Module 1: Fundamentals of project initiation

Reflection: Project initiation and key components

Practice Quiz

In this exercise, you will read a scenario and identify the six key components of project initiation:

Goals

Scope

Project deliverables

Success criteria

Stakeholders

Resources

Start by reading the scenario:

Imagine you are a project manager at an educational software company. You’re assigned a new project to develop a digital grading platform for a local high school. Before beginning the project, you meet with teachers, school administrators, the school IT department, and the district superintendent to discuss the project and get their input.

During these meetings, you organized your thoughts by writing down project key components that the stakeholders have requested. Your notes on the key components are:

$150,000 maximum budget

Team: can add one member from the school IT department

Platform should allow teachers to enter grades and allow students/parents to view grades

Need full teacher buy-in at high school: 100% adoption within next nine months

Project should focus only on the digital grading platform and NOT impact other digital platforms (ex. attendance, school lunch payments)

Overall, the school is seeking a platform for digital grading

The next step in the project is to organize the key components into a project charter. You will then present the charter to the individuals involved with the project. The project charter ensures everyone is aligned before planning and then executing the project.

1.Which of the key components is the project’s goal? Write one sentence.

Answer:
The project’s goal is to develop a digital grading platform for the high school that allows teachers to enter grades and students/parents to view them.

2. Which key component outlines the project’s scope? Write one sentence.

Answer:
The project scope is focused solely on the digital grading platform and does not include other digital platforms, such as attendance or school lunch payments.

3. Which key component is the project deliverable? Write one sentence.

Answer:
The project deliverable is a functional digital grading platform that meets the needs of teachers, students, and parents.

4. Which key component outlines the project’s success criteria? Write one sentence.

Answer:
The success criteria are achieving 100% teacher adoption within the next nine months.

5. Who are the project stakeholders? Write one sentence.

Answer:
The stakeholders include teachers, school administrators, the school IT department, and the district superintendent.

6. Which key components outline the resources you will have at your disposal for the project?

Answer:
The resources include a maximum budget of $150,000 and the ability to add one member from the school IT department to the project team.

Module 1 Challenge

Graded Quiz

7.Why is it important to initiate a project? Select all that apply.

  • Help the project manager establish a good reputation
  • Provide a strong foundation and set the stage for success
  • Determine if the project’s benefits outweigh the costs
  • Solidify the scope of a project

8. What two questions can a project manager ask to determine a project’s costs?

  • How will the user experience be improved?
  • What are the ongoing project costs?
  • What value will the project create?
  • How much time will people have to spend on the project?

9. What are the key components of project initiation?

  • Goals, scope, planning, documentation, success criteria, and resources
  • Goals, scope, deliverables, success criteria, stakeholders, and resources
  • Findings, scope, planning, deliverables, success criteria, and resources
  • Findings, scope, deliverables, monitoring progress, stakeholders, and resources

Explanation:
These components are essential during the initiation phase:

  • Goals: What the project aims to achieve.
  • Scope: The boundaries of the project (what’s included and excluded).
  • Deliverables: Tangible outputs of the project.
  • Success criteria: Metrics to determine if the project is successful.
  • Stakeholders: Individuals or groups impacted by or involved in the project.
  • Resources: People, budget, and materials available for the project.

10. Imagine you’re the project manager of a new grocery delivery service. You meet with stakeholders to set an overarching framework of what is and is not included in the project statement of work and deliverables. Which project initiation component are you trying to determine?

  • Scope
  • Resources
  • Project charter
  • Success criteria

Explanation:
The scope defines the boundaries of the project—what work will be included and excluded. In this case, meeting with stakeholders to outline the statement of work and deliverables ensures clarity on what the project will accomplish.

11. What term refers to the budget, people, materials, and other items necessary to complete a project?

  • Deliverables
  • Resources
  • Scope
  • Success criteria

12. A project charter adds value to projects in what three ways?

  • Sets up a framework for what project work the team needs to do
  • Allows project managers to get organized
  • Includes a plan to mitigate potential risks
  • Helps project managers communicate project details to others

13. Fill in the blank: _____ are gains that are not quantifiable.

  • Quarterly income
  • Ongoing costs
  • Intangible benefits
  • Yearly profits

14. You expect that a project will bring in $25,000 USD in revenue per year. You estimate it will cost $12,000 up front. You also estimate costs of $200 per month for the first 12 months, which equals $2,400 per year. Using the formula (G-C) ÷ C = ROI, how would you calculate the project’s return on investment (ROI) after the first 12 months?

  • (25,000 – 14,400) ÷ 14,400 = 74%
  • (25,000 – 12,000) ÷ 12,000 = 108%
  • (25,000 – 12,000) ÷ 14,400 = 90%
  • (25,000 – 14,400) ÷ 12,000 = 88%

15. Fill in the blank: Project initiation includes determining resources, documenting key components, and _____.

  • solidifying scope
  • establishing a schedule
  • finalizing budgets
  • onboarding the team

16. As a project manager, you investigate the value a project will create and how much time will be saved. What step of the cost benefit analysis are you completing?

  • Expense analysis
  • Goals analysis
  • Cost analysis
  • Benefit analysis

Explanation:
The cost-benefit analysis evaluates whether a project is worth pursuing by comparing its expected benefits to its costs. In this step, you focus on identifying the value the project creates, such as time saved, revenue gained, or increased efficiency.

17. Which of the following are key components of project initiation? Select all that apply.

  • Scope
  • Success criteria
  • Project charter
  • Goals

18. As a project manager, you define the standards to meet for the project’s success. Which key component of project initiation does this scenario concern?

  • Resources
  • Success criteria
  • Deliverables
  • Scope

19. Imagine that the main supplier for a construction project runs out of steel girders and needs to obtain more to complete the order. Which key component of project initiation does this scenario concern?

  • Resources
  • Goals
  • Scope
  • Deliverables

Explanation:
Resources include anything needed to complete the project, such as materials, personnel, or finances. The scenario focuses on the lack of a critical material (steel girders), which is a resource issue.

20. What is the purpose of a project charter?

  • Determines project roles and assign associated tasks
  • Establishes communication channels and record preferred methods
  • Defines the project and its goals and outline what is needed to accomplish them
  • Outlines how to mitigate potential risks

21. When calculating a cost-benefit analysis for a project, what do you call gains that are not quantifiable?

  • Yearly profits
  • Intangible benefits
  • Ongoing costs
  • Quarterly income

22. You expect that a project will bring in $15,000 USD in revenue per year. You estimate it will cost $10,000 up front. You also estimate costs of $100 per month for the first 12 months, which equals $1,200 per year. Using the formula (G-C) ÷ C = ROI, how would you calculate the project’s return on investment (ROI) after the first 12 months?

  • (15,000 – 11,200) ÷ 11,200 = 34%
  • (15,000 – 10,000) ÷ 11,200 = 45%
  • (11,200 – 10,000) ÷ 15,000 = 8%
  • (15,000 – 11,200) ÷ 15,000 = 25%

23. In the initiation phase, a project manager performs research, consults with stakeholders, and clearly documents key project components. What does going through this process help them solidify?

  • Project tasks
  • Project scope
  • Project delivery dates
  • Project closeouts

24. As a project manager, you add a task to complete a new feature in the app your team is building. Which key component of project initiation are you working on?

  • Success criteria
  • Deliverables
  • Scope
  • Resources

25. As a project manager, you determine the budget, people, and material that you will need for an upcoming project. Which project initiation component are you trying to determine?

  • Project charter
  • Goals
  • Resources
  • Success criteria

26. As a project manager, you complete the stages in the project initiation phase. Who do you meet with to get project approval?

  • The vendors working on the project
  • The developing team
  • The project stakeholders
  • The project resources

27. Which document allows project managers to get organized, sets up a framework for what needs to be done, and communicates the framework to stakeholders?

  • A project charter
  • A risk log
  • A retrospective document
  • A budget plan

Explanation:
The project charter is a document that formally authorizes a project. It outlines the project’s purpose, objectives, and key components. It helps the project manager communicate the framework to stakeholders and ensures everyone is aligned.

28. In the initiation phase, a project manager performs research, consults with stakeholders, and clearly documents key project components. What does going through this process help them solidify?

  • Project tasks
  • Project scope
  • Project delivery dates
  • Project closeouts

29. As a project manager, you analyze the amount of time team members will need to spend on a project and the likely ongoing project expenses. What step of the cost benefit analysis are you completing?

  • Benefit analysis
  • Goals analysis
  • Cost analysis
  • Expense analysis

30. As a project manager, you work with key stakeholders to define what needs to be completed and achieved for a project . Which key component of project initiation does this scenario concern?

  • Resources
  • Deliverables
  • Goal
  • Success criteria

31. What type of document needs approval from key stakeholders in order to move to the planning stage?

  • A risk log
  • A retrospective document
  • A project charter
  • A budget plan

32. You expect that a project will bring in $20,000 USD in revenue per year. You estimate it will cost $8,000 up front. You also estimate costs of $150 per month for the first 12 months, which equals $1,800 per year. Using the formula (G-C) ÷ C = ROI, how would you calculate the project’s return on investment (ROI) after the first 12 months?

  • (20,000 – 8,000) ÷ 9,800 = 90%
  • (20,000 – 9,800) ÷ 9,800 = 104%
  • (20,000 – 9,800) ÷ 8,000 = 88%
  • (20,000 – 14,400) ÷ 9,800 = 108%

33. What are two potential consequences of a project manager failing to properly initiate a project? Select all that apply.

  • Stakeholders might not agree on what success looks like.
  • External risks can affect project success.
  • New dependencies can arise.
  • Resources can be underestimated.

34. Fill in the blank: A cost-benefit analysis weighs the potential value of a project against money, resources, and _____ required.

  • policies
  • time
  • expectations
  • competitors

35. As a project manager, you meet with stakeholders to set what products and services you will complete for the project. Which project initiation component are you trying to determine?

  • Success criteria
  • Resources
  • Deliverables
  • Scope

36. Which of the following could be considered intangible benefits? Select all that apply.

  • Customer satisfaction
  • Brand perception
  • Income earned
  • Employee satisfaction

37. Fill in the blank: A cost-benefit analysis weighs the potential value of a project against money, resources, and _____ required.

  • policies
  • competitors
  • time
  • expectations

38. What key component in the project management cycle is a meeting scheduled with staff to train on a new product?

  • Scope
  • Deliverable
  • Resource
  • Success Criteria

39. As a project manager, what question will you ask to determine the brand perception of a project?

  • Is this project likely to improve the company’s image and attract more customers?
  • Will the project increase customer retention and cause them to spend more time on the product?
  • Will this project reduce employee’s overtime hours and save the company money?
  • Is this project likely to improve employee morale and reduce turnover?

40. Fill in the blank: _____ are the first thing a project manager needs to consider during the initiation phase.

  • Planning
  • Success criteria
  • Goals
  • Resources

41. In a project, what group of people are instrumental to determine goals and the success criteria of a project?

  • Project vendors
  • Project caterers
  • Project developers
  • Project stakeholders

42. Imagine you’re the project manager of a new grocery delivery service. You meet with stakeholders to decide how to measure project success. Which project initiation component are you trying to determine?

  • Goals
  • Scope
  • Success criteria
  • Resources

43. During the initiation phase, you notice the resources assigned to the project will be minimal and the deadline will be extended. What is a next step to ensure project initiation success?

  • Meet with stakeholders for sufficient understanding of project goals.
  • Create an efficient project plan.
  • Create checkpoints in the project for all milestones.
  • Ensure all the tasks are assigned on the project.

44. What type of analysis compares the value of a project’s outcomes with the financial and time expenses of the project?

  • Goals analysis
  • Cost-benefit analysis
  • Benefit analysis
  • Visual analysis

45. You expect that a project will bring in $12,000 USD in revenue per year. You estimate it will cost $5,000 up front. You also estimate costs of $50 per month for the first 12 months, which equals $600 per year. Using the formula (G-C) ÷ C = ROI, how would you calculate the project’s return on investment (ROI) after the first 12 months?

  • (12,000 – 5,600) ÷ 5,000 = 128%
  • (12,000 – 5,600) ÷ 5,600 = 114%
  • (5,600 – 5,000) ÷ 12,000 = 5%
  • (12,000 – 5,000) ÷ 5,000 = 140%

46. Why is it important to perform a cost-benefit analysis during the initiation phase? Select all that apply.

  • To add up the expected value, or benefits, of a project
  • To outline project goals and how to accomplish them
  • To compare the project benefits to the costs
  • To set up a framework for what project work the team needs to do

47. As a project manager, what is your main responsibility during the initiation phase?

  • Hold a meeting with the team that will execute the tasks.
  • Create a project plan to list out all the tasks to complete.
  • Figure out all the pieces that have to come together in order to get the work done.
  • Create a budget plan with all the expenses for the project.

Explanation:
During the initiation phase, the project manager’s main responsibility is to lay the foundation for the project. This includes identifying goals, scope, resources, stakeholders, and potential risks. Holding meetings or creating plans happen later in the project life cycle (e.g., planning or execution phases).

48.As a project manager, what question will you ask to determine the employee satisfaction of a project?

  • Will the project increase customer retention and cause them to spend more time on the product?
  • Will this project reduce employee’s overtime hours and save the company money?
  • Is this project likely to improve employee morale and reduce turnover?
  • Is this project likely to improve the company’s image?

Explanation:
Employee satisfaction focuses on morale, motivation, and engagement. The correct question addresses the impact of the project on these aspects. Other options, like customer retention or the company’s image, do not directly relate to employee satisfaction.

49.You expect that a project will bring in $18,000 USD in revenue per year. You estimate it will cost $10,000 up front. You also estimate costs of $100 per month for the first 12 months, which equals $1,200 per year. Using the formula (G-C) ÷ C = ROI, how would you calculate the project’s return on investment (ROI) after the first 12 months?

  • (18,000 – 11,200) ÷ 11,200 = 61%
  • (18,000 – 10,000) ÷ 10,000 = 140%
  • (11,200 – 10,000) ÷ 18,000 = 5%
  • (18,000 – 11,200) ÷ 10,000 = 128%

Explanation:
The formula for Return on Investment (ROI) is:

ROI=Gains (Revenue) – CostsCosts\text{ROI} = \frac{\text{Gains (Revenue) – Costs}}{\text{Costs}}

  • Gains (Revenue): $18,000/year.
  • Costs: Initial $10,000 + $1,200 (monthly costs for 12 months) = $11,200.

Substitute the values:

ROI=18,000−11,20011,200=6,80011,200≈0.61 or 61%.\text{ROI} = \frac{18,000 – 11,200}{11,200} = \frac{6,800}{11,200} \approx 0.61 \text{ or } 61\%.

Leave a Reply