Test Bank Project Management Achieving Competitive Advantage 4th Edition Pinto ch3 PDF

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Test Bank Project Management: Achieving Competitive Advantage 4th Edition Pinto Completed download: https://testbankreal.com/download/project-management-achievingcompetitive-advantage-4th-edition-test-bank-pinto/ Project Management: Achieving Competitive Advantage, 4e Test Bank (Pinto) Chapter 3 Project Selection and Portfolio Management 1) Souder's project screening criterion that indicates an effective model must reflect organization objectives, including a firm's strategic goals and mission is called: A) Realism. B) Capability. C) Comparability. D) Ease of use. Answer: A Diff: 2 Section: 3.1 Project Selection LO: 3.1: Explain six criteria for a useful project selection/screen model. Classification: Concept AACSB: Application of Knowledge 2) Souder's project screening criterion of realism addresses the question: A) How many workers will the project need? B) Will the project work as intended? C) Who are the stakeholders? D) How often should the project team meet? Answer: B Diff: 2 Section: 3.1 Project Selection LO: 3.1: Explain six criteria for a useful project selection/screen model. Classification: Concept AACSB: Application of Knowledge 3) A selection model that is broad enough to be applied to multiple projects has the benefit of: A) Ease of use. B) Comparability. C) Capability. D) Flexibility. Answer: B Diff: 2 Section: 3.1 Project Selection LO: 3.1: Explain six criteria for a useful project selection/screen model. 1

Classification: Factual AACSB: Application of Knowledge

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4) A project screening criterion that allows the company to compare long-term versus short-term projects, projects with different technologies, and projects with different commercial objectives is: A) Flexibility. B) Ease of use. C) Capability. D) Realistic. Answer: C Diff: 2 Section: 3.1 Project Selection LO: 3.1: Explain six criteria for a useful project selection/screen model. Classification: Application AACSB: Application of Knowledge 5) If a model can be applied successfully by people in all areas and levels of an organization, it is said to possess the trait of: A) Capability. B) Ease of use. C) Flexibility. D) Realism. Answer: B Diff: 2 Section: 3.1 Project Selection LO: 3.1: Explain six criteria for a useful project selection/screen model. Classification: Concept AACSB: Application of Knowledge 6) An MBA redesign committee plans to spend a decade traveling the world to benchmark graduate programs at other universities. Regardless of the screening model being used, it will suffer from poor performance in the area of: A) flexibility. B) Capability. C) Comparability. D) Cost. Answer: D Diff: 1 Section: 3.1 Project Selection LO: 3.1: Explain six criteria for a useful project selection/screen model. Classification: Concept AACSB: Application of Knowledge

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7) Souder's model selection criterion that encourages ease of adaptation to changes in tax laws, building codes, among others, is called: A) Ease of use. B) Cost. C) Capability. D) Flexibility. Answer: D Diff: 2 Section: 3.1 Project Selection LO: 3.1: Explain six criteria for a useful project selection/screen model. Classification: Concept AACSB: Application of Knowledge 8) A writer estimates it will take three months to generate spiffy documents to accompany a seminal work in operations management. He grossly underestimates the time required and misses his deadline by two months. This estimate was: A) Objective and accurate. B) Subjective and accurate. C) Objective and inaccurate. D) Subjective and inaccurate. Answer: D Diff: 2 Section: 3.1 Project Selection LO: 3.1: Explain six criteria for a useful project selection/screen model. Classification: Concept AACSB: Application of Knowledge 9) A wedding planner allows $10,000 for flowers and three weeks to receive all RSVPs back from the list of 700 guests. Both estimates are correct within a fraction of a percent. We could describe this factoid as: A) Numeric and subjective. B) Numeric and objective. C) Non-numeric and subjective. D) Non-numeric and objective. Answer: A Diff: 2 Section: 3.1 Project Selection LO: 3.1: Explain six criteria for a useful project selection/screen model. Classification: Concept AACSB: Application of Knowledge

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10) An internal operating issue in project screening and selection is: A) Expected return on investment. B) Change in physical environment. C) Patent protection. D) The chance that the firm's goodwill will suffer due to the quality of the finished project. Answer: B Diff: 2 Section: 3.1 Project Selection LO: 3.1: Explain six criteria for a useful project selection/screen model. Classification: Factual AACSB: Application of Knowledge 11) Quality risk refers to the chance that: A) The project relies on developing new or untested technologies. B) The firm's reputation may suffer when the product becomes available. C) The well-being of the users or developers may decline dramatically. D) The firm may face a lawsuit. Answer: B Diff: 1 Section: 3.1 Project Selection LO: 3.1: Explain six criteria for a useful project selection/screen model. Classification: Concept AACSB: Application of Knowledge 12) One facet of risk in project screening is: A) The change in manufacturing operations resulting from the project. B) The initial cash outlay. C) The potential for lawsuits or legal obligation. D) The strategic fit of the project with the company. Answer: C Diff: 2 Section: 3.1 Project Selection LO: 3.1: Explain six criteria for a useful project selection/screen model. Classification: Application AACSB: Application of Knowledge 13) One project factor that directly impacts a firm's internal operations is the: A) Expected return on investment. B) Financial risk. C) Need to develop employees. D) Impact on company's image. Answer: C Diff: 2 Section: 3.1 Project Selection LO: 3.1: Explain six criteria for a useful project selection/screen model. Classification: Application AACSB: Application of Knowledge 5

14) A commercial factor in project selection and screening might be: A) A need to develop employees. B) The likelihood that users of the project are injured. C) The long-term market dominance. D) The impact on the company's image. Answer: C Diff: 2 Section: 3.1 Project Selection LO: 3.1: Explain six criteria for a useful project selection/screen model. Classification: Application AACSB: Application of Knowledge 15) Which statement regarding project selection is BEST? A) Organizational reality can be perfectly captured by most decision-making models. B) Before selecting any project, the team should identify all the relevant issues that play a role in project selection. C) Decision models must contain either objective or subjective factors. D) Every decision model has both objective and subjective factors. Answer: D Diff: 3 Section: 3.1 Project Selection LO: 3.1: Explain six criteria for a useful project selection/screen model. Classification: Application AACSB: Application of Knowledge 16) Which statement regarding project selection and screening criteria is BEST? A) The most complete model in the world is still only a partial reflection of organization reality. B) It is possible, given enough time and effort, to identify all relevant issues that play a role in project selection. C) Decision models are either objective or subjective. D) For many projects, more than 80% of the decision criteria are vital. Answer: A Diff: 1 Section: 3.1 Project Selection LO: 3.1: Explain six criteria for a useful project selection/screen model. Classification: Application AACSB: Application of Knowledge 17) An effective project selection model must reflect organizational objectives, including a firm's strategic goals and mission. Answer: TRUE Diff: 2 Section: 3.1 Project Selection LO: 3.1: Explain six criteria for a useful project selection/screen model. Classification: Concept AACSB: Application of Knowledge 18) An expert's opinion on an issue may be subjective but very accurate. 6

Answer: TRUE Diff: 1 Section: 3.1 Project Selection LO: 3.1: Explain six criteria for a useful project selection/screen model. Classification: Concept AACSB: Application of Knowledge 19) Numeric project selection models, by their very nature, employ objective values. Answer: FALSE Diff: 2 Section: 3.1 Project Selection LO: 3.1: Explain six criteria for a useful project selection/screen model. Classification: Concept AACSB: Application of Knowledge 20) Every decision model contains both objective and subjective factors. Answer: TRUE Diff: 3 Section: 3.1 Project Selection LO: 3.1: Explain six criteria for a useful project selection/screen model. Classification: Factual AACSB: Application of Knowledge 21) Describe or define any four important attributes for screening models used to evaluate projects. Answer: Souder identifies five important issues that managers should consider when evaluating screening models: realism, capability, flexibility, ease of use, and cost, and the text offers up comparability. Taking these in reverse order, comparability refers to the ability of the criterion to be applied to multiple projects without bias. Cost can be defined as the expense in either time or money (or both) that is required to use the model. Ease of use calls for the model to be simple enough to be used by people in all areas of the organization, both in specific project roles and in those related to functional positions. Flexibility is the quality of ease of modification if trial applications require changes. Capability is the ability of the model to respond to changes in the conditions under which projects are carried out. Finally, realism is the ability of the model to reflect organizational objectives, including a firm's strategic goals and mission. Diff: 2 Section: 3.1 Project Selection LO: 3.1: Explain six criteria for a useful project selection/screen model. Classification: Concept AACSB: Application of Knowledge

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22) Provide an example of a numeric and non-numeric project selection model and indicate what advantage each might hold over the other. Answer: Project selection models come in two general classes: numeric and non-numeric. Numeric models seek to use numbers for the decision process involved in selecting projects. These values can either be derived objectively or subjectively. Non-numeric models do not employ numbers at decision inputs, relying instead on other data. Each technique has its own merits and may be employed successfully, and a choice between the two should be tempered by the adage GIGO. If a numeric model uses objective, external values that are "correct," then a decision maker can have a high degree of confidence that the values under study will lead to a reasonable decision. A non-numeric model might appeal to decision makers that have less of a quantitative bent or those that operate in a less quantifiable decision arena. Diff: 2 Section: 3.1 Project Selection LO: 3.1: Explain six criteria for a useful project selection/screen model. Classification: Application AACSB: Analytical Thinking 23) Describe any four types of risk that projects may hold. Answer: Risk factors reflect elements of unpredictability for the firm. Technical risks occur due to the development of new or untested technologies. Financial risks arise from the financial exposure caused by investing in the project. Safety risk may arise as the well-being of users or developers of the project is compromised. Any risks to the firm's goodwill or reputation due to the quality of the completed project are termed quality risks. Finally, the potential for lawsuits or legal obligation is legal exposure. Diff: 2 Section: 3.1 Project Selection LO: 3.1: Explain six criteria for a useful project selection/screen model. Classification: Factual AACSB: Application of Knowledge 24) A checklist screening model does NOT consider: A) Whether one criterion is more important than another. B) Governmental or stakeholder interference. C) Product durability and future market potential of the product line. D) The riskiness of the new venture. Answer: A Diff: 3 Section: 3.2 Approaches to Project Screening and Selection LO: 3.2: Understand how to employ checklists and simple scoring models to select projects. Classification: Application AACSB: Application of Knowledge

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25) A simple scoring model for project evaluation requires: A) Importance weights from 1 to 10 assigned to each criterion. B) Score values assigned to each criterion in terms of its rating. C) A division of weights by scores to arrive at a standardized score for each criterion. D) A summation for each criterion to achieve an overall criterion score. Answer: B Diff: 2 Section: 3.2 Approaches to Project Screening and Selection LO: 3.2: Understand how to employ checklists and simple scoring models to select projects. Classification: Application AACSB: Application of Knowledge 26) The simple scoring model has this advantage over a checklist model for screening projects. A) Scaling from 1 to 5 is extremely accurate. B) Scaling models ensure a reasonable link between the selected and weighted criteria and the business objectives that motivated their selection. C) Scaling models allow decision makers to treat one criterion as more important than another. D) Scaling models have been proven to make correct decisions better than 95% of the time while checklists only achieve 80% accuracy. Answer: C Diff: 2 Section: 3.2 Approaches to Project Screening and Selection LO: 3.2: Understand how to employ checklists and simple scoring models to select projects. Classification: Application AACSB: Application of Knowledge

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27) A project manager is using a simple scoring model to decide which of four projects is best, given the company's limited resources. The criteria, importance weights, and scores for each are shown in the table. Which project should be chosen?

Project

Criteria

Importance Weight Score

1 Greenlight 2 3

1 2 3

3 2 1

Runway

1 2 3

1 2 3

2 1 3

X

1 2 3

1 2 3

1 2 2

1 1 2 2 2 2 3 3 2 A) Project Greenlight B) Project Runway C) Project X D) Project Ilevomit Answer: B Diff: 2 Section: 3.2 Approaches to Project Screening and Selection LO: 3.2: Understand how to employ checklists and simple scoring models to select projects. Classification: Application AACSB: Analytical Thinking Ilevomit

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28) A project manager is using a simple scoring model to decide which of four projects is best, given the company's limited resources. The criteria, importance weights, and scores for each are shown in the table. Which project should be chosen?

Project

Criteria

Importance Weight Score

White

1 2 3

1 2 3

2 2 3

Pinkman

1 2 3

1 2 3

3 3 2

Fring

1 2 3

1 2 3

3 2 3

1 1 3 Salamanca 2 2 1 3 3 3 A) Project White B) Project Pinkman C) Project Fring D) Project Salamanca Answer: C Diff: 2 Section: 3.2 Approaches to Project Screening and Selection LO: 3.2: Understand how to employ checklists and simple scoring models to select projects. Classification: Application AACSB: Analytical Thinking

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29) A simple scoring model is used to decide among three projects that we'll call A, B, and C. The total score for project A is 30, for project B is 20, and for project C is 10. Which of the following statements is BEST? A) If project A is successfully completed, it will yield three times the benefits that project C would have provided. B) If project C is chosen, the company would benefit only half as much as if they had chosen project B. C) Project C is better than project B for this company at this point in time. D) Project A is better than project B for this company at this point in time. Answer: D Diff: 2 Section: 3.2 Approaches to Project Screening and Selection LO: 3.2: Understand how to employ checklists and simple scoring models to select projects. Classification: Application AACSB: Application of Knowledge 30) The pairwise comparison approach: A) Is a method to split the weights assigned to subcriteria. B) Is a method to compare pairs of hierarchies prior to any further analysis. C) Is a means of achieving all project objectives within the allocated time frame. D) May be used instead of AHP if time is limited. Answer: A Diff: 1 Section: 3.2 Approaches to Project Screening and Selection LO: 3.2: Understand how to employ checklists and simple scoring models to select projects. Classification: Application AACSB: Application of Knowledge 31) The simplest method of project screening and selection is developing a list of criteria that pertain to the choice of projects and then applying them to alternatives. Answer: TRUE Diff: 1 Section: 3.2 Approaches to Project Screening and Selection LO: 3.2: Understand how to employ checklists and simple scoring models to select projects. Classification: Application AACSB: Application of Knowledge 32) The checklist model of project screening has a mechanism to accommodate the differential importance of relevant criteria. Answer: FALSE Diff: 1 Section: 3.2 Approaches to Project Screening and Selection LO: 3.2: Understand how to employ checklists and simple scoring models to select projects. Classification: Application AACSB: Application of Knowledge

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33) A simplified scoring model addresses all the weakness of a checklist model for project screening. Answer: TRUE Diff: 1 Section: 3.2 Approaches to Project Screening and Selection LO: 3.2: Understand how to employ checklists and simple scoring models to select projects. Classification: Application AACSB: Application of Knowledge 34) A simplified scoring model is used to determine that project Cow has a score of 38 and project GiGi has a score of 30. Project Cow is therefore 26.7% better than project GiGi. Answer: FALSE Diff: 2 Section: 3.2 Approaches to Project Screening and Selection LO: 3.2: Understand how to employ checklists and simple scoring models to select projects. Classification: Application AACSB: Application of Knowledge 35) How does a checklist project screening model work? Answer: The simplest method of project screening and selection is developing a checklist of criteria that pertain to a choice of projects and then applying them to the projects. Each potential project is scored against the list of criteria and is rated as performing high, medium, or low with the project scoring highest overall being selected as the project to undertake. Diff: 2 Section: 3.2 Approaches to Project Screening and Selection LO: 3.2: Understand how to employ checklists and simple scoring models to select projects. Classification: Factual AACSB: Application of Knowledge

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36) Your university is considering two projects to increase enrollment: offering traditional classes from midnight to 6 a.m. or offering house call classes where the professor would visit your home to provide instruction. Use a simple scoring model with at least three criteria to evaluate these two potential projects and indicate which project should be chosen. Answer: Answers may vary widely. A simplified scoring model ranks criteria according to their relative importance. Each project is evaluated for performance on each criterion and an overall score for each project is computed by summing the products of each score times its weight. A simple scoring model might be as follows with House Calls narrowly edging out Midnight Classes. Weighted Total Project Criteria & Weight Score Score Score Midnight Classes Time 2 2 4 Cost 1 1 1 Market Potential 3 2 6 11 House Calls Time 2 3 6 Cost 1 3 3 Market Potential 3 1 3 12 Diff: 2 Section: 3.2 Approaches to Project Screening and Selection LO: 3.2: Understand how to employ checklists and simple scoring models to select projects. Classification: Application AACSB: Analytical Thinking 37) What are the advantages and limitations of simple scoring models? Answer: The simple scoring model has some useful advantages as a project selection device. First, it is easy to tie to...