Chapter 1

1) A __________ refers to ongoing, day-to-day activities in which an organization engages while

producing goods and services.
Answer: process

2) The goals of a project are sometimes called __________.

Answer: deliverables

3) Projects are __________-focused.

Answer: customer

4) Project management entails crossing __________ and __________ boundaries.

Answer: functional, organizational

5) In general, product life cycles are becoming __________ and product launch windows are
becoming __________.
Answer: shorter, narrower

6) __________ serves as an excellent training ground for future senior executives in most
organizations.
Answer: Project management

7) The stages in a project's development are known as the __________.

Answer: project life cycle

8) Detailed specifications, schematics, and schedules are all developed during the __________
stage.
Answer: planning

9) Creativity is at its zenith during the __________ stage of the project life cycle.
Answer: execution

10) The degree of risk associated with the project is at its highest during the __________ stage.
Answer: conceptualization

11) The triple constraint of project success is __________.

Answer: time, cost, performance

12) Atkinson suggests that all groups that are affected by a project, otherwise known as
__________, should have a hand in assessing project success.
Answer: stakeholders

13) __________ are used to allow organizations to benchmark the best practices of successful
project management firms.
Answer: Project management maturity models
14) The Center for Business Practices maturity model stage that describes project management as
an ad hoc process is __________.
Answer: Level 1 or Initial Process

15) In general, all project management maturity models agree that an organization that has
internalized all necessary project management principles and is actively seeking to move beyond
these in innovative ways is __________.
Answer: (project) mature

Chapter 2

Chapter 3
1) A project selection model that is broad enough to be applied to multiple projects has the virtue
of __________.
Answer: comparability

2) Project selection model come in two general classes: __________ and __________.
Answer: numeric, nonnumeric

3) The simplest method of project screening and selection is developing a(n) __________ that
contains criteria that pertain to a choice of projects.
Answer: checklist

4) A simple scoring model assigns __________ to the criteria used to evaluate projects.
Answer: weights

5) The __________ method of project screening generates overall project scores that can be
compared meaningfully against each other.
Answer: Analytical Hierarchy Process (AHP)

6) In project management, the __________ is the set of project portfolio options that offers either
a maximum return for every given level of risk or the minimum risk for every level of return.
Answer: efficient frontier

7) Financial models are all predicated on the __________ principal.

Answer: time value of money

8) The __________ screening method may arrive at multiple solutions, which is one reason it is
used less widely than the net present value technique.
Answer: internal rate of return (IRR)

9) An organization that has some flexibility in postponing a project and might be able to make a
better decision with information that would be available at a later date might make use of a(n)
__________ for project screening.
Answer: options model
10) __________ is the systematic process of selecting, supporting, and managing a firm's
collection of projects.
Answer: Project portfolio management

11) A firm that offsets risky ventures with more secure projects or new development ventures
with existing product line cash cows is desirous of __________.
Answer: (project portfolio) balance
12) A principle cause of project portfolio underperformance is lack of __________.
Answer: (adequate) resources

Chapter 5
1) Work content and expected outcomes are called __________ in project management.
Answer: scope

2) __________ are formally defined as "any measurable, tangible, verifiable outcome, result, or
item that must be produced to complete a project or part of a project."
Answer: Deliverables

3) __________ are the lowest level in the work breakdown structure, composed of short duration
tasks that have a defined beginning and end.
Answer: Work packages

4) The leader for team A isn't sure offhand who needs to approve the next step in their work
package but he knows that if he consults the __________ he can determine who has approval
authority for the necessary purchase of that pair of weasels.
Answer: responsibility assignment matrix (RAM)

5) When Marge agreed to help move her brother's worldly possessions from Omaha to Seattle
she stipulated that at the end of the drive he would reimburse her for the truck rental, all gasoline,
and road expenses and give her an additional $500, effectively creating a(n) __________
contract between the two.
Answer: cost-plus

6) The type of information that will be reported regularly, who will receive it, and how the
information will be collected and disseminated falls under the umbrella of __________.
Answer: scope reporting

7) __________ includes procedures that monitor emerging project scope against original baseline
scope.
Answer: Configuration control

8) Three years and $250,000 later, the homeowner's simple two-bedroom bungalow project had
morphed into a state-of-the-art sprawling ranch. The construction manager was able to keep track
of all the changes along the way and keep all subcontractors up-to-date thanks to meticulous
__________.
Answer: configuration management
9) __________ follows a formal reporting structure, including study and documentation of the
project's performance in terms of cost, schedule adherence, and technical specifications as part of
project closeout.
Answer: Post project analysis

Chapter 6
1) Team building and conflict management are two of the more important and difficult
__________ that project managers can cultivate.
Answer: people skills

2) The first step in assembling a project team is to study the work breakdown structure in order
to __________.
Answer: identify skills

3) The project wouldn't have been possible without the combined efforts of its members from
several different functional areas of the organization. Each member contributed what he could
and left other pieces of the puzzle to other members with the requisite skills. This reliance on the
team was a classic example of __________.
Answer: (productive) interdependency

4) A team that is firmly committed to achieving the project's goals is said to have a(n)
__________ orientation.
Answer: results

5) The unnecessary project was a low priority for many members of the department. Why bother
to attend meetings or do anything if there was no opportunity for advancement. The team
suffered a serious lack of __________ and there was little that could be done to rectify it.
Answer: motivation

6) Conflict begins as team members begin to resist authority and demonstrate hidden agendas
during the __________ stage of group development.
Answer: storming

7) A(n) __________ is an overall purpose that is important to all functional groups involved, but
whose attainment requires the resources and efforts of more than one group.
Answer: superordinate goal

8) __________ reflects the fact that different functional departments develop their own mindsets
and value systems that can conflict with those of other departments.
Answer: Differentiation

9) A(n) __________ encourages conflict in an organization because it keeps an organization

from stagnating.
Answer: interactionist
10) Confrontation and defusion are two approaches to __________.
Answer: mediation
Chapter 07

33. The ________ impact of a risk event in a project is less if the event occurs earlier rather than
later.
cost

34. The likelihood of a risk event occurring ________ as a project goes through its life cycle.
decreases

35. The first step in the Risk Management process is ________.

risk identification

36. Risk events such as inflation, market acceptance, and government regulations are referred to
as ________.
threats
The sources of project risks are unlimited. There are sources external to the organization, such as
inflation, market acceptance, exchange rates, and government regulations. In practice, these risk
events are often referred to as "threats" to differentiate them from those that are not within the
project manager's or team's responsibility area.

37. A ________ is a list of questions that address traditional areas of uncertainty on a project.
risk profile
A risk profile is a list of questions that address traditional areas of uncertainty on a project.

38. The easiest and most commonly used technique for analyzing risks is ________.
scenario analysis
Scenario analysis is the easiest and most commonly used technique for analyzing risks.

39. The ________ form identifies each risk event, the likelihood of it occurring, the potential
impact, when it may occur, and the degree of difficulty in detecting it.
risk assessmen

40. The ________ matrix is divided into red, yellow, and green zones representing major,
moderate, and minor risks.
risk severity
The risk severity matrix provides a basis for prioritizing which risks to address. Red zone risks
receive first priority followed by yellow zone risks. Green zone risks are typically considered
inconsequential and ignored unless their status changes.

41. The vertical scale on the Risk Severity Matrix measures the _________ of a potential risk
event.
likelihood

42. The horizontal scale on the Risk Severity Matrix measures the _________ of a potential risk
event.
impact
43. In __________ the Risk Severity Matrix is extended by including the ease of detecting a risk
event occurring.
Failure Mote and Effects Analysis (FMEA)
Failure Mode and Effects Analysis (FMEA) extends the risk severity matrix by including ease of
detection in the equation: Impact x Probability x Detection = Risk Value.

44. In a ________, three different estimates of activity times are used to statistically predict the
time an activity will take to complete.
probability analysis
There are many statistical techniques available to the project manager that can assist in assessing
project risk. Decision trees have been used to assess alternative courses of action using expected
values. Statistical variations of net present value (NPV) have been used to assess cash flow risks
in projects. Correlations between past projects' cash flow and S-curves (cumulative project cost
curvebaselineover the life of the project) have been used to assess cash flow risks.

45. The "Snapshot from Practice" case where Ellipsus Systems developed parallel prototype
systems (WAP and JAVA) is an example of _________ a risk.
avoiding
Risk avoidance is changing the project plan to eliminate the risk or condition. Although it is
impossible to eliminate all risk events, some specific risks may be avoided before you launch the
project. Rikard Kjellberg's solution was to have projects in his company's portfolio based on both
standards. Ellipsus built early prototypes of both systems and took them to a trade show, with
both systems sitting side by side. "We knew within an hour which way to go," says Douglas
Davies, the COO. Ellipsus began securing million dollar contracts to supply its Java-based
system to leading U.S. operators.

46. Testing a new project on a smaller isolated area prior to installing it for the entire
organization is an example of ________ a risk.
mitigating
Reducing risk is usually the first alternative considered. There are basically two strategies for
mitigating risk: (1) reduce the likelihood that the event will occur and/ or (2) reduce the impact
that the adverse event would have on the project. Most risk teams focus first on reducing the
likelihood of risk events since, if successful, this may eliminate the need to consider the
potentially costly second strategy.

47. Performance bonds, warranties, and insurance are examples of ________ a risk.
transferring
Passing risk to another party is common; this transfer does not change risk. Passing risk to
another party almost always results in paying a premium for this exemption. Fixed-price
contracts are the classic example of transferring risk from an owner to a contractor.

48. When the entertainment industry formed a consortium to define a common operating format
for DVD it was ________ the risk.
sharing
This strategy involves allocating some or all of the ownership of an opportunity to another party
who is best able to capture the opportunity for the benefit of the project. Examples include
establishing continuous improvement incentives for external contractors or joint ventures.

49. If a risk event is very unlikely to occur the project owner would probably ________ the risk.
retain
Some risks are so large it is not feasible to consider transferring or reducing the event (e.g., an
earthquake or flood). The project owner assumes the risk because the chance of such an event
occurring is slim.

50. A ________ identifies what to do if a potential risk event actually occurs.

risk response matrix
See Figure 7.6 on Page 225.

51. ________ reserves are identified for specific work packages and cover risks that have a low
probability of occurring.
Budget
These reserves are identified for specific work packages or segments of a project found in the
baseline budget or work breakdown structure. For example, a reserve amount might be added to
"computer coding" to cover the risk of "testing" showing a coding problem. The reserve amount
is determined by costing out the accepted contingency or recovery plan. The budget reserve
should be communicated to the project team.

52. ________ reserves are controlled by the project manager and used to cover major unforeseen
risks to the entire project.
Management
These reserve funds are needed to cover major unforeseen risks and, hence, are applied to the
total project. For example, a major scope change may appear necessary midway in the project.

53. A ____________ is an alternative that will be used if a possible foreseen risk event becomes
a reality.
contingency plan
A contingency plan is an alternative plan that will be used if a possible foreseen risk event
becomes a reality.

54. A ____________ is useful for summarizing how the project team plans to manage risks that
have been identified.
Risk Response Matrix
Risk response matrices such as the one shown in Figure 7.8 on page 225 are useful for
summarizing how the project team plans to manage risks that have been identified.