HPHM 4305 Fundamentals of Project Mgt - Midterm Exam Review (Qns & Ans) - TTUHSC 2025, Exams of Nursing

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HPHM 4305 Fundamentals of

Project Management

Midterm Exam Review

(Questions & Solutions)

1. Multiple Choice Question: A healthcare organization is about to launch a new patient information system. To formally authorize the project, a project charter is developed. Which component is NOT typically included in a project charter?

• A. Project purpose and objectives
• B. Detailed work breakdown structure
• C. Budget and high-level resources
• D. Identified stakeholders and sponsor Correct ANS : B. Detailed work breakdown structure Rationale: A project charter provides a high-level overview of the project, including its purpose, objectives, budget, and key stakeholders. The detailed work breakdown structure is created later during the planning phase.

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2. Fill-in-the-Blank Question: The series of phases that a project undergoes, from initiation to closure, is known as the __________ lifecycle. Correct ANS : project Rationale: The project lifecycle—including initiation, planning, execution, monitoring and controlling, and closure—is the framework used to manage projects systematically.

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5. Multiple Choice Question: A healthcare project team is implementing a new electronic health records (EHR) system and must identify, assess, and mitigate potential risks. Which process best describes this approach?

• A. Risk identification
• B. Risk analysis
• C. Risk response planning
• D. Risk monitoring and control Correct ANS : C. Risk response planning Rationale: Risk response planning moves beyond merely identifying and analyzing risks; it focuses on developing strategies to minimize adverse effects and capitalize on potential opportunities. In a dynamic project like an EHR implementation, planning appropriate risk responses is essential.

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6. Fill-in-the-Blank Question: The __________ method is a scheduling technique used to determine the longest sequence of dependent activities and calculate the shortest possible project duration. Correct ANS : Critical Path Rationale: The Critical Path Method (CPM) determines the critical (longest) path

through the project schedule, highlighting activities that directly impact the overall project duration. This method is vital for effective time management.

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7. True/False Question: True or False: A cost-benefit analysis in project management compares the total expected costs with the total expected benefits, with a positive result indicating that benefits exceed costs. Correct ANS : True Rationale: A cost-benefit analysis is used to determine the viability of a project by quantifying and comparing anticipated costs and benefits. A positive net benefit is a key indicator for proceeding with a project.

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8. Multiple Response Question: Which communication channels are recommended for effective project communication among stakeholders? (Select all that apply)

• A. Regular status meetings
• B. Email updates
• C. Project management software dashboards
• D. Informal text messages without documentation
• E. Written reports and newsletters Correct ANS s: A, B, C, E

Rationale: Project scope clearly outlines what is included—and what is not—within the project's objectives. It is crucial for managing stakeholder expectations and preventing scope creep.

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11. True/False Question: True or False: In healthcare projects, the choice between Agile and Waterfall methodologies should be based solely on the complexity of the project. Correct ANS : False Rationale: The choice between Agile and Waterfall should consider factors such as project complexity, stakeholder engagement, required flexibility, and the nature of the deliverables—not solely complexity. Agile may be advantageous when flexibility and iterative development are required.

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12. Multiple Response Question: Which methods are effective for resource allocation in project management? (Select all that apply)

• A. Resource leveling
• B. Critical chain project management
• C. Time-driven activity-based costing
• D. Arbitrarily assigning resources based on availability
• E. Forecasting future staffing needs Correct ANS s:

A, B, C, E

Rationale: Effective resource allocation includes methods such as resource leveling, critical chain techniques, time-driven costing, and forecasting. Arbitrary assignment (D) lacks the strategic analysis needed for optimal utilization.

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13. Multiple Choice Question: A healthcare management team is using project management software to monitor project progress. Which benefit is most directly associated with the use of such software tools?

• A. Reduced need for team meetings
• B. Real-time data tracking and centralized communication
• C. Decreased responsibility among managers
• D. Elimination of the need for risk assessment Correct ANS : B. Real-time data tracking and centralized communication Rationale: Project management software enhances efficiency by providing real-time updates, tracking progress, and streamlining communications among team members, which is especially important in dynamic project environments.

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14. Fill-in-the-Blank Question: A __________ chart is a visual tool that displays the schedule of project activities, their durations, and dependencies, aiding in effective project timeline management.

• E. Laissez‑faire leadership Correct ANS s: A, B, D Rationale: Transformational, situational, and servant leadership styles promote collaboration, adaptability, and a supportive environment, all of which improve project outcomes in healthcare. Autocratic and laissez‑faire leadership styles can be less effective in complex, dynamic project settings.

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17. Multiple Choice Question: 

Stakeholder engagement is crucial for project success. Which strategy is most effective for managing stakeholder expectations in a healthcare project?

• A. Providing frequent, clear updates and progress reports
• B. Limiting communications to formal reports only
• C. Involving stakeholders only at the beginning and end of the project
• D. Avoiding detailed reports to prevent confusion Correct ANS : A. Providing frequent, clear updates and progress reports Rationale: Regular, transparent communication helps keep stakeholders informed and engaged, ensuring that expectations are managed effectively throughout the project lifecycle.

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18. Fill-in-the-Blank 

Question: A project milestone is a __________ event or achievement in the project timeline that signifies the completion of a major phase. Correct ANS : key Rationale: Milestones serve as critical checkpoints in the project schedule. They help managers track progress and ensure that projects are progressing as planned.

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19. True/False Question: True or False: Change management planning is essential in project management because even minor changes during execution can significantly impact the overall project schedule and scope. Correct ANS : True Rationale: Change management identifies and controls changes throughout the project lifecycle. Even small deviations can result in delays or cost overruns if not proactively managed.

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20. Multiple Response Question: Which steps are involved in the project closure phase? (Select all that apply)

• A. Finalizing all project documentation

Question: The individual who provides overall direction, resources, and support for a project and is accountable for its success is known as the project __________. Correct ANS : sponsor Rationale: The project sponsor is a key stakeholder who champions the project, secures funding, and works with the project manager to overcome obstacles, ensuring that strategic objectives are met.

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23. True/False Question: True or False: Time management in project planning strictly involves scheduling tasks, without consideration of resource allocation or task dependencies. Correct ANS : False Rationale: Effective time management requires scheduling tasks while accounting for resource allocation, task dependencies, and potential bottlenecks. Overlooking these can lead to unrealistic timelines and project delays.

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24. Multiple Response Question: Which components are integral to a comprehensive quality management plan in a project? (Select all that apply)

• A. Quality assurance processes
• B. Quality control tools and metrics
• C. Continuous improvement initiatives
• D. Strict adherence to outdated quality standards
• E. Stakeholder feedback for process improvements Correct ANS s: A, B, C, E Rationale: A quality management plan should combine quality assurance, measurement instruments, continuous improvement frameworks, and stakeholder input. Rigid adherence to outdated standards (D) may hinder the adoption of best practices.

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25. Multiple Choice Question: 

To secure financing for a major capital project in a healthcare facility, which financial tool is most appropriate to assess the long-term performance and viability of the investment?

• A. Break-even analysis
• B. Net Present Value (NPV) calculation
• C. Internal Rate of Return (IRR)
• D. Profit Margin Analysis Correct ANS : B. Net Present Value (NPV) calculation Rationale: NPV calculates the present value of future cash flows associated with a project. A positive NPV indicates that the project is expected to generate value over time, making it a preferred metric for long-term investments.

Which elements should be included in a comprehensive project communication plan? (Select all that apply)

• A. Stakeholder contact information
• B. Frequency and format of updates
• C. Communication channels and responsibilities
• D. Confidential financial data only accessible to the CFO
• E. Escalation procedures for issues Correct ANS s: A, B, C, E Rationale: A robust communication plan includes stakeholder contact details, regular update schedules, clear channels and responsibilities, and escalation procedures. Confidential data should be handled per policy but is not an element of the communication plan itself.

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29. Multiple Choice Question: 

In planning a healthcare project with limited capital, which financial analysis method helps managers evaluate the investment’s return relative to its cost?

• A. Return on Investment (ROI)
• B. Liquidity Ratio Analysis
• C. Debt-to-Equity Ratio
• D. Market Share Analysis Correct ANS : A. Return on Investment (ROI) Rationale: ROI compares profits to the costs of an investment, helping managers determine whether the project will yield sufficient returns relative to its

expenditures. This method is particularly valuable when capital resources are limited.

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30. Fill-in-the-Blank Question: Effective project governance involves establishing clear roles, responsibilities, and decision-making processes, which are documented in a project __________. Correct ANS : charter Rationale: A project charter formally authorizes a project and outlines governance structures, including roles, responsibilities, and decision-making protocols. It is fundamental for accountability and guiding project execution. A healthcare organization is implementing a new electronic health record (EHR) system. The project manager identifies a significant risk: potential data breaches. Which of the following is the most appropriate risk response strategy? a) Risk avoidance b) Risk transference c) Risk mitigation d) Risk acceptance ANS : c) Risk mitigation Rationale: Mitigating the risk of data breaches involves implementing security measures, which reduces the impact or likelihood of the risk occurring. During the planning phase of a hospital expansion project, the project manager realizes that the initial budget estimate is insufficient due to

hospital's new patient intake process. The critical path identifies: a) The tasks with the most slack time. b) The tasks that can be delayed without affecting the project completion date. c) The shortest possible time to complete the project. d) The longest sequence of activities that must be completed on time for the project to finish on schedule. ANS : d) The longest sequence of activities that must be completed on time for the project to finish on schedule. Rationale: CPM helps identify the essential tasks that directly impact the project's overall duration. Fill-in-the-Blank The project management process group that focuses on monitoring and controlling project activities is the _ process group. ANS : Monitoring and Controlling Rationale: This process group ensures that the project stays on track. A _ is a document that formally authorizes a project and gives the project manager the authority to apply organizational resources to project activities. ANS : Project Charter Rationale: The project charter provides the project manager with the necessary authority. The process of breaking down a project into smaller, more manageable tasks is called _. ANS : Work Breakdown Structure (WBS) Rationale: The WBS helps organize and define the project scope. _ is the process of assessing the likelihood and impact of potential risks and developing plans to address them. ANS : Risk Management Rationale: Risk management is crucial for project success.

The project management knowledge area that focuses on managing stakeholder expectations and communication is _. ANS : Stakeholder Management Rationale: Effective stakeholder management is critical for project success. True/False The project manager is solely responsible for the success of a project. ANS : False Rationale: Project success depends on the collaboration of the entire project team and stakeholders. A Gantt chart is primarily used for resource allocation. ANS : False Rationale: Gantt charts are used for scheduling and tracking project tasks. Change control is an optional process in project management. ANS : False Rationale: Change control is a crucial process for managing changes to the project scope, schedule, and budget. Project closure involves only administrative tasks. ANS : False Rationale: Project closure includes administrative tasks, but also evaluating project performance, documenting lessons learned, and obtaining stakeholder acceptance. Agile methodologies are generally better suited for projects with clearly defined requirements and minimal changes. ANS : False Rationale: Agile methodologies are better suited for projects with evolving requirements.