Deck 18: Procuring Professional Services

Question 1

osts are often divided into two categories: ____________.

A) fixed and flexible costs
B) direct and indirect costs
C) necessary and unnecessary
D) expected and unexpected
E) budgeted and unbudgeted

Answer 1

B

Question 2

___________ are all other expenditures, sometimes referred to as hidden costs.

A) Flexible
B) Unnecessary
C) Indirect costs
D) Unexpected
E) Unbudgeted

Answer 2

C

Question 3

Some of the tasks involved in a typical complex project are given below:stablish at least a 5 percent productivity improvement over previously established norms for the type of work in question.Labor budgets must be available to the contractor early in the project.Measures of actual performance against budgeted performance must be collected accurately. The data must be reliable.These data should then be used for decision making.

Answer 3

False

Question 4

In recent years, many manufacturing and service firms have been challenged to increase their focus on ___________ and _____________. At the same time, these organizations have had to increase productivity and quality, decrease cost of service, and deal with the demands of changing technology.

A) competitive prices / customer service
B) reducing expenses / competitive prices
C) competition / quality products
D) customer satisfaction / quality of service
E) quality products / customer service

Question 5

Over the past 60 years, since the end of World War II, the _________ has taken on an increasingly important role in the world economy. For example, in the United States, jobs in the __________ have increased from just fewer than 50 percent of the total jobs in the U.S. economy to more than 85 percent of the total jobs.

A) industrial sector / industrial sector
B) retail sector / retail sector
C) service sector / service sector
D) manufacturing sector / manufacturing sector
E) insurance sector / insurance sector

Question 6

The duties and responsibilities of the project or contract manager are diversified. The precise duties depend on the owner's organization. The skill and experience of the _____________ are the ultimate determinants of a successful project.

A) contractor
B) project manager
C) contract manager
D) owner
E) owner's employees

Question 7

__________________ have altered most customers' tolerance for less than full satisfaction with products and services they receive.

A) Expanding competition
B) Emerging technologies
C) Improved communications
D) All the above
E) "A" and "B" only

Question 8

If the ______ is adequate, the right contractor is selected, and the ultimate price is reasonable, then a good management effort will secure the project. A poor management effort will undo all three pre-execution achievements.

A) SOP
B) DWA
C) CCC
D) SPA
E) SOW

Question 9

Many organizations in the ____________, especially those offering transportation, financial, and communication services, have encountered changes in their regulatory environment and in their technological structure. These changes have opened up new global markets but, at the same time, forced ____________ to determine ways in which to remain competitive or they would cease to exist.

A) industrial sector / industrial industries
B) regulatory sector / regulatory sector
C) TFC sector / TFC industries
D) performance sector / performance industries
E) service sector / service industries

Question 10

Some of the tasks involved in a typical complex project are given below:stablish a reasonable budget.Know where expenditures are being made.orecast final expenditures.Identify problem areas by comparing expenditures and budgets.

Question 11

Some of the tasks involved in a typical complex project are given below:ontractors/managers must be assigned direct cost center responsibility early.Joint reviews of direct cost must take place on a scheduled basis.Use tracking estimates to monitor budgeted versus actual costs.Work hours must not be controlled.

Question 12

irect ____________ is increasing in the manufacturing sector as manufacturing flexibility allows more customized design.

A) competition
B) internet connectivity
C) customer contact
D) service
E) shipments

Question 13

Some of the tasks involved in a typical complex project are given below:
Labor productivity, or effectiveness, should be tracked for each of the direct labor accounts.Schedule control is essential to the success of any complex project.Major projects are a complex effort to mobilize and coordinate large numbers of personnel, materials, and equipment.

Question 14

Some of the tasks involved in a typical complex project are given below, with one exception. Which one is not an appropriate task?

A) Apprise contractors and managers of the information early so that actions can be taken to achieve economies.
B) Determine total cost of a laborer.
C) The productivity must be maximized.
D) The field manager must properly balance the indirect costs to achieve the maximum level of efficiency.
E) Determine the amount of union dues.

Question 15

The ___________ is an agreement between the project owner (the Federal Highway Administration and a specific state department of transportation) and the contractor.

A) scope of work
B) working agreement
C) standard of work agreement
D) detailed working agreement
E) scope of project agreement

Question 16

One of the tasks involved in a typical complex project is given below:
Good schedule control is to develop a plan, implement the plan, monitor execution of the plan, and make changes to the plan when necessary in order to meet target.

Question 17

Some factors that may contribute to a successful project are listed below. Which of the following is/are the most important?

A) Adequacy of site management.
B) Relationship between the owner and contractor.
C) Financial stability of the owner.
D) All of the above
E) "A" and "B" only

Question 18

The need for ____________ in all types of organizations to recognize and be able to provide high-quality, efficient service to customers has become essential. The importance of a responsive workforce, able to execute procurement activities in keeping with organizational objectives, cannot be understated.

A) managers
B) sales agents
C) employees
D) supervisors
E) purchasing agents and buyers

Question 19

_____________ include materials, labor, and subcontract expenditures associated with the actual implementation.

A) Expected costs
B) Budgeted costs
C) Necessary costs
D) Direct costs
E) Fixed

Question 20

In order to be successful, the project must come in meeting the SPA, on time and within budget.

Question 21

Planning must be done before performing any function. A schedule is a time-phased plan. The principal uses of schedules in the implementation process are outlined in the textbook. The list below contains items from the section entitled, During Project. One does not belong. Which one is incorrect?

A) Enables the contractor and the administrator to prepare a checklist of key dates, activities, resources, and so on.
B) Aids in tracking expenses, both direct and indirect costs.
C) Provides a means for evaluating the effects of changes and delays.
D) Serves as a basis for evaluating progress.
E) Aids in the coordination of resources.

Question 22

Planning must be done before performing any function. A schedule is a time-phased plan. The principal uses of schedules in the implementation process are outlined in the textbook. The list below contains items from the section entitled, Before Starting Project. One does not belong. Which one is incorrect?

A) Forms the basis for management to issue instructions to subordinates.
B) Establishes the planned rate of progress.
C) Identifies the expenses associated with the use of manpower, materials, and machines.
D) Establishes the planned sequence for the use of manpower, materials, machines, and money.
E) Provides an estimate of the time required for each portion of the project as well as for the total project.

Question 23

ecause of its impact on the entire project, _____________ analysis is an important aspect of project planning.

A) financial
B) organizational
C) critical path
D) human resources
E) performance

Question 24

___________ is described as follows: CPM is usually used for projects with predictable task times. CPM is a deterministic model that does not take into account variation in the completion time, so only one number is used for an activity's time estimate.

A) Specify each individual activity
B) Draw a network diagram
C) Update the CPM diagram as the project progresses
D) Sequence the activities
E) Estimate the completion time for each activity

Question 25

___________ is described as follows: Once the activities and their sequencing have been defined, the CPM diagram can be drawn.

A) Draw a network diagram
B) Specify each individual activity
C) Sequence the activities
D) Identify the critical path (longest path through the network)
E) Estimate the completion time for each activity

Question 26

The __________ is a robust logical system for planning and scheduling using bar charts. _____ is a graphical representation of the interrelationships of the various project activities. With _____ the contract administrator can assess the status of the project at any time, and it enables the contract administrator to monitor and revise scheduling during the project to meet the desired completion date.

A) critical path method / CPM / CPM
B) essential path method / EPM / EPM
C) compressed path method / CPM / CPM
D) quality path method / QPM / QPM
E) managed path method / MPM / MPM

Question 27

One of the tasks involved in a typical complex project is given below:CC charts or PAT grafts should be used to assess progress.

Question 28

___________ is described as follows: The work breakdown structure, a listing can be made of all the activities in the project. This listing can be used as the basis for adding sequence and duration information in later steps.

A) Sequence the activities
B) Identify the critical path (longest path through the network)
C) Specify each individual activity
D) Draw a network diagram
E) Estimate the completion time for each activity

Question 29

___________ is/are identified as the longest-duration path through the network.

A) The sequence of activities
B) The network diagram
C) The events
D) The essential path
E) The critical path

Question 30

Progress curves are useful tools when a project is under way. Progress curves:
Monitor progress. You can immediately see what should have been achieved at a point in time.llow you to see how proactive action may keep the project on course.

Question 31

Planning must be done before performing any function. A schedule is a time-phased plan. The principal uses of schedules in the implementation process are outlined in the textbook. The list below contains some items which might have come from the section entitled, After Completion of Project. Which one(s) is/are correct?

A) Permits a review and analysis of the project as actually carried out.
B) Provides an accurate trail of expenses as budgeted.
C) Provides historical data for improving future planning and estimating.
D) All the above.
E) "A" and "C" only

Question 32

S - earliest start time can be defined as:

A) equal to the earliest start time for the activity plus the time required to complete the activity.
B) equal to the earliest start time for the activity plus the time required to complete the activity.
C) the earliest time at which the activity can start given that its precedent activities must be completed first.
D) equal to the latest finish time minus the time required to complete the activity.

Question 33

F - earliest finish time can be defines as:

A) the earliest time at which the activity can start given that its precedent activities must be completed first.
B) equal to the earliest start time for the activity plus the time required to complete the activity.
C) equal to the latest finish time minus the time required to complete the activity.
D) equal to the earliest start time for the activity plus the time required to complete the activity.

Question 34

One of the tasks involved in a typical complex project is given below:
The master schedule is generally a logical network-type schedule that reflects perfect execution plans, the strategy, equipment delivery estimates, and engineering plans. Project milestones must be reviewed and assessed.

Question 35

The critical path can be identified by determining the following four parameters for each activity:S - earliest start timeF - earliest finish time
LF - latest finish time
LS - latest start time

Question 36

___________ is described as follows: Some activities are concurrent with other activities. A listing of the immediate predecessors of each activity is useful for constructing the CPM network diagram.

A) Identify the critical path (longest path through the network)
B) Sequence the activities
C) Specify each individual activity
D) Draw a network diagram
E) Update the CPM diagram as the project progresses

Question 37

The steps in the CPM project planning process are:
Specify each individual activity.Sequence the activities.raw a network diagram.stimate the completion time for each activity.Identify the critical path (longest path through the network).Update the CPM diagram as the project progresses.

Question 38

Gantt charts (or Bar charts) are useful tools for planning and scheduling projects. Gantt charts:llow you to assess how long a project should take.Lay out the order in which tasks need to be carried out.Help manage the dependencies between tasks.etermine the resources needed.

Question 39

The CPM network consists of arcs and nodes. The ______ represent the actual activities while the ______ (events) represent when the activity starts and finishes.

A) nodes / arcs
B) arcs / nodes

Question 40

The CPM establishes:

A) The quantity of work for each activity.
B) The startup and sequence or order in which the work or the activity is to be done.
C) The rate at which the work will be performed to reach completion.
D) All of the above
E) "B" and "C" only

Question 41

The critical path is the path through the project network in which none of the activities have _______, that is, the path for which ________ for all activities in the path.

A) sack / AS = FS and FE = FL
B) compression / CS = LS and CE = LF
C) better timed / LS = ES and LF = EF
D) crashed / SE = SL and FE = FL
E) slack / ES = LS and EF = LF

Question 42

The _______ for an activity is the time between its earliest and latest start time, or between its earliest and latest finish time.

A) sack time
B) slack time
C) crash time
D) compressed time
E) best time

Question 43

Speeding up the project is referred to as _________.

A) compressing
B) shortening
C) crashing
D) accelerating
E) going green

Question 44

delay in the critical path delays the project. Similarly, to accelerate the project it is necessary to _________ the total time required for the activities in the critical path.

A) improve
B) expand
C) compress
D) increase
E) reduce

Question 45

_________ is the amount of time that an activity can be delayed past its earliest start or earliest finish without delaying the project.

A) Slack
B) Sack time
C) Compressed time
D) Best time
E) Crash time

Question 46

LS - latest start time can be defined as:

A) equal to the earliest start time for the activity plus the time required to complete the activity.
B) equal to the earliest start time for the activity plus the time required to complete the activity.
C) equal to the latest finish time minus the time required to complete the activity.
D) the earliest time at which the activity can start given that its precedent activities must be completed first.

Question 47

There is _________ associated with any feasible activity on the critical path.

A) a quality concern
B) a crash cost
C) a compression expense
D) a time line
E) slack

Question 48

LF - latest finish time can be defined as:

A) equal to the earliest start time for the activity plus the time required to complete the activity.
B) the earliest time at which the activity can start given that its precedent activities must be completed first.
C) equal to the earliest start time for the activity plus the time required to complete the activity.
D) equal to the latest finish time minus the time required to complete the activity.