QMGT 6655 - Midterm Study Guide
(Chapters 1 - 7); Project Management -
The Managerial Process 7th Edition
QUESTIONS AND VERIFIED CORRECT
ANSWERS GRADED A+ LATEST 100%
GUARANTEED PASS
Portfolio management asks: - CORRECT ANSWER-"What is strategic to our organization"
Three basic kinds of projects: - CORRECT ANSWER-Compliance, operational, and strategic.
Compliance projects: - CORRECT ANSWER-Those needed to meet regulatory conditions
required to operate in a region - "must do" - also includes emergency projects.
Operational projects: - CORRECT ANSWER-Those needed to support current operations.
Designed to improve efficiency, reduce costs, and improve performance.
Strategic projects: - CORRECT ANSWER-Directly supports the organization's long run mission.
Directed toward increasing revenue or market share.
Criteria for selecting projects: - CORRECT ANSWER-Financial & non-financial.
,Two financial models for selecting projects: - CORRECT ANSWER-payback method & net present
value (NPV)
Payback method for selecting projects: - CORRECT ANSWER-The time it takes to pay back the
project investment. Does not consider the time value of money or the life of the investment.
Net present value for selecting projects: - CORRECT ANSWER-A minimum rate of return
discount (i.e. 15%) is used to compute present value of all future cash inflows and outflows.
Use of non-financial criteria for selecting projects: - CORRECT ANSWER--To capture larger
market share
-To make it difficult for competitors to enter the market
-To develop an enabler product, which by its introduction will increase sales in more profitable
products
-To develop core technology that will be used in next-generation --products
-To reduce dependency on unreliable suppliers
-To prevent government intervention and regulation
Two multi-criteria selection models: - CORRECT ANSWER-Checklist & multi-weighted scoring
models.
Checklist project selection model: - CORRECT ANSWER-The most frequently used method in
selecting projects. Uses a list of questions to review potential projects and to determine their
acceptance or rejection.
, Multi-weighted scoring project selection model: - CORRECT ANSWER-Uses several weighted
selection criteria to evaluate project proposals. Will include qualitative and/or quantitative
criteria. Projects with higher weighted scores are considered better.
Who is responsible for prioritizing projects? - CORRECT ANSWER-Senior management.
Two types of risk associated with projects: - CORRECT ANSWER-Risks associated with the total
portfolio of projects.
Specific project risks that can inhibit the execution of a project, such as schedule, cost, and
technical.
Four basic types of projects: - CORRECT ANSWER-- Bread and butter: Relatively easy to
accomplish and produce modest commercial value.
- Pearls: Low risk development projects with high commercial payoffs.
- Oysters: High risk, high value projects.
- White elephants: Projects that at one time showed promise but are no longer viable.
Three types of project management structures: - CORRECT ANSWER-Functional organization,
dedicated project team, Matrix arrangement.
Organizing projects within the functional organization: - CORRECT ANSWER-Different segments
of the project are delegated to the respective functional units with each
(Chapters 1 - 7); Project Management -
The Managerial Process 7th Edition
QUESTIONS AND VERIFIED CORRECT
ANSWERS GRADED A+ LATEST 100%
GUARANTEED PASS
Portfolio management asks: - CORRECT ANSWER-"What is strategic to our organization"
Three basic kinds of projects: - CORRECT ANSWER-Compliance, operational, and strategic.
Compliance projects: - CORRECT ANSWER-Those needed to meet regulatory conditions
required to operate in a region - "must do" - also includes emergency projects.
Operational projects: - CORRECT ANSWER-Those needed to support current operations.
Designed to improve efficiency, reduce costs, and improve performance.
Strategic projects: - CORRECT ANSWER-Directly supports the organization's long run mission.
Directed toward increasing revenue or market share.
Criteria for selecting projects: - CORRECT ANSWER-Financial & non-financial.
,Two financial models for selecting projects: - CORRECT ANSWER-payback method & net present
value (NPV)
Payback method for selecting projects: - CORRECT ANSWER-The time it takes to pay back the
project investment. Does not consider the time value of money or the life of the investment.
Net present value for selecting projects: - CORRECT ANSWER-A minimum rate of return
discount (i.e. 15%) is used to compute present value of all future cash inflows and outflows.
Use of non-financial criteria for selecting projects: - CORRECT ANSWER--To capture larger
market share
-To make it difficult for competitors to enter the market
-To develop an enabler product, which by its introduction will increase sales in more profitable
products
-To develop core technology that will be used in next-generation --products
-To reduce dependency on unreliable suppliers
-To prevent government intervention and regulation
Two multi-criteria selection models: - CORRECT ANSWER-Checklist & multi-weighted scoring
models.
Checklist project selection model: - CORRECT ANSWER-The most frequently used method in
selecting projects. Uses a list of questions to review potential projects and to determine their
acceptance or rejection.
, Multi-weighted scoring project selection model: - CORRECT ANSWER-Uses several weighted
selection criteria to evaluate project proposals. Will include qualitative and/or quantitative
criteria. Projects with higher weighted scores are considered better.
Who is responsible for prioritizing projects? - CORRECT ANSWER-Senior management.
Two types of risk associated with projects: - CORRECT ANSWER-Risks associated with the total
portfolio of projects.
Specific project risks that can inhibit the execution of a project, such as schedule, cost, and
technical.
Four basic types of projects: - CORRECT ANSWER-- Bread and butter: Relatively easy to
accomplish and produce modest commercial value.
- Pearls: Low risk development projects with high commercial payoffs.
- Oysters: High risk, high value projects.
- White elephants: Projects that at one time showed promise but are no longer viable.
Three types of project management structures: - CORRECT ANSWER-Functional organization,
dedicated project team, Matrix arrangement.
Organizing projects within the functional organization: - CORRECT ANSWER-Different segments
of the project are delegated to the respective functional units with each
