Question 1

Many organizations are attempting to develop new products concurrently rather than sequentially, which not only saves time and money but also allows agreement on major issues early in the process.

Accepted Answer

Developing new products concurrently means working on multiple products at the same time, rather than waiting for one product to be completed before starting on the next one. This approach can save time and money, and also allows issues to be identified and resolved earlier in the process.

Question 2

If learning occurs at a supplier during the performance of a purchase contract, and the buyer does not take that into account, then the supplier will not reap the financial benefits that result from learning.

Accepted Answer

Learning during the performance of a purchase contract often leads to increased efficiency and reduced costs for the supplier, which can translate into financial benefits even if the buyer does not explicitly account for this learning in the contract terms.

Question 3

Most processes do not cross functional boundaries.

Accepted Answer

Many processes require input, output or cooperation from multiple functional areas, making them cross functional.

Question 4

In a CPM or PERT project, a network is a graphical representation that shows how each individual activity relates in time and sequence to all other activities.

Accepted Answer

A network in a CPM or PERT project is indeed a graphical representation that shows how each individual activity relates in time and sequence to all other activities.

Question 5

Offering a supplier a longer-term contract with guaranteed volumes encourages investment in equipment that results in lower production costs.

Accepted Answer

Offering a longer-term contract with guaranteed volumes provides suppliers with greater certainty about future demand, enabling them to make investments in more efficient equipment that can help reduce production costs.

Question 6

Activities without any slack in a PERT network are by definition on the critical path.

Accepted Answer

Activities with no slack are those that cannot be delayed without delaying the project's completion date. Therefore, they are on the critical path of the project.

Question 7

Because so few processes move across functional boundaries, it is illogical to have those groups connected with the process involved with mapping and improving the process.

Accepted Answer

It is logical to have groups connected with the process involved with mapping and improving the process, even if they cross functional boundaries, in order to ensure a comprehensive and effective improvement effort.

Question 8

Activities on the critical path in a PERT network will have the most slack.

Accepted Answer

Activities on the critical path in a PERT network will have zero slack, meaning they cannot be delayed without delaying the entire project. The activities with the most slack are those that are not on the critical path, as they can be delayed without affecting the project's completion date.

Question 9

In collaborative relationships, buyers and suppliers can work together to mutually share the benefits of learning curves and productivity improvements.

Accepted Answer

In collaborative relationships, both buyers and suppliers can benefit from sharing knowledge and expertise, leading to productivity improvements and cost savings. This can include learning from each other's experiences and applying best practices to enhance overall performance.

Question 10

Value analysis traditionally applies to tangible products, and there are many reasons why companies cannot VA techniques to services.

Accepted Answer

While value analysis was traditionally focused on tangible products, companies can and do use VA techniques for services as well. However, there may be some challenges in applying VA to services, such as the difficulty in quantifying the benefits of intangible aspects of the service or the variability in service delivery.

Question 11

Projects have certain characteristics that make them unique compared with other forms of work.

Accepted Answer

Projects are temporary, have a specific goal, require coordination among multiple teams, and involve unique deliverables. These characteristics make them different from other forms of work such as ongoing operations or routine tasks.

Question 12

All processes or items can benefit from, or exhibit improvement from, learning.

Accepted Answer

Not all processes or items can benefit from learning, as learning applies to systems or entities capable of adaptation or improvement over time, such as living organisms or artificial intelligence systems. Inanimate objects or processes without a feedback mechanism for adaptation do not exhibit improvement through learning.

Question 13

The longest (in time) path of continuous activities through a PERT network is the critical path.

Accepted Answer

The definition given in the statement is true for the critical path in a PERT network.

Question 14

Because a project usually has a defined scope with agreed-upon tasks, responsibilities, and deliverables, it is often more difficult to measure project success compared with other types of work.

Accepted Answer

Project success is often easier to measure because of the defined scope, tasks, responsibilities, and deliverables, which provide clear criteria for evaluation.

Question 15

The work force factor of the learning curve includes the ability of the worker on the job to learn and improve through repetitive effort and increased efficiency, but not the effort by management to pursue productivity gains.

Accepted Answer

The work force factor of the learning curve includes both the ability of the worker to learn and improve through repetitive effort, as well as the efforts by management to pursue productivity gains through training, process improvements, and other measures. Therefore, the statement is false.

Question 16

Each activity in PERT has three time estimates: (1) most likely, (2) pessimistic, and (3) optimistic.

Accepted Answer

This is true. Each activity in PERT (Program Evaluation and Review Technique) involves three time estimates: the most likely time (tM), the optimistic time (tO), and the pessimistic time (tP). These three time estimates are used to calculate the expected time (TE) for each activity.

Question 17

The primary advantage of a Gantt chart is that for larger projects, it can be easy to use and keep up to date.

Accepted Answer

Gantt charts can become complex and difficult to update for larger projects, as they require manual adjustments for every change in project timelines or task dependencies.

Question 18

When a process crosses functional boundaries, there is a risk that no one actually owns or takes responsibility for the entire process.

Accepted Answer

When processes cross functional boundaries, multiple departments or individuals may be involved in different stages of the process. This can create a lack of clarity around who owns the process and is responsible for its overall success. Effective communication and collaboration are necessary to ensure that all stakeholders understand their roles and responsibilities.

Question 19

When using quantity discount analysis, the key calculation is the incremental cost of each additional unit at different quantity levels.

Accepted Answer

This statement is true. The key calculation in quantity discount analysis is determining the incremental cost of each additional unit at different quantity levels in order to determine at what quantity level it becomes more cost-effective to order more units.

Question 20

By identifying unnecessary steps and resources, value stream mapping streamlines processes for greater efficiency.

Accepted Answer

Value stream mapping is a tool used to identify inefficiencies in a process and eliminate them through the elimination of unnecessary steps and resources.

Quiz 12: Purchasing and Supply Chain Analysis: Tools and Techniques