Operations And Supply Chain Management The Core 4th Edition by F. Robert Jacobs - Test Bank

Operations And Supply Chain Management The Core 4th Edition by F. Robert Jacobs – Test Bank

 

Instant Download – Complete Test Bank With Answers

 

 

Sample Questions Are Posted Below

 

 

 

 

 

 

 

 

 

1. Project management can be defined as planning, directing, and controlling resources to meet the technical, cost, and time constraints of the project.

 

TRUE

 

Project management can be defined as planning, directing, and controlling resources (people, equipment, material) to meet the technical, cost, and time constraints of the project.

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 1 Easy

 

Learning Objective: 05-01

 

Topic: What Is Project Management?

 

2. A project may be defined as a series of related jobs directed toward some major output and requiring a significant period of time to perform.

 

TRUE

 

A project may be defined as a series of related jobs usually directed toward some major output and requiring a significant period of time to perform.

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 1 Easy

 

Learning Objective: 05-01

 

Topic: What Is Project Management?

 

3. The second step in managing a project is writing the Statement of Work.

 

FALSE

 

A project starts out as a statement of work

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 1 Easy

 

Learning Objective: 05-02

 

Topic: Managing Projects

 

4. An event unit package is a subdivision of a project.

 

FALSE

 

There is no such item as an event unit package described in the text

 

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 2 Medium

 

Learning Objective: 05-02

 

Topic: Managing Projects

 

 

 

 

 

 

 

 

5. Complex projects are often subdivided into a series of tasks that are typically configured to be not longer than several months in duration.

 

TRUE

 

A task is a subdivision of a project. It is usually not longer than several months in duration and is performed by one group or organization.

 

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 1 Easy

 

Learning Objective: 05-02

 

Topic: Managing Projects

 

 

6. A work breakdown structure is used in project management but it is not used when the critical path method is involved.

 

FALSE

 

Activities are identified as part of the work breakdown structure. Activities are also the essence of the Critical Path Method. Hence, the work breakdown structure is used when the critical path method is involved.

 

AACSB: Analytic

 

Bloom’s: Create

 

Difficulty: 2 Medium

 

Learning Objective: 05-02

 

Topic: Managing Projects

 

7. The fact that organizations are flattening is one of the reasons that project management is important.

 

TRUE

 

As organizations flatten (through reengineering, downsizing, outsourcing), more will depend on projects and project leaders to get work done, work that previously was handled within departments.

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 1 Easy

 

Learning Objective: 05-01

 

Topic: What Is Project Management?

 

8. The Gantt chart is an example of a project control chart.

 

TRUE

 

Gantt charts, sometimes referred to as bar charts, show both the amount of time involved and the sequence in which activities can be performed.

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 2 Medium

 

Learning Objective: 05-02

 

Topic: Managing Projects

 

 

 

 

9. Upper level management must decide between pure, functional, and matrix structures as ways to organize projects.

 

TRUE

 

Before the project starts, senior management must decide which of three organizational structures will be used to tie the project to the parent firm: pure project, functional project, or matrix project.

 

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 2 Medium

 

Learning Objective: 05-02

 

Topic: Managing Projects

 

10. One of the disadvantages of a pure project organizational structure is that the project manager has full authority over the project.

 

FALSE

 

The project manager having full authority over the project is listed as an advantage in the text.

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 2 Medium

 

Learning Objective: 05-02

 

Topic: Managing Projects

 

 

11. One of the advantages of a functional project organizational structure is that a team member can work on several projects.

 

TRUE

 

That a team member can work on several projects in a functional organizational structure is listed as an advantage in the text.

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 1 Easy

 

Learning Objective: 05-02

 

Topic: Structuring Projects

 

12. A matrix project attempts to blend properties of functional and pure project structures.

 

TRUE

 

The classic specialized organizational form, “the matrix project,” attempts to blend properties of functional and pure project structures.

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 1 Easy

 

Learning Objective: 05-02

 

Topic: Managing Projects

 

 

 

 

 

 

 

 

13. A matrix project structure is often referred to as a “skunkworks.”

 

FALSE

 

A pure project is nicknamed skunkworks.

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 2 Medium

 

Learning Objective: 05-02

 

Topic: Managing Projects

 

14. A disadvantage of a matrix project organizational structure is that a project manager is held responsible for successful completion of the project.

 

FALSE

 

A project manager is held responsible for successful completion of the project is listed as an advantage of a matrix organizational structure.

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 1 Easy

 

Learning Objective: 05-02

 

Topic: Managing Projects

 

 

 

15. The critical path of activities in a project is the sequence of activities that form the shortest chain in a project network of activities.

 

FALSE

 

The critical path of activities in a project is the sequence of activities that form the longest chain in terms of their time to complete.

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 2 Medium

 

Learning Objective: 05-02

 

Topic: Network-Planning Models

 

 

16. CPM is an abbreviation for Critical Path Method.

 

TRUE

 

CPM is defined as an abbreviation for critical path method in the text.

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 1 Easy

 

Learning Objective: 05-02

 

Topic: Network-Planning Models

 

 

 

 

 

 

17. In CPM the late start time estimate is the latest time you can start an activity and still keep the entire project on schedule.

 

TRUE

 

The late start and late finish are the latest times activities can start and finish without delaying the project.

 

AACSB: Reflective Thinking

Bloom’s: Remember

Difficulty: 2 Medium

Learning Objective: 05-0

 

18. The critical path in a project is that sequence of activities that consume the longest amount of time in a project network of activities.

 

TRUE

 

The critical path of activities in a project is the sequence of activities that form the longest chain in terms of their time to complete.

 

AACSB: Reflective Thinking

Bloom’s: Understand

Difficulty: 2 Medium

Learning Objective: 05-03

Topic: Network-Planning Models

 

 

19. The critical path in a CPM analysis is always the shortest path through the network.

 

FALSE

 

The critical path of activities in a project is the sequence of activities that form the longest chain in terms of their time to complete.

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 2 Medium

 

Learning Objective: 05-03

 

Topic: Network-Planning Models

 

20. Slack activity time is the difference between the early start and the late finish of a project activity time.

 

FALSE

 

The difference between the late start time and early start time is the slack time.

 

AACSB: Analytic

 

Bloom’s: Analyze

 

Difficulty: 1 Easy

 

Learning Objective: 05-03

 

Topic: Network-Planning Models

 

21. In a CPM analysis if you subtract the late finish from the early finish the result is the activity’s slack time.

 

FALSE

 

The difference between the late start time and early start time is the slack time.

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 2 Medium

 

Learning Objective: 05-03

 

Topic: Network-Planning Models

 

 

22. In a CPM analysis if you subtract the early start from the late start the result is the activity’s slack time.

 

TRUE

 

The difference between the late start time and early start time is the slack time.

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 1 Easy

 

Learning Objective: 05-03

 

Topic: Network-Planning Models

 

23. The critical path in a CPM analysis is found by locating the activities times with zero slack.

 

TRUE

 

The critical path is the longest sequence of connected activities through the network and is defined as the path with zero slack time.

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 1 Easy

 

Learning Objective: 05-03

 

Topic: Network-Planning Models

 

 

 

24. Calculating the early start and early finish times for each activity in a CPM analysis does not provide any useful information.

 

FALSE

 

One motivation for using a late start schedule is that savings are realized by postponing purchases of materials, the use of labor, and other costs until necessary. Using an early start schedule allows handling unforeseen circumstances on non-critical activities without disrupting critical path activities.

 

AACSB: Analytic

 

Bloom’s: Analyze

 

Difficulty: 1 Easy

 

Learning Objective: 05-03

 

Topic: Network-Planning Models

 

 

 

25. The project indirect costs associated with a project include overhead, facilities, and resource opportunity costs.

 

TRUE

 

The costs associated with sustaining the project are termed project indirect costs: overhead, facilities, and resource opportunity costs.

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 2 Medium

 

Learning Objective: 05-04

 

Topic: Network-Planning Models

 

 

 

 

 

 

 

 

26. The activity direct costs associated with a project might include giving workers overtime to complete a project in less than the expected time.

 

TRUE

 

The costs associated with expediting activities are termed activity direct costs and add to the project direct cost. Some may be worker-related, such as overtime work, hiring more workers, and transferring workers from other jobs; others are resource-related, such as buying or leasing additional or more efficient equipment and drawing on additional support facilities.

 

AACSB: Analytic

 

Bloom’s: Analyze

 

Difficulty: 2 Medium

 

Learning Objective: 05-04

 

Topic: Network-Planning Models

 

 

27. You are managing a project and need to cut the cost of the project. You decide to transfer workers to another job to cut the project’s costs. Costs associated with transferring the workers are an example of project indirect costs.

 

FALSE

 

The costs associated with expediting activities are termed activity direct costs and add to the project direct cost. Some may be worker-related, such as overtime work, hiring more workers, and transferring workers from other jobs; others are resource-related, such as buying or leasing additional or more efficient equipment and drawing on additional support facilities.

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 2 Medium

 

Learning Objective: 05-04

 

Topic: Network-Planning Models

 

 

 

28. Using the Time-Cost CPM model, the crash time is the shortest possible time allowed for each activity in the project.

 

TRUE

 

Crash time (CT): is defined as the shortest possible activity time.

 

AACSB: Reflective Thinking

Bloom’s: Remember

Difficulty: 2 Medium

Learning Objective: 05-04

Topic: Network-Planning Model

 

29. In the Time-Cost CPM model, cost is assumed to be a linear function of time.

 

TRUE

 

We assume a linear relationship between time and cost. This assumption is common in practice and helps us derive the cost per day to expedite

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 2 Medium

 

Learning Objective: 05-04

 

Topic: Network-Planning Models

 

 

 

30. When reducing the planned duration of a project using the Time-Cost CPM model we select the activity to crash by determining the cost of each alternative and selecting the one whose cost is the greatest.

 

FALSE

 

The easiest way to proceed is to start with the normal schedule, find the critical path, and reduce the path time by one day using the lowest-cost activity.

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 1 Easy

 

Learning Objective: 05-04

 

Topic: Network-Planning Models

 

31. One of the assumptions made using CPM is that project activities can be identified with clear beginning and ending points.

 

TRUE

 

From the text, we are assuming that the activity times are known. Hence each activity must have clear beginning and ending points.

 

AACSB: Reflective Thinking

 

Bloom’s: Understand

 

Difficulty: 2 Medium

 

Learning Objective: 05-02

 

Topic: Network-Planning Models

 

32. One of the assumptions made using CPM is that project activity sequence relationships can be specified and networked.

 

TRUE

 

Determine the required sequence of activities and construct a network reflecting the precedence relationships.

 

AACSB: Reflective Thinking

Bloom’s: Remember

Difficulty: 1 Easy

Learning Objective: 05-03

Topic: Network-Planning Model

 

 

 

 

 

 

 

33. Project management software available today combines CPM and other scheduling aids, like Gantt charting, to aid in tracking progress of project completion.

 

TRUE

 

See the highlighted box on in the text “Project Management Information Systems”

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 1 Easy

 

Learning Objective: 05-04

 

Topic: Project Management Information systems

 

 

 

 

34. A project milestone is a specific event to be reached by a particular point in time.

 

TRUE

 

Specific events to be reached at points in time are called project milestones.

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 2 Medium

 

Learning Objective: 05-02

 

Topic: Managing Projects

 

35. Breakthrough projects are those that provide fundamental improvements to existing products.

 

FALSE

 

Breakthrough projects involve major changes that create entirely new markets. Platform projects are those that provide fundamental improvements to existing products.

 

ACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 1 Easy

 

Learning Objective: 05-01

 

Topic: What Is Project Management?

36. Derivative projects are those which address incremental changes to products or processes.

 

TRUE

 

Derivative projects are those that produce incremental changes such as new product packaging or no-frills versions.

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 1 Easy

 

Learning Objective: 05-01

 

Topic: What Is Project Management?

 

37. Earned Value Management (EVM) is a technique for measuring project progress in an objective manner.

 

TRUE

 

EVM is a technique for measuring project progress in an objective manner.

AACSB: Reflective Thinking

Bloom’s: Remember

Difficulty: 1 Easy

Learning Objective: 05-02

Topic: Managing Projects

 

 

 

 

38. The valuations in an Earned Value Management analysis must be either profits or revenue.

 

FALSE

 

The valuations could be based on either a value measure (revenue or profit) or a cost measure.

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 1 Easy

 

Learning Objective: 05-02

 

Topic: Managing Projects

 

 

 

 

 

39. Earned Value Management (EVM) has the capability to combine measurements of scope, schedule, and cost in a project.

 

TRUE

 

EVM has the ability to combine measurements of scope, schedule, and cost in a project.

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 1 Easy

 

Learning Objective: 05-02

 

Topic: Managing Projects

 

40. A project can be subdivided into which of the following?

 

1. Job orders

 

1. Sub-jobs
2. Work packages
3. Sub-paths

 

1. Events and decisions

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 1 Easy

 

Learning Objective: 05-02

 

Topic: Managing Projects

 

41. A project starts out as which of the following?

 

1. A Statement of Work

 

1. Critical Path Method (CPM)

 

1. A series of milestones

 

1. A Gantt chart

 

1. A latest-start-time estimate

 

A project starts out as a statement of work.

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 1 Easy

 

Learning Objective: 05-02

 

Topic: Managing Project

 

42. What is a work breakdown structure?

 

1. A list of the activities making up the higher levels of the project

 

1. A definition of the hierarchy of project tasks, subtasks, and work packages

 

1. A depiction of the activities making up a project

 

1. A Gantt chart

 

1. A structure that is incompatible with the Critical Path Method

 

The work breakdown structure defines the hierarchy of project tasks, subtasks, and work packages.

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 2 Medium

 

Learning Objective: 05-02

 

Topic: Managing Projects

43. In a Gantt chart the horizontal axis is usually which of the following?

 

1. Activities

 

1. Cost

 

1. Profit

 

1. Time

 

1. Milestones

 

See exhibit 5.4a.

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 2 Medium

 

Learning Objective: 05-02

 

Topic: Network-Planning Models

 

44. Which of the following is a graphic project report used in project management?

 

1. Project proposal

 

1. Approved project plan

 

1. Humphrey chart

 

1. Equipment and supplies chart

 

1. Cost and performance tracking schedule

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 2 Medium

 

Learning Objective: 05-02

 

Topic: Network-Planning Models

 

45. An advantage of a pure project where self-contained teams work full time on a project is which of the following?

 

1. Team members can work on several projects

 

1. Functional area is a “home” after the project is completed

 

1. There are duplicated resources

 

1. Lines of communication are shortened

 

1. Overall organizational policies and goals can be ignored

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 2 Medium

 

Learning Objective: 05-02

 

Topic: Managing Projects

 

46. Some of the advantages of a functional project where the project is housed in a functional division include which of the following?

 

1. The project manager has full authority over the project

 

1. Team pride, motivation, and commitment are high

 

1. A team member can work on several projects

 

1. Needs of the client are secondary

 

1. None of these

 

An advantage of the functional project structure listed in the text is that a team member can work on several projects.

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 1 Easy

 

Learning Objective: 05-02

 

Topic: Managing Projects

 

 

 

 

47. A series of projects that are organized in such a way that each project utilizes people from different functional areas is using which of the following organizational structures?

 

1. Matrix project

 

1. Integrated Task Force

 

1. Functional project

 

1. Pure project

 

1. Cross-functional flexible team

 

The matrix project utilizes people from different functional areas.

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 1 Easy

 

Learning Objective: 05-02

 

Topic: Managing Projects

 

 

48. You are looking at a chart that has the terms BCWS, BCWP, and AC indicating lines on the chart. What kind of chart are you looking at?

 

1. Gantt Chart

 

1. PERT Chart

 

1. Bar/Milestone Chart

 

1. Total Program Cost Breakdown

 

1. EVM Chart

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 1 Easy

 

Learning Objective: 05-02

 

Topic: Network-Planning Models

 

 

 

49. PERT is an abbreviation for which of the following methodologies?

 

1. Product Evaluation, Result, and Treatment
2. Programming and Evaluation Realization Technology

 

1. Program Evaluation and Review Technique

 

1. Process Evaluation and Review Technology

 

1. It is a name, not an abbreviation for anything

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 1 Easy

 

Learning Objective: 05-03

 

Topic: Network-Planning Models

 

 

 

 

 

 

 

 

50. You have just been assigned to oversee a series of projects. Functional areas will loan you personnel for each project and separate project managers will be responsible for separate projects. These project managers will report to you. Which project management structure is being used?

 

1. Pure Project

 

1. Task force

 

1. Matrix Project

 

1. Functional Project

 

1. PERT

 

The matrix form: projects borrow resources from functional areas.

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 3 Hard

 

Learning Objective: 05-02

 

Topic: Managing Projects

 

 

51. You have been placed in charge of a large project. Shortened communication lines are required to ensure quick resolution of problems as they arise. You recognize that the project is going to take a lot of time and require a lot of team pride, motivation, and commitment by all members. Which project management structure should you use in this situation?

 

1. Pure Project

 

1. Task force

 

1. Matrix Project

 

1. Functional Project

 

1. PERT

 

AACSB: Reflective Thinking

 

Bloom’s: Remember

 

Difficulty: 3 Hard

 

Learning Objective: 05-02

 

Topic: Managing Projects

 

52. A simple project listing of five activities and their respective time estimates are presented below:

 

 

 

 

 

 

Using CPM, which activities make up the critical path?

 

1. A, C, D, E

 

1. A, B, D, E

 

1. A, C, B, D, E

 

1. A, D, E

 

1. None of these

 

There are two paths: A, B, D, E and A, C, D, E. ABDE will take 8 days while ACDE will take 7 days. ABDE, therefore, is the critical path for this project. Activity C is off the critical path because there is one day of slack in that activity.

 

AACSB: Analytic

 

Bloom’s: Analyze

 

Difficulty: 2 Medium

 

Learning Objective: 05-03

 

Topic: Network-Planning Models

 

 

 

 

 

53. A simple project listing of five activities, their predecessors, and their respective time estimates are presented below:

 

 

 

 

 

 

Using CPM, what is the Latest Finish Time for the last activity in this project (i.e., the total time to complete the project)?

 

1. 10 days

 

1. 7 days

 

1. 8 days

 

1. 12 days

 

1. 9 days

 

AACSB: Analytic

 

Bloom’s: Analyze

 

Difficulty: 2 Medium

 

Learning Objective: 05-03

 

Topic: Network-Planning Models

 

 

54. A simple project listing of five activities, their predecessors, and their respective time estimates are presented below:

 

 

 

 

 

Using the CPM, which activities have slack in this project?

 

1. A

 

1. B

 

1. C

 

1. D

 

1. C and E

 

AACSB: Analytic

 

Bloom’s: Analyze

 

Difficulty: 2 Medium

 

Learning Objective: 05-03

 

Topic: Network-Planning Models

 

 

 

 

 

 

55. A company must perform a maintenance project consisting of seven activities. The activities, their predecessors, and their respective time estimates are presented below:

 

 

 

 

 

 

Using CPM, which activities make up the critical path?

 

1. A, B, D, F, G

 

1. A, C, E, F, G

 

1. A, C, B, F, E

 

1. A, D, E

 

1. None of these

 

There are only two paths, ABDFG & ACEFG. ABDFG takes 13 days while ACEFG takes 11 days. ABDFG (answer A) is the critical path.

 

AACSB: Analytic

 

Bloom’s: Analyze

 

Difficulty: 3 Hard

 

Learning Objective: 05-03

 

Topic: Network-Planning Models

 

56. A company must perform a maintenance project consisting of seven activities. The activities, their predecessors, and their respective time estimates are presented below:

 

Using CPM, what is the Latest Finish Time for the last activity in this project (i.e., the total time to complete the project)

1. 9 days

 

1. 10 days

 

1. 11 days

 

1. 12 days

 

1. 13 days

 

There are two paths, ABDFG & ACEFG. ABDFG takes 10 days while ACEFG takes 11 days. ACEFG is the critical path and C) 11 days is the correct answer.

 

AACSB: Analytic

 

Bloom’s: Analyze

 

Difficulty: 3 Hard

 

Learning Objective: 05-03

 

Topic: Network-Planning Models

 

 

57. A company must perform a maintenance project consisting of seven activities. The activities, their predecessors, and their respective time estimates are presented below:

 

 

 

 

 

 

Using CPM, which activities have slack in this project?

 

1. A, B, C

 

1. B, D

 

1. Only C

 

1. C, E

 

1. F, G

 

There are two paths, ABDFG & ACEFG. ABDFG takes 12 days while ACEFG takes 10 days. ABDFG is the critical path. Activities C & E have 2 days of slack time in this project. The correct answer is D.

 

AACSB: Analytic

 

Bloom’s: Analyze

 

Difficulty: 2 Medium

 

Learning Objective: 05-03

 

Topic: Network-Planning Models

 

 

 

 

58. For an activity in a CPM analysis, the Early Start time is 8 and the Late Start time is 10. Which of the following statements is true?

 

1. The Late Finish is 12

 

1. The Early Finish is 10

 

1. The slack for this activity is 2

 

1. The duration of this activity is 2

 

1. The activity is on the critical path

 

The difference between the late start time and early start time is the slack time.

 

AACSB: Analytic

 

Bloom’s: Analyze

 

Difficulty: 2 Medium

 

Learning Objective: 05-03

 

Topic: Network-Planning Models

 

 

 

 

 

 

 

59. For an activity in a CPM analysis the Early Finish time is 20 and the Late Finish time is 20. Which of the following statements is true?

 

1. The activity’s late start must happen before its early start

 

1. The activity is on the critical path

 

1. The slack for this activity is 20

 

1. The duration of this task is zero

 

1. The duration of this task is 20

 

The critical path is the longest sequence of connected activities through the network and is defined as the path with zero slack time. Since the critical path has zero slack time each activity on the path must have zero slack time. It follows that an activity with zero slack time (e.g., early start = late start = zero) is on the critical path.

 

AACSB: Analytic

 

Bloom’s: Analyze

 

Difficulty: 2 Medium

 

Learning Objective: 05-03

 

Topic: Network-Planning Models

 

60. A listing of immediate predecessor activities is important information in a CPM analysis for which of the following reasons?

 

1. It specifies the relationships in the CPM network of activities

 

1. It provides useful timing information

 

1. It includes cost information

 

1. It is the probability information required in the final step of CPM

 

1. None of these

 

The immediate predecessors are the activities that need to be completed immediately before an activity. They therefore specify relationships in the CPM network.

 

AACSB: Reflective Thinking

 

Bloom’s: Understand

 

Difficulty: 2 Medium

 

Learning Objective: 05-03

 

Topic: Network-Planning Models

 

61. You have just performed a CPM analysis and have found that more than one path through the project network has zero slack values. What can you conclude?

 

1. You have incorrectly performed the analysis

 

1. You have multiple critical paths

 

1. Only one path is optimal

 

1. More than one path is optimal

 

1. The project will not be completed by the desired time

 

It is possible and it often happens that there are multiple paths of the same length through the network so there are multiple critical paths.

 

AACSB: Analytic

 

Bloom’s: Evaluate

 

Difficulty: 2 Medium

 

Learning Objective: 05-03

 

Topic: Network-Planning Models

 

 

 

 

 

 

 

 

 

 

62. You have the following time and cost information below for use in a Time-Cost CPM Scheduling model. What are the three costs per unit of time to expedite each activity?

 

 

 

 

 

 

1. A=$300, B=$200, C=$300

 

1. A=$100, B=$200, C=$400

 

1. A=$200, B=$200, C=$200

 

1. A=$100, B=$400, C=$300

 

1. A=$200, B=$300, C=$400

 

AACSB: Analytic

 

Bloom’s: Analyze

 

Difficulty: 2 Medium

 

Learning Objective: 05-04

 

Topic: Network-Planning Models

 

 

63. Below are the data for a Time-Cost CPM Scheduling model analysis. The time is in days and the costs include both direct and indirect costs.

 

What are the total time of this project and total normal cost?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1. Total time is 13 days, total cost is $1200

 

1. Total time is 12 days, total cost is $1700

 

1. Total time is 11 days, total cost is $1600

 

1. Total time is 10 days, total cost is $1750
2. Total time is 9 days, total cost is $1700

 

 

AACSB: Analytic

 

Bloom’s: Analyze

 

Difficulty: 2 Medium

 

Learning Objective: 05-04

 

Topic: Network-Planning Models

 

 

 

 

 

 

 

 

 

 

 

 

 

 

64. Below are the data for a Time-Cost CPM Scheduling model analysis. The time is in days and the costs include both direct and indirect costs.

 

If you crash this project to reduce the total time by one day what is the total time of the project and total cost?

 

 

 

 

 

 

 

 

 

 

 

 

1. Total time is 13 days, total cost is $1500

 

1. Total time is 12 days, total cost is $2000

 

1. Total time is 12 days, total cost is $2300

 

1. Total time is 11 days, total cost is $1850

 

1. Total time is 11 days, total cost is $2350

 

AACSB: Analytic

 

Bloom’s: Analyze

 

Difficulty: 2 Medium

 

Learning Objective: 05-04

 

Topic: Network-Planning Models

 

 

65. Below are the data for a Time-Cost CPM Scheduling analysis. The time is in days and the costs include both direct and indirect costs.

 

If you crash this project to reduce the total time by four days, what is the total time of the project and total cost?

 

 

 

 

 

 

 

 

 

 

 

 

1. Total time is 10 days, total cost is $2500

 

1. Total time is 9 days, total cost is $2300

 

1. Total time is 8 days, total cost is $2750

 

1. Total time is 8 days, total cost is $1850

 

1. Total time is 9 days, total cost is $2350

 

AACSB: Analytic

 

Bloom’s: Analyze

 

Difficulty: 2 Medium

 

Learning Objective: 05-04

 

Topic: Network-Planning Models

 

 

 

66. You have collected the data for a Time-Cost CPM Scheduling model analysis. The time is in days and the project “direct costs” are given below.

 

The indirect costs for the project are determined on a daily duration basis. If the project lasts 16 days the total indirect costs are $400, 15 days they will be $250, 14 days they will be $200, and 13 days they will be $100. If you crash this project by one day what is the total (i.e., direct and indirect) project cost?

 

 

 

 

 

 

 

 

 

 

1. $2,150

 

1. $2,300

 

1. $2,400

 

1. $2,450

 

1. $2,500

 

AACSB: Analytic

 

Bloom’s: Analyze

 

Difficulty: 3 Hard

 

Learning Objective: 05-04

 

Topic: Network-Planning Models

 

 

 

 

 

67. You have collected the data for a Time-Cost CPM Scheduling model analysis. The time is in days and the project “direct costs” are given below.

 

The indirect costs for the project are determined on a daily duration basis. If the project lasts 16 days the total indirect costs are $400, 15 days they will be $250, 14 days they will be $200, and 13 days they will be $100. At what day do we achieve the lowest total project cost (i.e., direct plus indirect costs)?

 

 

 

 

 

 

 

 

 

 

 

 

1. 16 days

 

1. 15 days

 

1. 14 days

 

1. 13 days

 

1. 12 days

 

AACSB: Analytic

 

Bloom’s: Analyze

 

Difficulty: 3 Hard

 

Learning Objective: 05-0

 

 

 

 

68. You know when you have arrived at the optimal solution in using the Time-Cost CPM Scheduling model analysis when what happens?

 

1. You have found the critical path

 

1. You have run out of crash time

 

1. You no longer have a linear relationship with costs

 

1. You have reached the minimum total cost

 

1. You have run out of crash costs

 

See exhibit 5.12.

 

AACSB: Reflective Thinking

 

Bloom’s: Understand

 

Difficulty: 2 Medium

 

Learning Objective: 05-04

 

69. In CPM analysis it is generally expected that the relationship between activity direct costs and project indirect costs will be which of the following?

 

1. Positively related

 

1. Optimally related

 

1. Negatively related

 

1. Not related

 

1. Fractionally related

 

Activity direct costs and project indirect costs are opposing costs dependent on time.

 

AACSB: Reflective Thinking

 

Bloom’s: Understand

 

Difficulty: 2 Medium

 

Learning Objective: 05-04

 

Topic: Network-Planning Models

 

 

 

 

70. In a project analysis using three time estimates with more than one critical path existing, how does the project manager decide which variances to use in arriving at the probability of meeting the project due date?

 

1. The project manager averages the variances and uses that

 

1. The project manager uses the smallest variance in order to get the highest probability of on-time completion

 

1. The project manager uses the variances considered most correct

 

1. The project manager uses the largest variances in order to understate the probability of on-time completion E. The project manager uses the most likely estimate plus the amount of slack time in the project.

 

A conservative approach dictates using the critical path with the largest total variance to focus management’s attention on the activities most likely to exhibit broad variations.

 

AACSB: Reflective Thinking

 

Bloom’s: Understand

 

Difficulty: 2 Medium

 

Topic: Network-Planning Models

 

 

 

 

 

 

 

 

 

71. What does “EVM” stand for?

 

1. Extra Value Materials—premium quality raw materials at the project site.
2. Enterprise Vacation Matrix—A chart indicating team members planned vacation absences
3. Earned Value Management–a technique for measuring project progress objectively.

D.Early Vision Management—An technique used in early project planning meetings for activities that set expectations to highlight and avoid “scope creep.”

E.External Variance Measurement—identifying the degree to which project time and cost variances were due to forces and issues uncontrollable by the project manager.

 

 

 

AACSB: Reflective Thinking

 

Bloom’s: Understand

 

Difficulty: 2 Medium

 

Topic: Network-Planning Models

 

72. The major goal of Critical Path analysis is to:

 

1. Estimate the project’s completion date
2. Identify and manage the critical path
3. Determine the latest feasible start date
4. Provide a visual aid that indicates precedent and antecedent relationships
5. To determine when each activity in the project should be scheduled

 

 

 

AACSB: Reflective Thinking

 

Bloom’s: Understand

 

Difficulty: 1 Easy

 

Topic: Network-Planning Models

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category	# of Questions
AACSB: Analytic	19
AACSB: Reflective Thinking	53
Bloom’s: Analyze	17
Bloom’s: Create	1
Bloom’s: Evaluate	1
Bloom’s: Remember	45
Bloom’s: Understand	8
Difficulty: 1 Easy	28
Difficulty: 2 Medium	38
Difficulty: 3 Hard	6
Learning Objective: 05-01	5
Learning Objective: 05-02	29
Learning Objective: 05-03	20
Learning Objective: 05-04	15
Topic: Managing Projects	22
Topic: Network-Planning Models	41
Topic: Project Management Information systems	1
Topic: Structuring Projects	1
Topic: What Is Project Management?	5