Test Bank for Operations and Supply Chain Management for the 21st Century 1st Edition by Boy

Test Bank for Operations and Supply Chain

Management for the 21st Century 1st Edition by
Boyer

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Chapter 8--Project Management

Student: ___________________________________________________________________________

1. A project is normally limited in time, budget, and resources.

True False

2. Projects generally have a specific beginning and ending time.

True False

3. Because projects are limited in time, budgeting, and resources, they generally have very little risk involved.
True False

4. It is normally sufficient for a Project manager to have expertise in human resources and leave other areas to
subordinates.
True False

5. The project plan reports estimated costs and cash flow requirements at different project stages.
True False

6. The project execution phase of project management involves the actual completion of all activities that are
part of the project.
True False

7. Three major project constraints are time, scope, and cost.

True False

8. Time, scope, and cost are positively correlated in project management.

True False
9. A precedence relationship analysis identifies the sequence of activities defined by a work breakdown
structure.
True False

10. Since the introduction of computer software, Gantt charts are obsolete in project management.
True False

11. Visual techniques, such as precedence diagrams and Gantt charts, add little value to project management.
True False

12. The activity on node (AON) approach to designing a network diagram illustrates activities by the use of an
arrow.
True False

13. Industry uses both AON and AOA for designing network diagrams.
True False

14. In an AON network diagram, arrows can point to any direction from a node.
True False

15. The path in a network diagram with the most activities is the critical path.
True False

16. The binding constraint path dictates the project's duration.

True False

17. In project management, "critical activities" are activities that quality managers must be involved with.
True False

18. Using CPM, any activity with no predecessors can start as soon as the project is initiated.
True False
19. Slack time can only be calculated by finding the difference in the late start and early start.
True False

20. The difference in the early start and the early finish is the slack time.
True False

21. Activities with zero slack are critical activities.

True False

22. Additional resources can rarely be used to speed up a project once it is behind schedule.
True False

23. Any activity that has not been completed is a candidate for a cost and time trade-off analysis.
True False

24. The goal of crashing a project is to reduce the time at the least expensive rate.
True False

25. In a PERT analysis, the "most likely time" is the minimum possible time required to complete an activity.
True False

26. Managers can do very little to prevent a project from failing.

True False

27. A contingency plan should be developed for potential problems.

True False

28. Clear and measurable goals help projects to succeed.

True False
29. The only significant risk involved in project management is financial risk.
True False

30. A project risk assessment plan involves developing a comprehensive list of all potential problems that might
hinder project completion.
True False

31. Which of the following examples is not considered a project?

A. Building the great wall of China
B. Building the Panama Canal
C. Managing the 2008 Olympics
D. Producing 2009 Dodge Rams
E. Filming a made-for-TV movie

32. Projects generally have all the following characteristics except

A. A well-defined goal
B. A specified beginning
C. A specified ending time
D. A specified budget
E. A repeated process

33. Which of the following terms does not describe a project management technique?
A. CPM
B. Uncertainty analysis
C. Cost and time trade-off analysis
D. Resource allocation techniques
E. Process selection team

34. Being an expert in information integration, project scope, time management, quality management, human
resources, communications, risk, and procurement are beneficial skills for what member of a project
management team?
A. Project planner
B. Project sponsor
C. Project manager
D. Project accountant
E. Project auditor
35. Which of the following relationships between cost, time, and scope is not realistic?
A. Increased scope, decreased cost, and decreased time
B. Increased scope, increased cost, and increased time
C. Decreased time, increased cost, and decreased scope
D. Decreased cost, decreased time, and decreased scope
E. All of these options are realistic

36. Which of the following is not a project management tool?

A. Work breakdown structure (WBS)
B. Precedence analysis
C. Gantt chart
D. Activity ordering analysis (AOA)
E. Network diagram

37. Which of the following statements accurately describes the following Gantt chart?

Activity Week Week Week Week Week Week Week Week Week Week
1 2 3 4 5 6 7 8 9 10
A
B
C
D
E
F
G
H
I

A. Activity I cannot begin until Activities C and E are complete

B. Activity E cannot begin until Activities B and D are complete
C. The longest task will take 5 weeks
D. The project can be done in less than 10 weeks
E. Activity E is not needed in the Gantt chart

38. A network diagram is used to show what?

A. Crashing costs
B. Precedence relationships
C. Human resource assignments
D. Equipment allocation
E. All of these options
39. Which of the following is not true about network diagrams?
A. Activities can be shown on the arrow
B. Activities can be shown on the nodes
C. An activity can have more than one predecessors
D. Movement from one activity to another can go forward or backward
E. Starting activities have no predecessors

40. Which is true about the critical path?

A. It is the longest network path
B. It has the most activities
C. It has the most risk
D. It has the highest quality implications
E. It can be crashed the most

41. Which is not true about an activity in a network diagram?

A. Each activity has four parameters
B. Every activity has slack
C. Activity duration times are assumed to be know exactly
D. Delaying activities on the critical path delay the project
E. Noncritical activities have slack

42. Activity 7 is directly preceded by two activities, activity 5 and activity 6. Activity 5 has an expected time of
5 and ES time of 6. Activity 6 has an expected time of 7 and an ES time of 7. Activity 7 has an expected time of
10. The ES for activity 7 is
A. 10
B. 11
C. 14
D. 21
E. 24

43. For an activity, the ES is 0, the EF is 2, the LS is 3, and the LF is 5. What is the slack?
A. 0
B. 2
C. 3
D. 5
E. 8
44. This is zero for all of the first activities on a CPM network diagram.
A. Slack
B. Late start
C. Late finish
D. Early start
E. Early finish

45. The amount of leeway each activity has in its starting time and duration without delaying the project.
A. Standard time
B. Normal time
C. Crash time
D. Slack time
E. Critical time

46. Which project management tool introduces uncertainty into the project planning process?
A. CPM
B. Work breakdown structure
C. Precedence relationships
D. Network diagram
E. PERT

47. Which of the following is not a time estimate used in PERT?

A. Critical time
B. Optimistic time
C. Pessimistic time
D. Most likely time
E. Expected time

48. When computing the expected time for a project, which time estimate is weighted the most?
A. Critical time
B. Optimistic time
C. Pessimistic time
D. Most likely time
E. Expected time
49. Using PERT, the project completion time closely resembles what distribution?
A. Uniform distribution
B. Poisson distribution
C. Normal distribution
D. Negative binomial distribution
E. Variance distribution

50. Which is not a general risk category for project management?

A. Financial resource risk
B. Supply risk
C. Human resources risk
D. Quality risk
E. Management risk

51. The critical factors in project failure include all of the following except
A. Change in initial project expectations
B. Change in complexity
C. Change in technical difficulties
D. Change in regulatory problems
E. Change in personnel

52. Project risk can be grouped into four categories. Which of the following is not one of the categories?
A. Severity
B. Probability
C. Timing
D. Dynamic risk
E. Personnel

53. The percentage of the project's scope that will be affected by a problem defines which project risk
classification?
A. Severity
B. Probability
C. Timing
D. Dynamic risk
E. Personnel
54. Which of the following is not a reason projects succeed?
A. Strong project leadership
B. Clear, measurable goals
C. Declining material prices
D. Well-defined implementation plan
E. A sense of urgency

55. An approach to reduce the amount of fluctuations in day-to-day resource requirements within an
organization is
A. Contingency planning
B. Project risk management
C. Resource management
D. Resource breakdown structure
E. Resource leveling

56. List five PRIMARY characteristics of a project.

57. List three project management techniques used by corporations or government.

58. List and briefly describe three of the six project planning documents described in the text.
59. Describe the time, cost, and scope constraints related to project management and discuss how they are
related.

60. Describe CPM and the critical path.

61. Identify and describe the four parameters used to calculate the critical path for CPM.

62. Identify and describe the three different estimates for activity times in the PERT method.
63. Identify four broad categories of risk associated with projects.

64. Identify five of the critical factors in project failure.

65. Identify and describe how leadership can impact project success.
66. List the paths for the following network diagram and determine the duration of the project.
67. Determine the amount of slack in each activity.

68. An activity with a duration of 8 days has an early start time of 25. Another activity has a duration of 5 days
and an early start time of 25 days. Both activities precede activity M. Activity M has a duration of 4 days. What
is the early start time for activity M?
69. All the following activities are on the critical path. If the project needs to be reduced by 3 days, and no other
paths become shorter than the current critical path, which activities should be crashed and in what order? What
is the total cost of crashing?

Activity Activity Time (in Total Cost

weeks)
Normal
A 16
B 14
C 5
D 8
E 4
F 6
G 15
H 10
to Crash
Crash
8 $2,400
9 $800
4 $700
6 $200
2 $400
4 $800
10 $3,000
7 $1,500

70. If an activity has an optimistic time of 5 days, a pessimistic time of 10 days, and a most likely time of 8
days, what is the expected time for the activity?

71. If an activity has an optimistic time of 5 days, a pessimistic time of 10 days, and a most likely time of 8
days, what is the variance for the activity?
72. If a project has an expected completion time of 40 days, with a standard deviation of 2 days, what is the
amount of time this project will be completed in, 95% of the time?

73. Draw a network diagram using the AON convention for the following project.
Activity A has a duration of 4 days and no predecessor.
Activity B has a duration of 2 days and has A as a predecessor.
Activity C has a duration of 2 days and has A as a predecessor.
Activity D has a duration of 3 days and has B as a predecessor.
Activity E has a duration of 4 days and has C as a predecessor.
Activity F has a duration of 1 day and has D and E as predecessors.

74. Compute the slack for the following project.

Activity A has a duration of 4 days and no predecessor.
Activity B has a duration of 2 days and has A as a predecessor.
Activity C has a duration of 2 days and has A as a predecessor.
Activity D has a duration of 3 days and has B as a predecessor.
Activity E has a duration of 4 days and has C as a predecessor.
Activity F has a duration of 1 day and has D and E as predecessors.
75. Activity C is directly preceded by two activities, activity A and activity B. Activity A has an expected time
of five and early start time of six. Activity B has an expected time of seven and an early start time of seven.
Activity C has an expected time of ten. What is the early start for activity C?
Chapter 8--Project Management Key

1. A project is normally limited in time, budget, and resources.

TRUE

2. Projects generally have a specific beginning and ending time.

TRUE

3. Because projects are limited in time, budgeting, and resources, they generally have very little risk involved.
FALSE

4. It is normally sufficient for a Project manager to have expertise in human resources and leave other areas to
subordinates.
FALSE

5. The project plan reports estimated costs and cash flow requirements at different project stages.
FALSE

6. The project execution phase of project management involves the actual completion of all activities that are
part of the project.
TRUE

7. Three major project constraints are time, scope, and cost.

TRUE

8. Time, scope, and cost are positively correlated in project management.

FALSE
9. A precedence relationship analysis identifies the sequence of activities defined by a work breakdown
structure.
TRUE

10. Since the introduction of computer software, Gantt charts are obsolete in project management.
FALSE

11. Visual techniques, such as precedence diagrams and Gantt charts, add little value to project management.
FALSE

12. The activity on node (AON) approach to designing a network diagram illustrates activities by the use of an
arrow.
FALSE

13. Industry uses both AON and AOA for designing network diagrams.
TRUE

14. In an AON network diagram, arrows can point to any direction from a node.
FALSE

15. The path in a network diagram with the most activities is the critical path.
FALSE

16. The binding constraint path dictates the project's duration.

TRUE

17. In project management, "critical activities" are activities that quality managers must be involved with.
FALSE

18. Using CPM, any activity with no predecessors can start as soon as the project is initiated.
TRUE
19. Slack time can only be calculated by finding the difference in the late start and early start.
FALSE

20. The difference in the early start and the early finish is the slack time.
FALSE

21. Activities with zero slack are critical activities.

TRUE

22. Additional resources can rarely be used to speed up a project once it is behind schedule.
FALSE

23. Any activity that has not been completed is a candidate for a cost and time trade-off analysis.
FALSE

24. The goal of crashing a project is to reduce the time at the least expensive rate.
TRUE

25. In a PERT analysis, the "most likely time" is the minimum possible time required to complete an activity.
FALSE

26. Managers can do very little to prevent a project from failing.

FALSE

27. A contingency plan should be developed for potential problems.

TRUE

28. Clear and measurable goals help projects to succeed.

TRUE
29. The only significant risk involved in project management is financial risk.
FALSE

30. A project risk assessment plan involves developing a comprehensive list of all potential problems that might
hinder project completion.
TRUE

31. Which of the following examples is not considered a project?

A. Building the great wall of China
B. Building the Panama Canal
C. Managing the 2008 Olympics
D. Producing 2009 Dodge Rams
E. Filming a made-for-TV movie

32. Projects generally have all the following characteristics except

A. A well-defined goal
B. A specified beginning
C. A specified ending time
D. A specified budget
E. A repeated process

33. Which of the following terms does not describe a project management technique?
A. CPM
B. Uncertainty analysis
C. Cost and time trade-off analysis
D. Resource allocation techniques
E. Process selection team

34. Being an expert in information integration, project scope, time management, quality management, human
resources, communications, risk, and procurement are beneficial skills for what member of a project
management team?
A. Project planner
B. Project sponsor
C. Project manager
D. Project accountant
E. Project auditor
35. Which of the following relationships between cost, time, and scope is not realistic?
A. Increased scope, decreased cost, and decreased time
B. Increased scope, increased cost, and increased time
C. Decreased time, increased cost, and decreased scope
D. Decreased cost, decreased time, and decreased scope
E. All of these options are realistic

36. Which of the following is not a project management tool?

A. Work breakdown structure (WBS)
B. Precedence analysis
C. Gantt chart
D. Activity ordering analysis (AOA)
E. Network diagram

37. Which of the following statements accurately describes the following Gantt chart?

Activity Week Week Week Week Week Week Week Week Week Week
1 2 3 4 5 6 7 8 9 10
A
B
C
D
E
F
G
H
I

A. Activity I cannot begin until Activities C and E are complete

B. Activity E cannot begin until Activities B and D are complete
C. The longest task will take 5 weeks
D. The project can be done in less than 10 weeks
E. Activity E is not needed in the Gantt chart

38. A network diagram is used to show what?

A. Crashing costs
B. Precedence relationships
C. Human resource assignments
D. Equipment allocation
E. All of these options
39. Which of the following is not true about network diagrams?
A. Activities can be shown on the arrow
B. Activities can be shown on the nodes
C. An activity can have more than one predecessors
D. Movement from one activity to another can go forward or backward
E. Starting activities have no predecessors

40. Which is true about the critical path?

A. It is the longest network path
B. It has the most activities
C. It has the most risk
D. It has the highest quality implications
E. It can be crashed the most

41. Which is not true about an activity in a network diagram?

A. Each activity has four parameters
B. Every activity has slack
C. Activity duration times are assumed to be know exactly
D. Delaying activities on the critical path delay the project
E. Noncritical activities have slack

42. Activity 7 is directly preceded by two activities, activity 5 and activity 6. Activity 5 has an expected time of
5 and ES time of 6. Activity 6 has an expected time of 7 and an ES time of 7. Activity 7 has an expected time of
10. The ES for activity 7 is
A. 10
B. 11
C. 14
D. 21
E. 24

43. For an activity, the ES is 0, the EF is 2, the LS is 3, and the LF is 5. What is the slack?
A. 0
B. 2
C. 3
D. 5
E. 8
44. This is zero for all of the first activities on a CPM network diagram.
A. Slack
B. Late start
C. Late finish
D. Early start
E. Early finish

45. The amount of leeway each activity has in its starting time and duration without delaying the project.
A. Standard time
B. Normal time
C. Crash time
D. Slack time
E. Critical time

46. Which project management tool introduces uncertainty into the project planning process?
A. CPM
B. Work breakdown structure
C. Precedence relationships
D. Network diagram
E. PERT

47. Which of the following is not a time estimate used in PERT?

A. Critical time
B. Optimistic time
C. Pessimistic time
D. Most likely time
E. Expected time

48. When computing the expected time for a project, which time estimate is weighted the most?
A. Critical time
B. Optimistic time
C. Pessimistic time
D. Most likely time
E. Expected time
49. Using PERT, the project completion time closely resembles what distribution?
A. Uniform distribution
B. Poisson distribution
C. Normal distribution
D. Negative binomial distribution
E. Variance distribution

50. Which is not a general risk category for project management?

A. Financial resource risk
B. Supply risk
C. Human resources risk
D. Quality risk
E. Management risk

51. The critical factors in project failure include all of the following except
A. Change in initial project expectations
B. Change in complexity
C. Change in technical difficulties
D. Change in regulatory problems
E. Change in personnel

52. Project risk can be grouped into four categories. Which of the following is not one of the categories?
A. Severity
B. Probability
C. Timing
D. Dynamic risk
E. Personnel

53. The percentage of the project's scope that will be affected by a problem defines which project risk
classification?
A. Severity
B. Probability
C. Timing
D. Dynamic risk
E. Personnel
54. Which of the following is not a reason projects succeed?
A. Strong project leadership
B. Clear, measurable goals
C. Declining material prices
D. Well-defined implementation plan
E. A sense of urgency

55. An approach to reduce the amount of fluctuations in day-to-day resource requirements within an
organization is
A. Contingency planning
B. Project risk management
C. Resource management
D. Resource breakdown structure
E. Resource leveling

56. List five PRIMARY characteristics of a project.

A well-defined goal or objective

Composed of a set of interrelated activities
A specified beginning and ending time
Specified resource and personnel requirements
A specified budget
Uniqueness

57. List three project management techniques used by corporations or government.

Critical path method

Uncertainty analysis
Cost and time trade-off analysis
Resource allocation techniques
58. List and briefly describe three of the six project planning documents described in the text.

Project plan¾outlines the activities, their interdependencies, and time estimates.

Resource plan¾lists the labor, equipment, other resources, components, and raw materials required to complete
the project activities. The quantities of different resources required during different project stages are estimated.

Financial plan¾reports estimated costs and cash flow requirements at different project stages.

Quality plans¾provides details on quality targets, control, and potential improvement measures.

Communications plan¾includes updates on project status relative to schedule, which needs to be communicated
to key stakeholders.

Risk plan¾provides an assessment of potential risks and uncertainties, and actions that might be necessary to
overcome the challenges.

59. Describe the time, cost, and scope constraints related to project management and discuss how they are
related.

Project time¾refers to the amount of time available to complete a project

Project cost¾refers to the budgeted amount available for the project
Project scope¾refers to what must be done to achieve a project's end goal

These three constraints are interrelated and are negatively correlated: for example, an increased scope typically
means increased time and increased cost, a short time constraint could mean increased costs and reduced scope,
and a limited budget could mean increased time and reduced scope.

60. Describe CPM and the critical path.

The critical path method is an algorithm for scheduling the activities within a project to achieve the fastest and
most efficient execution of that project. The critical path is the path that takes the longest time to complete.
61. Identify and describe the four parameters used to calculate the critical path for CPM.

Early start time (ES): the earliest time at which an activity can start, considering the beginning and ending times
for each of the preceding activities.

Early finish time (EF): the sum of the early start time (ES) and the time required to complete the activity.

Late start time (LS): the latest time at which an activity can start, considering all the precedence relationships,
without delaying the completion time for the project.

Late finish time (LF): the sum of the late start time and the time required to complete the activity.

62. Identify and describe the three different estimates for activity times in the PERT method.

Optimistic time (to): the minimum possible time required to complete an activity, assuming that everything
proceeds better than is normally expected.

Pessimistic time (tp): the maximum possible time required to complete an activity, assuming that everything
proceeds at the slowest possible pace.

Most likely time (tm): the best estimate of the time required to accomplish a task, assuming that everything
proceeds normally.

63. Identify four broad categories of risk associated with projects.

Financial resource risk, such as cash overruns, budget shortfalls, and cash flow problems

Human resource risk, such as changes in project personnel

Supply risk, such as suppliers not providing the required materials on time

Quality risk, or the possibility that the quality of individual tasks gets compromised when trying to keep up with
the project schedule
64. Identify five of the critical factors in project failure.

1. Change in initial project expectations

2. Change in the overall project importance to the organization
3. Change in the need for the project by the organization
4. Change in overall complexity
5. Change in overall time to completion
6. Change in user needs
7. Change in technical difficulties
8. Change in regulatory problems
9. Internal politics within the organization
10. Change in commitment by project champion

65. Identify and describe how leadership can impact project success.

Successful execution of a project requires a strong project leadership. The project manager must focus on
meeting the three constraints: scope, time, and budget. A successful project means that all deliverables are
completed on time, within budget, and at a level of quality that is acceptable to the project's sponsors and
stakeholders.

66. List the paths for the following network diagram and determine the duration of the project.

ABEF: 23
ABDEF: 29
ACDEF: 31
The project duration will be 31 days.
67. Determine the amount of slack in each activity.

Activity A: 0 days slack

Activity B: 2 days slack
Activity C: 0 days slack
Activity D: 0 days slack
Activity E: 0 days slack
Activity F: 0 days slack

68. An activity with a duration of 8 days has an early start time of 25. Another activity has a duration of 5 days
and an early start time of 25 days. Both activities precede activity M. Activity M has a duration of 4 days. What
is the early start time for activity M?

The first activity will have an early finish time of 33, and the other activity will have an early finish time of 30.
Activity M cannot begin while either activity is still being conducted, so it can start at time 33.

69. All the following activities are on the critical path. If the project needs to be reduced by 3 days, and no other
paths become shorter than the current critical path, which activities should be crashed and in what order? What
is the total cost of crashing?

Activity Activity Time (in Total Cost

weeks)
Normal
A 16
B 14
C 5
D 8
E 4
F 6
G 15
H 10
to Crash
Crash
8 $2,400
9 $800
4 $700
6 $200
2 $400
4 $800
10 $3,000
7 $1,500
Activity Activity Time (in Total Cost Crash Cost
weeks) to Crash per week
Normal Crash
A 16 8 $2,400 300
B 14 9 $800 160
C 5 4 $700 700
D 8 6 $200 100
E 4 2 $400 200
F 6 4 $800 400
G 15 10 $3,000 600
H 10 7 $1,500 500

Activity D should be crashed a week for $100, then another week for $100, and finally Activity B should be crashed a week for $160. The total cost
would be $360.

70. If an activity has an optimistic time of 5 days, a pessimistic time of 10 days, and a most likely time of 8
days, what is the expected time for the activity?

Expected time for the activity = (5 + (4 * 8) + 10)/6 = 7.83 days

71. If an activity has an optimistic time of 5 days, a pessimistic time of 10 days, and a most likely time of 8
days, what is the variance for the activity?

Activity variance = ((10 - 5)/6)^2 = 0.69

72. If a project has an expected completion time of 40 days, with a standard deviation of 2 days, what is the
amount of time this project will be completed in, 95% of the time?

The z-score for 95% is 1.645.

The number of days for completion, 95% of the time, is (1.645*2) + 40 = 43.29 days
73. Draw a network diagram using the AON convention for the following project.
Activity A has a duration of 4 days and no predecessor.
Activity B has a duration of 2 days and has A as a predecessor.
Activity C has a duration of 2 days and has A as a predecessor.
Activity D has a duration of 3 days and has B as a predecessor.
Activity E has a duration of 4 days and has C as a predecessor.
Activity F has a duration of 1 day and has D and E as predecessors.
Test Bank for Operations and Supply Chain Management for the 21st Century 1st Edition by Boy

74. Compute the slack for the following project.

Activity A has a duration of 4 days and no predecessor.
Activity B has a duration of 2 days and has A as a predecessor.
Activity C has a duration of 2 days and has A as a predecessor.
Activity D has a duration of 3 days and has B as a predecessor.
Activity E has a duration of 4 days and has C as a predecessor.
Activity F has a duration of 1 day and has D and E as predecessors.

Activity A slack = 0 - 0 = 0
Activity B slack = 5 - 4 = 1
Activity C slack = 4 - 4 = 0
Activity D slack = 7 - 6 = 1
Activity E slack = 6 - 6 = 0
Activity F slack = 10 - 10 = 0

75. Activity C is directly preceded by two activities, activity A and activity B. Activity A has an expected time
of five and early start time of six. Activity B has an expected time of seven and an early start time of seven.
Activity C has an expected time of ten. What is the early start for activity C?

Activity A, early finish is 6 + 5 = 11.

Activity B, early finish is 7 + 7 = 14.
The early start for Activity 7 is the larger of the two early finish times; so the time is 14.

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