GE---5103-5D2-SP-2022 - Project Management

 week1
Chapter 1 Test

1.A project is a time-bound effort constrained by performance specifications, resources, and budget to create a unique product or service.

a. True  b. False

2.Operations consist of the ongoing work needed to ensure that an organization continues to function effectively.  a. True  b. False

3.A project manager needs to be concerned with achieving desired scope and quality (often called performance), subject to constraints of time and cost.  a. True  b. False

4.Many different project life cycle models are used for different types of projects, such as information systems, improvement, research and development, and construction.  a. True  b. False

5.Generally,the pace of work and amount of money spent remains consistent from one life cycle stage to another.

a. True  b. False

6.The name and number of phases in a project life cycle are determined by the organization(s) involved in the project.

a. True  b. False

7.Communications Management, one of the ten PMBOK Guide Knowledge Areas, entails the processes to identify the people, groups, or organizations, that could impact or be impacted by the project, analyze their expectations and impact, and develop strategies for engaging them in project decisions and execution.

a. True  b. False

 

 

 

8.The only critical measures of project success are completing the project on schedule and on budget.

a. True  b. False

9.In agile projects, the customer representative role is passive, and their involvement is typically limited to the early stages of the project.

a. True  b. False

11.Which of the following examples is NOT a typical or appropriate situation to employ project management?

a. processing deposits and withdrawals in a bank

b. installing a new accounting application on a server

c. improving a soldering process in an assembly line

d. developing a new medical device for use by clinics

10.The Project Management Office (PMO) is comprised of the top leader in the organization (CEO or other officer) and his or her direct reports.

a. True  b. False

12.In an adaptive or change - driven project life cycle:

a. the waterfall approach is commonly used.

b. early results lead into planning later work.

c. all planning precedes all executing.

d. the product is well understood.

13.Which of the following statements correctly describes project management?

a. Project management only relies upon checklists to plan and execute the work.

b. Project management uses knowledge, skills, tools and techniques to meet stakeholder needs and expectations

c. Project management's goal is to maintain efficiency of ongoing operations.

d. Project management should not involve tradeoffs between scope, schedule and cost.

 

 

 

14.Which of the following statements regarding project life cycles is most accurate?

a. All research and development projects use the same four-stage project life cycle model.

b. Many different project life cycle models are used for different types of projects.

c. Project life cycles are very similar regardless of the industry.

d. The project life cycle is the same for the diverse types of projects managed by an organization.

15.Which of the ten knowledge areas defined in the Project Management Body of Knowledge includes the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully?

a. Communications management

b. Scope management

c. Quality management

d. Stakeholder management

16.Achieving project success is determined by all of the following EXCEPT:

a. completing the project on schedule and on budget

b. creating deliverables that include all required features

c. providing outputs that please the project's customers

d. involving only important key stakeholders

17.Projects are considered successful for all of the reasons below EXCEPT:

a. the team has used heroics to meet project objectives

b. the performing organization reaps business-level benefits.

c. organizational learning takes place and is captured for future projects

d. members of the team learn new skills and/or refine existing skill

18.Project failure can result from all of the following causes EXCEPT:

a. incomplete or unclear requirements

b. unrealistic time demands

c. inadequate planning

d. adequate support from executive management

19.A project manager in agile projects who serves and leads in a collaborative, facilitating manner is called a:

a. program manager

b. scrum master

c. functional manager

d. sponsor

 

20.From an agile project management perspective, which of these constraints are considered to be fixed?

a. Scope and time

b. Customer satisfaction

c. Resources and schedule

d. Quality and value

 

Chapter 3 Test - 1.The project charter serves as a formal legal contract between the project team and the project sponsor.  a. True  b. False 2.In contrast to a legal contract, the parties to a signed project charter feel obligated to the spirit (as opposed to the letter) of the charter since the project details have not yet been worked out and the specifics will certainly change.  a. True  b. False 3.A charter can be used to quickly screen out obviously poor projects.  a. True  b. False 4.A project charter can vary in its length from one-page to multiple pages, depending on the size and complexity of the project.  a. True  b. False 5.A well-written business case should persuade decision-makers to support the project and inspire the project team members and key stakeholders to work hard towards successful completion of the project.  a. True  b. Fals 6.The project business case provides a high-level description of what the project will accomplish and how it will be done.  a. True  b. False 7.The project master network is a high-level plan that indicates a few significant accomplishments that are anticipated over the life of the project.  a. True  b. False 8.A key concept in agile projects is that something of value will be delivered at each iteration.  a. True  b. False 9.Risks, assumptions and constraints are included in the project charter so that key participants will be aware of what could prevent them from successfully completing the project.  a. True  b. False 10.During project charter creation there is typically a very general understanding of the project, so any budget included is approximate and should be called a preliminary budget with a corresponding confidence level for this estimate.  a. True  b. False 11.The project charter grants the project team the right to: a. create a detailed project plan b. develop the project mission statement c. write a detailed business case d. begin project execution 12.The project charter serves all of the following purposes EXCEPT: a. helps develop a common understanding between the project manager, sponsor and assigned team members b. authorizes the project manager to proceed c. describes skill sets needed for the project d. quickly screens out obviously poor projects 13.During iteration planning in an agile project, agreement is reached regarding: a. the definition of done. b. the length of the next sprint. c. positive and negative risks. d. detailed stakeholder requirements. 14.Which of the following charter elements defines the project purpose and justifies the necessity of the project? a. scope control plan b. business case c. acceptance criteria d. scope overview   15.The milestone schedule in the project charter: a. is a detailed schedule that shows the planned duration for every activity in the project. b. is a schedule that provides detailed data for when each project activity should begin. c. is a high-level plan that indicates a few significant accomplishments anticipated over the life of the project. d. is a summary-level schedule that shows how major project tasks are sequenced 16.Project charters typically include all of the following elements EXCEPT: a. project assumptions b. detailed resource requirements c. negative and positive risks d. project constraints 17.Team operating principles are sometimes included in a project charter to enhance team performance. Which of the following statements accurately describes the value of establishing team operating principles? a. Operating principles increase team effectiveness and ensure that all parties are aware of what is expected. b. Operating principles describe the specific work each team member will perform. c. Operating principles identify the rules along with the punishments to be administered when the rules are broken. d. Operating principles are especially helpful for a routine project where participants have worked together before. 18.A project sponsor is wise not to sign a project charter authorizing work until the project manager and team show that they have ____: a. prepared a comprehensive schedule and budget. b. learned to work together well. c. reviewed lessons learned from recently completed projects in order to avoid similar mistakes. d. gathered requirements from key stakeholders. 19.Which of the following statements accurately describes the responsibilities typically associated with the development of the project charter? a. the project sponsor typically prepares the detailed first draft of the charter. b. more often than not, the project manager writes the draft project charter. c. the project manager typically prepares the business case and scope overview.   20.On agile projects the first iteration is planned as a milestone with acceptance criteria. However, subsequent milestones and acceptance criteria are determined on a ___: a. need-to-know basis b. just in time (JIT) basis c. first come first served basis d. first in first out (FIFO) basis   Chapter 2 Assignment -     1.The first part of setting strategic direction for an organization is to analyze the external and internal environments by preparing a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis. Once the SWOT is complete, the next step is to create a clear and compelling statement describing the inspirational long-term desired change resulting from an organization's work, called a __________. a. Mission Statement b. Vision Statement c. Triple Bottom Line Statement d. Business Case 2.All of these would typically be included in a mission statement EXCEPT: a. Organization's core values b. Organization's beliefs c. Organization's financial goals d. Organization's customers 3.In the Build Green Home example of a SWOT analysis, factors including existing thinking on green building and its niche focus, building schedule, and community (location) rumors are all examples of __________. a. Strengths b. Weaknesses c. Opportunities d. Threats 4.The most widely accepted financial model for selecting projects is _________: a. Internal Rate of Return (IRR) b. Net Present Value (NPV) c. Payback Period (PP) d. Benefit-Cost Ratio (BCR) 5.Which of these is NOT a disadvantage of using a financial model for project evaluation and selection? a. Payback period (PP) models do not consider the amount of profit that may be generated after the costs are paid. b. BCR (Benefit Cost Ratio) does not account for intangible benefits and costs that cannot be determined in financial terms. c. Internal Rate of Return (IRR) can favor smaller projects that create less total value for the firm but have high percentage returns. d. Use of financial models ensures that selected projects make sense from a cost and return on investment perspectiv 6.All of these are advantages of using a scoring model for selecting projects EXCEPT: a. Scoring models are useful whenever there are multiple projects and several criteria to be considered. b. Scoring models help ensure alignment with the organization's strategic goals. c. By comparing expected project costs to expected benefits, scoring models can be used to make project investment decisions. d. Scoring models can define mandatory decision criteria for project selection. 7.Which of these is NOT an example of types of projects that the organization might include in their portfolio of projects? a. High-and low-risk projects b. Short and long-term projects c. Projects with positive and negative net present value (NPV) d. Projects to create new products and projects to incrementally improve existing products 8.Who should be involved in identifying potential projects? a. Executives b. Program Managers c. Functional Managers d. Employees at all Levels 9.Examples of these types of project selection criteria include government regulations and clear safety or security situations. a. Probability of success b. Expected return on investment c. Mandatory criteria d. Project fit with organizational objectives 10.In a project scoring model, each decision criterion is given a __________. a. Relative weight b. Relative cost c. Relative benefit d. Statement of work 11.The benefit of performing a sensitivity analysis while using a scoring model to choose projects is: a. It examines at all project risk factors / variables at once. b. It identifies the opportunity costs associated with the project. c. It shows the urgency of different project priorities. d. It allows management to examine what would happen to a decision if factors were to change 12.If several projects have close scores as the result of a scoring model, what can be done to break the virtual tie? a. Perform a sensitivity analysis to examine what would happen to the decision if factors changed b. Use a cost-benefit model to select projects c. Use a SWOT analysis to select projects d. Prepare a business cas 13.Contractor companies might perform a quick SWOT analysis prior to bidding on a potential project, including all of the considerations below EXCEPT: a. How well the potential project meets contractor objectives b. Risks of pursuing vs. not pursuing the project c. Weighted score for the project d. The contractor's capability to perform the work if awarded 14.Source selection criteria for selecting a contractor might include: production capacity, business size and type, past performance, and references. These are all examples of typical criteria within which category? a. Financial b. Operational c. Technical d. Management 15.Which of these would NOT be one of the things that may be negotiated between a client company and a contractor company? a. Schedule b. Quality standards c. Personnel to be assigned to the project d. Source selection criteria   Chapter 3 Assignment 1.What is the definition of a project charter? a. A short document that grants the project team the right to continue into the more detailed planning stages of the project. b. The project purpose or justification statement, that answers the question "why" and helps all parties understand the purpose of the project. c. A high-level description of what needs to be accomplished and how it will be done. d. A document that sets forth the "attributes that need to be present in order to satisfy a contract, client or other stakeholder." 2.All of the statements below accurately describe what an effective project charter should accomplish, EXCEPT: a. Helps the project manager, sponsor, and team members develop a common understanding. b. Authorizes the project manager to proceed. c. Provides the detailed project scope, schedule and budget to be completed by the team. d. Quickly screens out obviously poor projects. 3.A project charter is similar to a contract in many ways, but there are some differences between the two documents. How are project charters different from contracts? a. One party cannot arbitrarily change a contract, whereas the project sponsor does have the authority to change the charter. b. Contracts and project charters are entered into freely. c. In both a project charter and a contract there is something of value for both parties. d. Both the charter and contract are living documents that can evolve with changing conditions. 4.The right length for a typical project charter is generally _________. a. 1 to 2 pages b. 1 to 4 pages c. 5 to 8 pages d. 8 to 10 pages 5.The signing of the project charter marks the transition between which two phases of the project life cycle? a. Selecting and Initiating b. Initiating and Planning c. Planning and Executing d. Executing and Closing 6.The rough draft of the project charter is typically written by _______. a. The team. b. The project manager. c. The project sponsor. d. The key stakeholders. 7.This element of the project charter can be considered to define the project boundaries – it states what is included and what is not included, at a fairly high level. a. Business case b. Background c. Scope Overview d. Milestone Schedule with Acceptance Criteria 8.This is defined as an incremental increase in the work of a project without corresponding adjustments to resources, budget or schedule. a. Project scope b. Product scope c. Risk trigger d. Scope creep 9.Adding a background section to a project charter would be helpful in what way? a. The background statement is the project purpose or justification, and answers the question "why"? b. The background statement represents the knowledge acquired by the project team throughout the project planning and execution. c. The background statement provides more detail to understand the rationale and purpose behind the Scope Overview and the Business Case statements. d. The background statement establishes what project team operating principles they will use. 10.Tracy is working with the project sponsor to create the project charter for a small to medium sized project. In the Milestone Schedule with Acceptance Criteria section of the project charter, how many intermediate milestones should she and the team include? a. One or two b. Three or four c. Three to Eight d. Ten to Twenty 11.All but one of these is a type of resource that might be included in the Resources Needed section of the charter. Which type of resource would typically NOT be included? a. Money b. Office Supplies c. People d. Space 12.Which of these is NOT one of the three reasons that project managers and teams should look at risk when creating the project charter? a. A positive risk is an opportunity to complete the project better faster, and/or at a lower cost or to capitalize upon the project in additional ways. b. Sometimes there is more risk to the organization if the project is not undertaken. c. It is important for the project manager and team to identify all risks to the project during the creation of the charter. d. Any negative risk that is a threat that may inhibit successful project comple 13.What are the four columns in a milestone schedule? a. Milestone, Money, People, Space b. Milestone, Stakeholder, Priority, Interest in Project c. Milestone, Completion Date, Stakeholder Judge, Acceptance Criteria d. Milestone, Risk Event, Risk Owner, Risk Response Plan 14.With whom may the project manager and team need to negotiate when creating the charter? a. Sponsor b. Leadership Team c. Core Team d. Functional Manager 15.In the Scheduling Options section under the Schedule file tab, changing the "new tasks created" option to _____________ will cause the program to calculate the projects' running schedule based on task start and finish dates. a. Manually scheduled b. Auto Scheduled c. Timeline View d. View Shortcuts Week 2 Chapter 5 Test  1.The ideal time to on-board core team members is when the project charter is being written.  a. True  b. False 2.All project teams progress uniformly through five stages of team development.  a. True  b. False 3.Synergy results in a team having a collective capability that exceeds the sum of individual capabilities.  a. True  b. False 4.The "relationship" topics within team ground rules, such as "discuss openly and protect confidentiality" and "avoid misunderstandings", should eliminate the need for the team to address how to handle conflict.  a. True  b. False 5.A project manager understands the importance of understanding individual motives, and takes the time to ask each team member what he or she personally wants from being involved in the project.  a. True  b. False 6.A project manager's referent power is described as persuading others based upon giving them something.  a. True  b. False 7.The adoption of specific ground rules that specify acceptable behaviors by project team members can improve working relationships, effectiveness, and communication.  a. True  b. False 8.When a project team member is not performing, rewards may not prove as effective as a coercive approach that threatens the team member with undesired consequences.  a. True  b. False 9.Conflict over ideas on how to proceed with a project can lead to more creative approaches.  a. True  b. False 10.The negotiation process involves several steps such as: preparing for negotiation; knowing your walk-away point; and working towards a common goal.  a. True  b. False 11.It is argued that project teams progress through five stages of team development. Which of the following sequences best represents this progression? a. forming, storming, norming, performing, reforming b. forming, storming, norming, performing, adjourning c. forming, norming, storming, performing, reforming d. forming, performing, reforming, norming, adjourning 12.During which stage of team development do team members attempt to jockey for power, ask many questions and establish dubious goals? a. performing b. norming c. forming d. storming 13.Agile teams require motivated members with a higher level of commitment, and agile teams have all of the following desirable traits EXCEPT: a. Deliver value b. Question everything c. Argue about everything d. Fail their way to success 14.Which two project team success factors have shown the strongest correlation to successful project performance as perceived by senior managers? a. Clearly defined project and team objectives, and use of task and relationship behaviors to resolve conflicts b. Stimulating work environment and opportunity for team and individual recognition c. Mutual trust, respect, and credibility and cross-functional cooperation d. Clear project plans created by the team, and effective communications   15.All of the following are among the methods project managers can use to develop individual and team capabilities EXCEPT: a. demonstrate personal leadership b. demand situational leadership c. teach personal responsibility d. utilize coercive powers 16.All of the following represent common methods for making decisions on contemporary project teams EXCEPT: a. The project manager or sponsor makes the decision. b. The project team votes to make the decision. c. The steering team reviews the project data and makes the decision. d. One or two team members recommend or make the decision.   17.Frequently, project managers lack legitimate power based upon position and instead resort to persuading others based upon personal relationships. This type of power is known as: a. referent power b. positional power c. coercive power d. connection power 118.Which of the following styles of handling conflict is most appropriate whenever there is enough time, trust can be established, the issue is important to both sides and buy-in is needed? a. forcing / competing b. compromising c. smoothing / accommodating d. collaborating / problem solving 19.Which of these is NOT among the common task-related sources of project conflict? a. personalities b. technical approach c. schedule d. priorities         20.All of the following are among the steps of the negotiation process EXCEPT: a. use "good cop / bad cop" technique b. clarify both parties' interests c. work toward a common goal d. clarify and confirm agreements   Chapter 6 Test - 1.A project manager must use effective communications to set and manage expectations of all stakeholders as well as to ensure that project work is completed properly and on time.  a. True  b. False 2.A stakeholder is anyone who will use, will be affected by or could impact the project.  a. True  b. False 3.Stakeholders include people who have their routines disrupted by the project.  a. True  b. False 4.Project managers should purposefully plan and carry out relationship-building activities with stakeholders that lead to respect and trust.  a. True  b. False 5.The communications management plan is finalized during project planning, and should only be changed through a formal change control process.  a. True  b. False 6.Common purposes for project communications include status reporting and efforts to obtain approval of project outputs.  a. True  b. False 7.Contemporary project communications typically include both push methods such as blogs, and pull methods such as e-mail.  a. True  b. False 8.The plan-do-check-act (PDCA) process improvement model can be applied specifically to improving project meetings.  a. True  b. False 9.An issue log is a document that identifies the specific issues that must be resolved before a particular project management meeting adjourns.  a. True  b. False 10.During the Manage Communications process, project managers must continuously monitor relationships, communications, and lessons learned in order to manage stakeholder expectations.  a. True  b. False ·        Check My Work 11.________ is the process of the project team communicating and working with stakeholders to satisfy their needs (and additional desires, when possible), handle issues quickly and encourage active stakeholder participation throughout. a. Analyze Stakeholders b. Plan Stakeholder Engagement c. Manage Stakeholder Engagement d. Identify Stakeholders 12.Stakeholders include all of the following people EXCEPT: a. those who provide people or resources for the project b. those whose routines may be disrupted by the project c. those who work on the project d. those who will not be impacted by the projec 13.Which of these is NOT one of the three methods of communication that will be documented in a communication plan? a. Virtual methods b. Pull methods c. Interactive methods d. Push methods 14.Project stakeholders can be prioritized based upon their level of power, legitimacy and urgency plus a number of additional criteria that might include: a. tenure b. fame c. personality d. impact 15.The stakeholder register information can be used to evaluate the interests of different stakeholder groups by performing a _______ analysis to identify where there may be common areas of interest between the groups. a. PDCA (plan-do-check-act) b. ITSFWI (if-the-shoe-fits-wear-it) c. WIIFT (what's-in-it-for-them) d. MBWA (management-by-wandering-around) 16.In the Plus-Delta method of evaluating project meetings, the "delta" column is used for team members to offer their opinion about one aspect of the meeting that ________. a. Involves the behavior of one of the team members b. Was good and should be repeated c. Was an issue raised in the meeting should be followed up before the next meeting d. Was poor and could be avoided (changed) in future meetings 17.A principal idea in agile is that the length of daily stand-up meetings should be ___________. a. 15 minutes or less b. 45 minutes or less c. 10 minutes or less d. 30 minutes or less 18.In order to plan for a project meeting, project managers should develop an agenda. Which of the statements below is NOT accurate with respect to a project meeting agenda? a. the agenda should state the purpose of the meeting. b. the project manager should assure the agenda is prepared and distributed ahead of time. c. the agenda should list the major topics of the meeting in the order in which they will be covered. d. the agenda should only be shared with senior management. 19.A situation that requires a decision to be made, but one that the team that cannot make now, usually due to needing more information or time, is called a(n) _____: a. issue b. assumption c. constraint d. risk         20.Once the project is underway, the project manager and team need to manage communications by doing all of the following activities EXCEPT: a. Communicate promptly, providing information soon enough so that it is useful to recipients and facilitates timely decisions. b. Communicate thoroughly, copying all stakeholders on all e-mails and team status reports. c. Communicate accurately, presenting information in a manner that people are likely to interpret correctly. d. Communicate effectively, taking actions to ensure the receiver understands the communication and acts appropriatel   Chapter 6 Assignment  1.All of these are reasons why understanding project stakeholders is important to successful project management EXCEPT: a. There may be multiple users, and each may have different wants and needs. b. End users may not fully understand what they want because they don't know what alternatives might be available. c. The customer who pays for the project is always the actual person who uses the project deliverables, and as the end user they fully understand their needs. d. When someone else is paying for the project some users will ask for many project outcomes that are expensive or time consuming to deliver 2.Which of these is an example of an internal stakeholder who would be impacted by the project process? a. Government Agencies b. Special Interest Groups c. Suppliers d. Competing Projects 3.One of these is NOT a criterion to consider when prioritizing stakeholders: a. Power b. Legitimacy c. Attitude d. Urgency 4.When should the relationship building between the project manage / other core team members and important stakeholders occur? a. Initiating / Creation of the project charter b. Planning / Creation of the detailed project plan c. Executing and Monitoring & Controlling d. Throughout the project 5.The old saying "What's in it for me?" describes what each stakeholder wants, and there are a number of things that can be done to build a relationship between stakeholders and the core team. Which of these is NOT one of the ways to build these relationships? a. Extend a sincere invitation to early and continued involvement. b. Be responsive to stakeholder needs and requests. c. Carefully review every communication prior to sharing it with stakeholders to make sure that it is politically correct. d. Act in a reliable manner   6.Which of these is NOT one of the ways to build relationships with the core team? a. Encourage open communication. b. Use shared learning. c. Share enjoyment of the project. d. Defer to the project manager for problem solving and decision making 7.One of these is NOT an important and necessary function of communications from stakeholders: a. Reporting project progress. b. Authorizing work. c. Determining requirements. d. Uncovering issues and assumptions. 8.Which of these is NOT a reason why effective communications to stakeholders are necessary? a. Help them make good decisions. b. Prepare them to accept project deliverables. c. Authorizing work. d. Assure them of project progress. 9.Clarence and his team are working on a high profile project, and want to be sure that they are proactive about managing stakeholder expectations. What document can they refer to in order to understand their stakeholders' assumptions? a. Stakeholder Identification and Prioritization Matrix b. Business Case c. Communications Plan d. Stakeholder Engagement Assessment Matrix 10.What are the characteristics of "pull" communications? a. Communications are posted either on paper or in electronic form and stakeholders need to take the initiative to receive the communication. b. Communications are sent out either on paper or in electronic form. c. Communications flow in multiple directions. d. Information is maintained in an information retrieval and distribution system.   11.All of these are types of project communications timing schedules EXCEPT: a. Project Life Cycle b. Organizational Structure c. Plan-Do-Check-Act (PDCA) d. As-Needed Basis 12.Which of the answers below is NOT information to be contained in the communications matrix? a. Who does the project team need to share with? b. Where will project meetings take place? c. What does the stakeholder need to know? d. When does the stakeholder need to know the information?                 It is important to capture lessons learned in a knowledge database because 13._____________: a. The team needs an audit trail of project decisions in order to avoid stakeholder liability. b. The team may forget what decisions they made earlier in the project and need a reference point. c. The organization will benefit from the capture and re-use of knowledge developed during the project. d. In an Agile environment lessons learned are the only way to share information about what went right and wrong with the project. 14.The second-to-last item on a standard project team meeting agenda is _________: a. Purpose b. Meeting summary c. Logistics d. Topics 15.Which of these is NOT one of the three questions that each team member answers in an Agile standup meeting? a. What they achieved the previous day. b. What issues they've encountered during this iteration and how they've resolved them. c. What they plan to accomplish today. d. What obstacles are preventing them from accomplishing their work.    Week 3 Chapter 7 Test  1.The project scope is the work that must be performed to deliver a product, service or result with the required features and functions.  a. True  b. False 2.The priority of the product in agile is more significant than in traditional project management, as the outcome, or product, will drive the elaboration of the project.  a. True  b. False 3.The project scope statement establishes the project boundaries by stating what features and work elements are included (in scope) and which are excluded (out of scope).  a. True  b. False 4.The Work Breakdown Structure (WBS) is normally developed by listing deliverables - major deliverables first and then progressively smaller ones until the team feels that every deliverable has been identified.  a. True  b. False 5.A Work Breakdown Structure must be decomposed at least four levels in order to be effective.  a. True  b. False                 6.A WBS dictionary is a document that defines each of the terms used in the project scope statement.  a. True  b. False                 7.When a project team needs to construct a WBS, it needs to include in its planning team a subject matter expert (SME) who understands how each segment of the work will be accomplished.  a. True  b. False 8.A "top-down" approach to creating a WBS is typically used when a project is unique and different from previous projects.  a. True  b. False 9.It is important to assign a unique name and a unique number to every component in the project Work Breakdown Structure.  a. True  b. False 10.Once the plan baseline has been approved and the project is underway, project teams deal with change by establishing and using a change control system to receive and review change proposals and accept or reject them after evaluating their impact on project scope, cost and schedule.  a. True  b. False 11.All of the following elements should be included in a project scope statement EXCEPT: a. names of the project team members b. final and intermediate deliverables with acceptance criteria c. project boundaries or exclusions d. constraints imposed on the project, and assumptions made during plannin 12.On agile projects, the scope definition begins with : a. stories and personas b. requirements c. large chunks of work, or features d. work packages 13.It is helpful to list requirements and supporting information in a requirements traceability matrix. When requirements are complete, they should meet all of these criteria EXCEPT: a. Assigned to a team member who will be the requirement owner b. Qualified by measurable conditions c. Prioritized according to value, cost, time, risk, or mandate so trade-off decisions can be made if needed d. Identified with the stakeholder(s) who needs it 14.The method of dividing the project scope into many parts that, when combined, would constitute the project deliverable is called _____: a. collect requirements b. decomposition c. requirements traceability d. rolling wave planning 15.A _______ is the approved project plan mainly consisting of scope, schedule, and cost that is not normally altered unless a formal change control request is approved for modifying these plans. a. component. b. requirement. c. benchmark. d. baseline. 16Which of the following is NOT a format that is typically used to represent a Work Breakdown Structure? a. Requirements Traceability Matrix b. Hierarchical or "org chart" c. Indented outline d. Free format 17.The overall project is considered to be the first level of the WBS. All of the following methods can be used to organize the second level of the WBS EXCEPT: a. Organized by activities and tasks b. Organized by design components / deliverables. c. Organized by project phase. d. Organized by work function./ subproject 18.This technique is an iterative process that identifies and defines the work to be completely accomplished in the near term, and plans the future work at a higher level. a. Rolling wave planning. b. Agile c. Traceability d. Decomposition. 19.The work component at the lowest level of the WBS for which cost and duration can be estimated and managed is called the ______: a. work package b. work element c. control account d. activity 20.A _________ is a written request or formal proposal to propose changes to any project planning component such as a document, project deliverable, or baseline (scope, cost, and time). a. request for proposal (RFP) b. change request c. project charter d. scope statement   Chapter 7 Assignment  1.What is the first step in developing a project scope management plan? a. Identify stakeholders. b. Create a Work Breakdown Structure. c. Create a project Scope Statement. d. Collect requirements 2.All of these are tasks that comprise the "define scope" process EXCEPT: a. List deliverables and acceptance criteria. b. Establish project boundaries. c. Create a scope description. d. Identify work packages 3.For a construction project, the house is the _______ deliverable, and the how-to instructions are the _____ deliverable. a. Project, product b. Product, interim c. Product, project d. Functional, non-functional 4.Scope definition is a critical part of project planning. Which of these PMBOK Knowledge Areas does NOT use the defined scope as the foundation for their planning processes? a. Plan Cost Management. b. Plan Schedule Management. c. Identify Stakeholders. d. Plan Risk Management. 5.All of these could be common causes of scope creep EXCEPT: a. The project scope is not clearly defined and agreed upon. b. The team adds more work to the project without realizing that more time and resources will be required. c. The team defines project and product scope as well as exclusions, constraints and assumptions in a project scope statement. d. A customer is so excited about project progress that they ask for a new not previously requested project deliverable. 6.What does the acronym WBS stand for? a. Workplace Backup System b. Work Breakdown Schematic c. Workplace Business Structure d. Work Breakdown Structure 7.All of these are advantages of using a WBS EXCEPT: a. To encourage a systematic planning process. b. To ensure all dates assigned to schedule activities are within the overall project timeline. c. To reduce the possibility of omission of key elements. d. To simplify the project by dividing it into manageable units. 8.Which of these is NOT one of the three ways to organize a WBS? a. The WBS is organized by PMBOK Knowledge Area. b. The WBS is organized by project phase. c. The WBS is organized by design components / deliverables. d. The WBS is organized by work function / subproject. 9.The lowest level of a WBS is known as a _________: a. Schedule activity. b. Requirement c. Work package. d. Deliverable. 10.A document that provides more information about each work package by documenting details about the associated deliverable, activity, scheduling information, person responsible, resources required, etc. is called a ________: a. WBS b. WBS Dictionary c. Project Scope Statement d. Requirements Traceability Matrix 11.The planning technique of identifying and defining the work to be accomplished in the near term completely, and planning the future work at a higher level, is called ___________: a. Decomposition b. Rolling Wave Planning c. Baselining d. Joint Application Design (JAD) Session       12.Uncontrolled change is known as: a. Scope creep. b. Over budget condition. c. Missed schedule milestones. d. Quality issues. 13.The processes to receive and review change proposals and accept or reject them after evaluating their impact on project scope, cost and schedule is managed through _________: a. Progressive elaboration. b. Change control system. c. Rolling wave planning. d. Meetings with key stakeholders. 14.Which of these is NOT a typical section in a change request form? a. Impact on project scope. b. Impact on budget. c. Impact on other projects. d. Impact on deadline dates 15.A ________ is the approved project plan for scope, schedule, and cost that is not altered unless a formal change request is approved. a. Schedule b. Budget c. Work Breakdown Structure d. Baseline   Chapter 8 Assignment - 1.According to PMI, after planning schedule management, the next process in project time management is to ___________. a. Sequence activities b. Define activities c. Estimate activity durations d. Develop schedul 2.In order to be useful as schedule building blocks, activities should have certain characteristics. Which of these is NOT one of the characteristics that an activity should have? a. Tangible output that can be verified b. It is the element at the lowest level of the WBS and has a deliverable associated with it c. Resources, other costs, and schedule that can be estimated and controlled d. Clear starting and ending poin 3.What is another name for the Activity-on-Node (AON) network diagramming technique? a. Activity on Arrow (AOA) b. Precedence Diagramming Method (PDM) c. Program Evaluation and Review Technique (PERT) d. Critical Path Method (CPM) 4.Which of these is NOT a typical situation for creating a project schedule milestone? a. Time just before a large amount of money needs to be committed to the project b. Time for weekly project meetings c. Merging point in the schedule where multiple project activities need to be completed d. Completion of a critical activity 5.The schedule activity that follows a predecessor activity, as determined by their logical relationship, is called a ________. a. Lag b. Predecessor activity c. Lead d. Successor activity 6.Which of these four most common types of logical dependencies would be represented by the situation "the carton must be sealed and labelled before the package can be shipped?" a. Start-to-start (SS) b. Start-to-finish (SF) c. Finish-to-start (FS) d. Finish-to-finish (FF) 7.Potential problems can occur with activity duration estimating when omissions are made. All of these are potential remedies for this problem EXCEPT: a. Rolling wave planning b. Checklists, templates, devil's advocate c. Refining scope and WBS d. Lessons learned 8.7Which of these is NOT one of the actions that should be completed during the Two-Pass Method of determining the critical path? a. List all of the paths through the network b. Complete the backward pass through the network c. Complete the forward pass through the network d. Calculate float and the critical path 9.If an activity on the critical path falls behind schedule, what effect will this have on the entire project? a. It will not have an effect on the project if the critical path activity has free float b. It will only have an effect on its successor activity, not the entire project c. It will increase the length of the entire project by the amount of schedule slippage for the activity d. It will not have an effect on the project if the critical path activity has total float 10.If a painted room must dry for four hours before work can continue, the result is a delay in the successor activity. The wait for paint to dry is an example of a __________. a. Lead b. Lag c. Mandatory dependency d. Discretionary dependency 11.A professor who always grades on a curve cannot finish scoring the midterm exams until all of the students have completed taking the test. What kind of relationship is this? a. Start-to-start (SS) b. Start-to-finish (SF) c. Finish-to-start (FS) d. Finish-to-finish (FF) 12.Which of these is NOT an advantage of using Monte Carlo analysis for predicting a project schedule? a. It allows for more realistic estimates. b. It is flexible, and allows for an entire range of possible time estimates to be used for any activity. c. It uses three time estimates – Optimistic, Pessimistic, and Most Likely. d. It can provide extensive information about individual activities and different paths through the project. 13.A basic Gantt Chart can be helpful in project planning in all of these ways EXCEPT: a. It provides a visual representation of the project schedule b. It is easy to understand when each activity should be performed c. It shows the critical path activities in red or boldface d. It shows predecessor-successor relationships, late start dates, etc. 14.A lead is a change in the logical relationship that results in the _____ of the successor activity. a. Delay b. Overlap c. Acceleration d. Elimination 15.______ is defined as "the amount of time a schedule activity can be delayed without delaying the early start of immediately following schedule activities." a. Total float b. Lag time c. Free float d. Lead time   Week 4 Chapter 9 Assignment  1.In addition to technical skills, a project manager must have _________ skills in order to successfully resource a project. a. Microsoft Project b. Behavioral c. Estimating d. Cultural 2.Why is it important to involve workers in the planning phase of a project when possible? a. The project manager needs to know what vacation days they plan to take. b. Project plans are only accurate when the team does all of the planning. c. People are more likely to be enthusiastic about performing work they helped to plan. d. During the planning phase the project manager needs to determine if the team members will work well together. 3.A Staffing Management Plan addresses all of the areas below EXCEPT: a. How to identify potential internal and/or external human resources for the project. b. How to determine the availability of the internal and/or external human resources for the project c. How to handle timing issues with regard to building up, developing, rewarding, and releasing the project team. d. How to record resource assignments in a project scheduling tool such as MS Project. 4.Near the end of the project, timing issues regarding team members must be addressed. Which of the answers below is NOT one of the three "r" end-of-project activities related to project team members? a. Recognizing team members b. Retrospective meetings with team members c. Releasing team members d. Rewarding team members 5.RAM stands for: a. Resource Accountability Matrix b. Responsibility Assignment Matrix c. Responsible, Accountable, Consult and Inform d. Resource Assignment Matrix 6.Which of these is NOT one of the roles of key project stakeholders represented in a RACI Chart? a. R = Responsible b. A = Accountable c. C = Control d. I = Inform 7.Hector and his team were preparing a RACI chart for the major project work packages and activities. In each row they only assigned an "A" for Accountable to a single resource. Why did they feel it was necessary for only one person to be assigned the accountability for each activity? a. Because only one person should do the work on each activity or work package. b. Because the project manager is always the person who is accountable for each activity or work package. c. Because if more than one person has accountability, it is too easy for them to blame each other when something goes wrong. d. Because there are rarely enough people on a project team to have more than one person be accountable 8.What can a project manager do to determine if workers are overloaded? a. Ask them if they are too busy. b. Check to see if they have been working overtime. c. Check the network diagram for resource overloads. d. Add the demands for each resource at each time period 9.Whom should the project manager consult if there is a severe resource overload and they are considering alternative actions such as reducing the project scope, assigning activities to other workers, splitting activities, reordering activities or resource leveling? a. The resources who are involved. b. The project sponsor. c. The scrum master. d. The customer. 10.What will happen to a project's schedule if there are resource overloads and the critical path is delayed? a. Nothing will happen to the project's schedule if the critical path is delayed. b. The project's schedule will slip only if the float / slack period for the critical path activities is not enough to resolve the resource overload issue. c. The project's schedule will slip only if the float / slack period for the noncritical activities is not enough to resolve the resource overload issue. d. There is never a delay in the critical path, because it is the longest path through the network 11.In regard to resource leveling, why are noncritical path activities generally the first to be delayed? a. Because they are longer in duration. b. Because they have available slack / float. c. Because they require fewer resources. d. Because they are not important. 12.Which of these is NOT a technique for reducing the critical path and compressing a project's schedule? a. Overlap sequential activities using finish-to-finish (FF), start-to-start (SS), or start-to-finish (SF) relationships. b. Perform a forward pass and a backward pass through the network. c. Shorten activities by assigning more resources (crashing). d. Schedule activities that are normally in sequence at the same time (fast tracking). 13.When crashing a project schedule, the two questions to be asked when deciding which activities to speed up are ________ and _________. a. Which activities have float, and which activity costs the least on a per-day basis to speed up? b. Are my most skilled resources available, and which activities are on the critical path? c. Which activities are on the critical path, and which critical path activity costs the least on a per-day basis to speed up? d. Which activities can I overlap by using time leads, and which work packages can I remove to reduce project scope? 14.In addition to predecessor-successor relationships, what does critical chain project management (CCPM) factor into its scheduling? a. Calculations on resource availability b. Final project deliverables c. Planning the current phase in detail and later phases at a high level d. Multitasking wherever possible 15.When using Reverse Phase Scheduling, the __________ develops the schedule. a. Sponsor b. Customer c. Project Manager d. Team   Chapter 10 Assignment  1.What type of costs do NOT depend on the size of the project? a. Variable costs b. Direct costs c. Fixed costs d. Indirect costs 2.During which phase of a project life cycle do recurring costs typically occur? a. Planning b. Selecting and Initiating c. Closing and Realizing d. Executing 3.Which of these is an example of an expedited cost? a. The team completes a major deliverable within the normal 40 hour work week. b. New computers are delivered per the agreed dates in the executed purchasing agreement. c. Production work is halted in the factory due to lack of inventory, and management pays for overnight delivery of additional material. d. Summer months are slow for the company so management establishes summer hours, where everyone gets Friday afternoons off. 4.__________ estimates are often used to seek initial project charter approval. a. Budget b. Order of Magnitude c. Definitive d. Parametric 5.Aisha, an experienced project manager, has successfully managed many new build-outs of office space for her east coast company. Her manager announced today that they will be expanding operations to the Midwest. The company had already signed a lease for 5,000 square feet of office space in Cincinnati, and the offices had to be up and running in 3 months. He asked Aisha for a cost estimate for this construction by the end of the day. How can she come up with a credible estimate so quickly? a. Tell the manager that you can't come up with an estimate in a few hours. b. Ask the manager questions about the new office space to understand the impacted departments that will be located there, the level of finishes desired, etc. then use the budgets of previous similar projects as a guideline. c. Create a work breakdown structure by using another previous project and create a bottom-up estimate for each work package. d. Go through all office buildouts for the past five years. Calculate an average construction cost per square foot and multiply the 5,000 square feet by this cost per square feet to calculate the budget. 6.Which of these methods of estimating can produce the most accurate estimate? a. Parametric b. Analogous c. Bottom-up d. Rolling wave 7.Which of these is NOT an example of supporting detail pertaining to cost estimates? a. Description of the project scope b. Method used to create the estimate c. Assumptions and constraints d. Schedule milestones 8.Jim, a project manager for a manufacturing company, is responsible for getting bids for two sophisticated pieces of equipment that will be installed on the factory floor. He has distributed the detailed specifications to a number of vendors, and is waiting for the bid responses. When analyzing the vendor's bids, Jim can do all of the following to determine if the vendor's bid prices appear to be reasonable EXCEPT: a. Compare the bids and assume that the lowest responsible offer is fair. b. Review industry publications to determine if the prices are in line with industry standards. c. Select one of the lower-priced vendors with a good reputation and negotiate with them for the best price. d. Implement activity-based costing. 9.__________ is defined as a formal, structured process that is aimed at increasing the value or productivity of a work element while minimizing the cost. a. Vendor bid analysis b. Life cycle costing c. Value engineering d. Time value of money 10The time value of money is relevant to project management because: a. The project manager must balance the timing of project cash inflows and outflows. b. Discounting the value of future revenue and cost streams enables better project decisions. c. Schedule and cost are interrelated, and use the same estimating tools. d. As time passes on a project, money is spent. 11.During risk analysis for a routine project, ____ percent of money should be put into management reserves, while for an unusual project, ____ percent should be reserved. a. 5 percent, 20 percent b. 5 percent, 30 percent c. 10 percent, 20 percent d. 10 percent, 30 percent 12.What is used to compare actual project spending with planned expenditures to determine if corrective action is needed? a. Cost Baseline b. Critical Path c. Cost Estimate d. Cost Management Plan 13.A fixed cost is described as __________. a. A cost that is necessary to keep the organization running, but is not associated with one specific project. b. A cost that only occurs because of the project and is often classified as either labor or other costs. c. A cost that remains the same regardless of the size or volume of work. d. A cost that varies with volume of use. 14.An example of a nonrecurring cost is _________. a. Cost of writing code b. Cost of laying bricks c. Developing a design that guides the team, once approved d. Cost of running an assembly line in a factory 15.Which of the scenarios below is NOT an example of an assumption that may arise when estimating the cost of direct labor? a. Workers will be paid for 40 hours per week whether or not there is enough work for them to do. b. Workers are already familiar with the technology being used on the project. c. Workers will be paid at the prevailing wage rate of $14 per hour. d. Only in-house workers will be used.   Week 5 Chapter 11 Test  1.The purpose of risk management is to eliminate all project risk.  a. True  b. False 2.When the impact of an event is negative, it is considered a risk; when the impact is positive, the event is considered an opportunity.  a. True  b. False 3.The cost per risk for risks discovered early in the project is often more than the cost per risk for risks discovered late because there is more opportunity for the risk to impact several dimensions of the project.  a. True  b. False 4.When complete, the risk register presents the results of both qualitative and quantitative risk analysis as well as risk response planning.  a. True  b. False 5.In Agile projects early risk planning, assessment and response planning is done at a high level, and more detailed and timely risk management occurs during the planning of each subsequent iteration, in daily stand-up meetings, and in retrospectives at the end of each iteration.  a. True  b. False 6.The primary questions project teams use in qualitative risk analysis are "how likely is this risk to happen?", and "if it does happen, how big will the impact be?"  a. True  b. False 7.Perform Quantitative Risk Analysis is the process of numerically analyzing the effect of identified risks on overall project objectives.  a. True  b. False 8.In some cases, project teams will elect to reduce a threat to a level that a sponsor and other stakeholders deem acceptable, rather than eliminate it completely.  a. True  b. False 9.Risk response strategies such as accept risk and research risk apply to both threats and opportunities.  a. True  b. False 10.Risk response strategy decisions should reflect a thorough understanding of the priorities that key stakeholders have for cost, schedule, scope, and quality.  a. True  b. False 11.A ________ presents a hierarchical organization of risks based on categories such as operational, strategic, finance, external, and project management. a. Risk Register b. Decision Tree c. Risk Management Plan d. Risk Breakdown Structure (RBS) 12.All of the following criteria can be used to categorize project risks EXCEPT: a. whether the risk is a known known b. when it occurs in the project life cycle c. the project objective that may be impacted by the risk (cost, schedule, scope and / or quality) d. whether the risk is internal or external to the performing organization 13.Which of the following describes the activities appropriately performed by the project team during Perform Qualitative Risk Analysis? a. Team members define how to conduct risk management activities for the project. b. Team members identify potential risk events. c. Team members assess the probability of occurrence and severity of impact for identified risks. d. Team members develop contingency plans for all risks to avoid adverse impacts to project objectives ·        Check My Work 14.All of the following describe the appropriate application of Perform Quantitative Risk Analysis in project management EXCEPT: a. Large, complex and expensive projects stand to benefit from the additional rigor of quantitative risk analysis techniques. b. Quantitative techniques are used when it is critical to predict the probability of completing a project on time or within budget with confidence. c. Decision Tree Analysis and Simulation techniques such as Monte Carlo Analysis are examples of useful quantitative risk analysis techniques. d. Brainstorming techniques are used by the team and other stakeholders to identify as many project risks as possible. 15.Which of the following describes how the team uses a cause-and-effect diagram to support project risk analysis? a. The team organizes assumptions and constraints in a fishbone pattern. b. Team members are encouraged to keep asking "when?" to break down risks into more detailed causes. c. The team lists the risk as the "effect" in a box at the head of a fish, then names the big bones. d. The project team begins by identifying strengths, weaknesses, opportunities and threats. ·          ID Risk Event Likelihood Severity A Project requires new technology and support structure Medium Low B Web infrastructure lacks sufficient transaction capacity Medium High C IS resources are spread too thin High High D The intranet site suffers a security breach Low High Figure 10-1 Excerpt from Internet Project Risk Register 16.Consider the excerpt of the Internet Project risk register presented in Figure 10-1. Which of the following risk events should receive the highest priority for the development of risk responses? a. B - web infrastructure lacks sufficient transaction capacity b. D - The intranet site suffers a security breach c. C - IS resources are spread too thin d. A - project requires new technology and support structure 17.Which of the following quantitative risk analysis techniques is used to determine which risks have the most powerful impact on the project, with results displayed in the form of a tornado diagram? a. Expected Monetary Value (EMV) b. Sensitivity Analysis c. Failure Mode and Effects Analysis (FMEA) d. Simulation Techniques such as Monte Carlo Analysis 18.All of the following describe an appropriate application of Plan Risk Responses in project management EXCEPT: a. The expectations of the sponsor and key stakeholders should influence the risk responses that are developed. b. Risk response planning should address both opportunities and threats. c. Often multiple strategies are identified for a single risk. d. Responses should be created for every identified project risk, regardless of the risk scor 19.All of the following are among the classic risk response strategies EXCEPT: a. enhance an opportunity b. share a threat c. avoid a threat d. transfer a threat 20Which of the following activities illustrates a risk response strategy designed to research a threat or an opportunity? a. identify a risk owner to each high priority risk b. establish triggers and update them frequently c. establish time or cost contingencies d. construct a prototype to learn more about a candidate solutio   Chapter 11 Assignment  1.A negative impact is known as a (n) ______, while a positive impact is known as a (n) __________. a. Issue, Benefit b. Issue, Opportunity c. Threat, Opportunity d. Threat, Benefit ·          2.Who should be involved in identifying potential risks for a project? a. Sponsor b. Project Manager c. Team d. Everyone 3.Which of these is NOT one of the typical project success measures? a. Meeting Agreements b. Quality Improvements c. Performing Organization's Success d. Project Team's Success 4.Risks are typically discovered during which stage(s) of a project? a. Initiating b. Initiating & Planning c. Initiating, Planning & Executing d. Initiating, Planning, Executing and Closing 5.Relative to the project life cycle, when is the cost per risk discovered typically highest? a. Initiating b. Planning c. Executing d. Closing 6.What does a SWOT Analysis examine? a. Strengths, Weaknesses, Options, and Threats b. Strengths, Warnings, Opportunities and Threats c. Scenarios, Weaknesses, Opportunities and Threats d. Strengths, Weaknesses, Opportunities and Threats 7.A _________ is an analytical technique to ascertain the fundamental reason or reasons that affect one or more variances, defects or risks. a. SWOT Analysis b. Root Cause Analysis c. Delphi Technique d. Brainstorming Technique 8.All of these are ways of categorizing project risks EXCEPT: a. When they occur in the project life cycle. b. Who identified the risk. c. What project objective may be impacted (scope, time, cost, etc.) d. Whether the risk is internal or external to the organization. 9.A key supplier of materials for your project has not been returning your calls or responding to your e-mails. This is an example of a ________, which indicates that a risk is likely to occur. a. Bad business relationship b. Trigger condition c. Risk avoidance d. Risk transfer 10.During which risk planning process is each risk assigned a probability and impact score? a. Plan Risk Management b. Identify Risks c. Perform Qualitative Risk Analysis d. Perform Quantitative Risk Analysis 11.1The risk factor of each risk, determined during Perform Qualitative Risk Analysis, is derived by ______ the probability and the consequence (impact). a. Adding b. Subtracting c. Multiplying d. Dividing 12.What type of risk analysis is NOT required on all projects? a. Risk Identification b. Qualitative Risk Analysis c. Quantitative Risk Analysis d. Risk Response Planning 13.A Fortune 100 company is about to undertake a $30 million construction project to build a new office building. As a condition of hiring a general contractor to build the property, they require the contractor to secure a performance bond to guarantee their work and performance under this construction contract. This is an example of _______ project risk. a. Avoiding b. Mitigating c. Transferring d. Accepting 14.All of the following information is typically contained in the risk register EXCEPT: a. Risk response strategy b. Risk owner c. Probability of occurrence d. Date risk identified 15.In the risk register, why should one person be designated as the "owner" of the risk? a. So they can be congratulated when the risk is mitigated. b. So they can be blamed if the risk is triggered and causes major project problems. c. So that they can be responsible for determining if it's about to be triggered, and implementing the strategy. d. So that they will be responsible for administering the contingency and management reserves.