1. What are two potential consequences of a project manager failing to properly initiate a project?
- Stakeholders might not agree on what success looks like.
- Resources can be underestimated.
- New dependencies can arise.
- External risks can affect project success.
Explanation: In the first place, a lack of proper project commencement might result in goals and objectives that are not defined. It is possible that members of the team may wind up working on tasks that are not in line with the main aim of the project if they do not have a clear knowledge of what needs to be accomplished. This will result in the waste of both time and resources.
The second factor that might lead to a lack of involvement and support from stakeholders is poorly executed project start. There is a possibility that stakeholders would have a sense of disconnection from the project and its objectives if they are not adequately identified and included from the very beginning. The absence of sufficient resources and support, which eventually results in the failure of the project, may be caused by this.
2. Fill in the blank: A cost-benefit analysis weighs the potential value of a project against money, resources, and _____ required.
- policies
- expectations
- competitors
- time
Explanation: A cost-benefit analysis is a method of evaluating a project by comparing its potential worth to the amount of money, resources, and risks that are necessary.
3. Fill in the blank: _____ are the first thing a project manager needs to consider during the initiation phase.
- Goals
- Resources
- Planning
- Success criteria
Explanation: During the start phase of a project, the first thing that a project manager has to think about is the goals and objectives of the project. On the project plan, it's the same as deciding where the destination will be!
4. Imagine you’re the project manager of a new grocery delivery service. You meet with the owners to discuss what outcomes they’d like to ultimately achieve with the project. Which project initiation component are you trying to determine?
- Goals
- Budget
- Scope
- Resources
Explanation: Within the context of this situation, I would be attempting to ascertain the aims and goals of the project. In order to assist define the course for the whole project, it is helpful to have an understanding of what the owners eventually intend to accomplish with the retail grocery delivery business.
5. Imagine that the main supplier for a construction project runs out of steel girders and needs to obtain more to complete the order. Which key component of project initiation does this scenario concern?
- Scope
- Resources
- Deliverables
- Goals
Explanation: Regarding the availability of resources for the project, this circumstance is relevant. When it comes to a building project, the availability of important materials, such as steel girders, is absolutely necessary for the beginning of the project. If a major supplier runs out of supplies, it may have an effect on the timing and delivery of the project. This will need the project manager to reevaluate the situation and maybe come up with other alternatives.
6. A project charter adds value to projects in what three ways?
- Includes a plan to mitigate potential risks
- Allows project managers to get organized
- Sets up a framework for what project work the team needs to do
- Helps project managers communicate project details to others
7. When calculating a cost-benefit analysis for a project, what do you call gains that are not quantifiable?
- Yearly profits
- Ongoing costs
- Quarterly income
- Intangible benefits
Explanation: In the context of a cost-benefit analysis, the term "intangible benefits" is often used to refer to advantageous outcomes that are difficult to quantify. The absence of a clear and quantifiable financial worth makes it difficult to convey these advantages in monetary terms. This is because they are not directly measurable. There are many examples of intangible advantages that may be gained from a project. Some examples include a better brand reputation, higher customer satisfaction, and increased workforce morale. While it may be difficult to quantify these advantages in terms of dollars and cents, it is important to note that they nonetheless make a major contribution to the overall performance and value of the project.
8. You expect that a project will bring in $25,000 USD in revenue per year. You estimate it will cost $12,000 up front. You also estimate costs of $200 per month for the first 12 months, which equals $2,400 per year. Using the formula (G-C) ÷ C = ROI, how would you calculate the project’s return on investment (ROI) after the first 12 months?
- (25,000 – 14,400) ÷ 12,000 = 88%
- (25,000 – 12,000) ÷ 14,400 = 90%
- (25,000 – 12,000) ÷ 12,000 = 108%
- (25,000 – 14,400) ÷ 14,400 = 74%
9. Why is it important to initiate a project? Select all that apply.
- Determine if the project’s benefits outweigh the costs
- Solidify the scope of a project
- Help the project manager establish a good reputation
- Provide a strong foundation and set the stage for success
10. What two questions can a project manager ask to determine a project’s costs?
- What are the ongoing project costs?
- How much time will people have to spend on the project?
- What value will the project create?
- How will the user experience be improved?
11. Imagine you’re the project manager of a new grocery delivery service. You meet with stakeholders to decide how to measure project success. Which project initiation component are you trying to determine?
- Goals
- Resources
- Success criteria
- Scope
Explanation: Within the context of this situation, I would be attempting to ascertain the success criteria or goals of the project. At the beginning of the project, one of the most important things to do is to determine how success will be measured. When we align ourselves with the stakeholders to develop clear and quantifiable criteria, such as on-time delivery, customer happiness, or cost efficiency, we provide the groundwork for assessing the overall success of the project after it has been completed.
12. Imagine that a university hires a construction company to build a new library. Before starting, the project manager outlines the building materials the project needs. They also outline the roles and amount of workers to hire. Which key component of project initiation does this scenario concern?
- Deliverables
- Resources
- Success criteria
- Scope
Explanation: This scenario pertains to the process of initiating the project, which is referred to as "Project Scope." As part of the process of establishing the scope of the project, the project manager is now specifying the construction materials, positions, and the number of personnel that are required. It is the responsibility of the project manager to establish the parameters and expectations for the building of the new library by defining what aspects of the project are included and what aspects are avoided.
13. What is the purpose of a project charter?
- Determines project roles and assign associated tasks
- Establishes communication channels and record preferred methods
- Defines the project and its goals and outline what is needed to accomplish them
- Outlines how to mitigate potential risks
14. Fill in the blank: _____ are gains that are not quantifiable.
- Ongoing costs
- Quarterly income
- Intangible benefits
- Yearly profits
15. You expect that a project will bring in $12,000 USD in revenue per year. You estimate it will cost $5,000 up front. You also estimate costs of $50 per month for the first 12 months, which equals $600 per year. Using the formula (G-C) ÷ C = ROI, how would you calculate the project’s return on investment (ROI) after the first 12 months?
- (5,600 – 5,000) ÷ 12,000 = 5%
- (12,000 – 5,600) ÷ 5,000 = 128%
- (12,000 – 5,600) ÷ 5,600 = 114%
- (12,000 – 5,000) ÷ 5,000 = 140%
16. Why is it important to perform a cost-benefit analysis during the initiation phase? Select all that apply.
- To compare the project benefits to the costs
- To add up the expected value, or benefits, of a project
- To outline project goals and how to accomplish them
- To set up a framework for what project work the team needs to do
17. Fill in the blank: A _____ is a document that defines project goals and outlines what is needed to accomplish them.
- project charter
- risk analysis
- cost-benefit analysis
- project schedule
Explanation: An explanation of the requirements that must be met in order to achieve the project's objectives is included in a document known as a project charter.
18. Which of the following could be considered intangible benefits? Select all that apply.
- Employee satisfaction
- Income earned
- Customer satisfaction
- Brand perception
19. Fill in the blank: Project initiation includes determining resources, documenting key components, and _____.
- solidifying scope
- onboarding the team
- finalizing budgets
- establishing a schedule
Explanation: During the beginning stages of a project, it is necessary to identify the resources available, record the essential components, and define the general framework or baseline for the project. In order to do this, the project's scope, goals, stakeholders, and initial plans must be defined. These plans will serve to direct the project over its entire lifespan.
20. What are the key components of project initiation?
- Goals, scope, planning, documentation, success criteria, and resources
- Goals, scope, deliverables, success criteria, stakeholders, and resources
- Findings, scope, deliverables, monitoring progress, stakeholders, and resources
- Findings, scope, planning, deliverables, success criteria, and resources
21. Imagine you’re the project manager of a new grocery delivery service. You meet with stakeholders to set an overarching framework of what is and is not included in the project statement of work and deliverables. Which project initiation component are you trying to determine?
- Success criteria
- Project charter
- Resources
- Scope
Explanation: In this particular instance, I would be attempting to ascertain the scope of the project. During the start phase of the project, one of the most important aspects of defining the project scope is holding a meeting with the stakeholders to establish an overall framework and determine what is and is not included in the project's statement of work and deliverables. The grocery delivery service project benefits from this since it helps define clear limits and expectations for the organization.
22. What term refers to the budget, people, materials, and other items necessary to complete a project?
- Resources
- Scope
- Success criteria
- Deliverables
Explanation: The money, the people, the materials, and any other things that are required to finish a project are all referred to as "resources." In the context of project management, the term "resources" refers to all of the components that are necessary for the effective completion of a project. These components include financial resources, human resources, various materials, and various pieces of equipment.