1: Emails are example of formal written

Select one:
a. Informal verbal
b. Formal Written
c. Formal verbal

d. Informal written 

2: Meetings are example of

a. Formal verbal
b. Formal Written
c. Informal verbal 

d. Informal written

3; Majority of the time of Project Manager is spent on

Select one:
a. Project Planning
b. Project Communication 
c. Project control

d. Project Closure
Which of the following is NOT part of project communication management

Select one:
a. Information distribution
b. Project Procurement 
c. Communication planning

d. Performance Reporting
Feedback

Your answer is correct.

The correct answer is: Project Procurement

For a team of 10 persons, Project Manager has to manage how many

channels

Select one:
a. 60
b. 50
c. 40

d. NONE 
Feedback

Your answer is correct.

The correct answer is: NONE
-------------- describe where the project stands at a specific point in time

Select one:
a. Progress Report
b. Status review meeting 
c. Project Forecasting

d. Status Report
Feedback

Your answer is correct.

The correct answer is: Status Report

--------------- is called win-lose approach

Select one:
a. SMOOTHING 
b. NONE
c. CONFRONTATION

d. WITHDRAWAL
Feedback

Your answer is correct.

The correct answer is: NONE
--------------- describe what the project team has accomplished during a certain
period of time

Select one:
a. Progress Report 
b. Status Report
c. Status review meeting

d. Project Forecasting
Feedback

Your answer is correct.

The correct answer is: Progress Report

Give and take approach is called

Select one:
a. Smoothing
b. NONE 
c. Confrontation

d. Withdrawal
Feedback

Your answer is correct.

The correct answer is: NONE
Memos are example of

Select one:
a. Push communication 
b. Interactive communication
c. Pull communication

d. NONE
Feedback

Your answer is correct.

The correct answer is: Push communication

"Why is it to be done" is decided in which phase

Select one:
a. None
b. Planning phase

c. Execution phase
Feedback The correct answer is: None

Question 2
Complete
Mark 1.00 out of 1.00
How much risk is involved" is explained in which phase

Select one:
a. Planning phase
b. Initiation phase

c. Execution phase
The correct answer is: Initiation phase

Question 3
Complete
Mark 1.00 out of 1.00

Resources are identified in which phase

Select one:
a. Planning
b. Control

c. Execution
Feedback

The correct answer is: Planning

Question 4
Complete
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Project Charter is the output of 

Select one:
a. Close out
b. Initiation 

c. Planning

The correct answer is: Initiation 

Resources are identified in which phase

Select one:
a. Initiation
b. Planning

c. Execution
Feedback

The correct answer is: Planning

Question 6
Complete
Mark 1.00 out of 1.00

Project User acceptance is the output of

Select one:
a. Planning
b. Close out

c. Intiation
Feedback the correct answer is: Close out

Question 7
Complete
Mark 1.00 out of 1.00

Maximum flexibility in the use of staff is possible in 

Select one:
a. Matrix organisation 
b. Function Organisation 

c. Project Organisation
The correct answer is: Function Organisation 
Question 8
Complete
Mark 1.00 out of 1.00

lSlow response to client’s needs" is the disadvantage of 

Select one:
a. Matrix Organisation 
b. Function Organisation 

c. Project Organisation 
Feedback

The correct answer is: Function Organisation 

Question 9
Complete
Mark 0.00 out of 1.00

Ability to make swift decisions" is the benefit of which type of

organisation 

Select one:
a. FUNCTIONAL
b. MATRIX

c. PROJECT
Feedback

The correct answer is: PROJECT

Question 10
Complete
Mark 1.00 out of 1.00

"Projects resist death" is the disadvantage of 

Select one:

a. PROJECT
b. MATRIX

c. FUNCTIONAL
The correct answer is: MATRIX

……………..is close cooperation between cross-trained employees who are

familiar with a wide range of jobs in their organization

Select one:

a. Teamwork 
b. NONE

c. Team building
The correct answer is: Teamwork

Question 2
Correct
Mark 1.00 out of 1.00

Project teams of ……….members work best

Select one:

a. 3 to 11
b. 7 TO 12
c. 5 to 12 
The correct answer is: 5 to 12

Question 3
Correct
Mark 1.00 out of 1.00

For a team of 5 members …………… number of channels will be managed

Select one:

a. NONE
b. 9

c. 10 
The correct answer is: 10

Question 4
Correct
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................... in (1960s) published five stage model of team development

Select one:
a. Tuckman 
b. Hertzberg

c. Masslow
The correct answer is: Tuckman
Question 5
Correct
Mark 1.00 out of 1.00

Conflict of roles arises during

Select one:

a. NORMING
b. STORMING 

c. FORMING
Feedback

The correct answer is: STORMING

Question 6
Correct
According to Gersick maximum performance can be achieved …..

Select one:

a. Anywhere from start to end

b. Only at one midpoint of the project

c. By imposing multiple midpoints 

The correct answer is: By imposing multiple midpoints

Question 7
Correct
Mark 1.00 out of 1.00

…….. are people focused  and they “tell” others what to do

Select one:
 a. Analytical
b. Amiable

c. None 
the correct answer is: None

Question 8
Incorrect
Mark 0.00 out of 1.00

…….. are task focused  and they “tell” others what to do

Select one:

a. DRIVER
b. ANALYTICAL 

c. AMIABLE 
The correct answer is: DRIVER

Question 9
Correct
Mark 1.00 out of 1.00

Gardening is an example of

Select one:

a. INTRINSIC MOTIVATION 
b. NONE

c. EXTRINSIC MOTIVATION
Feedback

The correct answer is: INTRINSIC MOTIVATION

Question 10
Correct
Mark 1.00 out of 1.00

………. Are the factors who’s presence does not motivate team members
but their absence demotivates team members

Select one:
a. BOTH OF THEM
b. MOTIVATION FACTORS

c. HYGIENE FACTORS 
Feedback

The correct answer is: HYGIENE FACTORS

………………… = actual costs ± percentage of difference + incentive fee

Select one:
a. Cost plus fixed fee
b. Cost plus incentive fee 

c. Cost Plus Award Fee

Feedback

The correct answer is: Cost plus fixed fee

Question 2
Correct
Mark 1.00 out of 1.00

“The buyer pays the seller for allowable performance costs plus a
predetermined fee and an incentive bonus” is the definition of

Select one:
a. Cost plus fixed fee
b. Cost Plus Award Fee

c. Cost plus incentive fee 

Feedback

The correct answer is: Cost plus incentive fee

Question 3
Correct
Mark 1.00 out of 1.00

“The buyer pays the seller for allowable performance costs plus a fixed
fee payment usually based on a percentage of estimated costs” is the
definition of

Select one:
a. Cost Plus Award Fee
b. Cost plus incentive fee

c. Cost plus fixed fee 

Feedback

The correct answer is: Cost plus fixed fee

Question 4
Correct
Mark 1.00 out of 1.00

Make or buy decision is done after

Select one:
a. Contract Administration
b. Contract close out

c. None 
Feedback

The correct answer is: None

Question 5
Incorrect
Mark 0.00 out of 1.00

Proposals are received after

Select one:
a. Solicitation
b. Source Selection

c. Solicitation planning 
The correct answer is: Solicitation

Question 6
Incorrect
Mark 0.00 out of 1.00
Request for proposal RFP is issued after
Select one:
a. Solicitation planning 
b. Solicitation

c. Source Selection
The correct answer is: Solicitation

Question 7
Incorrect
Mark 0.00 out of 1.00

Substantial amount of work is closed after

Select one:
a. None
b. Contract close out 

c. Contract Administration
The correct answer is: Contract Administration

Question 8
Incorrect
Mark 0.00 out of 1.00

The risk of the buyer is highest in

Select one:
a. Firm Fixed price 
b. Cost plus fixed fee

c. Cost plus percentage of cost

The correct answer is: Cost plus percentage of cost

Question 9
Incorrect
Mark 0.00 out of 1.00

The risk of the seller is highest in

Select one:
a. Cost plus fixed fee
b. Firm Fixed price

c. Cost plus percentage of cost 

The correct answer is: Firm Fixed price

Question 10
Incorrect
Mark 0.00 out of 1.00

The seller is reimbursed for allowable costs in

Select one:
a. Cost plus fixed fee
b. Cost Plus Award Fee

c. Cost plus incentive fee 

The correct answer is: Cost Plus Award Fee

Concept Planning Execution/Control Closing

20% 60%

5% 15%
Disadvantage of functional organization

 Slow response to client’s needs

Advantage of matrix organization

 Rapid response to client needs

 Matrix organizations are complex

Project Management?

 The application of knowledge, skills, tools, techniques,

people, and systems focused on meeting or exceeding
stakeholder needs.

Initiation

 Define project’s objective

Planning

 Detail who does what when

Execution and Control

 Actual work occurs

 Compare performance to plan, make corrections

Closeout

 Project’s deliverables are accepted

Initiation phase

 Develop the project proposal

 What is to be done

 Why is it to be done
  How is it to be done

 How much risk is involved

 Output of Initiation Phase – Project Charter

 Output of Planning Phase – Project Plan

 Depending on complexity, project plans can contain:

o Work Breakdown Structure

o Resource Breakdown Structure

o Schedule

o Budget and Spending Plans

o Performance Plan

o Risk Management Plan

o Procurement Plan

o Communications Plan

o Change and Configuration Management Plan

o Quality Management Test Plan

 The Project Plan is used to guide project execution and

project control
 Outputs of Execution and Control Phase are the Project
Deliverables.
 Output of Closeout Phase is User Acceptance

Team-building
 is high interaction among group members to
increase trust and openness

Effective Team Characteristics

 1 Project Team Size

 2 Common Characteristics

 Project teams of 5 to 12 members work best

 Group Intercommunication Formula n(n − 1) / 2

 5 developers -> 5(5 − 1) / 2 = 10 channels of

communication

 10 developers -> 10(10 − 1) / 2 = 45 channels of

communication

 50 developers -> 50(50 − 1) / 2 = 1225 channels of

communication

 Tuckman (1960s) published five stage model of team

development

 (1960s) Abraham Maslow developed a hierarchy of

needs

 In the late 1960s Frederick Herzberg wrote about

worker motivation.

Motivation factors
 Help motivate workers directly eg. achievement,
recognition, work, responsibility

Hygiene factors

 cause dissatisfaction if absent but do not motivate,

eg. Money, working conditions,
• Communications planning: determining the information
and communications needs of the stakeholders

• Information distribution: making needed information

available in a timely manner

• Performance reporting: collecting and disseminating

performance information
 • Administrative closure: generating, gathering, and
disseminating information to formalize phase or project
completion

Important considerations include

• using technology to enhance information

distribution

• formal and informal methods for distributing

information

Administrative closure produces

• project archives

• formal acceptance

• lessons learned

Confrontation or problem-solving: directly face a conflict

Compromise: use a give-and-take approach

Smoothing: de-emphasize areas of differences and

emphasize areas of agreement

Forcing: the win-lose approach

Withdrawal: retreat or withdraw from an actual or potential

disagreement
Research by Karen Jehn suggests that task-related conflict
often improves team performance, but emotional conflict
often depresses team performance

It takes leadership to improve communication

Project cost management includes the processes required

to ensure that the project is completed within an approved
budget

ranged from 180 percent in 1994 to 43 percent in 2002; other

studies found overruns to be 33-34 percent

Cost estimating: developing an approximation or estimate

of the costs of the resources needed to complete a project

Cost budgeting: allocating the overall cost estimate to

individual work items to establish a baseline for measuring
performance

Cost control: controlling changes to the project budget

Profits are revenues minus expenditures

Profit margin is the ratio of profit to revenues

$2 profit per $100 revenue  2% profit margin

Life cycle costing considers the total cost of ownership, or

development plus support costs, for a project

A project could take 2 years to build and be in place for 10

years; costs and benefits must be estimated for the entire
lifetime of the project
Cash flow analysis determines the estimated annual costs
and benefits for a project and the resulting annual cash flow

Too many projects with high cash flow needs in the same
year may not be able to be supported which will impact
profitability

Tangible costs or benefits are those costs or benefits that

an organization can easily measure in dollars

A task that was allocated $150,000 but actually costs

$100,000 would have a tangible benefit of $50,000 if the
assets allocated are used for other projects

Intangible costs or benefits are costs or benefits that are

difficult to measure in monetary terms

Costs – resources used to research related areas of a

project but not billed to the project

Benefits – goodwill, prestige, general statements of

improved productivity not easily translated in dollars
  Reserves are dollars included in a cost estimate to
mitigate cost risk by allowing for future situations that
are difficult to predict

 Contingency reserves allow for future situations

that may be partially planned for (sometimes called
known unknowns) and are included in the project
cost baseline

 Recruiting and training costs for expected

personnel turnover during a project

 Management reserves allow for future situations

that are unpredictable (sometimes called unknown
unknowns)

 Extended absence of a manager; supplier goes

out of business

Cost Estimating;

ROM

 Accuracy is typically -50 percent to +100 percent,

meaning the project’s actual costs could be 50
percent below the ROM estimate or 100 percent
above.

 A ROM estimate that actually cost $100,000 would

range between $50,000 to $200,000. The accuracy
range is often much wider for IT projects.
A budgetary estimate is used to allocate money into an
organization’s budget.

 Many organizations develop budgets at least two

years into the future.

 Budgetary estimates are made one to two

years prior to project completion.

 The accuracy of budgetary estimates is typically

-10% to +25%

 A budgetary estimate that actually costs

$100,000 would range between $90,000 to
$125,000.

 A definitive estimate provides an accurate estimate of

project costs (most accurate of the three types).

 Definitive estimates are made one year or less prior to

project completion

 Accuracy range is normally -5% to +10%

 Slide no 21 cost managmnt

Five levels for project portfolio management

 Put all your projects in one database

 Prioritize the projects in your database

 Divide your projects into two or three budgets

based on type of investment
  Apply modern portfolio theory, including risk-return
tools that map project risk on a curve

 A cost management plan is a document that describes

how the organization will manage cost variance on the
project

 Analogous or top-down estimates: use the actual cost

of a previous, similar project as the basis for estimating
the cost of the current project

 Bottom-up estimates or Activity Based Costing : involve

estimating individual work items or activities and
summing them to get a project total

 Parametric modeling: uses project characteristics

(parameters) in a mathematical model to estimate
project costs

Experts predicted that by the year 2003 the worldwide IT

outsourcing market would grow to over $110 billion

U.S. federal spending on IT outsourcing is projected to

increase from $6.6 billion in 2002 to nearly $15 billion by
2007 due to an emphasis on e-government, homeland
security, and the shortage of IT workers in government
  Fixed-price or lump-sum: involve a fixed total price for a
well-defined product or service

 Cost-reimbursable: involve payment to the seller for

direct and indirect costs

 Time and material contracts: hybrid of both fixed-price

and cost-reimbursable, often used by consultants

 Unit price contracts: require the buyer to pay the seller

a predetermined amount per unit of service

Cost plus fixed fee (CPFF):

the buyer pays the seller for allowable performance

costs plus a fixed fee payment usually based on a
percentage of estimated costs

Contract value = actual costs + fixed fee

Cost plus incentive fee (CPIF):

the buyer pays the seller for allowable performance

costs plus a predetermined fee and an incentive bonus

 Contract value = actual costs ± percentage of

difference + incentive fee

Cost Plus Award Fee (CPAF)

 In a CPAF contract the seller is reimbursed for

allowable costs. The majority of the fee is only earned
based on the satisfaction of identified broad subjective
 performance criteria. The performance criteria is
defined and included in the contract and the fee
determination is based solely on the determination of
seller performance by the buyer and is usually not
subject to appeals.

 Contract value = actual costs + buyer-defined

performance fee

I. Scope of Work: Describe the work to be done to detail. Specify the hardware and
software involved and the exact nature of the work.
II. Location of Work: Describe where the work must be performed. Specify the
location of hardware and software and where the people must perform the work
III. Period of Performance: Specify when the work is expected to start and end,
working hours, number of hours that can be billed per week, where the work must
be performed, and related schedule information.
IV. Deliverables Schedule: List specific deliverables, describe them in detail, and
specify when they are due.
V. Applicable Standards: Specify any company or industry-specific standards that
are relevant to performing the work.
VI. Acceptance Criteria: Describe how the buyer organization will determine if the
work is acceptable.
VII. Special Requirements: Specify any special requirements such as hardware or
software certifications, minimum degree or experience level of personnel, travel
requirements, and so on.