Chapter 1

Question 1

What is operations management?

Answer 1

involves the tasks that a business performs to produce goods or services

Question 2

What is Project Management?

Answer 2

method used to take on and complete project challenges

Question 3

A Project

Answer 3

temporary endeavour undertaken to create a unique product, service, or result

Question 4

A Process

Answer 4

refers to ongoing, day-to-day, and repetitive activities in which an organisation engages while producing goods and services

Question 5

General projects characteristics

Answer 5

• specific
• building blocks for company’s goals
• responsible for newest and most improved products
• provide strategy for management of change
• cross functional organization
• management functions: planning, organizing, directing and controlling
• principal outcomes being customer satisfaction
• projects are terminated upon completion of performance objectives

Question 6

Differences between process and project management: Process

Answer 6

• Repeat process or product
• Several objectives
• ongoing
• people are homogenous
• well-established systems
• greater certainty
• part of line organization
• established practices
• supports status quo

Question 7

Differences between process and project management: Project

Answer 7

• new process or product
• one objective
• one-shot-limited life
• more heterogeneous
• integrated system efforts
• greater uncertainty
• outside of line organization
• violates established practice
• upsets status quo

Question 8

Project success rates

Answer 8

• software and hardware projects fail at a 65% rate
• over half of all IT projects become runaways (overshooting their budgets and timetables, also failing to succeed in their goals)
• 30% of technology-based projects and programs are a success
• 17% IT projects have a average cost overrun of 200% and schedule overrun of 70%

Question 9

Why are projects important

Answer 9

• shortened product life cycles
• narrow product launch windows
• increasingly complex and technical products
• emergence of global markets

Question 10

Project life cycle stages

Answer 10

There are four phases:
- Conceptualization
- Planning
- Execution
- Termination

Question 11

Conceptualization/development (1st stage)

Answer 11

development of the initial goal and technical specifications of the project, key stakeholders are identified and signed on at this phase

Question 12

Planning (2nd phase)

Answer 12

all detailed specifications, schedules, schematics, and plans are developed

Question 13

Execution/Implementation (3rd phase)

Answer 13

the actual “work” of the project is performed

Question 14

Termination (Final phase)

Answer 14

project is transferred to the customer, resources reassigned, project is closed out

Question 15

Change during project life cycle

Answer 15

• Client Interest: the level of concern expressed by the project customer
• Project stakeholders: amount of corporate investment in the project
• Resources: commitment of financial, human, and technical resources over the life of the project
• Creativity: degree of innovation required by the project
• Uncertainty: degree of uncertainty and risk associated with the project

Question 16

Project life cycles and their effects

Answer 16

• Client interest: follows a U-shaped curve (enthusiasm int he beginning, lower levels of interest during development phases, and renewed interest as the project is completing)
• Project stake: investment increases as the project moves forward
• Resources: level of resources is highest during execution stage
• Creativity: high at the beginning, becomes less important during execution phase
• Uncertainty: high at the beginning, then begins to decrease

Question 17

Quadruple Constraint of Project Success

Answer 17

• Time: projects are constrained by a specific period of time during which they must be completed
• Budget: projects must meet budgeted allowances in order to use resources as efficiently as possible
• Performance: all projects are developed in order to adhere to some initially determined technical specifications
• Client acceptance: projects are developed with clients in mind, and their purpose is to satisfy customer needs

Question 18

Project Manager Responsibilities

Answer 18

1. Selecting a team
2. Developing project objectives and a plan for execution
3. Performing risk management activities
4. Cost estimating and budgeting
5. Scheduling
6. Managing resources (project resources and team personnel)