Test Bank | Ch3 Project Management – 10th Global Ed

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Operations Management, 10e, Global Edition (Heizer/Render)

Chapter 3 Project Management

1) The ES of an activity that has only one predecessor is simply the EF of that predecessor.

Diff: 2

Topic: Determining the project schedule

Objective: LO3-3

2) One phase of a large project is scheduling.

Diff: 1

Topic: The importance of project management

Objective: no LO

3) A project organization works best for an organization when the project resides in only one of its functional areas.

Diff: 2

Topic: Project planning

Objective: no LO

4) By their very nature, projects have a limited lifetime, and that sets project management apart from the management of more traditional activities.

Diff: 2

Topic: Project planning

Objective: no LO

5) One responsibility of a project manager is to make sure that the project meets its quality goals.

Diff: 2

Topic: Project planning

Objective: no LO

6) Work Breakdown Structure is a useful tool in project management because it addresses the timing of individual work elements.

Diff: 2

Topic: Project planning

Objective: no LO

7) Project managers have their own code of ethics, established by the Project Management Institute.

Diff: 2

Topic: Ethical issues faced in project management

AACSB: Ethical Reasoning

Objective: no LO

8) Ethical issues which can arise in projects include gifts from contractors, pressure to mask delays with false status reports, and pressure to compromise project quality for cost or time savings.

Diff: 1

Topic: Ethical issues faced in project management

AACSB: Ethical Reasoning

Objective: no LO

9) Gantt charts give a timeline for each of a project's activities, but do not adequately show the interrelationships of activities.

Diff: 2

Topic: Project scheduling

Objective: LO3-1

10) PERT, but not CPM, has the ability to consider the precedence relationships in a project.

Diff: 2

Topic: Project scheduling

Objective: LO3-5

11) The shortest of all paths through the network is the critical path.

Diff: 2

Topic: Project management techniques: PERT and CPM

Objective: LO3-4

12) The fundamental difference between PERT and CPM is that PERT uses the beta distribution for crashing projects while CPM uses cost estimates.

Diff: 2

Topic: Project management techniques: PERT and CPM

Objective: LO3-5

13) Slack is the amount of time an activity can be delayed without delaying the entire project.

Diff: 2

Topic: Project management techniques: PERT and CPM

Objective: LO3-3

14) Every network has at least one critical path.

Diff: 2

Topic: Project management techniques: PERT and CPM

Objective: LO3-4

15) The critical path can be determined by use of either the "forward pass" or the "backward pass."

Diff: 2

Topic: Project management techniques: PERT and CPM

Objective: LO3-4

16) The PERT pessimistic time estimate is an estimate of the minimum time an activity will require.

Diff: 1

Topic: Project management techniques: PERT and CPM

Objective: LO3-5

17) The standard deviation of project duration is the average of the standard deviation of all activities on the critical path.

Diff: 2

Topic: Project management techniques: PERT and CPM

Objective: LO3-5

18) In PERT analysis, the identification of the critical path can be incorrect if a noncritical activity takes substantially more than its expected time.

Diff: 3

Topic: Project management techniques: PERT and CPM

Objective: LO3-5

19) Shortening the project's duration by deleting unnecessary activities is called "project crashing."

Diff: 2

Topic: Cost-time trade-offs and project crashing

Objective: LO3-6

20) In project management, crashing an activity must consider the impact on all paths in the network.

Diff: 2

Topic: Cost-time trade-offs and project crashing

Objective: LO3-6

21) Which of the following statements regarding Bechtel is true?

A) Its competitive advantage is project management.

B) Bechtel was the construction contractor for the Hoover Dam.

C) While helping to rebuild Iraq, Bechtel's crews had to travel under armed escort.

D) Bechtel's procurement program is global in nature.

E) All of the above are true.

Diff: 1

Topic: Global company profile

Objective: no LO

22) Which of the following statements about Bechtel is true?

A) Even though Bechtel is over 100 years old, the Kuwaiti oil fields was its first "project."

B) Bechtel is the world's premier manager of massive construction and engineering projects.

C) Bechtel's competitive advantage is supply-chain management.

D) While its projects are worldwide, its network of suppliers is largely in the U.S.

E) All of the above are true.

Diff: 2

Topic: Global company profile

Objective: no LO

23) Which of the following projects were completed by Bechtel?

A) Hoover Dam

B) Boston Central Artery/Tunnel

C) Rebuilding Kuwait after Iraq's invasion in 1990

D) Rebuilding Iraq after the U.S. invasion, starting in 2003

E) All of the above were Bechtel projects

Diff: 2

Topic: Global company profile

Objective: no LO

24) The phases of project management are

A) planning, scheduling, and controlling

B) planning, programming, and budgeting

C) planning, organizing, staffing, leading, and controlling

D) different for manufacturing projects than for service projects

E) GANTT, CPM, and PERT

Diff: 1

Topic: The importance of project management

Objective: no LO

25) Which of the following is not one of the three phases of project management?

A) planning

B) scheduling

C) controlling

D) All of the above are project management phases.

E) Both A and C are not project management phases.

Diff: 2

Topic: The importance of project management

Objective: no LO

26) A project organization

A) is effective for companies with multiple large projects

B) is appropriate only in construction firms

C) often fails when the project cuts across organizational lines

D) is formed to ensure that programs (projects) get proper management and attention

E) A and D are both true

Diff: 2

Topic: Project planning

Objective: no LO

27) Which of the following statements regarding project management is false?

A) Gantt charts give a timeline for each of a project's activities, but do not adequately show the interrelationships of activities.

B) A project organization works best for a project that is temporary but critical to the organization.

C) Project organization works well when the work contains simple, independent tasks.

D) Gantt charts and PERT/CPM are never used together.

E) None of the above is true.

Diff: 2

Topic: Project planning

Objective: no LO

28) A code of ethics especially for project managers

A) has been established by the Project Management Institute

B) has been formulated by the Federal government

C) has been formulated by the World Trade Organization

D) is inappropriate, since everyone should use the same guidance on ethical issues

E) does not exist at this time

Diff: 2

Topic: Project planning

AACSB: Ethical Reasoning

Objective: no LO

29) Ethical issues that may arise in projects large and small include

A) gifts from contractors

B) exaggerated expense reports

C) compromised safety or health standards to save time or reduce costs

D) pressure to mask delays with false status reports

E) all of the above

Diff: 1

Topic: Project planning

AACSB: Ethical Reasoning

Objective: no LO

30) The project organization works best when which of the following conditions are satisfied?

I. Work can be defined with a specific goal and deadline.

II. The job is typical and familiar to the existing organization.

III. The work contains interrelated tasks requiring specialized skills

IV. The project is temporary but unimportant to long-term organizational success

V. The project cuts across organizational lines.

A) I,II,III,IV,V

B) None of the above conditions need to be satisfied

C) I,III,V

D) I,II,III,V

E) I,III,IV,V

Diff: 2

Topic: Project planning

Objective: no LO

31) A project organization that becomes permanent is often referred to as a __________.

A) fixed project organization

B) matrix organization

C) normal organization

D) standard organization

E) none of the above

Diff: 2

Topic: Project planning

Objective: no LO

32) WBS stands for which of the following project management tools?

A) Work Break Schedule

B) Work Breakdown Status

C) Work Breakdown Schedule

D) Work Breakdown Structure

E) None of the above

Diff: 2

Topic: Project planning

Objective: no LO

33) Match the following steps in Microsoft's development of Windows 7 to their respective WBS level.

Step Level

Develop Windows 7 OS ?

System Testing ?

Compatible with Windows XP ?

Develop GUI's ?

Module Testing ?

A) Level 1, Level 2, Level 4, Level 3, Level 3

B) Level 1, Level 2, Level 3, Level 4, Level 5

C) Level 0, Level 1, Level 2, Level 3, Level 4

D) Level 0, Level 2, Level 2, Level 3, Level 3

E) None of the above patterns is correct.

Diff: 3

Topic: Project planning

Objective: no LO

34) 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?

A) 33%, to 40 minutes

B) 50%, to 30 minutes

C) 20%, to 48 minutes

D) 25%, to 45 minutes

E) 40%, to 36 minutes

Diff: 2

Topic: Project scheduling

Objective: LO3-1

35) Which of the following statements regarding Gantt charts is true?

A) Gantt charts give a timeline and precedence relationships for each activity of a project.

B) Gantt charts use the four standard spines of Methods, Materials, Manpower, and Machinery.

C) Gantt charts are visual devices that show the duration of activities in a project.

D) Gantt charts are expensive.

E) All of the above are true.

Diff: 2

Topic: Project scheduling

Objective: LO3-1

36) The main difference between PERT and CPM is that

A) PERT is more accurate than CPM

B) PERT assumes that activity durations are known

C) PERT ignores activity costs

D) CRM assumes activity durations can vary

E) None of the above are true

Diff: 2

Topic: Project management techniques: PERT and CPM

Objective: no LO

37) A project manager is interested in crashing a project with variable activity times. Which of the following tools should he/she employ?

A) PERT

B) CPM

C) Gantt Chart

D) either PERT or CPM

E) PERT, CPM, or a Gantt chart are fine

Diff: 2

Topic: Project management techniques: PERT and CPM

Objective: LO3-6

38) The difference between AON and AOA networks is that

A) AOA networks sometimes require dummy nodes

B) nodes consume no resources or time in AOA networks

C) both are acceptable in practice, however Microsoft Project uses AON

D) in AON nodes designate activities, in AOA arrows designate activities

E) All of the above are true.

Diff: 2

Topic: Project management techniques: PERT and CPM

Objective: LO3-2

39) Which of the following statements regarding critical paths is true?

A) The shortest of all paths through the network is the critical path.

B) Some activities on the critical path may have slack.

C) Every network has only one critical path.

D) On a specific project, there can be multiple critical paths, all with exactly the same duration.

E) The duration of the critical path is the average duration of all paths in the project network.

Diff: 2

Topic: Project management techniques: PERT and CPM

Objective: LO3-4

40) Which of the following statements regarding CPM is true?

A) The critical path is the shortest of all paths through the network.

B) The critical path is that set of activities that has positive slack.

C) Some networks have no critical path.

D) All activities on the critical path have their LS equal their predecessor's EF.

E) All of the above are false.

Diff: 2

Topic: Project management techniques: PERT and CPM

Objective: LO3-4

41) 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.

A) The critical path is A-B-C, duration 15.

B) The critical path is A-C, duration 12.

C) The critical path is A-B-C, duration 13.5

D) The critical path cannot be determined without knowing PERT expected activity times.

E) The network has no critical path.

Diff: 3

Topic: Project management techniques: PERT and CPM

AACSB: Analytic Skills

Objective: LO3-4

42) 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.

A) The critical path is D-E-F, duration 15.

B) The critical path is D-F, duration 12.

C) Slack at D is 3 units.

D) Slack at E is 3 units.

E) Both a and c are true.

Diff: 3

Topic: Project management techniques: PERT and CPM

AACSB: Analytic Skills

Objective: LO3-4

43) 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.

A) There are two paths in this network.

B) There are four paths in this network.

C) There are five paths in this network.

D) There are 25 paths through this network.

E) None of these statements is true.

Diff: 2

Topic: Project management techniques: PERT and CPM

AACSB: Analytic Skills

Objective: LO3-3

44) 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 true?

A) B is a critical activity.

B) C is completed before B.

C) D has no slack but is not critical.

D) D is critical, and has zero slack.

E) All of the above are true.

Diff: 3

Topic: Project management techniques: PERT and CPM

AACSB: Analytic Skills

Objective: LO3-4

45) Which of the following statements regarding CPM networks is true?

A) There can be multiple critical paths on the same project, all with different durations.

B) The early finish of an activity is the latest early start of all preceding activities.

C) The late start of an activity is its late finish plus its duration.

D) If a specific project has multiple critical paths, all of them will have the same duration.

E) All of the above are true.

Diff: 2

Topic: Project management techniques: PERT and CPM

Objective: LO3-3

46) 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 true?

A) R is critical and has zero slack.

B) R has no slack but is not critical.

C) The last start time of S is impossible.

D) N is a critical activity.

E) S is a critical activity.

Diff: 3

Topic: Project management techniques: PERT and CPM

AACSB: Analytic Skills

Objective: LO3-4

47) Which of the following statements concerning CPM activities is false?

A) The early finish of an activity is the early start of that activity plus its duration.

B) The late finish is the earliest of the late start times of all successor activities.

C) The late start of an activity is its late finish less its duration.

D) The late finish of an activity is the earliest late start of all preceding activities.

E) The early start of an activity is the latest early finish of all preceding activities.

Diff: 3

Topic: Project management techniques: PERT and CPM

Objective: LO3-3

48) The time an activity will take assuming very unfavorable conditions is

A) the optimistic time

B) the pessimistic time

C) the activity variance

D) the minimum time

E) exactly twice as long as the expected time

Diff: 2

Topic: Project management techniques: PERT and CPM

Objective: LO3-5

49) The critical path for the network activities shown below is __________ with duration __________.

A) A-B-D; 10

B) A-B-E; 11

C) C-E; 12

D) A-D-E; 13

E) A-B-C-D-E; 22

Diff: 3

Topic: Project management techniques: PERT and CPM

AACSB: Analytic Skills

Objective: LO3-4

50) The critical path for the network activities shown below is __________ with duration __________.

A) A-D-E; 5

B) B-E; 6

C) B-D-E; 7

D) A-C-E; 10

E) B-C-E; 12

Diff: 3

Topic: Project management techniques: PERT and CPM

AACSB: Analytic Skills

Objective: LO3-4

51) The __________ distribution is used by PERT analysis to calculate expected activity times and variances.

A) Normal

B) Beta

C) Alpha

D) Gaussian

E) Binomial

Diff: 1

Topic: Project management techniques: PERT and CPM

Objective: LO3-5

52) The expected activity time in PERT analysis is calculated as

A) the simple average of the optimistic, pessimistic, and most likely times

B) the weighted average of a, m, and b, with m weighted 4 times as heavily as a and b

C) the sum of the optimistic, pessimistic, and most likely times

D) the sum of the optimistic, pessimistic, and most likely times, divided by six

E) the sum of the activity variances, divided by six

Diff: 2

Topic: Project management techniques: PERT and CPM

Objective: LO3-5

53) The critical path for the network activities shown below is __________ with duration __________.

A) A-C; 12

B) A-D-E; 19

C) B-E; 13

D) A-B-C-D-E; 29

E) none of the above

Diff: 3

Topic: Project management techniques: PERT and CPM

AACSB: Analytic Skills

Objective: LO3-4

54) Which of the following statements regarding PERT times is true?

A) The optimistic time estimate is an estimate of the minimum time an activity will require.

B) The optimistic time estimate is an estimate of the maximum time an activity will require.

C) The probable time estimate is calculated as t = (a + 4m + b).

D) Pessimistic time estimate is an estimate of the minimum time an activity will require.

E) Most likely time estimate is an estimate of the maximum time an activity will require.

Diff: 2

Topic: Project management techniques: PERT and CPM

Objective: LO3-5

55) Which of the following statements regarding PERT times is true?

A) Expected time is an estimate of the time an activity will require if everything goes as planned.

B) The optimistic time estimate is an estimate of the maximum time an activity will require.

C) The probable time estimate is calculated as t = (a + 4m + b)/6.

D) Pessimistic time estimate is an estimate of the minimum time an activity will require.

E) Most likely time estimate is an estimate of the maximum time an activity will require.

Diff: 2

Topic: Project management techniques: PERT and CPM

Objective: LO3-5

56) The Beta distribution is used in project management to

A) calculate slack on activities not on the critical path

B) calculate the probability that a project will be completed within its budget

C) calculate pessimistic and optimistic activity times

D) determine which activity should be crashed

E) none of the above

Diff: 2

Topic: Project management techniques: PERT and CPM

Objective: LO3-5

57) The Beta distribution is used in project management to

A) determine which activity should be crashed

B) calculate the probability that a project will be completed within its budget

C) calculate expected activity times

D) calculate slack for activities on the critical path

E) none of the above

Diff: 2

Topic: Project management techniques: PERT and CPM

Objective: LO3-5

58) In a PERT network, non-critical activities that have little slack need to be monitored closely

A) because PERT treats all activities as equally important

B) because near-critical paths could become critical paths with small delays in these activities

C) because slack is undesirable and needs to be eliminated

D) because they are causing the entire project to be delayed

E) because they have a high risk of not being completed

Diff: 2

Topic: Project management techniques: PERT and CPM

Objective: LO3-4

59) Which of the following statements regarding PERT analysis is true?

A) Each activity has two estimates of its duration.

B) Project variance is the sum of all activity variances.

C) Project standard deviation is the sum of all critical activity standard deviations.

D) Only critical activities contribute to the project variance.

E) None of the above is true.

Diff: 2

Topic: Project management techniques: PERT and CPM

Objective: LO3-5

60) 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, the probability that the project will take 224 days or more to complete is

A) near zero

B) 0.0126

C) 0.1587

D) 0.8413

E) 2.14

Diff: 2

Topic: Project management techniques: PERT and CPM

AACSB: Analytic Skills

Objective: LO3-5

61) An activity on a PERT network has these time estimates: optimistic = 2, most likely = 5, and pessimistic = 10. Its expected time is

A) 5

B) 5.33

C) 5.67

D) 17

E) none of these

Diff: 2

Topic: Project management techniques: PERT and CPM

AACSB: Analytic Skills

Objective: LO3-5

62) An activity on a PERT network has these time estimates: optimistic = 1, most likely = 2, and pessimistic = 5. Its expected time is

A) 2

B) 2.33

C) 2.67

D) 8

E) none of these

Diff: 2

Topic: Project management techniques: PERT and CPM

AACSB: Analytic Skills

Objective: LO3-5

63) An activity on a PERT network has these time estimates: optimistic = 2, most likely = 3, and pessimistic = 8. Its expected time and variance (if it is a critical activity) are

A) 3.67; 1

B) 3.67; 6

C) 4.33; 1

D) 4.33; 6

E) none of these

Diff: 2

Topic: Project management techniques: PERT and CPM

AACSB: Analytic Skills

Objective: LO3-5

64) 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, the probability that the project will be completed in 95 days or less is

A) -0.4

B) 0.0228

C) 0.3444

D) 0.9772

E) 4.2

Diff: 2

Topic: Project management techniques: PERT and CPM

AACSB: Analytic Skills

Objective: LO3-5

65) 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, the probability that the project will be completed in 88 days or less is

A) 0.0228

B) 0.3446

C) 0.6554

D) 0.9772

E) 18

Diff: 2

Topic: Project management techniques: PERT and CPM

AACSB: Analytic Skills

Objective: LO3-5

66) 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. The probability that the project can be completed between days 108 and 120 is

A) -2.00

B) 0.0227

C) 0.1058

D) 0.4773

E) 0.9773

Diff: 3

Topic: Project management techniques: PERT and CPM

AACSB: Analytic Skills

Objective: LO3-5

67) 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. The probability that the project will take 130 or more days to complete is

A) 0.1057

B) 0.1335

C) 0.8512

D) 0.8943

E) 1.29

Diff: 2

Topic: Project management techniques: PERT and CPM

AACSB: Analytic Skills

Objective: LO3-5

68) 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 __________.

A) 98

B) 108

C) 109

D) 115

E) 118

Diff: 3

Topic: Project management techniques: PERT and CPM

AACSB: Analytic Skills

Objective: LO3-5

69) 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 day (rounded to nearest day).

A) 98

B) 112

C) 120

D) 124

E) 220

Diff: 3

Topic: Project management techniques: PERT and CPM

AACSB: Analytic Skills

Objective: LO3-5

70) 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 day (rounded to nearest day).

A) 631

B) 689

C) 807

D) 833

E) 1009

Diff: 3

Topic: Project management techniques: PERT and CPM

AACSB: Analytic Skills

Objective: LO3-5

71) 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?

A) 0.0401

B) 0.4599

C) 0.8056

D) 0.9599

E) near 1.0000, or almost certain

Diff: 3

Topic: Project management techniques: PERT and CPM

AACSB: Analytic Skills

Objective: LO3-5

72) Which of these statements regarding time-cost tradeoffs in CPM networks is true?

A) Crashing is not possible unless there are multiple critical paths.

B) Crashing a project often reduces the length of long-duration, but noncritical, activities.

C) Activities not on the critical path can never be on the critical path, even after crashing.

D) Crashing shortens the project duration by assigning more resources to one or more of the critical tasks.

E) None of the above is true.

Diff: 2

Topic: Cost-time trade-offs and project crashing

Objective: LO3-6

73) Which of the following statements regarding time-cost tradeoffs in CPM networks is false?

A) "Project Crashing" shortens project duration by assigning more resources to critical tasks.

B) Crashing sometimes has the reverse result of lengthening the project duration.

C) Crashing must consider the impact of crashing an activity on all paths in the network.

D) Activities not on the critical path can become critical after crashing takes place.

E) All of the above are false.

Diff: 2

Topic: Cost-time trade-offs and project crashing

Objective: LO3-6

74) If an activity whose normal duration is 13 days can be shortened to 10 days for an added cost of $1,500, the crash cost per period is

A) $500

B) $1,500

C) $750

D) $13,000

E) $15,000

Diff: 2

Topic: Cost-time trade-offs and project crashing

AACSB: Analytic Skills

Objective: LO3-6

75) 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.

A) One; $400

B) One; $6,800

C) Two; $1,000

D) Two; $5,000

E) One or two should be crashed; $1,400

Diff: 2

Topic: Cost-time trade-offs and project crashing

AACSB: Analytic Skills

Objective: LO3-6

76) If an activity whose normal duration is 15 days can be shortened to 10 days for an added cost of $2,000, the crash cost per period is

A) $400

B) $2,000

C) $10,000

D) $20,000

E) $30,000

Diff: 2

Topic: Cost-time trade-offs and project crashing

AACSB: Analytic Skills

Objective: LO3-6

77) A network has been crashed to the point where all activities are critical. Additional crashing

A) is unnecessary

B) is impossible

C) is prohibitively expensive

D) may require crashing multiple tasks simultaneously

E) can be done, but all critical tasks must be reduced in duration

Diff: 2

Topic: Cost-time trade-offs and project crashing

Objective: LO3-6

78) 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.

A) B; $2,000

B) B; $8,000

C) C; $1,000

D) C; $2,000

E) C; $6,000

Diff: 2

Topic: Cost-time trade-offs and project crashing

AACSB: Analytic Skills

Objective: LO3-6

79) __________ is an organization formed to ensure that programs (projects) receive the proper management and attention.

Diff: 1

Topic: Project planning

Objective: no LO

80) __________ divides a project into more and more detailed components.

Diff: 2

Topic: Project planning

Objective: no LO

81) The __________ has established a code of ethics especially for project managers.

Diff: 1

Topic: Project planning

AACSB: Ethical Reasoning

Objective: no LO

82) __________ is a network technique using only one time factor per activity that enables managers to schedule, monitor, and control large and complex projects.

Diff: 1

Topic: Project management techniques: PERT and CPM

Objective: LO3-4

83) A diagram of all activities and the precedence relationships that exist between these activities in a project is a(n) __________.

Diff: 2

Topic: Project management techniques: PERT and CPM

Objective: LO3-2

84) The __________ is the computed longest time path(s) through a network.

Diff: 1

Topic: Project management techniques: PERT and CPM

Objective: LO3-4

85) The network analysis method that allows activity times to vary is __________.

Diff: 2

Topic: Project management techniques: PERT and CPM

Objective: LO3-5

86) __________ is the amount of time an individual activity in a network can be delayed without delaying the entire project.

Diff: 1

Topic: Project management techniques: PERT and CPM

Objective: LO3-4

87) The __________ distribution is appropriate for calculating expected activity times and activity variances in PERT networks.

Diff: 1

Topic: Project management techniques: PERT and CPM

Objective: LO3-5

88) __________ is decreasing activity time in a network to reduce time on the critical path so total completion time is reduced.

Diff: 1

Topic: Cost-time trade-offs and project crashing

Objective: LO3-6

89) What are the three phases of a project? Describe each in a sentence or two.

Diff: 2

Topic: The importance of project management

Objective: no LO

90) Identify the responsibilities of project managers.

Diff: 2

Topic: Project planning

Objective: no LO

91) What is a project organization?

Diff: 2

Topic: Project planning

Objective: no LO

92) Describe some of the challenges faced in the construction of the new 11-story building at Arnold Palmer Hospital in Orlando, Florida.

Diff: 2

Topic: Project controlling

Objective: no LO

93) What are some of the ethical issues faced by project managers? Which of these are likely to occur before a project begins, which are likely to occur while the project is underway, and which may occur after a project is complete? Illustrate any one of these from recent news.

Diff: 2

Topic: Project planning and project scheduling

AACSB: Ethical Reasoning

Objective: no LO

94) Identify and describe briefly each of the purposes of project scheduling.

Diff: 2

Topic: Project scheduling

Objective: no LO

95) What is the objective of critical path analysis?

Diff: 2

Topic: Project management techniques: PERT and CPM

Objective: LO3-4

96) Explain why the critical path is the longest, not the shortest, path through a network.

Diff: 2

Topic: Project management techniques: PERT and CPM

Objective: LO3-4

97) Define slack.

Diff: 2

Topic: Project management techniques: PERT and CPM

Objective: LO3-4

98) Identify, in order, the six steps basic to both PERT and CPM.

2. Develop the relationships among the activities.

3. Draw the network connecting all of the activities.

4. Assign the time and/or cost estimates to each activity.

5. Compute the critical path–the longest time path through the network.

6. Use the network to help plan, schedule, monitor, and control the project.

Diff: 2

Topic: Project management techniques: PERT and CPM

Objective: LO3-5

99) What is the basic difference between PERT and CPM?

Diff: 2

Topic: Project management techniques: PERT and CPM

Objective: LO3-5

100) PERT calculations typically include the duration variance of each activity. What is the purpose of this calculation–what's the role of variances in PERT analysis?

Diff: 2

Topic: Project management techniques: PERT and CPM

Objective: LO3-5

101) Describe the differences between a Gantt chart and a PERT/CPM network.

Diff: 2

Topic: Project management techniques: PERT and CPM

Objective: LO3-1

102) Briefly discuss what is meant by critical path analysis. What are critical path activities and why are they important?

Diff: 2

Topic: Determining the project schedule

Objective: LO3-4

103) What are the earliest activity start time and latest activity start time, and how are they computed?

Diff: 2

Topic: Determining the project schedule

Objective: no LO

104) How is the expected completion time of a project activity, and of a PERT project, computed?

Diff: 2

Topic: Determining the project schedule

Objective: LO3-5

105) Describe in words how to calculate a project's standard deviation. What assumption allows that calculation to be accurate?

Diff: 3

Topic: Variability in activity times

Objective: LO3-5

106) Briefly describe the concept of cost/time trade-off and how it is used.

Diff: 2

Topic: Cost-time trade-offs and project crashing

Objective: LO3-6

107) What are the advantages of using PERT and CPM?

Diff: 2

Topic: A critique of PERT and CPM

Objective: LO3-5

108) Consider the network pictured below.

a. Enumerate all paths through this network.

b. Calculate the critical path for the network.

c. What is the minimum duration of the project?

d. How much slack exists at each activity?

Diff: 2

Topic: Project management techniques: PERT and CPM

AACSB: Analytic Skills

Objective: LO3-4

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

a. Draw the network diagram.

b. Calculate the ES, EF, LS, LF, and Slack for each activity.

c. What is project completion time?

(b,c)

Diff: 2

Topic: Project management techniques: PERT and CPM

AACSB: Analytic Skills

Objective: LO3-3

110) The network below represents a project being analyzed by Critical Path Methods. Activity durations are A=5, B=2, C=12, D=3, E=5, F=1, G=7, H=2, I=10, and J=6.

a. What task must be on the critical path, regardless of activity durations?

b. What is the duration of path A-B-E-H-J?

c. What is the critical path of this network?

d. What is the length of the critical path?

e. What is slack time at activity H?

f. What is the Late Finish of activity H?

g. If activity C were delayed by two time units, what would happen to the project duration?

Diff: 2

Topic: Project management techniques: PERT and CPM

AACSB: Analytic Skills

Objective: LO3-4

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

a. Draw the network diagram.

b. Which activities form the critical path?

c. How much slack exists at activities A and F?

d. What is the duration of the critical path?

(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: 2

Topic: Project management techniques: PERT and CPM

AACSB: Analytic Skills

Objective: LO3-4

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

a. Calculate the expected time for each activity. Enter these values in the appropriate column in the table above.

b. Which activities form the critical path?

c. What is the estimated time of the critical path?

d. What are the project variance and the project standard deviation?

e. What is the probability of completion of the project after week 40?

(b) A-D-H-I-J-K; (c) 36.5; (d) 9.53, 3.09; (e) 0.13.

Diff: 2

Topic: Project management techniques: PERT and CPM

AACSB: Analytic Skills

Objective: LO3-4

113) Consider the network described in the table below.

a. Calculate the expected duration of each activity.

b. Calculate the expected duration and variance of the critical path.

c. Calculate the probability that the project will be completed in fewer than 30 time units.

Diff: 2

Topic: Project management techniques: PERT and CPM

AACSB: Analytic Skills

Objective: LO3-4

114) The network below represents a project being analyzed by Critical Path Methods. Activity durations are indicated on the network.

a. Identify the activities on the critical path.

b. What is the duration of the critical path?

c. Calculate the amount of slack time at activity H.

d. If activity I were delayed by ten time units, what would be the impact on the project duration?

Diff: 2

Topic: Project management techniques: PERT and CPM

AACSB: Analytic Skills

Objective: LO3-4

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

a. What is the crash cost per unit time for each of the three activities?

b. Which activity should be crashed first to cut one day from the project's duration; how much is added to project cost?

c. 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?

(b) select Y, adding $600; (c) select Z, adding $900

Diff: 2

Topic: Cost-time trade-offs and project crashing

AACSB: Analytic Skills

Objective: LO3-6

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

a. What is the crash cost per unit time for activity A?

b. What is the crash cost per unit time for activity B?

c. Which activity should be crashed first to cut one day from the project's duration; how much is added to project cost?

d. 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?

e. Assuming no other paths become critical, how much can this project be shortened at what total added cost?

Diff: 2

Topic: Cost-time trade-offs and project crashing

AACSB: Analytic Skills

Objective: LO3-6

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

a. Draw the network diagram.

b. Calculate the expected duration and variance of each activity.

c. Calculate the expected duration and variance of the critical path.

d. Calculate the probability that the project will be completed in less than 28 weeks.

(a)

(b,c)

(d) z = (28-22.5)/2.03 = 2.71, (P<=28) = .997

Diff: 2

Topic: Project management techniques: PERT and CPM

AACSB: Analytic Skills

Objective: LO3-5

118) Draw the AOA and AON networks for the following project and calculate the minimum project duration.

AOA

Minimum duration is the longest of the three paths, ADE, or a total of 19 days.

Diff: 2

Topic: Project management techniques: PERT and CPM

AACSB: Analytic Skills

Objective: LO3-2

119) Given the project within the table below calculate

a. The critical path

b. The minimum project duration

c. The amount of slack for each activity

(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: 2

Topic: Cost-time trade-offs and project crashing

AACSB: Analytic Skills

Objective: LO3-4

120) 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.

The critical path is ABCEFGH with a time of 34 hours. The cost per crash hour for these activities are 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

Topic: Cost-time trade-offs and project crashing

AACSB: Analytic Skills

Objective: LO3-6

121) Given the critical path below, calculate the following

a. The crash cost per unit time savings for each activity.

b. The maximum total crash time savings and cost.

c. The maximum total time-savings with a $3000 budget.

(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

Topic: Cost-time trade-offs and project crashing

AACSB: Analytic Skills

Objective: LO3-6

122) Consider the network presented in the following table. Calculate

a. All possible paths

b. The critical path

c. The slack available at any non-critical points

d. The minimum project duration

(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

Topic: Project management techniques: PERT and CPM

AACSB: Analytic Skills

Objective: LO3-4