Deck 4: Project Management

Question 1

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

Answer 1

False
Explanation: That a project manager is held responsible for successful completion of the project is listed as an advantage of a matrix organizational structure.

Question 2

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

Answer 2

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

Question 3

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

Answer 3

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

Question 4

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

Question 5

The second step in managing a project is writing the statement of work.

Question 6

A matrix project structure is often referred to as a "skunkworks."

Question 7

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

Question 8

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

Question 9

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

Question 10

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

Question 11

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

Question 12

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

Question 13

An event unit package is a subdivision of a project.

Question 14

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

Question 15

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

Question 16

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

Question 17

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

Question 18

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

Question 19

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

Question 20

CPM is an abbreviation for critical path method.

Question 21

The valuations in an earned value management analysis must be either profits or revenue.

Question 22

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

Question 23

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

Question 24

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

Question 25

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

Question 26

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

Question 27

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

Question 28

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

Question 29

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

Question 30

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

Question 31

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

Question 32

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

Question 33

Earned value management (EVM) is a technique for measuring project progress in an objective manner.

Question 34

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

Question 35

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

Question 36

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

Question 37

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

Question 38

A project can be subdivided into which of the following?

A)Job orders
B)Sub-jobs
C)Work packages
D)Sub-paths
E)Events and decisions

Question 39

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

Question 40

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

Question 41

What is a work breakdown structure?

A)A list of the activities making up the higher levels of the project
B)A definition of the hierarchy of project tasks, subtasks, and work packages
C)A depiction of the activities making up a project
D)A Gantt chart
E)A structure that is incompatible with the critical path method

Question 42

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

A)Gantt chart
B)PERT chart
C)Bar/milestone chart
D)Total program cost breakdown
E)EVM chart

Question 43

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

A)Project proposal
B)Approved project plan
C)Humphrey chart
D)Equipment and supplies chart
E)Cost and performance tracking schedule

Question 44

A simple project listing of five activities, their predecessors, and their respective time estimates are presented here: Using CPM, what is the latest finish time for the last activity in this project (i.e., the total time to complete the project)?

A)10 days
B)7 days
C)8 days
D)12 days
E)9 days

Question 45

For an activity in a CPM analysis, the early start time is 8 and the late start time is 10.Which of the following statements is true?

A)The late finish is 12.
B)The early finish is 10.
C)The slack for this activity is 2.
D)The duration of this activity is 2.
E)The activity is on the critical path.

Question 46

A project starts out as which of the following?

A)A statement of work
B)Critical path method (CPM)
C)A series of milestones
D)A Gantt chart
E)A latest-start-time estimate

Question 47

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

A)Pure project
B)Task force
C)Matrix project
D)Functional project
E)PERT

Question 48

A simple project listing of five activities, their predecessors, and their respective time estimates are presented here: Using the CPM, which activities have slack in this project?

A)A
B)B
C)C
D)D
E)C and E

Question 49

A company must perform a maintenance project consisting of seven activities.The activities, their predecessors, and their respective time estimates are presented here: Using CPM, what is the latest finish time for the last activity in this project (i.e., the total time to complete the project)?

A)9 days
B)10 days
C)11 days
D)12 days
E)13 days

Question 50

A company must perform a maintenance project consisting of seven activities.The activities, their predecessors, and their respective time estimates are presented here: Using CPM, which activities make up the critical path?

A)A, B, D, F, G
B)A, C, E, F, G
C)A, C, B, F, E
D)A, D, E
E)None of these

Question 51

PERT is an abbreviation for which of the following methodologies?

A)Product evaluation, result, and treatment
B)Programming and evaluation realization technology
C)Program evaluation and review technique
D)Process evaluation and review technology
E)It is a name, not an abbreviation for anything.

Question 52

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

A)Matrix project
B)Integrated task force
C)Functional project
D)Pure project
E)Cross-functional flexible team

Question 53

A simple project listing of five activities and their respective time estimates are presented here: Using CPM, which activities make up the critical path?

A)A, C, D, E
B)A, B, D, E
C)A, C, B, D, E
D)A, D, E
E)None of these

Question 54

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

A)Pure project
B)Task force
C)Matrix project
D)Functional project
E)PERT

Question 55

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

A)Activities
B)Cost
C)Profit
D)Time
E)Milestones

Question 56

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

A)The project manager has full authority over the project.
B)Team pride, motivation, and commitment are high.
C)A team member can work on several projects.
D)Needs of the client are secondary.
E)None of these

Question 57

For an activity in a CPM analysis, the early finish time is 20 and the late finish time is 20.Which of the following statements is true?

A)The activity's late start must happen before its early start.
B)The activity is on the critical path.
C)The slack for this activity is 20.
D)The duration of this task is zero.
E)The duration of this task is 20.

Question 58

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

A)It specifies the relationships in the CPM network of activities.
B)It provides useful timing information.
C)It includes cost information.
D)It is the probability information required in the final step of CPM.
E)None of these

Question 59

A company must perform a maintenance project consisting of seven activities.The activities, their predecessors, and their respective time estimates are presented here: Using CPM, which activities have slack in this project?

A)A, B, C
B)B, D
C)Only C
D)C, E
E)F, G

Question 60

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

A)Team members can work on several projects.
B)Functional area is a "home" after the project is completed.
C)There are duplicated resources.
D)Lines of communication are shortened.
E)Overall organizational policies and goals can be ignored.

Question 61

What is the most basic requirement of an EVM system? _____________________________________________________________

Question 62

Popular project management software used in mid-sized projects is

A)Microsoft Word.
B)Microsoft Primavera.
C)Microsoft Project.
D)Microsoft Excel.
E)None of these

Question 63

You have collected the data for a time-cost CPM scheduling model analysis.The time is in days and the project "direct costs" are given here. The indirect costs for the project are determined on a daily duration basis.If the project lasts 16 days, the total indirect costs are $400; 15 days, they will be $250; 14 days, they will be $200; and 13 days, they will be $100.At what day do we achieve the lowest total project cost (i.e., direct plus indirect costs)?

A) 16 days
B) 15 days
C) 14 days
D) 13 days
E) 12 days

Question 64

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

A)A = $300, B = $200, C = $300
B)A = $100, B = $200, C = $400
C)A = $200, B = $200, C = $200
D)A = $100, B = $400, C = $300
E)A = $200, B = $300, C = $400

Question 65

Here are the data for a time-cost CPM scheduling model analysis.The time is in days and the costs include both direct and indirect costs. What are the total time of this project and total normal cost?

A)Total time is 13 days, total cost is $1,200.
B)Total time is 12 days, total cost is $1,700.
C)Total time is 11 days, total cost is $1,600.
D)Total time is 10 days, total cost is $1,750.
E)Total time is 9 days, total cost is $1,700.

Question 66

What do the initials EVM stand for? _______________________________________

Question 67

You have collected the data for a time-cost CPM scheduling model analysis.The time is in days and the project "direct costs" are given here. The indirect costs for the project are determined on a daily duration basis.If the project lasts 16 days, the total indirect costs are $400; 15 days, they will be $250; 14 days, they will be $200; and 13 days, they will be $100.If you crash this project by one day what is the total (i.e., direct and indirect) project cost? ____________________
E.A costs $100/day to crash, D costs $150/day to crash, and E costs $400/day to crash.Reducing the duration of A by one day at an additional cost of $100 is the most economical.Direct costs are now $400 + $100 + $200 + $400 + $500 + $200 + $100 = $1,900.Overall duration of the project is 15 days, and indirect costs are $250.The total cost of crashing this project for one day is $2,150.

Question 68

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

A)You have incorrectly performed the analysis.
B)You have multiple critical paths.
C)Only one path is optimal.
D)More than one path is optimal.
E)The project will not be completed by the desired time.

Question 69

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

A)Positively related
B)Optimally related
C)Negatively related
D)Not related
E)Fractionally related

Question 70

What are "project milestones?" _________________________________________

Question 71

Here are the data for a time-cost CPM scheduling analysis.The time is in days and the costs include both direct and indirect costs. If you crash this project to reduce the total time by four days, what is the total time of the project and total cost?

A)Total time is 10 days, total cost is $2,500.
B)Total time is 9 days, total cost is $2,300.
C)Total time is 8 days, total cost is $2,750.
D)Total time is 8 days, total cost is $1,850.
E)Total time is 9 days, total cost is $2,350.

Question 72

Here are the data for a time-cost CPM scheduling analysis.The time is in days and the costs include both direct and indirect costs. If you crash this project to reduce the total time by four days, what is the total time of the project and total cost? __________________

Question 73

What is that sequence of activities that consume the longest amount of time in a project network of activities called? _______________________________

Question 74

You know when you have arrived at the optimal solution in using the time-cost CPM scheduling model analysis when what happens?

A)You have found the critical path.
B)You have run out of crash time.
C)You no longer have a linear relationship with costs.
D)You have reached the minimum total cost.
E)You have run out of crash costs.

Question 75

Here are the data for a time-cost CPM scheduling model analysis.The time is in days and the costs include both direct and indirect costs. If you crash this project to reduce the total time by one day, what is the total time of the project and total cost?

A)Total time is 13 days, total cost is $1,500.
B)Total time is 12 days, total cost is $2,000.
C)Total time is 12 days, total cost is $2,300.
D)Total time is 11 days, total cost is $1,850.
E)Total time is 11 days, total cost is $2,350.

Question 76

Describe how CPM handles the trade-offs between time and cost in the scheduling of a project.

Question 77

What is the criterion for determining whether a project activity is on the "critical path" or not?

Question 78

You have collected the data for a time-cost CPM scheduling model analysis.The time is in days and the project "direct costs" are given here. The indirect costs for the project are determined on a daily duration basis.If the project lasts 16 days, the total indirect costs are $400; 15 days, they will be $250; 14 days, they will be $200; and 13 days, they will be $100.If you crash this project by one day, what is the total (i.e., direct and indirect) project cost?

A) $2,150
B) $2,300
C) $2,400
D) $2,450
E) $2,500