Business of IT - Project Management (D324)

Correct Answer

D. Earned value management

Explanation

Earned Value Management (EVM) is a project performance measurement technique that integrates scope, time, and cost data to assess a project's performance. EVM compares the planned progress of a project with the actual progress and the budgeted cost, providing valuable insights into the project's overall health and any corrective actions needed.

Why other options are wrong

A. Reserve analysis

Reserve analysis is used to assess the amount of contingency reserves needed for uncertain aspects of the project. It is not a performance measurement technique integrating scope, time, and cost. Rather, it's focused on risk and uncertainty management.

B. Life cycle costing

Life cycle costing involves evaluating the total cost of a project over its entire life cycle, from initiation to closure. While it considers cost, it does not integrate time and scope, which is the focus of Earned Value Management.

C. Project cost budgeting

Project cost budgeting involves developing an approved version of the project's cost baseline but does not integrate scope, time, and cost data as EVM does. Cost budgeting focuses on cost estimates and allocations rather than performance tracking.

Correct Answer

B. to complete a project within an approved budget

Explanation

The main goal of project cost management is to ensure that the project is completed within the approved budget. This involves planning, estimating, budgeting, and controlling costs to ensure that the project can meet its financial constraints while delivering the agreed-upon scope and quality. The focus is on managing costs effectively rather than minimizing them at all costs.

Why other options are wrong

A. to complete a project for as little cost as possible

While cost minimization may be a consideration, the primary goal of project cost management is to complete the project within the approved budget, not necessarily to make the project as cheap as possible. Cutting costs can sometimes compromise quality or scope.

C. to provide truthful and accurate cost information on projects

Providing truthful and accurate cost information is important, but it is a part of the cost management process. The overall goal is not just to provide information but to manage costs within the set budget to ensure the project’s success.

D. to ensure that an organization's money is used wisely

This is a broader goal that applies to financial management in general, not specifically to project cost management. The main goal of project cost management is to ensure the project stays within its budget rather than focusing on overall organizational financial strategy.

Correct Answer

D. control

Explanation

Project work thrives in environments that emphasize collaboration, creativity, and adaptability. While control can be important in some organizational settings, too much focus on control can stifle innovation and hinder the flexibility needed to complete projects successfully. Cultures that prioritize member identity, group emphasis, and risk tolerance foster more effective project work, as they encourage team collaboration and the willingness to take risks to achieve success.

Why other options are wrong

A. member identity

Member identity refers to how strongly employees identify with the organization or team. A strong sense of identity contributes to higher commitment, collaboration, and motivation in project work.

B. group emphasis

Group emphasis highlights the importance of teamwork and collaboration, which is critical in project work. Projects often require cross-functional cooperation, and a culture that values group effort fosters project success.

C. risk tolerance

Risk tolerance is essential for successful project work, as projects often involve uncertainty and challenges. A culture that encourages risk-taking allows teams to innovate and pursue opportunities without the fear of failure.

Correct Answer

C. histogram

Explanation

A resource histogram is a type of bar chart that displays the number of resources assigned to a project over a certain time period. It is used in staffing management plans to visualize resource utilization and identify periods of overuse or underuse.

Why other options are wrong

A. chart

A chart could refer to various types of visual representations of data, not necessarily one that shows resource assignment over time like a histogram.

B. graph

While a graph could show resource assignment over time, the specific term for this in the context of staffing management is a histogram.

D. timeline

A timeline shows the sequence and duration of project activities over time, but it does not focus on the specific number of resources assigned, as a histogram does.

Correct Answer

D. all of the above

Explanation

Project integration management involves various tools and techniques, and all of the options listed play a role in the integration processes. Project management software can assist in scheduling, tracking, and resource allocation; templates provide consistency in document creation; and expert judgment is necessary for decision-making and evaluating complex project issues.

Why other options are wrong

A. project management software

While useful, project management software alone is not sufficient for all processes of project integration management. It is one of the tools but does not cover all processes.

B. templates

Templates are helpful for creating standardized documents, but they do not cover the full scope of integration management, which requires more complex and dynamic processes.

C. expert judgment

Expert judgment is essential for making informed decisions, but relying solely on expert judgment does not encompass all the tools and techniques used in project integration management, such as software and templates.

Correct Answer

A. Project management

Explanation

Project management is defined as the application of knowledge, skills, tools, and techniques to project activities to meet project requirements. It involves planning, executing, and closing projects to achieve specific goals within a defined timeframe, scope, and budget.

Why other options are wrong

B. Program management

Program management refers to managing a group of related projects to achieve strategic objectives. Unlike project management, which focuses on individual projects, program management coordinates multiple projects for broader organizational benefits.

C. Project portfolio management

Project portfolio management involves managing a collection of projects and programs within an organization to ensure they align with business strategy and objectives. It focuses on prioritizing and selecting the right projects rather than managing individual projects directly.

D. Requirements management

Requirements management involves gathering, analyzing, and managing project requirements. While it is a critical part of project management, it is a specific process rather than the overall application of knowledge, skills, tools, and techniques across a project.

Correct Answer

A. planning schedule management

Explanation

Planning schedule management is the process of establishing the policies, procedures, and documentation that will guide how the project schedule will be developed, managed, executed, and controlled throughout the project lifecycle. It ensures that a clear framework is in place to help manage the project’s schedule effectively and efficiently.

Why other options are wrong

B. defining activities

Defining activities is the process of identifying and documenting the specific actions required to produce the project deliverables. It does not focus on establishing the policies and procedures for managing the schedule.

C. estimating activity resources

Estimating activity resources involves determining what resources (such as people, equipment, and materials) are needed for the activities. While it supports the schedule management process, it does not establish the overall schedule management framework.

D. activity sequencing

Activity sequencing is the process of determining the logical order of activities. It helps define the project schedule but does not involve establishing policies, procedures, or documentation for managing the schedule.

Correct Answer

D. The government requirement that prompted the project was repealed.

Explanation

McDonald's terminated the project after spending $170 million because the government requirement that initially prompted the project was repealed. This made the project unnecessary, leading the company to halt the initiative.

Why other options are wrong

A. The company found better technology.

Although technological advancements can influence decisions, there is no evidence that McDonald's found better technology that led to the termination of the project. The decision was based on the repeal of the government requirement.

B. The company decided to outsource the work.

Outsourcing the work was not the reason for the termination. The project was canceled because the external requirement was no longer in place.

C. The scope was too much to handle.

While scope management can be a factor in project decisions, the project was canceled due to the repeal of a government mandate, not because the scope was too challenging.

Correct Answer

a. unit testing, integration testing, system testing, user acceptance

Explanation

The preferred order of testing on IT projects follows a logical progression:

Unit testing is conducted first, focusing on testing individual components or functions to ensure they work correctly in isolation.

Integration testing is next, verifying that the individual components work together as expected when combined.

System testing checks the entire system as a whole, making sure it meets the overall requirements and functions as intended.

User acceptance testing (UAT) is the final phase, where the users test the system to confirm it meets their needs and requirements.

Why other options are wrong

b. unit testing, system testing, integration testing, user acceptance testing - System testing should come after integration testing, as integration ensures that components work together before testing the whole system.

c. unit testing, system testing, user acceptance testing, integration testing - Integration testing should be performed before system and UAT testing to ensure that components are working together before the full system is tested or accepted by the user.

d. unit testing, integration testing, user acceptance testing, system testing - User acceptance testing comes after system testing to ensure the system works as intended before getting feedback from users.