Chapter 09 - Reducing Project Duration

Chapter 09 - Reducing Project Duration Multiple Choice Questions (Circle or Highlight your best answer) 6. Which of the following is not considered a project indirect cost? (pg. 313) A. Supervision B. Consultants C. Equipment D. Interest E. All of these are considered project indirect costs 9. The shortest possible time an activity can be completed realistically is called ___ time. (pg. 314) A. Expedited B. Accelerated C. Crash D. Optimistic E. Optimal 14. The less steep the cost slope of an activity, the (pg. 315) A. Less it costs to shorten one time period B. More it costs to shorten one time period C. Smaller the crash time D. Larger the crash time E. Cannot be determined by the information given 18. The optimum duration for a project is at the point where: (pg. 318) 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 25. A positive situation where moving toward the optimum time can result in very real, large savings —this occurs when the network is: (pg. 321) A. Insensitive B. Sensitive C. Ahead of schedule D. Shifting to the critical chain E. Implementing a fast-tracking system True / False Questions (Circle or Highlight your best answer) 62. Managers have several effective methods for crashing specific project activities when resources are not constrained. (pg. 307) True False 66. Because direct costs are assumed to be developed from normal methods and time, any reduction in activity time should add to the costs of the activity. (pg. 314) True False 77. A project network is classified as sensitive if it has a large number of interacting paths. (pg. 321) True False 79. While the relationship between normal and crash times is really curvilinear, the assumption that it is linear is seldom a concern for practicing managers. (pg. 319) True False 80. The accuracy of crash times and costs is frequently rough at best, when compared with normal time and cost. (pg. 319) True False 1 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 2 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 3 Ed is looking over the actual results of projects and comparing them to what was estimated. He notices that projects that took six months or longer to complete were noticeably more off the estimates. Which of the following factors is he recognizing? A padding estimates B planning horizon C project structure D people E organization culture 4 Which of the following is a good condition for bottom-up estimating? A strategic decision making B internal, small project C fixed price contract D high uncertainty E both C and D are good conditions for bottom-up estimating 5 Top-down estimates are most likely to occur during the ______ phase. A concept B planning C execution D delivery E all of these are equally likely 6 Jose is forecasting project time and cost for constructing a new building by multiplying the total square footage by a given dollar amount. Which of the following methods is he using? A ratio B template C apportion D function point E learning curve 7 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 8 Learning curves are more likely to apply in situations where most of the costs are A materials B labor C overhead D evenly spread over materials, labor, and overhead E all of these are equally likely situations for learning curves 9 The approach that begins with a top-down estimate for the project and then refines estimates as the project is implemented is known as ______method. A function point B template C learning curve D phase estimating E apportion 10 Typical kinds of costs found in a project include A direct costs B project overhead costs C general and administrative costs D only A and B are included E A, B, and C are all included 11 Reasons why estimating time and cost are important include all of the following except A B C D E to schedule work to determine how long the project should take and cost to develop cash flow needs to determine how well the project is progressing all of the above are valid reasons 12 Which of the follow top-down methods is used when projects closely follow past projects in features and costs and result in costs being assigned by percentages to major segments of the project? A apportion B function point C phase estimating D learning curve E consensus 13 Information to develop a project network is collected from the A) organization breakdown structure B) work breakdown structure C) budget D) project proposal E) responsibility matrix 14 Arrows on an AON project network represent A an activity B project flow C dependency D both B and C are correct E both A and B are correct 15 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 16 An activity that has more than one dependency arrow flowing to it is termed a(n) A parallel activity B critical path C burst activity D E merge activity independent activity 17 The critical path in a project network is the A shortest path through the network B longest path through the network C network path with the most difficult activities D network path using the most resources E network path with the most merge activities 18 An item on a project network is Design Software Completed. This is best described as a(n) A event B path C activity D node E milestone 19 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 20 Which of the following is not one of the basic rules to follow when developing project networks? A An activity cannot begin until all preceding activities have been completed. B Each activity must have a unique identification number. C Conditional statements are allowed but looping statements are not allowed. D An activity identification number must be larger that that of any preceding activities. E Networks flow from left to right. 21 The backward pass in project network calculations determines the A latest times activities can begin B earliest times activities can be finished C critical path D both A and C are correct E A, B, and C are all correct 22 The amount of time an activity can be delayed and yet not delay the project is termed A Total slack B Free slack C Critical float D Float pad E Slip pad 23 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 both A and B are correct 24 If the project must be expedited to meet an earlier date, the first action the project manager would take is to check which activities A cost the least B have the longest duration C are on the critical path D have the most slack E have the highest risk 25 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 26 Which of the following is not one of the steps in the risk management process? A risk response development B risk assessment C risk identification D risk tracking E risk response control 27 One common mistake made in identifying project risks is that A not all possibilities are considered B participants are over-optimistic C participants are over-pessimistic D efforts are focused on consequences rather than causal events E too much attention is given to past events 28 A list of questions that address traditional areas of uncertainty on a project is termed a risk A profile B questionnaire C research D query E checklist 29 The easiest and most commonly used technique for analyzing risks is _____ analysis. A probability B scenario C payback D risk/reward E impact 30 The risk assessment form contains all of the following except A likelihood of the risk event occurring B potential impact of the risk event C who will detect the occurrence of the risk event D difficulty of detecting the occurrence of the risk event E when the risk event may occur 31 The two scales of a risk severity matrix measure A time, cost B cost, schedule C D E impact, cost time, impact likelihood, impact 32 This risk assessment tool is a variation of the risk severity matrix that includes the ease of detection for each of the identified risks. A PERT simulation B FMEA analysis C ratio/range analysis D probability analysis E semi-quantitative analysis 33 Which of the following is not one of the potential responses to a specific risk event? A mitigating B retaining C ignoring D transferring E sharing 34 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 35 Which of the following is identified for specific work packages or segments of a project found in the baseline budget or work breakdown structure? A time buffers B budget reserves C management reserves D both A and B are correct E A, B, and C are all correct 36 Change control 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 the above are correct 37 If resources are not adequate to meet peak demands, the resulting reschedule is termed A resource-constrained scheduling B C D E time-constrained scheduling mandatory leveling project resource adjustment bottleneck adjustment 38 When developing a new software package, the software must be designed, the code must be written, and the code must be tested. This is an example of a ______ constraint. A physical B technical C resource D schedule E time 39 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 a ______ constraint. A physical B technical C resource D scheduling E time 40 Susan is to conduct environmental testing but the chamber cannot hold all the equipment that she wants to test. This is an example of a _________ constraint. A physical B technical C resource D scheduling E time 41 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 42 Regina's boss has told her that her project is very important. If the critical path is delayed, she will be given whatever she needs to get it back on schedule. Her project is ________ constrained. A time B quality C cost D performance E resource 43 All resource leveling techniques involve A delaying noncritical activities B delaying critical activities C using negative slack D both A and C are correct E A, B, and C are all correct 44 Jan is trying to reallocate resources in a time-constrained project to create smoother resource utilization with a low level of risk. She should move to activities with the A smallest duration B least slack C most slack D lowest identification number E highest cost 45 In a resource-constrained project, the first 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 46 Which of the following is a potential consequence of failing to schedule limited resources? A costly activity delays B costly project delays C difficulty in taking quick corrective action D both A and B are correct E A, B, and C are all correct 47 More common problems associated with managing multiproject resources include all of the following except A inefficient resource utilization B delays in one project cause delays in other projects C D E reducing "downtime" created by lack of tasks to perform resource bottlenecks all of these are common problems 48 Activities that have been subjected to the splitting/multitasking technique are likely to have which of the following impacts? A little or no impact on actual activity duration B a significant impact on 'people work' activities C increases in the project budget D missing the project target end date E both B and D are correct 49 The president of a software company remarks in a speech that new technologically advanced software will be available in one year. 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 50 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 51 Which of the following is not considered a project indirect cost? A supervision B consultants C equipment D interest E all of these are considered project indirect costs 52 The shortest possible time an activity can be completed realistically is called ___ time. A B C D E expedited accelerated crash optimistic optimal 53 In shortening a project duration, managers should first look to activities that A take the most time B are on the critical path C provide the smallest increase in cost per unit of time D both A and C are correct E A, B, and C are all correct 54 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) 55 In selecting the best activity to reduce you would first select the activity with the A earliest start time B steepest slope C least steep slope D longest duration E largest crash time 56 The optimum duration for a project is at the point where 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 57 If a network has several critical or near-critical paths it is deemed to be A well planned B the lowest cost alternative C resource-constrained D sensitive E insensitive 58 The relationship between cost and time for various durations is assumed to be A linear B curvilinear C variable D conversely related E exponentially related 59 The most common response for meeting unattainable deadlines is to A reduce or scale back the scope of the project B fire the project manager C hire more people D shift to the critical chain E implement the fast-tracking system 60 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 moving the completion date further out D brainstorming cost savings options E outsourcing project activities Chapter 13 - Homework Progress and Performance Measurement and Evaluation Multiple Choice Questions (Circle or Highlight your best answer) 1. A project monitoring system involves all of the following except: A. Determining what date to collect B. Determining how, when, and who will collect the data C. Adjusting the data D. Analysis of the data E. Reporting current progress 7. The last step in the project control process of the measurement and evaluation of project performance is to: 69A. Take appropriate action B. Prepare a report to top management C. Follow up on corrective action D. Measure progress and performance E. Review spending with team members 12. The earned value of a project is the: A. Project cost to date adjusted for project scope changes B. Total project cost to date C. Cost incurred minus the planned cost D. Percent of the original budget that has been earned by actual work E. None of these are correct 15. Baseline project budgets are derived from: A. The organization's overall budget B. Time-phasing the work packages C. Top management directions D. Both A and C are correct E. A, B, and C are all correct 20. Which of the following methods of variance analysis is the best indicator of how far off the budget a project will be at completion? A. BAC B. EAC C. ETC D. VAC E. TCPI True / False Questions (Circle or Highlight your best answer) 54. Control is one of the most neglected areas of project management. True False 59. In a project control chart, four observations trending in one direction indicate there is a very high probability that there is an identifiable cause. True False 65. Overhead costs and profit are typically included in the project baseline. True False 75. The best defense against scope creep is accepting only major changes. True False 76. The rule of using subjective estimated percent complete in combination with hard, tangible monitoring points works well on long-duration activities that can be broken into short discrete work packages. True False