project mnagement

34
Q.No. Ques Option (a) Option (b) Option (c) 1 That which formalizes acceptance and bnngs project to an orderly end is a control process planning process executing process 2 …..is the master key of today’s bus iness project risk time 3 A Gantt chart is useful in determining __________ The level of effort for a task When a task starts and stops How tasks are related to each other 4 Which of the following is involved in economic feasibility? Benefit-cost analysis Breakeven analysis Tangible and intangible aspects 5 Which of the following is not a characteristic of a project? Projects are responsible for the newest and most improved products, services, and Organizational processes Projects are ad- hoc endeavors with a clear life cycle Projects provide a philosophy and strategy for the management of change 6 Which of the following is also referred to as net present value method? Discounted Cash Flow Pay Back Period Discounted Cash Flow 7 All of the following factors affect the estimation decision EXCEPT Size of Project Size of Team Past Experience 8 The critical path of a network is the Path with the most activities Longest time path through the network Path with the fewest activities Project Management Sec A(without case study) Course Code : ABF 304

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Page 1: Project Mnagement

Q.No. Ques Option (a) Option (b) Option (c)

1 That which formalizes

acceptance and bnngs

project to an orderly end is

a

control process planning

process

executing

process

2 …..is the master key of

today’s bus iness

project risk time

3 A Gantt chart is useful in

determining __________

The level of effort for

a task

When a task

starts and

stops

How tasks are

related to each

other

4 Which of the following is

involved in economic

feasibility?

Benefit-cost analysis Breakeven

analysis

Tangible and

intangible

aspects

5 Which of the following is

not a characteristic of a

project?

Projects are

responsible for the

newest and most

improved products,

services, and

Organizational

processes

Projects are ad-

hoc endeavors

with a clear life

cycle

Projects

provide a

philosophy and

strategy for the

management

of change

6 Which of the following is

also referred to as net

present value method?

Discounted Cash Flow Pay Back

Period

Discounted

Cash Flow

7 All of the following factors

affect the estimation

decision EXCEPT

Size of Project Size of Team Past

Experience

8 The critical path of a

network is the

Path with the most

activities

Longest time

path through

the network

Path with the

fewest

activities

Project Management

Sec A(without case study)

Course Code : ABF 304

Page 2: Project Mnagement

9 Which of the following

statements regarding

project selection is best?

Decision models must

contain either

objective or

subjective factors

Organizational

reality can be

perfectly

captured by

most decision-

making models

Before

selecting any

project, the

team should

identify all the

relevant issues

that play a role

in project

selection

10 Which of the following

items involves the

quantitative aspects of

planning?

Budget development Project

administration

Leadership

styles

11 Which of the following

presents the risks and

returns associated with the

project so the Prospective

members can evaluate

them

Project Plan Scope

statement

Feasibility

Study

12 Which of the following is a

plan that shows how

money will be spent over a

certain period of time

Cost Allocation Budget Financing

13 All of the following are the

examples of a project

EXCEPT

The development and

introduction of a new

services

The

development

of a

management

information

system

The

introduction of

an

improvement

to an existing

process

14 Which of the following

best defines the “Planning”

function of Management?

The process of setting

objectives in any

project & then

determining what

should be done to

accomplish them

The process of

assigning tasks,

allocating

resources, &

arranging

coordinated

activities to

implement

plans

The process of

arousing

enthusiasm

and directing

HR efforts

toward

project/organiz

ational goals

Page 3: Project Mnagement

15 In which of the following

phases, the company calls

upon the experience and

creativity of its technicians,

manager and directors to

generate an adequate

group of alternatives to

fulfill the expressed need?

Preliminary

Formulation of the

Alternatives

Definition of

the

Requirement

of Opportunity

Initial Selection

of Alternatives

16 Risks will be identified

during which risk

management process(es)?

Quantitative risk

analysis and risk

identification

Risk

identification

and risk

monitoring

and control

Qualitative risk

analysis and

risk monitoring

and control

17 Who is ultimately

responsible for quality

management on the

project?

Project engineer Project

manager

Quality

manager

18 The project manager is

making sure that the

product of the project has

been completed according

to the project

management plan. What

part of the project

management process is he

in?

Planning Executing Monitoring

and controlling

19 All of the following are

characteristics of a project

EXCEPT

Temporary Definite

beginning and

end

Interrelated

activities

20 The equivalent of cost

reimbursable contracts is

frequently termed

Back charge contracts Fixed price

contracts

Progress

payment

contracts

21 Purchasing insurance is

considered an example of

risk

Mitigation Transfer Acceptance

22 A cost performance index

(CPI) of 0.89 means

At this time, we

expect the total

project to cost 89

percent more than

planned

When the

project is

completed we

will have spent

89 percent

more than

planned

The project is

only

progressing at

89 percent of

that planned

Page 4: Project Mnagement

23 The project management

process groups are:

Initiating, planning,

expediting, and

control

Plan, organize,

develop, and

control

Plan, do,

observe,

commit

24 Quality is Meeting and

exceeding the

customer's

expectations

Adding extras

to make the

customer

happy

The degree to

which the

project meets

requirements

25 To control the schedule, a

project manager is

reanalyzing the project to

predict project duration.

She does this by analyzing

the sequence of activities

with the least amount of

scheduling flexibility. What

technique is she using

Critical path method Flowchart Precedence

diagramming

26 A project manager has

assembled the project

team, identified 56 risks on

the project, determined

what would trigger the

risks, rated them on a risk

rating matrix, tested their

assumptions and assessed

the quality of the data

used. The team is

continuing to move

through the risk

management process.

What has the project

manager forgotten to do?

Simulation Risk mitigation Overall risk

ranking for the

project

27 If project A has a net

present value (NPV) of U.S.

$30,000 and project B has

an NPV of U.S. $50,000,

what is the opportunity

cost if project B is

selected? $23,000 $30,000 $20,000

Page 5: Project Mnagement

28 A project manager is

quantifying risk for her

project. Several of her

experts are offsite, but

wish to be included. How

can this be done?

Use Monte Carlo

analysis using the

Internet as a tool

Apply the

critical path

method

Determine

options for

recommended

corrective

action

29

A project manager is using

weighted average duration

estimates to perform

schedule network analysis.

Which type of

mathematical analysis is

being used? Critical path method PERT Monte Carlo

30 An activity has an early

start (ES) of day 3, a late

start (LS) of day 13, an

early finish (EF) of day g,

and a late finish (LF) of day

if. The activity is on the critical path has a lag

is progressing

well

31

In the Monte Carlo

technique, what is the

criticality index?

The number of days

the project will be

late divided by the

project duration

The percent of

time a given

activity will be

on the critical

path

The percent of

time an activity

will be late

32 Which phase of the project

is likely to have the

greatest amount of its

funding spent? Initiating Executing Planning

33

A control chart shows

seven data points in a row

on one side of the mean.

What should be done?

Perform a design of

experiments

Adjust the

chart to reflect

the new mean

Find an

assignable

cause

34

Which of the following

represents the estimated

value of the work actually

Accomplished ? Earned value (EV)

Planned value

(PV)

Actual cost

(AC'

Page 6: Project Mnagement

35 A project team has

completed, and the

customer has accepted,

the completed project

scope. However, the

lessons learned required

by the project

management office have

not been completed. What

is the status of the

project?

The project is

incomplete because

the project needs to

be re-planned

The project is

incomplete

until all project

and product

deliverables

are complete

and accepted

The project is

complete

because the

customer has

accepted the

deliverables

36

You are managing a project

in a just in time

environment. This will

require more attention,

because the amount of

inventory in such an

environment is generally 45 percent lo percent 12 percent

37

Social cost benefit analysis

has been introduced to

develop systematic ways

of analyzing ______and

________of factors which

do not have market prices Profit and losses

Cost and

benefits

Positive and

negative

38

. A task was scheduled to

use two persons, full time,

and take two weeks to

complete. Instead, the

project manager was only

able to assign one person

to this task. At the end of

two weeks, the person

assigned to the task was

75% complete. What is the

cost performance index? 0.75 1.5 0.25

39 Which of the following is

considered to be a

simulation technique? PERT analysis GERT analysis

Monte Carlo

analysis

Page 7: Project Mnagement

40 Extensive use of

____________

communication is most

likely to aid in solving

complex problems verbal written formal

41

Project A has an internal

rate of return (IRR) of 21

percent. Project B has an

IRR of 7 percent. Project C

has an IRR of 31 percent.

Project D has an IRR of ig

percent. Which of these

would be the BEST

project? Project A Project B Project C

42

When checking the

calendar of a team

member to schedule a

meeting, you see she has

scheduled a meeting with

a key stakeholder that you

were not informed of. The

best approach would be to

Avoid mentioning it

to the team member

but continue to watch

her activities

Notify your

boss about the

problem

Address the

concern with

the team

member's boss

43

The program evaluation

and review technique

(PERT) method of

scheduling differs from the

critical path method (CPM)

because the PERT method

Uses weighted

averages of activity

durations to calculate

project duration

Uses

..dummy..

activities to

represent logic

ties

Uses ..free

float.. instead

of ..total float..

in the schedule

calculations

44

A project manager would

like to manage his project

in such a way that he will

be able to identify specific

tasks that should be

watched and managed

more closely than others.

The project manager

should use which method? The PERT method

The critical

path method

The GERT

method

Page 8: Project Mnagement

45

. The act of doing anything

that will help to bring

future project

performance into line with

the project plan is called Budget update

Revised cost

estimate

Corrective

action

46

A project manager is using

a cause and effect diagram

with the team to

determine how various

factors might be linked to

potential problems. In

what part of the quality

management process is

the project manager

involved? Quality analysis

Perform

quality

assurance

Perform

quality control

47

In, ____________we see

whether return or benefits

on this investment are

more than its cost from

point of view of society in

which we are living

Social cost benefit

analysis

Cost benefit

analysis Profit analysis

48

Resource leveling will

generally

Reduce the time

needed to do the

project

Increase the

total time

necessary to

do all the tasks

Reduce the

overutilization

of resources

49 If all planned work has

been completed or

earned,What is the

schedule variance? 1% 0% 10%

50

A project whose

acceptance

does not prevent or

require the acceptance of

one or more alternative

projects is referred to as

__________

a mutually exclusive

project

an

independent

project

a dependent

project

Page 9: Project Mnagement

51

When operating under a

single-period capital-

rationing constraint, you

may first want to try

electing projects by

descending order of their

__________ in order to

give yourself the best

chance to select the mix of

projects that adds most to

firm value profitability index (PI)

net present

value (NPV

Internal rate of

return (IRR)

52

Which of the following

statements is correct

regarding the internal rate

of return (IRR) method?

Each project has a

unique internal rate

of return

As long as you

are not dealing

with mutually

exclusive

projects,

capital

rationing, or

unusual

projects having

multiple sign

changes in the

cash-flow

stream, the

internal rate of

return method

can be used

with

reasonable

confidence

The internal

rate of return

does not

consider the

time value of

money

53

Which of the following

is not a potential for a

ranking problem between

two mutually exclusive

projects?

The projects have

unequal lives that

differ by several years

The costs of

the two

projects differ

by nearly 30%.

The two

projects have

cash flow

patterns that

differ

dramatically

54

The three phases involved

in the management of

large projects are

Scheduling,

operating, evaluating

Planning,

scheduling,

evaluating

Scheduling,

designing,

operating

Page 10: Project Mnagement

55

With respect to PERT and

CPM, slack

Is a task or subproject

that must be

completed

Marks the start

or completion

of a task

Is the amount

of time a task

may be

delayed

without

changing the

overall project

completion

time

56

A dummy activity is

required when

The network contains

two or more activities

that have identical

starting and ending

events

Two or more

activities have

different

ending events

Two or more

activities have

the same

ending events

57

Which of the following is a

basic assumption of PERT?

There is only one

complete route from

the start of a project

to the end of a

project

No activity in

the network

must be

repeated

Activity

completion

times are

known with

certainty

58

PERT analysis computes

the variance of the total

project completion time as

The sum of the

variances of all

activities on the

critical path

The sum of the

variances of all

activities in the

proje

The variance of

the final

activity of the

project

59 Which of the following

managers develop

operational plans for the

project? Top Managers

Middle

Manager Line Managers

60

Which of the following is a

direct responsibility of the

project manager?

Calculating

completion

probabilities for all

tasks in the project

Drawing the

network

diagram

Making sure

that the people

assigned to the

project receive

the motivation,

direction, and

information

needed to do

their jobs

Page 11: Project Mnagement

61

Which of the following is

the benefit of the network

analysis approach?

Derive error free

forecasts

Eliminate need

for

management

judgement

Allows

progress to be

monitored

against plan

62

A project can be

considered to have failed if

it

Overran significantly

on estimated delivery

date

Does not meet

the business

requirements

Does not meet

the users'

requirements

63

Which of the following

is not a reason to reduce

project completion time?

Reduce new product

development time to

market

Release

resources for

other projects

Avoid penalties

for late

completion

64 Which of the following is

especially useful for

monitoring project

progress against plan?

Capacity loading

graphs Gantt charts Flow diagrams

65

An individual with a

diverse set of skills--

management, leadership,

technical, conflict

management, and

customer relationship--

who is responsible for

initiating, planning,

executing, and closing

down a project best

defines

Chief information

officer Consultant

Project

scheduler

66

Identifying, assessing, and

managing the risks and day-

to-day changes that occur

during a project Best

defines which of the

following project manager

activities? Conflict management

Risk and

change

management

Team

management

67

Optimistic time refers to

the maximum period

of time for an activity

to be completed

the minimum

period of time

for an activity

to be

completed

the planner’s

“best guess” of

the amount of

time the

activity

actually will

require for

completion

Page 12: Project Mnagement

68

Which of the following is

not a true statement

regarding Network

diagrams?

The critical path of a

Network diagram is

represented by the

sequence of

connected activities

that produce the

longest overall time

period

All activities

with a slack

time equal to

zero are on the

critical path

Nodes not on

the critical

path can be

delayed (for

some amount

of time)

without

delaying the

final

completion of

the project

69

An example of a project

management system is Word Perfect

Microsoft

Office

Microsoft

Project for

Windows

70 Which of the following

slack times indicates that

an activity is on the critical

path?

1 10 0

71

In a CPM/PERT network a

dummy activity is

necessary when

a) two activities have

the same starting

node b) two

activities have

the same

ending node

c) a node does

not actually

connect to

another node

72 If an activity has zero

activity slack it

a) means that the

project is expected to

be delayed.

b) must be a

dummy

activity.

c) is on the

critical path.

73 Which of the following

is not a main project

objective? time cost structure

74

Capital rationing is:

When the financial

markets are told by

government not to

lend beyond imposed

limits

When funds

are not

available to

undertake all

the projects

put forward by

divisional

management

teams

When funds

are not

available to

finance all

wealth-

enhancing

projects

Page 13: Project Mnagement

75

A divisible project is:

One where the initial

investment funds

have to be divided

into very small

amounts

One where it is

impossible to

undertake a

fraction of the

project

One which may

be identified

with a

particular

division

76

The profitability index is:

Net present

value/Initial outlay

Initial

outlay/Gross

present value

Gross present

value/Net

present value

77

Which of the following is a

correct method of

adjusting for inflation

when calculating net

present value?

Estimate the future

cash flows by

multiplying by the

specific inflation of

each cash inflow and

outflow item and

then discount using

the real rate of return

Estimate the

cash flows in

real terms and

use a money

discount rate

Estimate the

cash flows in

money terms

and use a real

discount rate

78

If the money rate of return

is 8% and the anticipated

rate of inflation is 3%, the

real rate of return is: 5% 4.85% 11.24%

79

Which of the following

statements

is incorrect  regarding a

normal project?

If the NPV of a

project is greater

than 0, then its PI will

exceed 1.

If the IRR of a

project is 8%,

its NPV, using a

discount rate,

k, greater than

8%, will be less

than 0.

If the PI of a

project equals

0, then the

project's initial

cash outflow

equals the PV

of its cash

flows

80

A project whose

acceptance does not

prevent or require the

acceptance of one or more

alternative projects is

referred to as __________.

a mutually exclusive

project

an

independent

project

a dependent

project

Sec B(Case Study)

HP’s Account PMO Framework

Builds Worldwide Consistency

and Success

Page 14: Project Mnagement

HP Enterprise Services offers clients a variety of strategic IT services, including consulting, systems integration and

application development, as well as outsourcing support for everything from business processes to infrastructure. As one

of the largest divisions of HP, Enterprise Services works with more than 1,000 organizations in 90 countries, including

426 of the Fortune 500 companies.

“It’s the applied power of HP,” says Tomas Appelgren, Global PMO Account Lead for HP. “Our brand, our technical and

industry expertise, and our ability to handle the most complex environments.”

As part of its offerings, Enterprise Services has always provided project management office (PMO) support to its clients.

But starting in the early 2000s, the rules of the game changed — and a new global model was introduced.

A NEW TYPE OF PMO

In 2003, HP signed a deal with a large international company that was one of their largest outsourcing commitments.

As part of that deal, HP created a PMO for the large Transition and Transformation Program, which consists of all the

project activity that goes into HP assuming operational responsibility for the services and commitments the customer

desires. This PMO was referred to as an operational / supply PMO, providing project management best practices, tools

and procedures.

It quickly became apparent, however, that simply assuring a smooth transition wasn’t enough — another PMO would be

needed to manage the ongoing projects and programs within the account. This steady state / strategic / demand PMO

would make sure the account portfolio was delivering results within time, scope and budget restraints, and meeting the

client’s organizational and strategic goals.

HP recognized the value of both types of PMOs on all new deals, especially since it would allow them to standardize

project management best practices, tools, templates and processes across the entire Enterprise Services division.

So, they created a new global model to provide consistent, defined methods for:

■ The pursuit phase, during which HP provides accurate design and cost estimates for potential new clients when

working on new outsourcing deals.

■ The transition phase, during which HP implements the PMO at the start of a new deal with a customer.

■ The steady-state phase, during which HP runs the PMO ongoing between the start and the end of a deal.

HP launched this new Account PMO Framework in the EMEA region (Europe, Middle East and Africa) in 2004 and later

expanded it worldwide in 2010.

CASE STUDY2

HP’s Account PMO Framework Builds Worldwide Consistency and Success

THE ACCOUNT PMO FRAMEWORK

“Within Enterprise Services, our main business objective is to take on outsourcing for companies. We set up a new

account that interacts with the customer, and for every new account we set up a PMO,” says Appelgren. “It’s a challenge

to make sure all are set up in the same way globally, and meet the particular objectives for their respective companies.”

To do this, the Account PMO is started at the beginning of the account life cycle and set up to offer four main services to

clients:

■ Portfolio Management manages the portfolio of the account’s projects and programs, making sure they come

in on time, on budget and within scope.

■ Account Governance provides a way for both the client and the account team to mutually manage

expectations, relationships and services.

■ Account Risk Management deals with risks across the entire account, enabling HP and the client to prevent

and/or react to events that threaten the project portfolio.

■ Program PMO services provides client programs with project management best practices, tools and processes

during the Transition and Transformation stages.

The Account PMO does not function as a separate entity but is organized within the account team for the client it

supports. The exact size and structure varies depending on the complexity and demands of the client account itself. But

no matter how big or small the Account PMO may be, it still maintains regular contact with the customer. In particular,

the Account PMO manager and individual project managers routinely interact with their client counterparts to discuss

Page 15: Project Mnagement

statuses and progress, risks and open issues, and sign-offs and approvals.

This comprehensive portfolio of services offers a variety of benefits to clients, including:

■ Improved predictability and quality of project execution.

■ A sharper focus on risk management for both individual projects and the account as a whole.

■ Increased visibility for all projects for internal stakeholders.

■ Project deliverables tracking and control.

■ Hands-on management for project issues, decisions and actions.

■ Resource management to ensure that planned projects have what they need.

But perhaps the biggest benefit is the business value it provides:

■ The improved quality and predictability of project and program delivery improves customer satisfaction with the

finished product.

■ The client’s portfolio is managed and executed on time, on budget and within scope — making it easier for these

organizations to achieve their strategic goals.

81 PMO stands for

project management

officer

project

management

office

project

management

operation

82

Quality is defined

by_____________. customer

proposal

manager

higher

management

83

The emphasis is changed

from product to process at

______________ stage.

Inspection Quality control

Quality

management

84

Fitness to cost can be

obtained by:

Determining the

customer’s needs

Building of

customer

needed

products

Obtaining high

quality and low

cost products

85

___________ is the lowest

level of quality

development.

Quality Assurance

Quality

Management Inspection

Page 16: Project Mnagement

86

The main purpose of a

_______________ is to

function as a blueprint for

the group’s business

operations.

Business Plan

Feasibility

Study

Work

Breakdown

87

Which of the following

items involves the

quantitative aspects of

planning?

Budget development

Project

administration

Leadership

styles

88

Which of the following is

the discount rate that

equates the present values

of the two sets of flows? Discounted Cash Flow

Pay Back

Period

Discounted

Cash Flow

89

Which of the following is

the responsibility of

proposed project

manager?

Project Plan &

strategy

Description of

Project

Organization

Development

of

organizational

Chart

90

The three general

preconditions for achieving

lasting success as a project

manager are:

Technical Skills,

Ability, Human Skills

and Design Skill

Ability,

Motivation to

manage and

Opportunity

Motivation to

manage,

Opportunity

and

Conceptual

Skill

Page 17: Project Mnagement

Option (d)

closing process

information

Who is assigned to

do a task

All of the given

options

Traditional process

management

functions of

planning, organizing,

and controlling do

not apply to project

management

Internal Rate of

Return

Length of Schedule

Shortest time path

through the network

Page 18: Project Mnagement

Every decision model

has both objective

and subjective

factors

Conflict

management

Work Breakdown

Structure

Cost centers

A retailer re-stocks

the shelves after a

day of brisk sales

The process of

measuring

performance and

taking action to

ensure desired

results in any

project

Page 19: Project Mnagement

Project Termination

Phase

Risk identification

Team member

Closing

Repeats itself every

month

Cost plus contracts

Avoidance

The project is only

getting 89 cents out

of every dollar

invested

Page 20: Project Mnagement

Initiating, planning,

executing,

controlling, and

closeout

Conformance to

management's

objectives

Work breakdown

structure

Involvement of other

stakeholders

$50,000

Page 21: Project Mnagement

Apply the Delphi

Technique

Resource leveling

is not on the critical

path

The sum of the

duration of the

critical path activities

divided by the

project expected

value for duration

Closeout

Nothing. This is the

rule of seven and can

be ignored

Cost variance (CV)

Page 22: Project Mnagement

The project is

complete because

the project has

reached the due date

0 percent

Good and bad

1.15

Critical path method

Page 23: Project Mnagement

nonverbal

Project D

Address the concern

with the team

member

Uses bar charts

instead of logic

diagrams to portray

the schedule

The PCDM method

Page 24: Project Mnagement

Contingency

planning

Quality planning

Risk analysis

Reduce resources to

the lowest skill that

is possible

50%

a contingent project

Page 25: Project Mnagement

payback period (PBP)

The internal rate of

return is rarely used

by firms today

because of the ease

at which net present

value is calculated

One of the mutually

exclusive projects

involves replacement

while the other

involves expansion

Planning, scheduling,

controlling

Page 26: Project Mnagement

Is the latest time an

activity can be

started without

delaying the entire

project

Two or more

activities have the

same starting events

Only critical path

activities in the

network must be

performed

The sum of the

variances of all

activities not on the

critical path

Supervisors

Performing all of the

activities in the

project

Page 27: Project Mnagement

Avoid need to use

structured approach

Was significantly

over budget

Eliminate project

critical path

Network diagrams

Project manager

Customer relations

the average period

of time for an

activity to be

completed

Page 28: Project Mnagement

The latest expected

completion time

refers to the time in

which an activity can

be completed

without delaying the

project

Lotus 1-2-3

2

d) when two

activities share the

same starting and

ending node

d) all of the above

quality

When wealth is

destroyed because

capital repayments

on loans have to be

made earlier than

anticipated

Page 29: Project Mnagement

One where it is

possible to

undertake a fraction

of the project

Gross present

volume/Initial outlay

Estimate the cash

flows in real terms

and use a real

discount rate

11%

If the IRR of a project

is greater than the

discount rate, k, then

its PI will be greater

than 1.

a contingent project

Page 30: Project Mnagement

HP Enterprise Services offers clients a variety of strategic IT services, including consulting, systems integration and

application development, as well as outsourcing support for everything from business processes to infrastructure. As one

of the largest divisions of HP, Enterprise Services works with more than 1,000 organizations in 90 countries, including

“It’s the applied power of HP,” says Tomas Appelgren, Global PMO Account Lead for HP. “Our brand, our technical and

As part of its offerings, Enterprise Services has always provided project management office (PMO) support to its clients.

But starting in the early 2000s, the rules of the game changed — and a new global model was introduced.

In 2003, HP signed a deal with a large international company that was one of their largest outsourcing commitments.

As part of that deal, HP created a PMO for the large Transition and Transformation Program, which consists of all the

project activity that goes into HP assuming operational responsibility for the services and commitments the customer

desires. This PMO was referred to as an operational / supply PMO, providing project management best practices, tools

It quickly became apparent, however, that simply assuring a smooth transition wasn’t enough — another PMO would be

needed to manage the ongoing projects and programs within the account. This steady state / strategic / demand PMO

would make sure the account portfolio was delivering results within time, scope and budget restraints, and meeting the

HP recognized the value of both types of PMOs on all new deals, especially since it would allow them to standardize

project management best practices, tools, templates and processes across the entire Enterprise Services division.

■ The pursuit phase, during which HP provides accurate design and cost estimates for potential new clients when

■ The transition phase, during which HP implements the PMO at the start of a new deal with a customer.

■ The steady-state phase, during which HP runs the PMO ongoing between the start and the end of a deal.

HP launched this new Account PMO Framework in the EMEA region (Europe, Middle East and Africa) in 2004 and later

“Within Enterprise Services, our main business objective is to take on outsourcing for companies. We set up a new

account that interacts with the customer, and for every new account we set up a PMO,” says Appelgren. “It’s a challenge

to make sure all are set up in the same way globally, and meet the particular objectives for their respective companies.”

To do this, the Account PMO is started at the beginning of the account life cycle and set up to offer four main services to

■ Portfolio Management manages the portfolio of the account’s projects and programs, making sure they come

■ Account Governance provides a way for both the client and the account team to mutually manage

■ Account Risk Management deals with risks across the entire account, enabling HP and the client to prevent

■ Program PMO services provides client programs with project management best practices, tools and processes

The Account PMO does not function as a separate entity but is organized within the account team for the client it

supports. The exact size and structure varies depending on the complexity and demands of the client account itself. But

no matter how big or small the Account PMO may be, it still maintains regular contact with the customer. In particular,

the Account PMO manager and individual project managers routinely interact with their client counterparts to discuss

Page 31: Project Mnagement

This comprehensive portfolio of services offers a variety of benefits to clients, including:

■ A sharper focus on risk management for both individual projects and the account as a whole.

■ The improved quality and predictability of project and program delivery improves customer satisfaction with the

■ The client’s portfolio is managed and executed on time, on budget and within scope — making it easier for these

none of the above

Quality manager

Quality assurance

Developing quality

management

Total Quality

Management

Page 32: Project Mnagement

Structure

Conflict

management

Internal Rate of

Return

All of the given

options

Ability, Capacity and

Supervision

Page 33: Project Mnagement

Answer Key

Q.No. Ans

1 D

2 D

3 C

4 D

5 D

6 A

7 C

8 B

9 C

10 A

11 C

12 C

13 A

14 A

15 A

16 B

17 B

18 D

19 D

20 D

21 B

22 D

23 D

24 C

25 A

26 D

27 B

28 D

29 B

30 D

31 B

32 B

33 C

34 A

35 B

36 D

37 B

38 C

39 B

40 C

41 D

42 A

43 B

44 C

Page 34: Project Mnagement

45 D

46 D

47 C

48 C

49 B

50 A

51 B

52 D

53 D

54 C

55 A

56 B

57 A

58 C

59 C

60 C

61 B

62 D

63 B

64 D

65 B

66 B

67 D

68 C

69 C

70 C

71 D

72 C

73 C

74 B

75 B

76 D

77 D

78 B

79 C

80 B

81 B

82 A

83 D

84 C

85 D

86 A

87 A

88 D

89 D

90 B