University of Mumbai

Online Examination 2020

Program: BE Engineering
Curriculum Scheme: R-2016
Examination: Final Year Semester VIII
Course Code: ILO8021 Course Name: Project Management
Time: 1-hour Max. Marks: 50

1 The project takes shape during the -------------------- phase

a implementation

b planning

c initiation

d closure

A project can only be successful when there is no conflict between the …………………
2
and the local populace.

a sponsor

b workers

c manager

d management

3 Senior members of the project team must be

a politically sensitive

b active

c dynamic

d decision makers

4 Members of the project team need a strong

 a boss

b problem orientation

c manager

d leader

5 Team members need a strong

a goal orientation

b coordination

c leader

d task orientation

6 Project workers need high

a intention

b self-esteem

c goal

d attitude

7 Project Management Team must be

a intellectual

b prudent

c dynamic

d physically competent

8 It is important to maintain the momentum in

a implementation phase

b planninig phase
 c initiation phase

d closure phase

9 The Project Management Institute (PMI) was founded in

a 1889

b 1990

c 1989

d 2001

10 A secondary effect of using multidisciplinary teams to deal with complex problems is

a conflict

b tie up

c agreement

d failure

Models that are easily altered to accommodate changes in the environment or

11
managerial policy, are

a Profitability models

b Scoring models

c Numeric models

d Nonnumeric models

12 Pareto Chart helps you find:

a Minor sources creating the majority of problems

b Majority of causes creating the minority of problems

c Cause of variation

d Cause of deviation
13 Which is an example of Triple Constraint?

a Scope, Human Resource, Time

b Quality, Scope, Human Resource

c Cost, Human Resource, Time

d Scope, Cost, Time

When a firm chooses a project selection model, the following criteria, based on
14
Souder(1973), are most important.

a Realism, capability, flexibility

b b scope, cost

c c Quality,flexiblity

d d cost

15 Follwing is Numeric models

a The Sacred Cow

b Profitability

c Competitive necessity

d Product line extension

16 The payback period for a project

is the initial fixed investment in the project divided by the estimated annual net cash
a
inflows from the project.
is the discounted cash flow method determines the net present value of all cash flows
b
by discounting them by the required rate of return

c Also known as the benefit–cost ratio

the internal rate of return is the discount rate that equates the present values of the two
d
sets of flows.
You have created the project charter but could not get it approved by senior
17 management. Your manager and his boss have asked you to begin the project anyway.
Which of the following actions is the best thing to do?

a Focus on other projects that have a signed charter.

 b Start work on critical path tasks.

c Update your Project Risk Log.

d Show your manager the impact of proceeding without approval.

18 The project charter should be issued by whom?

a One or more functional managers

b The head of the performing organization

c A manager external to the project

d The CFO

19 Stakeholder identification should be performed at what point in a project?

a Only during the planning phase

b Only during project initiation

c At the end of the project

d Continuously throughout the project

20 Which of the following is not true about project charter?

a Project charter is written by the Project Manager.

b Project charter defines the purpose of the project

c Identify and authorizes the Project Manager

d Project charter is authorized by Executive Management

21 Develop project charter is part of which process group?

a Initiation

b Planning

c Executing
 d Monitoring and Control

22 What is a statement of work?

a A narrative description of the deliverables of a project

b A final bill for a project

c A project employee's timesheet

d Proof that an employee can perform the duties required by a project

Models that are easily altered to accommodate changes in the environment or

23
managerial policy, are

a Profitability models

b Scoring models

c Numeric models

d Nonnumeric models

The models designed to overcome some of the disadvantages of profitability model is

24
known as

a Scoring models

b Factoring models

c Evaluation models

d Gradation models

25 The Delphi technique was developed by the Rand Corporation in

a 1989

b 1978

c 1969

d 1990

26 In profitability models, the variation falls into general category of

 a 2 types

b 3 types

c 4 types

d 6 types

Why is payback method often considered inferior to discounted cash flow in capital
27
investment appraisal.

a It is more difficult to calculate

b It does not calculate how long it will take recoup the money invested

c It only takes into account the future income of a project.

d it does not take account of the time value of money

The amount of time required to recover the initial investment that the sponsors inject in
28
the project.

a Payback period

b Net present value

c Internal Rate of Return

d Return on Investment

29 A project would normally be undertaken if its Net Present Value (NPV) is

a Exactly the same as the NPV of the existing project

b negative

c positive

d Zero

30 Advantage of Profitability model is

Models that do not include discounting ignore the timing of the cash flows and the
a
time–value of money.

b Payback-type models ignore cash flows beyond the payback perio

 c All use readily available accounting data to determine the cash flows.

d All are sensitive to errors in the input data for the early years of the project.

31 Earliest expected time of completion for an activity is found using

a Expected time calculation

b Forward Pass method

c Backword Pass Method

d Crashing

32 Latest starting date for an activity is estimated using

a Resource leveling

b Backword Pass Method

c Forward Pass method

d Crashing

33 Select the correct statement from the following

a Slack or float of dummy activity is always equal to zero

b There is always only one critical path in the network

c A path is called a critical path if it is the longest path in a project network

d Crashing cost linearly increases with no of days crashed

34 Why does activities on critical path of a CPM network are called critical

a They represent maximum project completion time

b They cannot tolerate any delay in completion

c They consume maximum rresources

d These are most cpmplex activities on project

35 If an activity with free slack time of 2 weeks is delayed by 1 week

a the project will be delayed by 1 week.

b the slack time of all activities that follow this activity is reduced by 1 week.

c no other activity in the project is affected.

d the probability of completing the project on time decreases.

When many activities are planned to start at the same time in project schedule, the
36
project is likely to be following

a Goldratt's Critical Chain

b Concurrent Engineering

c Research and Development Project

d laddering approach

A projeect has three independent critical paths A (Having maximum no. of activities),
37 B(Using maximum rsources) and C(Having maximum crashing cost). To reduce the
project length, we have to crash

a Activities on Path A

b Activities on Path B

c Activities on Path C

d Activities on Paths A, B and C simultaneously

In PERT, if the pessimistic time were 14 weeks, the optimistic time were 8 weeks, and
38
the most likely time were 11 weeks,

a the variance would be 1 week.

b the variance would be 11 weeks.

c the expected time would be 6 weeks.

d the expected time would be 5.5 weeks.

Project Manager is looking at a document that outlines the specific tasks and subtasks
39 required to complete the writing of program for accounting system. The document is
most likely the …....
 a Responsibility matrix

b Organization breakdown structure

Th i Th o

Ch

ΔT2 Q ΔT1

Cc

Tc o Tc i

c
Work breakdown structure

d Priority matrix

40 The lowest element in the hierarchical breakdown of the WBS is

a Deliverable

b Work package

c Responsibility matrix

d Bottoms up budget

Cost accountant is forecasting how much money her department needs to support a new
project. She estimates that two people and Rs.2.5 lakhs in expenses will cover her
41
needs. Since usually management insists on reducing forecasts by 20 percent, she
increases her estimates to allow for that reduction. This is example of..

a Padding of estimates

b Planning horizon

c People behaviour

d Organization culture

42 Which of the following is a good condition for top-down estimating?

a Tight Cost and time deadlines

b Internal, small project

c Fixed price contract

d Customer wants details of estimates

43 Information to develop a project network is collected from the

a Work breakdown structure

 b Budget

c Project proposal

d Responsibility matrix

44 Part of a project is to 'Develop Product Specifications'. This is best classified as a(an)

a Event

b Path

c Activity

d Milestone

A critical path of a projeect has four independent activities A(5,1.666), B(15,1.666),

45 D(4,0.444) and E(5,0). The bracketed terms are (expected time, standard deviation) The
expected duration of critical path is …... and variance of critical path is …....

a 29 , 2.39

b 29 , 5.75

c 29 , 3.77

d 24 , 3.77

A project has following activities with their duration in brackets. 1-2(6), 1-3(5), 3-4(5),
46
2-4(5), 2-5(8) and 4-5(2). What is the duration of the project?

a 12

b 16

c 14

d 13

A critical path of a projeect has three independent activities A(5,1), B(3,1) and D(4,2).
47 The bracketed terms are (expected time, standard deviation) The expected duration of
critical path is …... and probability of completing it in that duration is….

a 12, 50%

b 12, 98%
 c 8, 50%

d 9, 98%

An activity considered for PERT scheduling has estimated durations as, optimistic 5
48 days, pessimistic 10 days, and most likely 6 days. What is the expected time duration
for this activity?

a 6.5 days

b 9 days

c 8.5 days

d 5.5 days

An activity on the CPM network has Early start on 8th day, Early Finish is 14th day,
49 Late start is 10th day and Late finish is 16th day. What is the float available for this
activity?

a 6 days

b 8 days

c 1 day

d 2 days

The project has critical path duration of 21 weeks and the variance of critical path is
50 3.44. What is completion time corresponding to 98% probability if Z value is 2.06 for
98% probability?

a 21 weeks

b 25 weeks

c 28 weeks

d 20 weeks

51 The percentage of likelihood of every risk is -

a 100%

b 75%

c 50%
 d 25%

52 Risk management is responsibility of the -

a Customer

b Investor

c Developer

d Project team

53 Which of the following technique will ensure that impact of risk will be less?

a Risk avoidance technique

b Risk Mitigation technique

c Risk contingency technique

d Risk monotoring technique

54 What is associated with product risk?

a Control of test item

b Negative consequences

c non-availability of test environment

d Test object

55 What is risk?

a Negative consequence that could occur

b Negative consequence that will occur

c Negative consequence that must occur

d Negative consequence that shall occur

56 A document you use to capture all known risks is called

 a Risk Log

b Risk Register

c Risk List

d Risk Diary

A process that involves prioritizing risks for further action or analysis by assessing the
57
impact and the probability of occurrence is called-

a Qualitative Risk Analysis

b Risk Brainstorming

c Quantitative Risk Analysis

d Risk Retrospective

58 When do you perform Risk Identification?

a At the beginning of a project.

b During project planning.

c During the whole lifetime of a project.

d During project execution.

59 What is the correct option in which terms the Risk is expressed ?

a probability and impact.

b
probability and cost

c probability and time

d probability and data

What assess the risk and your plans for risk mitigation and revise these when you learn
60
more about the risk?

a Risk monitoring

b Risk planning
 c Risk analysis

d Risk identification

61 Risk should be analysed and evalauted considering the

a Likelihood and cost

b Likelihood and Level of impact

c Likelihood and time

d Likelihood and data

62 Which method is not used for Qualitative risk analysis ?

a delphi method

b SWIFT analysis

c Decision Tree Analysis

d Backtracking method

63 Which method is not used for Quantitative risk analysis ?

a Three point estimation

b Decision Tree Analysis

c SWIFT analysis

d Expected Monetery Value(EMV)

64 A risk is known as Positive risk or opportunity if-

a Impact is positive which you may want to actualize

b Impact is negative which you want to lesson its impact

c Impact is positive which you want to lesson its impact

d Impact is negative which you may want to actualize

65 Strategy to deal with negative risk are-

a Escalate, mitigate, transfer, avoid, accept

b costing

c listing

d exploit

66 Of the following baselines which is not a part of the Project Management Plan ?

a Scope Baseline

b Quality Baseline

c Cost Baseline

d Schedule Baseline

67 A project is overbudget when

a CPI > 1

b SPI > 1

c CPI and SPI > 1

d CPI less than 1

You are the project manager and have decided to outsource a part of the project to a
69 vendor. You have offered a bonus to the vendor if the work is completed in two months.
This is an example of _____________.

a project incentive

b project goal

c fixed price contract

d Time and Material

You are responsible for a project with high risks particularly during the early phases -
your sponsor has asked for performance reports on a monthly basis. At the end of the
70
first month you report a CPI greater than 1 and also the SPI greater than 1. What would
this mean ?
 a The project is behind schedule and over budget

b The project is ahead of schedule and under budget

c The project is ahead of schedule but over budget

d The project is behind schedule but under budget

As a part of the Executive Management team - you have a number of project managers
reporting into you. One of the project managers has reported data for her project that has
got you worried regarding health of the project. EV = 300000 USD , PV = 550000 USD
71
, AC = 200000 USD You are worried since as per your calculations the project is behind
schedule. However the Project Manager disagrees and she feels the project is ahead of
schedule - what is the correct interpretation of the data ?

a Both are incorrect - the health of the project cannot be determined from this information

b Both are correct as interpretation is very subjective

c You are correct - the project is behind schedule

d Your Project Manager is correct - the project is ahead of schedule

As a manager on a project you have identified and created the WBS and WBS
72 Dictionary.You also plan to ensure that each deliverable gets the blessings of your
stakeholders and sponsors.Which process are you planning to perform?

a Scope Verification

b Perform Quality Control

c Control Scope

d Define Scope

If the planned value (PV) is $275,000 and the earned value (EV) is $300,000, the
73
schedule variance (SV) is:

a 25,000 USD

b Negative 25000 USD

c 125,000 USD

d 575,000 USD
 You have been given 100,000 USD to complete the project. 60,000 USD has been
74 spent, though as per the schedule, 55,000 USD should have been spent to complete the
same work. What is the Budget at Completion (BAC)?

a 55,000 USD

b 100,000 USD

c 60,000 USD

d 105,000 USD

You have been given 100,000 USD to complete the project. 60,000 USD has been
75 spent, though as per the schedule, 55,000 USD should have been spent to complete the
same work. What is the Actual Cost (AC)?

a 55,000 USD

b 100,000 USD

c 60,000 USD

d 105,000 USD

You have been given 100,000 USD to complete the project. 60,000 USD has been
76 spent, though as per the schedule, 55,000 USD should have been spent to complete the
same work. What is the Planned Value (PV)?

a 55,000 USD

b 100,000 USD

c 60,000 USD

d 105,000 USD

You are in charge of a project and to ensure things go well - you have had monthly
meetings with the stakeholders.The project is running on schedule and budget.You are
in your fourth month of execution - but the stakeholder indicates dissatisfaction with the
77
deliverables.To make changes in the deliverables would mean a delay in the
schedule.What would have been the most important process that could have prevented
this situation?

a Scope Planning

b Scope Control

c Schedule Control
 d Risk Monitoring and Control

The project that you are in charge has been successfully completed.The last of the
deliverables have been formally accepted by the client.You had several contractors with
78
whom contracts were prepared.With the project done you decide to communicate the
completion details and closure of contracts.Which is the best form of communication?

a Formal written

b Formal verbal

c Informal verbal

d Informal written

You are in charge of a software project and you are almost 40% complete.The project
stakeholders want a performance report to date.You had planned to use Earned Value
Management methodology.You come up with the following numbers: EV = 100 AC =
79 300 PV = 150 BAC = 600 You and your team have faced numerous issues till now .
However you choose to ignore the current work performance and decide to go with
what was originally planned. Based on this information what would be the EAC for the
project ?

a 800

b 200

c 600

d 1800

As a manager on a project your key outlook is to ensure that the project delivers within
the scheduled timelines with minimal rework and customer delight.For some time now
the project work is proceeding smoothly with a CPI and SPI a perfect 1.One of your
team members approaches you and indicates that she might possibly need a long
vacation on personal grounds.She indicates this could possibly occur in two months
80
from now.You look up the schedule and as luck would have it - this team member
happens to be scheduled to execute activities which are on the critical path - and her
absence in two months time would cause a delay in schedule.You decide to take some
action and reschedule task allocation to ensure that this team member is not planned to
work on any of the critical path activities.What did you just do ?

a Mitigate the risk

b Avoid the risk

c Transfer the risk

d Exploit the risk

 You are in charge of building a shopping portal.You are fairly confident as you have a
team experienced in doing such work.As per the agreement at the end of the first month
you organize a demonstration of the software.You invite the sponsor and key
81 stakeholders.Later the sponsor informs you that she is not very happy with the progress
indicating that one of the clients who would be using this software is not satisfied as her
needs are not being met.To satisfy this client's needs would mean some radical changes
with an impact to both cost and schedule.What could be the root cause of this issue?

a Deliverables were not as per requirement

b The stakeholder is making unrealistic demands

c The scope statement was ambiguous leading to this

d All the stakeholders were not identified

You are in your third month of project execution which is expected to continue for a
duration of 14 calendar months. Your sponsor has asked for a performance report. You
82 decide to create a S curve. Based on the S curve you report your Actual Cost which is
more than the Earned Value.Also the Planned Value is greater than the Earned Value.
What would be the interpretation of this data ?

a The project is over budget and behind schedule

b The project is on schedule and on budget

c The project is over budget but on schedule

d The project is on budget but behind schedule

Your company has been tasked with providing estimates for a road construction project.
You have data available related to costs per square feet. You now need to provide an
83
estimate of the cost of the project based on this data - what estimation technique is most
applicable in such a scenario ?

a Top Down estimates

b Parametric Estimating technique

c Bottom Up Estimating

d Analogous Estimation

You have successfully completed a project.You have now been assigned a project
which is midway into its execution.You have had to take this project due to non
availability of the current project manager due to health.This is a complex project
84
involving multiple contractors and teams at various geographical locations.You decide
to look up the requirements of the types of reports and frequency of sending
them.Where would you find this information?
 a Project Management Plan

b Scope Management Plan

c Communication Management Plan

d Stakeholder Analysis

Midway through the project as a Manager you are performing Earned Value
Methodology to report performance. Based on your calculations you realize that the
85
initial plan is no longer valid.However you still need to provide an EAC - what is the
best course of action ?

a Calculate EAC as EAC = BAC / CPI

b Calculate EAC as EAC = AC + BAC - EV

c Calculate EAC as EAC = AC + (BAC - EV/(CPI * SPI )

d Calculate EAC as EAC = AC + Bottom up Estimate

86 Which of the following statement is true regarding Procurement Documents

a These are the response documents provided by Seller to the Buyer.

b It is the formal agreed contract between the buyer and seller

It is used to solicit proposals from sellers and contains details of expected services or
c
work to be done
Describes how product or services will be acquired externally and type of contract to be
d
administered

87 Professional ethics is to followed only in

a at Work place

b at home

c in service

d at work, in home and in service

88 Professional ethics will come to rescue when we are

a ask to compromise on our integrity or on value

 b ask to compromise on our technical cability

c ask to compromise on our technical capacity

d ask to compromise in our efforts

89 Most important 4 values identified by PMI are responsibility, respect, fairness, and

a sincere

b dishonesty

c Honesty

d workoholic

90 Which conduct is subject to disciplinary action

a Aspirational conduct

b Mandatory conduct

c Organisational conduct

d Personal conduct

As practitioner we make decision and take action based on the best interests of society,
91
public safety, and

a Self

b Family

c Organisation

d environment

We should accept only those assignments that are consistent with our background,
92
experience, skills, and

a qualification

b exposure

c familiarity
 d knowledge

93 When we make errors or ommision

a we take ownership and make no correction

b we take ownership and make necessary correction

c we do not take ownership and make necessary correction

d we do not take ownership and make no necessary correction

94 We listen to others point of view, seeking to understand them is

a Respect

b Responsibility

c Conduct

d Fairness

95 When our conduct is free from self interest , prejudice, and favaritism is

a Respect

b Responsibility

c Conduct

d Fairness

96 PMI followed processes laid by ______ in formulating ethics

a ACM

b ANSI

c IEEE

d IETE