BSE Bachelor of Science in Engineering Management: Project Management Fundamentals 5 — Questions and Answers
Question 1: During a project, a stakeholder requests a change that would add new features beyond the original scope without a formal change request. This situation is best described as:
- Risk transfer
- Scope creep (Correct answer)
- Schedule compression
- Value engineering
Correct answer: Scope creep
Scope creep refers to uncontrolled expansion of project scope without adjustments to time, cost, and resources.
Question 2: Which risk response strategy involves shifting the negative impact of a risk to a third party?
- Avoid
- Mitigate
- Transfer (Correct answer)
- Accept
Correct answer: Transfer
Transferring a risk moves ownership of the risk and its consequences to another party, such as through insurance or outsourcing.
Question 3: In the Tuckman model of team development, during which stage do team members begin challenging each other and experiencing conflict?
- Forming
- Storming (Correct answer)
- Norming
- Performing
Correct answer: Storming
The Storming stage is characterized by interpersonal conflict as team members compete for roles and push back on authority.
Question 4: A Work Breakdown Structure (WBS) is best described as:
- A network diagram showing activity dependencies
- A hierarchical decomposition of the total scope into manageable work packages (Correct answer)
- A bar chart showing project timelines
- A list of all project risks
Correct answer: A hierarchical decomposition of the total scope into manageable work packages
The WBS decomposes total project scope into smaller, manageable components called work packages.
Question 5: Which document formally closes a project or phase and confirms that all work has been completed?
- Project charter
- Lessons learned register
- Final project report / project closure document (Correct answer)
- Project management plan
Correct answer: Final project report / project closure document
The project closure document (or final report) formally confirms project completion and transfers deliverables to the appropriate stakeholders.
Question 6: An engineering manager is evaluating two projects using Net Present Value (NPV). Project A has NPV = $120,000 and Project B has NPV = -$30,000. Which should be selected?
- Project B, because it has a lower cost
- Project A, because a positive NPV indicates added value (Correct answer)
- Project B, because negative NPV means lower risk
- Neither, because NPV alone is insufficient
Correct answer: Project A, because a positive NPV indicates added value
A positive NPV means the project generates more value than its cost of capital; a negative NPV destroys value and should generally be rejected.
Question 7: What is the primary benefit of using a communication management plan in an engineering project?
- It replaces all informal team communications
- It ensures the right stakeholders receive the right information at the right time (Correct answer)
- It eliminates the need for status meetings
- It defines the project's technical specifications
Correct answer: It ensures the right stakeholders receive the right information at the right time
A communication management plan documents who needs what information, when they need it, and through which channels, reducing miscommunication.
During a project, a stakeholder requests a change that would add new features beyond the original scope without a formal change request.
This situation is best described as: