Information Technology Project Management 5e – Marchewka
Chapter 8: Managing Project Stakeholders and
Communication
True/False
1. The project manager must have a clear picture of how the actual progress or work
compares to the baseline plan in order to make well-informed decisions, take
appropriate actions, or to make adjustments to the project plan.
a. True
b. False
2. If a stakeholder has been judged to adversarial and having a vested interest in the
failure of your project, it would probably be wise to keep him/her out of the
communication loop.
a. True
b. False
3. All of the project stakeholders should receive exactly the same information
regarding the project’s progress in order to eliminate any miscommunication.
a. True
b. False
4. The project communications plan may be informal depending on the needs of the
project stakeholders and the size of the project.
a. True
b. False
Information Technology Project Management 5e – Marchewka
5. A project metric should be obtained from observable, quantifiable data that allows
the team and other stakeholders to gauge the efficiency and effectiveness of the
work being done.
a. True
b. False
6. One attribute of a good project metric is that it should be subjective so that a
stakeholder can understand the project manager’s personal opinion or insight as to
how the project is progressing.
a. True
b. False
7. A good project metric should be understandable, quantifiable, cost effective,
proven, and be effective.
a. True
b. False
8. Generally, the more metrics one adopts, the greater the project control.
a. True
b. False
9. Planned value (PV) is the planned or budgeted cost of work scheduled for an
activity or component of the WBS.
a. True
Information Technology Project Management 5e – Marchewka
b. False
10. Earned value provides a performance measurement that tells us how much of the
budget we really should have spent for the work completed so far.
a. True
b. False
11. Budget At Completion (BAC) is the total planned cost of a project.
a. True
b. False
12. As a project manager, you would be pleased see a Cost Performance Index CPI
less than one (1) for your project.
a. True
b. False
13. The Schedule Performance Index (SPI) for our project is greater than one (1) and
so we would anticipate that all other things being equal, our project will finish
ahead of schedule.
a. True
b. False
Information Technology Project Management 5e – Marchewka
14. The schedule variance (SV) shows the difference between the current progress of
the project and its original or planned value.
a. True
b. False
15. A cost variance (CV) can be positive or negative, but never zero.
a. True
b. False
16. The Expected Time Complete (ETC) provides an estimate for completing the
scheduled work that remains.
a. True
b. False
17. The Estimate At Completion (EAC) is a project metric that can be used to
estimate the most likely total or final cost of the project based on the project’s
performance and any risks that should be considered.
a. True
b. False
18. The purpose of a project review is to not only show evidence that the project work
is being completed, but also that the work is being completed according to various
standards or agreed upon requirements.
a. True
b. False
Information Technology Project Management 5e – Marchewka
19. Given the advances that have been made in telecommunications and IT
technology in general, there is little value or necessity today for Face-to-Face
(F2F) meetings.
a. True
b. False
Information Technology Project Management 5e – Marchewka
Multiple Choice
1. Which of the following is not likely a characteristic of a good project metric?:
a) Understandable
b) Quantifiable
c) Cost Effective
d) Subjective
e) High Impact
2. Earned Value tells us __________
a) how much we actually spent for work completed
b) how much we budgeted to spend at the beginning of the project
c) how much of the budget we have left to spend on the project
d) how much of the budget we really should have spent on the work completed so
far
e) None of these
3. Budget At Completion (BAC) is __________
a) how much we actually spent for work completed
b) how much we budgeted to spend at the beginning of the project
c) how much of the budget we have left to spend on the project
d) how much of the budget we really should have spent on the work completed so
far
e) None of these
4. Actual Cost (AC) is __________
a) how much we actually spent for work completed
Information Technology Project Management 5e – Marchewka
b) how much we budgeted to spend at the beginning of the project
c) how much of the budget we have left to spend on the project
d) how much of the budget we really should have spent on the work completed so
far
e) None of these
5. Cost Variance (CV) is __________
a) how much we actually spent for work completed
b) how much we budgeted to spend at the beginning of the project
c) how much of the budget we have left to spend on the project
d) how much of the budget we really should have spent on the work completed so
far
e) the difference between the estimated cost and how much we have actually
spent
6. Schedule Variance (SV) is __________
a) how much time it took to complete the work
b) how long we expected the task to take
c) how much time we have left to complete the project
d) how much time it should have taken to complete the task
e) the difference between the current progress and the original schedule
7. Expected Time to Completion (ETC) is __________
a) how much time it took to complete the work
b) how long we expected the task to take
c) how much time we have left to complete the project
d) how much time it should have taken to complete the task
e) how much longer it will take to complete the project
Information Technology Project Management 5e – Marchewka
8. Estimate at Completion (EAC) is __________
a) how much we actually spent for work completed
b) how much we budgeted to spend at the beginning of the project
c) how much of the budget we have left to spend on the project
d) how much of the budget we really should have spent on the work completed so
far
e) how much we spent to complete the project
9. The budgeted cost of work scheduled for an activity or component of the WBS is
the _____.
a) Planned Value (PV)
b) Budget At Completion (BAC)
c) Actual Cost (AC)
d) Expected Time Complete (ETC)
e) Estimate at Completion (EAC)
10. The metric that provides an estimate of the most likely total or final cost of the
project based on the project’s performance and any risks that should be
considered is the:
a) Planned Value (PV)
b) Budget At Completion (BAC)
c) Actual Cost (AC)
d) Expected Time Complete (ETC)
e) Estimate at Completion (EAC)
Information Technology Project Management 5e – Marchewka
11. The cost incurred for completing a scheduled task or WBS component is the
a) Planned Value (PV)
b) Budget At Completion (BAC)
c) Actual Cost (AC)
d) Expected Time Complete (ETC)
e) Estimate at Completion (EAC)
12. The total planned cost of the project is computed before the project work begins.
This metric is called the:
a) Planned Value (PV)
b) Budget At Completion (BAC)
c) Actual Cost (AC)
d) Expected Time Complete (ETC)
e) Estimate at Completion (EAC)
13. A metric that provides an estimate for completing the scheduled work that
remains once the project is started is called the
a) Planned Value (PV)
b) Budget At Completion (BAC)
c) Actual Cost (AC)
d) Expected Time Complete (ETC)
e) Estimate at Completion (EAC)
14. If you hired a consulting firm to develop a system which is estimated to take
four months to complete with the tasks evenly divided over the four months and
Information Technology Project Management 5e – Marchewka
you agree to pay for the project with equal monthly installments, those payments
would be called:
a) Planned Value (PV)
b) Budget At Completion (BAC)
c) Actual Cost (AC)
d) Earned Value (EV)
e) None of these
15. If we know the Actual Cost of a WBS component, what other value do we need to
know in order to calculate the cost performance index (CPI)?
a) Budget at Completion (BAC)
b) Budget costs of remaining work (BCRW)
c) Schedule Variance (SV)
d) Expected Time Complete (ETC)
e) Earned Value (EV)
16. Cost Variance (CV) = Earned Value – ___________.
a) Budget at Completion (BAC)
b) Budgeted cost of remaining work (BCRW)
c) Schedule Variance (SV)
d) Actual Cost (AC)
e) None of these
17. EV-AC =
a) Cost performance index (CPI)
b) Scheduled performance index (SPI)
c) Cost Variance (CV)
Information Technology Project Management 5e – Marchewka
d) Minimum funds needed (MFN)
e) None of these
18. Barring a change in project scope and given a Cost Performance Index (CPI) that
is less than 1, the most reasonable inference to draw is that:
a) The project will likely finish earlier than planned.
b) The project will likely finish later than planned.
c) The project will likely cost more than planned.
d) The project will likely cost less than planned.
e) The project will likely be on time and on budget.
19. Barring a change in project scope and given a Schedule Performance Index (SPI)
that is greater than 1, the most reasonable inference to draw is that:
a) The project will likely finish earlier than planned.
b) The project will likely finish later than planned.
c) The project will likely cost more than planned.
d) The project will likely cost less than planned.
e) The project will likely be on time and on budget.
20. A _________ shows how the scope, features or functionality, or work is being
completed over time.
a) Budget report
b) Status report
c) Progress report
d) Forecast report
e) Burn-down Chart
Information Technology Project Management 5e – Marchewka
21. A _________ is a formal or informal meeting that shows evidence of project work
that has been completed and work and provides a forum for surfacing issues,
problems, decision-making.
a) Budget report
b) Project review
c) Progress report
d) Forecast report
e) News report
22. A _________ describes the present state of the project and provides compares the
project’s actual progress to the baseline plan.
a) Budget report
b) Status report
c) Progress report
d) Forecast report
e) News report
23. A _________ predicts the future status or progress of the project.
a) Budget report
b) Status report
c) Progress report
d) Forecast report
e) News report
24. Information distribution includes all of the following EXCEPT:
Information Technology Project Management 5e – Marchewka
a) Face-To-Face Meetings
b) Telephone, e-mail, and other wireless devices
c) Web-based technologies
d) None of these are examples of information distribution
e) All of these are examples of information distribution
Information Technology Project Management 5e – Marchewka
Short Answers
1. Why should a project manager be concerned with monitoring a project’s
progress?
2. Why is effective and efficient communication vital to a project?
3. What is the purpose of a project communications plan? What kinds of things
should this plan address?
4. What are project metrics?
5. Describe the qualities of a good project metric.
Information Technology Project Management 5e – Marchewka
6. Describe the concept of earned value.
7. What is Planned Value (PV)?
8. What is Actual Cost (AC)?
9. What is Budget at Completion (BAC)?
10. Describe how the SPI and CPI can be used to forecast the final cost of a project.
Information Technology Project Management 5e – Marchewka
11. What is a project review and what purpose does it serve?
12. What is a status report?
13. What is a progress report?
14. What is a forecast report?
Information Technology Project Management 5e – Marchewka
Essay Questions
1. Why is communications among project stakeholders so important?
2. Why would a project manager be unwilling to share bad news about unexpected
problems with senior management or other high profile stakeholders?
3. Sketch out a table with headings that represent the essential elements of a project
communications plan. Fill in a hypothetical entry under each heading.
4. What are the characteristics of a good project metric?
5. Explain the concept of Earned Value and illustrate it with hypothetical values.
6. How is the Cost Performance Index calculated and what can one learn from
computing it?
7. How is the Schedule Performance Index calculated and what can one learn from
computing it?
8. Briefly describe the common categories of project reporting.
9. What are the strengths and weaknesses of the major information distribution
channels covered in the text?