ee) Project Management Questions Latest Project Management MCQ Obje: CER ABR he lial RI a eon Start Complete Exam Preparation jon Bank Ext Pann ee panocas Clits { Download App Question 1: View this Question Online > The Delta model was created by 1. Dean Wilde and Arnaldo Hax 2. Micheal Porter 3. JJuran 4, Phillip Crossby ‘Answer (Detailed Solution Below) Option 1: Dean Wilde and Amoldo Haxcoaching acoder govt. exams Under One Roof FREE) Demo Classes Available ad Project Management Question 1 Detailed Solution ‘The Correct answer is Dean Wilde and Arnoldo Hax. © Key Points + The Delta Model, named after the Greek letter “Delta” symbolizing transformation and change, is a strategic management approach centered on customers. + In contrast to the traditional focus on product characteristics (product economics), this model places emphasis on consumer economics. + Its objective is to establish a robust connection between a company and its customers, as well as its complementary (other products and services within the same business ecosystem), + Dean Wilde and Amoldo Hax developed this customer-centric model. + It originated during discussions among MIT alumni. * The Delta Model has sparked extensive research into the factors that drive long-term profitability for businesses. © Additional information + The Delta Model can be visualized through the Strategic Triangle, comprising three key points: + System Lock-in: ® This point aims for market dominance and achieving complement share. @ Itshifts the focus from product-centered economics to broader system economics, making it highly sustainable. @ system Lock-in ensures that customers become deeply integrated With the entire system. - Best Customer Solutions: © This point emphasizes cooperation and seeks to attain customer share. @ By providing tailored solutions that precisely meet customer needs, a company can secure a strong customer base. + Best Product: @ This point focuses on creating @ s product that outperforms competitors, @ Having the best product can lead to increased market share by attracting customers seeking top-quality o*feExclusive Channel a ery cen Breadth brea Total ‘Customer Solutions —Sedstniny customer Ditterentiaton ‘he Cstoner integration eee seen eel are Dar c eet Start Complete Exam Preparation Poti et Download App Question 2: View this Question Online > Which of the following is NOT one of the objectives of Liberalisation? 1. To develop a global market for a country 2. To promote foreign trade and regulatélimports and Boris 3. To boost competition between domestic comes 4. To mitigate the effects of the technology and foreign capital -_ of the above Answer (Detailed Solution Below)Option 4: To mitigate the effects of the technology and foreign capital Project Management Question 2 Detailed Solution The correct answer is To mitigate the effects of technology and foreign capital. © seyPoints + Liberalisation © The phrase “liberalisation” refers to the removal of limitations on a range of private individual activities, frequently related to the economy. + Commonly, it refers ta 2 government removing constraints it had previously put on economic or social policy. India's economic reform was aided by its 1985 balance of payments cri © Due to the crisis, the nation was unable to cover both its debt obligations and necessary imports. G » Liberalization in India was started by ministers like Atal Bihari Vajpayee, Manmohan Singh, and P.V. Narasimha Rao. % = ° Objectives of Liberalisation ® To address the growing balance of payment crisis in India To increase the private sector's involvement in the growth of India’s economy. To boost the amount of foreign investment made in Indian enterprises. To encourage domestic Indian corporate competitiveness. To encourage domestic and international businesses to grow in order to maximise India’s economi 1 To help the Indian economy transition to a global economy. To control import: m8 encourage international trade. EB ee, fe 5 + Although there had been unsuccessful attempts in 1966 and 1980, India’s liberalisation project ultimately took off in 1991 * The idea of economic liberalisation was adopted in India in order to achieve a number of goals, including industrialisation, a greater role for private and international investment, and the establishment of a free market economy. + A number of important industries that were previously only accessible to the public sector have reduced their restrictions for private companies + After the introduction of liberalisation, India experienced the following improvemen + All prohibitive barriers to international investing were eliminated, © In India and other large countries, capital flowed unrestrictedly. * Ever since the economy was liberalised, the Indian stock market has increased. » Politics-related dangers decreased. © The investors were spread out.Start Complete Exam Preparation Pan Dosey Download App Question 3: View this Question Online = Which of tlie follwing is said to be an external risk factor for an entrepreneur? (MA tisk 2. innovation risk 3. Strategic risk 4. None of the above 5. More than one of the above. Answer (Detailed Solution Below) Option 1: Employee risk Project Management Question 3 Detailed Solution External Risk Factors: External risks often include economic events that arise from outside the corporate structure. External events that lead to external risk eghnet be Controlled by a company or cannot be forecasted with a high level of reliability. Following are the types of ae factors include economic factors, natural factors, and political 1. Economic Risk: Economic risk includes changes in market conditions. 2. Natural Risk: Natural risk factors include natural disasters (such as earthquakes, floods, etc) 3. Political Risk: Political risk is comprised of changes in the political environment or governmental policy that relate to financial affairs. Changes in import and export laws, tariffs, texes, and otherER rene er sre een EEE, NOI SRE INT Teer ne nee Oe EET ae 4. Technological Risk: This faces obstacles to growth performance due to the lack of technological mastery, lack of human resources, no focus on business, and impartial government policies. A Ce ae Reh) Start Complete Exam Preparation Ree ar eo rated es laced ore ad ead a Download App cele Question 4: View this Question Online > Match List I with List II UsTI LusTI (Project Network - . ( gece (Underlying meaning) Length of the longest path hrough the project network lit shows the time and cost when], he activity is fully crashed It consists of a number of node: |C.Icritical path ltiJand a number of arcs that IB. Project Network IL [Taking special (costly) measures [D.[crash point IV to reduce the duration of an [activity below its normal value Choose the correct answer from the options given below: Wetec 2. A-IV,B-lll,C-1,D-1 3. A-IV,B-lll,C-1,D-1 4. A-Ill, B-,C-1V,D-1lAnswer (Detailed Solution Below) Option 2: A- IV, B- Ill, C-1,D =I Project Management Question 4 Detailed Solution The correct answer is A- IV, B- Ill, C-1, D-II. © Key Points The correct sequence is: A. Crashing an activity - IV. Taking special (costly) measures to reduce the duration of an activity below its normal value f $ Crashing an activity refers to the process of shortening the duration of an activityin.a project. It involves taking special measures, which can be costly, to expedite the completion of the activity. These measures may include adding more resources, working overtime, of using specialized equipment to accelerate the work. Crashing an activity allows for a shorter overall project duration but often comes with additional costs. a B. Project Network - Il. It consists of a number of nodes and a number of arcs that connect two different nodes A project network is a graphical represei of the activities and their dependencies within a project. It consists of nodes, which repr activities, and arcs, which connect the nodes to show the logical sequence and dependencies between the activities. The project network helps visualize the flow of work and the relationships among activities, aiding in project planning, scheduling, and monitoring. C. Critical path - |. Length of the longest path through the project network The critical path in a project network is the longest path from the project's start to its end. It determines the minimum amount of time required to complete the project. Any delay in activities along the critical path will directly impact the overall project timeline. Identifying the critical path is essential for project scheduling and resource allocation, as it helps in prioritizing activities that are cttical for the project's timely completion. D. Crash point - Il. It shows the time and cost when the activity is fully crashed The crash point represents the time and cost associated with fully crashing an activity in a project. Fully crashing an activity means reducing its duration to the shortest possible time by applying all available resources and measures. The crash point helps in evaluating the impact of crashing activities on project timelines and costs. It provides insights into the trade-offs between time and cost when accelerating specific activities in a project. Hence, the correct answer is A - IV, B - Ill, C- |, D- Il. & eee en ace eC aE cat Start Complete Exam PreparationPtr Download App Question 5: View this Question Online > What are the characteristics of job shop production ? A. Different product types are produced B. Very large quantities are produced C. Single type of product is produced D. Low quantities of product are produced 1. AandB —_ 2.0C and-D ~: Band C 4. AandD Answer (Detailed Solution Below) Option 4: A and D Project Management Question 5 Detailed Solution Explanation: Job - shop production + Job — shop production is characterized by the manufacturing of a large variety of products in small quantities that are designed and produced as per specifications are given by customers + The main feature of this production system is that it is highly flexible + A shop ~ shop comprises general-purpose machines arranged in different departments + Example — Manufacture of aeroplanes and cil field equipment, machine tools, giant hydro turbine, rolling mills, and other heavy equipmentBatch production * Batch production is a type of production in which the job passes through the functional departments in batches and each batch may have a different routing + Batch production is characterized by the manufacture and stocking of a limited number of products at regular intervals, awaiting sales + Example - Machine tools, pumps, compressors, stationary IC engines, ete. Mass production * In mass production, the same type of product is manufactured to meet the continuous demand of the product + Manufacturing of discrete x in a very large volume is called mass i production + Machines are arranged in a line accor the sequence of operations on the product + Example - Nuts, bolts, screws, washers, pencils, matches, engine blocks, bicycles, electric motors, sewing machines, tractors, etc. Job-shop & production 3 Batch o production 5 = Mass z production 5 Continuos | production Volume of production Types of production systems Top Project Management MCQ Objective Questions re eee ee iac eRe Start Complete Exam Preparation Weaucy a Sr Crete CI torre reDownload App Question 6 View this Question Online > Planning is offen called the primary management function because it: Ma. vision for the organizational members 2. Sets the tone for the organizational culture 3. Establishes the basis for all the other functions 4. Offers some basis for future decision making Answer (Detailed Solution Below) Option 3: Establishes the basis for all the other functions Project Management Question 6 Detailed Solution The correct answer is Establishes the basis for all the other functions. + Planning Is often called the primary management function because it establishes the basis for all the other functions. © Key Points + The management process consists of four primafy functions that managers must perform: > planning “ay = leading > controlling + Planning is often called the primary management function: = Planning means defining performance goals for the organization and determining what actions and resources are needed to achieve the goals. + Through planning, management defines what the future of the organization should be and how to get there = It establishes the basis for all the other functions * A strategic plan bridges the gap between what an organization is and what it will» A tactical plan defines what has to be done, who will do it, and the resources needed to do it. Eee Eee) Start Complete Exam Preparation RCo roe tr Pea Practice ad era Download App ‘Question 7 View this Question Online > Crashing is 1. Abandoning the project, 2. Completing'the prdject with all possible haste 3. Red p of duration for a few of the activities 4. Reducing the cost of the project with all needful modifications Answer (Detailed Solution Below) Option 2: Reduction of duration for a few of the acti Project Management Question 7 Detailed Solution Explanation: Crashing is the method for shortening the projectlutatioh by reducing the time of one or more critical activities to less than their normal time. In crashing if cost increases then time decreases. Minumum cos! | optimal project time _Tétal projeét’costs Cost \— 4 '/ Indirect costtest. Direct cost 4 Time +— Crashing project duration GR ABR Uke) CORR roa Start Complete Exam Preparation Mock Te Download App Question 8 View this Question Online > The application of Special purpose material handling equipment is: 1. Both ‘Process layout’ and ‘ Line layout’ 2. Process layout 3. Line layout 4. None of these Asie (Detailed Solution Below) Option 3: Line layout Project Management Question 8 Detailed Solution The special-purpose material handling equipment is used in the line layout. Line layout is also known as product layout. Process Layout: The process layout is recommended for batch production. All machines performing a similar type of operation are grouped at one location in the process layout e.g, all lathes, milling machines, etc.Ee ee ee Ne a Re ee ame eT Zs | * Ky 1 EK & 5 t Process Layout showing product movements 1. Store room, 2. Inspection Department, 3. Broaching Section, 4. Miling Section 5, Lathe Section, 6. Shaper Section, 7. Drill Section, 8. Stock room| Process layout is normally used when the production volute isnot Sufficient to justify a product layout. Product Layout: It is also known as line layout. In im st varleus operations on raw material are performed ina sequence and the machines are plac ‘the product flow line i.e. machines are arranged in the sequence in which the raw material will be operated upon. This type of layout is preferred for continuous production i.e. involving a continuous flow of in- process material towards the finished product stage. Lathe Mil ~ Drill . Drill, }[Grinder > Lathe Mil A Simple product layout {1-2 Hosa Ha INPUT FINAL OUTPUT India's #1 Learning Platform ORT Dan tect Start Complete Exam Preparation cies oe abou Coli ieste eae Download App Question 9 View this Question Online > Who has invented the SWOT analysis?1, Albert S. Humphrey 2. Peter Pyhrr 4, Peter Drucker Answer (Detailed Solution Below) Option 1: Albert S. Humphrey Project Management Question 9 Detailed Solution The correct answer is Albert s Humphery oO Key Points + SWOT analysis: © SWOT stands for Strengths, weaknesses, opportunities, and threats. © It is also called a SWOT matrix. > The strategy is historically credited to Albert Humphrey in the 1960s, but this attribution remains debatable. There is no universally-accepted creator. > SOFTis an aA opportunities, faults, and threats. » Important Points + Peter Pyhrr: He has developed ZBB (zero-based Budgeting). + Philip Kotler He is known for his definition of Marketing Mix and is regarded as the father of modem marketing. + Peter Drucker: He has written the Book The practice of management and is described as the founder of modern management. + He coined the term Knowledge Worker in 1959. ieee aoc ee eae Pela meu) (CMC M rere Lecel) if Elen Practice Mock Tests MasterCl resieuccg Download AppQuestion 10 View this Question Online > What is the first and most important function of management? 1. Planning 2. Controlling 4. Scheduling Answer (Detailed Solution Below) Option 1 : Planning Project Management Question 10 Detailed Solution Management: + Management is a set of principles relating to the set of fifictions of planning, organizing, directing, and controlling, and the application’ of these principles in harnessing physical, financial, human, and informational resources. efficiently and effectively to achieve organizational goals. ¢ Functions of Management 1, Planning: It is a funeti termining in advance what is to be done and what is to do it. It is the first and most important function of management. 2. Organizing: it is the management function of assigning duties, grouping tasks, establishing authority, and allocating resources required to carry out a specific plan 3, Staffing: It is a function to make sure the right people with the right qualification are available at the right place and time to accomplish the goals of the organization. 4. Directing: It involves leading, influencing, and motivating employees to perform the tasks assigned to them. 5. Controlling: It is a function of monitoring organizational performance towards the attainment of organizational goals. oN India’s #1 Learning Platform RCD A ott Start Complete Exam Preparation ec foe) vice earnDownload App Question 11 View this Question Online > is a manufacturing philosophy that emphasizes careful scheduling of work, on-time delivery Of zero-defect supplies, and @ highly skilled workforce. 1. PERT 2. MRP 3. £OQ 4. JIT Answer (Detailed Solution Below) »4 > Option 4: JIT Project Management Question 11 Detailed Solution JIT is associated with Japanese management techniques. It is known as just-in-time production ()IT) is a set of principles and practices based on the philosophy that firms should hold little or no inventory beyond that required for immediate production or distribution. JIT consists of different operations such as, + Carefully scheduling + on-time delivery + Zero defects + Skilled workforce &; Additional Information Other Manufacturing phylosophies PERT stands for Program Evaluation and Review Technique and was developed to address the needs of projects for which the time and cost estimates tend to be quite uncertain. + It has a probabilistic approach and hence suitable for the projects which are to be conducted for the first time or projects related to research and development. * PERT uses 3 case: LTthe activity + Most likely time = estimates the time required for the completion of activity under normal circumstances © Pessimistic time = estimates the longest possible time required for the completion of the activity Most likely (t,,) g PERT expected time (t,) : = tot(tinx 4) +tp S ig; = Beta Distribution 3 a & optimistic (t,) pessimistic (t,) Possible activity durations N\A G E0Q: 19° The ordering quantity Q* at which holding cost becomes equal st and the total inventory cost is minimum is known as Economic Order At E0Q, Ordering cost = Holding cost DEO=2 » = , eer BO= S090 = (RE where D = Annual or yearly demand for inventory (unit/year), Q = Quantity to be ordered at each order point (unit/orde’), Co = Cost of placing one order [Rs/order], C, = Cost of holding one unit in inventory for one complete year [Rs/unit/year] Materials requirements planning (MRP) + Itisa simple system of calculating arithmetically the requirements of the input materials at different points of time based on the actual production plan. + It can be seen from the figure that an MRP system has three major input components: Master production Schedule (MPS) invertor Material Requirements planning Be ot oe — (MRP) Logic [7] Materia (BOM) 1. Planned Order Release 2. Order Rescheduling 3. Planned Orders Receipts& eee eel Start Complete Exam Preparation lee ret 3} Mock Tests Des Ciel resieucoig Extrem Download App Question 12 What is the prime responsibility of the site management? 1. Implement safety rules 2. Training for'site persons 3 eo. 4, Establishment of work permit system Id quality audit Answer (Detailed Solution Below) Option 1 : Implement safety rules Project Management Question 12 Detailed Solution Site Management: Reo conte View this Question Online > + It is a professional service that provides a project's ownenwith effective management of the project's schedule, cost, quality, safety, scope, and function. + Site management is compatible with all project delivery methods. + It is undertaken as the last phase of the remedial program ata site which continues after a cettificate of completion is issued. + For any site management Implementing safety rules is a prime responsi Other responsibilities of SB cosemene: + Plan and Develop the Project Idea + Create and Lead Team ity.OTE EVORECE Fe heee Oe Det Hess + Solve Issues + Manage finance + Ensure Stakeholder Satisfaction + Evaluate Project Performance Cs Pie ABE Bacal CRE er Start Complete Exam Preparation Doerr i Peay pbs Mock Tests rested ea eee Download App Question 13 View this Question Online > Which one of the following schedules'shows the specific activities necessary to complete an activity or work package? Project schedule a AMBDeaud 3. Task schedule 4, Internal schedule ‘Answer (Detailed Solution Below) Option 3: Task schedule Project Management Question 13 Detailed Solution Explanati Work break down structure Work break down (WED) ines each deliverable and the decomposition of the deliverable into work packages. Plan—Program—Project—Sub-project—Activity—Work—Task+ Task schedule deals with allocation of resources related to work package as well activity. + When the project activities have been defined, they are broken down into tasks and after time & resource allocation, task schedules are prepared which is specified activities necessary to complete a work package. & oe Re aR Rar tl PSE Ta me CMC es ACCC Seo Gree: one Prac) Dos colony resend Ex tier) Jownload App Question 14 ) View this Question Online > The market price per share of a company is'Rs,125. The dividend per share (DPS) is Rs 12 and DPS is expected to grow at a constant rate of 8% per annum. The cost of the equity capital to company will be 1. 17.6% ‘. 3.132% 4. 11.8% Answer (Detailed Solution Below) Option 1: 17.6% Project Management Question 14 Detailed Solution Concept: Cost of equity= PP +r Calculation:Market price per share = Rs ‘~< jend)peF share = Rs 12, Rate = 8% = 0.08 Now, ity = DF. Cost of equity = +? -. Cost of equity = 1 + 0.08 + Cost of equity = 0.096 + 0.08 = 0.176 Thus, the cost of equity = 17.6% ieee ane Reet Start Complete Exam Preparation Reet Scott lhe ones ebiew kad sees Download App resieard Gas ET Question 15 View this Question Online > With reference to problem solving, fixatian refers to 1. Focused approach to problem solving 2 = to/problem solving 3. Inability to see a problem from a fresh perspective 4. An ability to comprehend the goals to be achieved Answer (Detailed Solution Below) Option 3: Inability to see a problem from a fresh perspective Project Management Question 15 Detailed Solution Problem-solving is the act of defining a proble determining the cause of the probletStep 1: Understand the problem. ke Step 2: Devise a plan (tr: Step 3: Carry out the plan (olve). Step 4: Look back (check and interpret) Fixation - Inability to see a problem from a fresh perspective. This impedes problem-solving, Two examples of fixation are mental set and functional fixedness