question

Actual cost (AC)

answer

The total of direct and indirect costs incurred in accomplishing work on an activity during a given period; formerly called the actual cost of work performed (ACWP).

question

Analogous estimate

answer

A cost-estimating technique that uses the actual cost of a previous, similar project as the basis for estimating the cost of the current project; also called top-down estimate.

question

Baseline

answer

The original project plan plus approved changes.

question

Bottom-up estimate

answer

A cost-estimating technique based on estimating individual work items and summing them to get a project total.

question

Budget at completion (BAC)

answer

The original total budget for a project.

question

Budgetary estimate

answer

A cost estimate used to allocate money into an organization's budget.

question

Cash flow analysis

answer

A method for determining the estimated annual costs and benefits for a project.

question

COCOMO II

answer

A newer, computerized cost-estimating tool based on Barry Boehm's original model that allows one to estimate the cost, effort, and schedule when planning a new software development activity.

question

Computerized tools

answer

Cost-estimating tools that use computer software, such as spreadsheets and project management software.

question

Constructive Cost Model (COCOMO)

answer

A parametric model developed by Barry Boehm for estimating software development costs.

question

Contingency reserves

answer

Dollars included in a cost estimate to allow for future situations that may be partially planned for (sometimes called known unknowns) and are included in the project cost baseline.

question

Cost baseline

answer

A time-phased budget that project managers use to measure and monitor cost performance.

question

Cost budgeting

answer

Allocating the overall cost estimate to individual work items to establish a baseline for measuring performance.

question

Cost control

answer

Controlling changes to the project budget.

question

Cost estimating

answer

Developing an approximation or estimate of the costs of the resources needed to complete the project.

question

Cost management plan

answer

A document that describes how cost variances will be managed on the project.

question

Cost performance index (CPI)

answer

The ratio of earned value to actual cost; can be used to estimate the projected cost to complete the project.

question

Cost variance (CV)

answer

The earned value minus the actual cost.

question

Definitive estimate

answer

A cost estimate that provides an accurate estimate of project costs.

question

Direct costs

answer

Costs that can be directly related to producing the products and services of the project.

question

Earned value (EV)

answer

The percentage of work actually completed multiplied by the planned cost; formerly called the budgeted cost of work performed (BCWP).

question

Earned value management (EVM)

answer

A project performance measurement technique that integrates scope, time, and cost data.

question

Estimate at completion (EAC)

answer

An estimate of what it will cost to complete the project based on performance to date.

question

Function points

answer

Technology-independent assessments of the functions involved in developing a system.

question

Indirect costs

answer

Costs that are not directly related to the products or services of the project, but are indirectly related to performing the project.

question

Intangible costs or benefits

answer

Costs or benefits that are difficult to measure in monetary terms.

question

Learning curve theory

answer

A theory that states that when many items are produced repetitively, the unit cost of those items normally decreases in a regular pattern as more units are produced.

question

Life cycle costing

answer

Considers the total cost of ownership, or development plus support costs, for a project.

question

Management reserves

answer

Dollars included in a cost estimate to allow for future situations that are unpredictable (sometimes called unknown unknowns).

question

Overrun

answer

The additional percentage or dollar amount by which actual costs exceed estimates.

question

Parametric modeling

answer

A cost-estimating technique that uses project characteristics (parameters) in a mathematical model to estimate project costs.

question

Planned value (PV)

answer

The portion of the approved total cost estimate planned to be spent on an activity during a given period; formerly called the budgeted cost of work scheduled (BCWS).

question

Profit margin

answer

The ratio between revenues and profits.

question

Profits

answer

Revenues minus expenses.

question

Project cost management

answer

The processes required to ensure that the project is completed within the approved budget.

question

Rate of performance (RP)

answer

The ratio of actual work completed to the percentage of work planned to have been completed at any given time during the life of the project or activity.

question

Reserves

answer

Dollars included in a cost estimate to mitigate cost risk by allowing for future situations that are difficult to predict.

question

Rough order of magnitude (ROM) estimate

answer

A cost estimate prepared very early in the life of a project to provide a rough idea of what a project will cost.

question

Schedule performance index (SPI)

answer

The ratio of earned value to planned value; can be used to estimate the projected time to complete a project.

question

Schedule variance (SV)

answer

The earned value minus the planned value.

question

Source Lines of Code (SLOC)

answer

A human-written line of code that is not a blank line or comment.

question

Sunk cost

answer

Money that has been spent in the past.

question

Tangible costs or benefits

answer

Costs or benefits that can be easily measured in dollars

question

3 Project Management Processes

answer

1 - Estimating the cost 2 - Determining the budget 3 - Controlling costs

question

Why do many projects never finish?

answer

Cost management problems cause many problems to never finish.

question

What are most executives concerned with more than other issues?

answer

profits

question

When do organizations have a history of not spending enough money and what does it impact?

answer

They have a history of not spending enough money in the early phases of projects and it impacts the total cost of ownership.

question

Why is cash flow important?

answer

If top management selects too many projects that have high cash flow needs in the same year, the company will not be able to support all of its projects and maintain profitability.

question

Why is it important to define clearly the year on which the company bases its dollar amounts?

answer

If a company bases all costs on a previous years estimates it would need to account for inflation and other factors when projecting costs and benefits in future-year dollars.

question

3 basic types of estimates

answer

1 - Rough order of magnitude (ROM) 2 - Budgetary estimate 3 - Definitive estimate

question

Earned value management involves calculating which three values for each activity or summary activity from a project's WBS?

answer

1 - Planned Value 2 - Actual Cost 3 - Earned Value

question

_______ is a resource sacrificed or foregone to achieve a specific objective or something given up in exchange.

answer

Cost

question

What is the main goal of project cost management?

answer

to complete a project within an approved budget.

question

If a company loses $5 for every $100 in revenue for a certain product, what is the profit margin for that product?

answer

-5%

question

______ reserves allow for future situations that are unpredictable.

answer

Management

question

You are preparing a cost estimate for a building based on its location, purpose, number of square feet, and other characteristics. What cost estimating technique are you using?

answer

parametric

question

______ involves allocating the project cost estimate to individual work items over time.

answer

Project cost budgeting

question

_____ is a project performance measurement technique that integrates scope, time, and cost data.

answer

Earned value analysis

question

If the actual cost for a WBS item is over $1500 and its earned value was $2000, what is its cost variance, and is it under or over budget?

answer

The cost variance is $500, which is under budget

question

If a project is halfway completed and its schedule performance index is 110 percent and its cost performance index is 95 percent, how is it progressing?

answer

It is ahead of schedule and over budget.

question

The ________ is the additional percentage or dollar amount by which actual costs exceed estimates.

answer

cost overrun

question

Which of the following processes of project cost management involves allocating the overall cost estimate to individual work items to establish a baseline for measuring performance?

answer

cost budgeting

question

Which of the following processes of project cost management involves developing an approximation of the costs of the resources needed to complete a project?

answer

cost estimating

question

The main outputs of the ________ process are work performance measurements, budget forecasts, organizational process asset updates, change requests, project management plan updates, and project document updates.

answer

cost control

question

To increase ________, a company can increase revenues, decrease expenses, or try to do both.

answer

profits

question

A company might complete a project to develop and implement a new customer service system in one or two years, but the new system could be in place for ten years. Project managers should create estimates of the costs and benefits of the project for ten years. This is an example of ________.

answer

life cycle costing

question

Avoid ________ when deciding what project to invest in or continue.

answer

sunk costs

question

________ for projects often include items like goodwill, prestige, and general statements of improved productivity that an organization cannot easily translate into dollar amounts.

answer

Intangible costs

question

________ are used for making many purchasing decisions for which accurate estimates are required and for estimating final project costs.

answer

Definitive estimates

question

Which type of estimate is done very early in a project or even before a project is officially started?

answer

rough order of magnitude (ROM) estimate

question

The drawback with ________ is that they are usually time-intensive and therefore expensive to develop.

answer

bottom-up estimates

question

A ________ might provide an estimate of $50 per line of code for a software development project based on the programming language the project is using, the level of expertise of the programmers, the size and complexity of the data involved, and so on.

answer

parametric model

question

Which type of estimate uses the actual cost of a previous, similar project as the basis for estimating the cost of the current project?

answer

top-down estimate

question

A(n) ________ is a time-phased budget that project managers use to measure and monitor cost performance.

answer

cost baseline

question

The ________ is an estimate of the value of the physical work actually completed.

answer

earned value (EV)

question

Suppose a project included a summary activity of purchasing and installing a new Web server. Suppose further that, according to the plan, it would take one week and cost a total of $10,000 for the labor hours, hardware, and software involved. The ________ for that activity that week is, therefore, $10,000.

answer

planned value (PV)

question

What is the earned value minus the actual cost?

answer

cost variance (CV)

question

What is the ratio of earned value to planned value and can be used to estimate the projected time to complete the project?

answer

schedule performance index (SPI)

question

Which of the following is the earned value minus the planned value?

answer

schedule variance (SV)

question

What is the ratio of earned value to actual cost and can be used to estimate the projected cost of completing the project?

answer

cost of performance index (CPI)

question

coercive power

answer

using punishment, threats, or other negative approaches to get people to do things they do not want to do

question

deputy project managers

answer

people who fill in for project managers in their absence and assist them as needed similar to the role of a vice president

question

empathic listening

answer

listening with the intent to understand

question

expert power

answer

using one's personal knowledge and expertise to get people to change their behavior

question

extrinsic motivation

answer

causes people to do something fora reword or to avoid a penalty

question

hierarchy of needs

answer

a pyramid structure illustrating maslows theory that peoples behaviors are guided or motivated by a sequence of needs

question

intrinsic motivation

answer

causes people to participate in an activity for their own enjoyment

question

legitimate power

answer

getting people to do things based on a position of authority

question

mirroring

answer

matching certain behaviors of the other person

question

organizational breakdown structure

answer

a specific type of organizational chart that shows which organizational units are responsible for which work items

question

power

answer

getting people to do things they would not otherwise do

question

rapport

answer

a relation of harmony conformity accord or affinity

question

referent power

answer

getting people to do things based on an individual's personal charisma

question

resource histogram

answer

A column chart that shows the number of resources required or assigned to a project over time

question

resource leveling

answer

A technique for resolving resources conflicts by delaying tasks.

question

resource loading

answer

amt of individual resources required during specific time periods.

question

responsibility assignment matrix

answer

matrix that maps the work of the project as described in the WBS to the people responsible for performing the work as described int he organizational breakdown structure

question

reward power

answer

using incentives to induce people to do things

question

subproject managers

answer

people responsible for managing the subprojects that a large project might be broken into

question

synergy

answer

an approach where the whole is greater than the sum of the parts

question

Project Human Resource Management

answer

Making the most effective use of the people involved with a project

question

4 steps for defining and assigning work

answer

1. Finalizing project requirements 2. Defining how the work will be accomplished 3. Breaking down the work into manageable elements 4. Assigning work responsibilities

question

5 dysfunctions of teams

answer

1 - Absence of trust 2 - Fear of conflict 3 - Lack of commitment 4 - Avoidance of accountability 5 - Inattention to results

question

issue log

answer

a tool for managing project teams where the project manager documents, monitors, and tracks issues that need to be resolved in order for the project to run smoothly

question

overallocation

answer

when more resources than are available are assigned to perform work at a given time

question

RACI charts

answer

charts that show Responsibility, Accountability, Consultation, and Informed roles for project stakeholders

question

staffing management plan

answer

a document that describes when and how people will be added to and taken off a project team

question

What do organizations need if they want to be successful at implementing information technology projects?

answer

They need to understand the importance of project human resource management and take actions to make effective use of people.

question

Human resource management includes the following four processes:

answer

1. Developing the human resource plan 2. Acquiring the project team 3. Developing the project team 4. Managing the project team

question

McGregor's Theory X

answer

People who believe in this assume that workers dislike and avoid work if possible, so managers must use coercion, threats, and various control schemes to get workers to make adequate efforts to meet objectives.

question

McGregor's Theory Y

answer

Manager's who believe in this assume that individuals do not inherently dislike work, but consider it as natural as rest or play.

question

Ouchi's Theory Z

answer

Manager's who believe in this assume workers can be trusted to do their jobs to their utmost ability, as long as management can be trusted to support them and look out for their well-being.

question

5 types of power

answer

• Coercive Power • Legitimate Power • Expert Power • Reward Power • Referent Power

question

The human resource plan often includes:

answer

An organizational chart for the project, detailed information on roles and responsibilities, and a staffing management plan.

question

just-in-time training

answer

Training that is given right before it is needed, so that it is fresh in the worker's mind when work begins.

question

What determines the success and failure of organizations and projects?

answer

People

question

5 whys

answer

A technique where you repeatedly ask the question "Why?" (five is a good rule of thumb) to help peel away the layers of symptoms that can lead to the root cause of a problem.

question

Acceptance decisions

answer

Decisions that determine if the products or services produced as art of the project will be accepted or rejected.

question

Appraisal cost

answer

The cost of evaluating processes and their outputs to ensure that a project is error-free or within an acceptable error range

question

Benchmarking

answer

A technique used to generate ideas for quality improvements by comparing specific project practices

question

Capability Maturity Model Integration (CMMI)

answer

A process improvement approach that provides organizations with the essential elements of effective processes

question

Cause-and-effect diagram

answer

Diagram that traces complaints about quality problems back to the responsible production operations to help find the root cause. Also known as fishbone diagram or Ishikawa diagram.

question

Conformance

answer

Delivering products that meet requirements and fitness for use

question

Conformance to requirements

answer

The project processes and products meet written specifications

question

Control chart

answer

A graphic display of data that illustrates the results of a process over time

question

Cost of nonconformance

answer

Taking responsibility for failures or not meeting quality expectations

question

Cost of quality

answer

The cost of conformance plus the cost of nonconformance

question

Defect

answer

Any instance where the product or service fails to meet customer requirements

question

DMAIC (Define, Measure, Analyze, Improve, Control)

answer

A systematic, closed-loop process for continued improvement that is scientific and fact based.

question

Design of experiments

answer

A quality technique that helps identify which variables have the most influence on the overall outcome of a process

question

External failure cost

answer

A cost related to all errors not detected and corrected before delivery to the customer

question

Features

answer

The special characteristics that appeal to users

question

Fishbone diagram

answer

Diagram that traces complaints about quality problems back to the responsible production operations to help find the root cause. Also known as cause-and-effect diagram or Ishikawa diagram

question

Flowchart

answer

Graphic display of the logic and flow of processes that helps you analyze how problems occur and how processes can be improved

question

Fitness for use

answer

A product can be used as it was intended

question

Functionality

answer

The degree to which a system performs its intended function

question

Histogram

answer

A bar graph of a distribution of variables

question

Integration testing

answer

Testing that occurs between unit and system testing to test functionality grouped components to ensure a subset(s) of the entire system works together

question

Internal failure cost

answer

A cost incurred to correct an identified defect before the customer receives the product

question

Ishikawa diagram

answer

Diagram that traces complaints about quality problems back to the responsible production operations to help find the root cause. Also known as cause-and-effect diagram or fishbone diagram

question

ISO 9000

answer

A quality system standard developed by the International Organization for Standardization (ISO) that includes a three-part, continuous cycle of planning, controlling, and documenting quality in an organization

question

Maintainability

answer

The ease of performing maintenance on a product

question

Malcolm Baldrige National Quality Award

answer

An award started in 1987 to recognize companies that have achieved a level of world-class competition through quality management

question

Maturity model

answer

A framework for helping organizations improve their processes and systems

question

Mean

answer

The average value of a population

question

Measurement and test equipment costs

answer

The capital cost of equipment used to perform prevention and appraisal activities

question

Metric

answer

A standard of measurement

question

Normal distribution

answer

A bell-shaped curve that is symmetrical about the mean of the population

question

Pareto analysis

answer

Identifying the vital few contributors that account for most quality problems in a system

question

Pareto chart

answer

Histogram that helps identify and prioritize problem areas

question

Performance

answer

How well a product or service performs the customer's intended use

question

Prevention cost

answer

The cost of planning and executing a project so that it is error-free or within an acceptable error range

question

Process adjustments

answer

Adjustments made to correct or prevent further quality problems based on quality control measurements

question

Project quality management

answer

Ensuring that a project will satisfy the needs for which it was undertaken

question

Quality

answer

The totality of characteristics of an entity that bear on its ability to satisfy stated or implied needs or the degree to which a set of inherent characteristics fulfill requirements

question

Quality assurance

answer

Periodically evaluating overall project performance to ensure that the project will satisfy the relevant quality standards

question

Quality audit

answer

Structured review of specific quality management activities that helps identify lessons learned and can improve performance on current or future projects

question

Quality circles

answer

Groups of nonsupervisors and work leaders in a single company department who volunteer to conduct group studies on how to improve the effectiveness of work in their department

question

Quality control

answer

Monitoring specific project results to ensure that they comply with the relevant quality standards and identifying ways to improve overall quality

question

Quality planning

answer

Identifying which quality standards are relevant to the project and how to satisfy them

question

Reliability

answer

The ability of a product or service to perform as expected under normal conditions

question

Rework

answer

Action taken to bring rejected items into compliance with product requirements or specifications or other stakeholder expectations

question

Robust Design Methods

answer

Methods that focus on eliminating defects by substituting scientific inquiry for trial-and-error methods

question

Run chart

answer

Chart that displays the history and pattern of variation of a process over time

question

Scatter diagram

answer

Diagram that helps to show if there is a relationship between two variables; also called XY charts

question

Seven run rule

answer

If seven data points in a row on a quality control chart are all below the mean, above the mean, or are all increasing or decreasing, then the process needs to be examined for nonrandom problems

question

Six 9s of quality

answer

A measure of quality control equal to 1 fault in 1 million opportunities

question

Six Sigma

answer

A comprehensive and flexible system for achieving, sustaining, and maximizing business success that is uniquely driven by close understanding of customer needs, disciplined use of facts, data, statistical analysis, and diligent attention to managing, improving, and reinventing business processes

question

Software defect

answer

Anything that must be changed before delivery of the program

question

Software Quality Function Deployment (SQFD) model

answer

A maturity model that focuses on defining user requirements and planning software projects

question

Standard deviation

answer

A measure of how much variation exists in a distribution of data

question

Statistical sampling

answer

Choosing part of a population of interest for inspection

question

System outputs

answer

The screens and reports the system generates

question

System testing

answer

Testing the entire system as one entity to ensure that it is working properly

question

Unit test

answer

A test of each individual component (often a program) to ensure that it is as defect-free as possible

question

User acceptance testing

answer

An independent test performed by end users prior to accepting the delivered system

question

Yield

answer

The number of units handled correctly through the development process

question

What is the purpose of project quality management?

answer

to ensure that the project will satisfy the needs for which it was undertaken.

question

Who decides if quality is acceptable?

answer

The customer.

question

3 main processes involved in project quality management

answer

1 - quality planning 2 - quality assurance 3 - quality control

question

Important scope aspects of IT projects that affect quality

answer

Functionality and Features - important to recognize the difference between necessary and optional functionality and features. System outputs - important to define clearly what the screens and reports look like. Can the users easily interpret these outputs? Performance Reliability Maintainability

question

Main outcomes of quality control

answer

Acceptance decisions Rework Process adjustments

question

7 basic tools of quality

answer

1 - cause-and-effect diagrams 2 - control charts 3 - run chart 4 - scatter diagram 5 - histograms 6 - Pareto charts 7 - flow charts

question

stress testing

answer

It involves testing beyond normal operational capacity, often to a breaking point, in order to observe the results.

question

What can assist in improving quality?

answer

Strong leadership, understanding the cost of quality, providing a good workplace to enhance quality, and working toward improving the organization's overall maturity level in software development and project management can all assist in improving quality.

question

What can assist in improving quality?

answer

Strong leadership, understanding the cost of quality, providing a good workplace to enhance quality, and working toward improving the organization's overall maturity level in software development and project management can all assist in improving quality.

Project Management II – Quiz 1 – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards