PM 2 Unit 1

Which of the following is a true statement about projects:

• They rely on traditional management structures.

• They create goods, not services.

• They are short-term undertakings.

• Their processes are more important than their results.

Answer explanation

They are short-term undertakings. Projects are short-term undertakings that produce unique goods or services. Though the project management process is important, projects’ deliverables (results) are their reason for existing. They do not rely on traditional management structures.

Every project creates a(n)

• deliverable.

• new product.

• company.

• advertising plan.

  Deliverable. Every project creates a deliverable, a quantifiable result. This might be a new product, but it could also be an improved product, a new business process, etc. Every project does not create a new company or an advertising plan

Answer explanation

Deliverable. Every project creates a deliverable, a quantifiable result. This might be a new product, but it could also be an improved product, a new business process, etc. Every project does not create a new company or an advertising plan

Projects are different from business operations because business operations

• are special ventures.

• are permanent.

• use untraditional management structures.

• have a definite beginning and end.

Answer explanation

Are permanent. Projects are different from business operations because business operations are permanent. They are not special ventures; rather, they are necessary day-to-day tasks that keep the business running. Business operations rely on more traditional management structures than projects do. They do not have a definite beginning and end as projects do.

Which of the following is an element of any project:

• Technology

• Outcome

• Natural resources

• Board of directors

Answer explanation

Outcome. The three elements of a project are its resources (things needed to complete the project), its schedule (timeline), and its outcome (deliverable). Although technology is an important tool used in project management, it is not an element of a project. Projects all require resources, but not necessarily natural resources. Finally, a board of directors is not an element of any project.

Which of the following is an example of a project that enhanced an existing product:

• The construction of the Empire State Building

• A medication that cures a life-threatening illness

• A software update for your computer

• The sequel to your favorite movie

Answer explanation

A software update for your computer. There are many different types of projects and ways to categorize projects. One type of project is a project that enhances existing projects. An example is a software update for your computer, which makes an existing product (your computer) better. The construction of the Empire State Building, a medication that cures a life-threatening illness, and the sequel to your favorite movie are all new projects rather than enhancements to existing projects.

When the hybrid vehicle was introduced, it was an example of a project that

• created new technology.

• enhanced an existing project.

• created a new product using existing technology.

• used entirely new technology.

Answer explanation

Used entirely new technology. There are many different types of projects and ways to categorize projects. One type is projects that use entirely new technology. Hybrid cars are an example of this because they required entirely new technology. Though the introduction of hybrid cars required new technology, it was not the project that created the technology itself. Hybrid cars are not an enhancement of an existing project. They also were not created using existing technology.

Which of the following is a true statement regarding project managers:

• Anyone with the right skills can be a project manager.

• Project managers are usually top-level executives.

•   Math and computing are the most important skills for project managers.

• Project managers are only distantly involved in the project.

Answer explanation

Anyone with the right skills can be a project manager. Anyone in a business might serve as project manager for a particular project, provided that s/he displays needed skills and qualities. However, in most industries, a project manager is responsible to top management but is not necessarily a member of management her/himself. Math and computing are not necessarily among the most important skills for project managers; rather, they require skills such as leadership, “people” (interpersonal) skills, communication skills, problem-solving skills, and creative thinking. Project managers are not distantly related to the project work; they are responsible for overseeing the project from beginning to end.

The project manager controls what the project will and will not do, known as the project’s

• budget

• plan.

•   schedule.

• scope.

Answer explanation

Scope. The project manager controls what the project will and will not do, known as the project’s scope. The project’s budget refers to how much it will cost to complete. A project’s plan will include more than just a definition of what it will and will not do. A project’s schedule is its timeline for completion.

Which of the following is a true statement regarding a project champion:

• S/He is closely involved in the work of the project.

• S/He is the same person as the project manager.

• S/He can mobilize the necessary resources to get the project done.

• S/He is usually a low-ranking employee in the business.

Answer explanation

S/He can mobilize the necessary resources to get the project done. The project champion is a person who can mobilize the necessary resources to get the project done. S/He is usually a high-ranking person within the organization who sponsors the project but is not necessarily closely involved in the work of the project. S/He is instrumental in choosing a project manager but does not personally fulfill that role.

When a hurricane interrupted a business’s new product development, the project team had a plan for getting things back on track. This is an example of how project management

• helps businesses evaluate feasibility.

• allows employees to adapt to risk.

• requires a product champion.

• needs strong quality controls.

Answer explanation

Allows employees to adapt to risk. Businesses may enjoy many benefits by implementing effective project management, including the ability to adapt and be flexible, especially regarding risk. A hurricane is a risk, and because of project management, the team had a plan in place to manage that risk. This is not an example of how project management helps businesses evaluate feasibility, requires a product champion, or needs strong quality controls.