Deck 3: Project Management

Question 1

7)Which of the following is not a driver for a project?

A)shortened product life cycles.
B)narrow product-launch windows.
C)growing simplicity of production processes due to automation
D)the emergence and integration of global markets

Answer 1

C

Question 2

13)A project's life cycle refers to ______.

A)the average estimated duration of a project
B)the average actual duration of a project
C)the time spent in planning the project prior to start of project
D)the sum of the time spent by project personnel on a project

Answer 2

B

Question 3

16)A project life cycle is useful because ______.

A)it provides a graphic representation of how the project is expected to perform
B)it can be used to evaluate the project budget
C)it can be used to evaluate the actual project costs
D)it can be used to evaluate the efficacy of the project's plan

Answer 3

A

Question 4

12)Which of the following is NOT one of the usual considerations in evaluating a project's success?

A)adherence to cost
B)adherence to schedule
C)adherence to sustainability principles
D)adherence to customer expectations

Question 5

5)Which of the following statements about processes is true?

A)Processes are the same as projects.
B)Processes are frequently repetitive.
C)Processes are annual events.
D)Processes are supervised by the government.

Question 6

17)In the conceptualization stage of a project,the firm ______.

A)determines the purpose of the project
B)develops a statement of work
C)creates work breakdown structures
D)establishes risk management techniques

Question 7

4)Which of the following is not an example of a project?

A)82,000 bottles of Coca-Cola bottled during a single shift
B)Apple's creation of the new iPad
C)Bechtel's construction of a large-scale chemical refining plant in South Africa
D)the construction of the Hoover Dam

Question 8

2)The goal in a project is ______.

A)to create something of value
B)to create a competitive disadvantage
C)to ensure ISO regulations are followed
D)to ensure trade regulations are followed

Question 9

6)Which of the following is not a characteristic of a project?

A)Projects are unique.
B)Projects are limited by resources.
C)Projects address customer needs.
D)Goals in projects evolve as the project progresses.

Question 10

9)Which of the following is a common organizational structure for a project?

A)corporate structure
B)matrix structure
C)team structure
D)project structure

Question 11

18)A project begins with ______.

A)an appraisal of quality to be delivered
B)a statement of its goals
C)an estimate of project costs
D)a projection of timeline for completion

Question 12

14)Which of the following statements is true with regard to a project life cycle?

A)Resource requirements are high at the beginning of the cycle.
B)Resource requirements drop sharply as the project moves into advanced stages of development.
C)Resource requirements are needed only during the defining stages of the project (i.e.,before the project actually begins).
D)Note that as a project begins,the resources (man hours)needed for it are minimal but then increase sharply as the project moves to its conclusion

Question 13

3)Which of the following statements about projects is true?

A)Projects are undertaken only by large companies.
B)Projects may cost millions of dollars.
C)Projects are undertaken only by small companies.
D)Projects are supervised by government agencies.

Question 14

15)Which of the following is not a stage of a project's life cycle?

A)conceptualization
B)planning
C)execution
D)cancellation

Question 15

8)Which of the following are challenges faced by project managers?

A)Project team members are more loyal to the project than to their parent departments.
B)Project team members may live in different parts of the world.
C)Project team members may speak the same language.
D)Project team members may have the same cultural background.

Question 16

10)Which of the following is an advantage of a functional structure for a project?

A)Members of the team bring cross-functional expertise.
B)Team members do not have divided loyalties.
C)It encourages a silo mentality (i.e.,a focus on one's own department or function).
D)It encourages adherence to corporate strategy.

Question 17

19)An analysis of alternative approaches to a project is in the ______.

A)conceptualization stage of a project
B)planning stage of a project
C)conclusion stage of a project
D)growth stage of a project

Question 18

11)A pure-project structure is characterized by ______.

A)a self-contained business unit
B)using personnel only from senior management
C)ensuring government regulations are complied with
D)ensuring ISO regulations compliance

Question 19

20)A statement of work ______.

A)is a detailed description of the work required for the project
B)specifies the scope of work needed to be compliant with government regulations
C)specifies the scope of work needed to be compliant with ISO regulations
D)is a summary description of the project plan

Question 20

1)Which of the following is NOT a characteristic of a project?

A)It is designed to meet established goals.
B)A project has a beginning.
C)A project has an end.
D)It is repetitive (i.e.,done frequently).

Question 21

32)Types of risks that a project can face include ______.

A)the possibility that the project runs into financial risks
B)the possibility that the project is in compliance with government requirements
C)the possibility that the project costs are significantly below that budgeted
D)the possibility that the project is completed well ahead of schedule

Question 22

37)Documenting the risk is helpful as a risk mitigation strategy when ______.

A)the same personnel carry out different projects
B)similar kinds of projects are being executed
C)government supervision is involved
D)a project spans multiple legal jurisdictions

Question 23

36)Which of the following is NOT a way to mitigate risk?

A)share the risk
B)blame it on a third party
C)document the risk
D)transfer the risk

Question 24

38)Project scheduling is ______.

A)the process of converting a project's goals into a logical method for completing it on time
B)the process of identifying the period in the company's growth when the project should begin
C)the process of identifying the time in the year when the project should begin
D)the process of identifying the point in a product's life cycle when the project should begin

Question 25

29)Which of the following contributes to high project risk?

A)Probability of failure is low.
B)If the project fails,the results can be easily rectified.
C)The project is fully insured against failure.
D)Consequences of project failure are serious.

Question 26

40)One way to determine the duration of each activity in a project with a reasonable degree of accuracy is ______.

A)deterministic estimation
B)qualitative estimation
C)optimistic estimation
D)pessimistic estimation

Question 27

28)Project risk is calculated by ______.

A)historical experience with projects succeeding or not succeeding
B)the subjective judgment of the project manager
C)multiplying the likelihood of event happening with consequences of event
D)dividing the likelihood of event happening with consequences of event

Question 28

27)A project risk refers to ______.

A)the potential that the project may not be awarded to a company that is bidding for it
B)the potential of any event that can adversely affect the feasibility of a project
C)the potential for project costs to be significantly less than budgeted
D)the potential for project time to be significantly less than scheduled

Question 29

25)The work breakdown structure (WBS)______.

A)is part of the conceptualization stage
B)breaks down a project's overall mission into step-by-step tasks
C)identifies the characteristics required in the project manager
D)specifies what is required to be compliant with ISO standards

Question 30

26)Which of the following statements about the work package is true?

A)The work breakdown structure is part of the work package.
B)The work package is determined in the conceptualization stage of the project.
C)The work package is part of the process following the completion of the project.
D)The work package is part of the work breakdown structure.

Question 31

34)Which of the following correctly pairs the type of risk with its description?

A)contractual risks: the risk of monetary loss
B)commercial risks: the risk of personnel leaving the project
C)financial risks: the risk of market not accepting a product
D)technical risks: the risk posed by new technologies

Question 32

24)In comparison to the past,modern weapon systems ______.

A)have a less detailed statement of work
B)have a more detailed statement of work
C)are not in compliance with the Geneva Convention
D)are much less expensive

Question 33

39)Project scheduling includes ______.

A)assigning the project to multiple managers
B)estimating the duration for each activity in a project
C)estimating the cost involved for each activity in a project
D)identifying the equipment needed to complete a project

Question 34

30)Which of the following is NOT a question a company is likely to ask in assessing project risk?

A)What adverse events are likely to happen?
B)What are the possible outcomes of these adverse events?
C)Who will be held responsible in case of project failure?
D)How can the potential risk be identified?

Question 35

21)Which of the following is not a detail usually included in a project's statement of work?

A)problem statement
B)technical description
C)timeline and milestones
D)government regulations and guidelines influencing the project

Question 36

33)Which of the following is NOT a type of risk that a project can face?

A)contractual risk
B)commercial risk
C)on-time completion risk
D)technical risk

Question 37

35)Which of the following is NOT a popular approach to risk mitigation?

A)simply accept the risk
B)minimize the risk
C)share the risk
D)avoid doing risky projects

Question 38

22)The project's specification is also known as ______.

A)the project milestone
B)the project scale
C)the project scope
D)none of the these

Question 39

23)Scope creep is ______.

A)a rare occurrence in projects
B)resulted from repeated modifications of a project's specifications
C)resulted from changes in the project's team members
D)always an undesirable development

Question 40

31)Which of the following is NOT a step in the process of managing risk?

A)identifying risks
B)analyzing probability of risk occurring
C)formulating risk mitigation strategies
D)identifying person to be held responsible

Question 41

50)An activity network ______.

A)indicates the duration for each activity
B)indicates how activities are best sequenced
C)is part of the work breakdown structure
D)is developed by using CPM

Question 42

51)One method for creating an activity network is ______.

A)activity on node (AON)
B)activity on activity (AOA)
C)activity on cessation (AOC)
D)activity on termination (AOT)

Question 43

42)Which of the following is NOT one of the estimates used by PERT to estimate the duration of an activity?

A)optimistic time
B)most likely time
C)catastrophic time
D)pessimistic time

Question 44

43)Which of the following correctly pairs the standard deviation with its associated probability?

A)six standard deviations,probability of 99.7%
B)three standard deviations,probability of 49.8%
C)two standard deviations,probability of 68.2%
D)five standard deviations,probability of 95.5%

Question 45

54)The numbers in the AOA method represent ______.

A)the event
B)the importance of the event (higher numbers represent more important events)
C)the duration of the event (higher numbers represent more time-consuming events)
D)the cost of the event (higher numbers represent more costly events)

Question 46

53)In the AOA method,______.

A)an arrow represents an activity
B)a node represents cost of the activity preceding the node
C)a node represents time for the activity
D)an arrow represents the cost of the activity

Question 47

47)In a Gantt chart,the time to complete a project can be estimated by ______.

A)the average of the longest duration for each sequenced activity
B)adding the lengths of the longest individual legs of each sequenced activity
C)the average of the longest duration for each sequenced activity multiplied by 3
D)adding the lengths of the shortest individual legs of each sequenced activity

Question 48

55)Which of the following statements is true in comparing the AON method with the AOA method?

A)The AON method is more difficult to visualize.
B)The AOA method is more costly.
C)The AON method is more commonly used.
D)Most popular project management packages use the AOA method.

Question 49

48)A drawback of Gantt charts is ______.

A)they may not show the exact sequencing of one activity to another
B)they are complex to develop
C)they are time-consuming to develop
D)they are expensive to develop

Question 50

60)The late finish time (LF)is ______.

A)the latest possible date an activity can be completed without delaying the project's completion
B)the maximum extent to which an activity can be delayed
C)the latest possible date an activity can be completed before the activity becomes irrelevant
D)the latest possible time an activity can be completed on a given day

Question 51

46)The Gantt Chart ______.

A)links project activities to a schedule
B)was introduced in the 1990s
C)was developed in Japan
D)uses probabilistic scheduling

Question 52

45)Precedence diagramming is also known as ______.

A)network diagramming
B)developing Gantt charts
C)activity diagramming
D)process mapping

Question 53

44)Which of the following statements is true with regard to the distribution of time for the duration of an activity?

A)The optimistic time estimate is 3 times shorter than the pessimistic time estimate.
B)The most likely time estimate is located at an equidistant interval between the optimistic and pessimistic estimates.
C)The pessimistic and optimistic times are asymmetrical around the mean.
D)The standard deviation for the pessimistic estimate is higher than that for the optimistic estimate.

Question 54

58)Early start time (ES)refers to ______.

A)the earliest time on a given day that the project can start/continue
B)the earliest possible date on which an activity can start based on previous activities
C)the latest time on a given day that the project can start/continue
D)the earliest possible date on in a year that an activity can start

Question 55

41)Which of the following correctly pairs a technique with its approach?

A)The program evaluation and review technique (PERT)uses probabilistic estimation to determine the duration of an activity.
B)The critical path method (CPM)uses subjective estimation to determine the duration of an activity.
C)The program evaluation and review technique (PERT)uses optimistic estimation to determine the duration of an activity.
D)The critical path method (CPM)uses pessimistic estimation to determine the duration of an activity.

Question 56

56)Which of the following statements is a correct and useful rule in constructing networks?

A)Network diagrams start at the top right and flow down to the left.
B)We can never have one arrow crossing another.
C)An activity cannot begin until all preceding activities have been completed.
D)An activity can be repeated as desired.

Question 57

57)Which of the following statements is true about labels for nodes in AON network diagrams?

A)They identify the project's activities.
B)They identify the project's manager.
C)They identify the project's timeline.
D)They identify the project's budget.

Question 58

52)In the AON method,______.

A)the node represents the path to the next project activity
B)the arrow represents the sequencing of tasks from node to node through the network
C)the arrow represents the actual time taken to complete a task in a project
D)the arrow represents the scheduled time to complete a task in a project

Question 59

59)Early finish time (EF)______.

A)is the earliest possible date in the year on which an activity can be completed
B)is calculated by adding the duration for an activity to the ES
B)is calculated by subtracting the duration for an activity from the ES
C)is the earliest possible time on a day on which an activity can be completed

Question 60

49)Which of the following is a limitation of Gantt charts?

A)The Gantt chart may not tell us which activities can be worked on concurrently.
B)The Gantt chart does not tell us how to mitigate risk.
C)The Gantt chart does not tell us what to do in case of budget overruns.
D)The Gantt chart does not tell us what to do in case the project is not in compliance.

Question 61

76)"Crashing" a project ______.

A)is speeding up a project's activities to accelerate its completion
B)is equivalent to cancellation of a project
C)is the unexpected termination of a project due to an external event (e.g.,a natural disaster)
D)is the unexpected termination of a project due to an internal event (e.g.,poor management)

Question 62

66)A critical path consists of ______.

A)activities that are important
B)activities that are time-consuming
C)activities that have zero slack
D)activities that have some slack

Question 63

70)At a merge point,______.

A)the largest preceding EF becomes the ES for that node
B)the largest preceding ES becomes the EF for that node
C)the smallest preceding EF becomes the ES for that node
D)the smallest preceding ES becomes the EF for that node

Question 64

71)The backward pass ______.

A)starts at the end of the project
B)moves toward the last node in the project
C)ends at the middle node in the project
D)starts at the beginning of the project

Question 65

72)At a burst point,______.

A)you have a node with two or more successors
B)the largest preceding EF becomes the ES for that node
C)you have a node with two or more predecessors
D)the largest preceding ES becomes the LF for that node

Question 66

78)In considering the impact supply chains have on projects,______.

A)the goal is to create a coordinated planning network that allows for the optimal acquisition of goods and services used in a project
B)the goal is to create a coordinated planning network that allows for the highest acquisition costs of goods and services used in a project
C)organizations seek to coordinate a planning network that allows for the highest warehousing costs of goods and services used in a project
D)organizations seek to coordinate a planning network that allows for the highest ordering costs of goods and services used in a project

Question 67

63)Which of the following statements is true with regard to paths?

A)Paths are sequences of activities in a network.
B)There is usually only one path in a network.
C)Once a path is determined,it cannot be changed.
D)Activities in a network always follow a determined path.

Question 68

62)Which of the following is an appropriate label for an activity node?

A)early start
B)project manager's name
C)cost of project
D)applicable government regulation

Question 69

65)Which is the critical path in the following?

A)Path 1 takes 18 days.
B)Path 2 takes 14 days.
C)Path 3 takes 22 days.
D)Path 4 takes 16 day.

Question 70

80)In managing projects in supply chains,working with members of multiple cultures is one of the consequences of ______.

A)globalization
B)monetarization
C)air travel
D)NAFTA

Question 71

61)Which of the following is NOT true of activity slack?

A)It is the amount of time an activity may be delayed (from time of early start)without delaying the completion of the project.
B)It is also known as activity float.
C)It is calculated as LS - ES.
D)It is calculated as LF + EF.

Question 72

69)The forward pass method allows us to ______.

A)determine the earliest time each activity can begin
B)determine the latest time each activity can be completed
C)determine the latest time each activity can begin
D)determine the latest time to which each activity can be postponed

Question 73

75)If an estimate for an activity is deterministic,then ______.

A)sufficient historical information is available to make this determination with a reasonable degree of accuracy
B)the estimate is based on probability that the activity will be completed in a given time frame
C)the estimate is based on probability that the activity will be completed in a given time frame plus/minus three standard deviations
D)the estimate is based on a stochastic model

Question 74

67)A merge point refers to ______.

A)a node along the critical path
B)a node with two or more immediate predecessors
C)a node with two or more immediate and successive nodes
D)a node that represents the point where cross-functional resources are pooled

Question 75

73)Which of the following statements is FALSE with regard to slack time?

A)Slack time is the amount of time an activity can be delayed without delaying the overall project.
B)Slack time is calculated as LF - EF.
C)Slack time is calculated as LS - ES.
D)Slack time is calculated as LF - ES.

Question 76

79)Which of the following is an activity of project supply chains?

A)procurement
B)marketing
C)advertising
D)sales

Question 77

74)If an activity has 4 days of slack,then ______.

A)a delay of 3 days will not have an impact
B)a delay of 5 days will not have an impact
C)a delay of 7 days will not have an impact
D)a delay of 9 days will not have an impact

Question 78

77)To complete a project quickly,we should ______.

A)crash activities that have slack time
B)crash only critical activities
C)crash only noncritical activities
D)crash all activities

Question 79

68)Labeling activity nodes in the network is accomplished by ______.

A)the forward pass method
B)the side-tracking method
C)the project leader
D)the appropriate government agency

Question 80

64)A critical path ______.

A)is the longest individual path in a network
B)is the path of a critical task in the network
C)is the path on which other activities depend
D)is the path that is most expensive in the project