MGMT 480 Exam 2

Technical constraints have been carefully considered when developing a project network. Which of the following is true at this point? A) Resources have been assigned to each activity so they are adequate to complete the project on time B) Activity 4 cannot be completed before activity 1 C) The project completion date can be established D) The project is ready to be implemented E) All of these are true statements once technical constraints have been established

B) Activity 4 cannot be completed before activity 1

Splitting an activity can result in all of the following EXCEPT A) Less people needed to work on an activity B) Possible startup and shutdown costs C) A resource may being moved from one activity to another and then back again D) Activity work being placed on hold for a period of time until more resources are available E) A better project schedule

A) Less people needed to work on an activity

Funds that are for identified risks that have a low probability of occurring and that decrease as the project progresses are called ______ reserves. A) Management B) Budget C) Contingency D) Padded E) Just in case

A) Management

Janet is forecasting how much money her department needs to support a new project. She estimates that two people and $25,000 in expenses will cover her needs. Because management typically insists on reducing forecasts by 20 percent, she increases her estimates to allow for that reduction. Which of the following factors is illustrated in this situation? A) Padding estimates B) Planning horizon C) Project structure D) People

A) Padding estimates

Activities which can take place at the same time are termed A) Parallel activity B) Critical path C) Burst activity D) Merge activity E) Independent activity

A) Parallel activity

A good starting point for developing time and cost estimates is A) Past experience B) Work packages C) Task analysis D) Time and motion studies E) Work breakdown structure

A) Past experience

Organizations use __________ in conjunction with work breakdown structures to help management teams identify and eventually analyze risk. A) Risk breakdown structures B) Contingency breakdown structures C) Scenario analysis D) Organizational breakdown structure E) Risk assessment

A) Risk breakdown structures

A list of questions that address traditional areas of uncertainty on a project is termed a A) Risk profile B) Questionnaire C) Research matrix D) Query E) Checklist

A) Risk profile

The cost impact of a risk event occurring as a project proceeds through its life cycle tends to A) Slowly rise B) Drop sharply and then level out C) Rise sharply and then level out D) Remain about the same E) Slowly drop

A) Slowly rise

In a resource-constrained project the second priority in assigning resources is usually given to activities with the A) Smallest duration B) Least slack C) Most slack D) Lowest identification number E) Highest cost

A) Smallest duration

Concurrent engineering, which has dramatically reduced the development time for new products, relies of what kind of lag? A) Start to Start lags B) Start to Finish lags C) Finish to Finish lags D) Finish to Start lags E) Any of these could be correct

A) Start to Start lags

In a resource-constrained project, which of the following is most likely to be changed? A) The completion date B) The budget C) Project quality D) Resource levels E) Scope creep

A) The completion date

These are all guidelines a project manager should consider when assigning project work EXCEPT A) Select people with compatible work habits and personalities B) Always assign the best people to the most difficult tasks C) When possible, team veterans up with new hires D) Select individuals with skillsets that complement each other E) Have people work together early so that they can become familiar with each other

B) Always assign the best people to the most difficult tasks

What is the relationship between organizational culture and estimating? A) There is no relationship B) Cultural norms affect the accuracy of estimates C) Culture determines whether estimates are made D) Estimating alters cultural norms E) Estimating and culture are independent

B) Cultural norms affect the accuracy of estimates

Which of the following can be used without coordinating with managers of succeeding activities? A) Total slack B) Free slack C) Critical float D) Float pad E) Slip pad

B) Free slack

Why is it necessary to have a time-phased budget baseline? A) It is needed for proper resource allocation B) It is needed in order to know how much work was accomplished for the money spent C) It is needed to reduce schedule slippage when scheduling multi-project resources D) It is not necessary to have a time-phased budget baseline E) It is needed to reduce fluctuations in cash flow during the project

B) It is needed in order to know how much work was accomplished for the money spent

Bill is building a project network that involves testing a prototype. He must design the prototype (activity 1), build the prototype (activity 2), and test the prototype (activity 3). Activity one is the predecessor for activity 2 and activity 2 is the predecessor for activity 3. If the prototype fails testing, Bill must redesign the prototype; therefore, activity 3 is a predecessor for activity 1. This is an example of A) Conditional statements B) Looping C) Having more than one start node D) Good network development E)Natural network flow

B) Looping

When translated into a project network, a work package will become A) A single activity B) One or more activities C) A milestone D) A critical path E) An arrow

B) One or more activities

The risk associated with the unlikelihood that one of the key members will be stuck by lightning would most likely be handled by which of the following? A) Mitigating B) Retaining C) Ignoring D) Transferring E) Avoiding

B) Retaining

_______________ focuses on how to respond to events that have a positive impact on a project. A) Risk management B) Risk management C) Value management D) Contingency management E) Prospect management

B) Risk management

When developing a new software package, logically, the software must be designed before the code is written, and the code must be written before it is tested. These activities are dependent on each other by _________ constraints. A) Physical B) Technical C) Resource D) Schedule E) Time

B) Technical

Tony has realized that two activities in his project cannot be done at the same time because not enough resources are available. Activity 3 is critical and has a duration of 5 days. Activity 4 has 2 days of slack and a duration of 2 days. How will he decide which activity should be scheduled first? A) The activity with the smallest duration B) The activity with the least slack C) The activity with the most slack D) The activity with the lowest identification number E) The activity with the highest cost

B) The activity with the least slack

A Fixed price contract is an example of ___________. A) Avoiding risk B) Transferring risk C) Accepting risk D) Ignoring risk E) Mitigating risk

B) Transferring risk

On a project network, the activity times are derived from the A) Organization breakdown structure B) Work packages C) Budget D) Project proposal E) Responsibility matrix

B) Work packages

Which of the following represents an activity on an AON project network? A) An arrow B) A line C) A node D) Both an arrow and a line E) An arrow, a line and a node all represent activities

C) A node

If, for some reason, the project must be expedited to meet an earlier date, which of the following actions would the project manager take first? A) Check to see which activities cost the least B) Check to see which activities have the longest duration C) Check to see which activities are on the critical path D) Check to see which activities have the most slack E) Check to see which activities have the highest risk

C) Check to see which activities are on the critical path

If a project has more than one activity that can begin when the project is to start a common start node should be used to indicate a clear project beginning on the network. Without a common start node, each path is a A) Critical path B) Parallel path C) Dangler path D) Multiple start path E) Confused path

C) Dangler path

The salary of the project manager would be an example of what type of cost found in a project? A) Labor B) Direct C) Direct project overhead D) General and administrative overhead E) Salary

C) Direct project overhead

The process of forecasting or approximating the time and cost of completing project deliverables is called A) Budgeting B) Predicting C) Estimating D) Planning E) Guesstimating

C) Estimating

Which of the following correctly calculates the late start for an activity? A) EF - DUR B) ES - DUR C) LF - DUR D) ES - SL E) LF - SL

C) LF - DUR

Sam, the project engineer, has been scheduled to run the product system test at the same time he is to build a marketing prototype. This is an example of what type of resource constraint? A) Physical B) Technical C) People D) Equipment E) Time

C) People

________ activities must be completed immediately before a particular activity. A) Merge B) Burst C) Predecessor D) Successor E) Parallel

C) Predecessor

termed a A) Random chance B) Disaster C) Risk D) Hazard E) Bad luck

C) Risk

Which of the following describes the consensus method? A) Only should be used for projects that require the same task, group of tasks, or product be repeated several times B) Uses several people with relevant experience regarding the task at hand to make time and cost estimates C) Uses pooled experience of senior and/or middle managers to estimate the total project duration and cost. D) Uses the number of square feet to estimate the total cost and time of the project E) Uses weighted macro variables or major parameters such as the number of inputs or outputs to estimate the total cost and time of the project

C) Uses pooled experience of senior and/or middle managers to estimate the total project duration and cost.

Resource leveling or smoothing can have all the following results on a project EXCEPT A) Lower peak resource demand B) Reduced resource need over the life of the project C) Reduced fluctuations in resource demand D) A longer project duration E) A more sensitive network

D) A longer project duration

Which of the following is provided by both the project network and the work breakdown structure? A) Dependencies B) Sequencing C) Interrelationships D) Activity duration E) Timing

D) Activity duration

Refining estimates may be necessary for a number of reasons. For example, a manager getting further into a project and obtaining a better understanding of what needs to be done to accomplish a project and meet the needs of the customer is an example of: A) Hidden interaction costs B) Things going wrong on a project C) Normal conditions not applying D) Changes in project scope E) There is never a good reason to refine estimates

D) Changes in project scope

Companies are using which of the following for improving the estimating process for future projects? A) Adjusting estimates based on individual forecasting abilities B) Benchmarking and using the experience of other companies C) Using time and motion studies D) Creating historical databases of previous projects E) Establishing an estimating training course for all employees

D) Creating historical databases of previous projects

Which of the following is NOT involved in risk control? A) Executing the risk response strategy B) Initiating contingency plans C) Establishing a change control system D) Establishing contingency funds E) Watching for new risks

D) Establishing contingency funds

Sean is forecasting the time and cost of developing a customized software program by looking at the number of inputs, outputs, inquires, files, and interfaces. Which of the following methods is he using? A) Ratio B) Template C) Apportion D) Function point E) Learning curve

D) Function point

Which of the following is a good condition for top-down estimating? A) Cost and time important B) Fixed price contract C) Customer wants details D) Internal, small project E) Large scale project involving several sub-contractors

D) Internal, small project

An activity that has more than one dependency arrow flowing into it is termed a(n) A) Parallel activity B) Critical path C) Burst activity D) Merge activity E) Independent activity

D) Merge activity

Rob is responsible for estimating a work package that has a significant amount of uncertainty associated with the time and cost to complete. Due to the uncertainty involved he will be making a low, an average and a high estimate. Rob is using which estimating approach? A) Parametric procedures applied to specific tasks B) Template method C) Apportion method D) Range estimating E) Learning curve

D) Range estimating

Which of the following is NOT one of the steps in the risk management process? A) Which of the following is NOT one of the steps in the risk management process? B) Risk assessment C) Risk identification D) Risk tracking E) Risk response control

D) Risk tracking

Resources are adequate, but demand varies widely over the life of the project. Delaying noncritical activities to lower peak demand on resources is known as resource A) Shifting B) Effectiveness C) Manipulating D) Smoothing E) Allocation

D) Smoothing

Which if the following does NOT help describe a bottom-up estimating approach? A) They are made by someone who uses experience and/or information from someone else to determine overall project cost and duration. B) They establish low-cost, efficient methods for completing activities C) They establish low-cost, efficient methods for completing activities D) Estimates are made at the work package level and then "rolled up" to determine estimates for major deliverables and for the project itself E) They can take place after the project has been planned in detail.

A) They are made by someone who uses experience and/or information from someone else to determine overall project cost and duration.

Change management systems are designed to accomplish all of the following EXCEPT A) Track all changes that are to be implemented B) Review, evaluate, and approve/disapprove proposed changes formally C) Identify expected effects of proposed changes on schedule and budget D) Reflect scope changes in baseline and performance measures E) All of these are examples of what change management systems are designed to accomplish

E) All of these are examples of what change management systems are designed to accomplish

Which of the following groups should NOT be a part of the risk identification process? A) Project team B) Customers C) Subcontractors D) Vendors E) All of these groups can be included in the risk identification process

E) All of these groups can be included in the risk identification process

Adopting proven technology instead of experimental technology in order to eliminate technical failure would be an example of which risk response? A) Mitigating B) Retaining C) Ignoring D) Transferring E) Avoiding

E) Avoiding

Which of the following will correctly calculate the total slack in an activity? A) LS - ES B) LF - EF C) LS - LF D) LF - ES E) Either LS - ES or LF - EF

E) Either LS - ES or LF - EF

The forward pass in project network calculations determines all of the following EXCEPT A) Earliest time an activity can begin B) Earliest time an activity can be finished C) Duration of the project D) The critical path E) How soon the project can be finished

E) How soon the project can be finished

All of the following are benefits of scheduling resources before project implementation EXCEPT: A) It allows time for considering reasonable options if resource constraints do exist B) The project completion date can be established C) Work packages can be time-phased D) It allows managers to share resources with other project managers if it is requested without negatively impacting their project. E) It ensures low network sensitivity

E) It ensures low network sensitivity

Which of the following would best represent direct project costs? A) Only labor B) Only materials C) Only equipment D) Both labor and materials E) Labor, materials and equipment

E) Labor, materials and equipment

Laura is forecasting the time and cost of developing an intranet for a new customer. Her department has completed six such intranets for customers during the last two years. Although the proposed system is about the same size as the others she estimates that it will take about 10 percent less time and money. Which of the following methods is she using? A) Ratio B) Template C) Apportion D) Function point E) Learning curve

E) Learning curve

Risks are evaluated in terms of A) Likelihood and cost B) Cost and schedule C) Impact and cost D) Time and impact E) Likelihood and impact

E) Likelihood and impact

In reviewing the status of her project with top management, Shirley was told that there are only two programmers that she can use for her project. Her project is classified as __________ constrained. A) Time B) Quality C) Cost D) Performance E) Resource

E) Resource

Which of the following is NOT a potential consequence of failing to identify limited resources before project implementation? A) Activity delays B) Project delays C) Difficulty in taking quick corrective action D) Increase costs E) Scope creep

E) Scope creep

The risk management tool that is divided into three color-coded zones representing major, moderate, and minor risks is the risk A) Assessment form B) Responsibility matrix C) Scenario assessment D) Impact assessment E) Severity matrix

E) Severity matrix

Most of the scheduling methods available today require the project manager to classify the project as either _______ constrained or ______ constrained. A) Time, quality B) Quality, resource C) Cost, time D) Quality, cost E) Time, resource

E) Time, resource

Reasons why estimating time and cost are important include all of the following EXCEPT A) To schedule work B) To determine how long the project should take and cost C) To develop cash flow needs D) To determine how well the project is progressing E) To help establish a project selection process

E) To help establish a project selection process