Sunday, January 29, 2017

MBA Operations Management - Test Bank - Chapter 03a

Operations Management, 12e (Heizer/Render/Munson)
Chapter 3  Project Management

Section 1   The Importance of Project Management

1) One phase of a large project is scheduling.
Answer:  TRUE
Diff: 1
Learning Outcome:  Describe the goals and stages of project management

2) Which of the following statements regarding Bechtel is true?
  1. A) Its competitive advantage is project management.
  2. B) Bechtel was the construction contractor for the Hoover Dam.
  3. C) While helping to rebuild Iraq, Bechtel's crews had to travel under armed escort.
  4. D) Bechtel's procurement program is global in nature.
  5. E) All of the above are true.
Answer:  E
Diff: 1
Learning Outcome:  Describe the goals and stages of project management

3) Which of the following statements about Bechtel is true?
  1. A) Even though Bechtel is over 100 years old, the Kuwaiti oil fields was its first "project."
  2. B) Bechtel is the world's premier manager of massive construction and engineering projects.
  3. C) Bechtel's competitive advantage is supply chain management.
  4. D) While its projects are worldwide, its network of suppliers is largely in the United States
  5. E) All of the above are true.
Answer:  B
Diff: 2
Learning Outcome:  Describe the goals and stages of project management

4) Which of the following projects were completed by Bechtel?
  1. A) Hoover Dam
  2. B) Boston Central Artery/Tunnel
  3. C) Rebuilding Kuwait after Iraq's invasion in 1990
  4. D) Rebuilding Iraq after the U.S. invasion, starting in 2003
  5. E) All of the above were Bechtel projects
Answer:  E
Diff: 2
Learning Outcome:  Describe the goals and stages of project management

5) The phases of project management are:
  1. A) planning, scheduling, and controlling.
  2. B) planning, programming, and budgeting.
  3. C) planning, organizing, staffing, leading, and controlling.
  4. D) different for manufacturing projects than for service projects.
  5. E) GANTT, CPM, and PERT.
Answer:  A
Diff: 2
Learning Outcome:  Describe the goals and stages of project management

6) Which of the following is NOT one of the phases of project management?
  1. A) planning
  2. B) scheduling
  3. C) controlling
  4. D) budgeting
  5. E) All of the above are project management phases.
Answer:  D
Diff: 2
Learning Outcome:  Describe the goals and stages of project management

7) What are the three phases of a project? Describe each in a sentence or two.
Answer:  The three phases are planning, scheduling, and controlling. Planning includes goal setting, defining the project, and team organization. Scheduling relates people, money, and supplies to specific activities and relates activities to each other. Controlling is where the firm monitors resources, costs, quality, and budgets. It also revises or changes plans and shifts resources to meet time and cost demands.
Diff: 2
Learning Outcome:  Describe the goals and stages of project management

Section 2   Project Planning

1) A project organization works best for an organization when the project resides in only one of its functional areas.
Answer:  FALSE
Diff: 2
Key Term:  Project organization
Learning Outcome:  Describe the goals and stages of project management

2) One responsibility of a project manager is to make sure that the project meets its quality goals.
Answer:  TRUE
Diff: 2
Learning Outcome:  Describe the goals and stages of project management

3) Work breakdown structure is a useful tool in project management because it addresses the timing of individual work elements.
Answer:  FALSE
Diff: 2
Key Term:  Work breakdown structure (WBS)
AACSB:  Reflective thinking
Learning Outcome:  Describe the goals and stages of project management

4) Project managers have their own code of ethics, established by the Project Management Institute.
Answer:  TRUE
Diff: 2
AACSB:  Ethical understanding and reasoning
Learning Outcome:  Describe the goals and stages of project management

5) Ethical issues that can arise in projects include gifts from contractors, pressure to mask delays with false status reports, and pressure to compromise project quality to meet bonuses or avoid penalties related to schedules.
Answer:  TRUE
Diff: 1
AACSB:  Ethical understanding and reasoning
Learning Outcome:  Describe the goals and stages of project management

6) A project organization:
  1. A) is effective for companies with multiple large projects.
  2. B) is appropriate only in construction firms.
  3. C) often fails when the project cuts across organizational lines.
  4. D) is most helpful for ongoing projects with no termination date.
  5. E) is most helpful when the work contains simple and unrelated tasks.
Answer:  A
Diff: 2
Key Term:  Project organization
Learning Outcome:  Describe the goals and stages of project management

7) A code of ethics especially for project managers:
  1. A) has been established by the Project Management Institute.
  2. B) has been formulated by the Federal government.
  3. C) has been formulated by the World Trade Organization.
  4. D) is inappropriate, since everyone should use the same guidance on ethical issues.
  5. E) does not exist at this time.
Answer:  A
Diff: 2
AACSB:  Ethical understanding and reasoning
Learning Outcome:  Describe the goals and stages of project management

8) Ethical issues that may arise in projects large and small include:
  1. A) gifts from contractors.
  2. B) exaggerated expense reports.
  3. C) compromised quality standards to meet bonuses or avoid penalties related to schedules.
  4. D) pressure to mask delays with false status reports.
  5. E) all of the above.
Answer:  E
Diff: 1
AACSB:  Ethical understanding and reasoning
Learning Outcome:  Describe the goals and stages of project management

9) The project organization works best when which of the following conditions are satisfied?
  1. Work tasks can be defined with a specific goal and deadline.
  2. The job is typical and familiar to the existing organization.
III.  The work contains interrelated tasks requiring specialized skills.
  1. The project is temporary but unimportant to long-term organizational success.
  2. The project cuts across organizational lines.
  3. A) I, II, III, IV, V
  4. B) None of the above conditions need to be satisfied.
  5. C) I, III, V
  6. D) I, II, III, V
  7. E) I, III, IV, V
Answer:  C
Diff: 2
Key Term:  Project organization
Learning Outcome:  Describe the goals and stages of project management

10) A project organization that becomes permanent is often referred to as a:
  1. A) fixed project organization.
  2. B) matrix organization.
  3. C) normal organization.
  4. D) standard organization.
  5. E) permanent project organization.
Answer:  B
Diff: 3
Key Term:  Project organization
Learning Outcome:  Describe the goals and stages of project management

11) WBS stands for which of the following project management tools?
  1. A) work break schedule
  2. B) work breakdown status
  3. C) work breakdown schedule
  4. D) work breakdown structure
  5. E) work break status
Answer:  D
Diff: 2
Key Term:  Work breakdown structure (WBS)
Learning Outcome:  Describe the goals and stages of project management

12) Match the following steps in Microsoft's development of Windows 8 to their respective WBS level.

Step                                                                  Level
Develop Windows 8 Operating System        ?
System Testing                                                  ?
Compatible with Windows 7                          ?
Develop GUI's                                                   ?
Module Testing                                                 ?
  1. A) Level 1, Level 2, Level 4, Level 3, Level 3
  2. B) Level 1, Level 2, Level 3, Level 4, Level 5
  3. C) Level 0, Level 1, Level 2, Level 3, Level 4
  4. D) Level 0, Level 2, Level 2, Level 3, Level 3
  5. E) Level 5, Level 3, Level 4, Level 1, Level 2
Answer:  A
Diff: 3
Key Term:  Work breakdown structure (WBS)
AACSB:  Information technology
Learning Outcome:  Describe the goals and stages of project management

13) A(n) ________ is an organization formed to ensure that programs (projects) receive the proper management and attention.
Answer:  project organization
Diff: 1
Key Term:  Project organization
Learning Outcome:  Describe the goals and stages of project management

14) A(n) ________ divides a project into more and more detailed components.
Answer:             work breakdown structure or WBS
Diff: 2
Key Term:  Work breakdown structure (WBS)
Learning Outcome:  Describe the goals and stages of project management

15) The ________ has established a code of ethics especially for project managers.
Answer:  Project Management Institute
Diff: 2
AACSB:  Ethical understanding and reasoning
Learning Outcome:  Describe the goals and stages of project management

16) Identify the responsibilities of project managers.
Answer:  Project managers are directly responsible for making sure that (1) all necessary activities are finished in proper sequence and on time; (2) the project comes in within budget; (3) the project meets its quality goals; and (4) the people assigned to the project receive the motivation, direction, and information needed to do their jobs.
Diff: 2
Learning Outcome:  Describe the goals and stages of project management


17) What is a project organization?
Answer:  A project organization is an organization formed to ensure that programs (projects) receive the proper management and attention.
Diff: 2
Key Term:  Project organization
Learning Outcome:  Describe the goals and stages of project management
18) What are some of the ethical issues faced by project managers?
Answer:  A project manager can be exposed to a wide variety of ethical issues. These include, but are not limited to, gifts from contractors, pressure to mask delays with false status reports, falsifying (exaggerating) expense reports, and compromising quality with substandard materials or practices to meet bonuses or avoid penalties related to schedules.
Diff: 2
AACSB:  Ethical understanding and reasoning
Learning Outcome:  Describe the goals and stages of project management

Section 3   Project Scheduling

1) Gantt charts give a timeline for each of a project's activities, but they do not adequately illustrate the interrelationships between the activities and the resources.
Answer:  TRUE
Diff: 2
Key Term:  Gantt charts
Objective:  LO 3.1 Use a Gantt chart for scheduling
Learning Outcome:  Describe the goals and stages of project management

2) PERT, but not CPM, has the ability to consider the precedence relationships in a project.
Answer:  FALSE
Diff: 2
Key Term:  Program evaluation and review technique (PERT)
Objective:  LO 3.1 Use a Gantt chart for scheduling
Learning Outcome:  Describe the goals and stages of project management

3) A combination of effective Gantt chart use and other tactics allowed Delta to cut the average time for a plane layover by what % of the original 60 minute duration?
  1. A) 33%, to 40 minutes
  2. B) 50%, to 30 minutes
  3. C) 20%, to 48 minutes
  4. D) 25%, to 45 minutes
  5. E) 40%, to 36 minutes
Answer:  A
Diff: 2
Key Term:  Gantt charts
AACSB:  Analytical thinking
Objective:  LO 3.1 Use a Gantt chart for scheduling
Learning Outcome:  Describe the goals and stages of project management


4) Which of the following statements regarding Gantt charts is true?
  1. A) Gantt charts give a timeline and precedence relationships for each activity of a project.
  2. B) Gantt charts use the four standard spines of Methods, Materials, Manpower, and Machinery.
  3. C) Gantt charts are visual devices that show the duration of activities in a project.
  4. D) Gantt charts are expensive.
  5. E) All of the above are true.
Answer:  C
Diff: 2
Key Term:  Gantt charts
Objective:  LO 3.1 Use a Gantt chart for scheduling
Learning Outcome:  Describe the goals and stages of project management
5) Identify each of the purposes of project scheduling.
Answer:  Project scheduling shows the relationship of each activity to others and to the whole project. It identifies the precedence relationship among activities. It encourages the setting of realistic time and cost estimates for each activity. It helps make better use of people, money, and material resources by identifying critical bottlenecks in the project.
Diff: 3
Learning Outcome:  Describe the goals and stages of project management

6) Describe the differences between a Gantt chart and a PERT/CPM network.
Answer:  The differences between a Gantt chart and a PERT/CPM network are mainly that PERT/CPM has the ability to consider precedence relationships and interdependence of activities.
Diff: 2
Key Term:  Gantt charts
Objective:  LO 3.1 Use a Gantt chart for scheduling
Learning Outcome:  Describe the goals and stages of project management

Section 4   Project Controlling

1) Agile project management is a type of work breakdown structure (WBS).
Answer:  FALSE
Diff: 1
Learning Outcome:  Describe the goals and stages of project management

2) Ill-defined projects are typified by software development and new technology.
Answer:  TRUE
Diff: 1
Learning Outcome:  Describe the goals and stages of project management

3) The control of projects involves close monitoring of which of the following?
  1. A) resources
  2. B) costs
  3. C) quality
  4. D) budgets
  5. E) all of the above
Answer:  E
Diff: 1
Learning Outcome:  Describe the goals and stages of project management

4) Projects such as road building and plane building are:
  1. A) ill-defined
  2. B) well-defined
  3. C) agile
  4. D) not defined
  5. E) none of the above
Answer:  B
Diff: 1
Learning Outcome:  Describe the goals and stages of project management
5) The waterfall approach is used most often for:
  1. A) well-defined projects
  2. B) projects whose changes tend to be minor
  3. C) projects with step-by-step progress
  4. D) controlling projects
  5. E) all of the above
Answer:  E
Diff: 1
Learning Outcome:  Describe the goals and stages of project management

6) Describe some of the challenges faced in the construction of the new 11-story building at Arnold Palmer Hospital in Orlando, Florida.
Answer:  Prior to beginning actual construction, regulatory and funding issues added, as they do with most projects, substantial time to the overall project. Cities have zoning and parking issues, the EPA has drainage and waste issues, and regulatory authorities have their own requirements, as do issuers of bonds.
Diff: 3
Learning Outcome:  Describe the goals and stages of project management

Section 5   Project Management Techniques: PERT and CPM

1) The shortest of all paths through the network is the critical path.
Answer:  FALSE
Diff: 2
Key Term:  Critical path
Objective:  LO 3.4 Determine a critical path
Learning Outcome:  Describe the goals and stages of project management

2) The fundamental difference between PERT and CPM is that PERT uses the beta distribution for crashing projects while CPM uses cost estimates.
Answer:  FALSE
Diff: 2
Key Term:  Program evaluation and review technique (PERT)
Objective:  LO 3.5 Calculate the variance of activity times
Learning Outcome:  Describe the goals and stages of project management


3) The main difference between PERT and CPM is that:
  1. A) PERT is more accurate than CPM.
  2. B) PERT assumes that activity durations are known.
  3. C) PERT ignores activity costs.
  4. D) CPM assumes activity durations can vary.
  5. E) PERT employs three time estimates for each activity.
Answer:  E
Diff: 2
Key Term:  Program evaluation and review technique (PERT)
Learning Outcome:  Describe the goals and stages of project management
4) The difference between AON and AOA networks is that:
  1. A) AOA networks sometimes require dummy activities.
  2. B) nodes consume no resources or time in AOA networks.
  3. C) both are acceptable in practice; however, Microsoft Project uses AON.
  4. D) nodes designate activities in AON, while arrows designate activities in AOA.
  5. E) All of the above are true.
Answer:  E
Diff: 2
Key Term:  Activity-on-node (AON)
Objective:  LO 3.2 Draw AOA and AON networks
Learning Outcome:  Describe the goals and stages of project management

5) A simple CPM network has five activities, A, B, C, D, and E. A is an immediate predecessor of C and of D. B is also an immediate predecessor of C and of D. C and D are both immediate predecessors of E. Which of the following statements is true?
  1. A) There are two paths in this network.
  2. B) There are four paths in this network.
  3. C) There are five paths in this network.
  4. D) There are 25 paths in this network.
  5. E) There are six paths in this network.
Answer:  B
Diff: 2
Key Term:  Activity-on-node (AON)
AACSB:  Analytical thinking
Objective:  LO 3.2 Draw AOA and AON networks
Learning Outcome:  Describe the goals and stages of project management

6) The ________ is a project management technique using only one time factor per activity that enables managers to schedule, monitor, and control large and complex projects.
Answer:  critical path method or CPM
Diff: 1
Key Term:  Critical path method (CPM)
Learning Outcome:  Describe the goals and stages of project management

7) The ________ is the computed longest time path(s) through a network.
Answer:  critical path
Diff: 1
Key Term:  Critical path
Objective:  LO 3.4 Determine a critical path
Learning Outcome:  Describe the goals and stages of project management

8) The network analysis method that allows activity times to vary is ________.
Answer:  PERT or Program Evaluation and Review Technique
Diff: 1
Key Term:  Program evaluation and review technique (PERT)
Learning Outcome:  Describe the goals and stages of project management
9) Identify, in order, the six steps basic to both PERT and CPM.
Answer:  1. Define the project and prepare the WBS.
  1. Develop the relationships among the activities.
  2. Draw the network connecting all of the activities.
  3. Assign the time and/or cost estimates to each activity.
  4. Compute the critical path–the longest time path through the network.
  5. Use the network to help plan, schedule, monitor, and control the project.
Diff: 3
Key Term:  Program evaluation and review technique (PERT)
Objective:  LO 3.4 Determine a critical path
Learning Outcome:  Describe the goals and stages of project management

10) What is the basic difference between PERT and CPM?
Answer:  The basic difference between PERT and CPM is that PERT requires three time estimates of activity completion time, whereas CPM uses only a single estimate.
Diff: 2
Key Term:  Program evaluation and review technique (PERT)
Learning Outcome:  Describe the goals and stages of project management

Section 6   Determining the Project Schedule

1) The ES of an activity that has only one predecessor is simply the EF of that predecessor.
Answer:  TRUE
Diff: 2
Objective:  LO 3.3 Complete forward and backward passes for a project
Learning Outcome:  Describe the goals and stages of project management

2) Slack is the amount of time an activity can be delayed without delaying the entire project.
Answer:  TRUE
Diff: 2
Key Term:  Slack time
Objective:  LO 3.4 Determine a critical path
Learning Outcome:  Describe the goals and stages of project management

3) Every network has at least one critical path.
Answer:  TRUE
Diff: 2
Key Term:  Critical path
AACSB:  Reflective thinking
Objective:  LO 3.4 Determine a critical path
Learning Outcome:  Describe the goals and stages of project management


4) The critical path can be determined by use of either the "forward pass" or the "backward pass."
Answer:  FALSE
Diff: 2
Key Term:  Critical path
Objective:  LO 3.4 Determine a critical path
Learning Outcome:  Describe the goals and stages of project management
5) Which of the following statements regarding critical paths is true?
  1. A) The shortest of all paths through the network is the critical path.
  2. B) Some activities on the critical path may have slack.
  3. C) Every network has only one critical path.
  4. D) On a specific project, there can be multiple critical paths, all with exactly the same duration.
  5. E) The duration of the critical path is the average duration of all paths in the project network.
Answer:  D
Diff: 2
Key Term:  Critical path
Objective:  LO 3.4 Determine a critical path
Learning Outcome:  Describe the goals and stages of project management

6) Which of the following statements regarding CPM is true?
  1. A) The critical path is the shortest of all paths through the network.
  2. B) The critical path is that set of activities that has positive slack.
  3. C) Some networks have no critical path.
  4. D) All activities on the critical path have their LS equal to the maximum EF of all immediate predecessors.
  5. E) All activities on the critical path have their ES equal to their LF.
Answer:  D
Diff: 2
Key Term:  Critical path
AACSB:  Analytical thinking
Objective:  LO 3.4 Determine a critical path
Learning Outcome:  Describe the goals and stages of project management

7) A simple CPM network has three activities, A, B, and C. A is an immediate predecessor of B and of C. B is an immediate predecessor of C. The activity durations are A=4, B=3, C=8.
  1. A) The critical path is A-B-C, duration 15.
  2. B) The critical path is A-C, duration 12.
  3. C) The critical path is A-B-C, duration 13.5
  4. D) The critical path cannot be determined without knowing PERT expected activity times.
  5. E) The network has no critical path.
Answer:  A
Diff: 2
Key Term:  Critical path
AACSB:  Analytical thinking
Objective:  LO 3.4 Determine a critical path
Learning Outcome:  Describe the goals and stages of project management

8) A simple CPM network has three activities, D, E, and F. D is an immediate predecessor of E and of F. E is an immediate predecessor of F. The activity durations are D=4, E=3, F=8.
  1. A) The critical path is D-E-F, duration 15.
  2. B) The critical path is D-F, duration 12.
  3. C) Slack at D is 3 periods.
  4. D) Slack at E is 3 periods.
  5. E) Both A and C are true.
Answer:  A
Diff: 2
Key Term:  Critical path
AACSB:  Analytical thinking
Objective:  LO 3.4 Determine a critical path
Learning Outcome:  Describe the goals and stages of project management

9) Activity D on a CPM network has predecessors B and C, and has successor F. D has duration 6. B's earliest finish is 18, while C's is 20. F's late start is 26. Which of the following is definitely true?
  1. A) B is a critical activity.
  2. B) C is completed before B.
  3. C) D has no slack but is not critical.
  4. D) D is critical, and has zero slack.
  5. E) F is critical, and has zero slack.
Answer:  D
Diff: 3
Key Term:  Critical path
AACSB:  Analytical thinking
Objective:  LO 3.4 Determine a critical path
Learning Outcome:  Describe the goals and stages of project management

10) Which of the following statements regarding CPM networks is true?
  1. A) There can be multiple critical paths on the same project, all with different durations.
  2. B) The early finish of an activity is the latest early start of all preceding activities.
  3. C) The late start of an activity is its late finish plus its duration.
  4. D) If a specific project has multiple critical paths, all of them will have the same duration.
  5. E) None of the above are true.
Answer:  D
Diff: 2
Key Term:  Critical path
Objective:  LO 3.4 Determine a critical path
Learning Outcome:  Describe the goals and stages of project management

11) Activity R on a CPM network has predecessors M and N, and has successor S. R has duration 5. N's late finish is 18, while M's is 20. S's late start is 14. Which of the following is definitely true?
  1. A) R is critical and has zero slack.
  2. B) R has no slack but is not critical.
  3. C) The set of times cannot all be possible.
  4. D) N is a critical activity.
  5. E) S is a critical activity.
Answer:  C
Diff: 3
Key Term:  Critical path
AACSB:  Analytical thinking
Objective:  LO 3.4 Determine a critical path
Learning Outcome:  Describe the goals and stages of project management

12) Which of the following statements concerning CPM activities is false?
  1. A) The early finish of an activity is the early start of that activity plus its duration.
  2. B) The late finish is the earliest of the late start times of all successor activities.
  3. C) The late start of an activity is its late finish less its duration.
  4. D) The late finish of an activity is the earliest late start of all preceding activities.
  5. E) The early start of an activity is the latest early finish of all preceding activities.
Answer:  D
Diff: 3
Key Term:  Critical path method (CPM)
AACSB:  Analytical thinking
Objective:  LO 3.3 Complete forward and backward passes for a project
Learning Outcome:  Describe the goals and stages of project management

13) The critical path for the network activities shown below is ________ with duration ________.

Activity Duration Immediate
Predecessors
A 4 ---
B 2 A
C 7 --
D 4 A
E 5 B,C,D

  1. A) A-B-D; 10
  2. B) A-B-E; 11
  3. C) C-E; 12
  4. D) A-D-E; 13
  5. E) A-B-C-D-E; 22
Answer:  D
Diff: 2
Key Term:  Critical path
AACSB:  Analytical thinking
Objective:  LO 3.4 Determine a critical path
Learning Outcome:  Describe the goals and stages of project management

14) The critical path for the network activities shown below is ________ with duration ________.

Activity Duration Immediate
Predecessors
A 2 --
B 4 --
C 6 A,B
D 1 A,B
E 2 B,C,D

  1. A) A-D-E; 5
  2. B) B-E; 6
  3. C) B-D-E; 7
  4. D) A-C-E; 10
  5. E) B-C-E; 12
Answer:  E
Diff: 3
Key Term:  Critical path
AACSB:  Analytical thinking
Objective:  LO 3.4 Determine a critical path
Learning Outcome:  Describe the goals and stages of project management

15) The critical path for the network activities shown below is ________ with duration ________.

Activity Duration Immediate
Predecessors
A 10 ---
B 8 ---
C 2 A
D 4 A
E 5 B,C, D

  1. A) A-C; 12
  2. B) A-D-E; 19
  3. C) B-E; 13
  4. D) A-B-C-D-E; 29
  5. E) none of the above
Answer:  B
Diff: 2
Key Term:  Critical path
AACSB:  Analytical thinking
Objective:  LO 3.4 Determine a critical path
Learning Outcome:  Describe the goals and stages of project management


16) ________ is the amount of time an individual activity in a network can be delayed without delaying the entire project.
Answer:  Slack time
Diff: 1
Key Term:  Slack time
Objective:  LO 3.4 Determine a critical path
Learning Outcome:  Describe the goals and stages of project management
17) What is the objective of critical path analysis?
Answer:  Critical path analysis determines the longest path through a network of activities. This longest path is the key to making the schedule that provides for completing all activities in the shortest time. Critical path analysis identifies those activities critical to timely completion of all activities so they can receive management focus.
Diff: 2
Key Term:  Critical path analysis
Objective:  LO 3.4 Determine a critical path
Learning Outcome:  Describe the goals and stages of project management

18) Explain why the critical path is the longest, not the shortest, path through a network.
Answer:  The critical path is that set of activities in a project network that controls the duration of the entire project. The controlling element to completion of all activities is the longest path; any shorter path will not allow for all activities to be completed.
Diff: 2
Key Term:  Critical path
AACSB:  Reflective thinking
Objective:  LO 3.4 Determine a critical path
Learning Outcome:  Describe the goals and stages of project management

19) Define slack time.
Answer:  Slack time is the length of time an activity can be delayed without delaying the entire project.
Diff: 2
Key Term:  Slack time
Objective:  LO 3.4 Determine a critical path
Learning Outcome:  Describe the goals and stages of project management

20) What are the earliest activity start time and latest activity start time, and how are they computed?
Answer:  The earliest start time (ES) is the earliest time at which an activity may start and still satisfy all precedence requirements. ES = Max{EF of all immediate predecessors}. The latest start time is the latest time at which an activity may start and still satisfy both precedence requirements and the overall project completion time. LS = LF - Activity time.
Diff: 2
Objective:  LO 3.3 Complete forward and backward passes for a project
Learning Outcome:  Describe the goals and stages of project management

21) A network consists of the activities in the following list. Times are given in weeks.

Activity Preceding Time
A -- 8
B -- 3
C A 7
D A, B 3
E C 4
F D 6

  1. Draw the network diagram.
  2. Calculate the ES, EF, LS, LF, and Slack for each activity.
  3. What is project completion time?
Answer:  (a)

(b ,c)

Results
Task Early Start Early Finish Late Start Late Finish Slack
A 0 8 0 8 0
B 0 3 7 10 7
C 8 15 8 15 0
D 8 11 10 13 2
E 15 19 15 19 0
F 11 17 13 19 2
Project 19

Diff: 3
Key Term:  Program evaluation and review technique (PERT)
AACSB:  Analytical thinking
Objective:  LO 3.3 Complete forward and backward passes for a project
Learning Outcome:  Describe the goals and stages of project management

22) The network below represents a project being analyzed by the critical path method. Activity durations are A = 5, B = 2, C = 12, D = 3, E = 5, F = 1, G = 7, H = 2, I = 10, and J = 6.

  1. What task must be on the critical path, regardless of activity durations?
  2. What is the duration of path A-B-E-H-J?
  3. What is the critical path of this network?
  4. What is the length of the critical path?
  5. What is slack time at activity H?
  6. What is the Late Finish of activity H?
  7. If activity C were delayed by two time units, what would happen to the project duration?
Answer:  (a) J; (b) 20; (c) A-B-G-I-J; (d) 30; (e) 5; (f) 24; (g) no impact.

Results
Task Early Start Early Finish Late Start Late Finish Slack
A 0 5 0 5 0
B 5 7 5 7 0
C 5 17 10 22 5
D 0 3 10 13 10
E 7 12 17 22 10
F 3 4 13 14 10
G 7 14 7 14 0
H 17 19 22 24 5
I 14 24 14 24 0
J 24 30 24 30 0
Project 30

Diff: 3
Key Term:  Critical path analysis
AACSB:  Analytical thinking
Objective:  LO 3.4 Determine a critical path
Learning Outcome:  Describe the goals and stages of project management

23) A network consists of the following list. Times are given in weeks.

Activity Preceding Duration
A -- 9
B A 2
C A 12
D A 5
E B 6
F B 8
G C, F 3
H D 2
I H 8
J G, I 6
K E, J 2

  1. Draw the network diagram.
  2. Which activities form the critical path?
  3. How much slack exists at activities A and F?
  4. What is the duration of the critical path?
Answer:
(a)  Network diagram


(b)  paths A-D-H-I-J-K and A-C-G-J-K are critical;
(c)   A has no slack; F has 2 units
(d)  32 weeks
Diff: 3
Key Term:  Critical path analysis
AACSB:  Analytical thinking
Objective:  LO 3.4 Determine a critical path
Learning Outcome:  Describe the goals and stages of project management

24) The network below represents a project being analyzed by the critical path method. Activity durations are indicated on the network.

  1. Identify the activities on the critical path.
  2. What is the duration of the critical path?
  3. Calculate the amount of slack time at activity H.
  4. If activity I were delayed by ten time units, what would be the impact on the project duration?
Answer:  (a) Critical activities are A-C-J-K; (b) The critical path is 26 time units; (c) Slack at H is 9 units; (d) I has 11 units slack—a ten unit delay would have no impact on the project.

Task Early Start Early Finish Late Start Late Finish Slack
A 0 5 0 5 0
B 0 3 6 9 6
C 5 16 5 16 0
D 0 4 9 13 9
E 3 10 9 16 6
F 4 10 15 21 11
G 3 7 17 21 14
H 4 7 13 16 9
I 10 15 21 26 11
J 16 22 16 22 0
K 22 26 22 26 0
Project 26

Diff: 2
Key Term:  Critical path analysis
AACSB:  Analytical thinking
Objective:  LO 3.4 Determine a critical path
Learning Outcome:  Describe the goals and stages of project management
25) Draw the AOA and AON networks for the following project and calculate the minimum project duration.

Activity Duration
(days)		 Immediate
Predecessors
A 10 ---
B 8 ---
C 2 A
D 4 A
E 5 B,C, D

Answer:
AON


AOA


Minimum duration is the longest of the three paths, ADE, or a total of 19 days.
Diff: 3
Key Term:  Critical path analysis
AACSB:  Analytical thinking
Objective:  LO 3.2 Draw AOA and AON networks
Learning Outcome:  Describe the goals and stages of project management

26) Given the project within the table below, calculate the following:
  1. The critical path
  2. The minimum project duration
  3. The amount of slack for each activity

Activity Duration (hours) Immediate Predecessors
A 4 None
B 3 None
C 10 None
D 7 B,C
E 1 D
F 1 E
G 5 A,F

Answer:

(A) The critical path is CDEFG
(B) Minimum duration is (10+7+1+1+5) or 24 hours
(C) CDEFG have no slack since on the critical path. BDEFG takes 17 hours, so B has 7 hours of slack. AG takes 9 hours, so A has 15 hours of slack.
Diff: 3
Key Term:  Critical path analysis
AACSB:  Analytical thinking
Objective:  LO 3.4 Determine a critical path
Learning Outcome:  Describe the goals and stages of project management

27) Consider the network presented in the following table. Calculate
  1. All possible paths
  2. The critical path
  3. The slack available at any non-critical points
  4. The minimum project duration

Task Duration (Days) Immediate Predecessors
A 5 None
B 3 A
C 4 A
D 2 C
E 1 B,D

Answer:

(A) Two paths are possible, ACDE and ABE.
(B) The critical path is ACDE
(C) The slack available at point B is Duration (ACDE) - Duration (ABE) = 3 days. All other points have no slack because they are on the critical path.
(D) The minimum project duration is the length of the critical path ACDE which is = 12 days
Diff: 2
Key Term:  Critical path analysis
AACSB:  Analytical thinking
Objective:  LO 3.4 Determine a critical path
Learning Outcome:  Describe the goals and stages of project management

Section 7   Variability in Activity Times

1) The PERT pessimistic time estimate is an estimate of the minimum time an activity will require.
Answer:  FALSE
Diff: 2
Key Term:  Pessimistic time
Objective:  LO 3.5 Calculate the variance of activity times
Learning Outcome:  Describe the goals and stages of project management

2) The standard deviation of project duration is the average of the standard deviation of all activities on the critical path.
Answer:  FALSE
Diff: 2
Key Term:  Critical path
Objective:  LO 3.5 Calculate the variance of activity times
Learning Outcome:  Describe the goals and stages of project management

3) In PERT analysis, the identification of the critical path can be incorrect if a noncritical activity takes substantially more than its expected time.
Answer:  TRUE
Diff: 3
Key Term:  Program evaluation and review technique (PERT)
AACSB:  Reflective thinking
Objective:  LO 3.5 Calculate the variance of activity times
Learning Outcome:  Describe the goals and stages of project management

4) The time an activity will take assuming very unfavorable conditions is:
  1. A) the optimistic time.
  2. B) the pessimistic time.
  3. C) the activity variance.
  4. D) the minimum time.
  5. E) exactly twice as long as the expected time.
Answer:  B
Diff: 2
Key Term:  Pessimistic time
Objective:  LO 3.5 Calculate the variance of activity times
Learning Outcome:  Describe the goals and stages of project management

5) The ________ distribution is used by PERT analysis to calculate expected activity times and variances.
  1. A) Normal
  2. B) Beta
  3. C) Alpha
  4. D) Gaussian
  5. E) Binomial
Answer:  B
Diff: 2
Key Term:  Program evaluation and review technique (PERT)
Objective:  LO 3.5 Calculate the variance of activity times
Learning Outcome:  Describe the goals and stages of project management


6) The expected activity time in PERT analysis is calculated as:
  1. A) the simple average of the optimistic, pessimistic, and most likely times.
  2. B) the weighted average of a, m, and b, with m weighted 4 times as heavily as a and b.
  3. C) the sum of the optimistic, pessimistic, and most likely times.
  4. D) the sum of the optimistic, pessimistic, and most likely times, divided by six.
  5. E) the sum of the activity variances, divided by six.
Answer:  B
Diff: 2
Key Term:  Program evaluation and review technique (PERT)
Objective:  LO 3.5 Calculate the variance of activity times
Learning Outcome:  Describe the goals and stages of project management
7) Which of the following statements regarding PERT times is true?
  1. A) The optimistic time estimate is an estimate of the minimum time an activity will require.
  2. B) The optimistic time estimate is an estimate of the maximum time an activity will require.
  3. C) The expected time estimate is calculated as t = (a + 4m + b).
  4. D) The pessimistic time estimate is an estimate of the minimum time an activity will require.
  5. E) The most likely time estimate is an estimate of the maximum time an activity will require.
Answer:  A
Diff: 2
Key Term:  Optimistic time
Objective:  LO 3.5 Calculate the variance of activity times
Learning Outcome:  Describe the goals and stages of project management

8) Which of the following statements regarding PERT times is true?
  1. A) The expected time is an estimate of the time an activity will require if everything goes as planned.
  2. B) The optimistic time estimate is an estimate of the maximum time an activity will require.
  3. C) The expected time estimate is calculated as t = (a + 4m + b)/6.
  4. D) The pessimistic time estimate is an estimate of the minimum time an activity will require.
  5. E) The most likely time estimate is an estimate of the maximum time an activity will require.
Answer:  C
Diff: 2
Key Term:  Program evaluation and review technique (PERT)
Objective:  LO 3.5 Calculate the variance of activity times
Learning Outcome:  Describe the goals and stages of project management

9) The beta distribution is used in project management to:
  1. A) calculate slack on activities not on the critical path.
  2. B) calculate the probability that a project will be completed within its budget.
  3. C) calculate pessimistic and optimistic activity times.
  4. D) determine which activity should be crashed.
  5. E) none of the above
Answer:  E
Diff: 3
Key Term:  Program evaluation and review technique (PERT)
Objective:  LO 3.5 Calculate the variance of activity times
Learning Outcome:  Describe the goals and stages of project management


10) The beta distribution is used in project management to:
  1. A) determine which activity should be crashed.
  2. B) calculate the probability that a project will be completed within its budget.
  3. C) calculate expected activity times.
  4. D) calculate slack for activities on the critical path.
  5. E) none of the above
Answer:  C
Diff: 2
Key Term:  Program evaluation and review technique (PERT)
Objective:  LO 3.5 Calculate the variance of activity times
Learning Outcome:  Describe the goals and stages of project management
11) In a PERT network, non-critical activities that have little slack need to be monitored closely:
  1. A) because PERT treats all activities as equally important.
  2. B) because near-critical paths could become critical paths with small delays in these activities.
  3. C) because slack is undesirable and needs to be eliminated.
  4. D) because they are causing the entire project to be delayed.
  5. E) because they have a high risk of not being completed.
Answer:  B
Diff: 2
Key Term:  Program evaluation and review technique (PERT)
Objective:  LO 3.5 Calculate the variance of activity times
Learning Outcome:  Describe the goals and stages of project management

12) Which of the following statements regarding PERT analysis is true?
  1. A) Each activity has two estimates of its duration.
  2. B) Project variance is the sum of all activity variances.
  3. C) Project standard deviation is the sum of all critical activity standard deviations.
  4. D) Only critical activities contribute to the project variance.
  5. E) The most likely time is equivalent to the expected activity time.
Answer:  D
Diff: 2
Key Term:  Program evaluation and review technique (PERT)
Objective:  LO 3.5 Calculate the variance of activity times
Learning Outcome:  Describe the goals and stages of project management

13) A project being analyzed by PERT has 60 activities, 13 of which are on the critical path. If the estimated time along the critical path is 214 days with a project variance of 100, what is the probability that the project will take 224 days or more to complete?
  1. A) near zero
  2. B) 0.0126
  3. C) 0.1587
  4. D) 0.8413
  5. E) 2.14
Answer:  C
Diff: 2
Key Term:  Program evaluation and review technique (PERT)
AACSB:  Analytical thinking
Objective:  LO 3.5 Calculate the variance of activity times
Learning Outcome:  Describe the goals and stages of project management

14) An activity on a PERT network has these time estimates: optimistic = 2, most likely = 5, and pessimistic = 10. What is its expected activity time?
  1. A) 5.00
  2. B) 5.33
  3. C) 5.67
  4. D) 10.67
  5. E) 32.00
Answer:  B
Diff: 2
Key Term:  Program evaluation and review technique (PERT)
AACSB:  Analytical thinking
Objective:  LO 3.5 Calculate the variance of activity times
Learning Outcome:  Describe the goals and stages of project management
15) An activity on a PERT network has these time estimates: optimistic = 1, most likely = 2, and pessimistic = 5. What is its expected activity time?
  1. A) 2.00
  2. B) 2.33
  3. C) 2.67
  4. D) 4.67
  5. E) 14.00
Answer:  B
Diff: 2
Key Term:  Program evaluation and review technique (PERT)
AACSB:  Analytical thinking
Objective:  LO 3.5 Calculate the variance of activity times
Learning Outcome:  Describe the goals and stages of project management

16) An activity on a PERT network has these time estimates: optimistic = 2, most likely = 3, and pessimistic = 8. What is its expected activity time and variance?
  1. A) 3.67; 1
  2. B) 3.67; 6
  3. C) 4.33; 1
  4. D) 4.33; 6
  5. E) none of the above
Answer:  A
Diff: 2
Key Term:  Program evaluation and review technique (PERT)
AACSB:  Analytical thinking
Objective:  LO 3.5 Calculate the variance of activity times
Learning Outcome:  Describe the goals and stages of project management


17) A local project being analyzed by PERT has 42 activities, 13 of which are on the critical path. If the estimated time along the critical path is 105 days with a project variance of 25, what is the probability that the project will be completed in 95 days or less?
  1. A) -0.4
  2. B) 0.0228
  3. C) 0.3444
  4. D) 0.9772
  5. E) 4.2
Answer:  B
Diff: 2
Key Term:  Program evaluation and review technique (PERT)
AACSB:  Analytical thinking
Objective:  LO 3.5 Calculate the variance of activity times
Learning Outcome:  Describe the goals and stages of project management
18) A project being analyzed by PERT has 38 activities, 16 of which are on the critical path. If the estimated time along the critical path is 90 days with a project variance of 25, what is the probability that the project will be completed in 88 days or less?
  1. A) 0.0228
  2. B) 0.3446
  3. C) 0.6554
  4. D) 0.9772
  5. E) 18
Answer:  B
Diff: 2
Key Term:  Program evaluation and review technique (PERT)
AACSB:  Analytical thinking
Objective:  LO 3.5 Calculate the variance of activity times
Learning Outcome:  Describe the goals and stages of project management

19) A PERT project has 45 activities, 19 of which are on the critical path. The estimated time for the critical path is 120 days. The sum of all activity variances is 64, while the sum of variances along the critical path is 36. What is the probability that the project can be completed between days 108 and 120?
  1. A) -2.00
  2. B) 0.0227
  3. C) 0.1058
  4. D) 0.4773
  5. E) 0.9773
Answer:  D
Diff: 3
Key Term:  Program evaluation and review technique (PERT)
AACSB:  Analytical thinking
Objective:  LO 3.5 Calculate the variance of activity times
Learning Outcome:  Describe the goals and stages of project management


20) A contractor's project being analyzed by PERT has an estimated time for the critical path of 120 days. The sum of all activity variances is 81; the sum of variances along the critical path is 64. What is the probability that the project will take 130 or more days to complete?
  1. A) 0.1057
  2. B) 0.1335
  3. C) 0.8512
  4. D) 0.8943
  5. E) 1.29
Answer:  A
Diff: 2
Key Term:  Program evaluation and review technique (PERT)
AACSB:  Analytical thinking
Objective:  LO 3.5 Calculate the variance of activity times
Learning Outcome:  Describe the goals and stages of project management
21) Analysis of a PERT problem shows the estimated time for the critical path to be 108 days with a variance of 64. There is a .90 probability that the project will be completed before approximately day:
  1. A) 98.
  2. B) 108.
  3. C) 109.
  4. D) 115.
  5. E) 118.
Answer:  E
Diff: 3
Key Term:  Program evaluation and review technique (PERT)
AACSB:  Analytical thinking
Objective:  LO 3.5 Calculate the variance of activity times
Learning Outcome:  Describe the goals and stages of project management

22) A project whose critical path has an estimated time of 120 days with a variance of 100 has a 20% chance that the project will be completed before which day (rounded to nearest day)?
  1. A) 98
  2. B) 112
  3. C) 120
  4. D) 124
  5. E) 220
Answer:  B
Diff: 3
Key Term:  Program evaluation and review technique (PERT)
AACSB:  Analytical thinking
Objective:  LO 3.5 Calculate the variance of activity times
Learning Outcome:  Describe the goals and stages of project management


23) A project whose critical path has an estimated time of 820 days with a variance of 225 has a 20% chance that the project will be completed before which day (rounded to nearest day)?
  1. A) 631
  2. B) 689
  3. C) 807
  4. D) 833
  5. E) 1009
Answer:  C
Diff: 3
Key Term:  Program evaluation and review technique (PERT)
AACSB:  Analytical thinking
Objective:  LO 3.5 Calculate the variance of activity times
Learning Outcome:  Describe the goals and stages of project management
24) Contract requirements state that a project must be completed within 180 working days, or it will incur penalties for late completion. Analysis of the activity network reveals an estimated project time of 145 working days with a project variance of 400. What is the probability that the project will be completed before the late-payment deadline?
  1. A) 0.0401
  2. B) 0.4599
  3. C) 0.8056
  4. D) 0.9599
  5. E) near 1.0000, or almost certain
Answer:  D
Diff: 3
Key Term:  Program evaluation and review technique (PERT)
AACSB:  Analytical thinking
Objective:  LO 3.5 Calculate the variance of activity times
Learning Outcome:  Describe the goals and stages of project management

25) The ________ distribution is appropriate for calculating expected activity times and activity variances in PERT networks.
Answer:  beta
Diff: 2
Key Term:  Program evaluation and review technique (PERT)
Objective:  LO 3.5 Calculate the variance of activity times
Learning Outcome:  Describe the goals and stages of project management

26) PERT calculations typically include the duration variance of each activity. What is the purpose of this calculation, i.e. what's the role of variances in PERT analysis?
Answer:  The activity variances influence the probability of project completion. Specifically, the sum of the variances of the critical tasks equals the variance of the project. Further, large variances on noncritical tasks need to be monitored. Such an activity might have an actual completion time so large that the task becomes a critical task.
Diff: 3
Key Term:  Program evaluation and review technique (PERT)
AACSB:  Reflective thinking
Objective:  LO 3.5 Calculate the variance of activity times
Learning Outcome:  Describe the goals and stages of project management


27) How is the expected completion time of a project activity, and of a PERT project, computed?
Answer:  The expected completion time of a project activity uses the beta distribution; expected time is the weighted average of optimistic, most likely, and pessimistic time estimates. The formula is
t = (a + 4m + b) / 6. Expected completion of a PERT project is the sum of the expected times for individual activities that are on the critical path.
Diff: 2
Key Term:  Program evaluation and review technique (PERT)
Objective:  LO 3.5 Calculate the variance of activity times
Learning Outcome:  Describe the goals and stages of project management
28) Describe in words how to calculate a project's standard deviation. What assumption allows that calculation to be accurate?
Answer:  Add the variances of the activities on the critical path and then take the square root. We can do this because we assume that the activities are independent.
Diff: 3
Key Term:  Program evaluation and review technique (PERT)
Objective:  LO 3.5 Calculate the variance of activity times
Learning Outcome:  Describe the goals and stages of project management

29) A partially solved PERT problem is detailed in the table below. Times are given in weeks.

Activity Preceding Optimistic
Time		 Probable
Time		 Pessimistic
Time		 Expected
Time		 Variance
A -- 7 9 14 1.361
B A 2 2 8 0
C A 8 12 16 0
D A 3 5 10 1.361
E B 4 6 8 0
F B 6 8 10 0
G C, F 2 3 4 0
H D 2 2 8 1.000
I H 6 8 16 2.778
J G, I 4 6 14 2.778
K E, J 2 2 5 0.250

  1. Calculate the expected time for each activity. Enter these values in the appropriate column in the table above.
  2. Which activities form the critical path?
  3. What is the estimated time of the critical path?
  4. What are the project variance and the project standard deviation?
  5. What is the probability of completion of the project after week 40?
Answer:  (a) A=9.5 B=3 C=12 D=5.5 E=6 F=8 G=3 H=3 I=9 J=7 K=2.5
(b) A-D-H-I-J-K; (c) 36.5; (d) 9.53, 3.09; (e) 0.13
Diff: 3
Key Term:  Program evaluation and review technique (PERT)
AACSB:  Analytical thinking
Objective:  LO 3.5 Calculate the variance of activity times
Learning Outcome:  Describe the goals and stages of project management

30) Consider the network described in the table below.

Activity Immediate
Predecessor(s)		 Pessimistic Probable Optimistic
J -- 15 10 8
K -- 9 8 7
L J 10 6 5
M J 3 3 3
N K,M 9 5 1
O K,M 10 7 4
P L,N 10 8 3

  1. Calculate the expected duration of each activity.
  2. Calculate the expected duration and variance of the critical path.
  3. Calculate the probability that the project will be completed in fewer than 30 time units.
Answer:  (a) See table below. (b) Tasks J-M-N-P are critical. The sum of their expected durations is 26.00; the sum of their variances is 4.50. (c) The standard deviation along the path is = 2.12; the probability that Duration < 30 is the probability that z < (30 - 26.00)/2.12 = 1.89. The associated normal curve area is 0.97062.


Task Early Start Early Finish Late Start Late Finish Slack Mean Variance
J 0 10.5 0 10.5 0 10.5 1.361111
K 0 8 5.5 13.5 5.5 8
L 10.5 17 19.5 26 9 6.5
M 10.5 13.5 10.5 13.5 0 3 0
N 13.5 18.5 13.5 18.5 0 5 1.777778
O 13.5 20.5 19 26 5.5 7
P 18.5 26 18.5 26 0 7.5 1.361111
Project 26 Project 4.5
Std.dev 2.12132

Diff: 3
Key Term:  Program evaluation and review technique (PERT)
AACSB:  Analytical thinking
Objective:  LO 3.5 Calculate the variance of activity times
Learning Outcome:  Describe the goals and stages of project management
31) A network consists of the following list. Times are given in weeks.

Activity Preceding Optimistic Probable Pessimistic
A -- 5 11 14
B - 3 3 9
C -- 6 10 14
D A, B 3 5 7
E B 4 6 11
F C 6 8 13
G D, E 2 4 6
H F 3 3 9

  1. Draw the network diagram.
  2. Calculate the expected duration and variance of each activity.
  3. Calculate the expected duration and variance of the critical path.
  4. Calculate the probability that the project will be completed in less than 28 weeks.
Answer:
(a)


(b, c)

Task Expected
time		 Variance Std. dev. Slack Variance
A 10.5 2.25 1.5 3
B 4 1 1 8
C 10 1.778 1.333 0 1.778
D 5 0.444 0.667 3
E 6.5 1.361 1.167 8
F 8.5 1.361 1.167 0 1.361
G 4 0.444 0.667 3
H 4 1 1 0 1
Project 22.5 Project 4.139
Std. dev. 2.034

(d) z = (28 - 22.5)/2.03 = 2.71, (P ≤ 28) = .997
Diff: 3
Key Term:  Program evaluation and review technique (PERT)
AACSB:  Analytical thinking
Objective:  LO 3.5 Calculate the variance of activity times
Learning Outcome:  Describe the goals and stages of project management
Section 8   Cost-Time Trade-offs and Project Crashing

1) Shortening the project's duration by deleting unnecessary activities is called "project crashing."
Answer:  FALSE
Diff: 2
Key Term:  Crashing
Objective:  LO 3.6 Crash a project
Learning Outcome:  Describe the goals and stages of project management

2) In project management, crashing an activity must consider the impact on all paths in the network.
Answer:  TRUE
Diff: 2
Key Term:  Crashing
Objective:  LO 3.6 Crash a project
Learning Outcome:  Describe the goals and stages of project management


3) A project manager is interested in crashing a project with variable activity times. Which of the following tools should he/she employ?
  1. A) PERT
  2. B) CPM
  3. C) Gantt Chart
  4. D) either PERT or CPM
  5. E) PERT, CPM, or a Gantt chart are fine.
Answer:  A
Diff: 3
Key Term:  Crashing
Objective:  LO 3.6 Crash a project
Learning Outcome:  Describe the goals and stages of project management

4) Which of these statements regarding time-cost tradeoffs in CPM networks is true?
  1. A) Crashing is not possible unless there are multiple critical paths.
  2. B) Crashing a project often reduces the length of long-duration, but noncritical, activities.
  3. C) Activities not on the critical path can never be on the critical path, even after crashing.
  4. D) Crashing shortens the project duration by assigning more resources to one or more of the critical tasks.
  5. E) The crash time always exceeds the normal time.
Answer:  D
Diff: 2
Key Term:  Crashing
Objective:  LO 3.6 Crash a project
Learning Outcome:  Describe the goals and stages of project management

5) Project management at the Tour de France races can be complex because:
  1. A) a team is like a "large travelling circus."
  2. B) there is a wide variety of support staff.
  3. C) there are races being held simultaneously.
  4. D) each team has over two dozen riders.
  5. E) all of the above
Answer:  E
Diff: 2
Objective:  LO 3.6 Crash a project
Learning Outcome:  Describe the goals and stages of project management
6) Which of the following statements regarding time-cost tradeoffs in CPM networks is false?
  1. A) Crashing shortens project duration by assigning more resources to critical tasks.
  2. B) Crashing sometimes has the reverse result of lengthening the project duration.
  3. C) Crashing must consider the impact of crashing an activity on all paths in the network.
  4. D) Activities not on the critical path can become critical after crashing takes place.
  5. E) A negative crash cost per period would imply that either crashing is cheaper than not crashing or that the crash time was slower than the normal time.
Answer:  B
Diff: 2
Key Term:  Crashing
AACSB:  Analytical thinking
Objective:  LO 3.6 Crash a project
Learning Outcome:  Describe the goals and stages of project management

7) If an activity whose normal duration is 13 days can be shortened to 10 days for an added cost of $1,500, what is the crash cost per period?
  1. A) $500
  2. B) $1,500
  3. C) $750
  4. D) $13,000
  5. E) $15,000
Answer:  A
Diff: 2
Key Term:  Crashing
AACSB:  Analytical thinking
Objective:  LO 3.6 Crash a project
Learning Outcome:  Describe the goals and stages of project management

8) Two critical path activities are candidates for crashing on a CPM network. Activity details are in the table below. To cut one day from the project's duration, activity ________ should be crashed first, adding ________ to project cost.

Activity Normal Time Normal Cost Crash Time Crash Cost
One 8 days $6,000 6 days $6,800
Two 10 days $4,000 9 days $5,000

  1. A) One; $400
  2. B) One; $6,800
  3. C) Two; $1,000
  4. D) Two; $5,000
  5. E) One or Two should be crashed; $1,400
Answer:  A
Diff: 2
Key Term:  Crashing
AACSB:  Analytical thinking
Objective:  LO 3.6 Crash a project
Learning Outcome:  Describe the goals and stages of project management
9) If an activity whose normal duration is 15 days can be shortened to 10 days for an added cost of $2,000, what is the crash cost per period?
  1. A) $400
  2. B) $2,000
  3. C) $10,000
  4. D) $20,000
  5. E) $30,000
Answer:  A
Diff: 2
Key Term:  Crashing
AACSB:  Analytical thinking
Objective:  LO 3.6 Crash a project
Learning Outcome:  Describe the goals and stages of project management


10) A network has been crashed to the point where all activities are critical. Additional crashing:
  1. A) is unnecessary.
  2. B) is impossible.
  3. C) is prohibitively expensive.
  4. D) may require crashing multiple tasks simultaneously.
  5. E) can be done, but all critical tasks must be reduced in duration.
Answer:  D
Diff: 3
Key Term:  Crashing
AACSB:  Reflective thinking
Objective:  LO 3.6 Crash a project
Learning Outcome:  Describe the goals and stages of project management

11) Two critical path activities are candidates for crashing on a CPM network. Activity details are in the table below. To cut one day from the project's duration, activity ________ should be crashed first, adding ________ to project cost.

Activity Normal Time Normal Cost Crash Time Crash Cost
B 4 days $6,000 3 days $8,000
C 6 days $4,000 4 days $6,000

  1. A) B; $2,000
  2. B) B; $8,000
  3. C) C; $1,000
  4. D) C; $2,000
  5. E) C; $6,000
Answer:  C
Diff: 2
Key Term:  Crashing
AACSB:  Analytical thinking
Objective:  LO 3.6 Crash a project
Learning Outcome:  Describe the goals and stages of project management
12) ________ is decreasing activity time in a network to reduce time on the critical path so total completion time is reduced.
Answer:  Crashing
Diff: 1
Key Term:  Crashing
Objective:  LO 3.6 Crash a project
Learning Outcome:  Describe the goals and stages of project management


13) Three critical path activities are candidates for crashing on a CPM network. Activity details are in the table below.

Activity Normal Time Normal Cost Crash Duration Crash Cost
X 8 days $6,000 6 days $8,000
Y 3 days $1,800 2 days $2,400
Z 12 days $5,000 9 days $7,700

  1. What is the crash cost per unit time for each of the three activities?
  2. Which activity should be crashed first to cut one day from the project's duration; how much is added to project cost?
  3. Which activity should be the next activity crashed to cut a second day from the project's duration; how much is added to project cost?
Answer:
(a) crash cost X = $1,000 per day; crash cost Y = $600 per day ; crash cost Z = $900 per day
(b) select Y, adding $600; (c) select Z, adding $900
Diff: 2
Key Term:  Crashing
AACSB:  Analytical thinking
Objective:  LO 3.6 Crash a project
Learning Outcome:  Describe the goals and stages of project management

14) Three critical path activities are candidates for crashing on a CPM network. Activity details are in the table below.

Activity Normal Time Normal Cost Crash Duration Crash Cost
A 9 days $8,000 7 days $12,000
B 5 days $2,000 3 days $10,000
C 12 days $9,000 11 days $12,000

  1. What is the crash cost per unit time for activity A?
  2. What is the crash cost per unit time for activity B?
  3. Which activity should be crashed first to cut one day from the project's duration; how much is added to project cost?
  4. Which activity should be the next activity crashed to cut a second day from the project's duration; how much is added to project cost?
  5. Assuming no other paths become critical, how much can this project be shortened at what total added cost?
Answer:  (a) $2,000; (b) $4,000; (c) A, $2,000; (d) A again, $2,000 additional; (e) 5 days, $15,000
Diff: 2
Key Term:  Crashing
AACSB:  Analytical thinking
Objective:  LO 3.6 Crash a project
Learning Outcome:  Describe the goals and stages of project management

15) Pirmin's Bike Shop is behind on a custom bike and needs to crash 8 hours of time from the 8-step project. Given the project table below calculate the crash cost for 8 hours of time-savings. Suppose Pirmin calls the customer and asks for a project extension, reducing the amount of time he needs to crash. Calculate both the maximum time-savings available on a $25 crash budget and the cost to crash four hours of savings.

Activity Normal
Duration (hours)		 Normal
Cost ($)		 Crash
Duration (hours)		 Crash
Cost (S)		 Immediate
Predecessors
A 2 10 2 0 None
B 3 15 2 23 A
C 5 25 4 30 B
D 3 20 1 24 C
E 6 30 4 45 C
F 1 5 1 0 C,E
G 7 35 6 50 F
H 10 50 7 80 D,G

Answer:

The critical path is ABCEFGH with a time of 34 hours. The cost per crash hour for these activities is 8(B), 5(C), 2(D), 7.5(E), 15(G), 10(H). C will be crashed first for a savings of 1 hour. Next E will be crashed for a savings of 2 hours. Then B can be crashed for a savings of 1 hour. Next H will be crashed for a savings of 3 hours, netting 7 hours total at a cost of (5 + 15 + 8 + 30) = $58. Only 1 more hour is needed, so G will be crashed for an additional 15 dollars, netting 8 hours saved at a cost of 58 +15 = $73. D was not crashed because it does not lie on the critical path after any amount of crashing (E always > D). With $25 only C and E can be crashed, saving 3 hours of time and spending $20. A fractional component of B could be crashed (5/8) of an hour to spend the entire $25, however most students should interpret this question as only whole-hour increments. The cost to crash four hours would be C + E + B crashing = $28.
Diff: 3
Key Term:  Crashing
AACSB:  Analytical thinking
Objective:  LO 3.6 Crash a project
Learning Outcome:  Describe the goals and stages of project management

16) Given the critical path below, calculate the following:
  1. The crash cost per unit time savings for each activity.
  2. The maximum total crash time savings and cost.
  3. The maximum total time-savings with a $3000 budget.

Activity Normal Time Normal Cost Crash Duration Crash Cost
A 8 days $8,000 7 days $12,000
B 5 days $2,000 3 days $10,000
C 10 days $9,000 9 days $12,000

Answer:
(a)  A saves 1 day for $4000/day, B saves 2 days for $4000/day, C saves 1 day at $3000/day.
(b)  Max time savings is A + B + C = 4 days for a total of $15,000
(c)   1 day could be crashed from C. This means maximum savings is 1 day.
Diff: 2
Key Term:  Crashing
AACSB:  Analytical thinking
Objective:  LO 3.6 Crash a project
Learning Outcome:  Describe the goals and stages of project management

Section 9   A Critique of PERT and CPM

1) Which of the following is NOT a limitation of PERT?
  1. A) Project activities have to be clearly defined, independent, and stable in their relationships.
  2. B) Precedence relationships must be specified and networked together.
  3. C) Only one time estimate can be used for each activity.
  4. D) Time estimates tend to be subjective and are subject to fudging by managers.
  5. E) There is the inherent danger of placing too much emphasis on the critical path.
Answer:  C
Diff: 1
Key Term:  Program evaluation and review technique (PERT)
Learning Outcome:  Describe the goals and stages of project management

2) Identify several advantages of using PERT (and CPM).
Answer:  The advantages include (1) its usefulness for scheduling and controlling large projects, (2) its straightforward concept, (3) its graphical displays of relationships among activities, (4) its critical path and slack time analyses, (5) its ability to document processes, (6) its wide range of applicability, (7) and its usefulness in monitoring schedules and costs.
Diff: 2
Key Term:  Program evaluation and review technique (PERT)
Learning Outcome:  Describe the goals and stages of project management

Section 10   Using Microsoft Project to Manage Projects

1) Which of the following is NOT performed by Microsoft Project?
  1. A) drawing the project AON network
  2. B) identifying the critical path
  3. C) providing PERT probability calculations
  4. D) tracking the progress of the project
  5. E) creating the project Gantt chart
Answer:  C
Diff: 2
Learning Outcome:  Describe the goals and stages of project management

----------------------------------

OPERATIONS MANAGEMENT - 2017 - COLLECTION
FREE DOWNLOAD
EBOOKS
Operations Management, 2015, 12th Edition, William J. Stevenson - Free Download Link
Operations Management, Sustainability and Supply Chain Management, 11th Edition, 2014, Jay Heizer, Barry Render - Free Download Link
Operations Management: Sustainability and Supply Chain Management, 12th Edition, Jay Heizer, Barry Render, Chuck Munson, 2017
Principles of Operations Management: Sustainability and Supply Chain Management, 10th Edition, 2017
Operations Research: An Introduction, 10th Edition, Hamdy A. Taha, 2017
Introduction to Operations and Supply Chain Management, 4th Edition, Cecil B. Bozarth, Robert B. Handfield, 2016 
Operations Management: Processes and Supply Chains, 11th Edition, Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman, 2016
Free Online Course Materials
1. Operations Management Ebooks - Free Downloads
2. Slides - 11th Edition - Free Downloads
3. Slides - 12nd Edition - Free Downloads
4. Full List of Videos Case Studies - Link
5. All articles about Operations Management
http://top20mba.com/mba-cases/94-mba-operation-management
2017 Updates
6. QUIZ, Multiple choice questions and answers
7. CASE STUDY GUIDES
8. Video Case study guides

For Test Bankz, Quiz Answers and Case study Guides, email to: wincapsimtips@gmail.com
All Free downloads - LINK

Buy All Collections for USD 19.99 – Buy now LINK (Click here)
Any inquiry and support, please email: wincapsimtips@gmail.com
FREE DOWNLOADS:
1. Operations Management: Sustainability and SCM, 12th Edition, Jay Heizer, 2017
2. Operations Management, Sustainability and SCM, 11th Ed, 2014, Jay Heizer
3. Principles of Operations Management: Sustainability and SCM, 10th Ed, Jay Heizer, 2017
Free Download Link
4. Operations Management, 2017, 12th Edition, William J. Stevenson
Free Download Link
5. Operations Management: Processes and Supply Chains, 11th Edition, Lee J. Krajewski, 2016
6. Operations Research: An Introduction, 10th Edition, Hamdy A. Taha, 2017
7. Introduction to Operations and SCM, 4th Edition, Cecil B. Bozarth, Robert B. Handfield, 2016 
8. Hotel Operations Management, 3rd Edition, David K. Hayes, 2017Ebooks – Free Download Links
Videos – Youtube channel links

Good Luck and Success, Enjoy Your Study !
Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)