Project MGT QUESTIONS AND VERIFIED
CORRECT ANSWERS GRADED A+
LATEST 100% GUARANTEED PASS
Emergency projects - CORRECT ANSWER-Rebuilding something destroyed - must do
-rebuilding hotel destroyed by fire
Operational projects - CORRECT ANSWER-- Those that are needed to support current
operations.
- Designed to improve efficiency of delivery systems, reduce product costs, and improve
performance.
- Some of these projects, given their limited scope and cost, require only immediate manager
approval, while bigger, more expensive projects require more extensive review.
- Total Quality Management (TQM) projects are examples of organizational projects.
-introduce wifi
Strategic projects - CORRECT ANSWER-Directly supports the organization's long run mission
-Build 4-mile hiking trail
Financial criteria for projects - CORRECT ANSWER-For most managers, financial criteria are the
preferred method to evaluate projects. These models are appropriate when there is a high level
of confidence associated with estimates of future cash flows.
,Payback period- how long it takes to get your money back, ignores time value of money, cash
inflows only for investment period
Net Present Value (NPV)- minimum desired rate of return, want positive
Return on Investment (ROI)- measures the amount of return on an investment relative to the
investment's cost.
Internal Rate of Return (IRR)- the discount rate which makes NPV 0 . Present value of outflows is
equal to inflows, higher IRR is better
Non-financial criteria for projects - CORRECT ANSWER-An organization may have projects that
do not have high profit margins for strategic reasons, including:
- To capture larger market share
- To make it difficult for competitors to enter the market
- To develop an enabler product
- To develop core technology
- To reduce dependency on unreliable suppliers
- To prevent government intervention
- To restore corporate image or enhance brand recognition
Multi-Weighted Scoring Models - each selection is assigned a weight (able to rank projects on
importance of factors)
Matheson and Matheson's classifications of projects - CORRECT ANSWER-- Bread and Butter
- Pearl
- White Elephant
- Oyster
, Bread and Butter - CORRECT ANSWER-Typically involve evolutionary improvements to current
products or services.
-software upgrades
Pearl - CORRECT ANSWER-Represent revolutionary commercial advantages using proven
technical advances.
-next-gen chip
White Elephant - CORRECT ANSWER-Projects that, at one time, showed promise but are no
longer viable.
-products for a saturated market or a potent energy source with toxic side effects
Oyster - CORRECT ANSWER-Involve technological breakthroughs with high commercial payoffs.
-embryonic DNA treatments and new kinds of metal alloys
Organizational structures - CORRECT ANSWER-A project management system provides a
framework for launching and implementing project activities within a parent organization.
Organizational structure advantages and disadvantages - CORRECT ANSWER-Advantages
- No change in the organization
- Maximum flexibility in the use of staff
- In-depth expertise
- Easy post-project transition
Disadvantages
- Lack of focus, lack of motivation, lack of ownership
- Poor integration across functional units
CORRECT ANSWERS GRADED A+
LATEST 100% GUARANTEED PASS
Emergency projects - CORRECT ANSWER-Rebuilding something destroyed - must do
-rebuilding hotel destroyed by fire
Operational projects - CORRECT ANSWER-- Those that are needed to support current
operations.
- Designed to improve efficiency of delivery systems, reduce product costs, and improve
performance.
- Some of these projects, given their limited scope and cost, require only immediate manager
approval, while bigger, more expensive projects require more extensive review.
- Total Quality Management (TQM) projects are examples of organizational projects.
-introduce wifi
Strategic projects - CORRECT ANSWER-Directly supports the organization's long run mission
-Build 4-mile hiking trail
Financial criteria for projects - CORRECT ANSWER-For most managers, financial criteria are the
preferred method to evaluate projects. These models are appropriate when there is a high level
of confidence associated with estimates of future cash flows.
,Payback period- how long it takes to get your money back, ignores time value of money, cash
inflows only for investment period
Net Present Value (NPV)- minimum desired rate of return, want positive
Return on Investment (ROI)- measures the amount of return on an investment relative to the
investment's cost.
Internal Rate of Return (IRR)- the discount rate which makes NPV 0 . Present value of outflows is
equal to inflows, higher IRR is better
Non-financial criteria for projects - CORRECT ANSWER-An organization may have projects that
do not have high profit margins for strategic reasons, including:
- To capture larger market share
- To make it difficult for competitors to enter the market
- To develop an enabler product
- To develop core technology
- To reduce dependency on unreliable suppliers
- To prevent government intervention
- To restore corporate image or enhance brand recognition
Multi-Weighted Scoring Models - each selection is assigned a weight (able to rank projects on
importance of factors)
Matheson and Matheson's classifications of projects - CORRECT ANSWER-- Bread and Butter
- Pearl
- White Elephant
- Oyster
, Bread and Butter - CORRECT ANSWER-Typically involve evolutionary improvements to current
products or services.
-software upgrades
Pearl - CORRECT ANSWER-Represent revolutionary commercial advantages using proven
technical advances.
-next-gen chip
White Elephant - CORRECT ANSWER-Projects that, at one time, showed promise but are no
longer viable.
-products for a saturated market or a potent energy source with toxic side effects
Oyster - CORRECT ANSWER-Involve technological breakthroughs with high commercial payoffs.
-embryonic DNA treatments and new kinds of metal alloys
Organizational structures - CORRECT ANSWER-A project management system provides a
framework for launching and implementing project activities within a parent organization.
Organizational structure advantages and disadvantages - CORRECT ANSWER-Advantages
- No change in the organization
- Maximum flexibility in the use of staff
- In-depth expertise
- Easy post-project transition
Disadvantages
- Lack of focus, lack of motivation, lack of ownership
- Poor integration across functional units
