SCM 515 -Final Study Guide

a budgeting method that begins with top managers' estimates of the resources needed for a project.

top-down budgeting

learning curves are important for: a) helping new PMs understand the required math b) visualization of curved mechanical parts c) estimating performance improvement as workers become experiences d) estimating cost improvement as parts become "broken in"

c) estimating performance improvement as workers become experienced

it is vital to good project management to be meticulously __ in estimating the time required to complete each of the various tasks included in the project. a) honest b) quick c) technical d) managerial

a) honest

what is the impact of increasing the time for completion of a project? a) increasing cost b) decreasing cost c) increasing errors d) increasing customer satisfaction

a) increasing cost

the following five clues can indicate when __ scheduling is needed: late or vague progress reports, overdue deliverables, static progress indicators, longer work hours for team members, and a noticeable increase in minor "issues" affecting the project. a) iterative b) productive c) estimated d) life-cycle

a) iterative

at any given time, a firm may have a fixed level of various resources for its projects, including: a) labor hours, equipment, and parts b) clean air c) time d) tasks

a) labor hours, equipment, and parts

each time output on work doubles, the worker hours per unit decrease to a fixed percentage of their previous value. this is referred to as the __. a) learning rate b) acceptance rate c) logical increase rate d) iteration rate

a) learning rate

the project budget is: a) not a sufficient measure of a project's progress or value to the organization b) a sufficient measure of a project's progress and value c) the primary means of obtaining upper management approval of a project d) generally so inaccurate that it is of little value in decision-making

a) not a sufficient measure of a project's progress or value to the organization

the measurement of project __ usually poses the most difficult data gathering problem a) performance b) cost c) management overhead d) opposition

a) performance

the relationship of project reports to the project WBS is the key to the determination of: a) report content and frequency b) human resource hiring c) human resource training d) ownership of the project

a) report content and frequency

time, cost, and scope are typically described as three of the most important things to manage a project. the authors argue in this chapter that __ is usually by far the most important of the three a) scope b) time c) cost d) none (they are equally important)

a) scope

control is focused on three elements of a project, namely __. a) scope, time, and cost b) cost, quality, and human resource management c) reports, meetings, and project management d) scope, reports, and cost

a) scope, time, and cost

project management RFPs should be written with: a) simple, minimally technical language b) technical language, including definitions of important terms c) the native language of the corporation hosting the project d) translations into English, German, and french

a) simple, minimally technical language

the __ of a population is a measure of the population's dispersion and is equal to the square of the population's standard deviation a) variance b) error c) deviation d) Gantt

a) variance

a specific task or set of tasks that are required by the project, use up resources, and taken time to complete

activity

the __ rule allows no credit for work until the task is complete a) 50-50 b) 0-100 c) critical input use d) proportionality

b) 0-100

in PERT networks, assuming a normal distribution about estimates of duration, the "pessimistic" time would be where there is a ___. a) 50% chance the actual work time is greater b) 1% chance the actual work time is greater c) 1% chance the actual work time is less d) 0% chance the actual work time is less

b) 1% chance the actual work time is greater

what is more common in business project management today? a) Activity on Arc (AOA) b) Activity on Node (AON) c) Activity on Path (AOP) d) Activity on Arrow (AOA)

b) Activity on Node (AON)

cybernetic control is reported to be the most common type of control system, and consists of: a) upper management weekly approvals b) an automatic adjustment of processes when deviations are detected c) automated reports to top management when the project goes out of control d) cybernetic loops of feedback to the PM

b) an automatic adjustment of processes when deviations are detected

__ is seen as more risky due to ambitious subordinates who may overstate resource requirements in an attempt to ensure success and build empires. a) work element b) bottom-up c) top-down d) iterative

b) bottom-up

when a project is expedited, it will often __. a) cost less b) create more problems c) save resources d) be more fun for the project managers

b) create more problems

the __ priority rule is the best overall and generally results in minimum schedule slippage, minimum resource idle time, and minimum in-process inventory. a) maximum cost first b) first in, first out c) minimum slack first d) last in, first out

c) minimum slack first

the series of connected activities or events between any two events in a network is called the __. a) event b) network c) path d) stream

c) path

effective reporting systems focus on: a) providing complete sets of available data b) following the original scope of the project plan c) providing the appropriate level of detail in reports to satisfy different level of managers d) managing tradeoffs & addressing risks

c) providing the appropriate level of detail in reports to satisfy different levels of managers

the major responsibility of professional cost estimators is to: a) add 20% to all estimates to avoid cost overruns b) eliminate unnecessary steps in the original engineering designs c) reduce the level of uncertainty in cost estimates d) keep upper management happy and stay employed

c) reduce the level of uncertainty in cost estimates

risk management today is: a) relatively uncommon in project management b) practiced only by a few very large corporations c) reported to be practiced by over 71% of organizations d) involves simple steps to minimize uncertainty

c) reported to be practiced by over 71% of organizations

routine, exception, and special analysis are types of __. a) delays b) meetings c) reports d) value

c) reports

the __ budgeting method consists of managers estimating overall project cost as well as the costs of the major subproject that comprise it. these cost estimates are then given to lower-level managers, who are expected to continue the breakdown into budget estimates for the specific tasks and work packages that compromise the subproject. this process continues to the lowest level. a) work element b) bottom-up c) top-down d) iterative

c) top-down

work situations that disrupt a project manager's schedule typically occur __. a) rarely b) quarterly c) unexpectedly d) daily

c) unexpectedly

in project management, Parkinson's Law states that: a) the early bird gets the worm b) ET = (a + 4m + b) / 6 c) work expands to fill the time allotted d) idle hands are created by slack

c) work expands to fill the time allotted

goldratt's critical chain (1997) addresses what common PM problems? a) too much slack b) not enough top management support c) constrained resource scheduling d) lack of training for project team

c) constrained resource scheduling

the use of 3 probabilistic activity time estimates may reduce the need for: a) probability reports to management b) additional computations c) crashing the project d) managing tradeoffs & addressing risks

c) crashing the project

the three types of project control processes are: a) not well-understood b) easily understood because they have stayed the same for many years c) cybernetic, go/no-go, and post-control d) easily understood by all levels in the project team

c) cybernetic, go/no-go, and post-control

the "resource flow variance" is __. a) usually zero b) usually positive c) equal to PV-AC d) the same as the cash flow variance

c) equal to PV-AC

in well-understood, routine projects, such as highway construction, budgeting is: a) usually very precise and accurate b) rarely accurate because each highway is different c) estimating by scaling the various cost elements based on historical data d) routine and boring

c) estimating by scaling the various cost elements based on historical data

activities, events, or paths that, if delayed, will delay the completion of the project

critical

another important factor in the 1997 mars project cost savings was: a) upper management was very strict on paying bills b) subcontractors were fired if they sent bills greater than original estimates c) the 1997 mars lander never left the ground. it only simulated landing d) 70% of major procurements contracts were fixed-price rather than cost plus

d) 70% of major procurements contracts were fixed-price rather than cost plus

the Gantt chart shows which of the following? a) Activity on Arc (AOA) b) Activity on Node (AON) c) Activity on Arrow (AOA) d) Activities on Bar

d) Activities on Bar

cost variance is calculated as __. a) EV-PV b) ST-AT c) ST-AC d) EV-AC

d) EV-AC

__ on the Critical Path __. a) no activities; have zero slack b) the majority of activities; have some slack c) the majority of activities; are full of slackers d) all activities; have zero slack

d) all activities; have zero slack

ambiguities in projects ___. a) are overwhelming b) can be reduced by using probabilities c) can and must be eliminated d) can be managed to reduce their impact

d) can be managed to reduce their impact

if the resources for a project are increased, the outputs usually: a) remain constant b) decrease in predictable ways c) increase in predictable ways d) change, but not in predictable patterns

d) change, but not in predictable patterns

a bar chart illustrating multiple, time-based activities on a horizontal timescale

gantt chart

budgeting by project/task activity and then aggregating income and expenditures by project or program, often in addition to aggregation by organizational unit or category

project budgeting

which of the following describes the amount of resources a schedule requires during specific time periods? a) resource loading b) resource leveling c) usage of scarce resources d) time management

resource loading

does the budget estimation process measure a project's progress?

the budget is not a sufficient measure of a project's progress. the budget expended (resource usage) does not measure the actual level of work completed on the project.

why have professional cost estimators?

the major responsibility of the professional estimators is to reduce the level of uncertainty in cost estimates so that the firm's bids can be made in the light of expert information about its potential costs.

the __ is the key input for establishing the monitoring and control systems for the project a) schedule b) budget c) organization chart d) PERT chart

a) schedule

a procedure that imitates real life by running thousands of values of distribution parameters to obtain an overall distribution of the outcomes of interest

Monte Carlo simulation

what does the budget serve as?

a standard for comparison, a baseline from which to measure the difference between the actual and planned uses of resources.

SPI is calculated as __. a) EV/PV b) EV/AC c) PV/EV d) AC/EV

a) EV/PV

one key reason for the 1997 mars project cost savings was: a) a project cash reserve was held back for time-phased release b) cost overruns were taken out of engineers' paychecks c) managers were fired for cost overruns d) the cost accountants acted as project managers

a) a project cash reserve was held back for time-phased release

a task or set of tasks that are required by the project are called __ a) activities b) events c) paths d) networks

a) activities

the act of ___ is the allocation of scarce resources to the various endeavors of an organization. a) budgeting b) resourcing c) costing d) spending

a) budgeting

the authors of the text suggest thinking of __ as the maintenance of ethical, goal-directed behavior rather than coercive. a) control b) maintenance c) monitoring d) supervising

a) control

what are some appropriate tools for managing projects? a) crystal ball, Microsoft Project, and excel b) wordperfect, office email, and excel c) calculators, Mac computers, and telephones d) pens, pencils, and slide rules

a) crystal ball, ms project, excel

a good project monitoring system will require __ as compared to commonly used systems a) greater up-front planning time & investment b) less cost c) more time & money, but reduce risk to zero d) outside consultants to manage them

a) greater up-front planning time & investment

the use of heuristics for project scheduling: a) is not recommended b) employs rules of thumb that have been found to work well for similar situations c) requires use of computers due to complexity of algorithms d) has built-in routines to optimize outcomes and seek the best solutions

b) employs rules of thumb that have been found to work well for similar situations

what is Monte Carlo simulation used for? a) calculating alpha b) evaluating the impact of various management decisions c) managing the effects of gamma d) it is normally not used in project management

b) evaluating the impact of various management decisions

one of the advantages of __ is that less hands-on management is required if a given resource is used nearly constantly over time. a) resource leveling b) fast-tracking c) crashing d) constrained resources

b) fast-tracking

some of the disadvantages of __ include increased number of change orders, subsequent loss of productivity, increased cost, and loss of time. a) crashing b) fast-tracking c) project management d) over simplification

b) fast-tracking

the most common type of control systems in project management are __. a) cybernetic b) go/no-go c) post-controls d) pre- and post-controls

b) go/no-go

the project manager's primary function includes managing Human Resources and: a) project management software b) guarding physical and financial assets of the company c) charting and graphing project task completion d) following orders from top management

b) guarding physical and financial assets of the company

what a project is crashed, it a) is damaged badly b) is completed in less time c) costs less d) has fewer calories

b) is completed in less time

a node or event with duration of 0 datas is a(n): a) error b) milestone c) short term activity (less than 1 day) d) zero sum game

b) milestone

scheduling and allocating resources for multiple projects is __ compared to single-project cases. a) much more complicated b) more often done by upper management c) typically based on random selection d) beyond the scope of work for project managers

b) much more complicated

if all three critical resources are fixed, the system is: a) doomed to failure b) over-determined c) on the critical path d) fixed for a long time

b) over-determined

crystal ball is a software program that: a) is useful because it can predict the future b) provides a distribution of potential outcomes with associated probabilities c) allows simulation of precise forecasts, which are most valuable d) was developed by gypsies and is not very useful for project management

b) provides a distribution of potential outcomes with associated probabilities

project management control of physical assets includes: a) scheduling of maintenance and repair of project equipment b) scheduling of maintenance, repair, and/or replacement of project equipment c) planning, scheduling, and graphing of project tasks and equipment d) PMs do not control physical assets; they schedule work

b) scheduling of maintenance, repair, and/or replacement of project equipment

resource leveling aims to minimize variations in resource usage by: a) keeping resources constant b) shifting tasks within their slack allowances c) eliminating slack d) signing fixed-cost contracts

b) shifting tasks within their slack allowances

common problems in project reports include which of the following? a) reports are short and hastily put together b) they have too much data and too much detail c) they put on a shelf and not forwarded to management d) they lack important details

b) they have too much data and too much detail

a __ is created with scope on the vertical axis and time on the horizontal axis a) burnup chart b) burndown chart c) gantt chart d) PERT diagram

b) turndown chart

according to goldratt: a) two activities scheduled to be carried out in parallel and using the same scarce resources are not independent b) two activities scheduled to be carried out in parallel and using the same scarce resource are independent c) two activities scheduled to be carried out sequentially and using the same scarce resource benefit from having the same PM d) two activities scheduled to be carried out sequentially and using the same scarce resource require different project managers

b) two activities scheduled to be carried out in parallel and using the same scarce resource are independent

__ is involved in any forecast, though some forecasts have more than others. a) loss b) uncertainty c) hope d) insurance

b) uncertainty

goldratt illustrates that overly optimistic project managers are: a) generally rare and in great demand b) very common and cause problems in scheduling c) in high demand in industry d) most likely to get large raises and promotions

b) very common and cause problems in scheduling

a budgeting method that begins with those who will be doing the tasks estimating the resources needed. the advantage is more accurate estimates.

bottom-up budgeting

the most popular method for displaying a project schedule is the __ due to ease of use and construction a) PERT b) CPM c) Gantt chart d) network diagram

c) Gantt chart

project bids and requests for proposal (RFPs) should begin with: a) customs, practices, and rules for the project b) a cover letter c) a short summary statement describing the project d) the definition of terms

c) a short summary statement describing the project

risk management's primary focus is on what type of activities? a) protecting the firm's money/profitability b) minimizing workforce injuries c) keeping the organization's problems from appearing in the local newspapers d) complex coordination of planning, risk identification, risk analysis, response planning, monitoring and control, and recording of incidents

d) complex coordination of planning, risk identification, risk analysis, response planning, monitoring and control, and recording of incidents

__ reserves are intended for "known unknowns" a) financial b) risk c) management d) contingency

d) contingency

the stewardship of Human Resources requires: a) controlling and monitoring the growth and development of people b) controlling and monitoring the hiring and training of people c) controlling and maintaining the hiring and training of people d) controlling and maintaining the growth and development of people

d) controlling and maintaining the growth and development of people

for projects, time is always __. a) free b) subject to negotiation with upper management c) the responsibility of trained time management experts d) critical resource

d) critical resource

the 2nd (1997) mars pathfinder and sojourner rover project achieved a 94% cost reduction over the earlier (1975) mars-lander mission due to: a) inflation of the US dollar b) deflation of the US dollar c) better-trained engineers d) design-to-cost method replacing the earlier design-to-performance method

d) design-to-cost method replacing the earlier design-to-performance method

cybernetic control systems are __. a) very difficult to implement b) relatively expensive and difficult to use c) positive feedback loops d) negative feedback loops

d) negative feedback loops

which of the following is strongly recommended for managing projects? a) microsoft project b) the normal distribution c) simulation d) no single tool is always recommended, the PM should investigate several appropriate tools

d) no single tool is always recommended, the PM should investigate several appropriate tools

what probability distribution is used to estimate the completion time for the critical path of a project? a) alpha b) beta c) gamma d) normal

d) normal

the use of Monte Carlo simulation: a) removes ambiguity in the project parameters b) reduces project risks c) saves time and money d) only provides a description of project uncertainties, but does not remove risk

d) only provides a description of project uncertainties, but does not remove risk

important parameters used to measure effectiveness of PM scheduling include: a) time and cost b) customer satisfaction & profit margin c) past due accounts & value of shipments d) schedule slippage, resource utilization, & in-process inventory

d) schedule slippage, resource utilization, & in-process inventory

the typical reasons for lack of scarce resources where and/or when needed are: a) poor planning by the pm b) management failure to act in a timely manner c) incompetence or laziness of staff d) supplier failure to deliver on time, or due to loss or theft of the scarce resources

d) supplier failure to deliver on time, or due to loss or theft of the scarce resources

of the choices below, which tool has the most significant influence on the management of projects? a) GANTT chart b) PERT chart c) Organization chart d) the schedule

d) the schedule

percent completion is important in EVA and its calculation is estimated by: a) the 50-50 rule b) the 0-100 percent rule c) the critical input use rule d) there is no universally accepted calculated for percent completion

d) there is no universally accepted calculation for percent completion

what is always certain in projects? a) they will be difficult but fun b) they provide stepping stones to promotion to upper management c) the PM will be respected by the line managers d) things will not go precisely as planned

d) things will not go precisely as planned

successful project monitoring systems (PMS) plan, monitor, and facilitate control of: a) budgets vs expenses b) project activities on PERT-CPM diagrams c) on-time delivery of products d) time versus schedule, cost versus budget, and performance versus planned scope

d) time versus schedule, cost versus budget, and performance versus planned scope

the result of completing one or more activities. an identifiable end state that occurs at a particular time. this does not use resources

event

the act of budgeting

is the allocation of scarce resources to the various endeavors of an organization.

how did the mars pathfinder and sojourner rover achieve cost reductions?

it was a design-to-cost project rather than a design-to-performance project. the mission was intentionally limited and "scope-creep" was never an issue.

the percentage of the previous worker hours per unit required for doubling the output

learning rate

a clearly identifiable point in a project or set of activities that commonly denotes a reporting requirement or completion of a large or important set of activities

milestone

the arrangement of all activities (and, in some cases, events) in a project arrayed in their logical sequence and represented by arcs and nodes.

network

the series of connected activities (or intermediate events) between any two events in a network

path