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File: ch09, chapter 9: Project Management

True/False

1. A unique, one-time operational activity or effort is referred to as a process. Ans: False Difficulty: Easy Learning Objective: LO 1

2. In general, projects are subject to less uncertainty than other types of processes. Ans: False Difficulty: Easy Learning Objective: LO 1

3. The three primary elements of project management include planning, scheduling, and costing. Ans: False Difficulty: Easy Learning Objective: LO 1

4. A typical project team is cross-functional consisting of members throughout an organization. Ans: True Difficulty: Easy Learning Objective: LO 1

5. A work breakdown structure provides a common understanding of and justification for a project. Ans: False Difficulty: Moderate Learning Objective: LO 1

6. Control, one of the basic elements of a project plan, involves a set of procedures for monitoring and evaluating progress and performance. Ans: True Difficulty: Moderate Learning Objective: LO 1

7. Project scope, one of the basic elements of a project plan, involves a set of procedures for anticipating and assessing uncertainties that might increase the risk of delaying the project. Ans: False Difficulty: Moderate Learning Objective: LO 1

8. The upper level of a work breakdown structure for a project highlights summary activities and/or major components. Ans: True Difficulty: Moderate Learning Objective: LO 1

9. Global projects are rarely concerned with cultural differences among team members because English is the universal business language. Ans: False Difficulty: Easy Learning Objective: LO 2

10. Asian cultures tend to embrace project management’s methodical approach more than western cultures. Ans: True Difficulty: Moderate Learning Objective: LO 2 11. Issues of cultural diversity in project management should only be addressed if and when they arise. Ans: False Difficulty: Moderate Learning Objective: LO 2 12. A Gantt chart provides a visual display of the project schedule that includes scheduled start times, finish times, and available slack. Ans: True

Difficulty: Moderate Learning Objective: LO 3

13. Project scheduling is recognized as the most critical element in the project management process. Ans: True Difficulty: Moderate Learning Objective: LO 3

14. Project control involves monitoring a project and measuring its progress toward a successful completion. Ans: True Difficulty: Moderate Learning Objective: LO 4

15. Two key elements of project control are time management and cost management. Ans: True Difficulty: Moderate Learning Objective: LO 4

16. Enterprise project management refers to the management and control of a large, complex project. Ans: False Difficulty: Moderate Learning Objective: LO 4

17. Managing quality is not an important part of project management. Ans: False Difficulty: Easy Learning Objective: LO 4

18. The principles of total quality management (TQM) cannot be applied to project management. Ans: False Difficulty: Moderate

Learning Objective: LO 4

19. Earned value analysis reports a project’s performance by tracking its forecasted completion date and anticipated budget variations. Ans: True Difficulty: Moderate Learning Objective: LO 4

20. Management and control of a companywide portfolio of projects is known as enterprise project management. Ans: True Difficulty: Easy Learning Objective: LO 4

21. PERT stands for program enterprise and resource technique. Ans: False Difficulty: Easy Learning Objective: LO 5 22. Slack represents the amount of time an activity can be delayed without delaying the project completion time. Ans: True Difficulty: Moderate Learning Objective: LO 5 23. With an activity-on-node (AON) network diagram, the nodes indicate the precedence relationships and the arrows represent the project’s activities. Ans: False Difficulty: Moderate Learning Objective: LO 5

24. A dummy variable is an activity inserted into the AOA network diagram to show a precedence relationship, but does not represent any passage of time. Ans: True Difficulty: Moderate Learning Objective: LO 5 25. Unlike PERT, CPM incorporates probabilistic time estimates into the project management process. Ans: False Difficulty: Moderate

Learning Objective: LO 5

26. Because the critical path is the shortest path through a network it defines the project completion time. Ans: False Difficulty: Moderate Learning Objective: LO 5 27. The critical path is the longest path through the project’s network. Ans: True Difficulty: Moderate Learning Objective: LO 5 28. The earliest start time for the first activity in a project is generally at time zero. Ans: True Difficulty: Moderate Learning Objective: LO 5

29. Indirect costs always increase as a project’s duration increases. Ans: True Difficulty: Moderate Feedback: Project Crashing Learning Objective: LO 5 30. Activities that are not on a project’s critical path have zero slack. Ans: False Difficulty: Moderate Learning Objective: LO 5

31. Microsoft Project is a software package that supports CPM/PERT analysis. Ans: True Difficulty: Moderate Learning Objective: LO 7

32. Crashing activates with positive slack reduces a project’s duration. Ans: False Difficulty: Moderate Learning Objective: LO 7

33. A project’s duration can be reduced by crashing activities on the critical path. Ans: True

Difficulty: Moderate Learning Objective: LO 7

34. In general, crashing costs decrease as a project’s duration is systematically reduced to a target value. Ans: False Difficulty: Moderate Learning Objective: LO 7

Multiple Choice

35. Which of the following is not a basic element in a project plan? a. Objectives b. Personnel c. Contract requirements d. All of these answer choices are correct. Ans: D Difficulty: Moderate Learning Objective: LO 1 36. Which of the following is not a general characteristic of a project? a. a project has a unique purpose b. a project has more certainty c. a project has more uncertainty d. a project often draws resources from various areas in the organization Ans: B Difficulty: Easy Learning Objective: LO 1

37. The project management process encompasses a. planning. b. scheduling. c. control. d. All of these answer choices are correct. Ans: D Difficulty: Easy Learning Objective: LO 1

38. A(n) _______________ is a project team structure that includes members from different functional areas. a. matrix organization b. project network c. organizational breakdown structure d. work breakdown structure Ans: A Difficulty: Moderate Learning Objective: LO 1

39. The _______________ is a document that provides a common understanding, justification, and expected result for a project. a. statement of work b. work breakdown structure c. scope statement d. responsibility assignment matrix Ans: C. Difficulty: Moderate Learning Objective: LO 1

40. A(n) ______________ breaks down a project into components, subcomponents, activities, and tasks. a. work breakdown structure (WBS) b. scope statement c. responsibility assignment matrix (RAM) d. organizational breakdown structure (OBS) Ans: A Difficulty: Moderate Learning Objective: LO 1

41. Which of the following is the universal business language most often utilized when managing global projects? a. French b. Spanish c. English d. Chinese Ans: C Difficulty: Moderate Learning Objective: LO 2

42. Diversity among project team members brings different a. views. b. experiences. c. values. d. All of these answer choices are correct. Ans: D Difficulty: Easy Learning Objective: LO 2

43. Which area of the world takes a lot of holidays potentially impacting project schedules? a. Asia. b. Southern Europe c. North America d. None of these answer choices is correct. Ans: B Difficulty: Easy Learning Objective: LO 2 44. Which area of the world employs a more methodically approach to business that values patience and relationship building? a. Asia. b. Southern Europe c. North America d. None of these answer choices is correct. Ans: A Difficulty: Easy Learning Objective: LO 2

45. Project managers must address cultural diversity in a. project planning b. project scheduling. c. project control. d. None of these answer choices is correct. Ans: A Difficulty: Easy Learning Objective: LO 2

46. A bar graph displaying when activities are scheduled to start, when they will be finished, and where extra time is available is known as a a. PERT chart. b. work breakdown structure (WBS). c. Gantt chart. d. responsibility assignment matrix (RAM). Ans: C Difficulty: Easy Learning Objective: LO 3

47. One disadvantage of Gantt charts, especially for large projects, is that it does not a. clearly show precedence relationships. b. indicate activity start times. c. indicate activity finish times. d. use bars to represent activities. Ans: A Difficulty: Moderate Learning Objective: LO 3

48. Which of the following is one of the oldest and most widely used scheduling technique? a. PERT b. CPM c. Gannt d. Microsoft Project Ans: C Difficulty: Easy Learning Objective: LO 3

49. Which of the following is not one of the basic steps involved in developing a schedule? a. define the activities b. sequence the activities c. estimate the time required to complete each activity d. identify the project cost Ans: D Difficulty: Moderate Learning Objective: LO 3

50. _______________ relationship is the sequential relationship of project activities to each other. a. Precedence b. Scheduling c. Slack d. Prior Ans: A Difficulty: Easy Learning Objective: LO 3

51. The single most important criterion for the success of many projects is that a. it be finished on time. b. the quality meet minimum standards. c. the costs are minimized. d. None of these answer choices is correct. Ans: A Difficulty: Moderate Learning Objective: LO 3

52. The key elements of project control includes all the following except a. time management. b. cost management. c. material management. d. communication. Ans: C Difficulty: Moderate Learning Objective: LO 4

53. A standard procedure for numerically measuring a project’s progress is referred to as a. program evaluation and review technique (PERT). b. critical path method (CPM). c. Gantt chart. d. earned value analysis. Ans: D Difficulty: Moderate Learning Objective: LO 4

54. ________________ is the process of making sure a project progresses to a successful completion. a. Project planning b. Project scheduling c. Project control d. None of these answer choices is correct. Ans: C Difficulty: Easy Learning Objective: LO 4

55. For an activity-on-node (AON) network, arrows represent activities and nodes represent events. nodes represent activities and arrows indicate precedence relationships. arrows represent events and nodes indicate precedence relationships. nodes indicate precedence relationships and arrows indicates the length of the activity time. Ans: B Difficulty: Moderate Learning Objective: LO 5 a. b. c. d.

56. Which of the following is not used to calculate probabilistic time estimates? a) optimistic b) most likely c) least likely d) pessimistic Ans: C Difficulty: Moderate Learning Objective: LO 5

57. In project management the term slack refers to the amount of time a. to complete an activity without delaying the project. b. an activity can be delayed without delaying the project. c. needed to complete the entire project. d. required to complete the project’s critical activities. Ans: B Difficulty: Moderate Learning Objective: LO 5

58. The longest path through a project network is referred to as the a. activity-on-node path.

b. path of greatest slack. c. critical path. d. noncritical path. Ans: C Difficulty: Easy Learning Objective: LO 5

59. In general, the earliest finish time for an activity is equal to a. earliest start time + activity time estimate. b. earliest start time – activity time estimate. c. earliest start time – slack time. d. earliest start time + slack time. Ans: A Difficulty: Moderate Learning Objective: LO 5

60. In general, the latest finish time for an activity is equal to a. latest finish time minus the activity time estimate. b. the minimum of the latest start times for the activities that immediately follow. c. the maximum of the latest start times for the activities that immediately follow. d. the average of the latest start times for the activities that immediately follow. Ans: B Difficulty: Hard Learning Objective: LO 5

61. For activities on a project’s critical path, a. earliest start time (ES) equals latest start time (LS). b. earliest start time (ES)is greater than latest start time (LS). c. earliest start time (ES) is less than latest start time (LS). d. earliest start time (ES) equals latest finish time (LF). Ans: A Difficulty: Moderate Learning Objective: LO 5

62. The slack time for an activity can be computed as a. latest start time (LS) – latest finish time (LF). b. earliest start time (ES) + earliest finish time (EF).

c. latest start time (LS) – earliest start time (ES). d. latest finish time (LF) + earliest finish time (EF). Ans: C Difficulty: Moderate Learning Objective: LO 5

a. b. c. d.

63. The _______________ probability distribution is typically used to describe uncertain activity times in a project. beta normal binomial exponential

Ans: A Difficulty: Moderate Learning Objective: LO 5

A project consists of the following activities: Activity A B C D E F

Activity Predecessor --A A B C D,E

Time (weeks) 5 8 3 7 6 10

Table XX 64. Using Table XX, the earliest finish (EF) time for activity D is a. 7 weeks. b. 13 weeks. c. 20 weeks. d. 30 weeks. Ans: C Difficulty: Moderate Learning Objective: LO 5

65. Using Table XX, the earliest start time for activity F is a. 30 weeks. b. 20 weeks.

c. 14 weeks. d. 13 weeks. Ans: B Difficulty: Moderate Learning Objective: LO 5

66. Using Table XX, the latest start (LS) time for activity B is a. 5 weeks. b. 8 weeks. c. 13 weeks. d. 14 weeks. Ans: A Difficulty: Moderate Learning Objective: LO 5

67. Using Table XX, the critical path for this project consists of activities a. A-B-C-D-E-F. b. A-C-E-F. c. A-B-C-F. d. A-B-D-F. Ans: D Difficulty: Moderate Learning Objective: LO 5

68. Using Table XX, the time complete the entire project is a. 20 weeks. b. 30 weeks. c. 36 weeks. d. 39 weeks. Ans: B Difficulty: Moderate Learning Objective: LO 5

69. Using Table XX, the amount of slack associated with activity C is a. 0 weeks. b. 3 weeks. c. 6 weeks.

d. None of these answer choices is correct. Ans: c Difficulty: Moderate Learning Objective: LO 5

A project consists of the following four activities with activity times in days: Activity Predecessor Time A 6 B A 5 C A 4 D B,C 8 Table YY 70. Using Table YY, the earliest finish (EF) time for activity C is a. 4 days. b. 6 days. c. 10 days. d. 11 days. Ans: C Difficulty: Moderate Learning Objective: LO 5

71. Using Table YY, the earliest start (ES) time for activity B is a. 5 days. b. 6 days. c. 11 days. d. 14 days. Ans: B Difficulty: Moderate Learning Objective: LO 5

72. Using Table YY, the latest start (LS) time for activity D is a. 8 days. b. 11 days. c. 19 days. d. 12 days. Ans: B Difficulty: Moderate Learning Objective: LO 5

73. Using Table YY, the critical path for this project is a. A-B-C. b. A-C-D. c. A-B-D. d. A-B-C-D. Ans: C Difficulty: Moderate Learning Objective: LO 5

74. Using Table YY, the time to complete the entire project would be a. 23 days. b. 19 days. c. 17 days. d. 11 days. Ans: B Difficulty: Moderate Learning Objective: LO 5

75. Using Table YY, the amount of slack associated with activity C is a. 4 days. b. 3 days. c. 2 days. d. 1 day. Ans: D Difficulty: Moderate Learning Objective: LO 6

76. The estimated mean time for an activity with a most likely time (m) equal to 11 days, the optimistic time (a) equal to 6 days, and the pessimistic time (b) equal to 18 days is a. 9.67 days. b. 11 days. c. 11.33 days. d. 11.67 days. Ans: C

Difficulty: Moderate Solution: t=(6+4*11+18)/6=11.33 days. Learning Objective: LO 6

77. The estimated variance for an activity with a most likely time (m) equal to 11 days, the optimistic time (a) equal to 6 days , and the pessimistic time (b) equal to 18 days is a. 2 days. b. 4 days. c. 6 days. d. 11 days. Ans: B Difficulty: Moderate Solution: Variance=((18-6)/6)2=4 days Learning Objective: LO 6 78. The estimated mean time for an activity with a most likely time (m) equal to 12 weeks, an optimistic time (a) equal to 9 weeks, and a pessimistic time (b) equal to 18 weeks is a. 13.0 weeks. b. 12.75 weeks. c. 12.5 weeks. d. 9.0 weeks. Ans: C Difficulty: Moderate Solution: t=(18+4*12+9)/6=12.5 weeks Learning Objective: LO 6

79. The estimated variance for an activity with a most likely time (m) equal to 12 weeks, an optimistic time (a) equal to 9 weeks, and a pessimistic time (b) equal to 18 weeks is a. 3.75 weeks. b. 1.50 weeks. c. 5.25 weeks. d. 0.25 weeks. Ans: D Difficulty: Moderate Solution: variance=((18-9)/6)2=0.25 weeks Learning Objective: LO 6

The following table of probabilistic time estimates (in weeks) and activity predecessors are provided for a project.

Activity A B C D E

Time Estimates (weeks) a m b 3 4 2 6 5

5 8 3 9 9

7 10 5 12 15

Activity Predecessor -A A B, C D

Table ZZ 80. Using Table ZZ, the expected time to complete activity A is a. 5.00 weeks. b. 7.33 weeks. c. 7.67 weeks. d. 8.00 weeks. Ans: A Difficulty: Moderate Solution: t=(3+4*5+7)/6=5.0 weeks Learning Objective: LO 6 81. Using Table ZZ, the variance for activity E is a. 1.291 weeks b. 1.667 weeks. c. 2.582 weeks. d. 2.778 weeks. Ans: D Difficulty: Moderate Solution: variance=((15-5)/6)2=2.778 weeks Learning Objective: LO 6

82. Using Table ZZ, the earliest start (ES) time for activity D is a. 8.17 weeks. b. 12.67 weeks. c. 18.33 weeks. d. 21.67 weeks. Ans: B Difficulty: Hard Learning Objective: LO 6

83. Using Table ZZ, the earliest finish time for activity C is a. 5.00 weeks. b. 8.17 weeks. c. 9.50 weeks. d. 12.67 weeks. Ans: B Difficulty: Hard Learning Objective: LO 6

84. Using Table ZZ, the critical path for the project consists of activities a. A-B-C-D-E. b. A-B-C-E. c. A-B-D-E. d. A-B-C-D. Ans: C Difficulty: Hard Learning Objective: LO 6

85. Using Table ZZ, how much slack is associated with activity C? a. 0 weeks. b. 4.50 weeks. c. 12.67 weeks. d. 31.00 weeks. Ans: B Difficulty: Hard Learning Objective: LO 6

86. Using Table ZZ, the expected time to complete the project is a. 34.17 weeks. b. 33.23 weeks. c. 31.00 weeks. d. 21.67 weeks. Ans: C Difficulty: Hard Learning Objective: LO 6

87. Using Table ZZ, the variance of the project’s total completion time is a. 5.472 weeks. b. 5.222 weeks. c. 4.872 weeks. d. 3.752 weeks. Ans: B Difficulty: Hard Learning Objective: LO 6

88. Using Table ZZ, the probability that the project could be completed in 34 weeks or less is approximately a. 86 percent. b. 89 percent. c. 91 percent. d. 96 percent. Ans: C Difficulty: Hard Solution: Z=(34-31)/2.285=1.31, Pr.=0.91 Learning Objective: LO 6 89. Using Table ZZ, the probability that the project will take longer than 33 weeks to complete is approximately a. 0.19. b. 0.32. c. 0.68. d. 0.81. Ans A Difficulty: Hard Solution: Z=(33-31)/2.285=0.875, Pr.=0.19Learning Objective: LO 6

90. The reduction in one or more activities normal time to shorten the project duration is called a. crashing. b. scheduling. c. adjusti...