Chap 007

Chapter 07 - Projects

Chapter 07Projects

Learning Objectives for Chapter 7:

1. Explain what project management is and why it is important.2. Identify the different ways projects can be structured.3. Describe how projects are organized into major subprojects.4. Understand what a project milestone is.5. Determine the “critical path” for a project.6. Demonstrate how to “crash,” or reduce the length, of a project.

True / False Questions

1. Project management can be defined as planning, directing, and controlling resources to meet the technical, cost, and time constraints of the project. True False

2. A project may be defined as a series of related jobs directed toward some major output and requiring a significant period of time to perform. True False

3. The second step in managing a project is writing the Statement of Work. True False

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4. An event unit package is a subdivision of a project. True False

5. Complex projects are often subdivided into a series of tasks that are typically configured to be not longer than several months in duration. True False

6. A work breakdown structure is used in project management but it is not used when the critical path method is involved. True False

7. The fact that organizations are flattening is one of the reasons that project management is important. True False

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8. The Gantt chart is an example of a project control chart. True False

9. Upper level management must decide between pure, functional, and matrix structures as ways to organize projects. True False

10. One of the disadvantages of a pure project organizational structure is that the project manager has full authority over the project. True False

11. One of the advantages of a functional project organizational structure is that a team member can work on several projects. True False

12. A matrix project attempts to blend properties of functional and pure project structures. True False

13. A matrix project structure is often referred to as a "skunk works." True False

14. A disadvantage of a matrix project organizational structure is that a project manager is held responsible for successful completion of the project. True False

15. The critical path of activities in a project is the sequence of activities that form the shortest chain in a project network of activities. True False

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16. CPM is an abbreviation for Critical Path Method. True False

17. In CPM the late start time estimate is the latest time you can start an activity and still keep the entire project on schedule. True False

18. The critical path in a project is that sequence of activities that consume the longest amount of time in a project network of activities. True False

19. The critical path in a CPM analysis is always the shortest path through the network. True False

20. Slack activity time is the difference between the early start and the late finish of a project activity time. True False

21. In a CPM analysis if you subtract the late finish from the early finish the result is the activity's slack time. True False

22. In a CPM analysis if you subtract the early finish from the late finish the result is the activity's slack time. True False

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23. The critical path in a CPM analysis is found by locating the activities times with zero slack. True False

24. Calculating the early start and early finish times for each activity in a CPM analysis does not provide any useful information. True False

25. The project indirect costs associated with a project include overhead, facilities, and resource opportunity costs. True False

26. The activity direct costs associated with a project might include giving workers overtime to complete a project in less-than the expected time. True False

27. You are managing a project and need to cut the cost of the project. You decide to transfer workers to another job to cut the project's costs. Costs associated with transferring the workers are an example of project indirect costs. True False

28. Using the Time-Cost CPM model, the crash time is the shortest possible time allowed for each activity in the project. True False

29. In the Time-Cost CPM model, cost is a linear function of time. True False

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30. When reducing the planned duration of a project using the Time-Cost CPM model we select the activity to crash by determining the cost of each alternative and selecting the one whose cost is the greatest. True False

31. One of the assumptions made using CPM is that project activities can be identified with clear beginning and ending points. True False

32. One of the assumptions made using CPM is that project activity sequence relationships can be specified and networked. True False

33. One criticism of using CPM analysis in project management is that the zero slack path through a network may not be the ultimate determinant of the project completion time. True False

34. Project management software available today combines CPM and other scheduling aids, like Gantt charting, to aid in tracking progress of project completion. True False

35. One of the criticisms of CPM analysis is that the act of specifying the activities and formalizing the network limits the flexibility required to handle changing situations as the project progresses. True False

36. A project milestone is a specific event to be reached by a particular point in time. True False

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37. Breakthrough projects are those that provide fundamental improvements to existing products. True False

38. Derivative projects are those which address incremental changes to products or processes. True False

39. Alliances and partnerships between organizations are focused on "breakthrough" projects. True False

40. Earned Value Management (EVM) is a technique for measuring project progress in an objective manner. True False

Multiple Choice Questions

41. A project can be subdivided into which of the following? A. Job ordersB. SubjobsC. Work PackageD. Sub-pathsE. Events and decisions

42. A project starts out as which of the following? A. A Statement of WorkB. Critical Path Method (CPM)C. A series of milestonesD. A Gantt chartE. A latest-start-time estimate

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43. What is a work breakdown structure? A. A list of the activities making up the higher levels of the projectB. A definition of the hierarchy of project tasks, subtasks, and work packagesC. A depiction of the activities making up a projectD. A Gantt chartE. A structure that is incompatible with the Critical Path Method

44. Which of the following is a reason that project management is important? A. Organizations do not allow hastily planned projectsB. Organizational hierarchies are becoming more robustC. The firm's reputation is not a concern since projects are invisible to the outside worldD. Projects are a way to promote effective leadershipE. It is usually more important to complete a project on time than to complete it correctly

45. In a Gantt chart the horizontal axis is usually which of the following? A. ActivitiesB. CostC. ProfitD. TimeE. Milestones

46. Which of the following is a graphic project report used in project management? A. Project proposalB. Approved project planC. Humphrey chartD. Equipment and supplies chartE. Cost and performance tracking schedule

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47. An advantage of a pure project where self-contained teams work full time on a project is which of the following? A. Team members can work on several projectsB. Functional area is a "home" after the project is completedC. There are duplicated resourcesD. Lines of communication are shortenedE. Overall organizational policies and goals can be ignored

48. Some of the advantages of a functional project where the project is housed in a functional division include which of the following? A. The project manager has full authority over the projectB. Team pride, motivation, and commitment are highC. A team member can work on several projectsD. Needs of the client are secondaryE. None of the above

49. A series of projects that are organized in such a way that each project utilizes people from different functional areas is using which of the following organizational structures? A. Matrix projectB. Integrated Task ForceC. Functional projectD. Pure projectE. Cross-functional flexible team

50. You are looking at a chart that has the terms BCWS, BCWP and AC indicating lines on the chart. What kind of chart are you looking at? A. Gantt ChartB. PERT ChartC. Bar/Milestone ChartD. Total Program Cost BreakdownE. EVM Chart

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51. PERT is an abbreviation for which of the following methodologies? A. Product Evaluation Result and TreatmentB. Programming and Evaluation Realization TechnologyC. Program Evaluation and Review TechniqueD. Process Evaluation and Review TechnologyE. It is a name, not an abbreviation for anything

52. You have just been assigned to oversee a series of projects. Functional areas will loan you personnel for each project and separate project managers will be responsible for separate projects. These project managers will report to you. Which project management structure is being used? A. Pure ProjectB. Task forceC. Matrix ProjectD. Functional ProjectE. PERT

53. You have been placed in charge of a large project. Shortened communication lines are required to insure quick resolution of problems as they arise. You recognize that the project is going to take a lot of time and require a lot of team pride, motivation, and commitment by all members. Which project management strucTURE should you use in this situation? A. Pure ProjectB. Task forceC. Matrix ProjectD. Functional ProjectE. PERT

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54. A simple project listing of five activities and their respective time estimates are presented below:

Using CPM, which activities make up the critical path? A. A, C, D, EB. A, B, D, EC. A, C, B, D, ED. A, D, EE. None of the above

55. A simple project listing of five activities, their predecessors and their respective time estimates are presented below:

Using CPM, what is the Latest Finish Time for the last activity in this project (i.e., the total time to complete the project)? A. 10 daysB. 7 daysC. 8 daysD. 12 daysE. 9 days

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Using the CPM, which activities have slack in this project? A. AB. BC. CD. DE. C and E

57. A company must perform a maintenance project consisting of seven activities. The activities, their predecessors, and their respective time estimates are presented below:

Using CPM, which activities make up the critical path? A. A, B, D, F, GB. A, C, E, F, GC. A, C, B, F, ED. A, D, EE. None of the above

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Using CPM, which activities have slack in this project? A. A, B, CB. B, DC. Only CD. C, EE. F, G

60. For an activity in a CPM analysis, the Early Finish time is 8 and the Late Finish time is 10. Which of the following statements is true? A. The Late Finish is 12B. The Early Finish is 10C. The slack for this activity is 2D. The duration of this activity is 2E. The activity is on the critical path

61. For an activity in a CPM analysis the Early Finish time is 20 and the Late Finish time is 20. Which of the following statements is true? A. The activity's late start must happen before its early startB. The activity is on the critical pathC. The slack for this activity is 20D. The duration of this task is zeroE. The duration of this task is 20

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62. A listing of immediate predecessor activities is important information in a CPM analysis for which of the following reasons? A. It specifies the relationships in the CPM network of activitiesB. It provides useful timing informationC. It includes cost informationD. It is the probability information required in the final step of CPME. None of the above

63. You have just performed a CPM analysis and have found that more than one path through the project network has zero slack values. What can you conclude? A. You have incorrectly performed the analysisB. You have multiple critical pathsC. Only one path is optimalD. More than one path is optimalE. The project will not be completed by the desired time

64. You have the following time and cost information below for use in a Time-Cost CPM Scheduling model.

What are the three costs per unit of time to expedite each activity? A. A=$300, B=$200, C=$300B. A=$100, B=$200, C=$400C. A=$200, B=$200, C=$200D. A=$100, B=$400, C=$300E. A=$200, B=$300, C=$400

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65. Below are the data for a Time-Cost CPM Scheduling model analysis. The time is in days and the costs include both direct and indirect costs.

What are the total time of this project and total normal cost? A. Total time is 13 days, total cost is $1200B. Total time is 12 days, total cost is $1700C. Total time is 11 days, total cost is $1600D. Total time is 10 days, total cost is $1750E. Total time is 9 days, total cost is $1700


If you crash this project to reduce the total time by one day what is the total time of the project and total cost? A. Total time is 13 days, total cost is $1500B. Total time is 12 days, total cost is $2000C. Total time is 12 days, total cost is $2300D. Total time is 11 days, total cost is $1850E. Total time is 11 days, total cost is $2350

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67. Below are the data for a Time-Cost CPM Scheduling analysis. The time is in days and the costs include both direct and indirect costs.

If you crash this project to reduce the total time by four days, what is the total time of the project and total cost? A. Total time is 10 days, total cost is $2500B. Total time is 9 days, total cost is $2300C. Total time is 8 days, total cost is $2750D. Total time is 8 days, total cost is $1850E. Total time is 9 days, total cost is $2350

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68. You have collected the data for a Time-Cost CPM Scheduling model analysis. The time is in days and the project "direct costs" are given below.

The indirect costs for the project are determined on a daily duration basis. If the project lasts 16 days the total indirect costs are $400, 15 days they will be $250, 14 days they will be $200, and 13 days they will be $100. If you crash this project by one day what is the total (i.e., direct and indirect) project cost? A. $2150B. $2300C. $2400D. $2450E. $2500

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The indirect costs for the project are determined on a daily duration basis. If the project lasts 16 days the total indirect costs are $400, 15 days they will be $250, 14 days they will be $200, and 13 days they will be $100. At what day do we achieve the lowest total project cost (i.e., direct plus indirect costs)? A. 16 daysB. 15 daysC. 14 daysD. 13 daysE. 12 days

70. You know when you have arrived at the optimal solution in using the Time-Cost CPM Scheduling model analysis when what happens? A. You have found the critical pathB. You have run out of crash timeC. You no longer have a linear relationship with costsD. You have reached the minimum total costE. You have run out of crash costs

71. In CPM analysis it is generally expected that the relationship between activity direct costs and project indirect costs will be which of the following? A. Positively relatedB. Optimally relatedC. Negatively relatedD. Not relatedE. Fractionally related

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72. Which of the following is an assumption made in using CPM analysis? A. Project activities flow together without distinct boundariesB. Activities' sequential relationships can be specified and networkedC. Project management should focus on crashing activitiesD. There is never a work stoppage in any activity until it is completeE. There are no learning curve effects in setting activity time

73. Which of the following is a criticism made about CPM analysis? A. Project activity sequencing relationships can be specified and networkedB. Project control should focus on the critical pathC. Projects can change over time and networks can be inaccurateD. CPM does not foresee changes while the project is under wayE. The pessimistic time estimate is usually closest to the actual time

74. An assumption of CPM analysis is that project activities can be identified and have a clear beginning and ending point. Which of the following is a valid criticism of this assumption? A. Complex projects can change over time and networks become inaccurateB. Project control cannot always focus on the critical pathC. The critical path through the network can change when activities are crashedD. It is not necessarily true that the critical path is the longest path through the networkE. None of the above

Fill in the Blank Questions

75. What is that sequence of activities that consume the longest amount of time in a project network of activities called? _______________________________ ________________________________________

76. What are "project milestones?" _________________________________________ ________________________________________

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The indirect costs for the project are determined on a daily duration basis. If the project lasts 16 days the total indirect costs are $400, 15 days they will be $250, 14 days they will be $200, and 13 days they will be $100. If you crash this project by one day what is the total (i.e., direct and indirect) project cost? ____________________ ________________________________________


If you crash this project to reduce the total time by four days, what is the total time of the project and total cost? __________________ ________________________________________

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Essay Questions

79. Describe how CPM handles the trade-offs between time and cost in the scheduling of a project.

80. What is the criterion for determining whether a project activity is on the "critical path" or not?

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Chapter 07 Projects Answer Key

True / False Questions

1. Project management can be defined as planning, directing, and controlling resources to meet the technical, cost, and time constraints of the project. TRUE

AACSB: AnalyticDifficulty: EasyLearning Objective: 1Taxonomy: KnowledgeTopic: What is Project Management

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2. A project may be defined as a series of related jobs directed toward some major output and requiring a significant period of time to perform. TRUE


3. The second step in managing a project is writing the Statement of Work. FALSE

AACSB: AnalyticDifficulty: EasyLearning Objective: 2Taxonomy: KnowledgeTopic: Structuring Projects

4. An event unit package is a subdivision of a project. FALSE

AACSB: AnalyticDifficulty: MediumLearning Objective: 2Taxonomy: KnowledgeTopic: Structuring Projects

5. Complex projects are often subdivided into a series of tasks that are typically configured to be not longer than several months in duration. TRUE


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6. A work breakdown structure is used in project management but it is not used when the critical path method is involved. FALSE


7. The fact that organizations are flattening is one of the reasons that project management is important. TRUE


8. The Gantt chart is an example of a project control chart. TRUE


9. Upper level management must decide between pure, functional, and matrix structures as ways to organize projects. TRUE


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10. One of the disadvantages of a pure project organizational structure is that the project manager has full authority over the project. FALSE


11. One of the advantages of a functional project organizational structure is that a team member can work on several projects. TRUE


12. A matrix project attempts to blend properties of functional and pure project structures. TRUE


13. A matrix project structure is often referred to as a "skunk works." FALSE


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14. A disadvantage of a matrix project organizational structure is that a project manager is held responsible for successful completion of the project. FALSE


15. The critical path of activities in a project is the sequence of activities that form the shortest chain in a project network of activities. FALSE

AACSB: AnalyticDifficulty: MediumLearning Objective: 5Taxonomy: KnowledgeTopic: Networking-Planning Models

16. CPM is an abbreviation for Critical Path Method. TRUE

AACSB: AnalyticDifficulty: EasyLearning Objective: 5Taxonomy: KnowledgeTopic: Networking-Planning Models

17. In CPM the late start time estimate is the latest time you can start an activity and still keep the entire project on schedule. TRUE


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18. The critical path in a project is that sequence of activities that consume the longest amount of time in a project network of activities. TRUE

AACSB: AnalyticDifficulty: MediumLearning Objective: 5Taxonomy: UnderstandingTopic: Networking-Planning Models

19. The critical path in a CPM analysis is always the shortest path through the network. FALSE


20. Slack activity time is the difference between the early start and the late finish of a project activity time. FALSE

AACSB: AnalyticDifficulty: EasyLearning Objective: 5Taxonomy: AnalysisTopic: Networking-Planning Models

21. In a CPM analysis if you subtract the late finish from the early finish the result is the activity's slack time. FALSE

AACSB: AnalyticDifficulty: MediumLearning Objective: 5Taxonomy: AnalysisTopic: Networking-Planning Models

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22. In a CPM analysis if you subtract the early finish from the late finish the result is the activity's slack time. TRUE


23. The critical path in a CPM analysis is found by locating the activities times with zero slack. TRUE


24. Calculating the early start and early finish times for each activity in a CPM analysis does not provide any useful information. FALSE


25. The project indirect costs associated with a project include overhead, facilities, and resource opportunity costs. TRUE


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26. The activity direct costs associated with a project might include giving workers overtime to complete a project in less-than the expected time. TRUE


27. You are managing a project and need to cut the cost of the project. You decide to transfer workers to another job to cut the project's costs. Costs associated with transferring the workers are an example of project indirect costs. FALSE


28. Using the Time-Cost CPM model, the crash time is the shortest possible time allowed for each activity in the project. TRUE


29. In the Time-Cost CPM model, cost is a linear function of time. FALSE


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30. When reducing the planned duration of a project using the Time-Cost CPM model we select the activity to crash by determining the cost of each alternative and selecting the one whose cost is the greatest. FALSE


31. One of the assumptions made using CPM is that project activities can be identified with clear beginning and ending points. TRUE


32. One of the assumptions made using CPM is that project activity sequence relationships can be specified and networked. TRUE

AACSB: AnalyticDifficulty: EasyLearning Objective: 3Taxonomy: AnalyticTopic: Structuring Projects

33. One criticism of using CPM analysis in project management is that the zero slack path through a network may not be the ultimate determinant of the project completion time. TRUE


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34. Project management software available today combines CPM and other scheduling aids, like Gantt charting, to aid in tracking progress of project completion. TRUE


35. One of the criticisms of CPM analysis is that the act of specifying the activities and formalizing the network limits the flexibility required to handle changing situations as the project progresses. TRUE


36. A project milestone is a specific event to be reached by a particular point in time. TRUE

AACSB: AnalyticDifficulty: MediumLearning Objective: 4Taxonomy: KnowledgeTopic: Work Breakdown Structure

37. Breakthrough projects are those that provide fundamental improvements to existing products. FALSE


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38. Derivative projects are those which address incremental changes to products or processes. TRUE


39. Alliances and partnerships between organizations are focused on "breakthrough" projects. FALSE


40. Earned Value Management (EVM) is a technique for measuring project progress in an objective manner. TRUE


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Multiple Choice Questions

41. A project can be subdivided into which of the following? A. Job ordersB. SubjobsC. Work PackageD. Sub-pathsE. Events and decisions


42. A project starts out as which of the following? A. A Statement of WorkB. Critical Path Method (CPM)C. A series of milestonesD. A Gantt chartE. A latest-start-time estimate


43. What is a work breakdown structure? A. A list of the activities making up the higher levels of the projectB. A definition of the hierarchy of project tasks, subtasks, and work packagesC. A depiction of the activities making up a projectD. A Gantt chartE. A structure that is incompatible with the Critical Path Method


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44. Which of the following is a reason that project management is important? A. Organizations do not allow hastily planned projectsB. Organizational hierarchies are becoming more robustC. The firm's reputation is not a concern since projects are invisible to the outside worldD. Projects are a way to promote effective leadershipE. It is usually more important to complete a project on time than to complete it correctly


45. In a Gantt chart the horizontal axis is usually which of the following? A. ActivitiesB. CostC. ProfitD. TimeE. Milestones


46. Which of the following is a graphic project report used in project management? A. Project proposalB. Approved project planC. Humphrey chartD. Equipment and supplies chartE. Cost and performance tracking schedule


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47. An advantage of a pure project where self-contained teams work full time on a project is which of the following? A. Team members can work on several projectsB. Functional area is a "home" after the project is completedC. There are duplicated resourcesD. Lines of communication are shortenedE. Overall organizational policies and goals can be ignored


48. Some of the advantages of a functional project where the project is housed in a functional division include which of the following? A. The project manager has full authority over the projectB. Team pride, motivation, and commitment are highC. A team member can work on several projectsD. Needs of the client are secondaryE. None of the above


49. A series of projects that are organized in such a way that each project utilizes people from different functional areas is using which of the following organizational structures? A. Matrix projectB. Integrated Task ForceC. Functional projectD. Pure projectE. Cross-functional flexible team

AACSB: AnalyticDifficulty: HardLearning Objective: 2Taxonomy: KnowledgeTopic: Structuring Projects

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50. You are looking at a chart that has the terms BCWS, BCWP and AC indicating lines on the chart. What kind of chart are you looking at? A. Gantt ChartB. PERT ChartC. Bar/Milestone ChartD. Total Program Cost BreakdownE. EVM Chart


51. PERT is an abbreviation for which of the following methodologies? A. Product Evaluation Result and TreatmentB. Programming and Evaluation Realization TechnologyC. Program Evaluation and Review TechniqueD. Process Evaluation and Review TechnologyE. It is a name, not an abbreviation for anything


52. You have just been assigned to oversee a series of projects. Functional areas will loan you personnel for each project and separate project managers will be responsible for separate projects. These project managers will report to you. Which project management structure is being used? A. Pure ProjectB. Task forceC. Matrix ProjectD. Functional ProjectE. PERT


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53. You have been placed in charge of a large project. Shortened communication lines are required to insure quick resolution of problems as they arise. You recognize that the project is going to take a lot of time and require a lot of team pride, motivation, and commitment by all members. Which project management strucTURE should you use in this situation? A. Pure ProjectB. Task forceC. Matrix ProjectD. Functional ProjectE. PERT


54. A simple project listing of five activities and their respective time estimates are presented below:

Using CPM, which activities make up the critical path? A. A, C, D, EB. A, B, D, EC. A, C, B, D, ED. A, D, EE. None of the above


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Using the CPM, which activities have slack in this project? A. AB. BC. CD. DE. C and E


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Using CPM, which activities make up the critical path? A. A, B, D, F, GB. A, C, E, F, GC. A, C, B, F, ED. A, D, EE. None of the above

AACSB: AnalyticDifficulty: HardLearning Objective: 5Taxonomy: AnalysisTopic: Networking-Planning Models

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Using CPM, which activities have slack in this project? A. A, B, CB. B, DC. Only CD. C, EE. F, G


60. For an activity in a CPM analysis, the Early Finish time is 8 and the Late Finish time is 10. Which of the following statements is true? A. The Late Finish is 12B. The Early Finish is 10C. The slack for this activity is 2D. The duration of this activity is 2E. The activity is on the critical path


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61. For an activity in a CPM analysis the Early Finish time is 20 and the Late Finish time is 20. Which of the following statements is true? A. The activity's late start must happen before its early startB. The activity is on the critical pathC. The slack for this activity is 20D. The duration of this task is zeroE. The duration of this task is 20


62. A listing of immediate predecessor activities is important information in a CPM analysis for which of the following reasons? A. It specifies the relationships in the CPM network of activitiesB. It provides useful timing informationC. It includes cost informationD. It is the probability information required in the final step of CPME. None of the above


63. You have just performed a CPM analysis and have found that more than one path through the project network has zero slack values. What can you conclude? A. You have incorrectly performed the analysisB. You have multiple critical pathsC. Only one path is optimalD. More than one path is optimalE. The project will not be completed by the desired time

AACSB: AnalyticDifficulty: MediumLearning Objective: 5Taxonomy: EvaluationTopic: Networking-Planning Models

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64. You have the following time and cost information below for use in a Time-Cost CPM Scheduling model.

What are the three costs per unit of time to expedite each activity? A. A=$300, B=$200, C=$300B. A=$100, B=$200, C=$400C. A=$200, B=$200, C=$200D. A=$100, B=$400, C=$300E. A=$200, B=$300, C=$400


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What are the total time of this project and total normal cost? A. Total time is 13 days, total cost is $1200B. Total time is 12 days, total cost is $1700C. Total time is 11 days, total cost is $1600D. Total time is 10 days, total cost is $1750E. Total time is 9 days, total cost is $1700


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If you crash this project to reduce the total time by one day what is the total time of the project and total cost? A. Total time is 13 days, total cost is $1500B. Total time is 12 days, total cost is $2000C. Total time is 12 days, total cost is $2300D. Total time is 11 days, total cost is $1850E. Total time is 11 days, total cost is $2350


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If you crash this project to reduce the total time by four days, what is the total time of the project and total cost? A. Total time is 10 days, total cost is $2500B. Total time is 9 days, total cost is $2300C. Total time is 8 days, total cost is $2750D. Total time is 8 days, total cost is $1850E. Total time is 9 days, total cost is $2350


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The indirect costs for the project are determined on a daily duration basis. If the project lasts 16 days the total indirect costs are $400, 15 days they will be $250, 14 days they will be $200, and 13 days they will be $100. If you crash this project by one day what is the total (i.e., direct and indirect) project cost? A. $2150B. $2300C. $2400D. $2450E. $2500


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The indirect costs for the project are determined on a daily duration basis. If the project lasts 16 days the total indirect costs are $400, 15 days they will be $250, 14 days they will be $200, and 13 days they will be $100. At what day do we achieve the lowest total project cost (i.e., direct plus indirect costs)? A. 16 daysB. 15 daysC. 14 daysD. 13 daysE. 12 days


70. You know when you have arrived at the optimal solution in using the Time-Cost CPM Scheduling model analysis when what happens? A. You have found the critical pathB. You have run out of crash timeC. You no longer have a linear relationship with costsD. You have reached the minimum total costE. You have run out of crash costs

AACSB: AnalyticDifficulty: EasyLearning Objective: 6Taxonomy: UnderstandingTopic: Networking-Planning Models

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71. In CPM analysis it is generally expected that the relationship between activity direct costs and project indirect costs will be which of the following? A. Positively relatedB. Optimally relatedC. Negatively relatedD. Not relatedE. Fractionally related


72. Which of the following is an assumption made in using CPM analysis? A. Project activities flow together without distinct boundariesB. Activities' sequential relationships can be specified and networkedC. Project management should focus on crashing activitiesD. There is never a work stoppage in any activity until it is completeE. There are no learning curve effects in setting activity time


73. Which of the following is a criticism made about CPM analysis? A. Project activity sequencing relationships can be specified and networkedB. Project control should focus on the critical pathC. Projects can change over time and networks can be inaccurateD. CPM does not foresee changes while the project is under wayE. The pessimistic time estimate is usually closest to the actual time


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74. An assumption of CPM analysis is that project activities can be identified and have a clear beginning and ending point. Which of the following is a valid criticism of this assumption? A. Complex projects can change over time and networks become inaccurateB. Project control cannot always focus on the critical pathC. The critical path through the network can change when activities are crashedD. It is not necessarily true that the critical path is the longest path through the networkE. None of the above


Fill in the Blank Questions

75. What is that sequence of activities that consume the longest amount of time in a project network of activities called? _______________________________ The critical path


76. What are "project milestones?" _________________________________________ Specific events to be accomplished by specified points in time

AACSB: AnalyticDifficulty: EasyLearning Objective: 4Taxonomy: KnowledgeTopic: Work Breakdown Structure

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The indirect costs for the project are determined on a daily duration basis. If the project lasts 16 days the total indirect costs are $400, 15 days they will be $250, 14 days they will be $200, and 13 days they will be $100. If you crash this project by one day what is the total (i.e., direct and indirect) project cost? ____________________ $2150


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If you crash this project to reduce the total time by four days, what is the total time of the project and total cost? __________________ Total time is 8 days, total cost is $2750


Essay Questions

79. Describe how CPM handles the trade-offs between time and cost in the scheduling of a project.

This question can elicit a variety of responses. The "most correct" answers will deal with the issues set forth on pages 199-203 under the heading "Minimum-Cost Scheduling" and should include, as a minimum, the idea that each activity has a normal cost, normal time, crash cost and crash time specified; that the critical path is computed, that only activities on the critical path should be considered as candidates to "crash," that the critical path should be shortened at the least cost and that the new solution should be checked to determine whether the critical path has changed.

AACSB: AnalyticDifficulty: MediumLearning Objective: 6Taxonomy: ApplicationTopic: Networking-Planning Models

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80. What is the criterion for determining whether a project activity is on the "critical path" or not?

This question is answered by the definition of the critical path on page 192 of the text: The critical path of activities in a project is the sequence of activities that form the longest chain in terms of their time to complete. The simplest correct answer is perhaps that a delay in completing the activity will result in a delay in completing the entire project (unless, of course, later activities can be "crashed.")

AACSB: AnalyticDifficulty: EasyLearning Objective: 5Taxonomy: ApplicationTopic: Networking-Planning Models

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Chap 007

Documents

project management

project manager

true false questions

entire project

project milestone

project activity time

matrix project structure

project network of activities