ISDS 3115,
If an activity whose normal duration is 15 days can be shortened to 10 days for an added cost of $2,000, the crash cost per period is
$400
If an activity whose normal duration is 13 days can be shortened to 10 days for an added cost of $1500, the crash cost per period is
$500 (look at 67)
A local project being analyzed by PERT has 42 activities, 12 of which are one the critical path. If the estimated time along the critical path is 105 days with a project variance of 25, the probablility that the project will be completed in 95 days or less is.
0.0228 (if need more practice-54)
A project being analyzed by PERT has 60 activities, 13 of which are on the path. If the estimated time along the critical path is 214 days with a project variance of 100, the probability that the project will take 224 days or more to complete is:
0.1587
Contract requirements state that a project must be completed within 180 working days, or it will incur penalties for late completion. Analysis of the activity network reveals an estimated project time of 145 working days with a project variance of 400. What is the probability that the project will be completed before the late payment deadline?
0.9599
Which of the following statements regarding CPM networks is TRUE?
If a specific project has multiple critical paths, all of them have the same duration.
Which OTF statements concerning the OM decision is relevant to services?
Labor standards vary depending on customer requirements
THe stage in the product life cycle at which it is a poor time to change quality is:
Maturity
The acronym MNC stands for
Multinational corporation
The Beta distribution is used in project management to
NONE OF THE ABOVE (calculate slack on activities not on the critical path, calculate the probability that a project will be completed within its budget, calculate pessimistic and optimistic activity times, and determine which activity should be crashed)
Which of the following statements regarding critical paths is true?
On a specific project, there can be multiple critical paths, all with exactly the same duration
Which of the following statements regarding PERT analysis is TRUE?
Only critical activities contribute to the project variance.
Which of the following statements best characterizes delivery reliability:
a company that always delivers at the promised time
WHich of these orgs is likely to have the most complex incentory decisions?
a computer manufacturing company
Which OTF is the best example of competing on low-cost leadership?
a firm produces its product with less raw material waste than its competitors
Which OTF is an example of competing on quick response?
a firm's products are introduced in the market faster than its competitors' products
Which OTF will more likely locate near their customers?
a medical clinic
Shortening the project's duration by deleting unnecessary activities is called "project crashing"
FALSE
The PERT pessimistic time estimate is an estimate of the minimum time an activity will require.
FALSE
The critical path can be determined by use of either the "forward pass" or the "backward pass".
FALSE
The shortest of all paths through the network is the critical path.
FALSE
The standard deviation of project duration is the average of the standard deviation of all activities on the critical path.
FALSE
Work Breakdown Structure is a useful tool in project mgt because it addresses the timing of individual work elements.
FALSE
Which of the following statements regarding Gantt charts is true?
Gantt charts are visual devices that show the duration of activities in a project.
Which of these companies is most apt to have quality standards that are relatively subjective?
Harvard University
The Beta distribution is used in project management to:
calculate expected activity times.
The three steps of the operations manager's job, in order, are:
develop the strategy, establigh the organizational structure, find the right staff
The ability of an organization to produce services that, by utilizing the consumer's five senses, have some uniqueness in their characteristics is
experience differentiation
Costs, quality, and HR decisions interact strongly with the ---------- decision.
goods and service deisgn
A code of ethics especially for project managers :
has been established by the Project Management Institute
WHich of the international operations strategies involves low cost reductions and low local local responsiveness?
international strategy
Which of the international operations strategies uses import/export or licensing of existing products?
international strategy
Experience Differentiation
is an extension of product differentiation in the service sector
Divulging information to some bidders on a project to give them an unfair advantage
is known as bid rigging
When developing the operations strategy for a new manufacturing organization, one of the most important considerations is that it:
supports the overall competitive strategy of the company
Which OTF preconditions does NOT affect the formulation of an OM strategy?
the company's employee's benefits
Catepillar and Texas INstruments are two firms that have benefited from the use of:
the global strategy option
Analysis of a PERT problem shows the estimated time for the critical path to be 108 days with a variance of 64. There is a .90 probability that the project will be completed before approximately day
118 (if need more 60)
An activity on a PERT network has these time estimates: optimistic=1, most likely=2, and pessimistic=5. Its expected time is
2.33
An activity on a PERT network has three time estimates: optimistic=2, most likely=3, and pessimistic=8. Its expected time and variance (if its a critical activity) are
3.67, 1
An activity on a PERT network has these time estimates: optimistic=2, most likely=5, and pessimistic=10. Its expected time is
5.33
Which of the following is an example of competing on the basis of differentiation?
A firm offers more reliable products than its competitors do
A project organization
A and E are both true (is effective for companies with multiple large projects AND is formed to ensure that programs/projects get proper management and attention)
Which of the following statements regarding Bechtel is TRUE?
ALL OF THE ABOVE ARE TRUE (its competitive advantage is project management, Bechtel was the construction contractor for the Hoover Dam, bechtel's procurement program is global in nature, AND while helping to rebuild Iraq, Bechtel's crews had to travel under armed escort)
Which of the following statements regarding CPM is true?
All activities on the critical path have their LS equal to their predecessors EF
Which of the following are examples of transnational firms?
All of the above (Nestle, Asea Brown Boveri, Reuters, Citicorp)
Which of the following statements about Bechtel is true?
Bechtel is the world's premier manager of massive construction and engineering project
The-------distribution is used by PERT analysis to calculate expected activity times and variances.
Beta
Which of the following statements is most correct?
CSF's are often necessary, but not sufficient for competitive advantage
Which of the following statements regarding time-cost tradeoffs in CPM networks is FALSE?
Crashing sometimes has the reverse result of lengthening the project duration
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 tru?
D is critical, and has zero slack.
PERT, but not CPM, has the ability to consider the precedence relationships in a project.
FALSE
The findamental difference between PERT and CRM is that PERT uses the beta distribution fo rcrashing projects while CPM uses cost estimates.
FALCE
A project organization works best for an organization when the project resides in only one of its functional areas.
FALSE
What was the name of the construction project to rebuild the Pentagon after the terrorist attacks on Sept. 11, 2001?
Project Phoenix
Which of the following statements regarding project management is false?
Project organization works well when the work contains simple, independent tasks.
By their very nature, projects have a limited lifetime, and that sets project mgt apart from the mgt of more traditional activites.
TRUE
Ethical issues which can arise in projects include bid rigging, bribery, and "low balling".
TRUE
Every network has at least one critical path.
TRUE
Gantt charts give a timeline of a project's activities, but do not adequately show the interrelationship of activities.
TRUE
In PERT analysis, the identification of the critical path can be incorrect if a noncritical activity takes substantially more than its expected time.
TRUE
In project management, crashing an activity must consider the impact on all paths in the network.
TRUE
One phase of a large project is scheduling.
TRUE
One responsibility of a project manager is to make sure that the project meets its quality goals.
TRUE
Project mangers have their own code of ethics, established by the Project Management Institute.
TRUE
Slack is the amount of time an activity can be delayed without delaying the entire project.
TRUE
The ES of an activity that only has one predecessor is simply the EF of that predecessor.
TRUE
A simple CPM network has three activities, A, B, and C. A in an immediate predecessor of B and C. B is an immediate predecessor of C. The activity durations are A=4, B=3, C=8.
The critical path is A-B-C, duration 15.
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, and F=8.
The critical path is D-E-F, duration 15
Activity M on a CPM network has predecessors N and R, and has sucessor S. M has duratino 5. N's late finish is 18, while R's is 20. S's late start is 14. Which of the following is true?
The last start time of S is impossible.
Which of the following statements concerning CPM activities is FALSE?
The late finish of an activity is the earliest late start of all preceding activities.
Which of the following statements regarding PERT times is true?
The optimistic time is an estimate of the minimum time an activity will require.
Which of the folllowing statements regarding PERT times is TRUE?
The probablye time estimate is calculates as t= (a + 4m +b)/6
A simple CPM network has five activities, A, B, C, D, and E. A is an immediate predecessor of C and D. B is an immediate predecessor of C and of D. C and D are both immediate predecessors of E.
There are four paths in this network.
A strategy is an:
action plan to achieve the mission
Which of the following best describes "experience differentiation"?
all are elements of experience differentiation (immerses consumers in the delivery of a service, uses people's five senses to enhance the service, complements physical elements with visual and sound elements, AND consumers may become active participants in the product or service)
Ethical issues that may arise in projects large and small include:
all of the above (bid rigging, expense account padding, compromised safety or health standards, AND bribery
Response-based competitive advantage can be
all of the above (flexible response, reliable response, and quick response)
Franz Colruyt has achieved low-cost leadership through:
all of the above (Spartan HQ, absence of voicemail, low-cost facilities, no background music)
Which of these is NOT on of the the PIMS characteristics of high ROI organizations?
all of the above are PIMS characteristics (high product quality, high capactity utilization, low investment intensity, and low direct cost per unit)
Which OTF influences layout deisgn?
all of the above influences lay out design (inventory requirements, capacity needs, personnel levels, technology decisions)
Which of these organizations is likely to have the most important inventory decision?
an aluminum manufacturer
In a PERT network, non-critical activities that have little slack need to be monitored closely
because near-critical paths could become critical paths with small delays in these activities
Which OTF changes does NOT result in strategy changes?
change in job scheduling techniques
The PIMS programs has identified the
characteristics of firms with high "ROI"
Franz Colruyt has achieved low-cost leadership through
converting factories, garages, and theaters into retail outlets
Given the position of the iPod in the growth stage of its life cycle, which of the following OM Strategies/Issues should the makers of iPods be least concerned with at the current time?
cost cutting
Which of these statements regarding time-cost tradeoffs in CPM networks is TRUE?
crashing shortens the project duration by assigning more resources to one or more of the critical tasks.
Cost minimization is an appropriate strategy in which stage of the product life cycle?
decline
Which OTF OM strategic decisions pertains to sensible location of processes and materials in relation to each other?
layout design
All of these preconditions affect an operations management strategy except:
maintenance policies
Standardization is an appropriate strategy in which stage of the product life cycle?
maturity
A network has been crashed to the point where all activities are critical. Additional crashing:
may require crashing multiple tasks simultaneously
Which of the international operations strategies uses the existing domestic model globally?
multidomestic strategy
The phases of project management are:
planning, scheduling, and controlling
Understanding competitors' strengths and weaknesses, understanding current and prospective technological issues, and understanding product life cycle are examples of:
precondition to establishing and implementing a strategy
Which OTF is NOT an operations strategic decision?
price
The expected activity time in PERT analysis is calculated as
the weighted average of A, M, and B, with M weighted 4 times as heavily as A and B
Which of the international operations strategies involves high cost reductions and high local responsiveness?
transnational strategy