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IT PROJECT MANAGEMENT

Chapter 7: The Project Schedule and Budget


True/False 1. The project budget is determined by the project schedule, the cost of the resources assigned to each of the tasks, and by any other direct or indirect costs and reserves. True 2. The PMBOK area called project cost management includes cost estimating, cost budgeting, and cost control. True 3. Gantt charts are useful for planning but should not be used for tracking and monitoring the progress of a project. False 4. Project network diagrams provide valuable information about the logical sequence and dependencies among the various activities and tasks so that a completion date or deadline can be determined. True 5. Predecessor activities are activities that can be worked on at the same time as another activity. False 6. Predecessor activities are activities that must be completed before another activity can be started. True 7. A parallel activity is a task that can be worked on at the same time as another activity. True 8. Parallel activities can shorten the project schedule, but can have an impact on project resources if a resource is assigned to two tasks at the same time. True 9. The critical path is the shortest path in the project network and also is the longest time in which the project can be completed. False 10. The critical path is the longest path in the project network and also is the shortest time in which the project can be completed.

IT PROJECT MANAGEMENT True 11. Identifying the critical path is important because any change in the duration of the activities or tasks on the critical path will affect the projects schedule. True 12. The critical path has zero slack (or float) True 13. Identifying the critical path is important because a project can only have one critical path and it never changes. False 14. PERT was developed in the 1950s to create a visual representation of scheduled activities, their logical sequence, and interrelationships using a statistical probability distribution. True 15. Installing a server before loading the operating system is an example of a finish-to-start relationship. True 16. Start-to-Start and Finish-to-Finish relationships allow activities to be worked on in parallel. True 17. A start-to-finish activity is the most common relationship between two activities. False 18. The direct costs of using a resource is the only type of cost that should be considered when developing the project budget. False 19. Sunk costs include such things as rent, utilities, insurance, and other administrative costs. False 20. A reserve can provide a cushion when unexpected situations arise. True 21. An over allocated resource would arise when Mary is assigned to work on two tasks scheduled at the same time. True 2

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22. Once the project schedule and budget are accepted by the client or sponsor, the project plan becomes the baseline plan that will be used as a benchmark to track the projects actual progress. True

Multiple Choice 1. The term most closely associated with activity bars across a horizontal time axis is: a) b) c) d) e) Project Network Diagrams Gantt Charts PERT Activity on the Node Critical Path Analysis

Answer: b 2. The term most closely associated with the identification of predecessors, successors, and parallel activities is: a) b) c) d) e) Project Network Diagrams Gantt Charts PERT Activity on the Node Critical Path Analysis

Answer: d 3. The technique used to find the sequence of tasks with zero slack (or float) is most closely associated with: a) b) c) d) e) Project Network Diagrams Gantt Charts PERT Activity on the Node Critical Path Analysis

Answer: e 4. The technique used to help manage the Polaris submarine project and which bases activity estimates on probabilistic estimates of three scenarios is most closely associated with:

IT PROJECT MANAGEMENT a) b) c) d) e) Project Network Diagrams Gantt Charts PERT Activity on the Node Critical Path Analysis

Answer: c

IT PROJECT MANAGEMENT 5. An activity being analyzed under PERT was judged to most likely have a duration of 40 days. When considering the time it would take to complete the activity if every relevant factor went well, it was estimated to take 20 days and even under the worst case imaginable, the task would be take 50 days. The estimates PERT duration of that activity is: a) b) c) d) e) 36.67 days 38.33 days 37.50 days 28.33 days 32.67 days

Answer: b 6. Under the Precedence Diagramming Method, the situation which occurs when a relationship between two tasks that can or must start at the same time is called: a) b) c) d) e) Finish-To-Start (FS) Start-To-Start (SS) Finish-To-Finish (FF) Start-To-Finish (SF) none of the above

Answer: b 7. Under the Precedence Diagramming Method, the most common relationship between two activities which implies a logical sequence is called: a) b) c) d) e) Finish-To-Start (FS) Start-To-Start (SS) Finish-To-Finish (FF) Start-To-Finish (SF) none of the above

Answer: a 8. Under the Precedence Diagramming Method, the situation which occurs when two activities can start at different times, have different durations, but are planned to be competed at the same time is called: a) Finish-To-Start (FS) b) Start-To-Start (SS) c) Finish-To-Finish (FF) 5

IT PROJECT MANAGEMENT d) Start-To-Finish (SF) e) none of the above Answer: c 9. Under the Precedence Diagramming Method, the situation which occurs when task A cannot end until task B starts is called: a) b) c) d) e) Finish-To-Start (FS) Start-To-Start (SS) Finish-To-Finish (FF) Start-To-Finish (SF) none of the above

Answer: d 10. The decision to build an application system based on what was left after a previous attempt ended in failure primarily because of the large investment the company made in the failed project was most likely made by a manager who did not fully understand: a) b) c) d) e) Direct Costs Indirect Costs Sunk Costs Learning Curve Costs Reserves Costs

Answer: c

IT PROJECT MANAGEMENT Short Answer (From End of Chapter Review Questions) 1. Describe the PMBOK area of project cost management. According to PMBOK, project cost management includes: Cost estimatingBased upon the activities, their time estimates and resource requirements, an estimate can be developed. Cost budgetingOnce the time and cost of each activity is estimated, an overall cost estimate for the entire project can be made. Once approved, this estimate becomes the project budget. Cost controlEnsuring that proper processes and procedures are in place to control changes to the project budget. 2. Discuss why no project ever failed because of someones inability to draw a nice looking project network diagram. If one were able to create a beautiful project network diagram, but it contained grossly inaccurate estimates, the project might likely fail despite the lovely diagram. Conversely, accurate estimates of task durations, their logical sequences and interrelationships crudely sketched on the back of an envelope would have a much greater chance of contributing to a successful project. It is the veracity and completeness of the information that adds value to the process as much (or more so) than its formatting and display. 3. What are some advantages project network diagrams have over traditional Gantt charts? Project network diagrams provide valuable information about the logical sequence and dependencies among the various activities or tasks. In addition, project network diagrams provide information concerning when specific tasks must start and finish, and what activities may be delayed without affecting the deadline target date. In addition, the project manager can make decisions regarding scheduling and resource assignments to shorten the time required for those critical activities that will impact the project deadline. 4. Define predecessor, successor, and parallel activities. Give a real world example of each. Predecessor activities are those activities that must be completed before another activity can be startede.g., a computers operating system must be installed before loading an application package. On the other hand, successor activities must follow a particular activity in some type of sequence. For example, a program must be tested and then documented after it is compiled. A parallel activity is an activity or task that can be worked on at the same time as another activity.

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5.

How can parallel activities help shorten the project schedule? Are there any trade-offs? Parallel activities may be thought of as an opportunity to shorten the project schedule since separate tasks can be done at the same time instead of sequentially. They also can be a trade-off since doing more than one thing at the same time can have a critical impact on project resources.

6.

What is meant by slack (or float)? Slack, which is sometimes called float, is the amount of time an activity can be delayed. That is, take longer than expected before it delays the project.

7.

What is the difference between crashing and fast tracking a projects schedule? Crashing a projects schedule is the process of adding additional resources to some activity on the critical path (or diverting resources from some activity with some slack) in order to shorten the project. Fast-tracking on the other hand is involved in finding activities that were originally planned to be sequential and making them in parallel that is doing them simultaneously.

8.

What is the difference between AON and PERT? AON is a project network diagramming tool that graphically represents all of the projects activities and their logical sequences and dependencies. It includes a single estimate of the most likely activity durations. PERT is also a project network diagramming tool which shows, in a manner similar to AON, all of the projects activities and their logical sequences and interrelationships. The main difference is that in the PERT tool, the activities duration is not the most likely estimate, but a weighted average of estimates including the most likely and an optimistic and pessimistic estimate as well.

9.

Define the following and give a real world example of each (other than the ones described in this book): Finish-to-Start; Start-to-Start; Finish-to-Finish; Start-to-Finish. Finish-To-Start (FS)A finish-to-start relationship is the most common relationship between activities and implies a logical sequence. Here, activity or task B cannot begin until task A is completed. Start-To-Start (SS)A start-to-start relationship between tasks or activities occurs when two tasks can or must start at the same time. Although the tasks start at the same time, they do not have to finish togetheri.e., the tasks can have different durations. A start-to-start relationship would be one type of parallel activity that 8

IT PROJECT MANAGEMENT can shorten a project schedule. Finish-To-Finish (FF)Another type of parallel activity is the finish-to-finish relationship. Here, two activities can start at different times, have different durations, but are planned to be competed at the same time. Once both of the FF activities are completed, the next activity or set of activities can be started, or if no more activities follow, the project is complete. Start-To-Finish (SF)The start-to-finish relationship is probably the least common and can be easily confused with the finish-to-start relationship. A SF relationship, as illustrated in Figure 7.5, is exactly the opposite of a FS relationship. In addition, a SF relationship means that task A cannot end until task B starts.

10.

What is the difference between lead and lag? Give real world examples (other than the ones used in this book) of how a project manager may use lead and lag in a project schedule. Lead time is the amount of time by which the start or finish of two or more activities may overlap each other. If it took three times as long to install a window in a house as to paint it, then allowing sufficient lead time for the installer to put in two thirds of the windows before the painter started painting them would allow them to finish about the same time. Lag time is the time delay between the start or finish of one activity and the start or finish of another. If a house being renovated required fumigation before remodeling and the fumigated house needed to be aired out for two days before it was safe to be worked in, then a two-day lag time (or negative lead) must be built into the schedule.

11.

Describe the steps necessary for estimating the cost of a particular activity or task that has an estimated duration. 1. Defining what resources will be needed to perform the work. 2. Determining the quantity of resources that are needed. 3. Defining the cost of using each resource. 4. Calculating the cost of the task or activity. 5. Ensuring that the resources are leveled. That is, resources have not been over allocated.

12.

What does prorating the cost of a resource mean? Prorating the cost of a resource is allocating portions of the total cost to more than one activity.

13.

Why should the project manager ensure that the project resources are leveled? The project manager should ensure that the project resources are leveled to prevent

IT PROJECT MANAGEMENT resources from being over allocated that is requiring the same resource to be utilized on more than one task at the same time. 14. Why should assumptions used in estimating be documented? Assumptions used in estimating should be documented to give the cost estimates greater credibility, to help keep things organized, and to support multiple iterations of the schedule or budget as may be needed. 15. What is a baseline plan? The baseline plan is the project schedule and project budget that has been approved by the project client or upper management. 16. When does the project manager or team have the authority to begin executing the project plan? Once the project schedule and project budget has been approved by the project client or upper management it becomes the baseline plan and then the project manager and team has the authority to begin executing the plan.

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IT PROJECT MANAGEMENT Essay Questions 1. Briefly describe the four cost areas that are included in the PMBOK area called project cost management? 2 How does the work breakdown structure (WBS) link the projects scope to the schedule and budget? 3. What are the benefits and disadvantages of using Gantt charts as a project management tool? 4. In what ways are project network diagrams similar to Gantt charts and what additional strengths do they have? 5. Construct an Activity on the Node (AON) network diagram with at least 5 tasks that illustrate predecessors, successors and parallel activities. Label the nodes appropriately and (assuming your tasks show estimated durations in days), state the estimated time for completing your project. 6. Assume the following activities for a project along with their estimated durations and predecessors. Describe how critical path analysis would be applied to this project, and calculate the critical path. Define the concepts: slack/float, expedite/crash, and fast tracking and explain what their implications are for this project? Activity A B C D E F G Estimated Duration in Days 2 4 3 1 1 3 2 Predecessor None A A C,B C,D D,E F

7. Three team members are given the task of estimating activity durations. Mr. Optimist estimates the activity to take 2 days to complete. Ms. Pessimist estimates the activity to take 5 days. Mrs. Realist claims that the most likely estimate is 4 days. What should their PERT analysis assign as an expected duration for the activity and what are the benefits and implications of deploying this tool? 8. Describe the Precedence Diagramming Method along with the four fundamental relationships that they are based on. 11

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9. Describe the five steps that comprise the process of estimating the cost of a particular activity. Illustrate the steps with a hypothetical example. 10. Discuss the nature and relevance of direct, indirect, sunk, and learning curve costs as well as the notion of contingency reserves. http://en.wikipedia.org/wiki/A_Guide_to_the_Project_Management_Body_of_Knowledg e

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Estimations and Metrics Project elements at inception Requirements (known/unknown) Problem definition Problem scope Project elements at delivery Code Documentation Installed COTS From Inception To Delivery: Effort -> Time -> Cost There is a relationship between project elements at inception and project elements at delivery We estimate because actuals are not available until delivery concludes

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Inception vs. Delivery Estimation Inception Estimation Advantages Application/user oriented Results can be related to other projects normalized Disadvantages Difficult to compute Open to interpretation Delivery Estimation Advantages Represents actual effort Tangible Disadvantages Not normalized Not standardized Heterogeneous delivery artifacts Inception method: Function points Delivery method: LOC (Lines of code)

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Function Point Estimation

Normalized software project metric


Application domain rather than technical domain Application functions and data rather than code

International Function Point Users Group www.ifpug.org References: Capers Jones: Applied Software Measurement (1997) Estimating Software Costs (1998)

Function Point Types


Transaction Function Types External Inputs External Outputs External Inquiries Data Function Types Internal Logical Files External Interface Files

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User Domain

External input

External Output

External Inquiry

External Interface File Internal Logical File


External Input

External Output

External Inquiry

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Internal Logical File (ILF)


Each major logical group of user data or application control information is one ILF. Include each logical file, or within a database, each logical group of data from the viewpoint of the user that is generated, used or maintained by the application. Count each logical group of data as viewed by the user and as defined by requirements analysis or data design rather than the actual physical files. Do not include files not accessible by the user through external output or inquiry and that are not independently maintained. Description Count 1. Logical entity or group of entities from the user viewpoint. (1 ILF) 2. Logical internal file generated or maintained by the application. (1 ILF) 3. User maintained table(s) or file(s) (1 ILF) 4. File used by data or control by sequential (batch) application and maintained by the application (1 ILF) 5. Attributive entity maintained only through main entity (0 ILF) 6. Associative entity join or connection with only key attribute (0 ILF) 7. Intermediate or sort file (temporary file) (0 ILF) 8. File created only because of technology used (e.g. index file) (0 ILF) 9. A master file only read by the application (0 ILF and 1 EIF)

External Interface File (EIF)

Count each major logical group of user data or control information used by the application. This information must be maintained, however, by another application. Include each logical file or logical group of data from the viewpoint of the user. Count each major logical group of user data or control information that is extracted by the application from another application as an external interface file. The extract will not result in an update to any internal logical files. If an update occurs, count an EI not an EIF. 1. File or records extracted from another application (used for reference only) 1 EIF 2. Data base read from other application 1 EIF 3. Internal logical file from another application used as a transaction (0 EIF, 1 EI) 4. System HELP, security file, error file read/referenced by the application from another application where the files are actually maintained (2 EIFs)

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External Input (EI)

Count each unique user data or user control input type that enters the external boundary of the application being measured, and adds, changes, deletes or otherwise alters data (e.g. assign, transfer, add, update) in an external logical file. Also count control information that enters the application boundary and assures compliance with business function specified by the user. An external input should be considered unique if the external logical design requires processing logic different from other external inputs. 1. Data screen with add, change and delete (3 EI) 2. Multiple screens accumulated and processed as one transaction (1 EI) 3. Two data screens with different order of data, but with the same processing logic (1 EI) 4. Two data screens with the same format, but different processing logic (2 EI) 5. Data screen with multiple unique functions (1 EI per function) 6. Automatic data or transactions from other applications (1 EI per transaction type) 7. User application control input (1 EI) 8. Input forms (OCR) with one transaction (1 EI) 9. An update function following a query (1 EI and 1 EQ) 10. Individual selections on a menu screen (0 EI) 11. Update of user maintained table or file (1 EI) 12. PF Key duplicate of a screen already counted as input (0 EI) 13. Light pen duplicate of a screen already counted as input (0 EI) 14. External input types introduced only because of the technology used (0 EI) 15. Selection of a field in a list box (0 EI)

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External Output (EO)

Count each unique user data or control data that leaves the external boundary of the application being measured. An external output should be considered unique if it has different data, or if the external design requires processing logic different from other external outputs. External outputs often consist of reports, outout files sent to other applications, or messages to the user. 1. Data screen output (1 EO) 2. Batch report (1 EO) 3,. Automatic data or transactions to other applications (1 EO) 4. Error messages returned as a result of an input transaction (0 EO) 5. Backup files (0 EO) 6. Output to the screen and to printer (2 EO) 7. Output files created for technical reasons (0 EO) 8. Bar chart as well as pie chart graphical output (2 EO) 9. Inquiry with calculated information (1 EO, 0 EQ)

External Inquiry (EQ)

Count each unique input/output combination, where an input causes and generates an output, as an external inquiry. An external inquiry should be considered unique if it has different data elements from other external inquiry types in its output part, or if the external design requires a processing logic different from other external inquiries. On-line input and on-line output with no update of data in files (1 EQ) Inquiry followed by an update input (1 EQ/1 EI) Help screen input and output (per level) (1 EQ) On-line input with immediate printed output of existing data and no data update (1 EQ) Pick list or Drop Down with dynamic data (1 EQ) Pick list or Drop Down with static data (0 EQ) Batch report request resulting in a report with no derived data (1 EQ)

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(Source: Jones: Estimating Software Costs)

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(Source: Jones: Estimating Software Costs)

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(Source: Jones: Estimating Software Costs)

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Function Point Counting

Elements External Input


External Output External Inquiry

Low ___ x 3 +
___ x 4 + ___ x 3 +

Count Weights Average ___ x 4 +


___ x 5 + ___ x 4 +

High ___ x 6 =
___ x 7 = ___ x 6 =

Total _____
_____ _____

ILF
EIF

___ x 7 +
___ x 5 +

___ x 10 +
___ x 7 +

___ x 15 =
___ x 10 =

_____
_____

Total Unadjusted Function Points Input Complexity Matrix (EI, EQ) FTRs 0-1 2-3 4+ 1-4 DETs Low Low Average 5-15 DETs Low Average High 16+DETs Average High High

_____

Output Complexity Matrix (EO, EQ) FTRs 0-1 2-3 4+ 1-4 DETs Low Low Average 5-15 DETs Low Average High 16+DETs Average High High

File Complexity Matrix (ILF, EIF) RETs 1 2-4 5+ 1-19 DETs Low Low Average 20-50 DETs Low Average High 51+ DETs Average High High

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FTR = File Types (User Data Groups) Referenced DET = Data Element Type (Attribute) RET = Record Element Type (User View)

General System Characteristics 14 characteristics rated based upon their degree of influence on the application
Rate each factor on a scale of 0 to 5 0 = No influence 1 = Incidental 2 = Moderate 3 = Average 4 = Significant 5 = Essential 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. Does with system require reliable backup and recovery? Are data communications required? Are there distributed processing functions? Is performance critical? Will the system run in an existing, heavily utilized operational environment. Does the system require on-line data entry? Does the on-line data entry require the input transaction to be built over multiple screens or operations? Are the master files updated on-line? Are the inputs, outputs,files or inquiries complex? Is the internal processing complex? Is the code designed to be reusable? Are conversion and installation included in the design? Is the system designed for multiple installations in different organizations Is the application designed to facilitate change and ease of use by the user?

Total function point formula:

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IT PROJECT MANAGEMENT [0.65 + (.01 x total of General System Characteristics)] x [Unadjusted Function Point Count] = Total function points

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Function Point Calculation Steps

17. Identify and count ILF, EIF, EI , EO and EQ 18. For each ILF and EIF, identify the number of RETs and the number of DETs

19. For each EI, EO and EQ, identify the number of FTRs and DETs 20. Using the complexity matrices, count the number of low, average and high EI, EO, EQ, ILF and EIF items. 21. Compute the total unadjusted function points 22. Determine the values of the fourteen general system characteristics 23. Sum the total characteristics 24. Determine the total function points with the Total Function Point Formula

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(Capers Jones) Size Estimates (Backfire) 1 Function Point = 320 basic assembly language statements 213 macro assembler statements 128 C statements 107 COBOL statements 107 FORTRAN statements 80 PL/I statements 71 Ada 83 statements 64 C++ statements 54 Ada 95 32 Visual BASIC 16 PowerBuilder 13 SQL 22 Smalltalk statements Function points raised to the 1.15 power predicts the approximagte page counts for paper documents associated with a software project Creeping user requirements will grow at an average rate of 2 percent per month from the design through coding phases Function points raised to the 1.2 power predicts the approximate number of test cases created. Function points raised to the 1.25 power predict the approximate defect potential for new software projects. Function points raised to the 0.4 power predict the approximate development schedule in calendar months Function points divided by 150 predict the approximate number of personnel required for the application Function points divided by 750 predict the approximate number of maintenance personnel required to keep the application updated. Multiply software development schedules by number of personnel to predict the approximate number of staff months of effort.

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Approximate application sizes (in Function Points) Order Entry 1,250 General Ledger 1,500 Tax Preparation 2,000 Telephone billing 11,000 Airline Reservation 25,000 Windows 95 operating system 85,000 Telephone switching system 12,000 Productivity Ranges (Function points per staff-month) f) Inexperienced staff, unstructured methods, ordinary tools, low level languages 2.50 g) Inexperienced staff, unstructured methods, CASE tools, low-level languages 3.50 h) Inexperienced staff, structured methods, ordinary tools, low-level languages 4.00 i) Experienced staff, unstructured methods, ordinary methods, low-level languages 4.50 j) Inexperienced staff, unstructured methods, ordinary tools, high-level languages 5.00 k) Inexperienced staff, structured methods, CASE tools, low-level languages 6.00 l) Inexperienced staff, unstructured methods, CASE tools, high-level languages 7.00 m) Experienced staff, unstructured methods, CASE tools, low-level languages 8.00 n) Inexperienced staff, structured methods, ordinary tools, high-level languages 8.50 o) Experienced staff, structured methods, ordinary tools, low-level languages 9.00 p) Experienced staff, unstructured methods, ordinary tools, high-level languages 10.00 q) Experienced staff, structured methods, CASE tools, low-level languages 12.00 r) Inexperienced staff, structured methods, CASE tools, high-level languages 14.00 s) Experienced staff, unstructured methods, CASE tools, high-level languages 18.00

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IT PROJECT MANAGEMENT t) Experienced staff, structured methods, ordinary tools, high-level languages 25.00 u) Experienced staff, structured methods, CASE tools, high-level languages 40.00

(Source: Jones: Estimating Software Costs)

Extreme Programming is: RAD Water fall etc. http://practicalagility.blogspot.com/2008/11/waterfall-vs-rad-vs-rup-vs-agilescrum.html http://en.wikipedia.org/wiki/Extreme_Programming http://en.wikipedia.org/wiki/Stage-gate_model stage-gate are phases that require? 29

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Project Team

1. High level of integration, improved communication, increased project focus, higher potential for conflict and poorer response time are advantages and disadvantages of: a) The Functional Organization b) The Matrix Organization c) The Project-Based Organization d) The Informal Organization e) The Formal Organization

2. Increased flexibility, breadth and depth of knowledge and experience, less duplication, determining authority and responsibility, poor response time and poor integration are advantages and disadvantages of: a) The Functional Organization b) The Matrix Organization c) The Project-Based Organization d) The Informal Organization e) The Formal Organization 3. Clear authority and responsibility, improved communication, high level of integration, project isolation, duplication of effort and projectitis are advantages and disadvantages of: a) The Functional Organization b) The Matrix Organization c) The Project-Based Organization 30

IT PROJECT MANAGEMENT d) The Informal Organization e) The Formal Organization 4. Unity of command violations are most often associated with: a) The Functional Organization b) The Matrix Organization c) The Project-Based Organization d) The Informal Organization e) The Formal Organization 5. The more traditional organizational form best describes: a) The Functional Organization b) The Matrix Organization c) The Project-Based Organization d) The Informal Organization e) The Formal Organization 6. The structure that reveals most clearly how individuals in an organization relate is the: a) The Functional Organization b) The Matrix Organization c) The Project-Based Organization d) The Informal Organization e) The Formal Organization 7. The most complex organizational structure is the:

a) The Functional Organization b) The Matrix Organization c) The Project-Based Organization d) The Informal Organization e) The Formal Organization

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IT PROJECT MANAGEMENT 8. Which of the following attributes is least important for project managers?: a) Ability to communicate with people. b) Ability to deal with people. c) Ability to create and sustain relationships. d) Ability to learn new technical skills. e) Ability to organize. 9. Radical teams are most likely to: a) accept background information at face value. b) approach projects in a linear fashion. c) provide run-of-the-mill solutions. d) get to the root of the matter. e) focus on the schedule and budget. 10. The phases of a learning cycle include all of the following except: a) Act b) Assess risk c) Reflect and learn d) Plan e) Understand and frame problem 11. The attributes commonly used in stakeholder evaluations include: a) speed b) depth c) breadth d) all of the above e) none of the above

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IT PROJECT MANAGEMENT Overview of Measurable Organizational Value (MOV)

Measurable Organizational Value or MOV is a term coined by Jack Marchewka as an alternative tool to the more popular Return on Investment or ROI concept which has become a buzzword within the industry over the last ten years and has existed for many more. Marchewka defines measurable organizational value as being the projects overall goal and measure of success. Marchewka further breaks down the term MOV and says that it must implicitly include the following: be measurable, provide value to the organization, be agreed upon and be verifiable. Lets look at each of these. Measurability is obvious yet extremely difficult. Many benefits of IT projects are soft and inherently unmeasurable. For example, a project that makes employees more happy cannot be measured as it is never possible to determine how much happiness is the result of any one project and how much other organizational efficiencies can be attributed to employee happiness and morale. And yet we almost all agree that happy employees work better, are more loyal, cost less and interact better with each other. The idea behind measurability is that no project decisions should be made without a consideration towards how they will affect the projects MOV. If a new feature is being considered, for example, then that feature should be compared against the MOV. If the feature will not increase the MOV then it should not be included. A relatively straightforward concept, but it basically states that only measurable value should be considered. This is not always intuitive. Project Management by MOV should provide value to the organization. This is the underpinning of the MOV concept and is analogous to the concept of ROI. ROI, however, is a measurement of the difference between expenditure and the expect value to the organization. MOV does not seem to take into account the cost of its own provisioning and only looks and the measurable business value after project completion while ROI takes into account the cost of providing the MOV as well as having the potential to consider the non-measurable organizational value which may be the driving force or a project. A project MOV must be agreed upon. Marchewka states that all project stakeholders should agree upon the MOV of a project before the project starts. This requirement includes making business stakeholders as well as technology stakeholders, such as analysts and developers, agree to the MOV before a project begins as a later measurement of project success. This is a difficult task as it is in one group of stakeholders interest to make the MOV high while it is in the interest of the technology stakeholders to make it low. This is especially difficult as it benefits the business side to trick or take advantage of the lack of business acumen from the technology side and requires the technologist to allow themselves to be judges of something that they neither understand nor ultimately control. Verifiability of the MOV is key. Since the projects MOV is measurable by definition it must then be verifiable. After the project has been completed the MOV is to be verified to determine if the project was successful or if it was not. However, Marchewka does not seem to address the issues of ongoing organizational value. A typical IT project will deliver negative value up front and will increase in value over time and then, eventually, decrease in value until it is replaced. True MOV would not be verifiable until the end of its lifespan. For example, since code from IBMs System/360 project from 1964 is still widely in use one would assume that IBM has not yet been able to determine the final MOV for that project. If their initial estimates had been extremely accurate and had taken into account a lifespan that might even top fifty years then the MOV would not yet be able to be verified as having quite reached its full value. Therefore a useful MOV is one that takes into account an acceptable lifespan of measurement but this introduces many more factors.

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What is IT Project Management and why do we need it? IT Project Management has emerged as its own field, supported by a body of knowledge and research across many disciplines with recognized professional certification. Although IT is becoming more reliable, faster and less expensive, the costs, complexities, and risks of IT projects continue to increase. Widely cited reports and studies reflect the majority of IT projects are either cancelled or completed over budget and/or over schedule and did not meet the original specifications. Failure can be attributed to many factors, most of them easily manageable. Organizations must recognize information technology as an investment to be managed and not just an expense to be controlled. New methods of IT project management embrace the socio-technical approach and view the implementation of new IT systems as planned organizational change. What are the components of IT Project Management? IT Project Management is based on a project life cycle that is a collection of logical stages or phases that maps the life of a project from its beginning to its end in order to define, build, and deliver the product of a project that is, the information system. The Guide to the Project Management Body of Knowledge (PMBOK) defines nine knowledge areas for understanding project management:
joinstyle="miter"eqn="if lineDrawn pixelLineWidth 0"o:detectmouseclick="t"Project

Integration Management Project Scope Management Project Time Management Project Cost Management Project Quality Management Project Human Resource Management Project Communication Management Project Risk Management Project Procurement Management

These components are all critical to the success of any IT project and represent best practices in project management.
size="3"What

goes into IT Project Management?

The start of an IT project begins with conceptualization and initialization phase. This phase defines the project goal and measurable organizational value (MOV). The MOV establishes some real measurement of the success or failure of a project and is based on an organizational goal or strategy. Stakeholder analysis and buy-in is 34

IT PROJECT MANAGEMENT an essential function of this phase as well as the identification of the senior organizational sponsor. Another important deliverable is the business case that defines the project team, measurable organizational value (MOV), alternatives, total cost of ownership, total benefits of ownership, and the benefit-cost analysis of alternatives and recommended alternative.
size="3"The

next phase of the IT project focuses on the development of the project charter and project baseline plan. The project charter is a contract between the organizational senior sponsor and the project manager that outlines what is going to be done, how it will be done, when it will be done, and how much it will cost. The answers to these questions are clearly defined in the Project Charter or the baseline project plan and budget. The next phase is the execution of the project plan. This phase of the project puts the plan into action. As work on the project progresses, scope, schedule, budget, and people, must be actively managed to ensure that the project achieves its goal. The communication of the projects progress and performance to the stakeholders is a critical component of the execution phase. The final phases of the project involve the formal acceptance and evaluation of the project. The evaluation of the project recognizes the importance of process improvement and the capture of organizational knowledge for future projects.

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Business case deliverable documents project goals Section 2. Project Overview

2.1 Project summary


This section summarizes the entire project charter and highlights the significant points of interest to the reader. It typically covers project goals and objectives, major milestones, key deliverables, key risks, and estimated total cost.

2.2 Project goals, objectives, and business outcomes


This section describes the project goals and links each of them with related, measurable project objectives. Measurement criteria for each objective must also be included because they will be used to confirm that an objective has been achieved. In addition, business outcomes to be derived from the project goals and objectives are to be presented as outlined in the business case. Project goals are high-level statements about what the project is trying to accomplish. They are broad, general intentions and are typically intangible and abstract. Business outcomes are results expected at the end of the project. Outcomes can often be expressed in just a few words that describe a general aim. This information may be presented using the outcome map, which is a visual model that shows how a project and all of its activities contribute to the realization of the outcomes. Refer to the Outcome Management Guide and Tools on the Treasury Board of Canada Secretariat website at http://www.tbs-sct.gc.ca/emf-cag/outcome-resultat/outcome-resultat-eng.asp. Project objectives, in contrast, are concrete statements describing a particular desired outcome of the project. They are tightly bound to goals. Sometimes objectives represent steps toward achieving the goals. Measurement criteria are attributes of objectives and business outcomes that you can track over a period of time. They are used to confirm that an objective has been met.

No.

Goals

Objectives New online application form by end of fiscal year 200809

Business Outcomes Client satisfaction Measurement criteria: Uptake of online capability by clients over a specified period of time against others means

1.

Greater flexibility in responding to stakeholder requests

Measurement criteria: Online application form is in production by end of fiscal year 2009.

2.3 Project scope


2.3.1 Scope definition
This section provides a high-level description of the features and functions that characterize the product, service, or result that the project is meant to deliver. It can include a reference to the business case. Include references like this in "Section 4: Project References" in the project charter.

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IT PROJECT MANAGEMENT
This section on scope definition is to give the reader a clear sense of what is being created by the project. Scope definition should also include additional information about the nature of the project, such as its physical location and legal context, the people and processes affected, and so on.

2.3.2 Boundaries
This section outlines the major activities required to successfully complete the project and describes each activity in a way that specifies what is and what is not included in the activity. While the "Scope definition" section describes the main characteristics of the product(s) or service(s) to be produced by the project, the "Boundaries" section gives a broader view. This section identifies activities that are "out of scope"; including these activities will greatly reduce ambiguity. It is especially important for projects that are multi-phased or part of a bigger picture (i.e. program or portfolio) to define what is being delivered in the undertaking covered by the charter. The boundaries of small-scale projects can be defined in terms of activities while the boundaries of larger projects may be defined in terms of work streams or subordinate projects.

In Scope 1. Design a new business model for Program "X" 2. Develop a change management strategy 3. Develop an online catalogue of services

Out of Scope 1. Building interfaces with corporate applications 2. Communication with external clients 3. Translation services

The table above is presented as an example. In many cases, further explanations may be required for a comprehensive presentation of the boundaries. The author may prefer to use the table as a summary and expand the description of each element in a narrative form.

2.4 Milestones
This section identifies the significant milestones or events in the project such as phases, stages, decision gates, or the approval of a deliverable. It presents a high-level project schedule.

Description Date Translation of the requirements document into Phase 1: Documenting technical specifications for the building of a new yyyy-mm-dd Business Requirements water facility for a community Request for proposal completed, winning bidder Phase 2: Contract award selected, and contract awarded by Acquisition yyyy-mm-dd Branch Phase 3: Maintenance Assessment of the alternative system delivery yyyy-mm-dd Delivery model

Project Milestone

2.5 Deliverables
This section defines the key deliverables that the project is required to produce in order to achieve the stated objectives. It also includes internal project deliverables that are required in the project management process for review and approval (e.g. project plan, transition plan, communication plan, and lessons learned). The deliverables identified in this section could be used to develop the top levels of your work breakdown structure, which "subdivides the major project deliverables and project work into smaller, more manageable components."[3] The criteria that will be used to assess the quality and completion of each deliverable should also be included.

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Deliverables

Project Deliverable Description: Acceptance criteria: Due date:

Description A common form and guide to annually report financial and production data with income tax return Single window; one application form yyyy-mm-dd

2.6 Project cost estimate and sources of funding


2.6.1 Project cost estimate
This section summarizes cost estimates based on the project resources (human, material, and financial) that are needed to produce the deliverables and meet the agreed-upon objectives. The cost estimates from the business case can be used as the basis for this summary. Itemize and break down the costs by project stage or phase and show multi-year projects by fiscal year. The estimate identifies other costs driven by the project in order to support decision making. Categories such as salaries and operations and maintenance (O&M) should include the A-base funding in addition to the project-specific funding. The intent is to document the full cost of the project. Ongoing costs are those that are permanently required for operations as a result of the project (e.g. additional support, licenses, and hardware maintenance). While not technically considered pure project costs, ongoing costs provide valuable information for decision making. One-time costs can include nonrecurring purchases needed for project administration and preparation for gating processes. For more information on the costing process, please refer to the Guide to Costing at http://www.tbssct.gc.ca/pubs_pol/dcgpubs/TBM_133/guide_e.asp. Project cost estimate

Project Phase Deliverable or Cost Category (Phase 1/ Deliverable) Salary O&M Professional services Capital Other (e.g. revenue) Subtotals (Phase 2/ Deliverable) Salary O&M Professional services Capital

Estimated Cost FY(1)

Estimated Cost FY(2)

Estimated Cost FY(3)

Estimated Cost FY(4)

38

IT PROJECT MANAGEMENT Other (e.g. revenue) Subtotals TOTAL 2.6.2 Sources of funding
This section outlines the various sources of funding that will be used to support the project. It should be clear to the project sponsor and the project manager where the funds come from and the level of resources committed to this project.

2.7 Dependencies
Many projects depend on external factors, whether within or outside the organization, such as the following: A predecessor or successor relationship exists with another project (e.g. an MOU or partnership); A related project expects a deliverable from your project; Your project expects a deliverable from a related project; or Your project delivers a product, service, or result that will be or needs to be released with another new product, service, or result.

If any situations like this exist, it is important to identify these relationships early. If you expect to have several interactions with the project managers of related projects, include corresponding information in the "Roles and responsibilities" section under "Project managers for related projects." Also, all dependencies should be listed and analyzed in the "Risks" section to ensure monitoring and allow response to a risk as required. If this project is part of a program, the program charter may contain this information. The related project information should be included here or may be referred to in the program charter. This reference should be noted in "Section 4: Project References." For each related project, add an entry to the table below. In the dependency description, specify the organization or stakeholder that should be kept informed of the project's progress. If there are no related projects, this should be mentioned in the form of a generic statement.

Dependency Description Critical Date Contact

2.8 Project risks, assumptions, and constraints


2.8.1 Risks
This section outlines the risks identified at the start of the project. It includes a quick assessment of the significance of each risk (probability and effect) and how to address them. It is important to note that this initial risk assessment does not replace the full risk assessment conducted during the planning phase and documented within the project plan. More information and tools are included in the Project Plan Template at http://www.tbs-sct.gc.ca/emf-cag/index-eng.asp and the Integrated Risk Management Implementation Guide at http://www.tbs-sct.gc.ca/pubs_pol/dcgpubs/RiskManagement/siglist_e.asp. Project risk assessment

No. 1.

Risk Description Business owners may not be

Effect Probability (H/M/ Planned Mitigation (H/M/L) L) M H Resources have been secured 39

IT PROJECT MANAGEMENT with the manager of related divisions. available during validation phase; this may affect the schedule. A supply arrangement is in place to provide testers on a casual basis. Statement of work is ready. Wikis will be used as an alternative solution to publish essential training material.

2.

Training manuals may not be ready by planned training M date; this may affect the schedule.

2.8.2 Assumptions
This section specifies all factors that are, for planning purposes, considered to be true, real, or certain but without including proof. During the planning process, these assumptions will be validated. If any assumptions are inaccurate, inconsistent, or incomplete, they will create project risks and may adversely affect project scope, timeline, and cost. The following table lists the items that cannot be proven or demonstrated at the time of publication but are documented to stabilize the project approach or planning.

No. The following is assumed: 1. Release of funds will be timely to pay for contractors. 2. Current service levels to stakeholders will be maintained throughout the project. Privacy Impact Assessments (PIA) will be completed in time as an input to the 3. architectural system design. 2.8.3 Constraints
This section identifies the specific constraints or restrictions that limit or place conditions on the project, especially those associated with the project scope such as a hard deadline, a predetermined budget, a set milestone, contract provisions, or privacy or security considerations. The constraints can come from external factors (social, environmental, political, economic, and technological) or internal factors (resources, expertise, business requirements, legal requirements, facilities, and so on). In order to identify constraints, it is necessary to analyze the project environment. If there are several constraints, they should be classified by category. The following table lists examples of the fixed or pre-set factors that the project must respect:

No. 1. 2. 3.

Category Deadline (time) Legal Resources

Constraints The online registration service must be available for the 200809 campaign starting on October 23, 2008. The online registration service must meet the requirements of the Canada Water Act. End-user will not be available for testing during February and March 2008.

40

IT PROJECT MANAGEMENT http://en.wikipedia.org/wiki/Capability_Maturity_Model Technology change management is at what level level-1 level-2 level-3 level-4 Addition of quality management s at what level level-1 level-2 level-3 level-4

The Risk Management Plan

1. The IT Project Risk Management Processes include all of the following except: The Project Management Body of Knowledge (PMBPK) a) Risk Planning b) Risk Identification c) Risk Assessment d) Qualitative Impact Analysis e) Risk Evaluation

2. Identifying what you know, what you think you know, and things you need to find out would be activities most closely associated with: a) Learning Cycles b) Brainstorming c) Nominal Group Technique d) Delphi Technique e) Cause-and-Effect Diagrams 3. Gaining consensus from a group of experts would be most closely associated with: a) Learning Cycles 41

IT PROJECT MANAGEMENT b) Brainstorming c) Nominal Group Technique d) Delphi Technique e) Cause-and-Effect Diagrams 4. Initial generation of ideas without evaluation would be most closely associated with: a) Learning Cycles b) Brainstorming c) Nominal Group Technique d) Delphi Technique e) Cause-and-Effect Diagrams 5. A structured technique for identifying risks which requires participants to rank and prioritize ideas in round-robin fashion is most closely associated with: a) Learning Cycles b) Brainstorming c) Nominal Group Technique d) Delphi Technique e) Cause-and-Effect Diagrams 6. In which step of the risk planning process does the text say one might decide to transfer project risk to someone else (i.e.,use insurance)? a) risk planning b) risk identification c) risk assessment d) risk strategies e) risk monitoring and control 7. Receiving a much larger than usual gas utility bill because of an early spring cold spell is an example of what type of risk? a) known risk 42

IT PROJECT MANAGEMENT b) known-unknown risk c) unknown-unknown risk d) known-known e) none of the above 8. Which of the following does not represent a quadrant in Tusler's Risk Classification Scheme? Tuslers Risk Classification Scheme a) Kittens b) Puppies c) Tigers d) Alligators e) Lions 9. Tusler would classify risks that have a high probability of occuring but a low impact on the project as: a) Kittens b) Puppies c) Tigers d) Alligators e) Lions 10. Which of the following distributions has mean which is equal to (a + 4b +c)/6 where a, b, and c are denote optimistic, most likely, and pessimistic estimates respectively?: a) Discrete Distribution b) Normal Distribution c) Pert Distribution d) Triangular Distribution e) Binomial Distribution

43

IT PROJECT MANAGEMENT 11. Which of the following distributions has mean which is equal to (a +b +c) / 3 where a, b, and c are denote optimistic, most likely, and pessimistic estimates respectively?: a) Discrete Distribution b) Normal Distribution c) Pert Distribution d) Triangular Distribution e) Binomial Distribution 12. In a normal distribution we would expect to find _______ of all values with in + or - 1 standard deviation. a) 13% b) 34% c) 68% d) 95% e) 99% http://www.pm-db.com/project-management/risk-management-plan

which scope management statement express reality than myth? http://en.wikipedia.org/wiki/Balanced_scorecard if a company loses Rs 5 for every Rs 100 in revenue for a certain product what is the profit margin for the product : 5% 5 Rs -5% -5Rs http://www.studydroid.com/index.php?page=viewPack&packId=4561 Which of the following is not a key output of project cost management? A. a cost estimate B. a cost management plan C. updates to the cost management plan D. a cost baseline b. a cost management plan

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IT PROJECT MANAGEMENT

An Overview of IT Project Management

1. The software crisis as reported by the CHAOS study focused on the fact that: a) computer processing power has increased significantly more than our ability to develop software applications to exploit that power. b) although the 1970s and 1980s were marked by large numbers of impaired projects, the 1990s saw a reversal of this trend. c) development costs have risen so much that the number of new IT projects undertaken has fallen sharply. d) just over one half of IT projects that are undertaken are completed and most of them were over budget and over schedule. e) since the telecommunications collapse, the opportunities for software developers have been dramatically reduced. 2. According to the CHAOS study, a challenged project is defined as one that:

a) fails to find a sponsor to champion its cause in the organization. b) is cancelled before completion. c) is completed but is late, over budget, and not fully featured. d) is started, but later cancelled because of a lack of available resources. e) fails as a result of unrealistic expectations lack of appropriate technical skills. 3. The number one contributing factor to project success as reported by the CHAOS study is: a) innovative, cutting edge technology. b) clear vision & objectives. c) competent staff. d) user involvement. e) proper planning. 4. All of following are factors for impaired projects reported by the CHAOS study except:

a) incomplete requirements. b) lack of user involvement.

45

IT PROJECT MANAGEMENT
c) lack of resources. d) changing requirement specifications. e) lack of subject matter experts (SME). 5. The benefits (described in the text) of using a project management approach to developing information systems include all of the following except: a) providing a common set of tools and controls which provides a common language to compare projects throughout the organization. b) the ability to better estimate and control costs and schedules which leads to a more effective conservation of company resources. c) improved communication and status reports allows the developers to manage expectations of stakeholders. d) competitive advantage for internal developers whose work might have to be outsourced if the quality and cost of their work can be bettered by outside competition. e) the coupling of project success to the selection of team members and the skill sets and resources that they bring to the project. 6. The following statements about knowledge management (KM) are true except: a) KM is a well defined body of knowledge with an established theoretical base. b) KM is a systematic process for acquiring, creating, synthesizing, sharing, and using information. c) Many organizations have KM initiatives underway and spending on these systems is expected to increase. d) Many organizations believe KM is just a fad or a buzzword. e) KM is one of the three approaches the text points to for improving the likelihood of IT project success. 7. Which of the following is considered to be a major attribute of a project?

a) Deliverables b) Lessons learned c) Stage gate d) Time frame e) Baseline plan 8. The triple constraint relationship that the text discusses refers to: a) owners, stakeholders and sponsors. b) time, money and people. c) scope schedule, and budgets. d) subject matter experts (SME), technical experts (TE) and project managers (PM). e) internal risks, external risks and assumptions.

46

IT PROJECT MANAGEMENT
9. The roles and their related skill sets commonly needed for IT projects according to the text include all of the following except: a) End Users b) Project Managers c) Project Sponsors d) Subject Matter Experts e) Technical Experts 10. A tangible and verifiable product of work is called a(n): a) stage gate. b) intermediate product. c) baseline product. d) deliverable. e) asset. 11. Which of the following company variables can influence the selection of IT projects? a) Culture b) Environment c) Politics d) Strategy e) All of the above 12. The following are all true about stage gates except: a) They are synonymous with phase exits. b) They are phase-end reviews of deliverables. c) They allow organizations to take immediate action to correct errors. d) They are synonymous with kill points. e) They are phases where resources are added or withdrawn. 13. For most projects, the effort in terms of cost and staffing is: a) high at the start and then levels off at a reduced level. b) low at the start and then rises steadily until the end. c) relatively stable through out the project. d) low at the start, then increases, then decreases at the end. e) high at the start, then decreases, then increases at the end. 14. The correct sequence of stages in the generic project life cycle is:

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IT PROJECT MANAGEMENT
a) Planning, analysis, design, implementation, maintenance and support of the project. b) Definition, planning, execution, closing, and evaluation of the project. c) Ask of the project: what, why, how, who, how long, how much. d) Planning, analysis, design, build, and implement the project. e) Needs analysis, information gathering, construction of alternatives, choice and execution of best alternative. 15. The waterfall method is most closely associated with: a) prototyping. b) spiral development. c) extreme programming. d) RAD development. e) structured development. 16. The waterfall method contains the following elements in their correct order: C a) Planning, analysis, design, implementation, maintenance, support. b) Definition, planning, execution, closing, evaluation of the project. c) Planning, analysis, design, build and implement. d) Needs analysis, information gathering, construction of alternatives, choice, execution of best alternative. e) Planning, design, build, implementation, maintenance. 17. Extreme Programming is: a) A risk-oriented approach where a project is broken up into a number of mini-projects, each addressing one or more major risks. b) A RAD development system that results in a series of versions called releases. c) A structured development system for mission critical systems. d) A version of Prototyping often used when time frames are very short. e) An X-Games event involving hacking code while juggling chainsaws. 18. Which of the following is not a characteristic of prototyping? a) It is iterative. b) It is usually deployed when developing high volume transaction processing systems. c) It is usually deployed when requirements of the new system are difficult to define or not fully understood. d) It may result in throwaway systems or fully usable systems. e) It is one of the RAD approaches. 19. The following are PMBOK knowledge areas except:

48

IT PROJECT MANAGEMENT
a) Project Integration Management. b) Project Scope Management. c) Project Cost Management. d) Project Risk Management. e) Project Research Management. 20. All of the following are true about PMBOK except: a) PMBOK stands for Project Management Body of Knowledge. b) PMBOK was first published in 1987 and updated in 2000. c) PMBOK is a product of PMI, an NYSE listed company. d) PMBOK defines nine knowledge areas. e) PMBOK describes generally accepted principles.

http://www.pm-db.com/Project-Management/overview-it-project-management

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Chapter 1: The Nature of Information Technology Projects


True/False 1. According to the CHAOS study, most IT projects are completed on time but over budget. 2. According to the CHAOS study, an impaired project is one that is cancelled before completion. 3. A lack of user input or involvement is one of the leading causes of impaired or challenged projects. 4. The Socio-Technical Approach has been adopted by many organizations because historically, more attention has been placed on the societal effects of IT projects than the technical aspects. 5. Using project management principles as part of a methodology for systems development places a greater emphasis on team selection for project success. 6. According to Harold Kerzner, successful companies dont terminate projects early if the resources to complete them are available. 7. Only the most successful projects are likely to lead to best practices. 8. The triple constraint relationship implies that owners, stakeholders and sponsors must communicate effectively to help ensure project success. 9. Having subject matter experts on a development team is more productive than having technical people learn the subject matter that comprises the project. 10. Assumptions are what we use to estimate scope, schedule and budget and to assess the risks of the project. 11. The project life cycle phases should have at least one deliverable at the end of each phase.

50

IT PROJECT MANAGEMENT 12. Stage gates are phases that require the addition of resources before progressing to the next logical stage or phase. 13. A baseline plan defines the agreed upon scope, schedule, and budget of a project. 14. The most common product life cycle in IT is the Systems Development Life Cycle. 15. A system that is developed using the project life cycle methodologies is called a legacy system. 16. The waterfall method is one of the structured approaches to systems development. 17. The waterfall method of systems development is named for the trickle down effect of phased in resources. 18. Prototyping is both iterative in nature and a rapid application development approach.

True
19. The project life cycle is really a subset of the systems development life cycle. 20. The Guide to the Project Management Body of Knowledge provides a basis for identifying and describing the generally accepted principles of project management. Multiple Choice 1. The software crisis as reported by the CHAOS study focused on the fact that: a) computer processing power has increased significantly more than our ability to develop software applications to exploit that power. b) although the 1970s and 1980s were marked by large numbers of impaired projects, the 1990s saw a reversal of this trend. c) development costs have risen so much that the number of new IT projects undertaken has fallen sharply. d) just over one half of IT projects that are undertaken are completed and most of them were over budget and over schedule. e) since the telecommunications collapse, the opportunities for software developers have been dramatically reduced. 51

IT PROJECT MANAGEMENT

2. According to the CHAOS study, a challenged project is defined as one that: a) fails to find a sponsor to champion its cause in the organization. b) is cancelled before completion. c) is completed but is late, over budget, and not fully featured. d) is started, but later cancelled because of a lack of available resources. e) fails as a result of unrealistic expectations lack of appropriate technical skills. 3. The number one contributing factor to project success as reported by the CHAOS study is: a) b) c) d) e) innovative, cutting edge technology. clear vision & objectives. competent staff. user involvement. proper planning.

4. All of following are factors for impaired projects reported by the CHAOS study except: a) b) c) d) e) incomplete requirements. lack of user involvement. lack of resources. changing requirement specifications. lack of subject matter experts (SME).

5. The benefits (described in the text) of using a project management approach to developing information systems include all of the following except: a) providing a common set of tools and controls which provides a common language to compare projects throughout the organization. b) the ability to better estimate and control costs and schedules which leads to a more effective conservation of company resources. c) improved communication and status reports allows the developers to manage expectations of stakeholders. d) competitive advantage for internal developers whose work might have to be outsourced if the quality and cost of their work can be bettered by outside competition. 52

IT PROJECT MANAGEMENT e) the coupling of project success to the selection of team members and the skill sets and resources that they bring to the project. 6. The following statements about knowledge management (KM) are true except: a) KM is a well defined body of knowledge with an established theoretical base. b) KM is a systematic process for acquiring, creating, synthesizing, sharing, and using information. c) Many organizations have KM initiatives underway and spending on these systems is expected to increase. d) Many organizations believe KM is just a fad or a buzzword. e) KM is one of the three approaches the text points to for improving the likelihood of IT project success. 7. Which of the following is considered to be a major attribute of a project? a) b) c) d) e) 8. Deliverables Lessons learned Stage gate Time frame Baseline plan

The triple constraint relationship that the text discusses refers to: a) b) c) d) owners, stakeholders and sponsors. time, money and people. scope schedule, and budgets. subject matter experts (SME), technical experts (TE) and project managers (PM). e) internal risks, external risks and assumptions.

9. The roles and their related skill sets commonly needed for IT projects according to the text include all of the following except: a) b) c) d) e) 10. End Users Project Managers Project Sponsors Subject Matter Experts Technical Experts

A tangible and verifiable product of work is called a(n):

53

IT PROJECT MANAGEMENT a) b) c) d) e) stage gate. intermediate product. baseline product. deliverable. asset.

11. Which of the following company variables can influence the selection of IT projects? a) b) c) d) e) 12. Culture Environment Politics Strategy All of the above

The following are all true about stage gates except: a) They are synonymous with phase exits. b) They are phase-end reviews of deliverables. c) They allow organizations to take immediate action to correct errors. d) They are synonymous with kill points. e) They are phases where resources are added or withdrawn.

13.

For most projects, the effort in terms of cost and staffing is: a) b) c) d) e) high at the start and then levels off at a reduced level. low at the start and then rises steadily until the end. relatively stable through out the project. low at the start, then increases, then decreases at the end. high at the start, then decreases, then increases at the end.

14. is:

The correct sequence of stages in the generic project life cycle a) Planning, analysis, design, implementation, maintenance and support of the project. b) Definition, planning, execution, closing, and evaluation of the project. c) Ask of the project: what, why, how, who, how long, how much. d) Planning, analysis, design, build, and implement the project. e) Needs analysis, information gathering, construction of alternatives, choice and execution of best alternative.

15.

The waterfall method is most closely associated with:

54

IT PROJECT MANAGEMENT a) b) c) d) e) prototyping. spiral development. extreme programming. RAD development. structured development.

16. The waterfall method contains the following elements in their correct order: a) Planning, analysis, design, implementation, maintenance, support. b) Definition, planning, execution, closing, evaluation of the project. c) Planning, analysis, design, build and implement. d) Needs analysis, information gathering, construction of alternatives, choice, execution of best alternative. e) Planning, design, build, implementation, maintenance. 17. Extreme Programming is: a) A risk-oriented approach where a project is broken up into a number of mini-projects, each addressing one or more major risks. b) A RAD development system that results in a series of versions called releases. c) A structured development system for mission critical systems. d) A version of Prototyping often used when time frames are very short. e) An X-Games event involving hacking code while juggling chainsaws. 18. Which of the following is not a characteristic of prototyping? a) It is iterative. b) It is usually deployed when developing high volume transaction processing systems. c) It is usually deployed when requirements of the new system are difficult to define or not fully understood. d) It may result in throwaway systems or fully usable systems. e) It is one of the RAD approaches. 19. The following are PMBOK knowledge areas except: a) Project Integration Management. b) Project Scope Management. c) Project Cost Management. 55

IT PROJECT MANAGEMENT d) Project Risk Management. e) Project Research Management. 20. All of the following are true about PMBOK except: a) b) c) d) e) PMBOK stands for Project Management Body of Knowledge. PMBOK was first published in 1987 and updated in 2000. PMBOK is a product of PMI, an NYSE listed company. PMBOK defines nine knowledge areas. PMBOK describes generally accepted principles.

Short Answer Questions (From End of Chapter Review Questions) 1. Describe the software crisis in your own words. 2. How is a successful project defined in the CHAOS study? 3. How is a challenged project defined in the CHAOS study? 4. How is an impaired project defined in the CHAOS study? 5. Why are many IT projects late, over budget and have fewer features and functions than originally envisioned? 6. What is the socio-technical approach to systems development? 7. What are the benefits of using a project management approach to develop information systems? 8. What is a methodology? 9. How do sharing experiences in the form of lessons learned lead to best practices in managing and developing information systems? 10. What is a project? 11. What is project management? 12. What are the attributes of a project? 13. Describe the relationship among scope, schedule and budget. 14. Describe the different roles and skill sets needed for a project. 15. Describe three risks that could be associated with an IT project.

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16. Why should assumptions associated with a project be documented? 17. Discuss the statement: Projects operate in an environment larger than the project itself. 18. Describe the project life cycle. 19. What are phase exits, stage gates, and kill points? What purpose do they serve? 20. What is fast tracking? When should fast tracking be used? When is fast tracking not appropriate? 21. Describe the Systems Development Life Cycle (SDLC). 22. Describe the Waterfall model for systems development. When should the Waterfall model be used? 23. Describe the prototyping approach to systems development. When is prototyping appropriate? 24. Describe the Spiral approach for iterative development. What advantages does this model have in comparison with the Waterfall model? 25. Describe extreme programming (XP). How does XP accelerate the SDLC? 26. Describe extreme project management. How does XPM differ from a more traditional approach to project management? 27. What is knowledge management? Although many people believe knowledge cannot be managed, why do you think many companies are undertaking knowledge management initiatives? 28. Although the Guide to the Project Management Body of Knowledge describes the generally accepted principles and practices of project management, why wouldnt these principles and practices work for every project? Essay Questions 1. Describe the phenomenon known as the software crisis as documented in the CHAOS study. pages 5-8 2. What are the primary objectives of each of the three approaches for improving the likelihood of project success

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IT PROJECT MANAGEMENT Socio-technical, Project-Management, & Knowledge Management. pages 8-11 3. Define both a project and project management. Describe the attributes of a project. Pages 11-13 4. Explain the triple constraint relationship. page 12-13 5. The text discussed four common roles that IT projects may require, each one with different skill sets. Name and describe three of these roles and their associated skill sets. page 13 6. Briefly describe the nature of each of the phases of the generic project life cycle. pages 15 7. Briefly describe the nature of each of the phases of the generic systems development life cycle. page 17 8. Compare and contrast structured approaches to systems development and rapid applications development (RAD). Illustrate the contrast with a specific example of each approach. pages 19-20 9. What is prototyping and when is this approach most likely to be appropriate? page 19 10. The Guide to Project Management Body of Knowledge defines nine knowledge areas for understanding project management. Name and briefly describe five of them. pages 22-23

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The Business Case 1. An Information Technology Project Methodology (ITPM) a) is an alternative metric for deciding between competing projects. b) is a six-phase program described by PMBOK and is offered as a generally accepted industry practice. c) is specified by parameters of the business case. d) is a set of deliverables derived from the various PLC phases. e) is a strategic-level plan for managing and controlling IT projects. 2. Scope and schedule are examples of: a) Project Management processes. b) Project Management tools. c) PMBOK areas of knowledge. d) Project Management objectives. e) Project Management infrastructure. 3. The first stage of the IT project methodology focuses on: a) choosing the project team members. b) defining the overall goal of the project. c) conceptualizing alternative approaches to project development. d) identifying the project's scope. e) identifying project managers and sponsors. 4. The project charter is a key deliverable from ________ and addresses ________: a) phase 1, How long will this project take? b) phase 1, Who is the project sponsor? c) phase 2, What scope controls will be used? d) phase 2, How much will the project cost? e) phase 3, Is there a detailed risk plan? 5. The _________ gives authority to the project manager to begin carrying out the processes and tasks associated with the systems development life cycle . a) business case b) project sponsor c) initiating process d) implementation plan e) project charter 6. The IT project management foundation includes all of the following except:

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a) PM processes b) PM objectives c) PM methodologies d) PM tools e) PMBOK knowledge areas 7. Which of the following statements about the business case is NOT true: a) A business case provides an analysis of feasibility. b) A business case provides senior management with sufficient information to fund a project. c) A business case provides details of possible impacts, costs and benefits. d) A business case provides a project budget. e) A business case may be a large formal document. 8. The Business case is the key deliverable for: a) phase 1. b) phase 2. c) phase 3. d) phase 4. e) phase 5. 9. Which of the following was NOT given as a reason for recruiting a core team to develop the business case? a) enhanced credibility b) alignment with organizational goals c) access to real costs d) early identification of project team e) shared sense of ownership 10. The overall goal and measure of project success is: a) the project's MOV. b) the project's NPV. c) the project's technical competency. d) the project's adherence to budget and schedule. e) the project's end-user acceptance. 11. All of the following are steps in developing the project MOV except: a) Identify the available organizational resources.

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b) Identify the desired value of the IT project. c) Develop an appropriate metric. d) Set a time frame for achieving MOV. e) Verify and get agreement from project stakeholders. 12. Which of the following statements is the best indicator that the new software project was successful? a) The project's product, a software system, was enthusiastically accepted by 100% of the end users who were able to begin using it after completing only a one-day training session. b) The project's product, a software system, was a week late and 2% over budget, but six months later was found to have met the company's goal of reducing service callbacks by 15%. c) The project's product, a software system, was completed two weeks ahead of time freeing up the entire development team to begin work on other projects. d) The project's product, a software system, was completed right on schedule and was delivered $10,000 under the $100,000 budget allocation. e) The project's product, a software system, was completed on time and on budget and was tested and shown to be 100% bug-free. 13. Which of the following is the best MOV statement? a) Our project should make Dayton customers flock to the stores in droves to buy our products. b) Our project should be completed in no more than 180 days and should cost no more than $150,000 and be completed 100% in-house. c) Our project should increase sales in the Dayton market by 15% next year to complete our company's Ohio expansion strategy. d) Our project should utilize the Spiral Development approach to eliminate 95% of the major risks to our Dayton sales program. e) Our project should produce an advertising campaign in Dayton that wins the Ohio Advertising Guild's Award for most creative campaign. 14. A company utilizes the payback method exclusively to select projects. Which of the following mutually exclusive (they can only do one of them) projects will they choose? (Assume cash flows occur in equal monthly installments). a) Initial Investment: $10,000 thereafter:$60,000 Net Cash Flows: year 1:$0 year 2:$120,000 year 3:$60,000 each year each

b) Initial Investment:$100,000 Net Cash Flows: year 1:$50,000 year 2:$50,000 year 3:$100,000 year thereafter:$1,000,000 c) Initial Investment:$10,000 Net Cash Flows: year 1:0 year 2:$100,000 year 3:$100,000 thereafter:$100,000

each year

d) Initial Investment:$100,000 Net Cash Flows: year 1:$1,000,000 year 2:$2,000,000 year 3:$2,000,000 each year thereafter:0 e) Initial Investment:$10,000 Net Cash Flows: year 1:$8,000 year 2:$12,000 year 3:$120,000 each year thereafter:$120,000

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15. How many widgets would a company have to sell if their initial investment was $60,000 and widgets sold for $25? Materials to produce 100 widgets cost $1000. Direct labor costs $2.50 per widget. Total indirect costs and overhead is 10% of the selling price. a) 4,800 b) 6,000 c) 8,000 d) 8,142 e) Not enough information to calculate. 16. Calculate the ROI for a project with total expected costs of $40,000 and total expected benefits of 35,000. a) -12.5% b) 12.5% c) 1.875% d) 187.5% e) -18.75% 17. Calculate the Net Present Value for a project with the following cash flows: Year 0: ($5,000) Year 1: $10,000 Year 2: $10,000 Year3: ($2,000). The discount rate is 5% a) $19,209.75 b) $14,209.75 c) $18,840.25 d) $23,840.25 e) $12,350.00 18. Trying to decide between three alternatives, a company employed a scoring model. Three criteria were chosen. Criteria A was believed to be the most important and was given a weight of 50%. The other two were deemed to be equal to each other in importance. A relative scoring range of 0 to 10 was used. The table below shows each alternative and their scores. Which alternative should the company choose? Criteria A B C Alternative A 5 8 8 Alternative B 6 7 8 Alternative C 7 7 5

a) Choose alternative A b) Choose alternative B c) Choose alternative C d) Choose either alternative A or B e) Choose either alternative A or C

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19. Which of the following is NOT a perspective from the Balanced Scorecard Approach?: a) Financial Perspective b) Internal Processes Perspective c) Innovation & Learning Perspective d) Customer Perspective e) Organizational Value Perspective 20. The text cites all of the following as reasons supporting the selection of an IT project except: a) The project's covariance with other projects leads to a reduction in the overall project portfolio risk. b) The project maps directly to the organization's strategies and goals c) The project provides measurable organizational value. d) The project represents a cutting edge technology that fits the team skill set. e) The project ranks favorably based on the companies adaptation of the Balanced Scorecard Approach.

http://www.pm-db.com/Project-Management/business-case

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