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Exam
Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1)
Reluctance to hear bad news communicated from lower levels of the organizational hierarchy is
referred to as:
1)
A)
fear of reprisal.
B)
blowing the whistle.
C)
mum effect.
D)
deaf effect.
Answer:
D
Explanation:
A)
B)
C)
D)
2)
Withholding negative information out of fear for negative consequences is known as:
2)
A)
fear of reprisal.
B)
mum effect.
C)
blowing the whistle.
D)
deaf effect.
Answer:
B
Explanation:
A)
B)
C)
D)
3)
A cost control method for examining project cost performance over time to determine whether
performance is improving or deteriorating is:
3)
A)
earned value analysis.
B)
trend analysis.
C)
cost analysis.
D)
variance analysis.
Answer:
B
Explanation:
A)
B)
C)
D)
4)
A ________ is a systematic and formal enquiry into a project's expenditures, schedule, and quality
of work.
4)
A)
project review
B)
project control
C)
project assessment
D)
project audit
Answer:
D
Explanation:
A)
B)
C)
D)
1
5)
________ is the process of identifying the cause of variance relative to the project baseline and
determining whether any corrective action is needed.
5)
A)
Baseline analysis
B)
Variance analysis
C)
Progress analysis
D)
Cause and effect diagramming
Answer:
B
Explanation:
A)
B)
C)
D)
6)
All of the following are philosophies of project control EXCEPT:
6)
A)
dogmatic philosophy.
B)
laid-back philosophy.
C)
pragmatic philosophy .
D)
relaxed philosophy.
Answer:
D
Explanation:
A)
B)
C)
D)
7)
Team members need to be encouraged to:
7)
A)
take responsibility when problems arise.
B)
offer opinions.
C)
encourage to participate.
D)
all of the above.
Answer:
D
Explanation:
A)
B)
C)
D)
8)
________ is the process of monitoring and measuring project progress and influencing the plan to
account for any discrepancies between planned progress and actual progress.
8)
A)
Progress monitoring
B)
Project control
C)
Project monitoring
D)
Project execution
Answer:
B
Explanation:
A)
B)
C)
D)
9)
The ________ is calculated by dividing the BAC by the CPI.
9)
A)
estimated cost at completion
B)
budget at completion
C)
completion performance index
D)
estimated time to complete
Answer:
A
Explanation:
A)
B)
C)
D)
2
10)
________ are documented recommendations that minimize the probability of negative
consequences to the project.
10)
A)
Recommended corrective actions
B)
Project control actions
C)
Risk mitigation actions
D)
Recommended preventive actions
Answer:
D
Explanation:
A)
B)
C)
D)
11)
The ________ is a time-phased budget that is used to measure and monitor cost performance.
11)
A)
project budget
B)
cost baseline
C)
project resources baseline
D)
budget baseline
Answer:
B
Explanation:
A)
B)
C)
D)
12)
The ________ is the ratio of EV to PV.
12)
A)
cost performance ratio
B)
schedule performance index
C)
schedule performance ratio
D)
cost performance index
Answer:
B
Explanation:
A)
B)
C)
D)
13)
The budgeted amount for the work actually completed on the activity during a given time period is
referred to as:
13)
A)
PC.
B)
EV.
C)
EC.
D)
PV.
Answer:
B
Explanation:
A)
B)
C)
D)
14)
The budgeted cost for the work scheduled to be completed on an activity up to a given point of
time is referred to as:
14)
A)
PV.
B)
PC.
C)
EC.
D)
EV.
Answer:
A
Explanation:
A)
B)
C)
D)
3
15)
A post-implementation review is conducted:
15)
A)
6-12 months after implementation.
B)
a few weeks after user training has commenced.
C)
once the client has become familiar with the product.
D)
right after a project was implemented.
Answer:
A
Explanation:
A)
B)
C)
D)
16)
________ are activities and reporting methods instituted during the course of a project to monitor
its progress and to provide reports for project managers and stakeholders.
16)
A)
Project rules
B)
Standard project procedures
C)
Standard operating procedures
D)
Project guidelines
Answer:
C
Explanation:
A)
B)
C)
D)
17)
________ is the management style the manager employs in following a plan and dealing with
problems or changes in the plan.
17)
A)
Approach to project control
B)
Project control style
C)
Philosophy of project control
D)
Style of project control
Answer:
C
Explanation:
A)
B)
C)
D)
18)
________ is the final implementation and training related to the project, getting acceptance and
signoff on the project, and archiving of the project's results.
18)
A)
Project signoff
B)
Project closure
C)
Project implementation
D)
Project handover
Answer:
B
Explanation:
A)
B)
C)
D)
19)
For large, complex projects, the ________ may be most appropriate.
19)
A)
dogmatic philosophy
B)
laid-back philosophy
C)
pragmatic philosophy
D)
relaxed philosophy
Answer:
A
Explanation:
A)
B)
C)
D)
4
20)
________ measures project performance over time, and provides a way to forecast future
performance based on past performance.
20)
A)
Project performance analysis
B)
Schedule analysis
C)
Variance analysis
D)
Earned value management.
Answer:
D
Explanation:
A)
B)
C)
D)
21)
________ are documented and authorized changes that are scheduled for implementation by the
project team.
21)
A)
Approved change requests
B)
Approved defect repair
C)
Approved corrective actions
D)
Approved preventive actions
Answer:
A
Explanation:
A)
B)
C)
D)
22)
________ are approved and authorized actions that are recommended to correct defects in the
project deliverables.
22)
A)
Approved corrective actions
B)
Approved preventive actions
C)
Approved change requests
D)
Approved defect repair
Answer:
D
Explanation:
A)
B)
C)
D)
23)
Perhaps the most important aspect of successful project management is:
23)
A)
the efficient flow of information.
B)
analysis and action.
C)
team members' commitment.
D)
participation.
Answer:
A
Explanation:
A)
B)
C)
D)
24)
A change control system is a documented process that describes the procedures by which:
24)
A)
the project and product scope can be changed.
B)
system changes are managed.
C)
changes are controlled.
D)
all of the above.
Answer:
A
Explanation:
A)
B)
C)
D)
5
25)
________ are documented and authorized guidelines that are intended to reduce the probability of
negative consequences to the project due to identified risks.
25)
A)
Approved preventive actions
B)
Approved change requests
C)
Approved defect repair
D)
Approved corrective actions
Answer:
A
Explanation:
A)
B)
C)
D)
26)
________ are documented recommendations that needed to bring future project performance into
conformance with the project management plan.
26)
A)
Project control actions
B)
Recommended corrective actions
C)
Risk mitigation actions
D)
Recommended preventive actions
Answer:
B
Explanation:
A)
B)
C)
D)
27)
________ is the difference between the earned value and the actual cost.
27)
A)
SV
B)
SD
C)
CD
D)
CV
Answer:
D
Explanation:
A)
B)
C)
D)
28)
The actual cost associated with work on an activity during a particular time period is:
28)
A)
the product of EV and % completed.
B)
not calculated but drawn from invoices.
C)
The product of EV and PV.
D)
the product of PV and % completed.
Answer:
B
Explanation:
A)
B)
C)
D)
29)
The ________ is the ratio of EV to AC.
29)
A)
cost performance ratio
B)
cost performance index
C)
schedule performance index
D)
schedule performance ratio
Answer:
B
Explanation:
A)
B)
C)
D)
6
30)
Earned value management is a powerful cost control technique that provides estimates on the
likelihood the project will meet ________ requirements.
30)
A)
schedule
B)
budget
C)
project
D)
both A and B
Answer:
D
Explanation:
A)
B)
C)
D)
31)
________ is the difference between the scheduled completion of an activity and the actual
completion.
31)
A)
CV
B)
SD
C)
CD
D)
SV
Answer:
D
Explanation:
A)
B)
C)
D)
32)
Controlling processes are important factors in ________ of the nine project management knowledge
areas.
32)
A)
six
B)
five
C)
seven
D)
four
Answer:
A
Explanation:
A)
B)
C)
D)
33)
The ________ is calculated by dividing the original time estimate by the SPI.
33)
A)
completion time
B)
schedule performance index
C)
estimated cost at completion
D)
estimated time to complete
Answer:
D
Explanation:
A)
B)
C)
D)
34)
Controlling processes are important factor in all of the following project management knowledge
areas EXCEPT ________ management.
34)
A)
integration
B)
time
C)
procurement
D)
cost
Answer:
C
Explanation:
A)
B)
C)
D)
7
35)
Pareto's law states that:
35)
A)
80 percent of the causes result in 20 percent problems.
B)
in a histogram, the probabilities of occurrence are cumulative.
C)
the bar in histogram should be arranged in decreasing order.
D)
80 percent of the problems are the result of 20 percent of the causes.
Answer:
D
Explanation:
A)
B)
C)
D)
36)
A(n) ________ contains a record of the project management techniques employed over the course of
the project, surveys, and outstanding items that still need to be resolved.
36)
A)
end report
B)
handover report
C)
post-implementation report
D)
outstanding item report
Answer:
A
Explanation:
A)
B)
C)
D)
37)
For relatively small projects, the ________ may be most appropriate.
37)
A)
relaxed philosophy
B)
pragmatic philosophy
C)
dogmatic philosophy
D)
laid-back philosophy
Answer:
D
Explanation:
A)
B)
C)
D)
38)
________ are documented and authorized guidelines necessary to bring future project performance
in conformance with the project management plan.
38)
A)
Approved corrective actions
B)
Approved change requests
C)
Approved defect repair
D)
Approved preventive actions
Answer:
A
Explanation:
A)
B)
C)
D)
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.
39)
In Microsoft Project, a ________ can be used to compare planned and actual project
information.
39)
Answer:
tracking Gantt chart
Explanation:
40)
Communicating bad news up the hierarchy is also known as ________.
40)
Answer:
blowing the whistle
Explanation:
8
41)
Indexes ________ indicate possible problems with a project's progress.
41)
Answer:
below 100%
Explanation:
42)
________ is the process of identifying the cause of variance relative to the project baseline
and determining whether any corrective action is needed.
42)
Answer:
Variance analysis
Explanation:
43)
In many organizations, blowing the whistle is seen as ________ behavior.
43)
Answer:
illegitimate
Explanation:
44)
In addition to the philosophy of project control employed, the manager also needs to
________.
44)
Answer:
exert control
Explanation:
45)
________ are requested changes that were not chosen for implementation.
45)
Answer:
Rejected change requests
Explanation:
46)
An important issue during the closure process if the ________ of the project management
methods you have used.
46)
Answer:
documentation
Explanation:
47)
The reluctance to "hear the whistle" by upper management is also known as the ________.
47)
Answer:
deaf effect
Explanation:
48)
________ is the process of screening the project results to determine whether they conform
to relevant quality standards and identifying means to eliminate causes of unsatisfactory
results.
48)
Answer:
Perform quality control
Explanation:
49)
A ________ CV means that it cost more to perform the work than was planned for.
49)
Answer:
negative
Explanation:
50)
A(n) ________ contains a record of the project management techniques employed over the
course of the project, surveys, and outstanding items that still need to be resolved.
50)
Answer:
end report
Explanation:
51)
A ________ is a process that helps the project team monitor and control the work being
performed in accordance to the project management plan.
51)
Answer:
project management methodology
Explanation:
9
52)
________ is the process of identifying, evaluating, and managing changes that occur from
project initiation through project closure.
52)
Answer:
Integrated change control
Explanation:
53)
A ________ is a scope control technique that ensure that the requested changes to a project
and product scope are thoroughly considered before being implemented.
53)
Answer:
configuration management system
Explanation:
54)
Part of the ________ procedure includes training the end users and other organizational
members on use of the new product.
54)
Answer:
handover
Explanation:
55)
Formal signed-off ________ helps prevent a project from going on and on without ever
truly being finished.
55)
Answer:
closure
Explanation:
56)
Outsourcing of ________ to a third party from outside the organization can help reduce the
political consequences of whistle blowing.
56)
Answer:
project audits
Explanation:
57)
The approved project schedule is also referred to as schedule ________.
57)
Answer:
baseline
Explanation:
58)
________ are items or activities that will still need to be addressed but, because of their
nature, may need to be addressed by the clients themselves of assigned to a team member
to attend after the official project handover.
58)
Answer:
Outstanding items
Explanation:
59)
A ________ is a tool for controlling a project that involves recording information such as
requested changes by the client, completion dates of deliverables, and so on.
59)
Answer:
project log
Explanation:
60)
Cost control is the process of monitoring cost performance to ensure that only appropriate
changes are included in the modified ________.
60)
Answer:
cost baseline
Explanation:
61)
The withholding of information for fearing negative consequences is also known as the
________.
61)
Answer:
mum effect
Explanation:
10
62)
________ is the process of delivering the project to the client and training the personnel to
use it.
62)
Answer:
Handover
Explanation:
63)
Project closure is the final implementation and training related to the project, getting
acceptance and ________ on the project, and archiving of the project's results.
63)
Answer:
signoff
Explanation:
64)
For ________ projects, the dogmatic philosophy of project control may be most
appropriate.
64)
Answer:
large, complex
Explanation:
65)
________ is a formal process for assuring that only agreed-upon changes are made to the
project's scope.
65)
Answer:
Scope control
Explanation:
66)
A ________ is a document that is usually completed 6-12 months after implementation as a
check on whether the outcomes of the project were as expected, whether ongoing costs are
as expected, and whether implementing the product yields net benefits.
66)
Answer:
post-implementation review
Explanation:
67)
For ________ projects, the laid-back philosophy of project control may be most
appropriate.
67)
Answer:
relatively small
Explanation:
68)
________ is the process of identifying, analyzing, and planning for new risks, keeping track
of identified risks, reanalyzing existing risks, monitoring trigger conditions for contingency
plans, monitoring residual risks, and reviewing the executing of risk responses.
68)
Answer:
Risk monitoring and control
Explanation:
69)
A ________ system is a formal, documented process that describes the procedures for
changing the project scope and product scope.
69)
Answer:
change control
Explanation:
70)
Earned value management measures project performance over time, and provides a way to
forecast future performance base on ________.
70)
Answer:
past performance
Explanation:
71)
________ are estimates or predictions of conditions or events in the project's future.
71)
Answer:
Forecasts
Explanation:
11
72)
________ is the process of setting procedures and rules in place for controlling changes to
the project schedule.
72)
Answer:
Schedule control
Explanation:
73)
The ________ change system provides the procedures by which changes can be made to
the cost baseline.
73)
Answer:
cost control
Explanation:
74)
The 80/20 rule is another name for ________.
74)
Answer:
Pareto's law
Explanation:
75)
Project control is the process of monitoring and ________ project progress and influencing
the plan to account for any discrepancies between planned progress and actual progress.
75)
Answer:
measuring
Explanation:
76)
The results of the perform quality control process can also lead to new ________.
76)
Answer:
change requests
Explanation:
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
77)
A network diagram can be used to compare the planned and actual project schedule information.
77)
Answer:
True
False
Explanation:
78)
The longer a problem persists, the more costly and difficult will it be to resolve.
78)
Answer:
True
False
Explanation:
79)
Pareto's law states that 80% of the causes are the reason for 20% of the problems.
79)
Answer:
True
False
Explanation:
80)
Blowing the whistle is encouraged in most companies.
80)
Answer:
True
False
Explanation:
81)
If AC is greater than EV, this means that the project is currently coming in under budget.
81)
Answer:
True
False
Explanation:
82)
In earned value management, all indexes should be below 100%.
82)
Answer:
True
False
Explanation:
12
83)
In earned value management, for all variances, negative values indicate potential problems.
83)
Answer:
True
False
Explanation:
84)
Withholding bad news for the fear of bad consequences is known as the deaf effect.
84)
Answer:
True
False
Explanation:
85)
The laid-back philosophy may be best suited for small projects.
85)
Answer:
True
False
Explanation:
86)
When management ignores negative information, being reluctant to hear the whistle, this is know
as deaf effect.
86)
Answer:
True
False
Explanation:
87)
A Pareto diagram helps to identify the causes of the problems occurring most frequently.
87)
Answer:
True
False
Explanation:
88)
A CPI under 100% means that the project will finish over budget.
88)
Answer:
True
False
Explanation:
89)
A project manager's personal log contains information such as meeting times and outcomes,
changes requested by the client, and so on.
89)
Answer:
True
False
Explanation:
90)
The post-implementation review is part of the end report.
90)
Answer:
True
False
Explanation:
91)
Variance analysis is an umbrella term referring to a set of techniques that can be used to determine
the status of the various project management areas to evaluate the differences between the planned
baselines and the actual results.
91)
Answer:
True
False
Explanation:
92)
Recommended corrective actions are documented recommendations needed to bring future project
performance into conformance with the project management plan.
92)
Answer:
True
False
Explanation:
93)
The results of the perform quality control process can also lead to new change requests.
93)
Answer:
True
False
Explanation:
13
94)
A formal signed-off closure helps prevent a project from going on and on without ever truly being
finished.
94)
Answer:
True
False
Explanation:
95)
An SPI under 100% means that the project will finish behind schedule.
95)
Answer:
True
False
Explanation:
96)
The cost baseline is a time-phased budget that is used to measure and monitor cost performance.
96)
Answer:
True
False
Explanation:
97)
The estimated cost at completion is calculated by dividing the CPI by the BAC.
97)
Answer:
True
False
Explanation:
98)
If EV is greater than the PV, then SV is positive and the project is ahead of schedule.
98)
Answer:
True
False
Explanation:
99)
Project risk audits are usually only performed during project execution.
99)
Answer:
True
False
Explanation:
100)
One common determinant for the most appropriate project control philosophy is project size.
100)
Answer:
True
False
Explanation:
101)
A negative CV means that it cost more to perform the work than was planned for
101)
Answer:
True
False
Explanation:
102)
A personal log can be kept in the form of notes, voice recordings, or even in a journal or diary form.
102)
Answer:
True
False
Explanation:
103)
The pragmatic philosophy of control is best suited for large projects.
103)
Answer:
True
False
Explanation:
104)
Project control techniques span all preceding project life cycle phases, as well as overlap with many
project management knowledge areas.
104)
Answer:
True
False
Explanation:
105)
User training usually occurs after project handover.
105)
Answer:
True
False
Explanation:
14
106)
Approved preventive actions are documented and authorized guidelines necessary to bring future
performance into conformance with the project management plan.
106)
Answer:
True
False
Explanation:
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
107)
What are the different tools and techniques used for performing quality control, and how are they used?
Answer:
The tools and techniques recommended for the PMBOK's perform quality control include the
cause-and-effect diagram, control charts, flowcharting, histograms, Pareto charts, run charts, scatter
diagrams, statistical sampling, inspection, and defect repair reviews. Cause and effect (fishbone)
diagrams are a diagramming technique used to explore potential and real causes of problems. The
fishbone diagram typically organizes problems into categories relevant to the industry and allows project
team members to work backward from major problems (outputs) to identify potential causes (inputs). As
illustrated in the figure, a delay in a corporate intranet implementation could be traced back to a variety
of potential problem areas, including personnel, materials, methods, and environmental factors. Each of
these main factors could in turn be the result of several different issues. Personnel problems might
include inexperienced programmers, too few people working on the project, or personality conflicts
among those working on the project. Similarly, materials related issues causing project delays might
include delays in hardware shipments, incorrect shipments, or materials damaged in transit.. Fishbone
diagrams are a tool for structuring the project team's thinking about potential problem areas and then
uncovering the specific causes of problems in those areas.
Control charts are graphical, time-based charts used to display process results. These charts can be used
to determine whether process deviations are the result of random or systematic causes. Normally
fluctuations around the mean, or target value, on such a chart will be random. Control charts provide a
visual tool for the project team to examine these fluctuations. Sudden systematic results on one side of the
target value might require an investigation by the target team.
A flowchart is a graphical representation of a process. Flowcharting helps to analyze how problems
occur so that approaches can be developed to deal with them. A histogram is a bar chart showing a
distribution of variables, with the height of each column representing the relative frequency of a quality
problem. As an example, a histogram could be used to show categories of objects along with the
frequency of their occurrence. One such application of a histogram is a Pareto diagram, which shows the
various types of problems being encountered in a project, along with each problem's frequency. Pareto
diagrams were named based on Pareto's law, or the 80/20 rule, which states that 80 percent of problems
are the result of 20 percent of the causes. By helping identify those problems occurring most frequently,
the Pareto diagram gives to the project team guidance on what problems are most critical to solve.
Run charts show trends in a process over time, variation over time, or declines or improvements in a
process over time. These charts are used for trend analysis. A scatter diagram represents the pattern of
relationship between two variables. The quality team can use this tool to study and identify the possible
relationship between changes observed in the variables. Statistical sampling involves selecting a random
sample from a population in order to infer characteristics about that population. Such sampling might be
integrated into a scatter plot. Inspection consists of measurement and testing procedures to determine
whether results conform to the particular project standards. Inspection should be performed throughout
the project and throughout each of the project phases. Defect repair review is an action taken to ensure
that the project defects are repaired and brought into compliance with standards.
15
108)
How can CPI and SPI help to estimate the cost at completion and time to complete the project?
Answer:
To compute the estimated cost at completion, the additional piece of information required is the budget
at completion (BAC), or the total budgeted cost of the project. To compute the estimated cost at
completion (EAC), the budget at completion (BAC) is divided by the cost performance index (CPI) for the
current project status (EAC = BAC ÷CPI). As an example, if the originally anticipated cost (BAC) is
$100,000 and the project CPI is .80, then the EAC is $125,000 (i.e., the cost is running over budget). To
compute the estimated time to complete (ETC), the additional piece of information required is the
original time estimate for completion of the project. The estimated time to completion is calculated by
dividing the estimate for completion by the schedule performance index (SPI), (ETC =Original Time
Estimate ÷SPI).
109)
What is project closure and why is it important?
Answer:
Project closure involves the final implementation and training related to the project, getting acceptance
and signoff on it, and finally archiving the results of the project and lessons learned.
Project closure may seem to be a noncritical step, but successful project managers fully embrace the
closure process when finishing a project. It may seem obvious that the handover of the project needs to
occur for the project to end, but what might happen if the handover is inadequate? Part of the handover
procedure includes training the end users and other organizational members on the use of the new
product. If that step is glossed over, all of your hard work may be worthless. Hence, proper training and
adequate installation and support for an appropriate period of time following the handover are required
to ensure that the client organization can adequately implement its new system or product. In addition,
formal signed-off closure helps prevent a project from going on and on without ever truly being finished.
Another issue to consider during the closure process is the documentation and archiving of the project
management methods you have used. As a project team member or manager, you can expect to take part
in future projects. It is very likely that in these future projects, you will encounter issues and problems
similar to those you encountered during the current project. Two years from now, you might face a
problem like one you faced on the current project, but after two years, it may be difficult to remember
how you dealt with the problem originally. Furthermore, your approach to the problem might have been
ineffective, and in this case, the lesson you learned was not to address that problem in the same manner if
it came up again. While we all think that we'll surely remember the details of such problems, the reality
is that most project managers are constantly juggling many balls; thus, keeping documentation on lessons
learned helps prevent you from repeating mistakes, allows you to concentrate on other issues, and finally
provides your organization with knowledge transfer on how to approach such issues in the future. By
not following through with these closure procedures, you set yourself up to repeat mistakes and produce
products that are insufficient for the needs of the client. Further, good project closure activities allow you
to better assess whether you met client needs and then document how to enhance your success with
clients in the future.
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110)
What are the different tools and techniques used for risk monitoring and control, and how are they used?
Answer:
The tools and techniques that may be used during risk monitoring and control; they include risk
reassessment, risk audits, variance and trend analysis, technical performance measurement, reserve
analysis, and status meetings. Risk reassessment involves evaluating new risks as the project progresses
because new risks may emerge and additional response planning may be required to deal with them.
Risk reassessment may be part of a regularly planned project team meeting, where team members are
asked if existent risks have changed or if there are new risks that need to be dealt with.
Designed to evaluate the effectiveness of risk strategies as well as risk owners, project risk response audits
are often conducted during different phases of the project life cycle to examine and document the
effectiveness of the risk responses. Variance analysis, as discussed earlier, allow the project team to
identify deviations from the baseline plan. Large deviations should be carefully investigated, and
corrective actions should be taken to bring performance in conformance to the plan. Trend analysis is
done by having the project team examine performance data over time to determine whether performance
is ameliorating or deteriorating. Technical performance measurement is a particularly important tool in
IS development projects. If performance metricssuch as the accuracy of inventory updates when
implementing a new corporate-wide inventory systemdo not meet the goals associated with a specific
project milestone, risks to the schedule may be indicated. Reserve analysis is a comparison of the amount
of contingency reserves remaining to the amount of risk remaining at any time in the project. As an
example, a large information systems project done for a major petroleum company may literally have
financial contingency reserves in the millions of dollars; however, if risk is high (which might be revealed
through a tool such as trend analysis, discussed earlier) these contingency reserves may still not be
sufficient. Reserve analysis allows the project team to determine whether the remaining reserve is
adequate. Status meetings are an important part of communicating, monitoring, and controlling projects.
Project risk management should be discussed at these meetings because risk management becomes easier
the more it is practiced and because talking more about risks becomes easier and more accurate with
frequent discussions
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