Question 1

The 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 manage for larger projects due to the increased number of tasks and dependencies.

Question 2

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

Accepted Answer

Value analysis can be applied to services, but it requires a different approach compared to tangible products. Services are intangible and their value is often perceived by the customer, which makes it difficult to quantify and measure. However, VA techniques such as process mapping and customer feedback analysis can be used to improve the value of services.

Question 3

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

Accepted Answer

Projects are unique because they have a specific goal, timeline, budget and resources allocated to achieve the desired outcome. They also involve a team with specific skills and competencies working together towards the same objective.

Question 4

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

Accepted Answer

The critical path in a PERT network is the sequence of activities that determines the shortest possible duration of the project, and therefore, any activity without slack (i.e., any activity with zero float) is critical and must be part of the critical path.

Question 5

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

This is true, a network for a CPM or PERT project is a visual representation of the sequence and timing of each activity in relation to all other activities in the project.

Question 6

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

This is because quantity discount analysis involves determining the additional cost per unit at different quantity levels, and comparing it to the savings from the discount offered to determine the optimal quantity to purchase.

Question 7

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 the supplier with a predictable revenue stream, which can encourage them to invest in equipment that helps lower their production costs. This results in cost savings for both the supplier and the buyer.

Question 8

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

Accepted Answer

Collaborative relationships are formed to work together towards achieving mutual benefits such as learning curve benefits and productivity improvements, which can be shared between buyers and suppliers.

Question 9

Learning curve analysis is appropriate when a supplier uses a new production process or produces an item for the first time.

Accepted Answer

Learning curve analysis helps in understanding the relationship between the unit cost of production and the cumulative volume of production. It is useful in situations where a supplier uses a new production process or produces an item for the first time because these situations involve a steep learning curve, and the analysis can help identify the optimal production volume that minimizes costs.

Question 10

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) is analyzed with three time estimates: the most likely time, the pessimistic time, and the optimistic time.

Question 11

The planning phase of a project is particularly critical because there is a strong correlation between effective planning and successful project outcomes.

Accepted Answer

The planning phase sets the foundation for the entire project and helps ensure that it is completed on time, within budget, and meets the desired objectives. Without proper planning, a project is more likely to fail or encounter significant delays and issues. Therefore, effective planning is crucial for achieving successful project outcomes.

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

Learning curves require the accurate collection of cost and labor data, particularly during the latter stages of production.

Accepted Answer

The answer of Learning curves require the accurate collection of...

Question 14

The work force factor of the learning curve refers to 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 answer of The work force factor of the learning...

Question 15

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 16

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 17

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

Accepted Answer

Activities on the critical path do not have slack, as any delay in these activities will directly impact the project's overall completion time. Slack is only applicable to non-critical activities, where a delay can be absorbed without affecting the project's completion time.

Question 18

Learning-curve analysis highlights a key reason why many purchasers consolidate purchase volumes with fewer suppliers.

Accepted Answer

Learning-curve analysis helps purchasers understand how their efficiency and cost per unit improve with experience, leading them to consolidate volumes with fewer suppliers to maximize these benefits.

Question 19

The primary objective of value analysis is to increase the value of an item or service at the lowest cost without sacrificing quality.

Accepted Answer

The primary objective of value analysis is indeed to increase the value of an item or service while minimizing the cost, without compromising the quality. This process involves analyzing the different components or aspects of a product or service and determining which ones contribute the most to its overall value. By focusing on these key elements and finding ways to optimize them, value analysis can help organizations improve their operations and deliver higher-quality products and services more efficiently.

Question 20

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

Accepted Answer

This statement is true. The critical path in a PERT network represents the longest path (in time) from the start node to the end node, and it determines the minimum amount of time required to complete the project.

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