy-to-understand, clear picture on a time-scaled
horizon.
True False

42. An uncertain event or condition that, if it occurs, has a positive or negative effect on a project
objectives is termed.
A. random chance
B. a disaster
C. risk
D. hazard
E. bad luck

43. The cost impact of a risk event occurring as a project proceeds through its life cycle tends to
A. slowly rise
B. drop sharply and then level out
C. rise sharply and then level out
D. remain about the same
E. slowly drop
44. The attempt to recognize and manage potential and unforeseen trouble spots that may occur when a
project is implemented is known as
A. risk forecasting
B. risk management
C. contingency planning
D. scenario analysis
E. disaster protection

45. One common mistake made in identifying project risks is that

A. not all possibilities are considered
B. participants are over-optimistic
C. participants are over-pessimistic
D. efforts are focused on consequences rather than causal events
E. too much attention is given to past events

46. Fixed price contracts are an example of transferring risk from an owner to a contractor.
True False

47. Delaying noncritical activities to lower peak demand on resources is known as resource
A. shifting.
B. effectiveness.
C. manipulating.
D. leveling.
E. allocation.

48. If resources are not adequate to meet peak demands, the resulting reschedule is termed
A. resource-constrained scheduling.
B. time-constrained scheduling.
C. mandatory leveling.
D. project resource adjustment.
E. bottleneck adjustment.

49. When developing a new software package, the software must be designed, the code must be written,
and the code must be tested. This is an example of a ________ constraint.
A. physical
B. technical
C. resource
D. schedule
E. time

50. Susan is to conduct environmental testing but the chamber cannot hold all the equipment that she
wants to test. This is an example of a _________ constraint.
A. physical
B. technical
C. resource
D. scheduling
E. time
Section 2: Short answer (9 points—3 points each)
This section has nine questions which require a short answer. On the exam, you will be
told to CHOOSE ANY THREE of these questions to answer (3 points each). Write
your answer in the space provided. No credit will be given for answers beyond the first
three questions that are answered.

As a study guide, it is strongly recommended that you try to answer all of these questions.

1. Identify and briefly describe the four stages of the Project Life Cycle.

2. Identify and briefly discuss the three intended outcomes of integrating and linking
projects with the strategic plan.

3. Identify and briefly describe at least two advantages and two disadvantages of
organizing project teams as dedicated teams.

4. In terms of project management, what is a deliverable and give an example.

5. Identify and briefly describe the three elements that are traditionally used to measure
the ultimate success of a project.
6. Identify and briefly describe the two major categories of estimating project time and
costs.

7. In the network computation process what is a backward pass and what four things does
it determine?

8. Identify and briefly describe the four steps in risk management.

9. Identify and briefly describe the three types of project constraints.

Section 3: Constructing a Project Network (9 points)

You will be asked to complete a project network in a problem similar to that in chapter 6,
Exercise #11 on p. 175.