Deck 9: Reducing Project Duration

Question 1

Managers have several effective methods for crashing specific project activities when resources are not constrained.

Answer 1

True

Question 2

The cost slope of an activity is calculated by dividing the run by the rise.

Answer 2

False

Question 3

When adding resources, there are limits as to how much speed can be gained.

Answer 3

True

Question 4

An activity must be crashed on each critical path in order to reduce project duration.

Question 5

Total cost for specific project durations is computed and then compared with the benefits of reducing project time, before the project begins or while it is in progress.

Question 6

Indirect costs generally represent overhead costs such as supervision, administration, consultants, and interest.

Question 7

When reducing project duration, there will always be an optimum cost-time point where the total cost of the project is less than it was when the project was initially planned under normal conditions.

Question 8

Brooks' law states that adding manpower to a software project helps keep it on schedule.

Question 9

Crashing can negatively impact the morale and motivation of the project team.

Question 10

The higher the cost slope of an activity the lower the cost to reduce its duration.

Question 11

Crashing frequently results in over allocation of resources.

Question 12

Because direct costs are assumed to be developed from "normal" methods and in a "normal" amount of time, any reduction in activity time should add to the costs of the activity.

Question 13

If indirect costs are a significant percentage of total project costs, reductions in project time can represent very real savings.

Question 14

Shortening an activity's duration is termed crashing.

Question 15

The total cost for each time unit of a project is the sum of labor, materials, and equipment.

Question 16

Crashing a more expensive activity may be wise if fewer inherent risks are involved.

Question 17

Direct costs are so named because they can be assigned directly to a work package and activity.

Question 18

When crashing an activity, you always crash to its crash point.

Question 19

There are more options available for reducing project time if you are not resource constrained.

Question 20

Incentive contracts can make the reduction of project time rewarding-usually for both the project contractor and owner.

Question 21

Crashing activities on a project network that is sensitive could increase the risk of the project being late.

Question 22

As a project is crashed and project duration is reduced, indirect costs typically

A) increase.
B) become unstable.
C) decrease.
D) become unreliable.
E) stay the same.

Question 23

Resources are frequently over-allocated when crashing a schedule.

Question 24

The direct cost for completing an activity in the shortest time it can realistically be completed in is called its __________ cost.

A) normal
B) reserve
C) crash
D) accelerated
E) expedited

Question 25

Before crashing, direct costs for an activity represent normal costs, which typically mean low-cost, efficient methods for completing the activity in a(n) ________ amount of time.

A) normal
B) budgeted
C) optimized
D) expected
E) targeted

Question 26

One of the advantages of using a project cost-duration graph is that it keeps the importance of indirect costs in the forefront of decision making.

Question 27

Which of the following is NOT considered a project indirect cost?

A) Supervision
B) Consultants
C) Equipment
D) Interest
E) The project manager's salary

Question 28

The simplest way to reduce cost on a project is to reduce the scope of a project.

A) imposed project deadlines.
B) time to market.
C) unforeseen project delays.
D) high overhead.
E) incentive contracts.

Question 29

As a project is crashed and project duration is reduced, direct costs typically

A) increase.
B) become unstable.
C) decrease.
D) become unreliable.
E) stay the same.

Question 30

Cost slope can be determined by dividing the

A) run by the rise.
B) rise by the run.
C) crash cost by the normal cost.
D) normal cost by the crash cost.
E) indirect cost by direct cost.

Question 31

Design flaws, equipment breakdown and adverse weather can create negative slack. These are examples of the need for reducing project duration on successive critical activities that was caused by

A) imposed project deadlines.
B) time to market.
C) unforeseen project delays.
D) high overhead.
E) incentive contracts.

Question 32

The accuracy of crash times and costs is frequently rough at best, when compared with normal time and cost.

Question 33

For most projects, the estimation of a crash time is relatively easy.

Question 34

An activity's crash cost includes ________ costs.

A) direct
B) indirect
C) overhead
D) total
E) normal

Question 35

Making the decision to crash is the result of careful fiscal analysis and deep understanding of the project.

Question 36

In a Project Cost-Duration Graph, total project costs are a sum of

A) labor, material and equipment costs.
B) direct costs plus interest.
C) direct labor costs and the project manager's salary.
D) direct costs and the project manager's salary.
E) direct and indirect costs.

Question 37

The shortest possible time an activity can be completed realistically is called ___­­­_____ time.

A) expedited
B) accelerated
C) crash
D) optimistic
E) optimal

Question 38

Insensitive networks are a rarity; Planning for a sensitive network is more practical.

Question 39

Intense global competition and rapid technological advances create pressure to develop projects rapidly. 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.

Question 40

A construction contractor finished a bridge across a river 12 months early and received more than $5 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.

Question 41

When it is necessary to reduce project duration and resources are constrained, which of the following is NOT a reasonable option?

A) Establish a core project team
B) Fast-tracking
C) Reduce project scope
D) Compromise quality
E) Use critical-chain project management

Question 42

When reducing project duration, the duration for a project that is optimal 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.

Question 43

When determining which activity to crash, there are other factors that should be assessed beyond cost. Which of the following is NOT one of these factors?

A) The inherent risk associated with the activity
B) How crashing will impact the morale and motivation of the individuals working on that activity
C) Resource availability after crashing that activity
D) The level of difficulty involved in completing the activity
E) When during the project the activity will occur

Question 44

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) Move the completion date further out
D) Brainstorm cost savings options
E) Outsource project activities

Question 45

Which of the following is NOT a technique for accelerating project completion when resources are not constrained?

A) Assign additional staff and equipment
B) Establish a core team
C) Do it twice-fast and correctly
D) Reduce project scope
E) Compromise quality

Question 46

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)

Question 47

The relationship between the normal point and the crash point is assumed to be

A) linear.
B) curvilinear.
C) variable.
D) conversely related.
E) exponentially related.

Question 48

Sometimes very high __________ costs are recognized before a project begins and reducing these costs through shorter project durations becomes a high priority.

A) labor
B) direct
C) project
D) overhead
E) interest

Question 49

Which of the following projects would be least benefited if additional resources were added?

A) Splitting and stacking a cord of wood
B) Developing new software
C) Harvesting a crop by hand
D) Building a cabin
E) Moving to a new house

Question 50

When a project manager must reduce project duration but resources are constrained, creating a software program that will have less functionality than originally planned or building a house without the bonus room and the basement that the owner originally specified in the plans would both be examples of

A) fast-tracking.
B) use critical-chain project management.
C) reduce project scope.
D) compromise quality.
E) do it twice-fast and correctly.

Question 51

Which of the following is NOT a rational reason to reduce project duration?

A) Incentive contracts
B) High network sensitivity
C) Imposed deadlines
D) High overhead costs
E) Unforeseen delays

Question 52

Reducing project duration

A) involves crashing all activities to their crash point.
B) can only be done when resources are not constrained.
C) is always more expensive.
D) tends to increase network sensitivity.
E) should be considered for all projects.

Question 53

In selecting the best activity to crash you would first select the activity with the

A) least steep slope.
B) earliest start time.
C) longest duration.
D) most steep slope.
E) largest crash time.

Question 54

One way of reducing project costs is identifying tasks that _________ can do themselves.

A) vendors
B) suppliers
C) customers
D) company employees
E) project teams

Question 55

All of the following are disadvantages of scheduling overtime EXCEPT

A) overtime is associated with additional costs of coordination and communication.
B) sustained overtime work by salaried employees may incur burnout.
C) productivity is reduced the longer one is working.
D) more hours results in higher expenses if paying workers hourly.
E) continued overtime can lead to a higher turnover rate.

Question 56

When reducing project duration, the crash cost per unit has to be calculated and the maximum units each activity can be reduced must be known. After this, the critical path must be identified. What is the next step?

A) Find the activity with the lowest crash cost
B) Calculate the optimum cost-time point
C) Calculate the crash point
D) Calculate indirect cost per time unit
E) Find the activity with the steepest cost slope

Question 57

According to Brooks' Law, adding more people to a late project is most likely to have which of the following impacts?

A) Keep the project from slipping any further
B) Get the project back on schedule
C) Make the project slip further
D) Lead to burnout
E) Decrease team motivation

Question 58

An activity's normal time and cost are 10 and $120, respectively. Its estimated crash time and cost are 7 and $180, respectively. What is this activity's crash cost per time unit?

A) $20
B) $30
C) $40
D) $50
E) $60

Question 59

Helen has just learned that she needs to reduce the duration of her project to meet an imposed deadline. She has calculated the crash cost per unit and knows the maximum units each activity can be reduced. What is the next step?

A) Find the activity with the lowest crash cost
B) Calculate the optimum cost-time point
C) Calculate the crash point
D) Identify the critical path
E) Find the activity with the highest crash cost

Question 60

The less steep the cost slope of an activity, the

A) less it costs to shorten one time period.
B) more it costs to shorten one time period.
C) smaller the crash time is.
D) larger the crash time is.
E) cannot be determined by the information given.

Question 61

The direct cost for completing an activity as early as possible is called its ________ cost.

A) budgeted
B) time-limited
C) crash
D) minimal
E) early completion

Question 62

An activity's ________ is calculated by dividing the rise by the run.

A) run rate
B) rise rate
C) rise / run rate
D) slope
E) daily cost

Question 63

Costs such as labor, materials, equipment, or sub-contractors are examples of ________ project costs.

A) direct
B) budgeted
C) accumulated
D) indirect
E) time-phased

Question 64

The ________ project cost is the sum of the indirect and direct costs.

A) accumulated
B) total
C) budgeted
D) time-phased
E) estimated

Question 65

Overhead costs such as supervision, administration, consultants, and interest are examples of ________ project costs.

A) direct
B) budgeted
C) accumulated
D) indirect
E) time-phased

Question 66

Which of the following is not likely to result in an imposed deadline?

A) Design flaws.
B) Marketing promises the product to the customer within three months.
C) The president announces availability of the product in one year.
D) The chief technology officer says, "finish the projects in six months or start packing."
E) Intense global competition.

Question 67

It is going to cost $120,000 a day simply to house and feed a construction crew in the farthest reaches of northern Alaska. This would be an example of a situation requiring reducing the project duration due to

A) imposed project deadlines.
B) time to market.
C) unforeseen project delays.
D) high overhead.
E) incentive contracts.

Question 68

When the project team is salaried, which of the following is the preferred choice for accelerating project completion?

A) Assign additional staff and equipment
B) Subcontract work
C) Schedule overtime
D) Outsource project work
E) Establish a core project team

Question 69

An insensitive project network has the benefit of:

A) Not increasing risk as activities are initially crashed.
B) Having potential for real cost savings when crashed.
C) Having potential for significant time savings when crashed.
D) Having potential for flexible scheduling.
E) All of these alternatives are correct.

Question 70

Direct costs are assignable directly to a particular ________.

A) activity
B) resource
C) work package
D) task
E) milestone

Question 71

Consider the following table of activities that describes a project network. Which activity will you crash first?

A) A
B) B
C) C
D) D
E) E

Question 72

There are fewer options available for reducing project time if you are __________________ than if you can spend more than your original budget.

A) time-constrained
B) vision-limited
C) schedule-constrained
D) resource-constrained
E) physically-constrained

Question 73

Consider the following table of activities that describes a project network. Which activity will you crash second?

A) A
B) B
C) C
D) D
E) E

Question 74

In order to shorten the duration of a project the project manager should limit the choices of activities to just those that are on the __________.

A) shortest path
B) path with the greatest variability
C) critical path
D) path with the least amount of resources required
E) path with the most resources required

Question 75

A project that has several near-critical or critical paths is said to be

A) elastic.
B) fully consumed.
C) inherently risky.
D) sensitive.
E) insensitive.

Question 76

When crashing a schedule, this may set in when a least-cost method is used.

A) Increased risk
B) Fatigue and resentment
C) Increased cost
D) Decrease in available management reserve
E) Reduced quality

Question 77

Reducing the duration of an activity is called ________.

A) reduction
B) making smaller
C) crashing
D) re-assessment
E) acceleration

Question 78

Because direct costs are assumed to be developed from normal methods and in a normal amount of time, any reduction in activity time should ________ the direct cost of the activity.

A) decrease
B) increase
C) reduce
D) expand
E) approximate

Question 79

Compressing activities on a project with a sensitive project network will:

A) Increase risk of delaying the project.
B) Improve cost-time crashing success.
C) Reduce scheduling flexibility.
D) Increase risk of delaying the project and reduce scheduling flexibility.
E) Increase risk of delaying the project but improve cost-time crashing success.

Question 80

The ________ time for an activity represents low-cost, realistic, efficient methods for completing the activity under typical conditions.

A) normal
B) crash
C) estimated
D) accelerated
E) completion