1

Chapter-1
1. What is project?
A project is a temporary endeavor undertaken to create a unique product, service, or result. It
has specific objectives, a defined beginning and end, and often involves multiple steps or tasks.
2.Why IT project fail?
1.Incomplete requirements
2.Lack of user involvement
3.Lack of resources
4.Unrealistic expectations
5.Lack of executive support
6.Changing requirements and specifications
7.Lack of planning
8.Didn't need it any longer
9.Lack of IT management
10.Technology illiteracy
3.Project management approach
A project management approach is a set of principles or philosophy that describes how to plan,
organize, and execute a project.
Project management to support IT projects include:
1.Resources 2. Expectations
3.Competition 4. Efficiency and Effectiveness
4.what is knowledge management? Although many people believe knowledge cannot be
managed, why do you think many companies are undertaking knowledge management
initiatives?
Knowledge management is a systematic process for acquiring, creating, synthesizing, sharing,
and using information, insights, and experiences to transform ideas into business value.
Knowledge management process and tools
1.Knowledge Creation 2. Knowledge Storage 3. Knowledge Sharing
Projrct management Knowledge Areas:
1.Project integration management 2. Project scope management
3.Project time management 4. Project procurement management
5.Project risk management 6. Project communications management
7.Project HR management 8. Project cost management
9.Project quality management
Despite the belief that knowledge cannot be fully managed, many companies are investing in
knowledge management initiatives for several reasons:
1.Improved Decision-Making 2. Increased Efficiency
3.Innovation and Continuous Improvement 4. Retention of Expertise
5.Enhanced Customer Service 6. Competitive Advantage:
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5. What is project management?

Project management is the application of knowledge, skills, tools and techniques to project
activities to meet project requirements. A project manager is the person assigned by the
performing organization to achieve the project objectives.
6. What are the attributes of a project?
Here’s the key attributes of a project:
1. Time Frame 2. Purpose
3. Ownership 4. Resources
5. Roles
6. Risks and Assumptions
7. Interdependent Tasks:
8. Organizational Change
9. Operating in a Larger Environment
7. Describe the relationship among scope, schedule, and budget. Tripple Constraint
The relationship between scope, schedule, and budget is often referred to as the "Project
Management Triangle" Here’s how they relate:
1. Scope: This defines what the project will deliver—the features, tasks, and work involved.
2. Schedule (Time): This refers to how long it will take to complete the project.
3. Budget (Cost): This refers to how much money is available or required to complete the project.
Key Relationships:
1.If you increase the scope (more work), you may need more time (schedule) and more money.
2. If you shorten the schedule (less time), you might need to increase the budget to hire more
workers or speed things up, or you may have to reduce the scope (do less work).
3.If you cut the budget, you may need to reduce the scope or extend the schedule.
8. Describe the different roles and skill sets needed for a project.
1. Project Manager 2. Project sponsor
3. Subject matter experts 4. Technical experts
9. Describe three risks that could be associated with an IT project.
All projects have an element of risk, and some projects entail more risk than others. Risk can
arise from many sources, both internal and external to the project team.
For example, internal risks may arise from the estimation process or from the fact that a key
member of the project team could leave in the middle of the project.
External risks, on the other hand, could arise from dependencies on other contractors.
Assumptions are a form of risk that we introduce into the project in terms of forecasts or
predictions. They are:
1. Scope Creep: Adding extra features beyond the original plan, causing delays and more costs.
2. Technical Issues: Problems with software or hardware that slow down or stop progress.
3. Budget Overruns: Project costs more than expected, leading to financial strain.
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10. Why should assumptions associated with a project be documented?

• It improves communication and coordination with stakeholders.
• It reduces uncertainty by providing a common framework for decision-making.
• It helps establish a starting point for future resource and schedule adjustments.
• It mitigates risks and ensures project objectives are met.
• It allows for validation of underlying thoughts through evidence or experiments.
11. Discuss the statement: Projects operate in an environment larger than the project itself.
Internal Environment
1. Organizational Culture and Structure
2. Resources and Capabilities crucial role
External Environment
1. Market Conditions
2. Regulatory and Legal Factors
3. Social and Cultural Influences
12.Although the Guide to the Project Management Body of Knowledge describes the generally
accepted principles and practices of project management, why wouldn't these principles and
practices work for every project?
The PMBOK principles might not work for every project because:
1. Too Generic: It’s a broad framework, not tailored to specific projects.
2. Size and Complexity: Better suited for large projects, not small ones.
3. Lack of Flexibility: Can be too rigid for projects needing quick changes.
4. Resource Constraints: May be too resource-intensive for some projects.
5. Industry-Specific Needs: Doesn’t always fit unique industry requirements
13.What role does financial analysis play in Project Management?
1.Budgeting 2. Cost Control
3.Investment Decisions 4. Risk Management
5.Performance Evaluation 6. Resource Allocation
7.Stakeholder Communication 8. Forecasting
14. Common Challenges Faced by Project Managers and How a Project Financial Management
System Can Help
1. Budget Overruns 2. Poor Tracking
3. Communication Issues 4. Resource Allocation
5. Risk Management 6. Scope Creep
15.How a Project Financial Management System Can Help
1. Budget Control 2. Real-time Tracking
3. Improved Communication
4. Resource Management
5. Risk Analysis
6. Change Management
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Chapter-2
1. Describe the project life cycle.
The project life cycle (PLC) is a collection of logical stages or phases that maps the life of a project
from its beginning to its end in order to define, build, and deliver the product of a project that
is, the product, service, or information system. Each phase should provide one or more
deliverables. A deliverable is a tangible and verifiable product of work. Deliverables at the end
of each phase also provide tangible benefits throughout the project and serve to define the work
and resources needed for each phase.
Project Time Line
1.Define project goal 2. Plan project
3.Execute project plan 4. Close project
5.Evaluate project
Steps of PLC
1.INITIATION STAGE: Understand the goals, priorities, deadlines. and risks of the project.
2.PLANNING STAGE: Outline the tasks and timeline required to execute on the project.
3.EXECUTION STAGE: Turn your plan into action and monitor project performance.
4. CLOSURE STAGE: Analyze results, summarize key learnings, and plan next steps.
2. Describe the systems development life cycle (SDLC).
The Systems Development Life Cycle (SDLC) is a structured
process used for developing information systems or
software. It ensures that the final product meets the
required standards and user expectations
Five basic phases in the systems development life cycle.
1.Planning
2.Analysis
3.Design How PLC relates to SDLC
4.Implementation
5.Maintenance
3.What are the advantages of having and following a project methodology?
1.Increased level of project management maturity
2.Discoverable, consistent and known processes
3.Increased efficiency
4.Improved reputation
5. Developing the team’s skills
6.More successful projects Organizing project times
7.Estimate times and costs correctly
8.Minimize project risks
11.Improving the cost-benefit relationship of resources
12.Happier clients
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4. Describe the five project management processes.

1.Project Initiation: Define goals, scope, budget, and timeline.
• Create the Project Charter
• Determine Stakeholders
• Complete Business Case
2.Project Planning: Create a detailed action plan.
• Create Project Management Plan
• Define Budget & Scope
• Identify Risks
• Construct Work, Breakdown, Structure
3.Project Execution: Carry out the plans to deliver the product.
• Allocate Project Resources
• Schedule Project Tasks
• Continue Project Status Updates
4.Project Control: Track progress and make adjustments.
• Monitor Progression
• Measure Key Performance Indicators
• Revisit Project Management Plan
5.Project Close: Finalize the project
• Record Project Processes & Findings
• Handover Deliverables
• Document & Review Data
5. What is a project infrastructure?
An infrastructure project is a proposed plan that focuses on the building, maintenance, and
upkeep of facilities, systems, and services.
Examples include roads, power plants, sewage systems, and water supply.
6. What is a business case?
A business case is a project management document that explains how the benefits of a project
outweigh its costs and why it should be executed. Business cases are prepared during the project
initiation phase and their purpose are to include all the project’s objectives, costs and benefits
to convince stakeholders of its value.
Process for developing the Business Case
Select core item > Define measurable organizational value > Identify Alternatives
Define Feasibility
Define total cost of ownership
Define total benefits of ownership >Analyze alternatives>Propose and support recommendation
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7. What is the purpose of selecting a core team to develop a business case?

The business case is a document that justifies the investment in a project or initiative, and it
needs to be comprehensive, well-researched, and aligned with the organization's objectives. A
core team ensures this by bringing together a diverse range of skills, perspectives, and expertise.
The key purposes of selecting a core team include:
1.Expertise and Knowledge 2. Comprehensive Analysis
3.Cross-Departmental Buy-In 4. Balanced Perspective
5.Efficient Decision-Making 6. Accountability
7.Alignment with Strategic Goals
8.What is (MOV) a project's measurable organizational value?
The Measurable Organizational Value (MOV) refers to the clear, quantifiable benefits that a
project is expected to deliver to an organization. It is the project's measure of success, indicating
how it will contribute to the organization's overall goals and objectives.
Characteristics of MOV
1.Be measurable 2. Provide value to the organization
3.Agreed upon with stakeholders
4. Be verifiable 5. Be Realistic
9.Describe how a project's MOV can support an organization's goals and strategies.
1. Align with mission and vision: MOV ensures the project fits with the organization’s overall
vision and mission.
2. Define Success Clearly: It sets clear goals so everyone knows what success looks like.
3. Add Real Value: The MOV focuses on bringing real benefits to the organization.
4. Get Everyone on the Same Page: It helps all stakeholders agree on the project’s goals.
5. Measure Progress: The MOV includes metrics to track how well the project is doing.
6. Set a Timeline: It provides a timeframe for achieving the project’s goals
10. Describe Economic feasibility.
Economic feasibility refers to the evaluation of a project's ability to generate sufficient revenue
to cover costs and provide a reasonable return on investment. It involves analyzing the costs
and benefits of a project in relation to market demand and supply. This assessment helps
determine whether the project is viable, profitable, and sustainable
11. Describe technical feasibility.
Technical feasibility refers to the evaluation of the practicality and viability of a proposed project
or system from a technical perspective. It involves assessing whether the necessary technology,
equipment, and skills are available to successfully execute the project.
12. Describe organizational feasibility.
Organizational feasibility evaluates the alignment between the proposed initiative and the
organization's existing structure, management team, and core competencies. It assesses the
organization's ability to acquire or develop the necessary human resources, technological
capabilities, and operational processes to support the new venture.
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13. What other types of feasibility issues should an organization consider?

1. Financial Feasibility: Analyzes the financial aspects, including the costs involved, potential
revenue, and overall financial viability.
2. Market Feasibility: Examines the market demand, target audience, market trends, and
competitive landscape.
3. Operational Feasibility: Looks at the organizational structure, logistics, and day-to-day
operations needed to implement and sustain the project.
4. Legal Feasibility: Evaluates the legal and regulatory requirements that could impact .
5. Environmental Feasibility: Considers the environmental impact of the project.
6. Social Feasibility: Analyzes the social implications of the project, including its impact on the
community, stakeholders, and employees.
14.Describe the breakeven method. What are some advantages and disadvantages.
The breakeven method is a financial analysis tool used to determine the point at which total
revenues and total costs are equal, meaning a business or project neither makes a profit nor
incurs a loss.
Formula for BEP:
Advantages:
1.Simple to understand 2.Shows profit and loss
3.Accounts for changing factors 4.Helps entrepreneurs
5.Easy to use 6.Quick Estimate
Disadvantages:
1.Relies on accurate data 2.Factors regularly change
3.Unrealistic assumptions 4.Can only apply to a single product
5.Break-even becomes harder to calculate 6.Assume all output is sold
7.May be unreliable 8.Time consuming
15.Describe the ROI method. What are some advantages and disadvantages of this method?
Return on Investment (ROI) is a financial metric used to evaluate the profitability of an
investment. It is calculated by dividing the net profit of an investment by the cost of the
investment, and it is typically expressed as a percentage.
Advantages 1. Better Measure of Profitability:
2. Achieving Goal Congruence:
3. Comparative Analysis:
4. Performance of Investment Division:
5. Matching with Accounting Measurements:
Disadvantages 1. Profit is subjective
2.Might be incomparable with other companies
3.The time factor is omitted
4.Could fail to consider the hazards
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16.Describe the NPV method. What are some advantages and disadvantages of this method
Net present value (NPV) is the Difference between the present value of cash inflows and the
present value of cash outflows over a period of time.
Advantages:
• Considers Of Time Value of Money • Easy to Make Decisions
• Focus On the Profitability • Scientific and Most Reliable Method
Disadvantages:
• Complex To Calculate and Difficult to Understand
• It Relies on Discount Rate • Difficult to Forecast Future Cash Flows
17. What effect does increasing the discount rate have on a project's NPV?
Increasing the discount rate has a direct impact on a project’s Net Present Value (NPV).
Specifically, as the discount rate increases, the present value of future cash flows decreases. This
is because future cash flows are discounted more heavily, reducing their value in today’s terms.
Consequently, a higher discount rate results in a lower NPV.
In summary:
• Higher Discount Rate: Lower NPV • Lower Discount Rate: Higher NPV
18. Describe the balanced scorecard approach
A balanced scorecard is a strategic management performance metric that helps companies
identify and improve their internal operations to help their external outcomes. It measures past
performance data and provides organizations with feedback on how to make better decisions in
the future. Key Features:
1. Financial perspective: It focuses on an organization’s financial health and performance.
1. Revenue Growth 2. Profitability
3. Cost Management 4. Risk Management
2.Internal processes: Focuses on the organization’s key internal activities and processes. Aims
to ensure that these internal processes are efficient, effective, and aligned with the company’s
overall strategic goals. Determines how well the business runs and whether its products and
services conform to customer requirements.
3.Learning & Growth: Focuses on employee training and corporate cultural attitudes.
4.Customer Perspective: Focuses on how well a company meets its customers needs. It includes:
1. Customer Satisfaction 2. Customer Retention
3. Market Share 4. Customer Feedback 5. Customer Value Proposition
4.Customer Perspective
54. How does the concept of MOV support the balanced scorecard approach?
The concept of Measurable Organizational Value (MOV) supports the Balanced Scorecard
approach by ensuring that projects and initiatives are aligned with the organization’s strategic
goals and deliver measurable value. MOV provides clear, quantifiable metrics that help track
performance across the four perspectives of the Balanced Scorecard. Key points:
1. Alignment 2. Measurement 3. Value Focus 4. Decision-Making
 9

Chapter-3
1. Project Integration Management
Project integration management involves coordinating all elements of a project, including tasks,
resources, stakeholders, and deliverables. The purpose of project integration management is to
ensure that processes run efficiently and meet predefined goals. It Includes:
1.Identify 2. Define 3. Combine
4.Unify 5. Coordinate
2. Six principles for Project Integration Management
i. Define the job in detail
ii. Get the right people involved
iii. Estimate the time and cost
iv. Break the job down
v. Establish a change procedure
vi. Agree on acceptance criteria
3. Six processes for Project Integration Management
1. Develop Project Charter: Create a document that officially starts the project.
2. Develop Project Management Plan: Make a detailed plan on how to run the project.
3. Direct and Manage Project Work: Carry out the project plan by coordinating people.
4. Monitor and Control Project Work: Keep an eye on the project’s progress.
5. Perform Integrated Change Control: Manage changes to ensure they are beneficial .
6. Close Project or Phase: Finish all project activities, get approval from stakeholders.
4. Project process
Projects are composed of processes. A process is "a series of actions bringing about a result".
Project processes are performed by people and generally fall into one of two major categories:
1.Project management processes: Project management processes are concerned with
describing and organizing the work of the project. It helps initiate, plan, execute, monitor and
control and close a project as well as interact with the project management knowledge areas.
1.Initiating processes—recognizing that a project should begin and committing to do so.
2.Planning processes—devising and maintaining a workable scheme to accomplish the business.
3.Executing processes—coordinating people and other resources to carry out the plan.
4.Controlling processes—ensuring project objectives met by monitoring and measuring progress
5.Closing processes—formalizing acceptance of the project and bringing it to an orderly end.
2.Product-oriented processes: Product-oriented processes are concerned with specifying and
creating the project product. Product oriented processes are typically defined by the project life
cycle. It specifies and create the projects product.
1. Structured approach to systems development
Project management processes and product-oriented processes overlap and interact throughout
the project. For example, the scope of the project cannot be defined in the absence of some
basic understanding of how to create the product.
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5. Phases of SDLC Waterfall Model – Design

The Waterfall Model is a classical software development methodology that was first introduced
by Winston W. Royce in 1970. The Waterfall Model has six phases which are:
1. Requirements: The first phase involves gathering requirements from stakeholders and
analyzing them to understand the scope and objectives of the project.
2. Design: This involves creating a detailed design document that outlines the software
architecture, user interface, and system components.
3. Development: The Development phase include implementation involves coding the software
based on the design specifications.
4. Testing: In the testing phase, the software is tested as a whole to ensure that it meets the
requirements and is free from defects.
5. Deployment: Once the software has been tested and approved, it is deployed to the
production environment.
6. Maintenance: It involves fixing any issues that arise after the software has been deployed and
ensuring that it continues to meet the requirements over time.
6.Iterative systems development
Iterative development is a software development process that involves breaking down a larger
project into smaller, more manageable chunks that can be developed, tested, and deployed in
shorter time frames
The following summarize some common iterative approaches for systems development
1.Rapid applications development (RAD)
2.Prototyping
3.Spiral development
4.Agile systems development (ASD)
Summary
• Product-Oriented: Focuses on delivering a quality product or service. Example: Developing
a software application.
• Project-Oriented: Focuses on managing the project process and resources to meet the
project's goals. Example: Organizing a corporate event.
7. The Project Charter
The project charter provides a project governance framework for carrying out or executing the
IT project. The project charter serves as an agreement or contract between the project sponsor
and project team-
• Documenting the project's MOV
• Defining its infrastructure
• Summarizing the project plan details
• Defining roles and responsibilities
• Showing project commitments
• Explaining/Setting out project control mechanisms
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8.Develop a project charter and describe its relationship to the project plan.
In general, the project charter and project plan should be developed together-the details of the
project plan need to be summarized in the project charter, and the infrastructure outlined in the
project charter will influence the estimates used in developing the project plan.
It is the responsibility of the project manager to ensure that the project charter and plan are
developed, agreed upon, and approved. Like the business case, the project charter and plan
should be developed with both the project team and the project sponsor to ensure that the
project will support the organization and that the goal and objective of the project are realistic
and achievable.
7. What should be in a project charter?
1.Project Name or Identification
2.Project Stakeholders: • Names• Titles or roles• Phone numbers• Email addresses
3.Project Description: • Background• Description of the challenge • Overview of desired impact
4.Measurable Organizational Value (MOV): • Statement or table format
5.Project Scope: • What will be included in scope • What will be considered outside the scope
6.Project Schedule Summary: • Project start date• Project end date• Timeline of project
7.Project Budget Summary: • Total project budget• Budget broken down by phase
8.Quality issues: • Specific quality requirements
9.Resource: • People• Technology• Facilities• Other
10.Assumptions and Risks: • Assumptions used to develop estimates• Key risks• Constraints
11.Project Administration: • Communications plan • Scope management plan• Q.M •HRM plan
12.Acceptance and Approval: • Names, signatures, and dates for approval
13.References.
14.Terminology or Glossary
8. Project Planning Framework
A project planning framework will be
introduced. This framework is part of
the IT project methodology and
provides the steps and processes
necessary to develop the detailed
project plan that will support the
project's MOV.
A project plan attempts to answer the
following questions:
1.What needs to be done? Project Planning Framework
2.Who will do the work?
3.When will they do the work?
4.How long will it take?
5.How much will it cost?
 12

Chapter-5
1. What is meant by project scope?
Project scope is a component of project implementation that helps determine goals, constraints,
workflow management strategies, tasks, and deliverables. By defining project scope, individual
contributors will be able to manage their workloads more easily.
2. Briefly describe the five-scope management process.
1.Collect Requirements: Centers on defining and documenting the stakeholders' needs to
properly manage expectations.
2.Define Scope: A detailed description of project and the product. It should define what work
will and will not be included in the project.
3.Create Work Breakdown Structure (WBS): The decomposition or dividing of the major project
deliverables into smaller and more manageable components.
4.Verify Scope: Confirmation and formal acceptance that project's scope is accurate, complete,
and supports the project's goal.
5.Control Scope: Ensuring that controls are in place to manage proposed scope changes one the
project's scope is accepted.
3.Briefly describe the scope planning process.
Collect Requirements: Defines and documents the needs of the stakeholders to manage
expectations.
Define Scope: Develop a detailed description of the project and the product.
Create WBS: A project planning tool that that decomposes or subdivides and organizes the
project's scope into a deliverable- orientated hierarchy.
Verify Scope: A formalized acceptance from the appropriate stakeholders that the defined
project scope is complete.
Control Scope: A defined process for managing changes to project and product scope and the
impact of those changes to the project's schedule and budget.
7. Describe the scope management plan.
Scope planning is a process for defining and documenting the project work. More specifically, a
project's scope defines all the work, activities, and deliverables that the project team must
provide in order for the project to achieve its MOV. It is an important step in developing the
project plan since one must know what work must be done before an estimate can be made of
how long it will take and how much it will cost.
There are five types in scope planning process:
1.Required document
2.Detailed Project Scope
3.Work Breakdown Structure.
4.Scope Verification
5.Change Control Process
 13

8. Why it is important to define the project's scope accurately and completely?

A project's scope is essential because it guides what resources or deliverables you can add or
remove as the project progresses. It also defines a business' needs, the expected project
outcomes, and assumptions outside of the project team's control.
A well-defined project scope management helps avoid common issues like:
1.Constantly changing requirements
2.Pivoting the project direction when you are already mid-way
3.Realizing that the final outcome isn’t what was expected
4.Going over the discussed budget
5.Falling behind the project deadlines
9. What is scope boundary? What purpose does it serve?
A scope boundary refers to the limits or boundaries of a project's scope. It defines what is
included and excluded from the project.
The scope boundary serves several important purposes in project management:
1.Clarity and Focus
2.Scope Control
3.Resource Allocation
4.Risk Management
5.Project Success
At last, we can say that, a scope boundary in project management defines the limits of a project's
scope and serves the purpose of providing clarity, control, resource allocation, risk management,
and ultimately, project success.
10. What is the difference between product-oriented deliverables and project-oriented
deliverables?
Product-Oriented Deliverables Project-Oriented Deliverables
Product-oriented deliverables focus on the project-oriented deliverables focus on all
final product or service that provides value outputs generated during the project
to the customer execution to reach that final product.
Specific features and functionality of the Support the project management and IT
application system development processes defined in the
Information Technology Project
Methodology (ITPM).
Product deliverables tend to have a more project deliverables can include a wider
defined and fixed scope range of outputs, including progress
reports, design documents, and project
plans
Tools: Context Dataflow Diagram (DFD), Tools: Deliverable Definition Table (DDT),
Use Case Diagram (UCD) Deliverable Structure Chart (DSC)
 14

11. How does a project scope support the MOV concept?

The project's scope defines and limits the project's activities to only those things that support
the project MOV. It makes sure that time and resources are only expended on things that
contribute to the project MOV. Any work within the scope boundary should include only the
work or activities that support the project's MOV. This work is what we want to capture and keep
within our fence. On the other hand, a project team can spend a great deal of time doing work
and activities that will not help the project achieve its MOV. As a result, the project will consume
time and resources with very little return. Therefore, the scope boundary must protect the scope
from these activities once it is set and agreed upon by the project stakeholders. Having a clear
and agreed-upon definition of the project MOV is critical for defining and managing the scope
boundary.
A project scope supports the MOV concept in various ways:
1.Ensures Project Relevance
2.Aligning the project with strategic goals
3.Defining clear, measurable deliverables
4.Focusing on value creation
5.Avoids Wasteful Spending
6.Supports Risk Management
7.Ensures Project Success Evaluation
12. What is the statement of work? What purpose does it serve?
The Statement of Work (SOW): A statement of work (SOW) is a narrative description of the
product, service, or information system.
For internal projects, the SOW should tie together the business need with the specific
requirements or expectation of the project.
For external projects, an organization may create a SOW that includes specifications, quantities,
quality standards, or performance requirements that can be sent to prospective bidders.
13. What is a scope statement of work? What purpose does it serve?
Scope statement of work (SOW) is a document that outlines the specific details of a project,
including the tasks, deliverables, timelines, and boundaries, essentially defining what work is
included and excluded in a project, ensuring all parties involved are aligned on expectations and
preventing scope creep; it serves as a contract between the client and contractor, clarifying
responsibilities and preventing misunderstandings during project execution.
Scope Statement:
1. Develop a proactive electronic commerce strategy that identifies the processes, products. and
services to be delivered through the World Wide Web.
2. Develop an application system that supports all of the processes, products, and services
identified in the electronic commerce strategy.
3. Integrate the application system with the bank's existing enterprise resource planning system.
 15

Project grope
Scope grope is a metaphor that describes a project team's inability to define the project's scope.
This situation is common early in a project when the project team and sponsor have trouble
understanding what the project is supposed to accomplish. Scope grope can be minimized by
having a clearly defined MOV and by following or applying the processes, concepts, and tools.
Scope creep:
Scope creep refers to increasing featurism, adding small yet time- and resource-consuming
features to the system once the scope of the project has been approved. For example, a project
sponsor may try to add various bells and whistles to the project scope. Yet, scope creep does not
always come from the project sponsor side. The project team itself may come across interesting
or novel ideas as the project work progresses. Its enthusiasm for adding these ideas can divert
its attention or add features and functions to the system that the project sponsor did not ask for
and does not need. Scope creep must be identified and controlled throughout the project
because it will lengthen the project schedule and, in turn, lead to cost overruns.
Scope leap
Scope leap-If scope creep is caused by increasing featurism, scope leap suggests a fundamental
and significant change in the project scope. For example, the original scope for the bank's
electronic commerce project was to provide new products and services to its customers. Scope
creep may be adding a new feature, such as a new product or service, not originally defined in
the project's scope. On the other hand, is an impetus to change the project so that the electronic
commerce system would allow the bank to obtain additional funding in the open market. Adding
this activity would dramatically change the entire scope and focus of the project. It can occur as
a result of changes in the environment, the business, and the competitive makeup of the
industry. It entails changing the MOV and, therefore, requires that the organization rethink the
value of the current project. If this change is critical, the organization may be better off pulling
the plug on the current project and starting over by conceptualizing and initiating a new project.
 16

Chapter-6
1.Describe the PMBOK® area of project time management.
The Project Management Body of Knowledge (PMBOK) area of project time management
involves the processes and skills needed to plan and complete a project on time. The PMBOK
defines project time management as the process of estimating the length of a project, creating
a schedule, and tracking progress.
Some of the processes involved in PMBOK time management include:
1.Defining activities
2.Sequencing activities
3.Estimating resources
4.Estimating activity durations
5.Develop Schedule
6.Control Schedule
2.What is a WBS? What purpose does it serve?
A work breakdown structure (WBS) is a project management tool that takes a step-by-step
approach to complete large projects with several moving pieces. By breaking down the project
into smaller components, a WBS can integrate scope, cost and deliverables into a single tool.
1.Hierarchical breakdown: Starts with the overall project goal at the top and progressively
breaks it down into smaller deliverables, sub-deliverables, and finally, individual work packages
at the lowest level.
2.Deliverable-oriented: Focuses on identifying and defining all the deliverables needed to
complete the project.
3.Improved planning and control: By clearly outlining tasks and dependencies, a WBS helps in
better project planning, cost estimation, and progress tracking.
4.Communication tool: Provides a common language for project team members and
stakeholders to understand the project scope and their individual responsibilities.
3.Discuss why a project's scope must be lied to the WBS.
The Work Breakdown Structure (WBS) is a fundamental project management tool that breaks
down a project's scope into smaller, more manageable components or tasks. Tying a project's
scope to the WBS is crucial for several reasons:
• Comprehensive Scope Coverage
• Improved Planning and Scheduling:
• Enhanced Communication
• Effective Scope Control and Change Management
• Accurate Cost Estimation and Budgeting
• Performance Measurement and Control
• Defined Responsibilities and Accountability
• Risk Management Support
 17

4.What is a work package?

The WBS decomposes, or
subdivides, the project into
smaller components and more
manageable units of work called
work packages. Work packages
provide a logical basis for defining
the project activities and
assigning resources to those
activities so that all the project
work is identified (Haugan 2002).
A work package makes it possible to develop a project plan, schedule. and budget and then later
monitor the project's progress.
5. What is the difference between a deliverable and a milestone.
A milestone is a significant event or achievement that provides evidence that deliverables has
been completed. Though Deliverable and Milestone are closely related but they are not same.
Milestone Deliverable
Milestones are the formal progress report Deliverable are the project result which are
that are given to the management. given to the Customers.
Delivered at the end of some software Delivered at the end of some major project
process activity phases such as specification, design, etc.
Points at the reaching of a key project's stage Points at the project phase completion
Can be conceptual or tangible Must be tangible
Significant for the entire team Significant for customers
Serves to check project goal alignment Pushes client to sign-off on project status
6.What purpose do milestones serve.
• Help keep projects on track
• Provide a sense of accomplishment
• Reduce risk
• Mechanism for quality control
• Help with logical sequencing
• Help with communication
7.What are some advantages of including milestones in the WBS?
Incorporating milestones in the WBS provides several advantages that enhance project
management effectiveness. These benefits include:
1.Better progress tracking
2.Clearer communication with stakeholders
3.Improved risk management
4.More efficient budget control
 18

8. What is crux? Why should the project manager and project team identify the cruxes of a
project?
A crux can be the testing of an idea, concept, or technology that is critical to the project's success.
Milestone can also be used to reduce risk by acting as Cruxs or proof of concept. Many times, a
significant risk associated with IT projects is the dependency on new technology or unique
applications of the technology.
For example, suppose that an organization is building a data warehouse using a particular
vendor's relational database product for the first time. A crux for this project may be the
collection of data from several different legacy systems, cleansing this data, and then making it
available in the relational database management system.
The team may ensure that this can be accomplished using only a small amount of test data. Once
the project team solves this problem on a smaller scale, they have proof that the concept or
technique for importing the data from several legacy systems into the data warehouse can be
done successfully. This breakthrough can allow them to incorporate what they have learned on
a much larger scale.
Subsequently, solving this crux is a milestone that would encourage the organization to invest
more time and resources to complete the project.
9. What is proper level of detail for a WBS?
The work breakdown structure (WBS) is defined as “a deliverable-oriented decomposition of
work to be executed by the project team to accomplish project objectives and create the
required deliverables. It organizes the total scope of the project. The deliverable orientation of
the hierarchy includes both internal and external deliverables.” While this definition provides
clarity with regard to the composition and focus of the WBS it falls short of specific guidance in
sizing the detail of the WBS. The WBS should provide increasing detail about the total scope of
the project until that scope can be clearly communicated and effectively managed. Knowing
when this level of detail has been reached is, of course, the trick.
The Practice Standard for Work Breakdown Structure, offers some questions for determining the
appropriate level of detail:
1.Are clear, objective criteria missing for measuring progress for the WBS element?
2.Does the WBS element contain more than one deliverable?
3.Can a portion of the work to be performed within the WBS element be scheduled as a unit?
4.Is the WBS element clearly and completely understood to the satisfaction of the project
manager, project team members, and other stakeholders-including the customer?
5.Is more than one individual or group responsible for the WBS element?
6.Is there a stakeholder interested in analyzing status and performance of only a portion of the
work covered by the WBS element?
7.Can progress of the work be assessed as needed?
 19

10. Why should the WBS be deliverable oriented?

The WBS Should Be Deliverable Oriented Remember, the focus of a project should be to produce
something, not merely on completing a specified number of activities. Although the WBS does
not provide for any explicit looping, some activities may have to be repeated until the milestone
is achieved. For example, software testing may uncover a number of problems or bugs that make
the software system unacceptable to the client. As a result, these problems will have to be
addressed and fixed and the same tests may have to be conducted again. This process may be
repeated a number of times (while consuming the project schedule and budget) until the quality
standards are met.
11. Why people who do the work on a project should be involve in developing the project plan.
Involving the people who will be doing the work in developing the project plan is crucial for
several reasons:
1.Expertise and Insight
2.Ownership and Buy-in
3.Improved Communication
4.Realistic Expectations
5.Enhanced Problem-Solving
6.Accountability
7.Adaptability
12. How the concept of knowledge management support development of the project plan?
The business objective of managing project management knowledge is to enable organizations
to consistently perform projects successfully. Knowledge management ensures that the right
resources will be available with the right proficiencies and knowledge.
Applying knowledge management techniques to project management practices can result in_
1.Enhanced communication
2.Better project integration
3.Improved decision-making
4.Reduced risks
5.Continuous improvement in project performance.
15. What is guesstimating? Why should a project manager not rely on this technique for.
Guesstimating is a combination of "guessing" and "estimating," referring to making rough
estimates based on intuition or experience without solid data or thorough analysis. It often
involves making assumptions or using past experience to predict outcomes when precise
information is lacking. Why a Project Manager Should Not Rely on Guesstimating:
1.Inaccuracy
2.Lack of Accountability
3.Missed Risks
4.Poor Stakeholder Confidence
5.Difficulty in Planning
 20

16.Describe the potential problems associated with providing an off-the-record estimate?

1. Misunderstanding
2. Inaccuracy
3. Lack of accountability
4. Legal issues
5. Reputation damage
17.What is the Delphi technique? When would it be an appropriate estimating technique for
an IT project?
The Delphi technique involves multiple experts who arrive at a consensus on a particular subject
or issue. Although the Delphi technique is generally used for group decision making, it can be a
useful tool for estimating when the time and money warrant the extra effort (Roetzheim and
Beasley 1998).
1.The Delphi technique is particularly useful in IT projects when:
2.Uncertainty Exists
3.Expert Knowledge is Required
4.Avoiding Groupthink or Bias
5.Long-Term or Strategic Projects
6.Complex Systems Integration
18. What is time boxing? Advantage and disadvantage of time boxing Project activities?
Time-boxing-A technique where a box of time is allocated to a specific task. For example, a team
may be given two weeks (and only two weeks) to develop a prototype of a user inter- face.
Advantages:
1.Enhanced focus
2.Recurrent revaluation opportunities
3.Less stressful projects an hour”, than to think, “I’ll work on this activity until it’s over”.
Disadvantages:
1.Instead of starting with a daunting project, selecting a relatively small and simple task or job.
2.Set short time intervals when starting to adopt this technique.
3.Set a timer on phone or computer and, when the time runs out, observe it and finish the job.
4.Focus and force to work, without any interruption, for that set period of time.
19. Describe top-down estimating. Advantage and disadvantage.
Bottom-up estimating-Most real-world estimating uses this approach. The WBS outlines the
activities that must be completed, and an estimate is made for each of the activities. The various
durations are then added together to determine the total duration of the project. Estimates may
be analogous to other projects or based on previous experience. These estimates are also a
function of the activity itself, the resources assigned and support.
 21

Top-down estimating Advantage and disadvantage.

Advantages:
1.Helpful when making initial decisions
2.Top-down estimates provide context
3.Flexible estimates
Disadvantage:
1.Discrepancies with actual project cost.
2.Relies on assumptions
3.A top-heavy approach may lead to inaccuracies
20. Bottom-up estimating. Advantage and disadvantage.
Bottom-up estimating refers to a strategy that involves projecting the cost of every element or
component at the lowest possible level of detail and then summing up all the elements to obtain
the final estimate. Businesses can utilize this strategy to estimate or predict the overall cost of
time or resources for a certain project.
Advantages:
1.This technique offers a clear picture of all components of the project to the team members.
This allows them to obtain an accurate estimate.
2.The strategy allows project managers to get a more comprehensive idea regarding the overall
work package and anticipate possible roadblocks that may materialize in the future.
3.It allows people to execute a project with more efficiency and effectiveness.
4.The technique allows individuals to resolve issues concerning the estimates without having to
make significant alterations. This makes it easier for the team members to avoid mistakes.
5.Another key advantage is that it improves efficiency and productivity.
Disadvantages:
1.A key bottom-up estimating disadvantage is that it requires a project manager to start from
the very beginning for every new project. This is because the point of this approach is to prepare
an estimate on the basis of a certain project’s components. Hence, it is not scalable.
2.This strategy is incompatible with projects with a short timeline.
3.In this case, the duration estimate is dependent on the cost projection, which raises the
chances of miscomputation impacting the overall endeavor.
4.This approach involves multiple estimators. Hence, people may obtain biased results.
 22

Chapter-7
1.Describe the PMBOK area of project cost management
PMBOK stands for Project Management Body of Knowledge, and it is the entire collection of
processes, best practices, terminologies, and guidelines that are accepted as standard within the
project management industry.
According to PMBOK®, project cost management includes:
1.Estimate Costs-Focuses on the processes to estimate the monetary resources needed to
complete the project work or activities.
2.Determine Budget-Aggregating the individual cost for each of the project activities or work
package components to determine the cost baseline or overall project budget.
3.Control Costs-Updating the project's status while monitoring the project's budget and
managing any changes to the baseline plan
2.Discuss why no project ever failed because of some- one's inability to draw a nice-looking
project network diagram.
1.Focus on Functionality
2.Risk Management
3.Communication and Stakeholder Engagement
4.Resource Management
5.Change Management
6.Leadership and Team Dynamics
7.Project Controls and Monitoring
8.Tools and Software
9.Adaptability and Problem-Solving
3.What are some advantages project network diagrams have over traditional Gantt charts?
1.Enhanced Visualization of Task Dependencies
2.Identification of the Critical Path
3.Effective Management of Complex Projects
4.Facilitating Project Scheduling and Adjustments
5.Improved Risk Analysis
6.Clearer Representation of Project Flow
7.Support for Project Optimization
4.What is meant by slack (or float)?
Slack, also called float, is the amount of time a task can slip before it bumps into another task.
It’s automatically calculated into your project when you schedule tasks, and you can use it as
buffer time if needed when your schedule is at risk of being delayed.
1. Total Float: This is the amount of time a task can be delayed without affecting the
project’s final delivery date.
2. Free Float: This is the amount of time a task can be delayed without impacting the start
date of any subsequent tasks.
 23

5.Define predecessor, successor, and parallel activities. Give a real-world example of each.
1. Predecessor Activities
Predecessor activities are tasks that must be completed before another task (the successor) can
start. They are the preceding steps in a project that influence or set the conditions for
subsequent tasks.
Real-World Example: In the construction of a building, the activity "Pouring the Foundation" is
a predecessor to "Building the Walls."
2. Successor Activities
Successor activities are tasks that cannot begin until a preceding task (the predecessor) has been
completed. They are dependent on the completion of the predecessor activities.
Real-World Example: In a software development project, the activity "Code Development" is a
successor to "Requirements Gathering."
3. Parallel Activities
Parallel activities are tasks that can be executed simultaneously or overlap in terms of timing.
They are independent of each other and do not rely on the completion of one another to
proceed.
Real-World Example: In the event planning industry, while one team is handling "Catering
Arrangements" for a wedding, another team might be working on "Decorations."
6.How can parallel activities help shorten the project schedule? are there any trade-offs?
Parallel activities can significantly help shorten a project's schedule in financial project
management. Here’s how they work and the associated trade-offs:
1.Reduced Project Duration 2. Increased Efficiency 3. Optimized Resource Utilization
Trade-offs and Risks:
1.Increased Coordination Complexity
2. Higher Risk of Rework
3.Quality Risks 4. Increased Resource Load
7.What is the difference between AON and PERT?
AON PERT
Uses nodes for activities and arrows Traditionally uses arrows for activities and nodes
for dependencies. for milestones/events
Emphasizes the visual scheduling of Focuses on time estimates and uncertainty,
tasks and identifying the critical path. providing an analysis of the project duration and
probability of meeting deadlines.
Generally, does not focus on time Uses probabilistic time estimates to account for
estimates but rather on task uncertainty in task durations.
sequencing and dependencies.
Commonly used for straightforward Often used for complex projects where time
project scheduling and dependency uncertainty is a significant factor, requiring more
analysis. detailed time analysis.
 24

8.Define AON and PERT and give a real-world example of each

Activity-on-Node (AON): AON is a type of network diagram used to represent project activities
and their dependencies.
Example: Nodes represent activities like "Design Interface," "Develop Backend," and "Test
Software."
Program Evaluation and Review Technique (PERT): PERT is a project management technique
used to analyze and represent the tasks involved in completing a project.
Example: For the same project, Activities are represented by arrows, and are represented by
nodes.
9.What is the critical chain? How does it differ from critical path?
The Critical Chain and the Critical Path are both concepts used in project management to
determine the most critical aspects of a project schedule.
Critical Chain: The Critical Chain Method (CCM), introduced by Eliyahu M. Goldratt, is a
scheduling approach that focuses on managing project constraints and incorporating buffers to
account for uncertainties.
10.Key Differences Between Critical Path and Critical Chain
Critical Path Critical Chain
Focuses solely on the sequence of tasks and Focuses on both task dependencies and
dependencies to determine the project resource constraints, and introduces buffers
duration. to manage uncertainties.
Does not typically include buffers or consider Incorporates buffers to absorb potential
uncertainty. delays and manage uncertainties.
Does not account for resource constraints Considers resource availability and
directly. constraints, aiming to optimize resource
utilization and avoid multitasking.
Delays in tasks on the critical path directly Uses buffers to manage and mitigate the
impact the project’s end date. impact of delays, aiming to protect the project
schedule and improve on-time delivery.
A traditional project management technique An advanced technique focusing on both task
focusing on task sequencing. and resource management with an emphasis
on managing uncertainties and optimizing
project completion.
 25

11.Crashing vs Fast tracking

Project Crashing Fast tracking
Increasing resources for specific tasks Completing tasks in parallel or overlapping
work
Increased cost due to additional resources No increase in cost unless resources need to
work overtime
Low increase in risk Moderate increase risk due to potential
rework or errors
Less complex but need to manage many More complex due to the new workflow
chefs in the kitchen
Projects with a fixed deadline and sufficient Projects with a fixed deadline and sufficient
budget to cover additional costs resources to manage parallel activities
12.In the context of critical chain project management what is resource contention
In Critical Chain Project Management (CCPM), resource contention occurs when the demand for
a resource is greater than the supply.
Resource contention happens when multiple processes require the same resource, and one
process is able to access the resource before the others. This delays the other processes until
the first one is finished.
Effects of Resource Contention:
1.Delays in Task Completion 2. Increased Task Switching 3. Extended Project Timeline
How CCPM Addresses Resource Contention:
1.Buffer Management 2. Resource-Leveling 3. Focused Execution
9. Define the following and give a real-world example of each.
Finish-to-Start (FS) : Task A must be finished before Task B can start. This is the most common
type of dependency.
Example: A contractor must finish laying the foundation (Task A) before starting to build the walls
(Task B) of a house.
Start-to-Start (SS): Task A must start before Task B can start, but they can progress .
Example: When painting a room, you can start preparing the walls (Task A) and then begin
painting (Task B) as soon as the preparation starts, without needing to wait for Task A to finish.
Finish-to-Finish (FF): Task A must finish before Task B can finish. The tasks can occur in parallel,
but Task B cannot finish until Task A is completed.
Example: When organizing a conference, the keynote speaker's speech (Task A) must finish
before the closing ceremony (Task B) can conclude.
Start-to-Finish (SF): Task A must start before Task B can finish. This is the least common type of
dependency.
Example: A security guard’s shift (Task A) must start before the previous guard’s shift (Task B) can
end, ensuring continuous coverage.
 26

Chapter-8
1.How does a project risk management approach provide an early warning signal for
impending problems or issues?
Project risk management is the process of identifying, analyzing, and responding to risks that
may arise during the life cycle of a project. It involves strategies such as response planning,
mitigation, deflection, and contingent planning to ensure project success. Project risk
management provides warning signals for impending problems through the following steps:
1. Identifying Risks Early
2. Assessing Risk Impact
3. Monitoring Risks Continuously
4. Triggering Action Plans
5. Communicating Alerts
2.How does a project risk management approach provide an early warning signal for
impending problems or issues?
Project risk management includes the processes of conducting risk management planning,
identification, analysis, response planning, and monitoring and control on a project; most of
these processes are updated throughout the project. The objectives of Project Risk Management
are to increase the probability and impact of positive events, and decrease the probability and
impact of events adverse to the project
3.What is meant by crisis management? And why organizations find themselves in this mode?
A state of perpetual crisis characterized by an inability to make effective and timely decisions.
Many people call this approach crisis management or firefighting because the project
stakeholders take a reactive approach or only address the project risks after they have become
problems. Too often plans are disregarded at the first sign of trouble, and instinctive reactions
to situations can lead to perpetual crisis management
4.Describe some of the common mistakes in project risk management.
1.Not understanding the benefits of risk management
2.Not providing adequate time for risk management
3.Not identifying and assessing risk using a standardized approach
4.Commitment by all stakeholders
5.Stakeholder responsibility
6.Different risks for different types of projects
5.Briefly describe what is required for effective and successful project risk management.
1.Plan Risk Management
2.Identify Risks
3.Perform Qualitative Risk Analysis
4.Perform Quantitative Risk Analysis
5.Plan Risk Responses
6.Monitor and Control Risks
 27

6.What is project risk?

Project risk is an uncertain event or condition that, if it occurs, has a positive or negative effect
on the project objectives.
7.What is project risk management?
Project risk management includes the processes of conducting risk management planning,
identification, analysis, response planning, and monitoring and control on a project; most of
these processes are updated throughout the project. The objectives of Project Risk Management
are to increase the probability and impact of positive events, and decrease the probability and
impact of events adverse to the project.
8.What types of commitment are necessary for risk planning?
1. Resource Commitment: Allocate sufficient resources for risk assessments and mitigation.
2. Leadership Commitment: Gain support from leadership and stakeholders to actively engage
3. Communication Commitment: Ensure effective communication about risks.
4. Documentation Commitment: Maintain accurate records of risk assessments and mitigation.
5. Monitoring and Review Commitment: Assess and review risk management strategies.
9.What is a “known” risk? Give an example of one.
known risks as events that are going to occur. In short, these events are like death and taxes—
they will happen and there is no uncertainty about it.
10.What is a “known-unknown” risk? Give an example of one.
known-unknowns are of identifiable uncertainty. For example, if l own a home or rent an
apartment, l know that you will receive a bill next month for the utilities l use. Although l know
the past amount for these bills, the precise amount l will owe the utility company will be
unknown until l receive the actual bill.
11.What is an “unknown-unknown” risk? Give an example of one.
Unknown-unknown risks are residual risks and reflect what we don’t know. Unknown-unknown
risks are really just a way to remind us that there may be a few risks remaining even after we
think we have identified them all. In general, these are the risks that we identify after they have
occurred.
12.What is the difference between an internal and external risk? Give an example of each.
In short, a project manager will (or should) have control over internal risks, but not external risks.
That distinction does not mean the project manager can ignore external risks. These risks can
have a significant impact on the project, as well as the project manager’s employment!
External risks are those that are outside of the project manager’s control, such as changes in the
market, economic conditions, or political instability.
Internal risks are those that are within the project manager’s control, such as inadequate
resources, poor communication, or inadequate planning.
 28

13.What is SWOT analysis? How can this technique be used to identify IT project risks?
SWOT analysis in project management is a method that’s used to assess a project’s strengths,
weaknesses, opportunities, and threats. It's a way to get a clear picture of both the positive and
negative factors that could impact your goals. SWOT analysis in identifying IT project risks:
1. Identifying Project Strengths and Weaknesses:
Strengths: Consider factors like experienced team members, adequate budget, supportive
leadership, and existing IT infrastructure.
Weaknesses: Assess areas such as limited resources, tight deadlines, lack of expertise, or
outdated technology.
2.Analyzing External Opportunities and Threats:
Opportunities: Identify factors such as emerging technologies, favorable market conditions, or
government initiatives that can benefit the project.
Threats: Consider potential risks like economic downturns, regulatory changes, security
breaches, or technical challenges.
14. What is the purpose of risk analysis and assessment?
The purpose of risk analysis and assessment is to identify, evaluate, and prioritize potential risks
that could impact a project or initiative. Here are some key objectives:
1.Proactive identification
2.Evaluation of impact
3.Prioritization
4.Mitigation planning
5.Decision-making
15. What is the difference between qualitative and quantitative risk analysis?
Qualitative Risk Analysis (QLRA) Quantitative Risk Analysis (QTRA)
Performed first. Performed after qualitative analysis is done.
Should be always done. Can be optional.
Examines individual project risks. Examines the combined effects of risks on
the project as a whole to determine an
overall project risk.
Day-to-day risk management is focused on Overall project risk is important for strategic
individual project risks. decision making and project governance.
For smaller projects QLRA will suffice. QTRA For large projects, QTRA is needed to -❘know
is time-consuming and hence may not be the overall risk of the project.
desired.
It's about the risk's discrete probability of It's about probabilistic distributions (discrete
occurrence and impact. or continuous) to characterize the risk's
probability and impact.
Risk scale is qualitative and can be textual Risk scale and scores are quantitative,
(low, medium, high), color coded, numeric typically specified in monetary and schedule
(from 1 to 5) or some combination. terms.
 29

16. Describe the concept of expected value.

Expected value is a statistical term that represents the average value of a random variable over
many trials. It's essentially a weighted average, where each possible value is multiplied by its
probability of occurrence, and then all the products are summed.
Formula: If X is a random variable with possible values x1, x2, ..., xn and corresponding
probabilities p1, p2, ..., pn, then the expected value of X is:
E(X) = x1p1 + x2p2 + ... + xnpn
17. What is the purpose of a decision tree? What are the advantages and disadvantages.
A decision tree is a graphical representation that helps visualize and analyze potential decisions
and their outcomes.
Advantages: 1. Easy to understand and visualize.
2.Can handle both quantitative and qualitative data.
3.Can be used for both short-term and long-term decision-making.
4.Can be updated as new information becomes available.
Disadvantages: 1. Can become complex for large problems.
2.May be sensitive to small changes in data.
3.Assumes independence of variables, which may not always be true.
4.May not be suitable for continuous data.
18. What is the difference between a discrete probability distribution and a continuous
probability distribution?
Continuous Probability Discrete Probability
Distributions Distributions
Probability distributions that can take on any Probability distributions that can only take on
value within a given range. specific, distinct values.
Normal distribution, exponential distribution, Binomial distribution, Poisson distribution,
uniform distribution. geometric distribution.
Probability density function (PDF) is used to Probability mass function (PMF) is used to
describe the likelihood of a random variable describe the likelihood of a random variable
taking on a specific value. taking on a specific value.
Continuous range of values within a given Discrete set of values, often integers or
interval. whole numbers.
Probability of any specific value is zero, as Probability of any specific value is non-zero.
there are infinitely many possible values.
Continuous cumulative distribution function Discrete cumulative distribution function
(CDF) is used to describe the probability of a (CDF) is used to describe the probability of a
random variable being less than or equal to a random variable being less than or equal to a
specific value. specific value.
Calculated using integrals. Calculated using summations.
Can be both continuous and discrete random Can only be discrete random variables.
variables.
 30

19. Define and discuss the four risk strategies described in this chapter.
1.Risk avoidance: This risk management strategy helps reduce the possibility of potential risks
by avoiding risky tasks altogether.
2.Risk reduction: This strategy helps reduce the severity of potential risks by taking steps to
mitigate the effects of those risks.
3.Risk transferring: This strategy helps reduce exposure to potential risks by transferring those
risks to another party.
4.Risk acceptance: This strategy helps accept the potential risks associated with a project and
take steps to plan for those risks.
20. What is risk monitoring and control?
Risk monitoring and control is a critical component of risk management that involves
continuously identifying, assessing, and addressing potential risks throughout a project or
enterprise. It's a proactive approach designed to minimize the negative impact of risks and
maximize opportunities
21. What is the purpose of evaluating a response to a particular risk?
The purpose of evaluating a response to a particular risk is to determine its effectiveness in
mitigating or eliminating the threat. Here are some key reasons why evaluation is essential:
1.Ensure adequate protection: By assessing the response, you can verify that it is sufficient to
safeguard your assets, operations, or reputation from the identified risk.
2.Identify weaknesses: Evaluation can reveal areas where the response may be lacking or
ineffective, allowing for adjustments or improvements.
3.Optimize resource allocation: Evaluating the response's cost benefit ratio helps ensure that
resources are being used efficiently and effectively to manage the risk.
4.Demonstrate due diligence: A well-evaluated response can provide evidence that you have
taken reasonable steps to manage risks, which can be important in legal or regulatory contexts.
5.Learn from experience: Evaluating the response can provide valuable insights for future risk
management activities.