Chapter 9 MSOM
8) Ethical issues which can arise in projects include gifts from contractors, pressure to mask delays with false status reports, and pressure to compromise project quality for cost or time savings.
A
8) Servicescape refers to the physical surrounding in which the service is delivered.
A
1) The ES of an activity that has only one predecessor is simply the EF of that predecessor.
A
12) A process-oriented layout is the traditional way to support a product differentiation strategy.
A
10) Cross-docking processes items as they are received, rather than placing them in storage; this helps explain why "warehouses" are now called "distribution centers."
A
2) One phase of a large project is scheduling.
A
13) Job lots are groups or batches of parts processed together.
A
22) A simple CPM network has three activities, D, E, and F. D is an immediate predecessor of E and of F. E is an immediate predecessor of F. The activity durations are D=4, E=3, F=8. A) The critical path is D-E-F, duration 15. B) The critical path is D-F, duration 12. C) Slack at D is 3 units. D) Slack at E is 3 units. E) Both A and C are true.
A
24) If the schedule calls for the production of 120 units per day and 480 minutes of production time are available per day, the maximum cycle time would be 4 minutes.
A
26) One drawback of a product-oriented layout is that work stoppage at any one point ties up the whole operation.
A
27) Cycle time is the maximum time that the product is allowed at each workstation.
A
34) Which of the following statements regarding PERT times is true? A) The optimistic time estimate is an estimate of the minimum time an activity will require. B) The optimistic time estimate is an estimate of the maximum time an activity will require. C) The probable time estimate is calculated as t = (a + 4m + b). D) Pessimistic time estimate is an estimate of the minimum time an activity will require. E) Most likely time estimate is an estimate of the maximum time an activity will require.
A
4) By their very nature, projects have a limited lifetime, and that sets project management apart from the management of more traditional activities.
A
4) The phases of project management are A) planning, scheduling, and controlling B) planning, programming, and budgeting C) planning, organizing, staffing, leading, and controlling D) different for manufacturing projects than for service projects E) GANTT, CPM, and PERT
A
5) One responsibility of a project manager is to make sure that the project meets its quality goals.
A
6) One guideline for a retail layout is to locate high-draw items around the periphery of the store.
A
12) The fundamental difference between PERT and CPM is that PERT uses the beta distribution for crashing projects while CPM uses cost estimates.
B
16) The PERT pessimistic time estimate is an estimate of the minimum time an activity will require.
B
17) The standard deviation of project duration is the average of the standard deviation of all activities on the critical path.
B
18) The balancing of work cells uses the same procedures as the balancing of an assembly line.
B
19) A focused work center is well suited to the production of a large family of products requiring similar processing, even if their demands are not very stable.
B
19) Shortening the project's duration by deleting unnecessary activities is called "project crashing."
B
2) The objective of layout strategy is to A) minimize cost B) develop an efficient and effective system that meets competitive requirements C) maximize flexibility D) minimize space used E) minimize material handling costs
B
5) Utilization of the total "cube" is the dominant consideration in office layout.
B
6) Deloitte & Touche solved the empty desk problem by A) assigning permanent desks B) implementing a "hoteling" program C) creating open offices D) no longer allowing employees to work from home E) none of the above
B
6) Work Breakdown Structure is a useful tool in project management because it addresses the timing of individual work elements.
B
13) What is the primary reason why retailers tend to locate high-draw items around the periphery of the store? A) More shelf space for those popular items is available around the periphery. B) There will be less congestion of customers than there would be in the middle. C) This arrangement will help to maximize customer exposure to other items in the store. D) It is easier to put large advertisement signs on the outside walls right next to the items. E) This arrangement allows customers to travel through the store as quickly as possible.
C
15) For which of the following operations would a fixed-position layout be most appropriate? A) assembling automobiles B) producing TV sets C) constructing a highway tunnel or bridge D) refining of crude oil E) running an insurance agency
C
15) Which of the following statements regarding Gantt charts is true? A) Gantt charts give a timeline and precedence relationships for each activity of a project. B) Gantt charts use the four standard spines of Methods, Materials, Manpower, and Machinery. C) Gantt charts are visual devices that show the duration of activities in a project. D) Gantt charts are expensive. E) All of the above are true.
C
17) Which of the following is not one of the factors complicating the techniques for addressing the fixed position layout? A) The volume of materials is dynamic. B) At different stages of a project, different materials are needed; therefore, different items become critical as the project develops. C) Takt times at workstations are dynamic. D) There is limited space at virtually all sites. E) All of the above are complicating factors.
C
19) One of the major advantages of process-oriented layouts is A) high equipment utilization B) large work-in-process inventories C) flexibility in equipment and labor assignment D) smooth and continuous flow of work E) none of the above
C
5) A hospital's layout most closely resembles which of the following? A) product oriented B) work cell C) job shop D) project E) none of the above
C
7) Which of the following statements regarding project management is false? A) Gantt charts give a timeline for each of a project's activities, but they do not adequately illustrate the interrelationships between the activities and the resources. B) A project organization works best for a project that is temporary but critical to the organization. C) A project organization works well when the work contains simple, independent tasks. D) Gantt charts and PERT/CPM are never used together. E) All of the above are false.
C
5) Which of the following is not one of the three phases of project management? A) planning B) scheduling C) controlling D) All of the above are project management phases. E) Both A and C are not project management phases.
D
8) "A special arrangement of machinery and equipment to focus on production of a single product or group of related products" describes what layout type? A) fixed-position layout B) intermittent production C) job shop D) work cell E) warehouse layout
D
3) The main goal of retail layout is A) minimizing material handling cost B) maximizing high-margin sales C) minimizing storage costs D) minimizing space required E) maximizing profitability per square foot of floor space
E
3) Which of the following projects were completed by Bechtel? A) Hoover Dam B) Boston Central Artery/Tunnel C) Rebuilding Kuwait after Iraq's invasion in 1990 D) Rebuilding Iraq after the U.S. invasion, starting in 2003 E) All of the above were Bechtel projects
E
4) Which layout's main objective is to equalize the task time for each station? A) work cell B) fixed position C) process oriented D) job shop E) product oriented
E
6) A project organization A) is effective for companies with multiple large projects B) is appropriate only in construction firms C) often fails when the project cuts across organizational lines D) is formed to ensure that programs (projects) get proper management and attention E) A and D are both true
E
7) The layout strategy that deals with low-volume, high-variety production is A) fixed-position layout B) retail layout C) warehouse layout D) office layout E) none of the above
E
9) A good layout requires determining A) material handling requirements B) capacity and space requirements C) environment and aesthetics D) cost of moving between various work areas E) all of the above
E
Multiple Choice 1) Which of the following statements regarding Bechtel is true? A) Its competitive advantage is project management. B) Bechtel was the construction contractor for the Hoover Dam. C) While helping to rebuild Iraq, Bechtel's crews had to travel under armed escort. D) Bechtel's procurement program is global in nature. E) All of the above are true.
E
1) McDonald's "Made for You" kitchen system represents a strategic layout decision even though an obvious benefit of the system is a dramatic reduction in the inventory of food prepared in advance.
A
13) Match the following steps in Microsoft's development of Windows 7 to their respective WBS level. Step Develop Windows 7 OS System Testing Compatible with Windows XP Develop GUI's Module Testing A) Level 1, Level 2, Level 4, Level 3, Level 3 B) Level 1, Level 2, Level 3, Level 4, Level 5 C) Level 0, Level 1, Level 2, Level 3, Level 4 D) Level 0, Level 2, Level 2, Level 3, Level 3 E) None of the above patterns is correct.
A
13) Slack is the amount of time an activity can be delayed without delaying the entire project.
A
14) A combination of effective Gantt chart use and other tactics allowed Delta to cut the average time for a plane layover by what % of the original 60 minute duration? A) 33%, to 40 minutes B) 50%, to 30 minutes C) 20%, to 48 minutes D) 25%, to 45 minutes E) 40%, to 36 minutes
A
14) Every network has at least one critical path.
A
16) The most common tactic to arrange departments in a process-oriented layout is to minimize material handling costs.
A
17) A project manager is interested in crashing a project with variable activity times. Which of the following tools should he/she employ? A) PERT B) CPM C) Gantt Chart D) either PERT or CPM E) PERT, CPM, or a Gantt chart are fine
A
17) The work cell improves process layouts by reducing floor space and by reducing direct labor cost.
A
18) In PERT analysis, the identification of the critical path can be incorrect if a noncritical activity takes substantially more than its expected time.
A
18) The type of layout which features departments or other functional groupings in which similar activities are performed is A) process-oriented B) product-oriented C) fixed-position D) mass production E) unit production
A
2) The objective of layout strategy is to develop an effective and efficient layout that will meet the firm's competitive requirements.
A
20) In project management, crashing an activity must consider the impact on all paths in the network.
A
21) A simple CPM network has three activities, A, B, and C. A is an immediate predecessor of B and of C. B is an immediate predecessor of C. The activity durations are A=4, B=3, C=8. A) The critical path is A-B-C, duration 15. B) The critical path is A-C, duration 12. C) The critical path is A-B-C, duration 13.5 D) The critical path cannot be determined without knowing PERT expected activity times. E) The network has no critical path.
A
7) Category management is the use of computer software to evaluate the profitability of merchandising plans.
A
7) Project managers have their own code of ethics, established by the Project Management Institute.
A
8) A code of ethics especially for project managers A) has been established by the Project Management Institute B) has been formulated by the Federal government C) has been formulated by the World Trade Organization D) is inappropriate, since everyone should use the same guidance on ethical issues E) does not exist at this time
A
9) Gantt charts give a timeline for each of a project's activities, but they do not adequately illustrate the interrelationships between the activities and the resources.
A
9) One guideline for determining the arrangement and space allocation of a retail store is to place high-impulse and high-margin items such as housewares and beauty aids in prominent locations.
A
Multiple Choice 1) Which of the following is not one of McDonald's "seven major innovations"? A) the Happy Meal B) drive-through windows C) breakfast menus D) play areas E) "Made by You" kitchen system
A
10) PERT, but not CPM, has the ability to consider the precedence relationships in a project.
B
11) A project organization that becomes permanent is often referred to as a __________. A) fixed project organization B) matrix organization C) normal organization D) standard organization E) none of the above
B
11) The dominant problem associated with the fixed-position layout is that workers are fixed in position, and cannot be reassigned.
B
11) The shortest of all paths through the network is the critical path.
B
14) Process-oriented layouts typically have low levels of work-in-process inventory.
B
15) CRAFT is software for balancing assembly lines.
B
15) The critical path can be determined by use of either the "forward pass" or the "backward pass."
B
2) Which of the following statements about Bechtel is true? A) Even though Bechtel is over 100 years old, the Kuwaiti oil fields was its first "project." B) Bechtel is the world's premier manager of massive construction and engineering projects. C) Bechtel's competitive advantage is supply-chain management. D) While its projects are worldwide, its network of suppliers is largely in the U.S. E) All of the above are true.
B
20) A fabrication line and an assembly line are both types of repetitive and product-focused layout, but only the fabrication line utilizes workstations.
B
20) The main issue in designing process layouts concerns the relative positioning of A) safety devices B) departments C) raw materials D) entrances, loading docks, etc. E) supervisors to their employees
B
21) The biggest advantage of a product layout is its flexibility to handle a varied product mix.
B
22) The minimum number of workstations depends upon the set of task times and the precedence chart, but not the number of units scheduled.
B
23) A product requires 24 separate tasks, and the sum of those task times is 14 minutes; if the cycle time is 2 minutes, then at least 12 workstations will be needed.
B
23) A simple CPM network has five activities, A, B, C, D, and E. A is an immediate predecessor of C and of D. B is also an immediate predecessor of C and of D. C and D are both immediate predecessors of E. A) There are two paths in this network. B) There are four paths in this network. C) There are five paths in this network. D) There are 25 paths through this network. E) None of these statements is true.
B
25) Product-oriented layouts tend to have high levels of work-in-process inventories.
B
28) Heuristics are problem-solving procedures that mathematically optimize the solution.
B
28) The time an activity will take assuming very unfavorable conditions is A) the optimistic time B) the pessimistic time C) the activity variance D) the minimum time E) exactly twice as long as the expected time
B
3) A project organization works best for an organization when the project resides in only one of its functional areas.
B
3) The work cell layout, a special arrangement of machinery and equipment to focus on the production of a single product or group of related products, is for manufacturing applications and has no relevance to services.
B
4) The layout approach that addresses trade-offs between space and material handling is called the fixed position layout.
B
10) The project organization works best when which of the following conditions are satisfied? I. II. III. IV. V. A) I,II,III,IV,V B) None of the above conditions need to be satisfied C) I,III,V D) I,II,III,V E) I,III,IV,V
C
26) Activity R on a CPM network has predecessors M and N, and has successor S. R has duration 5. N's late finish is 18, while M's is 20. S's late start is 14. Which of the following is definitely true? A) R is critical and has zero slack. B) R has no slack but is not critical. C) The set of given times cannot all be possible. D) N is a critical activity. E) S is a critical activity.
C
35) Which of the following statements regarding PERT times is true? A) The expected time is an estimate of the time an activity will require if everything goes as planned. B) The optimistic time estimate is an estimate of the maximum time an activity will require. C) The expected time estimate is calculated as t = (a + 4m + b)/6. D) The pessimistic time estimate is an estimate of the minimum time an activity will require. E) The most likely time estimate is an estimate of the maximum time an activity will require.
C
12) WBS stands for which of the following project management tools? A) Work Break Schedule B) Work Breakdown Status C) Work Breakdown Schedule D) Work Breakdown Structure E) None of the above
D
14) The fixed-position layout would be most appropriate in which of the following settings? A) a fast-food restaurant B) a doctor's office C) a casual dining restaurant D) a cruise ship assembly facility E) none of the above
D
16) Because problems with fixed-position layouts are so difficult to solve well onsite, operations managers A) virtually never employ this layout strategy B) utilize this approach only for construction projects such as bridges and office towers C) increase the size of the site D) often complete as much of the project as possible off-site E) utilize this layout only for defense contractors
D
19) Which of the following statements regarding critical paths is true? A) The shortest of all paths through the network is the critical path. B) Some activities on the critical path may have slack. C) Every network has only one critical path. D) On a specific project, there can be multiple critical paths, all with exactly the same duration. E) The duration of the critical path is the average duration of all paths in the project network.
D
20) Which of the following statements regarding CPM is true? A) The critical path is the shortest of all paths through the network. B) The critical path is that set of activities that has positive slack. C) Some networks have no critical path. D) All activities on the critical path have their LS equal to the maximum EF of all immediate predecessors. E) All of the above are false.
D
21) Which of the following is not an information requirement for solving a load-distance problem? A) a list of departments or work centers B) a projection of work flows between the work centers C) the distance between locations D) a list of product cycle times E) the cost per unit of distance to move loads
D
22) The major problem addressed by the process-oriented layout strategy is A) the movement of material to the limited storage areas around the site B) requiring frequent contact close to one another C) the provision of low-cost storage with low-cost material handling D) minimizing difficulties caused by material flow varying with each product E) balancing product flow from one work station to the next
D
24) Activity D on a CPM network has predecessors B and C, and has successor F. D has duration 6. B's earliest finish is 18, while C's is 20. F's late start is 26. Which of the following is definitely true? A) B is a critical activity. B) C is completed before B. C) D has no slack but is not critical. D) D is critical and has zero slack. E) F is critical and has zero slack.
D
25) Which of the following statements regarding CPM networks is true? A) There can be multiple critical paths on the same project, all with different durations. B) The early finish of an activity is the latest early start of all preceding activities. C) The late start of an activity is its late finish plus its duration. D) If a specific project has multiple critical paths, all of them will have the same duration. E) All of the above are false.
D
27) Which of the following statements concerning CPM activities is false? A) The early finish of an activity is the early start of that activity plus its duration. B) The late finish is the earliest of the late start times of all successor activities. C) The late start of an activity is its late finish less its duration. D) The late finish of an activity is the earliest late start of all preceding activities. E) The early start of an activity is the latest early finish of all preceding activities.
D
10) Retail layouts thrive on the notion that A) handling costs should be minimized B) storage costs should be minimized C) average customer visit duration should be maximized D) space used should be minimized E) maximizing customer exposure rate maximizes sales and profit
E
11) Slotting fees A) are charged by retailers to stock a product B) can amount to as much as $25,000 C) are not a part of Wal-Mart's business practices D) can reduce the ability of small businesses to introduce new products E) all of the above
E
12) Which of the following is not a retail layout practice? A) high-draw items along periphery B) distribute power items throughout store C) end-aisle locations are used to maximize product exposure D) high-margin and impulse items in prominent locations E) All of the above are retail layout practices.
E
16) The main difference between PERT and CPM is that A) PERT is more accurate than CPM B) PERT assumes that activity durations are known C) PERT ignores activity costs D) CPM assumes that activity durations can vary E) None of the above are true
E
18) The difference between AON and AOA networks is that A) AOA networks sometimes require dummy activities B) nodes consume no resources or time in AOA networks C) both are acceptable in practice, however Microsoft Project uses AON D) in AON nodes designate activities, in AOA arrows designate activities E) All of the above are true.
E
9) Ethical issues that may arise in projects large and small include A) gifts from contractors B) exaggerated expense reports C) compromised safety or health standards to save time or reduce costs D) pressure to mask delays with false status reports E) all of the above
E
