Project management Chapter 9

An activity's normal time and cost are 5 and $40, respectively. Its estimated crash time and cost are 4 and $70, respectively. This activity's crash cost per time unit is ________.

$30

An activity's normal time and cost are 8 and $100, respectively. Its estimated crash time and cost are 6 and $160, respectively. What is this activity's crash cost per time unit? A. $33 B. $30 C. $60 D. $65 E. $153

$30

Which of the following correctly calculates an activity's cost slope? A. (normal cost - crash cost)/(normal time - crash time) B. (crash cost - normal cost)/(normal time - crash time) C. (normal time - crash time)/(crash cost - normal cost) D. (normal time - crash time)/(normal cost - crash cost) E. (crash cost - normal cost)/(crash time - normal time)

(crash cost - normal cost)/(normal time - crash time)

Compressing activities on a project with a sensitive project network will: A. Increase risk of delaying the project. B. Improve cost-time crashing success. C. Reduce scheduling flexibility. D. Increase risk of delaying the project and reduce scheduling flexibility.

D. Increase risk of delaying the project and reduce scheduling flexibility.

Reducing project duration A. Involves crashing all activities to their crash point. B. Can only be done when resources are not constrained. C. Is always more expensive. D. Tends to increase network sensitivity. E. Should be considered for all projects.

D. Tends to increase network sensitivity.

As a project is crashed and project duration is reduced, indirect costs typically A. Increase. B. Become unstable. C. Decrease. D. Become unreliable. E. Stay the same.

Decrease

Which of the following projects would be least benefited if additional resources were added A. Splitting and stacking a cord of wood B. Developing new software C. Harvesting a crop by hand D. Building a cabin E. Moving to a new house

Developing new software

An activity's crash cost includes ________ costs. A. Direct B. Indirect C. Overhead D. Total E. Normal

Direct

In a Project Cost-Duration Graph, total project costs are a sum of A. Labor, material and equipment costs. B. Direct costs plus interest. C. Direct labor costs and the project manager's salary. D. Direct costs and the project manager's salary. E. Direct and indirect costs.

Direct and indirect costs

Which of the following is NOT a rational reason to reduce project duration? A. Incentive contracts B. High network sensitivity C. Imposed deadlines D. High overhead costs E. Unforeseen delays

High network sensitivity

It is going to cost $80,000 a day simply to house and feed a construction crew in the farthest reaches of northern Alaska. This would be an example of a situation requiring reducing the project duration due to A. Imposed project deadlines. B. Time to market. C. Unforeseen project delays. D. High overhead. E. Incentive contracts.

High overhead.

Emily has recently learned that she needs to reduce the duration of her project to meet an imposed deadline. She has calculated the crash cost per unit and knows the maximum units each activity can be reduced. What is the next step? A. Find the activity with the lowest crash cost B. Calculate the optimum cost-time point C. Calculate the crash point D. Identify the critical path E. Find the activity with the highest crash cost

Identify the critical path

A contractor finished a bridge across a lake 18 months early and received more than $6 million for the early completion. This is an example of reducing project duration caused by A. Imposed project deadlines. B. Time to market. C. Unforeseen project delays. D. High overhead. E. Incentive contracts.

Incentive contracts

As a project is crashed and project duration is reduced, direct costs typically A. Increase. B. Become unstable. C. Decrease. D. Become unreliable. E. Stay the same.

Increase.

_________ is the first thing to consider when deciding whether or not an activity can be crashed.

Inherent risk

In selecting the best activity to crash you would first select the activity with the A. Earliest start time. B. Most steep slope. C. Least steep slope. D. Longest duration. E. Largest crash time.

Least steep slope

The less steep the cost slope of an activity, the A. Less it costs to shorten one time period. B. More it costs to shorten one time period. C. Smaller the crash time is. D. Larger the crash time is. E. Cannot be determined by the information given.

Less it costs to shorten one time period.

The relationship between the normal point and the crash point is assumed to be A. Linear. B. Curvilinear. C. Variable. D. Conversely related. E. Exponentially related.

Linear

According to Brooks' Law, adding more people to a late project is most likely to have which of the following impacts? A. Keep the project from slipping any further B. Get the project back on schedule C. Make the project slip further D. Lead to burnout E. Decrease team motivation

Make the project slip further

Which of the following is NOT one of the more commonly used options for cutting project costs? A. Reduce project scope B. Have owner take more responsibility C. Move the completion date further out D. Brainstorm cost savings options E. Outsource project activities

Move the completion date further out

Before crashing, direct costs for an activity represent normal costs, which typically mean low-cost, efficient methods for completing the activity in a(n) ________ amount of time. A. Normal B. Budgeted C. Optimized D. Expected E. Targeted

Normal

Sometimes very high __________ costs are recognized before a project begins and reducing these costs through shorter project durations becomes a high priority. A. Labor B. Direct C. Project D. Overhead E. Interest

Overhead

All of the following are disadvantages of scheduling overtime EXCEPT A. Overtime is associated with additional costs of coordination and communication. B. Sustained overtime work by salaried employees may incur burnout. C. Productivity is reduced the longer one is working. D. More hours results in higher expenses if paying workers hourly. E. Continued overtime can lead to a higher turnover rate.

Overtime is associated with additional costs of coordination and communication

Intense global competition and rapid technological advances create pressure to develop projects rapidly. This is an example of reducing project duration caused by A. Imposed project deadlines. B. Time to market. C. Unforeseen project delays. D. High overhead. E. Incentive contracts.

Time to market.

When reducing project duration, the duration for a project that is optimal is at the point A. Direct costs are the lowest. B. Indirect costs are the lowest. C. Direct costs equal indirect costs. D. Total project costs are the lowest. E. The project changes from time-constrained to resource-constrained.

Total project costs are the lowest.

Adverse weather, design flaws, and equipment breakdown can create negative slack. This is an example of reducing project duration caused by A. Imposed project deadlines. B. Time to market. C. Unforeseen project delays. D. High overhead. E. Incentive contracts.

Unforeseen project delays

The direct cost for completing an activity as early as possible is called its ________ cost.

crash

Reducing the duration of an activity is called ________.

crashing

In order to shorten the duration of a project the project manager should limit the choices of activities to just those which are on the __________.

critical path

One way of reducing project costs is identifying tasks that _________ can do themselves.

customers

Costs such as labor, materials, equipment, or contractors are examples of ________ project costs.

direct

When crashing a schedule, this may set in when a least-cost method is used. A. increased risk B. fatigue and resentment C. increased cost D. decrease in available management reserve

fatigue and resentment

Without any formal planning, the president of a software company remarks in a speech that new technologically advanced software will be available in one year. This may lead to a project that must be done faster than anticipated. The completion date has been __________.

imposed

work package Because direct costs are assumed to be developed from normal methods and in a normal amount of time, any reduction in activity time should ________ the cost of the activity.

increase

Overhead costs such as supervision, administration, consultants, and interest are examples of ________ project costs.

indirect

The less steep the cost slope of an activity, the ________ it costs to shorten one time period

less

A reasonable, quick comparison between options for compressing activity times is based upon a _______________ assumption.

linear

Intense global competition and rapid technological advances combine to create a(n) ________-imposed project duration date.

market

The ________ time for an activity represents low-costs, realistic, efficient methods for completing the activity under typical conditions.

normal

Sometimes very high ________ costs are recognized before a project begins and reducing these costs through shorter project duration becomes a high priority.

overhead

When you schedule ________, you avoid the additional costs of coordination and communication when new people are added.

overtime

Creation of the ___________ graph keeps the importance of indirect costs in the forefront of decision making.

project cost-duration

As a project's duration is reduced, indirect costs are ___________.

reduced

There are fewer options available for reducing project time if you are __________________ than if you can spend more than your original budget.

resource control

When considering whether to move the project to its optimum cost-time position, the manager should also consider ________.

risk

An activity's ________ is calculated by dividing the rise by the run.

slope

When project managers know an activity's ________, they are able to compare which critical activities to shorten.

slope or crash cost per unit

The ________ project cost is the sum of the indirect and direct costs.

total

Direct costs are assignable directly to a particular ________.

work package

There are more options available for reducing project time if you are not resource constrained.

TRUE

Total cost for specific project durations is computed and then compared with the benefits of reducing project time, before the project begins or while it is in progress.

TRUE

When adding resources, there are limits as to how much speed can be gained.

TRUE

When determining which activity to crash, there are other factors that should be assessed beyond cost. Which of the following is NOT one of these factors? A. The inherent risk associated with the activity B. How crashing will impact the morale and motivation of the individuals working on that activity C. Resource availability after crashing that activity D. The level of difficulty involved in completing the activity E. When during the project the activity will occur

The level of difficulty involved in completing the activity

Without any formal planning, the president of a software company remarks in a speech that new technologically advanced software will be available in one year. This may lead to a project that must be done faster than anticipated. This is an example of reducing project duration caused by A. Imposed project deadlines. B. Time to market. C. Unforeseen project delays. D. High overhead. E. Incentive contracts.

A. Imposed project deadlines

One way of reducing project costs is identifying tasks that _________ can do themselves. A. Vendors B. Suppliers C. Customers D. Company employees E. Project teams

Customers

An insensitive project network has the benefit of A. Not increasing risk as activities are initially crashed. B. Having potential for real cost savings. C. Having potential for significant time savings. D. All of these choices are correct.

All of these choices are correct.

According to ________ law, adding more manpower to a late software project makes it later.

Brooks'

When the project team is salaried, which of the following is the preferred choice for accelerating project completion? A. Assigning additional staff and equipment B. Subcontract work C. Schedule overtime D. Outsource project work E. Establish a core project team

C. Schedule overtime

Which of the following is NOT a technique for accelerating project completion when resources are not constrained? A. Assign additional staff and equipment B. Establish a core team C. Do it twice-first fast and then correctly D. Reduce project scope E. Compromise quality

Compromise quality

The direct cost for completing an activity in the shortest time it can realistically be completed in is called its __________ cost. A. Normal B. Reserve C. Crash D. Accelerated E. Expedited

Crash

The shortest possible time an activity can be completed realistically is called ________ time A. Expedited B. Accelerated C. Crash D. Optimistic E. Optimal

Crash

Shortening an activity's duration is termed crashing.

TRUE

Which of the following is NOT considered a project indirect cost? A. Supervision B. Consultants C. Equipment D. Interest E. The project manager's salary

Equipment

When it is necessary to reduce project duration and resources are constrained, which of the following is NOT a reasonable option? A. Establishing a core project team B. Fast-tracking C. Reduce project scope D. Compromise quality E. Critical-chain project management

Establishing a core project team

Brooks' law states that adding manpower to a software project helps keep it on schedule.

FALSE

For most projects, the estimation of a crash time is relatively easy.

FALSE

Insensitive networks are a rarity; Planning for a sensitive network is more practical.

FALSE

Making the decision to crash is the result of careful fiscal analysis and deep understanding of the project.

FALSE

The cost slope of an activity is calculated by dividing the run by the rise.

FALSE

The higher the cost slope of an activity the lower the cost to reduce its duration.

FALSE

The total cost for each time unit of a project is the sum of labor, materials, and equipment

FALSE

When crashing an activity, you always crash to its crash point.

FALSE

When reducing project duration, there will always be an optimum cost-time point where the total cost of the project is less than it was when the project was initially planned under normal conditions.

FALSE

____________ is the rearranging of the project network logic so that critical activities are done in parallel rather than sequentially.

Fast-tracking

When reducing project duration, the crash cost per unit has to be calculated and the maximum units each activity can be reduced must be known. After this, the critical path must be identified. What is the next step? A. Find the activity with the lowest crash cost B. Calculate the optimum cost-time point C. Calculate the crash point D. Calculate indirect cost per time unit E. Find the activity with the steepest cost slope

Find the activity with the lowest crash cost

The accuracy of crash times and costs is frequently rough at best, when compared with normal time and cost.

TRUE

The simplest way to reduce cost on a project is to reduce the scope of a project.

TRUE

When a project manager must reduce project duration but resources are constrained, creating a software program that will have fewer features than originally planned or building a house without the bonus room the owner originally specified in the plans would both be examples of A. Fast-tracking. B. Using critical-chain project management. C. Reducing project scope. D. Compromising quality. E. Doing it twice-first fast and then correctly.

Reducing project scope.

Cost slope can be determined by dividing the A. Run by the rise. B. Rise by the run. C. Crash cost by the normal cost. D. Normal cost by the crash cost. E. Indirect cost by direct cost.

Rise by the run.

A project that has several near-critical or critical paths is said to be A. Elastic B. Fully consumed C. Inherently risky D. Sensitive

Sensitive

An activity must be crashed on each critical path in order to reduce project duration.

TRUE

Because direct costs are assumed to be developed from "normal" methods and in a "normal" amount of time, any reduction in activity time should add to the costs of the activity

TRUE

Crashing a more expensive activity may be wise if fewer inherent risks are involved.

TRUE

Crashing activities on a project network that is sensitive could increase the risk of the project being late.

TRUE

Crashing can negatively impact the morale and motivation of the project team.

TRUE

Crashing frequently results in over allocation of resources.

TRUE

Direct costs are so named because they can be assigned directly to a work package and activity

TRUE

If indirect costs are a significant percentage of total project costs, reductions in project time can represent very real savings.

TRUE

Incentive contracts can make the reduction of project time rewarding-usually for both the project contractor and owner.

TRUE

Indirect costs generally represent overhead costs such as supervision, administration, consultants, and interest.

TRUE

Managers have several effective methods for crashing specific project activities when resources are not constrained.

TRUE

One of the advantages of using a project cost-duration graph is that it keeps the importance of indirect costs in the forefront of decision making.

TRUE

Resources are frequently over-allocated when crashing a schedule

TRUE