MGT 383 Exam #2
Critical path tasks always have zero slack.
True
The shortest time to complete a network is equal to the duration of the longest path through the network.
True
The simulation approach is generally preferred over the statistical method.
True
When the work is routine fast tracking rarely causes serious problems.
True
Which of the following rules maximizes the number of tasks that can be completed by a system in a given period of time?
shortest task duration first
Tradeoffs must be made in order to optimize the use of limited resources.
true
The tasks of project planning project budgeting and project scheduling are largely separable from one another.
False
The time to complete a task with normal or standard practice resource usage is referred to as the crash duration.
False
There is no way other than guessing to estimate the impact of learning on a projects task.
False
To manage a project successfully the project manager need only pay close attention to tasks on the critical path.
False
Top down budgeting typically results in better acceptance of the budget.
False
Traditional organizational budgets are task oriented rather than activity oriented.
False
When crashing a task the usual assumption is that a task is crashed the full amount or none at all.
False
When it was originally developed PERT used certain deterministic methods to estimate activity duration.
False
With top down budgeting overlooking a small but important task can often cause a serious budgetary problem.
False
A limitation associated with traditional approaches to project management is that the dependency between resources and tasks is often ignored.
True
A project schedule is a project action plan converted into a timetable.
True
A situation where two or more activities have the same starting and finishing nodes or where a single activity connects to two or more nodes is called a dummy task.
True
A tasks duration is a function of both the amount of labor required to complete the task as well as the calendar time required to complete it.
True
AON and AOA networks can both be used to depict any project network.
True
According to research minimum slack rule is the overall best priority rule.
True
Activities that have duration but do not require resources are referred to as pseudoactivities.
True
All projects are carried out under conditions of uncertainty.
True
Bottom up budgets are usually more accurate in the detailed tasks.
True
Budget cuts are usually disastrous to an exponential lifecycle project.
True
Budgeting a project is often more difficult than budgeting routine activities.
True
Events in a project consume no resources or time.
True
Expected value is a tool for risk analysis.
True
Float refers to the amount of time a noncritical task can be delayed without causing a delay in the entire project.
True
If resources were not scarce the resource allocation problem would be concerned solely with profit maximization.
True
In general steady state demand for human resources is highly desirable.
True
Individual elements of project budgets are generally more accurate in bottom up budgeting.
True
It is considered good management to crash the least costly activities before the more costly ones.
True
Learning curve theory states that performance of labor per unit will improve by a fixed percentage each time production doubles.
True
Learning curves can be used to help improve cost estimates.
True
Merger is a term used to describe the situation in which two or more paths in a network join together.
True
Microsoft Project allows the project manager to create an individual availability calendar for each resource on the project.
True
Most organizations use top down budgeting.
True
Organizations can use both top down and bottom up budgeting.
True
Project budget is nothing more than the project plan based on the WBS expressed in monetary terms.
True
Projects often compete with each other for the same resources.
True
Resource loading refers to the amounts of specific resources that are scheduled for use on specific activities or projects at specific times.
True
Standard Pert/CPM networks can be used to resolve probabilistic concerns.
True
Technical dependencies are often harder to see on a Gantt chart than on a PERT/CPM network.
True
The actual project duration will be known with certainty after the project is completed.
True
The amount of resources a project can use depends in part on the timing of the allocation.
True
The amount of time an activity can be delayed without affecting the start time of any successor activity is known as free slack.
True
The difference between LFT and EFT is called slack.
True
The difference between the LST and EST is called slack.
True
The formula for the expected time of an activity in a network assumes that the optimistic pessimistic and most likely time estimates have a Beta distribution.
True
The process of line balancing is when individual production lines are made to generate the required amount of product with a little excess capacity as possible.
True
The project budget acts as a project control.
True
The variance of the normal time can be quite different from the variance of the crash time.
True
Starting the building phase before the design and planning phases is called...
fast tracking
The safety time added to chains other than the critical chain is called:
feeding buffer
Samuel a project manager and Martha his subordinate are working on a project. In the budgeting phase Samuel is responsible for estimating the costs for Level 1 tasks and Martha is responsible for estimating the costs for Level 2 tasks. While collating the data Samuel finds that the total estimated cost for Level 1 tasks is much lower than the total estimated cost for Level 2 tasks. Which of the following is a reason for this discrepancy?
jobs always look easier faster and cheaper to the project manager than to the subordinates who have to do them.
Which of the following is not considered a resource? Which of the following is not commonly used to help select a priority rule? {~ schedule slippage ~ resource utilization ~ in process inventory = cost overruns ~ all of the above are used}
material
Which of the following statements is not true about a firm and its project accounting?
the project manager must rely on the accounting department to make special allowances for his/her project.
The CPM method cannot be used when task durations are probabilistic.
False
The PMI does not devote much coverage to risk management in the PMBOK.
False
The as late as possible priority rule is considered the standard scheduling rule.
False
The best approach to handling change in projects is to accept the negative change and take a loss on the project.
False
The difference between EST and LFT is called slack.
False
The difference between LST and LFT is called slack.
False
The movement from left to right through the network beginning with the start node that calculates the LS and LF for each activity is known as FORWARD PASS.
False
The project manager recognizes an expense when an invoice is actually paid.
False
The projects budget is merely the sum of its resource costs.
False
The shortest duration task first rule minimizes the number of tasks that can be completed by s system in a given time period.
False
The start to finish linkage is used in situations where is it desirable for two or more activities to finish at the same time.
False
A budget is a plan for allocating resources.
True
A diagram of nodes connected by directional arcs that defines the project and illustrates the technical of all activities is referred to as a network.
True
A disaster is an event that may have an extraordinarily high cost if it occurs but has a very low probability of occurring.
True
A key advantage of top down budgeting is that the overall budget costs can be estimated quite accurately.
True
If resources were not scarce the resource allocation problem would be concerned solely with cost minimization.
False
Networks are usually drawn with a Start node to the right and a Finish node to the left.
False
Often it is beneficial to crash activities not on the critical path.
False
One limitation of Microsoft Project is that all resources must share the same availability calendar.
False
Organizational tradition has little or no impact on the firms project budgeting.
False
Overhead and indirect charges should not be assigned to a project.
False
Pools of like resources from which labor can be added temporarily to projects tend to increase costs for the firm as a whole.
False
Pools of like workers are most useful when labor is subdivided into highly specialized subtasks.
False
A task has a normal duration of 9 days and a crash duration of 7 days. Its normal cost is $40 and its crash cost is $100. What is the crash cost per day?
$30
What is the standard deviation of a task with optimistic most likely and pessimistic times of 3 4 and 7 days respectively assuming the estimates were made at the 99% plus level?
.667
Pogmon Solutions a computer manufacturer is introducing a new product—a highend gaming laptop. Its technicians take 21 hours to produce the first unit of the laptop and the company follows a 78 percent learning curve. Given this information the eighth unit of the laptop would approximately require _____.
10 hours
Victor a project manager is constructing a budget for a project to construct a house. He estimates that the materials will cost $100000 and the project will require 15 people working 6 hours a day to ensure timely completion. He estimates the cost of labor at $15 per hour. Additional costs safety equipment and overheads are marked at a rate of 50 percent of direct labor. In this scenario the total cost of the project will be _____.
102025
A task is expected to take 20 hours of labor at $25 per hour. The required material cost is $500 and the organization charges 30% of direct labor for overhead. The total task cost is:
1150
There is a 30 percent chance that a new product development project will result in sales of $500000 and a 70 percent chance that the project will result in sales of $100000. What is the expected value of this project?
220000
Resource loading refers to the amounts of specific resources that are scheduled for use on specific activities or projects at specific times.
False
What is the expected time to complete a task with an optimistic most likely and pessimistic times of 3 4 and 7 days respectively?
4.3
The first unit required 6 hours. If the industry uses a 90 percent learning rate how long should the fourth unit take?
4.86 hours
The first unit requires 10 hours to complete. If the industry uses an 80 percent learning rate how long should the third unit take?
7.02 hours
Victoria an artisan who produces handcrafted furniture has to carve six ornate chairs to go around a table. It takes her 10 hours to complete the first chair. She estimates that her learning rate is 80 percent. Given this information Victoria should be able to make the second chair in _____.
8 hours
Stefan a project manager in a publishing company has undertaken a project to translate a book in French into English and to sell a million copies. He estimates that the cost of the materials will be $6000 and the project will require 30 hours of labor at $50 per hour. If the overheads for the project are estimated at a rate of 50 percent of the labor costs the total cost of the project will be:
8250
Rachel a project manager has undertaken a project to build a wall around a compound. She estimates that the cost of materials will be $520 and labor costs will be $10 for 20 hours. If the overheads for this project are 50 percent of the labor and material costs the total cost will be:
880
Nessage Mique a niche fashion boutique displays its production process by using a network of nodes and arrows. The nodes are used to depict the state of completion of various activities and the arrows are used to depict their order of precedence. Which of the following project networks is Nessage Mique using in the given scenario?
An activity on arrow network
Miros Inc. a recording studio displays its recording process by using a network of nodes and arrows. The nodes are used to depict the activities involved in recording a song such as setting up the instruments and the arrows are used to depict the order of precedence of the activities. Which of the following project networks is Miros using in the given scenario?
An activity on node network
Technical dependencies are generally easier to see on a Gantt chart than on PERT/CPM networks.
False
An identifiable state resulting from the completion of one or more activities is called?
An event
A Gantt chart cannot depict a critical path only a PERT/CPM chart can.
False
A disadvantage of Gantt charts is that they are hard to draw.
False
A disadvantage of using beta distribution to approximate activity times is that it is generally less flexible than the normal distribution.
False
A project that must be completed by a fixed time is referred to as resource constrained.
False
A start to finish linkage is the most common way of linking to successive task.
False
Activity budgets show expenses by task and expected time period of the expenditure.
False
All tasks can be crashed to some extent.
False
An event is a series of connected activities.
False
Another name for total slack is free slack.
False
Applying "line balancing" techniques to balance the capacity of a project typically yields significant benefits.
False
As a project unfolds the cost uncertainty increases as the project moves towards completion.
False
Because project budgeting is for a special case and the organizations budgeting process is for routine work the project manager need not be familiar with the organizations accounting system.
False
By very careful planning a project manager can do away with cost uncertainty.
False
Contingency planning is generally begun at that point in time when an organization finds itself in serious financial trouble.
False
Crashing noncritical activities will influence project duration.
False
Fast tracking a project is used primarily in the pharmaceutical industry.
False
For projects with S shaped life cycles top down budgeting is most likely unacceptable.
False
For resources that are consumed when used the problem is which project gets to use the resource first and which must wait.
False
Good project managers are able to estimate project task times with absolute certainty.
False
If task duration estimates are carefully made the project manager needs to only examine the critical path when conducting a risk analysis.
False
It is easiest to see lead and lag time in a project task on a PERT/CPM networks.
False
Learning curve theory states that performance of labor per unit will improve by a percentage each time production increases by the same percentage.
False
Mechanical tasks typically have higher learning rates than more mental tasks.
False
Milestones are not depended upon the predecessor activities in the project plan.
False
Milestones cannot be identified on a Gantt Chart.
False
Slack is calculated as?
LFT EFT
According to research the best overall priority rule is...
Minimum slack first
Technical dependencies on a project plan are easiest to see on a:
PERT/CPM chart
A project that must be completed within the specified performance requirements is considered:
Performance Constrained
All of the following are criteria available to help choose the priority rule mentioned in the textbook except;
Project Cost
Allocating specific limited resources to specific activities is called:
Resource Allocation
A Term not used in the discussion of PERT/CPM analysis is
Sensitivity Path
Minkset Blu a textile company wants to improve its sales over a span of four years. In the first year the company installs new looming machines that improve the production cost. However it takes two years for the company to establish a liaison with online retailers to improve the accessibility of its products. This delays the companys goal of improving sales by a year. In the context of the language of the Program Evaluation and Review Technique (PERT) and the Critical Path Method (CPM) the set of activities that cause the delay are part of:
The critical path
Devon a project manager is working on a software development project. He needs more coders to complete the project on time. As a result he hires people and they are given on the job training by their coworkers. However this significantly reduces the output of the team and leads to a delay in the project. The given scenario exemplifies:
The mythical man month effect
After major risk are identified which of the following data should NOT be obtained for analysis.
The person responsible for each outcome
A project that must be completed by a specific time is considered...
Time constrained
A big advantage of AON networks is that they are easier to draw.
True
A budget is a plan for allocating resources to project activities.
True
Organ Bennett Inc. a public relations firm is working on a project to improve the brand image of Sizil a client firm over a period of a year. The project requires Organ Bennett to organize a press conference to announce the launch of Sizils new product. The project members need to invite reporters for the same. In the context of the language of the Program Evaluation and Review Technique (PERT) and the Critical Path Method (CPM) inviting reporters is most likely a(n):
activity
Which of the following terms is most closely associated with a task required by the project?
activity
Crashing refers to...
all of the above
Which of the following priority rules makes resources available so that activities start on their LSTs whenever possible without increasing the projects duration?
as late as possible
Susan a project manager uses a work breakdown structure to list the elemental tasks of a project. She then asks the team members responsible for each of these tasks to give her an estimate of the cost required to accomplish each task. Next she adds indirect costs such as administrative costs and a reserve for contingencies to the total task cost and files her budget with the accounting department. In this scenario Susan is using _____.
bottom up budgeting
Verita Nist an automobile company sought to improve the production time and quality of its products within a year. In the first month the company installed five new assembling machines. This reduced the production time by 15 percent. In the context of the language of the Program Evaluation and Review Technique (PERT) and the Critical Path Method (CPM) this decrease in the production time of Verita Nists products is an example of a(n):
event
Rico Gen a sports apparel manufacturing company maintains a target of increasing its sales by 20 percent per month to achieve its goal of expanding its business in the international market. In the context of the language of the Program Evaluation and Review Technique (PERT) and the Critical Path Method (CPM) the monthly targets achieved by Rico Gen are known as:
milestones
PERT was originally used for what type of project?
military
The practice of assigning project team members to multiple projects is called...
multitasking
Paul the marketing manager of a food company created a diagram of nodes to represent the marketing process for a new product of the company. Each node represented an activity in the marketing process and an arc joined each node. He used this diagram to demonstrate the objectives of the marketing process. In the context of the language of the Program Evaluation and Review Technique (PERT) and the Critical Path Method (CPM) the diagram used by Paul is known as a:
network
The task duration with standard practice resource usage is referred to as the...
normal task duration
To crash a project which of the following principles apply? 1) Focus on the critical path(s) when trying to shorten the duration of a project 2) Select the least expensive way to do it 3) Crash noncritical activities
only 1 and 2 are correct.
The name given to the budget process that aggregates income and expenditures across projects is:
program oriented budget
The primary cause of concern in resource allocation is...
resource scarcity
Which of the following is a measure of the amount by which a project is delayed by application of a leveling rule?
schedule slippage
Ben is part of a new project in his company. He is asked to complete a task within two days but he is only able to finish it in three days. Since the task assigned to him is noncritical in nature the extra day taken by Ben does not cause a delay in the project. In this scenario the additional day taken by Ben is known as:
slack
The amount of time a noncritical task can be delayed without delaying the project is called?
slack
Sean a project manager has to prepare the budget for a new project. He estimates the overall project cost by estimating the costs of the major tasks. He then gives these estimates to Raphael an engineer who works under Sean to split up the costs for each of the activities involved in accomplishing the major tasks. In this scenario Sean is using _____.
top down budgeting
The budgeting approach based on the collective judgments of top and middle managers is called:
top down budgeting
William a project manager needs to prepare the budget for a new software development project. To do so he takes inputs from other managers who have worked on similar projects in the past. After estimating the overall project cost he gives the estimates to his team members so that they can split up the cost of each individual task involved in producing the required deliverable. In this scenario William is using _____.
top down budgeting
A resource allocation decision may be intended to avoid a future problem rather than correct a current problem.
true